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HomeMy WebLinkAbout4/16/2008 - STAFF REPORTS - 1.B. ?ALM gp� fZ ti c+ u m x � ` 4Oea...ceo••�a c'OL/FORN�P. CITY COUNCIL STAFF REPORT DATE: April 16, 2008 PUBLIC HEARING SUBJECT: PROPOSED ZONING ORDINANCE AMENDMENT RELATING TO STREET LEVEL OFFICE USES AND FINANCIAL INSTITUTIONS IN CERTAIN PORTIONS OF THE C-B-D ZONE, CASE 5.1173 FROM: David H. Ready, City Manager BY: Department of Planning Services SUMMARY The project is an amendment to the Palm Springs zoning Code regarding the standards and regulations for establishing office uses in the Central Business District (C-B-D) zone. The C-B-D zone is applied to the City's downtown area, which is generally defined as Palm Canyon and Indian Canyon Drives, between Alejo and Ramon Roads, as well as adjacent streets. A public hearing is required. RECOMMENDATION: 1. Open the public hearing and receive public testimony; 2. Waive the reading of the ordinance text in its entirety and read by title only; and 3. Reintroduce on first reading ordinance no. 1728, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 92,09.01 OF THE PALM SPRINGS ZONING CODE RELATED TO STREET LEVEL OFFICE USES AND FINANCIAL INSTITUTIONS IN CERTAIN PORTIONS OF THE C-B- D ZONE." PRIOR ACTIONS: On July 26, 2006, the City Council enacted an urgency ordinance prohibiting office uses in the C-B-D zone, with certain exceptions for financial institutions. The Council directed staff to prepare an ordinance amendment for consideration by the Planning Commission and City Council. The ordinance was later extended by Council action. On September 5, 2007, the Planning Commission conducted a study session on the issues surrounding office uses in the C-B-D Zone. A Item No. 1 . B . City Council Staff Report Page 2 of 2 5,1173—Zoning Ordinance Amendment—OfFce Uses in C-B-D Zone April 16,2008 On October 3, 2007, the City Council reviewed a draft ordinance and initiated a zone text amendment regarding office uses in the C-B-D Zone. On October 24, 2007, the Planning Commission conducted a public hearing and adopted a recommendation to allow office uses in the Central Business District on Palm Canyon Drive with a Conditional Use Permit, and elsewhere with a Land Use Permit. On December 12, 2007, the City Council conducted a second reading of the proposed zone text amendment (following a public hearing on November 7, 2007). The Council did not adopt the ordinance, but rejected the proposal and sought a revised code amendment consistent with the Planning Commission's October 24th recommendation. On March 5, 2008 the Planning Commission reviewed its previous recommendation and determined that the recommendation did not need to be revised. The Commission did note that the intent of its recommendation is to preserve Palm Canyon Drive as a predominantly retail business district. STAFF ANALYSIS: The Planning Commission's recommendation was based, in part, on the Commission's conclusion that a prohibition on office uses on Palm Canyon Drive would not be appropriate under the current economic conditions. As a result, office uses would be allowed subject to a Conditional Use Permit. The Commission discussed the advantages of using the CUP process to regulate office uses, including the potential for setting a term for the Permit. A draft ordinance reflecting the Commission's recommendation is also attached. FISCAL IMPACT: There is no cost to the City associated with the adoption of the ordinance. ai lnwing, AVP 7homas Wilso Assistant City Manager Director of Plann' Services David H. Ready, City M Attachment: 1. Draft Ordinance, as recommended by Planning Commission 2. Planning Commission meeting minutes (315/08, excerpt) 3. Planning Commission staff report and attachments (dated 3/5/08) 000002 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 92.09.01 OF THE PALM SPRINGS ZONING CODE RELATING TO STREET LEVEL OFFICE USES AND FINANCIAL INSTITUTIONS IN CERTAIN PORTIONS OF THE C-B-D ZONE. City Attorneys Summary This Ordinance allows street level office and financial institutional uses along Palm Canyon Drive between Alejo and Baristo Drives subject to a conditional use permit and allows street level office and financial institutional uses along certain city streets in the C-B-D zone subject to a land use permit. This Ordinance will sunset on January 1, 2013 unless extended prior to such date. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ORDAINS: Section 1. Subsection A-37 of Section 92.09.01 of the Palm Springs Municipal Code (relating to uses permitted in the C-B-D Zone) is amended to read: 37. Offices (except contractors) and financial institutions; except that: (1) offices and financial institutions at street level and which are oriented towards Palm Canyon Drive between Alejo and Baristo Roads shall only be permitted subject to a conditional use permit pursuant to the provisions of Subsection D of this Section, and (2) offices and financial institutions at street level and oriented towards: Tahquitz Canyon Way, between Belardo Road and Indian Canyon Drive; Andreas Road, between Palm Canyon and Indian Canyon Drives; Arenas Road, between Belardo Road and Indian Canyon Drive; Baristo Road, northerly side, between Palm Canyon and Indian Canyon Drives; Indian Canyon Drive, westerly side, between Alejo and Baristo Roads; and Alejo Road, southerly side, between Palm Canyon and Indian Canyon Drives shall only be permitted subject to a land use permitted pursuant to the provisions of Subsection C of this Section. Section 2. Paragraph 1-o of Subsection C of Section 92.09.01 of the Palm Springs Municipal Code (relating to uses permitted subject to a land use permit in the C-B-D Zone) is amended to read: o. Offices (not including contractors) and financial institutions at street level and oriented towards: Tahquitz Canyon Way, between Belardo Road and Indian Canyon Drive; Andreas Road, between Palm Canyon and Indian Canyon Drives; Arenas Road, between Belardo Road and Indian Canyon Drive; Baristo Road, northerly side, between Palm Canyon and Indian Canyon Drives; Indian Canyon Drive, westerly side, between Alejo and Baristo Roads; and Alejo Road, southerly side, between Palm Canyon and Indian Canyon Drives, Section 3. Subsection D-11 of Section 92.09.01 of the Palm Springs Municipal Code (relating to uses permitted subject to a conditional use permit in the C-B-D Zone) is amended to read: 11. Offices (except contractors) and financial institutions at street level and which are oriented toward Palm Canyon Drive between Alejo and Baristo Roads. Section 4. Ordinance Nos. 1699, 1701 , and 1713, the interim urgency ordinances relating to street level offices in the historic village center of the City, are repealed. Section 5. The provisions of this Ordinance shall not be applicable to any property any use of any building otherwise covered by the provisions of this Ordinance and for which a building permit was issued by the City for construction related to such use on or before April 25, 2008, Section 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. PASSED, APPROVED, AND ADOPTED this day of 2008. STEVEN POUGNET, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK APPROVED AS TO FORM: DOUGLAS HOLLAND, CITY ATTORNEY oaoo�� City of Palm Springs a1 Planning Commission Meeting of March 5, 2008 3. Case 5.1173 ZTA - An application by the City of Palm Springs to amend the Palm Springs Zoning Code regarding the standards and regulations for establishing office uses in the Central Business District (C- B-D) zone, the downtown area generally defined as Palm Canyon and Indian Canyon Drives, between Alejo and Ramon Roads and adjacent streets. (Project Planner: Craig A. Ewing, Director of Planning Services) Craig A. Ewing, Director of Planning Services, provided background information as outlined in the staff report dated March 5, 2008. Commissioner Conrad noted her abstention (she was not present when this item was previously heard) and would not be participating in the discussion and vote. Mr. Caffery noted a concern with the orientation of storefronts facing Palm Canyon Drive and the entry off of an adjacent street. Further discussion was made. M/S/C (Cohen/Vice Chair Hochanadel, 6-0, 1 abstained/ Conrad) To uphold Planning Commission Resolution No. 7110,- with the intent to keep offices off of Palm Canyon Drive, Work Program Priorities and Subcommittee Assignments Mr. Ewin tated that the updated General Plan orientation will continue for their April Study Sessio s well as the organization of the Zoning Code. 5. COMMISSION/STA REPORTS AND REQUESTS: Ms. Ringlein noted that she and . Caffery volunteered for a utility undergrounding subcommittee and requested sta rovide the status of this group. Ms. Ringlein requested staff follow-up on the a's Market landscaping on the corner of Vista Chino and Gene Autry Way. Ms. Conrad requested staff address the searchlight poll and the change of ownership for Grill-A-Burger. Staff responded that there are provis s for permits to allow searchlights and would forward the information on both these req sts via a-mail. Chair Marantz noted that she will not be in attendance for the Apri th Planning Commission and the April 7th Architectural Advisory Committee meetings. OppALM SA? iy V N Y ryee PLANNING COMMISSION STAFF REPORT Date: March 5, 2008 Case No.. 5.1173 Type: Zone Text Amendment Location: City-wide Applicant: City of Palm Springs From: Craig A. Ewing, AICP, Director of Planning Services Subject: Zoning Ordinance Amendment Relating to Street Level Office Uses and Financial Institutions in Certain Portions of the C-B-D Zone PROJECT DESCRIPTION On October 24, 2007, the Planning Commission adopted a recommendation to the City Council for standards and regulations for establishing office uses in the Central Business District (C-B-D) zone (see Resolution No. 7110), The C-B-D zone is applied to the City's downtown area, which is generally defined as Palm Canyon and Indian Canyon Drives, between Alejo and Ramon Roads, as well as adjacent streets. On December 12, 2007, the City Council conducted a second reading of the proposed zone text amendment at which time the Council rejected the proposal and sought a revised code amendment consistent with the Commission's recommendation. Staff is seeking the Commission's concurrence regarding its October 24, 2007 recommendation RECOMMENDATION That the Planning Commission verify that it has no new concerns with its adopted recommendation. If there are concerns, the Commission should direct staff to notice a new public hearing at which time it may consider other options or recommendations. ra' A. wing gServices Dire or of Plan Planning Commission Staff Report March 5,2008 Case No. 5,1173—Zone Text Amendment—Offices in C-B-D Zone Page 2 of 2 cc: City Council Meeting Minutes (December 12, 2007, excerpt) Planning Commission Resolution No. 7110, including Exhibit A Planning Commission Meeting Minutes (October 24, 2007, excerpt) Planning Commission Staff Report (October 24, 2007) City Council Staff Report (October 3, 2007) Planning Commission Staff Report (September 5, 2007) 000087 CITY COUNCIL. MEETING -- DECEMBER 12, 2007 EXCLUDED CONSENT CALENDAR: 2.E. SECOND READING AND ADOPTION OF PROPOSED ORDINANCE NO. 1728, RELATING TO STREET LEVEL OFFICE USES AND FINANCIAL INSTITUTIONS IN CERTAIN PORTIONS OF THE C-B-D ZONE: Staff Report Item 2.E. Councilmember Hutcheson noted his preference with the Planning Commission recommendation. Councilmember Weigel stated he preferred the Planning Commission recommendation. Mayor Pro Tern Foat commented on the impacts to the merchants and the Downtown area in general. Councilmember Mills stated his support for the Ordinance and commented that office use is allowed on the side streets in the Downtown area. Mayor Pro Tern Foat stated she would prefer to see the proposed ordinance prepared by staff. Councilmember Mills requested the City Attorney clarify provisions of the Ordinance as recommended by the Planning Commission, and requested staff address the application fee for a CUP. Councilmember Hutcheson stated he would like staff to review the objectives of both sides and draft an ordinance that could meet all the objectives of the City Council. ACTION: 1) Deny the Ordinance No. 1728 as proposed and written; and 2) Direct staff to revise and rework Ordinance No. 1728 addressing the recommendation of the Planning Commission and incorporating further modifications as proposed by the City Council. Motion Councilmember Hutcheson, seconded by Councilmember Weigel and carried 3-2 on a roll call vote. AYES: Councilmember Hutcheson, Councilmember Weigel, and Mayor Pougnet. NOES: Councilmember Mills, and Mayor Pro Tem Foat. 000008 RESOLUTION NO. 7110 OF THE PLANNING COMMISSION OF THE CITY OF PALM SPRINGS, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL AMEND SECTION 92.09.01 OF THE PALM SPRINGS ZONING CODE RELATING TO STREET LEVEL OFFICE USES AND FINANCIAL INSTITUTIONS IN CERTAIN PORTIONS OF THE C-B-D ZONE. WHEREAS, Section 92.09.00 of the Palm Springs Zoning Ordinance establishes regulations for the use and development of land in the Central Business District (C-D-B Zone), as defined; and WHEREAS, the C-B-D zone is intended "for the central business district, primarily retail business in character, with related hotels, multiple-family dwellings, and service, office, cultural and institutional uses. The central business district is intended to be a compact, lively, active, intensively used area catering to the pedestrian"; and WHEREAS, the Historic Village Center within the C-B-D zone is intended to, "...serve as the center of the downtown with the primary economic activities focusing on specialty retail, restaurants and entertainment. The following streets shall be deemed to be within the Historic Village Center: Palm Canyon Drive, between Alejo and Baristo Roads, Tahquitz Canyon Way, between Belardo Road and Indian Canyon Drive; Andreas Road, between Palm Canyon and Indian Canyon Drives; Arenas Road, between Belardo Road and Indian Canyon Drive; Baristo Road, northerly side, between Palm Canyon and Indian Canyon Drives; Indian Canyon Drive, westerly side, between Alejo and Baristo Roads; and Alejo Road, southerly side, between Palm Canyon and Indian Canyon Drives"; and WHEREAS, on October 3, 2007, the City Council voted unanimously to direct staff to initiate a Zoning Ordinance Text Amendment (Case No. 5.1173) to establish a new set of regulations for office uses, including financial institutions, in the C-B-D zone; and WHEREAS, on October 24, 2007, the Planning Commission conducted a duly noticed public hearing on the proposed amendment, at which hearing the Commission carefully reviewed and considered all of the evidence presented in connection with the project, including but not limited to the staff report and all written and oral testimony presented, and WHEREAS, the Planning Commission hereby determines that the proposed amendment is exempt pursuant to the "General Rule" [Section 15061(b)(3)) in that CEQA applies only to projects that have the potential to cause a significant impact on the environment; the proposed amendments are process-oriented, requiring additional levels of review through the permit process for each gDOM Planning Commission Resolution October 24,2007 5.1173—ZTA Page 2 of 2 applicable future project; and that there is no possibility that the proposed amendments could have a significant effect an the environment. THE PLANNING COMMISSION OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE. AS FOLLOWS; Section 1: The Planning Commission hereby finds that adoption of the proposed Zoning Text Amendment would: a. Allow a more consistent and effective application of the Zoning Ordinance, b. Provide a more appropriate set of regulations for office uses and financial institutions to advance the intent of the C-B-D Zone, and c. Assure the continued economic viability of existing and future developments and tenants in the City's historic village center, as defined. Section 2: The adoption of the proposed Zone Text Amendment would be consistent with the intent of the Zoning Ordinance and the City's General Plan because it provides for flexibility in the face of changed economic and other conditions, and will assure the continued success of the City's downtown. Section 3: Based upon the foregoing, the Planning Commission does hereby recommend to the City Council amendment of the Palm Springs Zoning Code to allow office uses and financial institutions on the street level of Palm Canyon Drive by a conditional use permit and on other selected streets by land use permit, as described in the draft ordinance, attached hereto and made a part of this resolution as Exhibit A. Section 4: The Commission also recommends that within two years of its enactment the ordinance be reviewed to determine if revisions are appropriate. ADOPTED this 24th day of October, 2007, AYES: 6, Ringlein, Cohen, Marantz, Hochanadel, Hutcheson and Scott NOES: 1, Caffery ABSENT: None. ABSTAIN: None. ATTEST: CITY OF PALM SPRINGS, CALIFORNIA r r ' A wing, A Di or of PI i Services ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTION 92.09.01 OF THE PALM SPRINGS ZONING CODE RELATING TO STREET LEVEL OFFICE USES AND FINANCIAL INSTITUTIONS IN CERTAIN PORTIONS OF THE C-B-D ZONE. CityAttorney's Summary This Ordinance allows street level office and financial institutional uses along Palm Canyon Drive between Alejo and Baristo Drives subject to a conditional use permit and allows street level office and financial institutional uses along certain city streets in the C-R-D zone subject to a land use permit. This Ordinance will sunset on January 1, 2013 unless extended prior to such date. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ORDAINS: Section 1. Subsection A-37 of Section 92.09.01 of the Palm Springs Municipal Code (relating to uses permitted in the C-B-D Zone) is amended to read: 37. Offices (except contractors) and financial institutions; except that: (1) offices and financial institutions at street level and which are oriented towards Palm Canyon Drive between Alejo and Baristo Roads shall only be permitted subject to a conditional use permit pursuant to the provisions of Subsection D of this Section, and (2) offices and financial institutions at street level and oriented towards: Tahquitz Canyon Way, between Belardo Road and Indian Canyon Drive; Andreas Road, between Palm Canyon and Indian Canyon Drives; Arenas Road, between Belardo Road and Indian Canyon Drive; Baristo Road, northerly side, between Palm Canyon and Indian Canyon Drives; Indian Canyon Drive, westerly side, between Alejo and Baristo Roads; and Alejo Road, southerly side, between Palm Canyon and Indian Canyon Drives shall only be permitted subject to a land use permitted pursuant to the provisions of Subsection C of this Section. Section 2. Paragraph 1-o of Subsection C of Section 92.09.01 of the Palm Springs Municipal Code (relating to uses permitted subject to a land use permit in the C-B-D Zone) is amended to read: o. Offices (not including contractors) and financial institutions at street level and oriented towards: Tahquitz Canyon Way, between Belardo Road and Indian Canyon Drive; Andreas Road, between Palm Canyon and Indian Canyon Drives; Arenas Road, between Belardo Road and Indian Canyon Drive; Baristo Road, northerly side, 00001, between Palm Canyon and Indian Canyon Drives; Indian Canyon Drive, westerly side, between Alejo and Baristo Roads; and Alejo Road, southerly side, between Palm Canyon and Indian Canyon Drives. Section 3, Subsection D-11 of Section 92.09.01 of the Palm Springs Municipal Code (relating to uses permitted subject to a conditional use permit in the C-B-D Zone) is amended to read: 11. Offices (except contractors) and financial institutions at street level and which are oriented toward Palm Canyon Drive between Alejo and Baristo Roads. Section 4. Ordinance Nos, 1699, 1701, and 1713, the interim urgency ordinances relating to street level offices in the historic village center of the City, are repealed. Section 5. The provisions of this Ordinance shall not be applicable to any property any use of any building otherwise covered by the provisions of this Ordinance and for which a building permit was issued by the City for construction related to such use on or before September 1, 2007. Section 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after passage. PASSED, APPROVED, AND ADOPTED this day of 2007. RON ODEN, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK APPROVED AS TO FORM: DOUGLAS HOLLAND, CITY ATTORNEY City of Palm Springs Planning Commission Minutes of October 24, 2007 hair Marantz noted an e-mail was received from several neighbors stating op sition to this request. Chair Marantz stated she is not in favor of this request and feels ecedent would be set for approving projects that have not met the setback requireme Commissioner Sc noted his concern with no fire access path-within the required five feet setback. M/S/C (CafFeryNice Chair H anadel, 7-0) To deny, Case 6.504 Variance. Staff reported that the Planning Co ission decision may be appealed in writing to the City Clerk. A recess was taken at 3:46 p.m. The meeting resumed at 3:55 p.m. 6. Case 5.1172 ZTA - An application by the City of Palm ings I amend the Palm Springs Zoning Code regarding the standards and r ulations for the development of Condominium Hotels. (Project Planner: C ' A. Ewing, Director of Planning Services) Staff reported that the City Attorney has further revisions to the Item and has reque ed a continuance totthheymeeting of November y14, 2007. —M/$/6-(Ft�t�glett��C�ifery 7 r'�I�11fIc cZvvic�iTc�mi�$f-I�Ik� amhr 1 7. Case 5.1173 ZTA - An application by The City of Palm Springs to amend the Palm Springs Zoning Code regarding the standards and regulations for establishing office uses in the Central Business District (C-B- D) zone, the downtown area generally defined as Palm Canyon and Indian Canyon Drives, between Alejo and Ramon Roads and adjacent streets. (Project Planner: Craig A. Ewing, Director of Planning Services) Craig A. Ewing, Director of Planning Services, provided background information as outlined in the staff report dated October 24, 2007, Commissioner Ringlein reminded staff this item was discussed at a study session and the consensus of the Commission was not to prohibit offices in the downtown but subject to a Conditional or Land Use Permit. Ms. Ringlein suggested that city staff assigned to the downtown area provide more outreach to business owners. 6 000023 City of Palm Springs Planning Commission Minutes of October 24, 2007 Commissioner Cohen concurred with Ms, Ringlein and noted that public comments made at the study session, by downtown business owners, stated their preference to have these buildings occupied rather than sit vacant for many years. Commissioner Caffery noted his preference for verbiage in the draft City Council Ordinance, #37, to state "_ . . any frontage on Palm Canyon will be regulated according to Palm Canyon rules". Chair Marantz opened the Public Hearing: -Martha Higgins, property manager for Wessman Development Company, requested leniency during the interim period of the downtown redevelopment and provided further details on their difficulty in leasing retail space at Plaza Las Flores between Indian Canyon and Palm Canyon Way. There being no further comments, the Public Hearing was closed. Staff noted that existing legally-established offices would be subject to a grandfather condition.. y M/S/C (Ringlein/Cohen, 6-1/Caffery) To -recommend approval to the City Council; as amended: *Offices on Palm Canyon Way, subject to a Conditional Use Permit. `Offices off of Palm Canyon Way (side streets), subject to a Land Use Permit. *A review of the ordinance in two years. S. Ap tment of Donald Wexler as an Alternate Member and Allen Sanborn as a Me r to the Architectural Advisory Committee. Craig A. Ewing reported <Donald Wexler has requested to serve as an alternate member of the Architecture AdvisQry Committee due to his schedule. A request has also been received from Allen San n indicating his willingness to serve as a permanent member of the Architec I Advisory Committee. Mr. Ewing suggested (since the ordinance states only two Iternate members) making Mr. Paul Ortega a permanent member of the Architectural Advis Committee. M/S/C (Vice Chair Hochanadel/Cohen, 7-0) To appoint Donald Wexter as an Alternate Member and appoint Allen Sanborn as a Permanent Member to kre.Architectural Advisory Committee; and appoint Paul Ortega, as a Permanent Member, to ve as a Permanent Member. 7 00001� PALMSo GP N n w�.nv` c9`'x°0"%P PLANNING COMMISSION STAFF REPORT Date. October 24, 2007 Case No.: 5.1173 Type: Zone Text Amendment Location: City-wide Applicant: City of Palm Springs To: Planning Commission From: Craig A. Ewing, AICP, Director of Planning Services Subject. Zoning Ordinance Amendment Relating to Street Level Office Uses and Financial Institutions in Certain Portions of the C-B-D Zone PROJECT DESCRIPTION The project is an amendment to the Palm Springs Zoning Code regarding the standards and regulations for establishing office uses in the Central Business District (C-B-D) zone. The C-B-D zone is applied to the City's downtown area, which is generally defined as Palm Canyon and Indian Canyon Drives, between Alejo and Ramon Roads, as well as adjacent streets. A public hearing is required. RECOMMENDATION That the Planning Commission conduct a public hearing and forward to the City Council its recommendation for regulating office uses in the C-B-D zone. (A draft resolution will be presented at the Commission meeting.) PRIOR ACTIONS On July 26, 2006, the City Council enacted an urgency ordinance prohibiting office uses in the C-B-D zone, with certain exceptions for financial institutions. The Council directed staff to prepare an ordinance amendment for consideration by the Planning Commission and City Council. The ordinance was later extended by Council action. 000015 Planning Commission Staff Report October 24,2007 Case No.5,1173—Zone Text Amendment—Offices in C-S-D Zone Page 2 of 2 On September 5, 2007, the Planning Commission conducted a study session on the issues surrounding office uses in the C-B-D Zone. On October 3, 2007, the City Council reviewed a draft ordinance and initiated a zone text amendment regarding office uses in the C-B-D Zone. BACKGROUND AND ANALYSIS As noted in the attached Planning Commission staff report (September 5, 2007) there are a number of considerations related to the establishment of office uses in the City's downtown. In preparing the draft ordinance, the City Attorney has offered an approach that would prohibit office uses on street level oriented to Palm Canyon, but allow them by a Land Use Permit on the street level facing all other streets: Tahquitz Canyon Way, Andreas Road, Arenas Road, Baristo Road (north side), Indian Canyon Drive (west side), Alejo Road (south side). See attached City Council staff report of October 3, 2007. The Commission may consider other options, including the use of Land Use Permits, Conditional Use Permits and certain standards (such as time limits or office size) as part of its recommendation. ENVIRONMENTAL DETERMINATION Staff has evaluated the potential environmental impacts of the proposed amendment ("project") and determined that the project is exempt pursuant to the "General Rule" [Section 15061(b)(3)] that CEQA applies only to projects that have the potential to cause a significant impact on the environment. The proposed amendments are process- oriented, requiring additional levels of review through the permit process for each applicable future project. Consequently, there is no possibility that the proposed amendments could have a significant effect on the environment. Craig A. Ewing AICP Director of Planning Services cc: Draft Zone Ordinance Amendment-- Office Uses in C-B-D Zone City Council Staff Report (October 3, 2007) Planning Commission Staff Report (September 5, 2007) Planning Commission Meeting Minutes, excerpt (September 5, 2007) 0000.1E i 0�ppLM sA4 U N City Council Staff Report c,�<rFOR��a Date: October 3, 2007 From: David H. Ready, City Manager By: Craig A. Ewing, AICP, Director of Planning Services Douglas Holland, City Attorney SuWect: Initiate and refer to the Planning Commission for review and recommendation, an Ordinance of the City of Palm Springs, California, amending Subsection A-37 and Paragraph 1-0 of Subsection C of Section 92.09.01, and repealing Subsection D-11 of Section 92,09.01 of, the Palm Springs Municipal Code, relating to Street Level Office Uses and Financial Institutions in Certain Portions of the C-B-D Zone. Recommendation I Staff recommends that the City Council Initiate the proposed ordinance and refer the ordinance to the Planning Commission for review and recommendation. Background On July 26, 2005, the City Council adopted Interim Urgency Ordinance No. 1699 which began a moratorium on the establishment of new commercial office and financial Institutional uses on the ground floor of bulldings in the Historic Village Center of the City, The moratorium was extended by Ordinances 1701 and 1713 through July 26, 2008 (see attached Ordinance No. 1713). The moratorium was adopted to allow the City to consider revisions to the zoning regulations of the C-B-D zone related to office uses. Current Regulations Presently, the Zoning Code regulates office uses In the C-B-D zone based on the size of the office and its location on the site relative to the street. The attached charts show how the ordinance currently works (see attachment for Ordinance excerpt), The first chart applies to the Historic Village Center, which is shown on the attached map. It is generally described as Palm and Indian Canyon Drives between Alejo and Baristo, as well as all the east-west streets therein; ITEM NO. 000017 i City Council Oorober 3,2007 Office Uses In the G-B-A Zone Page 2 of 5 Type of Of ice Historic Village Center "Fronts a 2,500 SF or Less Land Use Permit Street Over2,500 SF Conditional Use Permit other — Any Size Permitted Locations Type of Office C-B-D Zone outside Historic Villa a Center Street Level 5,000 SF or Less Permitted -- Over 5,000 SF Land Use Permit Other Levels Any Size Permitted As can be seen, larger offices proposed on the street level are subject to greater scrutiny, especially in the Historic Village Center. Also, there Is no absolute prohibition on offices in the C-B-D zone, only the requirement for City review — either a Land Use Permit or Conditional Use Permit. In consideration of any possible changes to the current rules, staff offers the following observations regarding Historic Village Center rules: 1. Land Use Permits —There are no findings for a Land Use Permit, Instead, the Zoning Cade states that the Planning Director "shall approve"an LUP if it is for a use that is listed in the code. The Director may impose any conditions on the approval deemed "necessary" (see attached excerpt). The decision may be appealed to the Planning Commission- 2. Conditional Use Permits—There are required findings for a Conditional Use Permits, which may only be granted by the Planning Commission after a public hearing. The Commission may impose conditions deemed "necessary to protect the public health, safety and general welfare..." (see attached excerpt). The Commission's decision may be appealed to the City Qouncii. 3, Orientation to the Street — The Zoning Code states that offices in the Historic Village Center are subject to higher scrutiny if they "Front a street". There Is no further guidance In the Code on how this phrase is to be applied. 4- Size of Office Tenant— Staff is not aware of the original Justification for the use of 2,600 and 5,000 square feet, and they may be adjusted to any number. 000018 City council October 3,2007 Office Uses in the C-B-D Zone Page 3 of 5 Regulatory Options The City's restriction on first-floor offices in the Historic Village Center Is an attempt to preserve a critical mass of retail in the downtown, as well as promote a synergistic (Le.., mutually beneficial) economic environment for those retailers- If successful, the provisions would yield an exclusively retail downtown (on the first floor) and shoppers would be drawn to an area that provides a concentrated collection of shops. Unfortunately, this is not yet the case, even after several years of these provisions being in effect. I One reason why these regulations have not been entirely effective is that they are negative; that is, they attempt to encourage retail by discouraging office. Staff believes that the decisions building owners make about the tenants they will accept and the decisions tenants make regarding where they will locate are too complex to be salved by any one approach. Staff has identify three reasons for this situation: 1. Owners need to generate income from their spaces. A vacant space awaiting a retail use may be acceptable to some owners (e.g. the farmer iJesmond's i site), but many landlords will lease to any reasonable tenant in order to generate income. If an office use is prepared to sign a lease, many landlords are hard-pressed to say no. 2. Office tenants may be preferred by some landlords. The City's objective for more retail may actually conflict with some building owners, if owners perceive office uses as being more stable, result In lower building f maintenance costs, or yield less wear-and-tear on the property_ 3. Retailers have options besides the Historic Village Center. The City can force retailers to consider downtown when there are limited options outside the Historic Village Center. However, Palm Springs has a wide variety of retail spaces that run the entire length of Palm Canyon Drive, as well as on Indian Canyon Drive, Sunrise Way, Vista Chino, Ramon Road and many other locations. Certainly the Historic Village Center has unique attributes that should appeal to retailers; however, each retailer will consider the iocatienal needs of his or her business, including security, visibility, quality of tenant space, adjacent uses, price, parking and other factors. Downtown is only one option. For these reasons, staff believes that the provisions against office uses are by themselves insufficient to achieve the purpose slated above. However, they do serve as a message to landlords about the City's Intent and they do create a certain 'resistance' to offices being established on the first floor in the downtown. It is possible that without these regulations, even more offices might be established. Based on these comments, staff recommends consideration of the following options: t. The provisions are not stnct enough. Land Use Permits, especially, are not a significant enough barrier to offices going in downtown, and a more restrictive set of criteria should be developed. Conditional Use Permits for all first floor City Council October 3,2007 Office Uses In the C-B-D Zane Page 4 of 5 office uses would send landlords and agents a clear message about the intended uses for downtown. 2. The current provisions are acceptable_ The City should continue to review office uses proposed for street front tenant spaces via a Land Use Permit and that all LUP's will be approved, as per by the Zoning Code. Conditlens should be more carefully considered, including limits an other offices in the same building. The definition of "street-front' should be clarified to apply to tenant spaces directly at street level and within ten feet of the front property line. (Tenant spaces below grade or oriented away from the street would be allowed offices by right.) 3. The provisions should be removed. The City should allow landlords wider latitude to fill their tenant spaces base on their awn assessment of tenant mix and income need. More offices may result in the short-term. As the City develops more downtown housing and more hotel / convention business, tenant spaces may eventually convert to retail use, Staff believes that the City should continue the use of Land Use Permits as indicated in the chart,but identify more clearly the conditions under which offices are be allowed to operate on the street front. Proposed Ordinance Consistent with the concerns and consideration outlined above, staff has prepared an ordinance for Council's consideration. This Ordinance would 1. Prohibit ground floor office uses, including financial institutions, that are oriented towards Palm Canyon Drive between Alejo and Barristo, 2. Office uses and financial institutions at street level and oriented towards: Tahquita Canyon Way, between Belardo Road and Indian Canyon Drive; Andreas Road, between Palm Canyon and Indian Canyon Drives; Arenas Road, between Belardo Road and Indian Canyon Drive; Baristo Road, northerly side, between Palm Canyon and Indian Canyon Drives; Indian Canyon Drive, westerly side, between Alejo and Baristo Roads; and AleiD Road, southerly side, between Palm Canyon and Indian Canyon Drives, would be permitted subject to a land use permit. 3, Conditional use permits would no longer be required and distinctions on the basis of area of the use,would be eliminated. 4. The Ordinance also provides a "sunset' clause and would no longer be In effect after January 1, 2013 unless the Council extends the ordinance, 5, The ordinance would not be applicable to any office or financial institution use for which a building permit was issued prior September 1, 2007. 00M-2a city co4ncll .October 3.2007 Office Uses in the C 13-D.Zone Page 5 of 5 Fiscal Impact: There is no foreseeable fiscal impact on the City of Palm Springs. Douglas C. Holland City Attorney j z. fir David H. Ready, ger Thomas J.Wils ,Assistant City Manager Attachments: 1. Ordinance No. 1713 --000021 oy�ALMSI CITY OF PALM SPRINGS y � " DEPARTMENT OF PLANNING SERVICES c�4FOR kv, MEMORANDUM - Date: September 5, 2007 To: Planning Commission From: Craig A. Ewing, AICP, Director of Planning Services Subject. Discussion of Offices Uses on the First Floor in the C-B-D Zone (Central Business District) On July 26, 2006, the City Council adopted Interim Urgency Ordinance No. 1699 which began a moratorium on the establishment of new commercial office and financial institutional uses on the ground floor of buildings in the Historic Village Center of the City. The moratorium was extended by Ordinances 1701 and 1713 through July 26, 2008 (see attached Ordinance No. 1713). The moratorium was adopted to allow the City to consider revisions to the zoning regulations of the C-B-D zone related to office uses. The purpose of this memo is to provide background information to the Planning Commission so that it might consider options for a possible zoning code amendment. Current Regulations Presently, the Zoning Code regulates office uses in the C-B-D zone based on the size of the office and its location on the site relative to the street. The attached charts show how the ordinance currently works (see attachment for Ordinance excerpt). The first chart applies to the Historic Village Center, which is shown on the attached map. It is generally described as Palm and Indian Canyon Drives between Alejo and Baristo, as well as all the east-west streets therein: Type of Office Historic Village Center "Fronts a 2,500 SF or Less Land Use Permit Street" Over 2,500 SF Conditional Use Permit Other Locations Any Size Permitted 000022 Planning Commission Study Session Memo September 5,2007 Office Uses in the C-B-D Zone Page 2 of 5 Type of Office C-B-D Zone Outside Historic Village Center Street Level 5,000 SF or Less Permitted Over 5,000 SF Land Use Permit Other Levels Any Size Permitted As can be seen, larger offices proposed on the street level are subject to greater scrutiny, especially in the Historic Village Center. Also, there is no absolute prohibition on offices in the C-B-D zone, only the requirement for City review— either a Land Use Permit or Conditional Use Permit. In consideration of any possible changes to the current rules, staff offers the following observations regarding Historic Village Center rules: 1. Land Use Permits — There are no findings for a Land Use Permit, Instead, the Zoning Code states that the Planning Director"shall approve" an LUP if it is for a use that is listed in the code. The Director may impose any conditions on the approval deemed "necessary" (see attached excerpt), The decision may be appealed to the Planning Commission. 2. Conditional Use Permits — There are required findings for a Conditional Use Permits, which may only be granted by the Planning Commission after a public hearing. The Commission may impose conditions deemed "necessary to protect the public health, safety and general welfare..." (see attached excerpt), The Commission's decision may be appealed to the City Council. 3. Orientation to the Street — The Zoning Code states that offices in the Historic Village Center are subject to higher scrutiny if they"front a street"- There is no further guidance in the Code on how this phrase is to be applied. 4. Size of Office Tenant — Staff is not aware of the original justification for the use of 2,500 and 5,000 square feet, and they may be adjusted to any number- Current Conditions Staff has prepared a survey of office uses in the Historic Village Center- This list is based on a "windshield survey" conducted by Code Enforcement in July 2007, (It is possible that some office tenancies were missed, as signs are not always visible, the use appears to be retail or the use was established after the survey was conducted.) As can be seen from the list below and the attached map, office uses are widely distributed in the Historic Village Center. However, ten of the thirty offices inventoried are in the Amado Center (333 N. Palm Canyon Dr.), which is characterized by a below- street level ground floor and many units oriented away from the street. MAP ID# BUSINESS NAME STREET ADDRESS 1. Scott Lyle Realtors 483 N Palm Canyon Dr. 2. Northstar Financial 477 N. Palm Canyon Dr. 3. Prudential California Real 385 N. Palm Canyon Dr. QQQQ�3 Planning Commission Study Session Memo September 5,2007 Office Uses in the C-13-17 Zane Page 3 of S 4. Palm Desert National Bank 333. N. Palm Canyon Dr. Unit#102 5. West Coast Escrow 333, N. Palm Canyon Dr. Unit#104-B 6_ Timeshare Liquidators 333. N. Palm Canyon Dr. Unit# 108-B 7. Dual Com Mort a e 333. N. Palm Canyon Dr. Unit 113-A 8. Elite Lending 333. N. Palm Canyon Dr. Unit#114 9. Brittain & Lerner Ins & Fin'I Svcs 333, N. Palm Canyon Dr. 10. Communitf Caregivers 333. N. Palm Canyon Dr. Unit#118 11. Greater Palm S rin s Insurance 333. N. Palm Canyon Dr. Unit#111 12. Bodvworks Physiotherapy Clinic 333. N. Palm Canyon Dr. Unit#115 13 Bridge Appeal inc 333 N. Palm Canyon Dr. Unit#112-A 14. Enterprise Rent-a-Car 351 N. Indian Canyon Dr. 15. Bottom Lin /Pulp Magazines 312 N. Palm Canyon Dr. 16. Gay Home Loans, Inc. (Split Level 312 N. Palm Canyon Dr. 17. Palm Springs Life Ma azine 303 N. Indian Canyon Dr. 18, Realty Executives 285 N_ Palm Canyon Dr. 19. Hampton Pacific Mortgage _ 160 Andreas Rd. 20. Cash Financial Services, Inc. 170 Andreas Rd. 21. Well in the Desert 181 N. Indian Canyon Dr. 22. Countrywide Home Loans 123 N. Palm Canyon Dr. 23. Windermere Real Estate 123 N. Palm Canyon Dr. 24. Tarbell Realtors 123 N. Palm Canyon Dr. 25. Palm Springs Welcome Center 134 N. Palm Canyon 26. Plaza Investments (Larry Pitts _ 115 N. Indian Canyon Dr. 27. Marriott Vacation Club 155 S. Palm Canyon Dr_ 28. 1 Pro Valley Reat 190 S. Palm Canyon Dr. 29. Sperry Van Ness 255 S, Palm Canyon Dr., #A-4 30. Dr. Ra Sumabat, Dentist 1 255 S. Palm Canyon Dr., #D-7 We do not have specific information as to when each use was established and some have been in place for many years. Consequently, it is not possible to determine if there is a recent trend toward more offices. We do know that office uses continue to be accepted as first-floor tenants by building owners, and we have required a number of tenants to obtain permits "after-the-fact". It seems clear that when a tenant spaces are empty, many owners will consider an office use notwithstanding the Zoning Code's preference for retail commercial. Regulatory Options The City's restriction on first-floor offices in the Historic Village Center is an attempt to preserve a critical mass of retail in the downtown, as well as promote a synergistic (i.e., mutually beneficial) economic environment for those retailers. If successful, the provisions would yield an exclusively retail downtown (on the first floor) and shoppers would be drawn to an area that provides a concentrated collection of shops. Unfortunately, this is not yet the case, even after several years of these provisions being in effect. One reason why these regulations have not been entirely effective is that they are negative; that is, they attempt to encourage retail by discouraging office. Staff believes 00002� ' Planning Commission Study Session Memo September 5,2007 Office Uses in the C-M Zone Page 4 of 5 that the decisions building owners make about the tenants they will accept and the decisions tenants make regarding where they will locate are too complex to be solved by any one approach. Staff has identify three reasons for this situation: 1. Owners need to generate income from their spaces. A vacant space awaiting a retail use may be acceptable to some owners (e.g. the former Desmond's site), but many landlords will lease to any reasonable tenant in - order to generate income. If an office use is prepared to sign a lease, many landlords are hard-pressed to say no. 2. Office tenants may be preferred by some landlords. The City's objective for more retail may actually conflict with some building owners, if owners perceive office uses as being more stable, result in lower building maintenance costs, or yield less wear-and-Year on the property. 3. Retailers have options besides the Historic Village Center. The City can force retailers to consider downtown when there are limited options outside the Historic Village Center. However, Palm Springs has a wide variety of retail spaces that run the entire length of Palm Canyon Drive, as well as on Indian Canyon Drive, Sunrise Way, Vista Chino, Ramon Road and many other locations. Certainly the Historic Village Center has unique attributes that should appeal to retailers; however, each retailer will consider the locational needs of his or her business, including security, visibility, quality of tenant space, adjacent uses, price, parking and other factors. Downtown is only one option_ For these reasons, staff believes that the provisions against office uses are by themselves insufficient to achieve the purpose stated above. However, they do serve as a message to landlords about the City's intent and they do create a certain 'resistance' to offices being established on the first floor in the downtown. It is possible that without these regulations, even more offices might be established. Based on these comments, staff recommends the Commission consider the following options- 1. The provisions are not strict enough. Land Use Permits, especially, are not a significant enough barrier to offices going in downtown, and a more restrictive set of criteria should be developed. Conditional Use Permits for all first floor office uses would send landlords and agents a clear message about the intended uses for downtown. 2. The current provisions are acceptable, The City should continue to review office uses proposed for street-front tenant spaces via a Land Use Permit and that all LUP's will be approved, as per by the Zoning Code. Conditions should be more carefully considered, including limits on other offices in the same building. The definition of "street-front" should be clarified to apply to tenant spaces directly at street level and within ten feet of the front property line. (Tenant spaces below grade or oriented away from the street would be allowed offices by right.) 3. The provisions should be removed. The City should allow landlords wider latitude to fill their tenant spaces base on their own assessment of tenant mix and income need. More offices may result in the short-term. As the 000025 Planning Commission Study Session Memo September 5,2007 Office Uses in the C-B-D Zone Page 5 of 5 City develops more downtown housing and more hotel / convention business, tenant spaces may eventually convert to retail use. Staff believes that the City should continue the use of Land Use Permits and CUP'S as indicated in the chart, but identify more clearly the conditions under which offices are be allowed to operate on the street front. Secondly, staff believes that the City should revisit this question following the completion and operation of the downtown housing and hotel projects now being planned. It may be that in the long-run the success of the Historic Village Center as a retail destination will not have to depend on restricting office uses. Attachments: t. Ordinance No, 1713 2. Palm Springs Zoning Code C-B-D Zone (excerpt) 3. Palm Springs Zoning Code Land Use Permit and Conditional Use Permit (excerpts) 4. Map - Street Level Offices and Financial Institutions in the Historic Village Center of e ALM u x� sp Oy c city o� Palm ���� gs { Office of the (City Clerk 3200 I: Tihyuirz Canyon Way • P.dm $prangs, California 92262 C`1�/FO RN\P "Eel (760) ,23-8204 • 17ax: (/60) 322.83D2 • Web: w%vw.palmsprin¢s-ca.gnv NOTICE OF CONTINUANCE NOTICE IS HEREBY GIVEN that the regular meeting of March 19, 2008, Public Hearing Item No. 1.D. PROPOSED ZONING ORDINANCE AMENDMENT RELATING TO STREET LEVEL OFFICE USES AND FINANCIAL INSTITUTIONS IN CERTAIN PORTIONS OF THE C-B-D ZONE, CASE 5.1173 On a motion by Mayor Pro Tern Foat, seconded by Councilmember Weigel, and carried by a majority vote (4-0-1, Councilmenber Mills absent) the Public Hearing was continued to Wednesday, April 16, 2008, Council Chamber, 3200 E. Tahquitz Canyon Way, at 6:00 p.m., or as soon thereafter as possible. AFFIDAVIT OF POSTING State of California ) County of Riverside ) ss. City of Palm Springs ) I, James Thompson, City Clerk of the City of Palm Springs, California, certify this-Notice of- _ Continuance was posted at or before 5:30 p.m., March 20, 2008, as required by established policies and procedures. James Thompson City Clerk NOTICE OF CONT- StreetLeveoffices 03-19-08.doe Posr Office Box 2743 1 Palm Springs, California 92263-2743