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HomeMy WebLinkAbout23728 RESOLUTION NO. 23728 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A HOTEL OPERATIONS INCENTIVE COVENANT WITH PALM SPRINGS PROMENADE, LLC FOR THE CONSTRUCTION OF A 135 ROOM MARRIOTT AC HOTEL AT THE SOUTHWEST CORNER OF NEW MAIN STREET AND BELARDO ROAD. The City Council of the City of Palm Springs, California, finds: A. The City, as lead agency, prepared the Museum Market Plaza Specific Plan EIR (the "Specific Plan EIR"). The Specific Plan EIR analyzed the potential environmental impacts of the proposed Museum Market Plaza Specific Plan pursuant to the California Environmental Quality Act, Public Resources Code Sections 21000 et seq. and California Code of Regulations, Title 14, Sections 15000 et seq. ("CEQA"). The Specific Plan EIR concluded that the Museum Market Specific Plan would have significant and unavoidable effects on the environment. B. On December 9, 2009, the City Council for the City of Palm Springs made findings, adopted a Mitigation Monitoring and Reporting Program, adopted a Statement of Overriding Considerations, and certified the Specific Plan EIR pursuant to the provisions of CEQA. On that date, the City Council also adopted the Museum Market Plaza Specific Plan, conditioned on compliance with the mitigation measures in the Specific Plan EIR/ Mitigation Monitoring and Reporting Program. The redevelopment of the Desert Fashion Plaza site was specifically contemplated by the Museum Market Specific Plan and analyzed in the Specific Plan EIR. C. On September 29, 2011, the City and Palm Springs Promenade, LLC, entered into a Project Financing Agreement applicable to the financing, development, redevelopment, creation and refurbishment of public and private improvements in downtown Palm Springs at the Desert Fashion Plaza site within the Specific Plan area which included, among other things, a site plan and project description depicting the proposed improvements. D. The City and Palm Springs Promenade, LLC, subsequently developed a Second Amendment to the Project Financing Agreement which included a revised site plan and project description (the "Second Amendment'). Resolution No. 23728 Page 2 E. Pursuant to the Second Amendment, the redevelopment of the Desert Fashion Plaza site will include, among other things: a first class hotel of approximately 170 rooms at the northeast corner of Belardo Road and Tahquitz Canyon Way in lieu of a commercial office building; that such hotel if maintained as a first class hotel would qualify with the provisions of the City's Hotel Incentive Ordinance (PSMC Chapter 5.26); an "Event Area" west of Belardo in lieu of a movie theater; and reconstruction of two lots east of North Museum Drive and the Palm Springs Art Museum, to include new landscaping and related hardscape and other improvements (collectively the "Modified Project"). F. The City, as lead agency, determined that the Modified Project was within the scope of the Specific Plan EIR and would not result in any new significant effects, a substantial increase in the severity of previously identified significant effects, or require any new mitigation measures or alternatives requiring major revisions in the Specific Plan EIR. The City, therefore, prepared an Addendum to the Specific Plan EIR (the "Addendum"). (Public Resources Code § 21166; CEQA Guidelines §§ 15162, 15164.). G. On October 17, 2012, the City Council for the City of Palm Springs approved the Addendum, found that the Modified Project conformed to the Museum Market Specific Plan, and approved the Second Amendment. H. On December 19, 2012, the City Council approved a Third Amendment to the Project Financing Agreement which included further minor revisions to the Modified Project including, among other things: a minor reconfiguration of Main Street such that Main Street is no longer curved between North Museum Drive and Belardo Road, but rather is straight between North Museum Drive and Belardo Road, an increase in the total number of hotel rooms from 170 rooms to 185 rooms (some of which will now be located in Block C-1), the further set back of the second story of the Block B building, and certain changes in uses listed on the Site Plan (the "Third Amendment"). I. On December 19, 2012, the City Council also approved the following entitlements for the project: Tentative Tract Map No. 36446 to subdivide 13.6 acres into fourteen lots for development and four lots for public infrastructure (streets) located at the northwest corner of Palm Canyon Drive and Tahquitz Canyon Way; Major Architectural Approval Case No. 3.3605 for development of lands located at the northwest corner of North Palm Canyon and Andreas Road (new): Block "A"; Major Architectural Approval Case No. 3.3606 for development of lands located at the northwest corner of North Palm Canyon and "New Main Street": Block "B"; Major Architectural Approval Case No. 3.3607 for development of lands located along the westerly frontage of North Palm Canyon Drive, south of "New Main Street": Block "C"; and Planned Development District Case No. 5.1290 / PDD 361 for development of a hotel of approximately 185 rooms, restaurants, meeting rooms, retail uses and ancillary uses in excess of 60 feet in height located at the northeast corner of West Tahquitz Canyon Way and Belardo Road (new): Block "C-1" (collectively, the "Entitlements"). Resolution No. 23728 Page 3 J. On September 19, 2014, the City Council approved the Fourth Amendment to the Project Financing Agreement and found that the Fourth amendment was substantially within the scope of the and none of the circumstances triggering further environmental review had occurred. (Public Resources Code § 21166; CEQA Guidelines § 15162). K. A CEQA Evaluation dated November 5, 2014 from Terra Nova Planning & Research reviewed the proposed 135 room Marriott Hotel at the southwest corner of New Main Street and Belardo Road and determined that the project was in substantial compliance with the approved Specific Plan, that the environmental review and studies prepared in conjunction with the Specific Plan adequately addressed the environmental effects of the project, that a subsequent EIR was not required because the impacts of the proposed project have been analyzed, that no new impacts have been identified, and that no new information changes the conditions under which the project will be implemented. L. On November 12, 2014, the Planning Commission at a public meeting hearing, reviewed the Major Architectural Application Case 3.3785 and found that prior environmental assessments, including the Specific Plan EIR and Addendum adequately address any environmental impacts of the application for Case 3.3785 and that no additional environmental review was required; and conditions made by the Planning Commission have been incorporated in the project; and approved the Major Architectural Application for the project. M. No appeal of the Planning Commission decision was filed and pursuant to the provisions of the Palm Springs Municipal Code, the decision of the Planning Commission became a final decision. N. The City Council finds that the Marriott AC Hotel as approved pursuant to the various entitlements described in this Resolution, meets the requirements established in PSMC Chapter 5.26 for a new first class hotel and is eligible for the City's hotel operations incentive program. O. On December 17, 2014, the City Council conducted a public hearing pursuant to California Government Code Section 53083, has received a report from staff that satisfies the requirements of Government Code Section 53083, and has determined that the grant of incentives as provided in the proposed Hotel Operations Covenant is consistent with and in furtherance of the goals, purpose, and requirements of PSMC Section 5.26. P. The City Council also finds that the Hotel Operations Covenant is a method of financing in part the hotel contemplated and approved as Case 3.3785 and is therefore within the scope of the Specific Plan EIR and the Addendum and therefore no further CEQA review is required. Resolution No. 23728 Page 4 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS RESOLVES: SECTION 1. The Hotel Operations Covenant with Palm Springs Promenade, LLC for the construction of a 135 room Marriott AC at the southwest corner of New Main and Belardo Road is approved. SECTION 2. The City Council finds that the Hotel Operations Covenant is within the scope of the Specific Plan EIR and the Addendum and was fully analyzed under CEQA at the time of the December 19, 2012 decision to approve the Entitlements and none of the circumstances triggering further environmental review have occurred since the adoption of the Addendum: (i) there are no substantial changes in the project requiring major revisions of the Specific Plan EIR and Addendum 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 Specific Plan EIR and Addendum due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified effects; and (iii) there is no 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 Specific Plan EIR and Addendum were certified showing that: (a) the project will have one or more significant effects not discussed in the Specific Plan EIR and Addendum; (b) significant effects previously examined will be substantially more severe than shown in the Specific Plan EIR and Addendum; (c) mitigation measures or alternatives previously found not feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the mitigation measures or alternatives have not been adopted; or (d) mitigation measures or alternatives considerably different from those analyzed in the Specific Plan EIR and Addendum would substantially reduce one or more significant effects on the environment, but the mitigation measures or alternatives have not been adopted. No further environmental review is required. (Public Resources Code § 21166; CEQA Guidelines § 15162.) PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 17TH DAY OF DECEMBER, 2014. DAVID H. READY, GER ATTEST: MES THOMPSON, CITY CLERK Resolution No. 23728 Page 5 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 23728 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on the 171h day of December, 2014, by the following vote: AYES: Councilmember Foat, Councilmember Hutcheson, Councilmember Mills, Mayor Pro Tem Lewin, and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. MES THOMPSON, CITY CLERK City of Palm Springs, California 0+/15/2oi5 R C'Ei V E STATE OF CALIFORNIA-THE RESOURCES AGENCY op O A LMDEPARTMENT OF FISH AND GAME -3 1 ENVIRONMENTAL FILING FEE CASH RECEIPT 201E p 12: 43 1 A ME5 T HChP ; 'Receipt M 201400856 CITY cLEIIK State Clearinghouse#(if applicable): 2008061084 Lead Agency: CITY OF PALM SPRINGS Date: 12/18/2014 County Agency of Filing: Riverside Document No: 201400856 Project Title: DOWNTOWN PALM SPRINGS REVITALIZATION/MUSEUM MARKET PLAZA SP Project Applicant Name: PALM SPRINGS PROMENADE,LLC Phone Number: Project Applicant Address: 555 S. SUNRISE WAY#200 PALM SPRINGS,CA 92264 Project Applicant: Private Entity CHECK APPLICABLE FEES: ❑Environmental Impact Report ❑Negative Declaration ❑Application Fee Water Diversion(State Water Resources Control Board Only) ❑Project Subject to Certified Regulatory Programs ❑X County Administration Fee $50.00 ❑X Project that is exempt from fees(DFG No Effect Determination(Form Attached)) ❑Project that is exempt from fees(Notice of Exemption) Total Received $50.00 Signature and title ofperson receiving payment: Notes: a37,�a Rl jERSIC)F couNT, DEC 18 2014 NOTICE OF DETERMINATION To: From: sy epu " a Office of Planning and Research City of Palm Springs 1400 Tenth Street, Room 121 3200 E. Tahquitz Canyon Way . Y�r Sacramento, CA 95814 Palm Springs, CA 92262 X County Clerk's Office County of Riverside 2720 & 2724 Gateway Drive Riverside, CA 92507 Filing of Notice of Determination in compliance with Section 21108 or 21152 of the Public Resources Code. Project Title: Downtown Palm Springs Revitalization / Redevelopment Project (Museum Market Plaza Specific Plan, Desert Fashion Plaza Site): Hotel Operations Covenant for a 135-room AC Marriott Hotel located on Block"F" State Clearinghouse Number: Previously certified EIR SCH #2008061084 Lead Agency Contact Person: David Newell, Associate Planner Area Code/Telephone/ Extension: 760.323.8245 Project Location: A portion of a 13.2 acre site located at the northwest corner of North Palm Canyon Drive and Tahquitz Canyon Way, and east of North Museum Drive, Palm Springs, Riverside County, California. This portion of the, project is located ` I k at the southwest corner of Belardo Road and Main qp "F„ Neg Declara ion ,c) Fried per PR�2�?�� Name and Address of Developer/Applicant or Project Sponsor: Palm Springs Promenade, LLC DEC 18 2(1 555 S. Sunrise Way, Suite 200 BAN 015 Palm Springs, CA 92264 Removed: ueP Project Description: ay' Coun f RN The City, as lead agency, prepared the Museum Market Specific Plan EIR ( e "Specific Plan EIR") to analyze the impacts of the Downtown Palm Springs Revitalization / Redevelopment Project (the "Project"). The Specific Plan EIR concluded that the Project would have significant and unavoidable effects on the environment. On December 9, 2009, the City Council for the City of Palm Springs made findings, adopted a Mitigation Monitoring and Reporting Program, adopted a Statement of Overriding Considerations, and certified the Specific Plan EIR pursuant to the provisions of CEQA. On that date, the City Council also adopted the Museum Market Specific Plan, conditioned on compliance with the mitigation measures in the Specific Plan EIR/ Mitigation Monitoring and Reporting Program. On October 17, 2012, the City Council for the City of Palm Springs approved modifications to the Project and adopted an Addendum to the Specific Plan EIR. The City Council component that of the Specific Plan EIR and Addendum together are adequate to support approval of each Project, including any future discretionary approvals. 914763.1 y Notice of Determination—State Clearinghouse No. 2008061084 Page 2 of 2 Hotel Operations Covenant for 135-room AC Marriott Hotel on Block T" On November 12, 2014, the Planning Commission of the City of Palm Springs approved a Major Architectural application for the development of Block "F" of the Museum Market Plaza Specific Plan with a 4-story, 135 room hotel with approximately 5,064 square feet of ground floor commercial space. The City has determined that the Hotel is qualified as a First Class New Hotel and is eligible for the City's hotel operations incentive program pursuant to Palm Springs Municipal Code Section 5.26.040(a). On that basis, on December 17, 2014, the City entered into an Operations Covenant with Palm Springs Promenade, LLC ("PS Promenade") in which, among other things, the City agrees to provide economic subsidy to PS Promenade and PS Promenade agrees to operate the Hotel in a first-class manner. The Operations Covenant implements the Project as previously analyzed in the Specific Plan EIR and Addendum. The Operations Covenant is therefore within the scope of the Specific Plan EIR and the Addendum, and none of the circumstances triggering further environmental review have occurred: (i) there are no substantial changes in the project requiring major revisions of the Specific Plan EIR and Addendum 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 Specific Plan EIR and Addendum due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified effects; and (iii) there is no 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 Specific Plan EIR and Addendum were certified showing that: (a) the project will have one or more significant effects not discussed in the Specific Plan EIR and Addendum; (b) significant effects previously examined will be substantially more severe than shown in the Specific Plan EIR and Addendum; (c) mitigation measures or alternatives previously found not feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the mitigation measures or alternatives have not been adopted; or (d) mitigation measures or alternatives considerably different from those analyzed in the Specific Plan EIR and Addendum would substantially reduce one or more significant effects on the environment, but the mitigation measures or alternatives have not been adopted. No further environmental review is required. (Public Resources Code § 21166; CEQA Guidelines § 15162.) This is to certify that the Museum Market Plaza Specific Plan EIR, Addendum to the Museum Market Plaza Specific Plan EIR, and record of approval are available to the General Public at: City of Palm Springs, 3200 E. Tahquitz Canyon Way, Palm Springs, CA 92262 December 18 2014 Associate Planner Signatu a Date Title 914763.1