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HomeMy WebLinkAbout18881 - RESOLUTIONS - 7/31/1996 Amended by R19451 RESOLUTION NO. 18881 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AN AMENDMENT TO AN EXISTING CONDITIONAL USE PERMIT #5 . 0680 FOR THE OCOTILLO LODGE CONDOMINIUM-HOTEL, TO REMOVE THE 180-DAY CONDOMINIUM-HOTEL UNIT ' OWNER OCCUPANCY RESTRICTION AND THE MANDATORY USE OF CONDOMINIUM-HOTEL UNITS BY THE HOTEL OPERATOR AND TO ADD A REQUIRED TRANSIENT OCCUPANCY TAX IN-LIEU FEE, LOCATED AT 1111 EAST PALM CANYON DRIVE, R-2/R-3 AND RESORT OVERLAY ZONES, SECTION 26 . WHEREAS, in January and February of 1995, the Planning Commission and City Council, respectively, approved a conditional use permit application and a tentative tract map application submitted by Desert Equitable for the purposes of converting an existing 130 unit hotel to condominium ownership and to change the use to a 124 unit condominium-hotel; and WHEREAS, the Ocotillo Lodge has commenced to operate as a condominium-hotel; and WHEREAS, Desert Equitable has sold approximately 50 condominium- hotel units to date; 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 was extended for one final year; and WHEREAS, the urgency ordinance originally limited condominium-hotel unit owners to 180 total days of occupancy in any calendar year and required all condominium-hotel units to be available for hotel usage when not in use by the condominium-hotel unit owner 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 has unnecessarily delayed unit sales; 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, on May 22, 1996, the City Council amended the condominium- hotel urgency ordinance by removing the above discussed occupancy restrictions and adding the requirement for a specific payment in lieu of TOT to be remitted to the City on a monthly basis; and WHEREAS, Desert Equitable is requesting an amendment to the conditional use permit for the Ocotillo Lodge condominium-hotel property so that the conditional use permit will be consistent with I the urgency ordinance such that the condition of approval requiring to a 180-day occupancy restriction and the mandatory hotel usage of units be removed and replaced with a fee in lieu of TOT; and R18881 Page 2 WHEREAS, a monthly fee of $4000 . 00 in lieu of the TOT, which is �I based on what would have been collected in TOT, shall be implemented and enforced through the covenants, conditions and restrictions (CC&R' s) for the Ocotillo Lodge and said fee, shall be remitted to the City on a monthly basis; and WHEREAS, said fee shall be increased annually based on increases in the consumer price index for a7.1 urban consumers; and ' WHEREAS, the owners association shall be responsible for collecting the fee as an assessment against owners and remitting the same monthly to the City with City having enforcement rights pursuant to a recorded declaration of covenants, conditions and restrictions; and WHEREAS, said fee in lieu of TOT will help maintain the City' s interests with regard to continued incoming funds similar to that of TOT and ensuring the property continues to function primarily as a hotel as opposed to a place of primary residence; WHEREAS, on July 10, 1996, the Planning Commission held a public hearing and voted to approve (5-0 ; 1 abstention; 1 absent) the amendment to conditional use permit 5 . 0680 ; and WHEREAS, notice of a public hearing of the City Council of the City of Palm Springs to consider Desert Equitable' s request for an amendment to conditional use permit 5 . 0680 to remove unit owner occupancy restrictions and add to a required monthly fee in lieu of TOT was given in accordance with applicable law; and WHEREAS, the City Council has carefully reviewed and considered all of the evidence presented in connection with the hearing on the project, including but not limited to the staff report . ' THE CITY COUNCIL HEREBY FINDS AS FOLLOWS : Section 1 : Pursuant, to CEQA, the City Council finds as follows : a. The project is categorically exempt from the requirements of CEQA pursuant to Section 15301, Existing Facilities . b. Pursuant to Fish and Game Code Section 711 .4, this project has a de mi_nimis impact on fish and wildlife . Section 2 : Pursuant to Section 9402 . 00 of the Zoning Ordinance the City Council finds that : a. That the use applied for at the location set forth in the application is properly one for which a conditional use permit is authorized by the City' s Zoning Ordinance. Pursuant to an urgency ordinance approved by the City of Palm Springs City Council on December 14, 1994 , and extended on January 18 and November 15 of 1995 and subsequently amended on May 22, 1996, a condominium-hotel is permitted in the R-2 and R-3 zones pursuant to a conditional use permit approved by the ' City of Palm Springs Planning Commission and City Council . The proposed revision to the approved conditions of the conditional use permit would be consistent with the City' s Zoning Ordinance and approved urgency ordinance. b. That the said use is necessary or desirable for the development of the community, is in harmony with the: various elements or objectives of the General Plan, and is not detrimental to existing uses or to future uses specifically R18881 Page 3 permitted in the zone in which the proposed use is to be located. The existing condominium-hotel is a desirable and appropriate use in the subject location and is in harmony with the various elements or objectives of the General Plan such that the project entails condominium ownership yet the property ' functions primarily as a hotel as this property has functioned in the past; hotel use is encouraged within the General Plan and Zoning Ordinance in the area in which the property is located. The existing property, as a result of the existing conditional use permit has been revived and upgraded which is creating a positive economic and aesthetic impact on the community. The revision to the conditions of the conditional use permit, i .e . the removal of occupancy restrictions and the addition of a required payment in lieu of TOT will not negatively impact any elements of the General Plan and will help facilitate the project' s economic success and will not cause the property to be detrimental to existing or future uses . C . That the site for the intended use is adequate in size and shape to accommodate said use, including yards, setbacks, walls or fences, landscaping and other features required in order to adjust said use to those existing or permitted future uses of land in the neighborhood. The existing property is nonconforming with current development standards and the proposed condominium-hotel requires an extension of said nonconforming standards, including setbacks, required landscape percentage and parking lot screening. However, the property has been improved to the economic extent feasible in order to bring the property into compliance with the Zoning Ordinance as much as possible . The improvements, which have already been completed, include, but are not limited to, exterior and interior remodeling, new landscaping, new fences, new entryway paving, new awnings, new roof mounted mechanical screening, porte cochere enhancement, the redesign of several on-site driveways and the installation of a concrete sidewalk; these improvements have significantly enhanced the previously vacant and inoperable property as well as the surrounding neighborhood. In order to comply completely with the Zoning Ordinance, this project would not be feasible since portions of the buildings would need to be demolished in order to accommodate the current setbacks . After review of the site plan, it is determined that it would continue to be infeasible for the property to come into complete compliance with the landscaping and parking lot screening requirements without providing additional area for on-site parking. This would also require the removal of buildings in order to create this area which would be economically infeasible . The proposed revision to the existing conditions of the approved conditional use permit will allow this condominium-hotel property to continue functioning successfully and will allow for continued maintenance of all the completed property upgrades which may not otherwise occur without this conditional use permit amendment . d. That the site for the proposed use relates ' to streets and highways properly designed and improved to carry the type and quantity of traffic to be generated by the proposed use . The existing condominium-hotel, technically functions the same as the previous hotel use, therefore, the condominium-hotel, nor the subject amendment to the conditional use permit, shall not cause a change in usage of the existing streets and highways which could not be accommodated. In addition, the project is R18881 Page 4 conditioned to widen a portion of East Palm Canyon Drive when deemed necessary by the Director of Public: Works. e. That the conditions to be imposed and shown on the: approved site plan or in Exhibit A of this resolution are deemed necessary to protect the public health, safety and general welfare and may include minor modifications of the zone' s property development standards . The proposed revised , conditions of approval of this conditional use permit will assist in the success of the existing condominium-hotel property while maintaining the City' s interests with regard to TOT and ensuring the property continues to function primarily as a hotel . f . A nexus and rough proportionality have been established for the requirement of the dedication of the additional right-of- way to the City and the off-site improvements as related to the conditional use permit . The right-of-way dedication and the off-site improvements, which are required by the Zoning Ordinance, are related to the project since the occupants of the proposed condominium-hotel must use East Palm Canyon Drive and Arqui.11a Road to access the subject property. However, the condominium-hotel unit owners will benefit from any improvements made to East Palm Canyon Drive and A.rquilla Road such as the future widening and the construction of sidewalks/bike paths . The required dedication of right-ef-way has been completed and the off-site improvements, which continue to be deferred by covenant, will provide safety benefits to the property owners and will aesthetically enhance the neighborhood. The revision to the conditions of this conditional use permit do not include any additional off-site improvements . ' NOW, THEREFORE, BE IT RESOLVED that, based upon the foregoing, the City Council hereby approves the amendment to Conditional Use Permit 5 . 0680 subject to those revised conditions set forth in the attached Exhibit A as on file :in the office of the City Clerk. ADOPTED this 31st day of '.luly 1996 . AYES : Members Barnes, Oden and Spurgin NOES : None ABSENT: None ABSTAIN: Member Hodges and Mayor Kleindienst —� ATTEST: / CITY OF PALM SPRINGS CA�IFORNIA BY C-rty Clerk ity Man er REVIEWED & APPROVED AlIff