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941FgRN, CITY COUNCIL STAFF REPORT
DATE: March 19, 2008 PUBLIC HEARING
SUBJECT: CASE 5.1172 — APPLICATION BY THE CITY OF PALM SPRINGS FOR
A ZONING CODE AMENDMENT TO ESTABLISH LAND USE
REGULATIONS FOR CONDOMINIUM HOTEL PROJECTS
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 regulating condominium hotel projects. A public hearing is required.
RECOMMENDATION:
1_ Open the public hearing and receive public testimony.
2. Introduce for first reading Ordinance No. _ "AN ORDINANCE OF THE CITY
OF PALM SPRINGS, CALIFORNIA, ADDING SECTION 93.15.10 TO, AND
AMENDING SECTION 91.00.10 OF, THE PALM SPRINGS ZONING CODE
RELATING TO THE ESTABLISHMENT OF REGULATIONS FOR
CONOMINIUM HOTEL PROJECTS".
PRIOR ACTIONS:
On October 3, 2007, the City Council reviewed a draft ordinance and initiated a zone
text amendment regarding the establishment of regulations For condominium hotel
projects.
On January 23, 2008, the Planning Commission conducted a public hearing and
adopted a recommendation to establish regulations for condominium hotels.
On February 12, 2008, the Tribal Council of the Agua Caliente Band of Cahuilla Indians
reviewed the proposed ordinance and recommended approval of the amendment.
ITEM NO. �"
City Council Staff Report Page 2 of 2
5.1172—Zoning Ordinance Amendment—Condominium Hotels March 19,2008
STAFF ANALYSIS:
The City recently approved two major hotel projects that include condominium
ownership of individual room units (Mondrian and Hard Rock). Other hotel projects with
similar condominium ownership are anticipated. To address the unique attributes of this
type of resort, the City Attorney has concluded that specific controls are needed in the
zoning ordinance and has prepared a draft zoning text amendment.
In summary, the proposed condominium hotel ordinance would require the following for
condominium hotels:
- Approval of a Planned Development District
- Limitation on the time an owner may occupy a unit (28 continuous days per year)
- Unified management of the property as a hotel
- Single lobby for guests and owners
- Payment of transient occupancy tax (TOT)
A Homeowners Association (HOA), and the recordation of appropriate
Conditions, Covenants and Restrictions (CC&R's)
Daily maid service and regular "back-of-house" services for all units.
City Council approval for any change of use.
Staff circulated the proposed amendment to the Tribal Council of the Agua Caliente
Band of Cahuilla Indians, which has recommended approval (see attached letter).
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 amendment is 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.
FISCAL IMPACT:
There is no cost to the City associated with the adoption of the ordinance.
C"
rZ+ A�Ewing, P Thomas Wilso Assistant City Manager
Diiec�or of Plan nin Services
David H. Ready, City M
0000 21
City Council Staff Report Page 3 of 2
5.1172—Zoning Ordinance Amendment—Condominium Hotels March 19,2008
Attachment:
1. Draft Ordinance, as recommended by Planning Commission
2. Letter from Agua Caliente Band of Cahuilla Indians (dated 2113/08)
3. Planning Commission Meeting Minutes (excerpt, dated 1/23/08)
4. Planning Commission Resolution No. 7112
5. Planning Commission staff report and attachments (dated 1123108)
000003
ORDINANCE NO.
AN ORDINANCE OF CITY OF PALM SPRINGS, CALIFORNIA, ADDING
SECTION 93.15.10 TO, AND AMENDING SECTION 91.00.10 OF, THE
PALM SPRINGS ZONING CODE, RELATING TO THE
ESTABLISHMENT OF LAND USE REGULATIONS FOR
CONDOMINIUM HOTEL PROJECTS.
CityAttorney's Summary
This ordinance establishes a regulatory land use program for the review
and approval of Condominium Hotel projects in the City.
The City Council of the City of Palm Springs ordains:
Section 1. Section 91.00,10 is amended to add the following as new terms, in
alphabetical order, with the following definitions:
"Condominium Hotel" or "Condo-Hotel" means a commercial condominium
project with Units within a Hotel or Resort Hotel that are individually owned.
"Condominium Hotel Unit" or "Condo-Hotel Unit" means any Unit within a
Condominium Hotel. A Condominium Hotel Unit is a commercial use and therefore
may not be considered a permanent residence.
"Condo-Hotel Unit Owner" or "Unit Owner" means an individual, group of
individuals, or other entity that acquires any ownership interest in, and holds title to, one
or more Condominium Hotel units.
"Condominium Hotel Manager" means a single qualified professional
management entity to maintain and operate the Hotel or Resort Hotel.
"First Class Hotel Standard" means a standard of physical features of and
operational (service expectations) aspects for a hotel or resort hotel that meets or
exceeds the criteria established for the American Automobile Association ("Association")
"four diamond" or "Four star" properties. Should this Association cease to exist or to
publish physical and/or operational criteria, for hotels, or where otherwise necessary to
further the purposes of this Chapter, the Director of Planning Services may utilize a
similar set of criteria that he or she finds will meet the intent of this definition, The First-
Class Hotel Standard shall also include, without limitation, operation of the hotel or
resort hotel on a seven day a week basis, with sufficient room service, housekeeping
(including housekeeping of the individual units), food and beverage service, concierge,
parking, bellman, banqueting, and meeting services.
"Personal use" means the use or occupancy of a unit by a Cando-Hotel Unit
Owner, or by a guest of a Condo-Hotel Unit Owner, or when a guest of a Condo-Hotel
000034
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565011 1
Unit Owner does not rent and pay for a Condo-Hotel Unit through the Condominium
Hotel Manager or entity approved by the City pursuant to Section 93.15.10, provided,
however, that no provision herein shall be deemed to permit a timeshare, fractional, or
othervacation ownership unit.
"Transient, Short Term" means a person who is receiving accommodations for a
price, with or without meals, for a period of not more than twenty-eight (28) continuous
days in any one (1) year, as described in Chapter 3.28 of the Palm Springs Municipal
Code.
"Short Term Transient" means the same as "Transient, Short Term."
Section 2. Section 93.15.10 is added to the Palm Springs Municipal Code to
read:
93.15.10 Condominium Hotels
A. Purpose.
The specific purposes of this Section are to implement General Plan goals
and policies; to provide sufficient hotel rooms to support the use of the City's convention
and conference center facilities; to protect the residential housing supply; to assure that
Condominium Hotel projects are conditioned upon development approval in such a way
as to ensure appropriate public health, safety, welfare and land use classifications and
standards; to mitigate potential impacts of Condominium Hotels on traffic congestion,
parks, and recreation, air quality, building design and safety, police, fire and emergency
services; to assure the provision of other adequate public facilities; to provide hotel and
resort hotel developers flexibility in the financing of new hotel and resort hotel projects;
to prohibit conversion of existing hotels and resort hotels to Condominium Hotels; and to
provide the City with appropriate regulation of licensing, taxation, operation, and
ownership.
B. Zones in Which Condominium Hotels are Permitted; Planned
Development District Application Required.
A Condominium Hotel shall be permissible only in such zones and at such
locations therein where a hotel use or resort hotel use would be permitted. Before an
application for a Condominium Hotel may be approved, a Planned Development District
application shall be prepared and adopted for the property on which the Condominium
Hotel will be located and shall include a comprehensive land use plan that complies with
the goals and policies of the General Plan and the requirements of this Section. The
Planned Development District application shall include such components and elements
necessary or appropriate to ensure the provision of services and improvements and the
payment of fees, charges, and/or assessments to offset any negative or adverse
financial or fiscal effects on the City or the City's ability to provide services to the
project, neighboring properties, and the City as a whole. In approving a Planned
3/11/2008 00000 2
565021.1
Development District for a Condominium Hotel, the Planning Commission may impose
reasonable conditions of approval. A Tentative Tract Map may also be submitted for
approval with the Planned Development District application-
C. Findings Required.
In approving a Planned Development District for a Condominium Hotel,
the Planning Commission shall make the following findings:
1. CC&Rs and/or other documents satisfactory to the Director of
Planning Services and City Attorney will be recorded to ensure the
long term maintenance and operation of the Condominium Hotel in
accordance with this Chapter and the terms of any permits or
approvals issued for the Condominium Hotel and to provide notice
to future purchasers of the City's right to enforce the CC&Rs and/or
other documents, this Chapter, and the terms of any permits or
approvals issued for the Condo-Hotel.
2. The proposed Condominium Hotel does not involve the conversion
or the replacement of a hotel, resort hotel, or hotel or resort hotel
units, constructed on or before July 1, 2007_
D. Condominium Hotel Regulations.
It is the intent of this Section to ensure that Condominium Hotels are
operated and governed in substantially the same manner as hotels and or resort hotels.
The provisions of this Section are designed to protect and preserve the density
requirements mandated in districts where hotels and resort hotels are allowed, as well
as preserving future land uses for short term transient accommodations made available
to the general public, visitors, and tourists. The regulations in this Section are intended
to ensure that the land use and business operation of Condominium Hotels remain an
exclusively commercial enterprise. The provisions of this Section are in addition to the
regulations relating to hotel or resort hotel development found elsewhere in the Zoning
Code.
1. All units in a Condominium Hotel may be used only for Short Term
Transient accommodations.
2. Licensing will be required of all Condominium Hotels through all applicable
state and local agencies. All licenses must be kept current.
3. A unified management operation shall be required as an integral park of
the Condominium Hotel for all activities.
4. There shall be a lobby/front desk area where all guests and Condo Hotel
Unit owners must register with the hotel Operator upon arrival and
departure, as in a hotel or resort hotel.
5. There shall be a uniform key entry system operated by the Condominium
Hotel Manager to receive and disburse keys for each Condominium Hotel
Unit.
3/11/2008 0000.86 3
565011 1
6. There must be one central telephone system operated by the
Condominium Hotel Manager in order to access each Condominium Hotel
Unit.
7. All Condo Hotel Units shall be subject to the provisions of Chapter 328 of
the Palm Springs Municipal Code relating to the imposition and collection
of transient occupancy taxes. Each Condo Hotel Owner that allows the
rental of his Condo Hotel Unit, either individually, through a rental agent,
or through participation in a rental program, is subject to the provisions of
Chapter 3.28 of the Palm Springs Municipal Code. The per diem
Transient Occupancy Tax constitutes a lien by the City of Palm Springs
and the City has the right but not the duty to foreclose on a Condo Hotel
Unit for non-payment of taxes due.
8. Use of a Condo Hotel Unit arising out of an exchange program with an
affiliated hotel property or the redemption of brand-related rewards or
loyalty points shall be subject to transient occupancy tax per Municipal
Code Chapter 3.28 based on the equivalent daily rental value for that
room exchanged free of charge or otherwise reduced in the program.
Such use shall not be considered personal use by the Condo-Hotel
Owner.
9. Condo Hotel Units shall not be used for homesteading purposes, home
occupational licensing, voter registration or vehicle registration.
10. As a commercial use, Condominium Hotels are to be entitled under the
Hotel land use standards in any zone that allows the development of a
hotel or resort use; included in these standards are density, parking
standards, payment of in-lieu park fees ("Quimby" fees), and assessment
of the public safety Community Facilities District.
11. Nothing in this Ordinance allows for the creation of time-share or fractional
interests in any Condo Hotel Unit.
12. All Condominium Hotels must have approved signage viewable by the
general public designating the property as a hotel or resort hotel.
13. A Condo-Hotel Unit may be used for Personal Use of the Condo-Hotel
Unit Owner. Such Personal Use shall not exceed 75 days in any
consecutive 12 month period nor shall a Condominium Hotel Unit be
occupied by a Condo-Hotel Unit Owner for more than 21 consecutive
days. Owners may delegate their right of use and occupancy directly or
through an exchange program. At all other times, units shall be used for
Short Term Transient occupancy purposes only. If a Condo Hotel Owner
exceeds the 75 days of Personal Use restrictions described in this
Paragraph, the Owner shall be subject to an assessment for each day in
excess thereof payable to the City in an amount as the Council may adopt
and amend by resolution or as may be otherwise addressed as a condition
of approval at the time of the planned development district approval.
14. Each Condo-Hotel Unit Owner, the owners' association, and
Condominium Hotel Manager or any other rental entity shall maintain and
regularly make available to City such information, books, records, and
documentation, and also shall allow reasonable access to individual units,
3/11/2008 000OG? 4
565021 1
as the City finds necessary to have or review in order to ensure that City
may determine the Condominium Hotel's compliance with this Chapter
and other applicable City laws, regulations, project conditions, and
mitigation measures. The original and every subsequent Condominium
Hotel Manager or other rental entity renting Condo-Hotel Units shall
immediately advise the Director of Planning Services of its name,
qualifications, address, telephone number, and the name of a contact
person.
15. Any change or amendment to the CC &Rs shall require the approval of the
Palm Springs City Council.
16. An owners' association shall be established to govern, maintain, and
operate the Condominium Hotel and its services including but not limited
to housekeeping for all public areas (including lobby and hallways), front
desk, concierge services, and other hospitality services as provided in a
hotel or resort hotel and in accordance with CC&Rs satisfactory to the
City. The CC&Rs, as well as other relevant documents, shall require all
portions of the Condo-Hotel including, but not limited to, landscape and
open space areas; lobby; hallways; parking; banquet/ballroom facilities;
conference; restaurant; retail; parking; recreational; and spa facilities; and
other amenities and improvements (collectively "amenities"), as well as the
individual Condominium Hotel units, their furniture, fixtures, equipment, to
be maintained and operated in accordance with First Class Hotel
Standard.
17. The CC&Rs shall require the owners' association to hire a single qualified
professional management entity to maintain and operate the Condo-Hotel.
The initial management entity shall have at least five (5) consecutive years
of experience in the hotel management business in hotels that meet the
First Class Standard and have at lease five other properties (nationally or
internationally) under current management. The City shall be provided
appropriate documentation to demonstrate that the management entity
meets the requirements of this Section. The City Council may modify the
experience standards for the initial management, or any subsequent
management entity upon finding that the management entity has
substitute experience meeting the interests served by the standards. The
CC&Rs shall give the owner's association and management entity the
right, power, and obligation to enforce the First Class Standard including,
without limitation, the right to enter any portion of the Condominium Hotel,
including individual Condo-Hotel units, and cure any failure to meet the
First Class Standard. The management entity shall offer transient rental
services to all Condo-Hotel Unit Owners.
18. The CC&R's shall give the Condominium Hotel Manager the exclusive
right to provide to the Condominium Hotel, the property, and to Unit
Owners, lessees, and other occupants, any or all "on property" services
commonly provided at First Class Hotels, restaurants, and resorts,
including without limitation, reservation programs, maid and housekeeping
services, maintenance, laundry and dry cleaning, room service, catering
3/11/2008 000098 5
565021 1
and other food and beverage services, massage, and personal training
and other spa services. The use of such services, if offered, shall be
conditioned upon payment of such charges or fees as may be imposed on
Unit Owners or hotel guests by the Condominium Hotel manager. The
CC&Rs shall include mandatory and uniform maintenance requirements
for Condo-Hotel Units. The owners' association and its designees shall
have the exclusive right to restrict and control access to any and all
shared facilities within the Condominium Hotel, provided the same does
not restrict a Unit Owner's right of access to its own Unit. The
Condominium Hotel Manager shall monitor and document the use of each
and all of the Hotel Units.
19. All Condominium Hotels must have customary daily maid services, back of
house services, and other hospitality services.
20. In addition to any other prohibition at law, including, without limitation, any
other provision of the Palm Springs Municipal Code or the Zoning Code,
Condominium Hotels and/or Condo-Hotel Units shall not be converted to
any other use without the approval of the City Council.
Section 3, The City Council has, as a result of its consideration and the evidence
presented at hearings on this matter, determined that, as required pursuant to the
California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, that this
Ordinance is an enabling Ordinance that recognizes Condominium Hotels are primarily
a commercial use. This Ordinance allows new Condominium Hotels on property
previously zoned for resort hotel and/or hotel uses and nothing in this Ordinance allows,
permits, or in any way authorizes new or expanded uses beyond those permitted under
those provisions of the Zoning Ordinance in existence at the time of the adoption of this
Ordinance. On the basis of this review, the City Council finds that there is no evidence
from which it can be fairly argued that the approval of this Ordinance will have a
significant adverse effect on the environment.
Section 4. 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 AND ADOPTED THIS DAY OF 2008.
AYES:
NOES:
ABSTAIN:
ABSENT:
STEVE POUGNET, MAYOR
3/11/2008 000009 6
565021 1
ATTEST:
City Clerk
APPROVED AS TO FORM
City Attorney
3/11/2008 QOQa Q 7
565021 1
CERTIFICATION:
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do hereby
certify that Ordinance No. is a full, true, and correct copy, and was introduced at a
regular meeting of the Palm Springs City Council on and adopted at a
regular meeting of the City Council held on by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California
3/11/2008 0000-i, 8
565021.1
AGUA CALIENTE BAND OF CAHUILLA INDIANS
TRIBAL PLANNING & DEVELOPMENT
February 13, 2008
HAND DELIVERED
Mayor Steve Pougnet and City Council
CITY OF PALM SPRINGS
3200 Tahquitz Canyon Way
Palm Springs, California 92262
RE: Case No. 5.1172, Zoning Ordinance Amendment to Establish Land Use
Regulations for Condominium Hotel Projects
Dear Mayor and City Council,
The Tribal Council of the Agua Caliente Band of Cahuilla Indians reviewed the above
referenced amendment at its meeting of February 12, 2008, and recommends approval of the
amendment to the City Council.
Please contact me should you have any questions at 760-883-1326.
Very truly yours,
Margaret E. Park, AICP
Director of Planning & Natural Resources
AGUA CALIENTE BAND
OF CAHUILLA INDIANS
MP/dd
C: Tribal Council
Max Ross, Chief Financial Officer
Tom Davis, Chief Planning & Development Officer
Craig Ewing, Director of Planning Services, City of Palm Springs
777 EAST TAHQUITZ CANYON WAY, SUITE 301 , PALM SPRINGS, GA 92262
T 760/325/3400 F 7E0/325/6952 AGUACALIENTE.ORG 000022
City of Palm Springs
Planning Commission Minutes
of January 23, 2008
ase 3,3167 MAJ (Rosa Gardens) - An application by Desert Highland
As tes, LP, to construct a two-story, 59-unit affordable apartment
complex . approximately 4.54 acres at the northwest corner
of McCarthy Ro3d-and Radio Road, Zone R-2, APN: 669-420-009. (Project
Planner: Christopher &OWnr,Contract Planner)
Staff requested this item be continued to an ndee ii it�,i�ate.
Chair Marantz opened the Public Hearing. There being nc�a'pp Laances the Public
Hearing was continued to an indefinite date.
�rair Hoeha�a eh krefr-6mF} ar�Ninue-,iver-indefrRite dater
7. Case 5.1172 - An application by the City of Palm Springs to amend the
Zoning Ordinance to add Section 93.15.10 and amend Section 91,00.10 of
the Palm Springs Municipal Code, relating to the establishment of land use
regulations for condominium hotel projects. (Project Planner: Craig A.
Ewing, Director of Planning Services)
Mr. Ewing provided background information as outlined in the staff report dated January
23, 2008. Mr. Ewing reported that the City Attorney has concluded that specific controls
are needed and has prepared a draft zoning text amendment.
The Commission discussed the assessment of Transient Occupancy Taxes and the 28
consecutive day stay by the Condominium Hotel owner
Chair Marantz opened the Public Hearing. There being no appearances, the Public
Hearing was closed.
M/S/C (Ringlein/Caffery, 6-0) To recommend approval to the City Council, subject to
Conditions of Approval.
OINK---
�mmittee Assignments
Mr. Ewing provided an upd tea on-tlaordinance for office uses on the first floor in the
downtown area. Staff reported that the C two cLL it will be meeting tonight to conduct
interviews for the Planning Commissioner vacancy' �`
5
RESOLUTION NO. 7112
OF THE PLANNING COMMISSION OF THE CITY OF PALM
SPRINGS, CALIFORNIA, RECOMMENDING THAT THE
CITY COUNCIL ADD SECTION 93.15.10 TO, AND
AMENDING SECTION 91.00.10 OF THE PALM SPRINGS
ZONING CODE RELATING TO THE ESTABLISHMENT OF
LAND USE REGULATIONS FOR CONDOMINIUM HOTELS
WHEREAS, on October 3, 2007, the City Council voted unanimously to direct staff to
initiate a Zoning Ordinance Text Amendment (Case No. 5.1172) to consider how
regulate condominium hotels to assure that these projects function as proposed; and
WHEREAS, on January 23, 2008, 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 applicable future project; and that
there is no possibility that the proposed amendments could have a significant effect on
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 for the considered evaluation of fiscal, physical, environmental and
other effects of condominium hotels within the City,
b. Provide an opportunity for adjacent property owners, residents and tenants to
review and comment on the establishment of condominium hotels in their
neighborhood, and
c. Assure that condominium hotels may be successfully established to further
the economic and touristic needs of the community.
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 appropriate review of site-specific effects of condominium hotels, and will protect
neighborhoods while allowing for the growth and support of the tourist industry needs of
the community.
000014
Planning Commission Resolution No.7112 January 23,2008
5.1172—ZTA Page 2 of 2
Section 3: Based upon the foregoing, the Planning Commission does hereby
recommend to the City Council amendment of the Palm Springs Zoning Code to
establish land use regulations for condominium hotels, as described in the draft
ordinance, attached hereto and made a part of this resolution as Exhibit A.
ADOPTED this 23rd day of January, 2008.
AYES: Ringlein, Caffery, Marantz, Hochanadel, Cohen and Scott
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
' A wing, P
DirbtTor of PI ni g Services
000015
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tOR PLANNING COMMISSION STAFF REPORT
Date: January 23, 2008
Case No.: 5.1172
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 Land Use
Regulations for Condominium Hotel Project
PROJECT DESCRIPTION
The project is an amendment to the Palm Springs Zoning Code regarding the standards
and regulations for the development of Condominium Hotels. A public hearing is
required.
RECOMMENDATION
That the Planning Commission conduct a public hearing and forward to the City Council
its recommendation for regulating condominium hotel projects. A draft resolution and
Zoning Text Amendment ordinance are attached.
PRIOR ACTIONS
On October 3, 2007, the City Council reviewed a draft ordinance and initiated a zone
text amendment regarding the establishment of regulations for condominium hotel
projects.
000016
Planning Commission Staff Rep • January 23, 2008
Case No.5.1172- Zone Text Amendment—Regulation of Condominium Hotels Page 2 of 2
BACKGROUND AND ANALYSIS
As noted in the attached City Council staff report (October 3, 2007) the City has recently
approved two major hotel projects that include condominium ownership of individual
room units (Mondrian and Hard Rock). Other hotel projects with similar condominium
ownership are anticipated. To address the unique attributes of this type of resort, the
City Attorney has concluded that specific controls are needed in the zoning ordinance
and has prepared a draft zoning text amendment.
In summary, the proposed ordinance would require the following for condominium
hotels:
- Approval of a Planned Development District
- Limitation on the time an owner may occupy a unit (28 continuous days per year)
- Unified management of the property as a hotel
Single lobby for guests and owners
- Payment of transient occupancy tax (TOT)
- A Homeowners Association (HOA), and the recordation of appropriate
Conditions, Covenants and Restrictions (CC&R's)
- Daily maid service and regular "back-of-house" services for all units.
- City Council approval for any change of use.
The Commission may consider other options or issues and the City Attorney will be
present at the meeting to answer questions.
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 amendment is 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.
I wing AI
Dir&& of Plan on Services
cc: Draft Planning Commission Resolution
Draft Zone Text Amendment Ordinance — Regulations for Condominium Hotels
City Council Staff Report (October 3, 2007)
o0Qarl7
RESOLUTION NO.
OF THE PLANNING COMMISSION OF THE CITY OF PALM
SPRINGS, CALIFORNIA, RECOMMENDING THAT THE
CITY COUNCIL ADD SECTION 93.16.10 TO, AND
AMENDING SECTION 91.00.10 OF THE PALM SPRINGS
ZONING CODE RELATING TO THE ESTABLISHMENT OF
LAND USE REGULATIONS FOR CONDOMINIUM HOTELS
WHEREAS, on October 3, 2007, the City Council voted unanimously to direct staff to
initiate a Zoning Ordinance Text Amendment (Case No. 5.1172) to consider how
regulate condominium hotels to assure that these projects function as proposed; and
WHEREAS, on January 23, 2008, 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 applicable future project; and that
there is no possibility that the proposed amendments could have a significant effect on
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 for the considered evaluation of fiscal, physical, environmental and
other effects of condominium hotels within the City,
b. Provide an opportunity for adjacent property owners, residents and tenants to
review and comment on the establishment of condominium hotels in their
neighborhood, and
C. Assure that condominium hotels may be successfully established to further
the economic and touristic needs of the community.
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 appropriate review of site-specific effects of condominium hotels, and will protect
neighborhoods while allowing for the growth and support of the tourist industry needs of
the community.
oaao�$
Planning Commission Resolution January 23,2008
5.1172—ZTA Page 2 of 2
Section 3: Based upon the foregoing, the Planning Commission does hereby
recommend to the City Council amendment of the Palm Springs Zoning Code to
establish land use regulations for condominium hotels, as described in the draft
ordinance, attached hereto and made a part of this resolution as Exhibit A.
ADOPTED this_ day of January, 2008.
AYES:
NOES:
ABSENT:
ABSTAIN-
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
Craig A. Ewing, AICP
Director of Planning Services
000019
(Draft— 11/19/2007)
ORDINANCE NO.
AN ORDINANCE OF CITY OF PALM SPRINGS, CALIFORNIA, ADDING
SECTION 93.15.10 TO, AND AMENDING SECTION 91.00.10 OF, THE
PALM SPRINGS MUNICIPAL CODE, RELATING TO THE
ESTABLISHMENT OF LAND USE REGULATIONS FOR CONDOMINIUM
HOTELS.
CityAttorney's Summary
This Ordinance establishes a regulatory program for the review and
approval of Condominium Hotels in the City.
The City Council of the City of Palm Springs ordains:
Section 1. Section 91.00.10 is amended to add the following as new terms, in
alphabetical order, with the following definitions:
"Condominium Hotel," "Condo-Hotel" means a facility which is operated as a
Hotel containing Housing Units, which are individually owned and are available for
Short-Term Transient use, as short-term vacation or tourist rentals, when not being
used by the Unit Owner.
"Condominium Hotel Units," Condo-Hotel Units," "Units" means any Housing Unit
within a Condominium Hotel that is intended for transient use and is limited in its stay
and use, and where its occupancy is subject to the provisions of the City's Transient
Occupancy Tax. A Condominium Hotel Unit is primarily commercial use. A
Condominium Hotel Unit may not be considered a permanent residence. All
Condominium Hotel Units shall be completely furnished to the standards established by
the Condominium Hotel Manager.
"Condominium Hotel Operator," Condo-Hotel Operator," "Operator" means the
owner of portions of a Condominium Hotel, which do not constitute individually owned
Condominium Hotel Units, which operates a hotel within the Condominium Hotel and
which may retain a Condominium Hotel Manager to operate the hotel within a
Condominium Hotel.
"Condominium Hotel Unit Owner," "Condo-Hotel Unit Owner," "Owner" means an
individual, group of individuals, or other entity that acquires any ownership interest in,
and holds title to, one or more Condominium Hotel Units.
"Condominium Hotel Manager," Condo-Hotel Manager," "Manager" means a
professional Condominium Hotel Manager retained to maintain and operate the
Condominium Hotel.
1
000020
"First Class Hotel Standard" means a standard of physical features and
operational services for a hotel or resort hotel that meets or exceeds the criteria
established for the American Automobile Association ("Association") "four-diamond" or
"four-star" properties. Should this Association cease to exist or to publish physical and/or
operational standards for hotels, or where otherwise necessary to further the purposes
of this Chapter, the Director of Planning Services may utilize a similar set of standards
that the Director finds will meet the intent of this definition. The First Class Hotel
Standards shall include, without limitation, operation of the hotel or resort hotel on a
twenty-four (24) hour per day/seven day a week basis, with sufficient room service,
housekeeping (including housekeeping of the individual units), food and beverage,
banquet, meeting, concierge, bellman, and parking services. A Furniture, Fixtures, and
Equipment Reserve Account shall be established and maintained to periodically replace
the furniture, fixtures, and equipment within the Units to maintain the First Class Hotel
Standard of the Condominium Hotel.
"Personal Use" means the use or occupancy of a Condominium Hotel Unit
Owner by an Owner, or by a guest of a Condominium Hotel Unit Owner, or when a
guest of a Condominium Hotel Unit Owner does not rent and pay for a Condominium
Hotel Unit through the Condominium Hotel Manager or entity approved by the City
pursuant to Section 93.15.10, provided, however, that no provision herein shall be
deemed to permit a timeshare, fractional, or other vacation ownership unit,
"Transient Occupant", Short-Term Occupant" means a person who is receiving
accommodations for a price, with or without meals, for a period of not more than twenty-
eight (28) consecutive days in any one (1) year, as described in Chapter 3.28 of the
Palm Springs Municipal Code.
"Short-Term Transient" means the same as "Transient Occupant, Short-Term
Occupant."
Section 2. Section 93.15.10 is added to the Palm Springs Municipal Code to
read:
93.15.10 Condominium Hotels
A. Purpose.
The specific purposes of this Section are to implement General Plan goals
and policies; to provide sufficient hotel rooms to support the use of the City's convention
and conference center facilities; to assure that Condominium Hotels are conditioned
upon development approval in such a way as to ensure appropriate public health,
safety, welfare, and land use classifications and standards; to assure the provision of
other adequate public facilities; to provide hotel and resort hotel developers 'Flexibility in
the financing of new hotel and resort hotel projects; to prohibit conversion of existing
2
000021
hotels and resort hotels to Condominium Hotels; and to provide the City with
appropriate regulation of licensing, taxation, operation, and ownership.
B. Zones in Which Condominium Hotels are Permitted; Planned
Development District Application Required.
A Condominium Hotel shall be permissible only in such zones and at such
locations therein where a hotel use or resort hotel use is permitted. Before an
application for a Condominium Hotel may be approved, a Planned Development District
application shall be prepared and submitted for the property on which the Condominium
Hotel will be located and shall include a comprehensive land use plan that complies with
the goals and policies of the General Plan and the requirements of this Section. The
Planned Development District application shall include such components and elements
necessary or appropriate to ensure the provision of services and improvements and the
payment of all applicable fees, charges, and/or assessments. In approving a Planned
Development District for a Condominium Hotel, the Planning Commission may impose
reasonable conditions of approval.
C. Findings Required.
In approving a Planned Development District for a Condominium Hotel,
the Planning Commission shall make the following findings:
1. Covenants, Conditions, and Regulations (CC&Rs) and/or other
documents satisfactory to the Director of Planning Services and the
City Attorney will be recorded to ensure the long-term maintenance
and operation of the Condominium Hotel in accordance with this
Chapter and the terms of any permits or approvals issued for the
Condominium Hotel and to provide notice to future purchasers of
the City's right to enforce the CC&Rs and/or other documents, this
Chapter, and the terms of any permits or approvals issued for the
Condominium Hotel.
2. The proposed Condominium Hotel does not involve the conversion
or the replacement of a hotel, resort hotel, or hotel or resort hotel
units, constructed on or before July 1, 2007.
D. Condominium Hotel Regulations.
It is the intent of this Section to ensure that Condominium Hotels are
operated and governed in substantially the same manner as hotels and or resort hotels.
The provisions of this Section are designed to protect and preserve the density
requirements mandated in districts where hotels and resort hotels are allowed, as well
as preserving future land uses for short-term transient accommodations made available
to the general public, visitors, and tourists. The regulations in this Section are intended
3
000022
PROOF OF PUBLICATION This is space for County Clerk's Filing Stamp
(2015.5.C.C.P)
Flo.0e95 ---- - --- - - - -
NOTICE OF PUBLIC HEARING it
CITY COUNCIL
CITY OF PALM SPRINGS
STATE OF CALIFORNIA CASE 5.1172—APPLICATION SY THE CITY OF PALM
County of Riverside SPRINGS FOR A ZONING ORDINANCE AMENDMENT
TO ESTABLISH LAND USE REGULATIONS FOR
CONDOMINIUM HOTEL PROJECTS
NOTICE IS HEREBY GIVEN that the City Council of the City of
Palm Springs, California, will hold a public hearing at its meeting
{{{ of March 19,2008. The City Council meeting begins at 6:00 p.m.
I am a citizen of the United States and a resident of in the Council camber at City Hall, 9200 East Tahquitz Canyon
the County aforesaid;1 am over the age of eighteen Way,Palm Srpnngs.
years,and not a party to or interested in the The purpose of the hearing is to consider Case 5-1172,an apph-
abov"atitled matter.1 am the principal clerk of a cation by the City of Palm Springs to amend the Zoning Ordinance
printer of the,DESERT SUN PUBLISMNG by adding Sectlon 93,15.10 to,and amending Section 91-00.10 of
COMPANY a newspaper of general circulation, the Palm Springs Municipal Code,relating to the establishment of
printed and published in the city of Palm Springs, I land use regulations for condominium hotel projects.
County of Riverside,and which newspaper has been ENVIRONMENTAL DETERMINATION: The City of Palm Springs,
adjudged a newspaper of general circulation by the in its capacity as the lead agency for this project, under the
Superior Court of the County of Riverside,State of California Environmental Quality Act (CEQA) evaluated the
California under the date of March 24,1988.Case potential environmental Impacts of the project and determined that
Number 191236;that the notice,of which the the proposed Zoning Ordinance text amendments are exempt d
annexed is a printed copy(set in type not smaller ( pursuant to the "General Rule" [Section 15061(b)(3)] that CEQA
than non panel,has been published in each rcgular I applies only to projects that have the potential to cause a
and entire issue of Said newspaper and not in any { significant impact on the environment.The proposed amendments
supplement thereof on the following dates,to wit: I are process-oriented,requiring additional levels of review through
I the permit process for each applioable future project. .
March 8a',2008 Consequently, there is no possibility that the proposed
n amendments
have necessary.been
found to be exempt; therefore, no
The
environmental amendments could have a significant effect on the environment.
1�
��• - •— � REVIEW OF PROJECT INFORMATION:The staff report and other
All in the year 2008 i
y � supporting documents regarding this project are also available for {
I public review at City Hall between the hours of 8:00 a.m.and 5:00
1 certify(or declare)under penalty of perjury that the ¢ p.m.,Monday through Friday. Please contact the Office of the City
foregoing is true and correct. Clerk(760)323-8204 If you would like to schedule an appointment i
to review these,documents.
Dated at Palm Springs,California this----13°", —•day i COMMENT ON THIS APPLICATION:..Response to this notice
9 may be made verbally at the public hearing and/or in writing before
of------- arch ------- —,Z008 the hearing. -Written comments may be made to the City Council
by letter(mail or hand delivery)to:
- • -__ James Thompson, City Clerk I
3200 East Tahquitz Canyon Way
,m
` =L.-.....-----_---_--_--_--•..,.--------- _ � Palm Springs,CA 92262
�Cr qi 6 Signature
�4 Any challenge of the proposed project In court may be limited to F
W`n = s.0 p raising only those issues raised at the public hearing described in r
>" O� P this notice,or in written correspondence delivered to the City Clerk
caJl� r- tiU , at, or pnor to, the public hearing. (Government Code Section
v� 65009[b][2]1•
to ��n •/p An opportunity will be given at said hearings for all interested
C •fir'-i '°'� V 1d persons to be heard. Questions regarding this case may be
7— m c,, directed to Craig A.Ewing,Director,Planning Services Department
at (760)323-8245,
N
Si necesita ayuda con esta Carta, poKavOr Ilame a Is Ciudad de
Palm Springs y puede hablar con Nadine Fieger(760)323-8364.
Published:3/8/08 James Thompson,City Clerk
CITY OF PALM SPRINGS
PUBLIC HEARING NOTIFICATION
r_r
CITY CLERK'S DEPARTMENT
James Thompson, City Clerk
City Council
Meeting Date: March 19, 2008
Subject: CASE 5.1172 - APPLICATION BY THE CITY OF PALM SPRINGS
FOR A ZONING ORDINANCE AMENDMENT TO ESTABLISH LAND
USE REGULATIONS FOR CONDOMINIUM HOTEL PROJECTS
AFFIDAVIT OF MAILING
I, Kathie Hart, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do
hereby certify that a copy of the attached Notice of Public Hearing was mailed to each and
every person on the attached list on or before March 6, 2008, in a sealed envelope, with
postage prepaid, and depositing same in the U.S. Mail at Palm Springs, California.
(4 notices)
I deccllareeu under penalty of perjury that the foregoing is true and correct.
lNOArp
Kathie Hart, CMC
Chief Deputy City Clerk
AFFIDAVIT OF PUBLICATION
I, Kathie Hart, CMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do
hereby certify that a copy of the attached Notice of Public Hearing was published in the
Desert Sun on March 8, 2008.
1 declare under penalty of perjury that the foregoing is true and correct.
W4a
Kathie Hart, CMC
Chief Deputy City Clerk
AFFIDAVIT OF POSTING
I, Dolores Strickstein, Secretary, of the City of Palm Springs, California, do hereby certify
that a copy of the attached Notice of Public Hearing was posted at City Hall, 3200 E.
Tahquitz Canyon Drive, on the exterior legal notice posting board and in the Office of the
City Clerk on or before March 7, 2008.
Ide�cla�re under penalty of perjury that the foregoing is true and correct.
Dolores Stricks ein, Secretary U Q p 0 2P
NEIGHBORHOO❑COALITION REPS MR PETE MORUZZI
Case 5.1172 ZTA MODCOM AND PALM SPRINGS MODERN COMMITTEE
Zoning Amendment-Condo Hotel HISTORIC SITE REP 1 1 1 PO BOX 4738
PHN for CC Meeting 03.19.08 PALM SPRINGS CA 92263-4738
CITY OF PALM SPRINGS
PLANNING SERVICES DEPARTMENT CASE 5.1172 ZTA
VERIFICATION NOTICE I I I ATTN SECRETARY MRS.JOANNE BRUGGEMANS
PO BOX 2743 506 W. SANTA CATALINA ROAD
PALM SPRINGS, CA 92263-2743 PALM SPRINGS, CA 92262
MS MARGARET PARK
AGUA CALIENTE BAND OF CAHUILLA
AGUA CALIENTE BAND OF CAHUILLA INDIANS
INDIANS I I 1 I 1 1 777 E.TAHQUITZ CANYON WAY,#301
PALM SPRINGS CA 92262
SPONSORS
NOTICE OF PUBLIC HEARING
CITY COUNCIL
CITY OF PALM SPRINGS
CASE 5.1172 —APPLICATION BY THE CITY OF PALM SPRINGS
FOR A ZONING ORDINANCE AMENDMENT TO ESTABLISH LAND USE
REGULATIONS FOR CONDOMINIUM HOTEL PROJECTS
NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs, California, will hold a
public hearing at its meeting of March 19, 2008. The City Council meeting begins at 6:00 p.m. in the
Council Chamber at City Hall, 3200 East Tahquitz Canyon Way, Palm Springs.
The purpose of the hearing is to consider Case 5.1172, an application by the City of Palm Springs to
amend the Zoning Ordinance by adding Section 93.15.10 to, and amending Section 91.00.10 of the
Palm Springs Municipal Code, relating to the establishment of land use regulations for condominium
hotel projects.
ENVIRONMENTAL DETERMINATION: The City of Palm Springs, in its capacity as the lead agency
for this project, under the California Environmental Quality Act (CEQA) evaluated the potential
environmental impacts of the project and determined that the proposed Zoning Ordinance text
amendments are 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. The amendments have been found
to be exempt; therefore, no environmental review is necessary.
REVIEW OF PROJECT INFORMATION: The staff report and other supporting documents regarding
this project are also available for public review at City Hall between the hours of 8.00 a.m- and 5:00
p.m., Monday through Friday. Please contact the Office of the City Clerk (760) 323-8204 if you would
like to schedule an appointment to review these documents.
COMMENT ON THIS APPLICATION: Response to this notice may be made verbally at the public
hearing and/or in writing before the hearing. Written comments may be made to the City Council by
letter (mail or hand delivery) to:
James Thompson, City Clerk
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262
Any challenge of the proposed project in court may be limited to raising only those issues raised at
the public hearing described in this notice, or in written correspondence delivered to the City Clerk at,
or prior to, the public hearing. (Government Code Section 65009[b][2]).
An opportunity will be given at said hearings for all interested persons to be heard- Questions
regarding this case may be directed to Craig A. Ewing, Director, Planning Services-Department at
(760) 323-8245.
Si necesita ayuda con esta carta, porfavor Ilame a la Ciudad de Palm Springs .y.puede hablar cL-m
Nadine Fieger (760) 323-8364.
es Thompson, City Clerk
000024