HomeMy WebLinkAbout1997 - MINUTES - 8/12/1997 CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
AUGUST 12, 1997
An Adjourned Regular Meeting of the City Council of the City of Palm Springs, California, was
called to order by Mayor Kleindienst, in the Council Chamber, 3200 Taliquitz Canyon Way, on
Wednesday, August t2, 1997, at 4:00 p.m., at which time, the City Attorney announced items to be
discussed in Closed Session, and at 5:00 p.m., the meeting was convened in open session.
ROLL CALL: Present: Councilmembers Barnes, Oden, and Spurghn
Absent: Couucilmember Hodges and Mayor Kle➢ndieiist (Note: Mayor was
present during Closed Session).
The meeting was opened with the Salute to the Flag.
REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in
accordance with Council procedures on August 9, 1997.
REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION (All
Entities) - See items on Page 2 of agenda this date.
a) SANDCASTLE PNA (SOFONIO) - A3817: City Attorney reported that during the Closed
Session by a 4-0-1 (Hodges absent) vote, the Council approved the filial language of the
Settlement Agreement concerning the abatement of nuisance/dangerous building at 2330 N.
Palm Canyon Drive, initially approved on June 25, 1997.
COUNCIL COMMENTS/ANNOUNCEMENTS: None
PUBLIC COMMENTS:
' a) The following persons spoke concerning Item 1:
Richard Rowe, resident, submitted a letter, and urged that a full environmental
assessment be made before any project is undertaken, before any demolition
occurs, and before even a larger project is considered.
Brad Dunning Historic Site Board member stated that the Board reaffirms its action
and the commitment to that action; that the Board is comprised of volunteers who
donate their time out of care for Palm Springs' present, past and future; that Palm (076-
Springs is different from other Valley cities, and there must be an awareness of its 001)
appearance because just its name is an attraction; that many cities in the United
States have strict preservation laws; that lie questions whether it is a property owner
right any more so than any other action; and that any change to the building under
a Class 1 would require Council approval
Bob Wynet, business owner in Palm Springs since 1974, 4550 E. Mesquite, stated
he was retained by a citizens group to help develop alternative uses for the
building; that he believes there are other purposes for it, and it could be very
beautiful; that he believed it can be saved, and still meet the developer's needs, if
they can reason together.
Dick Sroda, resident, stated that other properties have been designated without the
property owners consent, and the issue is a question of fairness; and he questioned
why die matter was not referred to the HSPB for reconsideration as happens in
cases in which the Council disagrees with the Planning Cormnission.
John Connell, resident, asked that the Council stay with the Class I designation, or
at least make it a Class 2; that the citizens task force has done everything that it
could do, including meeting during the summer, paid for a historical site expert to
explore legal aspects, and an attorney who handles such cases, who has advised that
the Council should be very careful, and that lie did not believe the City Attorney is
correct in the information he has given; and that Mr. Wynet was hired to help find
answers to the many questions, and the task force was willing to continue in its
efforts; that lie fell obstructions were placed in the way of the task force, and that
Council Minutes
8-12-97, Page 2
he was not asked to work toward a "no classification;" that Frey and other notable
architect's works have sold recently within a matter of days of going on the market;
that he felt the Brown Act was violated when two of the three members eligible to
vote on this matter met with the developer, and he felt it was a conflict that Mr.
Cioffi was advising on the use of the roof, when he had just spoke in opposition to
the action; that there is pending litigation; that he recommended the Council
adjourn to the closed session for advice from the City Attorney; and that he felt
Mr. Frey had an apology coming from the developer.
Scott Kennedy, resident, commented concerning the number of Frey structures in
Palm Springs, the number altered, and the number demolished; that lie did not
consider it acceptable to move the roof feature, nor believe that it has been proven
that it can be moved; that the reason for designating the site seems to be have been
forgotten; that he questioned why so much energy was spent to appease one person;
that the biggest need for the building is paint and landscaping; and that funds
should be raised to satisfy Mr. Annenberg, and let the developer know his opinion
is only just his opinion.
Les Gathers, resident, stated that six months ago, when fie lease option on the site
was obtained, he met with the I-ISPB, because of the fact that the building was a
Frey structure; that a compromise was sought, in that the developer would share in (0767
the movie of the roof; that in May, Mr. Bra 001 )
g y, Bragg stated lie would do nothing to the
building for one year; that four members of the RSPB were supportive; that the
negative articles began to appear, and the Board's support was lost, and the rumor
became that the building was going to be demolished; that he telephoned Mr. Oden
and Mr. Barnes two weeks prior to the first (nearing, but his calls were not
returned; and that the issue is between Mr. Annenberg and the City and Mr.
Annenberg's property rights, and not an issue of Mr. Bragg.
Selena Tracer, resident, stated this issue is not about the desires of one person, but ,
what the conununity wants and needs; that the cottnnunity needs a grand
development at the north entry; that she has spoken with business people
downtown, who are appalled the Council would be a hindrance to the Bragg
development; and that she felt the citizens consider the site an eyesore.
Janice Lyle, member of the Tramway Taskforce (an ad hoc citizen group) read in
full a letter dated August 8, a copy of which is on file with the City Clerk,
suggesting three courses of action, i.e., reclassifying the site to a Class 2, if legally
permissible; obtaining written guarantee that no action will be taken to the
detriment of the building for one year; and returning the subject to the HSPB for
appointment of a task force to explore options and make recommendation within 6-
12 months.
Dorothy Head, resident, apologized to Councilntembers Oden and Barnes, on
behalf of the cormnunity, and stated that no city funds should be spent to preserve
the building; and that it should be freed of the designation, and given back to Mr.
Annenberg, and then see if Mr. Bragg has a plan.
Don Wolf, resident, stated he sent a letter to Councitmember Spurgin, offering to
donate funds, and to help raise the money.
COUNCIL COMMENTS/ANNOUNCEMENTS/INTERAGENCY REPORTS: None '
LEGISLATIVE ACTION:
011
Council Minutes
8-12-97, Page 3
1. HSPB 33 -TRAMWAY GAS STATION BUILDING
On July 30, 1997, the Council considered rescinding Resolution 19047, and taking
alternative action, and requested additional information from the City Attorney., concerning
die Albert Frey Building (Tramway Gas Station) at 2901 N. Palm Canyon Drive.
' City Manager slated that if application were made for a State or Federal Historic Site
designation, it would require owner approval; that at the last meeting, the suggestion was
made to relocate the architectural feature (the roof, referred to here as either "the building"
or "the roof") to the rail station; that the Airport Master Plan includes a dispatch and (076-
slaging facility for taxis, buses, and bicycle parking, and the roof could be incorporated into 001)
that facility; that he met with Mr. Amnenberg and Mr. Bragg, and Mr. Annenberg will
establish the value of the structure, in order to establish how much is needed to move that
portion of the building to the Airport; that there would be no City General Funds to move
the structure, but in terms of the construction, those funds which otherwise would be spent
for that portion could be used; and that he felt positive that an attractive amount can be
achieved.
City Attorney reviewed his written opinion, dated August 2, 1997, a copy of which is on
file with the City Clerk, noting the following:
a) No envirommenlal review was done in making the original determination by the
HSPB, nor did the Council make any determination as part of making its decision;
that such has been die practice in making these type of historic designations; that
there is case law that environmental review is not required when a clearly beneficial
action is being taken; and that argumeut could be made in that regard.
b) The distinction between classifications 1, 2 or 3 relates to the purity of the historic
piece, No. 1 being the that there has been no alteration in any major way; No. 2,
there may have been a change to the piece, but it derives the same protection as a
Class 1; and No. 3 means the piece is older in origin than 1945; and that any
change desired in any of the three, requires a procedure that must be followed.
The Council may wish to further review this aspect of the Ordinance.
c) There have been 35 structures designated, not all with the property owners
approval, e.g., Ingleside Intl and LeVallurius. The subject site is unique in terms
of the interest it has generated; that the property owner has made his protest
known, which came out of the fact that the property has not been successful as a
gas station; that he has an economic concern, and there is the aspect for another
project in the area, but no plans or applications have been filed; and that the City
Council has been clear in its encouragement of economic development.
d) He has not found any case with the saune facts as this matter, nor could he find any
which were close on point; that the Odyssey Project would require an
environmental review, and if demolition of the gas station structure were a part of
that application, removal of the Class I designation would have to be analyzed as a
part of that; that lie could find no case in which there was no other project, and
there was only the designation; that the developer could Find an attorney mid make
argument and claim that the designation should be set aside; that there is a 180 day
' limitation as to pursuing such a claim; that there is a level of liability that the
property owner might pursue a claim; and that he felt there were some defenses on
the City's behalf, but it could be sticky.
e) There is case law on the possibility of removal of the designation, in which a full
environmental review was required; that it is best to error on the side of review,
when in doubt, or matters of great public controversy. The current designation has
been in place for only one month, and he could not find a case dealing with the
same Facts, but felt that the short time period undercuts the argument for a review
to some degree, in order to get back to a level field; and that parties on the
Council Minutes
8-12-97, Page 4
opposing side could probably find an attorney who could find argument with that
position.
f) Council Option 1: Do nothing. This does not mean that the building cannot be
demolished or removed from the site, if it creates an undue fmancial hardship, the
Council can approve the relocation or demolition. Property owner has rights and '
remedies due to economic hardship, but must obtain Council approval. There is
some legal liability to die property owner.
g) Council Option 2: Remove designation, and start over. Would allow a full and
complete ability for review; if project does not come forward, property owner
could come forward and only request demolition permit; such pernrrit is not
discretionary, and building could be demolished without any further influence by
the City.
h) Council Option 3: Change HSPB Designation from No. 1 to No. 2. There is not a
big difference between the two; approval still required to modify or make changes.
The option probably will not address the property owner's concern.
i) Council Option 4: 30-day stay on demolition, after initiating proceedings. The
Code provides that at anytime after proceedings are initiated, the Board may impose (076-
a stay order on demolition, and the City could not be forced to issue the demolition 001)
permit, even though the designation may not yet have been established. The
property owner has indicated there is no intent to tear down the building
immediately; Mr. Bragg's letter is not legally binding, and demolition could occur.
The option would result in removing the Class I designation, and proceeding to
initiate the process to review the property and whether it should be designated; and
as long as that is in process, there is the ability to issue the stay order on the
demolition.
j) Relocation of the building will require an environmental review, not necessarily a
full EIR. Some aspects of the Code could be improved, and some procedures made
clearer. The Code, in essence, protects property owner Frights by the "stop valves"
which are in place; that there is a process in the event of economic hardship. There
are very few programs in which the City is involved which do not infringe on
property owner rights to some degree, e.g., public arts, rights-of-way dedication;
and he did not believe the Code was Constitutionally defective.
In answer to questions by Council, City Attorney stated that the: application for economic
hardship would go to the HSP Board, and its decision could be appealed to the City
Council; that the Board may issue a stay of demolition for up to 120 days, with an
additional 60-day extension, but could do so only one time; that the Council could still
require the developer's letter of intent, even with the proceedings under consideration; that
the cost of an environmental assessment would be paid for as parr: of a project, and the City
normally contracts for the work; that a stay order would be issued upon a threat of
demolition, and although it could be ordered at this time, the developer has said he world
not do any demolition for one year, and the stay order would only be good for up to 180
days, including the extension period, which might not be enough time in which to resolve
the issues; that the Director of Planing & Building assured him that the City staff would
not issue the demolition permit. '
City Manager stated that an environmental review would be required to relocate the roof to
the Airport, as would that be true for the staging facility; that the cost for dismantling aid
relocating the roof would be a separate cost apart from the Staging facility, however, the
Airport will be building a structure, and it will need a roof, and the cost of the roof would
be born by the Airport; and there would still need to be fundraising to cover engineering
and removal costs; that regarding the ad hoc committee, if the Council concludes that
relocation of the roof to the Airport is acceptable, he will need everyone involved, and the
Council Minutes
8-12-97, Page 5
committee is comprised of qualified people to help in that regard; and that if environmental
review is needed for the Airport, it would not be paid for by the General Pund ,
In response to question by Council, Mr. Bragg submitted the letter he first gave to
Councilmember Spurgin on July 30, which is on file with the City Clerk.
' In answer to question by Council, Director of Transportation stated that the staging facility
is included in Phase I of the Master Plan; that the Airport Commission will complete it
review in September, after which, it will be sent to the Planning Commission for review,
and it will proceed from there.
In answer to question by Council, City Attorney stated that the City could be exposed to
litigation in any event; and it was difficult to find a clear win for everyone.
Mayor pro tem Spurgin stated that she felt the problem stermned from the process, and not (076-
the building; that not everyone will be happy, rather a compromised has been suggested, 001)
one which will keep the City out of a legal issue.
Councilmember Barnes stated that he fell everyone could be happy, the task force can
continue with the HSPB as a member and more involvement; that the City Attorney has
offered with confidence the "under consideration" option with the ability to have a
demolition stay order issued, coupled with the letter from Mr. Bragg, albeit not legally
binding, which Ire did not believe would be reneged upon by Mr. Bragg, nor in his interest
to do so in terms of public support of his future project; that there is no true difference in
terms of protection under either Class 1 or Class 2; that his effort was to stop the demolition
or threat of it, until all parties of interest could solve the problem; that he had apprehension
that staff be steadfast in not issuing a demolition permit, after a long lapse of time, and
doubted that if a resolution is not developed in six months, that one will be developed at all.
In answer to question by Council, City Manager stated that if approved, the value would be
determined with Mr. Annenberg, and fundraising could begin in September, and that with
the Airport planning process, it could be possibly 6 months before being in a position to
move the roof portion to the Airport. He also stated that a series of things could have
happened to have avoided this situation, e.g., the City Attorney review of the Ordinance,
the CEQA process, and a variety of processes in place, and he assured the Council that it
would never happen again.
Mayor pro tern Spurgin stated that a staff opinion was asked for on June 18, and die
response was that staff recormnended the designation, but air opinion was never gotten from
the City Attorney, and if that bad happened, and the Council heard what was presented this
date, the outcome may have been different.
Councilmember Oden stated that the proposed use of the Spanish hn has caused a similar
scenario to develop; that it indicates the people in the community are active and get
involved and care about the cohnnunity; that comments have been made that the Council is
uncaring, but three major projects were approved downtowrh at the same time, yet it has
been labeled business unfriendly because of this one decision; that this is an opportunity to
express healing for the corn munity; that sometimes being right is no longer important,
rather what is best for the community to move forward must be considered; that the fourth
option is a win-win, and the building will be preserved and there will be time in which to
make plans for the future, and it allows the developer to move forward.
Mayor pro tern Spurgin read a note from the Director of Planning& Building that the site is
locked out of the permit system, and can only be accessed by him, and the Building
Official.
Councilmember Barnes appreciated Councilmember Oden's comments, and added that he
believed the issue was blown out of proportion, for which some individuals are responsible;
that the HSPB members did their job, and will continue to do so; that the option provides
Council Minutes
8-12-97, Page 6
the security to improve the property, and no one wants a historic site which is a shambles;
that the No. 1 designation refers to a pristine site, an honor, or level of distinction; that the
architectural feature will be placed where everyone can appreciate it, and it will qualify as a
Class 2 designation; that his intent always was to buy time in which to save the structure in
a way that makes sense for everyone; that he maintained lie did not make a mistake, rather a
decision based on the information he received from all sources; and that he did not have a
personal preference regarding the structure.
Mayor pro tern Spurgin stated that while she opposed the original ,diction, the Council agrees
most of the time, but if everyone agreed, a full Council would not be needed; that the
Council relationship must be able to allow agreement to disagree, and still move ahead and
be polite and friendly; that she supports the fourth option, even though it is not exactly what
she hoped for, but represented a compromise, and she would not put the City in legal
jeopardy.
City Attorney read title of the Resolution, noted minor language changes, and specific new
"further resolved" clause, as follows:
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA,
RESCINDING RESOLUTION NO. 19047, DESIGNATING THE TRAMWAY
GAS STATION, 2901 NO. PALM CANYON DR. AT TRAM WAY, AS A
CLASS 1 HISTORIC SITE, DETERMINING THAT PROCEEDINGS HAVE
BEEN INITIATED TO CONSIDER A DESIGNATION OF THE STATION
UNDER CHAPTER 8.05 OF THE MUNICIPAL CODE; AND DIRECTING
THE CITY MANAGER TO DETERMINE ANY ACCEPTABLE
ALTERNATIVES.
"BE IT FURTHER RESOLVED that the City Council of the City of Palm Springs '
deems that proceedings have been initiated for designation of an historic site acid
directs that these proceedings be continued by the Historic. Site Preservation Board
to consider alternatives, and that the IISPB be authorized to issue an order staying
any threatened demolition or aheralion under Section 8.05.170 of the Palm Springs
Municipal Code, if necessary, while such proceedings are pending; and..."
Resolution 19112, rescinding R19047, as reviewed by the City Attorney, was presented;
after which, it was moved by Oden, seconded by Barnes, and unanimously carried, Hodges
and Kleindienst absent, that R19112 be adopted.
ADJOURNMENT
There being no further business at 8:15 p.m., the Mayor pro tern Spurgin declared the
meeting adjourned.
—\" JUDITH SUMICH
City Clerk
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