HomeMy WebLinkAbout1531 - ORDINANCES - 5/22/1996 ORDINANCE NO. 1531
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING THE INTERIM ZONING
REGULATIONS OF ORDINANCE 1521 FOR THE
CONVERSION OF EXISTING HOTEL PROPERTIES TO
CONDOMINIUM-HOTELS AS HEREIN DEFINED AND
' DECLARING THE URGENCY THEREOF
WHEREAS, in February of 1995, the City Council has approved three
conversions of existing hotel properties to condominium ownership,
which will continue functioning primarily as hotel properties (i . e .
condominium-hotels) ; and
WHEREAS, one of the three hotel properties approved for conversions
to condominium-hotels has commenced to operate (the Ocotillo
Lodge) ; and
WHEREAS, the urgency ordinance currently limits condominium-hotel
unit owners to 180 total days of occupancy in any calendar year in
order to maintain the City' s transient occupancy tax (TOT) revenues
from these properties, and in order to discourage full time
residency within the condominium-hotel; and
WHEREAS, the 180-day occupancy restriction has caused difficulties
with regard to financing such that prospective buyers are unable to
secure financing for the purchase of a condominium-hotel unit; and
WHEREAS, the mandatory use of condominium-hotel units by the hotel
operator for hotel usage when not in use by the unit owner has
discouraged some prospective buyers; and
' WHEREAS, the property owners and the City wish to see the
condominium-hotels succeed; and
WHEREAS, the City and property owners have agreed upon a solution
to remove the 180-day occupancy restriction and the mandatory hotel
use of units, while maintaining the assurance of TOT and short term
use of the condominium-hotel units; and
WHEREAS, the City and the property owner, Desert Equitable, have
agreed upon the removal of the above discussed restrictions to be
replaced with a specific payment in lieu of TOT to be remitted to
the City on a monthly basis; and
WHEREAS, the City and the property owner or hotel operator will
negotiate an appropriate fee in lieu of the TOT, based on what
would have been collected in TOT, to be implemented and enforced
through the covenants, conditions and restrictions (CC & R' s) for
each individual condominium-hotel property; and
WHEREAS, the City Council , on December 14 , 1994 , adopted Urgency
Ordinance 1488 establishing interim zoning regulations for
condominium-hotels and a definition of condominium-hotels, and on
January 18 , 1995, extended the provisions of said Urgency Ordinance
for ten months and 15 days and on November 15 , 1995, the Urgency
Ordinance (1521) was extended for one final year; and
' WHEREAS, the City Council now wishes to amend the subject urgency
ordinance by removing portions of and adding to Ordinance 1521
which will expire on November 15, 1996, pursuant to Government Code
Section 65858 .
NOW, THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, DOES ORDAIN AS FOLLOWS :
01531
Page 2 SECTION 1 . Delete a portion of Section 3 of Ordinance 1521 which �c 2
deleted portion reads as follows :
"unit owners are limited to a maximum of 180 total days of
occupancy in any calendar year and all units shall be
available for use by the hotel operator when not occupied by
the owner. "
SECTION 2 . Add a new Section 4 , which defines the TOT in-lieu fee '
which .reads as follows :
"TRANSIENT OCCUPANCY AND COLLECTION OF TAX - IN LIEU :PAYMENT.
When the interim urgency ordinance was originally adopted, it
limited occupancy for unit owners to 180 clays to encourage
transient occupancy and protect the City' s revenue base which
originally derived transient occupancy tax from the; hotel .
This restriction has limited the ability to sell units and
will. create numerous enforcement problems . In exchange for,
this restriction, a provision shall be substituted providing
the obligation of the owner to make a monthly payment in lieu
of transient occupancy tax.. The in-lieu amount shall be
included in the covenants, conditions and restrictions
(CC&R' s) with appropriate adjustment and enforcement
mechanisms . The association shall collect the amount as an
assessment and remit the same to the City in accordance with
the CC&R' s . "
SECTION 3 . Renumber existing Sections 4 , 5, 6, 7, 8 and 9 of
Ordinance 1521 to numbers 5, 6, 7, 8, 9 and 10 respectively.
SECTION 4 . Revise Section 6 of Ordinance 1521 to read as follows :
"TRANSIENT OCCUPANCY TAX APPLICABLE. All condominium-hotel '
projects shall be subject to the provisions of Chapters 3 .24
and 3 . 28 of the Palm Springs Municipal Code regarding TOT.
Individual owners of condominium-hotel unites are not subject
to this provision when occupying actual units owned provided
that the in-lieu payment is made pursuant to the CC & R' s, no
additional TOT may be collected. However, by a determination
made by the City, the City Council may choose to eliminate the
in-lieu fee and irreversibly revert back to the collection of
TOT pursuant to the Municipal Code regarding TOT. "
SECTION 5 . Revise Section 9 of Ordinance 1521 to read as follows :
"EXTENSION OF INTERIM REGULATIONS . This Ordinance is intended
to amend the interim regulations concerning the conversion of
existing hotel properties to condominium-hotels as established
in Ordinance 1521 . This amended Ordinance shall take effect
immediately upon its adoption by at least a four-fifths vote
of the City Council and shall remain in effect until November
15, 1996 . "
SECTION 6 . Add a new Section 11. to Ordinance 152.1 to read as
follows :
"EXPIRATION. Upon the expiration of this urgency ordinance '
regulating condominium-hotels, unless additional regulations
are adopted to permit condominium-hotels, such condominium-
hotels shall no longer be permitted and all existing
condominium-hotel properties with valid conditional use
permits shall be deemed legal non-conforming uses . "
SECTION 7 . Renumber Sections 10, 11 and 12 of Ordinance 1521 to
numbers 11, 12 and 13 respectively.
01531
Page 3
SECTION B . URGENCY. The City Council hereby declares this
Ordinance to be an urgency measure in accordance with Government
Code Section 65858 .
SECTION 9 . SEVERABILITY. It is the intention of the City Council
that the sections, subsections, clauses and phrases of this
Ordinance are severable, and if any portion of this Ordinance is
' for any reason held to be invalid or unconstitutional by a court of
competent jurisdiction, such decision shall not affect the validity
of the remainder of the Ordinance, and the City Council would have
enacted such remainder without the portion found to be invalid or
unconstitutional .
SECTION 10 . PUBLICATION. The City Clerk of the City of Palm
Springs shall certify to the passage and adoption of this Ordinance
and shall cause the same to be posted and published in the manner
required by law.
ADOPTED this 22nd day of May 199G .
AYES : Members Barnes, Oden, Spurgin and Mayor Kleindienst
NOES: None
ABSENT: None
ABSTAIN: Member Hodges
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By J c_ ,rk 2
City Clerk Mayor
REVIEWED AND APPROVED
I HEREBY CERTIFY THAT the foregoing Ordinance 1531 was duly adopted by
the City Council of the City of Palm Springs, California, in a meeting
held on the 22nd day of May, 1996, and that same was duly published in
the DESERT SUN, a newspaper of general circulation on May 28, 1996.
JUDITH SUMICH
City Clerk
IC 3