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HomeMy WebLinkAbout1940 ORDINANCE NO. 1940 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT WITH DTPS B-3, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, RELATED TO CONSTRUCTION OF THE VIRGIN HOTEL LOCATED ON BLOCK B-1 OF THE DOWNTOWN PALM SPRINGS SPECIFIC PLAN AT THE NORTHEAST CORNER OF BELARDO ROAD AND MUSEUM WAY (CASE NO. 5.1204 SP AMEND, CASE NO. 3.3908 MAJ, AND CASE NO. 5.1427 DA). City Attomey's Summary This Ordinance approves a Development Agreement for a term extending through March 31, 2022, unless otherwise terminated or modified as set forth in the Development Agreement, vesting the discretionary entitlements associated with the Virgin Hotel, identified by Case No.'s 5.1204 SP and 3.3908 MAJ. Pursuant to the terms of the Development Agreement, provided the Developer complies with the required performance schedule, the Developer will be entitled to participate in the Hotel Operations Incentive Program in accordance with Chapter 5.26 of the Municipal Code. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS FINDS AND DETERMINES AS FOLLOWS: A. On December 2, 2009, the City Council made findings, adopted a Mitigation Monitoring and Reporting Program, adopted a Statement of Overriding Considerations, and certified the Museum Market Specific Plan Environmental Impact Report ("Specific Plan EIR") and adopted Ordinance 1764, thereby approving the Museum Market Plaza Specific Plan ("Specific Plan") which covers the land use, development standards and design guidelines for the Specific Plan area. B. On January 13, 2016, February 3, 2016, March 2, 2016, and April 6, 2016, the City Council considered amendments to the Specific Plan, including changing the document name to "Downtown Palm Springs Specific Plan", modifications of land uses within the different Blocks, adjustments to building heights and other various amendments and changes. C. Palm Springs Promenade, LLC, a California limited liability company, predecessor in interest to DTPS B-3, LLC, a California limited liability company, ("Applicant") filed an application with the City, pursuant to the Specific Plan and Section 94.04.00 of the Zoning Code, for a Major Architectural Application (Case No. 3.3908-MAJ) to allow the construction of a Virgin brand new hotel consisting of a six-story, 1 12,862-sq uare Ordinance No. 1940 Page 2 foot building with 142-room resort hotel and ground floor commercial-retail on Specific Plan Block B-1 located at the northeast corner of Belardo Road and Museum Way, (APN 513-560-044) ("Project"). D. On April 20, 2016, the Architectural Advisory Committee voted 4-2 to recommend conditional approval of the Project to the Planning Commission. E. On October 28, 2015, November 12, 2015, December 9, 2015, January 13, 2016, and April 20, 2016, a public hearing to consider the Project was held by the Planning Commission in accordance with applicable law. F. On April 20, 2016, the Planning Commission held a public hearing receiving testimony and made a recommendation of approval of the Project to the City Council. G. On April 20, 2016, the City Council carefully reviewed and considered all of the evidence presented in connection with the public hearing to consider the Project, including, but not limited to, the staff report, and all written and oral testimony presented, and adopted Resolution No. 24003 approving the Project. H. Pursuant to Section I.C. of the Downtown Palm Springs Specific Plan, in its adoption of Resolution No. 24003 on April 20, 2016, the City Council found that the Project complies with the Specific Plan's guiding principles as follows: 1. The highest quality development which provides an exciting and safe living, working and shopping experience for all. The Project will enhance the experience of those living, working and shopping within p 9, 9 PP 9 the Specific Plan area. Amenities such as dining, meeting space and lounge areas are proposed. Commercial space provides excitement along street frontages and the pedestrian paseo, Market Street. A high-end hotel brand will operate the property. Consequently, the development will be of high-quality and provide an exciting and safe living, working and shopping experience for all. 2. Connections from the Palm Springs Art Museum to the Resort/Convention Center. In order to achieve connections between the Art Museum and Resort/Convention Center, the Specific Plan sets development standards for new developments. The proposed building incorporates adequate sidewalk areas and building separation space consistent with the Specific Plan requirements. Thus, the Project meets connections requirements envisioned by this finding. Ordinance No. 1940 Page 3 3. The development of retail commercial development which successfully mixes national and regional chain stores with local businesses, focused on the major roadways which bound the site, including North Palm Canyon, Indian Canyon, Tahquitz Canyon and Belardo. The Project will allow commercial retail stores on street frontages and provide overnight accommodations for tourists and visitors to the City. The hotel operator is a national brand that will enhance the development. Other commercial space within the building may be operated by regional chains or a local business. 4. A balance of commercial and residential development which assures the success of the area by increasing the number of homes in the downtown, thereby increasing the customer base of the commercial uses. The proposed commercial use provides overnight, short-term accommodations for tourists and visitors. Such guests are expected to increase customer base of commercial uses downtown. While no residential is proposed on this block, it may be permitted in other locations within the Specific Plan area. Thus, the Project aids in the balance of commercial and residential development and assists in the success of the area. 5. The development of residential units which relate synergistically to the commercial development around them, and encourage a pedestrian lifestyle with little use for the automobile. No residential use is approved as part of the Project. However, the hotel will have overnight guests that relate synergistically to the surrounding commercial development. With the location in the heart of downtown, it is expected that these guests will walk to their destinations and avoid automobile use when unnecessary. 6. The development of additional resort hotels which provide luxury accommodations and increase the visitors to the City's downtown. The proposed resort hotel will provide luxury accommodations and increase the visitors to the City's downtown. With international recognition, the operator is expected to attract greater activity to the area and would be the first location for its brand in the Coachella Valley. 7. View corridors to the mountains at Museum Way and Andreas Road through the site shall be created, while views to the mountains from Tahquitz Canyon Way shall be preserved or enhanced to the greatest extent possible. View corridors of mountains are provided with building separation on Museum Way and Andreas Road. With varying widths along Museum Way, there will be at least 70-feet between buildings to enhance mountain views. Additionally, the 69-foot building is setback from Palm Canyon Drive, which will further preserve views. Ordinance No. 1940 Page 4 8. The Downtown Palm Springs project is pedestrian oriented and all buildings must be sensitively designed to the human scale with active, pedestrian friendly frontages on the ground floor. Structures are to be massed to reduce their visual dominance and preserve view corridors. The built form is to be effectively permeated with public and private open spaces, thereby avoiding the creation of overwhelming and impenetrable mega-blocks. The Project provides adequate pedestrian space and is sensitively designed to the human scale. The pedestrian experience is provided between the building and street curb in an area ranging from 12 to 28-feet in width, which enables sufficient space for circulation, planters and outdoor dining. The proposed building reaches a height of 69-feet, and is massed/scaled appropriately from Palm Canyon Drive to ensure it does not create an overwhelming and impenetrable mega-block. I. Pursuant to Section 94.04.00(D) of the Palm Springs Zoning Code, in its adoption of Resolution No. 24003 on April 20, 2016, the City Council found: The City Council has examined the material submitted with the architectural approval application and has examined specific aspects of the design and determined the Project will (1) provide desirable environment for its occupants; (2) is compatible with the character of adjacent and surrounding developments, and (3) aesthetically it is of good composition, materials, textures and colors. City Council evaluation is based on consideration of the following: 1. Site layout, orientation, location of structures and relationship to one another and to open spaces and topography. Definition of pedestrian and vehicular areas, i.e., sidewalks as distinct from parking lot areas, The Project proposes a new six-story building with pedestrian circulation around all sides. Pedestrian pathways will be separated from vehicular streets with curbs and landscape treatment. Pavers, landscaping and sidewalk furniture will provide an enhanced experience on the site. Sidewalks and other walkways are provided to accommodate the change in topography across the site. Pedestrian access is provided to the underground parking via stairways and elevators. 2. Harmonious relationship with existing and proposed adjoining developments and in the context of the immediate neighborhood / community, avoiding both excessive variety and monotonous repetition, but allowing similarity of style, if warranted,- The proposed structure is an L-shaped configuration surrounding a second floor pool deck. The height is lower than the hotel to the south. The proposed architecture is of a contemporary style consistent with surrounding development, but introduces design elements, colors and materials of a higher quality than the existing development in the vicinity. The selection of design elements differs from those of Ordinance No. 1940 Page 5 the adjacent blocks within the Downtown Palm Springs Specific Plan area, yet they contribute to the overall identity of an up-scale contemporary center. 3. Maximum height, area, setbacks and overall mass, as well as parts of any structure (buildings, walls, screens, towers or signs) and effective concealment of all mechanical equipment; The proposed building's overall height will be 69-feet. Exterior elevations show projections at building edges. Mass is divided with exterior building articulation. A large void above the second floor pool deck reduces overall building bulk. Rooftop mechanical will be concealed from view. 4. Building design, materials and colors to be sympathetic with desert surroundings; 5. Harmony of materials, colors and composition of those elements of a structure, including overhangs, roofs, and substructures which are visible simultaneously, The building architecture is contemporary in style, with a color and material palette that introduces muted color tones, with limited use of accent colors via metal, concrete and glass. Covered walkways for outdoor seating, pedestrian circulation and solar control are integrated into the building design. 6. Consistency of composition and treatment; The building design uses consistent forms and treatments across each elevation. The contemporary elements interact with each other in a consistent and rhythmic manner. 7. Location and type of planting, with regard for desert climate conditions. Preservation of specimen and landmark trees upon a site, with proper irrigation to insure maintenance of all plant materials, A landscape plan has been submitted and includes a mix of common tree and plant materials used in drought tolerant environments, as well as some identified by Table III-5, Landscape Palette, of the Specific Plan. 8. Signs and graphics, as understood in architectural design including materials and colors; Pursuant to Chapter 93.20 of the Palm Springs Municipal Code, the Applicant will be required to submit a sign program for the Project meeting the architectural design standards of the Specific Plan. J. To strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the Legislature of the State of California has enacted California Government Code § 65864 et seq. (the "Development Agreement Statute"), which authorizes City to Ordinance No. 1940 Page 6 enter into an agreement with any person having a legal or equitable interest in real property regarding the development of such property. This Development Agreement has been processed, considered, and approved in accordance with the procedures and requirements as set forth in the Development Agreement Statute., and K. The Applicant has submitted a request for a Development Agreement (Case 5.1427 DA) to establish conditions, terms and obligations for the development of the Project. L. Pursuant to Government Code section 65865(c), the City of Palm Springs previously adopted Ord. 1829 § 3, 2013; Ord. 1294, 1988 [PSMC § 94.08.00], that set forth rules and regulations establishing procedures and requirements for consideration of development agreements. This Development Agreement has been processed, considered, and approved in accordance with the procedures and requirements as set forth in the City's Ordinances and Municipal Codes. M. A notice of a public hearing of the Planning Commission of the City of Palm Springs, California to consider the proposed Development Agreement was given in accordance with applicable law, and on November 15, 2017, the Planning Commission carefully reviewed and considered all of the evidence presented in connection with the hearing on the proposed Development Agreement for the Project, including but not limited to the staff report, and all written and oral testimony presented, and voted 6-0 to recommend approval of the proposed Development Agreement for the Project, with recommendations for amendment, to the City Council. N. A notice of public hearing of the City Council of the City of Palm Springs, California to consider the proposed Development Agreement was given in accordance with applicable law and on November 15, 2017, the City Council held a public hearing in accordance with applicable law, and carefully reviewed and considered all of the evidence presented in connection with the hearing on the proposed Development Agreement for the Project, including but not limited to the staff report, all written and oral testimony presented, and the Planning Commission's recommendations. O. On December 2, 2009, the City Council certified the Final Environmental Impact Report ("FEIR") for the Specific Plan EIR, and adopted CEQA Findings and Statement of Facts, a Statement of Overriding Considerations, and a Mitigation Monitoring Program; and enacted by Ordinance No. 1764 and Resolution No. 22625, the Museum Market Plaza Specific Plan. P. On October 17, 2012, the City Council certified an Addendum to the Specific Plan FEIR (Addendum #1), and approved a Conformity Review for implementation of a revised Downtown Revitalization Plan entitled "Downtown Palm Springs" as conforming to and being consistent with the approved Museum Market Plaza Specific Plan. Ordinance No. 1940 Page 7 Q. On March 2, 2016, and reaffirmed on April 6, 2016, the City Council adopted Resolution No. 23977, certifying an Addendum to the Specific Plan FEIR (Addendum #2), redesignated as the Downtown Palm Springs Specific Plan, finding that Addendum #2 prepared for the Downtown Palm Springs Specific Plan appropriately described the impacts of the Downtown Palm Springs Specific Plan, including construction of the proposed land uses (inclusive of the Virgin Hotel proposed on Block B-1), and also finding that: 1. Changes in the Downtown Palm Springs Specific Plan would not result in a new significant impact not previously analyzed in the FEIR and its addenda, nor result in any new mitigation measures beyond those proposed in the FEIR and its addenda, insofar as the FEIR analyzed a more intense project, and impacts associated with the revisions in the Specific Plan Amendment will either be reduced or be equivalent to those analyzed in the EIR Addendum. 2. Changes in the Downtown Palm Springs Specific Plan, inclusive of the Virgin Hotel proposed on Block B-1, will not result in an increase in the severity of an environmental impact, and no change to the proposed mitigation measures is required, since reductions in project intensity will not result in significant changes in potential impacts, particularly those associated with transportation and traffic. 3. Changes in the Downtown Palm Springs Specific Plan, inclusive of the Virgin Hotel proposed on Block B-1, will not result in a feasible project alternative or mitigation measure not considered in the certified EIR or the EIR Addendum. 4. The FEIR Addendum #2 was prepared in conformance with the requirements of the California Environmental Quality Act. 5. The City Council considered the information contained in the certified FEIR, FEIR Addendum No. 1 and FEIR Addendum No. 2 prior to approving the Downtown Palm Springs Specific Plan, inclusive of the Virgin Hotel proposed on Block B-1. 6. The FEIR Addendum #2 reflected the City Council's independent judgment and analysis. R. The Project is considered a "project" pursuant to the terms of the California Environmental Quality Act ("CEQA"), and the City Council finds that no further environmental documentation beyond the documentation prepared in conjunction with the Specific Plan EIR and subsequently approved Addenda for the Project is required because: (i) there are no substantial changes in the project that will require major revisions to the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (ii) there are no substantial changes with respect to the circumstances under which the project is being undertaken which will require major revisions of the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and (iii) there is no Ordinance No. 1940 Page 8 new information of substantial importance which was not known and could not have been known with the exercise of reasonable diligence at the time the EIR was certified showing that: (a) the project will have one or more significant effects not discussed in the EIR; (b) significant effects previously examined will be substantially more severe than shown in the EIR; (c) mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but those mitigation measures or alternatives have not been adopted; or (d) mitigation measures or alternatives considerably different from those analyzed in the EIR would substantially reduce one or more significant effects on the environment, but the mitigation measures or alternatives have not been adopted. (Public Resources Code section 21166; CEQA Guidelines section 15162.) NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The findings and determinations reflected above are all true and correct, and are incorporated by this reference herein as the cause and foundation for the action taken by and through this Ordinance. SECTION 2. The Specific Plan Final EIR and its Addenda are the controlling environmental documents for the Council's consideration of the Development Agreement for the Project. SECTION 3. The Development Agreement complies with the provisions of the Palm Springs Municipal Code PSMC § 94.08.00, as follows: a. The Development Agreement is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable specific plan. The Development Agreement is consistent with the City of Palm Springs General Plan in that the Development Agreement directly reflects the land use approved through the Downtown Palm Springs Specific Plan Case No. 5.1204-SP and Major Architectural Application Case No. 3.3908-MAJ by the City Council, and the land use is permitted in the General Plan Land Use Element and the Specific Plan. b. The Development Agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located. The Project is consistent with the Specific Plan, because the Specific Plan designation for the site is for various land uses, including Retail Goods, Personal Services, Food and Beverage Services, Services for Groups, Office and Related, Residential, Tourist and Related Services, Public and Semi-public, and compatible accessory uses. The Specific Plan allows for construction of up to two hotels with a maximum of 300 hotel rooms located west of Palm Canyon Drive. The City Council previously approved a Preliminary Planned Development District for a 6-story hotel Ordinance No. 1940 Page 9 on Block C-1 of the Specific Plan, Case No. 5.1290 PD-361), with a total of 155 hotel rooms. The Project was approved with a maximum of 142 hotel rooms, establishing a maximum of 297 hotel rooms located west of Palm Canyon Drive, and is thus consistent with the Specific Plan in terms of density. c. The Development Agreement is in conformity with public convenience, general welfare and good land use practice. The Development Agreement is in conformance with established City goals, objectives, and regulations outlined in the City's General Plan, the Specific Plan, and the City's Zoning Ordinance. d. The Development Agreement will not be detrimental to the health, safety and general welfare. The Development Agreement is not detrimental to the health, safety, and welfare of the community in that all established zoning and development standards continue to be applicable. e. The Development Agreement will not adversely affect the orderly development of property or the preservation of property values. The Development Agreement reflects the approved conditions of approval of the Project which serve to insure the preservation of property values in the vicinity. SECTION 4. The Development Agreement is hereby approved in exchange for the following mutual benefits: a. The Development Agreement will assure adequate public facilities at the time of development. b. The Development Agreement will assure development in accordance with City's land use policies and goals c. The Development Agreement will provide for orderly growth consistent with the City's General Plan, and other public policies. d. The Development Agreement is intended to provide certainty in the development approval process by vesting the permitted uses, densities and intensity of use with respect to the subject property. e. The execution of the Development Agreement furthers the public health, safety and general welfare of the community. SECTION 5. Approval of the Virgin Hotel Development Agreement. The City Council hereby approves the Virgin Hotel Development Agreement, the text.of which is set forth in the document entitled "Development Agreement by and between City of Palm Springs and DTPS B-3, LLC, a California limited liability company, for Downtown Ordinance No. 1940 Page 10 Palm Springs Specific Plan Block B-1, "Virgin Hotel," Case No. 5.1204 SP AMEND, Case No. 3.3908 MAJ, Case No. 5.1427 DA," and authorizes execution thereof by the City Manager. The provisions of this section shall apply to all property described on Exhibit "A". SECTION 6. The Palm Springs Zoning Code § 94.08 is hereby amended by adding Section 94.08.10 to read as follows: "Section 94.08.10 Virgin Hotel Development Agreement A. Virgin Hotel Development Agreement 1. Purpose. The purpose of this section is to establish a development agreement to guide the orderly development and improvement of that portion of the city previously developed as the Desert Fashion Plaza and now identified as Block B-1 of the Downtown Palm Springs Specific Plan, which is located north of Museum Way, south of Andreas Road, east of Belardo Road, and west of Palm Canyon Drive, in the Northeast One-Quarter of Section 15, Township 4 South, Range 4 East, San Bernardino Base and Meridian, in the City of Palm Springs as legally described on Exhibit "A" of the Development Agreement, attached to the Ordinance codified in this section and incorporated herein by reference. The property is designated as part of the Downtown Palm Springs Specific Plan which allows for a mix of approved land uses including Commercial, Retail, ,High Density Residential, Open Space/Public Space and Resort development generally consistent with the Central Business District ("CBD") land use designation in the general plan, as applicable. Hereafter, the property shall also be designated "Development Agreement No. 6" or "DA6" which shall be an overlay designation incorporating the restrictions of the "Virgin Hotel Development Agreement'. The Virgin Hotel Development Agreement replaces within said property the usual development standards otherwise applicable to the property. The Virgin Hotel Development Agreement provides for ultimate development of a new Virgin-brand First Class Hotel consisting of a six-story 112,862 square foot commercial building of up to 69-feet with 142-room resort hotel and ground floor commercial retail, and is consistent with the General Plan and Specific Plan objectives, policies, and programs of the City. 2. Adoption of Virgin Hotel Development Agreement. There is adopted the Virgin Hotel Development Agreement, the text of which is set forth in the document entitled "Development Agreement by and between City of Palm Springs and DTPS B-3, LLC, a California limited liability company, for Downtown Palm Springs Specific Plan Block B-1, "Virgin Hotel," Case No. 5.1204 SP AMEND, Case No. 3.3908 MAJ, Case No. 5.1427 DA," included with the ordinance which codified this section, which agreement is incorporated in this section by reference. The provisions of this section shall apply to all property described on Exhibit "A" attached to the Development Agreement and incorporated herein by reference. 3. Property Development and Other Standards. The property which is subject to the Virgin Hotel Development Agreement shall be maintained in accordance with all policies, requirements, regulations, and provisions set forth in the Virgin Hotel Ordinance No. 1940 Page 11 Development Agreement. The developer's performance of its obligations under the Virgin Hotel Development Agreement shall be subject to annual review as provided therein. SECTION 7. The Official Zoning Map of the City of Palm Springs is hereby amended by reclassifying the property from Case 5.1204-SP AMEND to being subject to the Virgin Hotel Development Agreement "Development Agreement No. 6" or "DA6," all of that real property described in Exhibit "A". SECTION 8. EFFECTIVE DATE. This Ordinance shall be in full force and effect thirty (30) days after passage. SECTION 9. PUBLICATION. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance, and to cause the same or a summary thereof or a display advertisement, duly prepared according to law, to be published in accordance with law. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 29TH DAY OF NOVEMBER, 2 N. ROBERT MOON, MAYOR ATTEST: KATHLEEN D. HART, MMC INTERIM CITY CLERK Ordinance No. 1940 Page 12 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, do hereby certify that Ordinance No. 1940 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council held on November 15, 2017, and adopted at a regular meeting held on November 29, 2017, by the following vote: AYES: Councilmember Mills, Mayor Pro Tern Foat and Mayor Moon Y � Y NOES: Councilmembers Kors and Roberts ABSENT: None ABSTAIN: None RECUSED: None KATHLEEN D. HART, MMC INTERIM CITY CLERK