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HomeMy WebLinkAbout3/21/2001 - STAFF REPORTS (24) DATE: March 21, 2001 TO: City Council FROM: Building Official via Director of Planning and Building REQUEST FOR PAYMENT OVER TIME OR WAIVER OF TUMF FEES RECOMMENDATION: It is recommended that the City Council consider payment over time of TUMF fees for the Palate restaurant located at 621 North Palm Canyon Drive. Staff has prepared a minute order which authorizes the execution of a promissory note to be paid monthly over two years. BACKGROUND: Traffic Uniform Mitigation Fees (TUMF fees) were first instated in 1989 as a result of a ballot initiative approved by the voters. Funds derived from the TUMF fees and a ''/2 cent increase in sales tax, which was also approved in the initiative, were to be used to fund regional transportation improvements. TUMF fees are assessed to businesses via building permits based on the calculated number of motor vehicle trips (traffic impact) generated by the businesses. Where a new business replaces an existing business, the TUMF fee reflects only the increase in vehicle trips generated by the new use, if any. The Palate restaurant at 621 North Palm Canyon Drive will replace the former "Crafters Cottage"business at that address. The Crafters Cottage was originally approved as a take- out food use with associated craft and art display areas and very limited outdoor seating. TUMF fees were assessed based on this use at the time the building permit was issued. Over subsequent years, the use gradually changed to a full restaurant with on site seating. After a period of vacancy, the space was leased to the proprietors of the proposed Palate restaurant. The new business wishes to continue the expanded use and to convert two former display areas to dining rooms. The fact that additional TUMF fees would be due was discussed with the new proprietors early on in the process. The present proprietors request that the TUMF fees be waived or that they be allowed to execute a promissory note, with payment over time, to satisfy the fee requirement. TUMF fees are calculated by the City and forwarded to CVAG. If the promissory note is not paid, the City would assume liability for the fee. In the past, when CVAG conducted its yearly audit, any shortfalls, if not paid by the City directly, were deducted from the City Measure A (gas tax) funds. The City Attorney has reviewed this request and does not feel that there is a legal authority within the municipal code for the City Council to waive fees. A code amendment would be necessary to grant the fee waiver request. is 0a09 If so directed, staff will prepare a promissory note with monthly payments over a two year period, interest and other details being subject to City Manager's approval. The form of the agreement will be approved by the City Attorney. Building O (a birecto Planning and Building City Manager G Attachments: 1. Letter Requesting Fee Waiver or Promissory Note 2. Minute Order Approving Execution of Promissory Note 2 ,a# Z A(ALff0M WMAl PA2iNENR- TOM KM t MIKE MV(5 - PROPRIETORS 621 NOW PALrn(ANYON OkJJVE PALMSPH"S,(A92262 NOISIA10 ONINNVId (760) 318-8150 Friday, March 9, 2001 100Z Z l UVW City Council—Palm Springs 3200 East Tahquitz Canyon Way a�n13��� Palm Springs, CA 92262 RE: Former Crafters Cottage TUMF ($7,840) We respectfully request that City Council consider waiving or allowing a promissory note for the Transportation Uniform Mitigation Fee applied to 621 North Palm Canyon. The property had been abandoned for three-and-a-half years and is currently condemned by the Buildings Department for excessive code violations. We have spent the last six months fixing these problems. Palate will be a moderately-priced, American fare restaurant with lounge and garden. We plan to be open year- round from 11 to 11 daily. Monthly themes will change the art and decor. Though no room is dedicated to retail, all art pieces will be for sale. The property had been advertised and represented as a "retail/restaurant; our lease reflects the same. Our understanding is that the"Crafters Cottage"was a full-service restaurant with retail; our project is also a full-service restaurant with retail. We, therefore, feel there is no "change of use" which initiates this fee. The former tenant changed the use from school to restaurant/retail, but operated a full- service restaurant with only "Catering Kitchen" code compliance. She somehow was able to evade both the TUMF on this property and a variety of code issues. Now Palate is being held accountable. The code problems were disclosed to us; the TUMF was not. After waiting for two-and-a-half months for our Construction Permit to be approved, we were stunned when informed that our permit could be released for a fee of$8,738.37, $7,839.87 of which is TUMF. We did not expect this, therefore did not budget for it. Additionally we did not anticipate the extreme length of time it would take for approval of our plans; in actuality we were told we would get "priority" due to the visibility of the property. For whatever reason, that priority did not happen. Our abated rent has expired with no relief from the landlord. We are at risk of never opening unless our permit can be released immediately. We do not dispute the need for TUMF and are willing to pay the fee over time. Our preference, of course, is a waiver. This property is located at the gateway to the city and has extremely high visibility. We respectfixlly request your assistance in allowing our business to continue construction and to open its doors. Sincerely,C �f Mike Davis * Tom Reese Cc: David Ready—City Manager Doug Evans—Planning i Hendler-Stoddard - landlords 2243 MINUTE ORDER NO. APPROVING THE EXECUTION OF A PROMISSORY NOTE IN THE AMOUNT OF$7839.87 WITH MONTHLY PAYMENTS OVER A TWO YEAR PERIOD WITH THE PROPRIETORS OF THE PALATE RESTAURANT, LOCATED AT 621 NORTH PALM CANYON DRIVE. I HEREBY CERTIFY that this Minute Order, approving the execution of a promissory note with the proprietors of the Palate restaurant located at 621 North Palm Canyon Drive was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 21"day of March, 2001. PATRICIA SANDERS City Clerk a��s