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Home My WebLink About22203 - RESOLUTIONS - 4/2/2008 RESOLUTION NO. 22203 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, VACATING, RESCINDING, AND OTHERWISE SETTING ASIDE APPROVAL OF RESOLUTION NOS. 20993, 20995, AND 20996 RELATING TO THE PALM HILLS PROJECT. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS FINDS: A. On or about July 21, 2004, The City Council of the City of Palm Springs entered into a development agreement with Palm Hills Corp. ("Developer") entitled Development Agreement No. 4 or DA4 ("Development Agreement") for the development of Developer's property consisting of an approximately 906 acre site in Palm Springs California known as Palm Hills (the "Property"), pursuant to the development plan in the Development Agreement ("Project"). B. In connection with the Development Agreement, the City approved the following land use approvals: (1) General Plan Amendment, Case No. 5-0732, ("General Plan Amendment") (2) Palm Hills Specific Plan (Planning Area #1), Case No. 5-0732, (3) Planned Development District No. 258, Case No. 5-0826-PD-258, (4) Tentative Parcel Map 291901, and (5) Tentative Tract Map 29100 for the development of approximately 900 acres more or less in the southeastern portion of Palm Springs (the "PDD Area") and at the same time certified the Environmental Impact Report No. 98061043 ("EIR") by Resolution No. 20993 (collectively "Entitlements"), C. On or about August 5, 2004, Sierra Club and Center for Biological Diversity filed a Petition for Writ of Administrative and Traditional Mandate in the Riverside County Superior Court, Case No. INC 044852, to invalidate the Entitlements and set aside the EIR ("Lawsuit"). D. On or about March 8, 2005, the City's approval of the General Plan Amendment was set aside by way of a referendum ("Referendum"), rendering the General Plan Amendment inconsistent with the General Plan and therefore invalid and of no force or effect. E. Because the Referendum rendered the General Plan Amendment inconsistent with the General Plan and without value, a question was raised as to whether the lawsuit was moot. F. Sierra Club and Center for Biological Diversity took the position that the City and the Developer may try to use the certified EIR, and the entitlements identified in subparagraphs (2)-(5) of Paragraph B, above, that were not the subject matter of the Referendum (collectively "Remaining Entitlements"), and decided to proceed with the Lawsuit to invalidate the certified EIR and Remaining Entitlements. Resolution No, 22203 Page 2 G. Section 13 of the Development Agreement provides that the Developer, Palm Hills Corp. agrees to indemnify the City and its elective boards, commissions, officers, agents and employees and to hold and save them harmless from any and all actions, suits, claims, liabilities, etc. (including but not limited to attorneys' fees and costs) against the City and/or agent for any such Claims or Litigation (as those terms are defined in Section 1.10 of the Development Agreement) and shall be responsible for any judgment arising there from (collectively, the "Indemnity Obligations"). H. Section 13.3 of the Development Agreement provides that all indemnity provisions set forth therein shall survive termination of the Development Agreement for any reason other than the City's default. I. On or about May 26, 2004, Developer Palm Hills, LLC became an interested party in the Lawsuit by executing an agreement whereby Palm Hills, LLC was assigned inter alias (i) the right to purchase the Property; and (ii) Palm Hills Corp.'s rights and obligations under the Development Agreement, including the Indemnity Obligations (the "Assignment Agreement"). J. On or about November 2, 2007, Palm Hills Land Corp., a California Corporation and Palm Hills Company, LLC, a Delaware limited liability company, executed an Indemnity Agreement further memorializing and reiterating Palm Hills Company, LLC's indemnity obligations to the City and related indemnitees and Palm Hills Land Corp. acknowledged that it has no objection to the City and Palm Hills Company LLC entering into the agreement- K. The Developer and the City agree that the most cost effective way of obtaining a dismissal of the Lawsuit is for the City to recognize formally that, as a result of the Referendum, the Remaining Entitlements are inconsistent with the General Plan and are therefore terminated. L. The City also agreed to vacate its approval of Resolution No. 20993, which certified the EIR, in light of the fact that the Remaining Entitlements were rendered invalid as a result of the Referendum. M. Palm Hills Company, LLC has paid all attorneys' fees and costs incurred by the City in connection with the Lawsuit. N. The City has agreed to consider taking all additional steps necessary to formally vacate or otherwise set aside as invalid and of no force and effect, the following Resolutions and Ordinances concerning the Project: (1) Resolution No. 20993 certifying the Final Environmental Impact Report as complete, adopting the Statement of Facts and Findings, adopting the Statement of Overriding Considerations, and adopting the Mitigation Monitoring Program for the Project; (2) Resolution No. 20995 approving the Palm Hills Specific Plan; (3) Resolution No. 20996 approving the Preliminary Plan Development District 258, Tentative Parcel Map No. 29100, and Tentative Tract map No. 29101 for the 906-acre development proposed on property owned by Palm Hills Resolution No. 22203 Page 3 Corp.; (4) Ordinance No. 1657 approving a Change of Zone; and (5) Ordinance No. 1658 approving the Development Agreement. THE CITY OF PALM SPRINGS, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City of Palm Springs determines, based on the recitals contained in this resolution and the findings and facts provided in this resolution, the agenda report, public testimony, and any other relevant and supporting evidence that the Referendum rendered all of the Project Entitlements inconsistent with the General Plan and that said Project Entitlements are therefore invalid and of no force or effect. SECTION 2. The City of Palm Springs hereby vacates, rescinds, and otherwise sets aside approval of Resolution No. 20993 certifying Final Environmental Impact Report No. 98061043 as complete, adopting the Statement of Facts and Findings, adopting the Statement of Overriding Considerations, and adopting the Mitigation Monitoring Program for the Project. SECTION 3. The City of Palm Springs hereby vacates, rescinds, and otherwise sets aside approval of Resolution No. 20995 approving the Palm Hills Specific Plan. SECTION 4. The City of Palm Springs hereby vacates, rescinds, and otherwise sets aside approval of Resolution No. 20996 approving Preliminary Plan Development District 258, Tentative Parcel Map No. 29100, and Tentative Tract map No. 29101. PASSED, APPROVED, AND ADOPTED THIS 2ND DAY OF APRIL, 2008. � L David H. Ready, I y Manager ATTEST: � ames Thompson, City Clerk Resolution No. 22203 Page 4 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. 22203 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 April 2, 2008, by the following vote: AYES: Councilmember Hutcheson, Councilmember Mills, Councilmember Weigel, Mayor Pro Tern Foat, and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. mes Thompson, City Clerk City of Palm Springs, California T!