Loading...
HomeMy WebLinkAbout12/12/2007 - STAFF REPORTS - 2.L. �o pALM Spy Z u n w� °nooe.e cRLIFOSN,P• Qty Council Staff Rego DATE: DECEMBER 12, 2007 CONSENT CALENDAR SUBJECT: INITRODUCTION OF 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 MUNICIPAL CODE, RELATING TO THE ESTABLISHMENT OF LAND USE REGULATIONS FOR CONDOMINIUM HOTEL PROJECTS, AND REFERRING THE ORDINANCE TO THE PLANNING COMMISSION FOR REVIEW AND RECOMMENDATION FROM: David H. Ready, City Manager BY: Community and Economic Development Department SUMMARY Several projects have recently been proposed in Palm Springs that use a Condominium Hotel structure to finance all or part of resort hotel development, including a portion of the Mondrian Hotel and potentially all or a portion of the hotel proposed at The Trails development. The City needs to create a regulatory framework to ensure these projects function as proposed, as hotels, and provide the City with appropriate regulation of licensing, taxation, operation, and ownership. This Ordinance creates a structure under which developers can market the units for sale, but which the operation of the hotel meets the City's goals and policies. These goals include providing sufficient hotel rooms to support the use of the City's Convention Center; protecting the residential housing supply; and assuring that Condominium Hotel projects are conditioned upon development approval to ensure appropriate public health, safety, welfare and land use classifications and standards. In the end, the Ordinance needs to be flexible enough to provide hotel and resort hotel developers flexibility in the financing of new Condominium Hotel projects while upholding the City's goals. Of special note and in continuing furtherance of City Council policy, is that the Ordinance also prohibits conversion of existing hotels and resort hotels to Condominium Hotels. Item 2 . L . City Council Staff Report (December 12, 2007)--Page 2 (Ordinance No. ) Under the City's Code, Zoning Text Amendments can only be initiated by the Planning Commission or the City Council. This action initiates the process, then refers the ordinance to the Planning Commission for review before returning to the Council for final action. RECOMMENDATION: 1. "INITRODUCE AND REFER TO THE PLANNING COMMISSION FOR REVIEW AND RECOMMENDATION, 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 MUNICIPAL CODE, RELATING TO THE ESTABLISHMENT OF LAND USE REGULATIONS FOR CONDOMINIUM HOTEL PROJECTS." FISCAL IMPACT: No fiscal impact.. `�Y1 John Ray o d, omas J. Wilson or of C munity and Economic Development Assistant City Manager David H. Ready, City M� er Attachments: 1. Ordinance No. 00000w (Draft— 11/16/2007) 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 HOTEL PROJECTS. City Attorney's Summary This ordinance establishes a regulatory 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 Project," "Condo-Hotel Project" means a project which is operated as a Hotel, containing individually owned Units. Units within a Hotel, which Housing Units 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 occupancy is subject to the provisions of the City's Transient Occupancy Tax. A Condominium Hotel Unit is primarily a commercial use and is not considered a residential property and therefore may not be considered a permanent residence. All Condominium Hotel Units shall be completely furnished with furniture and appliances to the standards established by qualified Condominium Hotel Manager. A furniture, fixtures and equipment reserve account shall be established and maintained in order to maintain and, when necessary, replace the furniture, fixtures and equipment within the Units to maintain the facility in its First Class Hotel standard. "Condominium Hotel Operator," Condo-Hotel Operator," "Operator" means the owner of portions of a Condominium Hotel Project which do not constitute individually owned Condominium Hotel Units, which operates a hotel within the Condominium Hotel Project, and which may retain a Condominium Hotel Manager to operate a hotel within the Condominium Hotel Project. "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. 1 OO0003 549861 1 "Condominium Hotel Manager," Condo-Hotel Manager," "Manager" means a professional Condominium Hotel Manager retained to maintain and operate the Condominium Hotel Project. "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 Condo Hotel Unit Owner, or by a guest of a Condo Hotel Unit Owner, or when a guest of a Condo Hotel 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 other vacation 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) 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, 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 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 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. 000W 548861 1 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 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 primarily a commercial enterprise. The provisions of this Section are in addition to the ODDDu�� 548861 1 regulations relating to hotel or resort hotel development found elsewhere in the Zoning Code- 1. All units in a Condominium Hotel Project shall be subject to Short Term Transient accommodations limitations on use, meaning that outside of personal use by owners of Condominium Hotel Units, a Condominium Hotel Unit shall be made available for transient occupancy purposes for no more than twenty-eight (28) consecutive days by any given transient user. 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 part of the Condominium Hotel for all activities. 4. There shall be a lobby/front desk area where all guests and Condominium Hotel Unit owners must register 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. 6. There must be one central telephone system operated by the Condominium Hotel Manager which may provide access to each Condominium Hotel Unit. 7. All Condominium Hotel Units shall be subject to the provisions of Chapter 3.28 of the Palm Springs Municipal Code relating to the imposition and collection of transient occupancy taxes. Each Condo Hotel Unit 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, but not the Condominium Hotel Project, 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 Unit 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 Hotel Projects 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), school fees, and assessment of the public safety Community Facilities District. 54v$61 1 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 may not exceed 75 days per calendar year (unless otherwise permitted pursuant to a Development Agreement with the City of Palm Springs, but in any event not to exceed 75 days per calendar year) nor shall a Condominium Hotel Unit be occupied by a Condo Hotel Unit Owner for more than 28 consecutive days. Owners may use their Personal Use time for themselves or their guests, or may delegate their Personal Use 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 Unit Owner exceeds the 75 days of Personal Use restrictions described in this Ordinance, the Owner shall be subject to an assessment of $25 per day payable to the City as though it was a Short Term Transient Use pursuant to Chapter 3.28 of the Palm Springs Municipal Code. 14. Each Condo-Hotel Unit Owner, the owners' association, and manager entity shall maintain and regularly make available to City such information, books, records, and documentation, and also shall allow reasonable access to individual units, 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 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 Units and any common area of the Condominium Hotel Project which contains Condominium Hotel Units. The Condominium Hotel Project shall include a plan for maintenance and operation of all public areas (including lobby and hallways), and front desk; and for the provision of concierge services and other hospitality services as provided in a hotel or resort hotel, all in accordance with CC&Rs or other agreements or covenants 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/balIroom 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 the minimum of a First Class Hotel Standard. 000007 548861 1 17. The CC&Rs or other relevant documents shall require the Condominium Hotel Project and the owners' association to the Condominium Hotel Units, respectively, to retain a Condominium Hotel Manager to maintain and operate the Condominium Hotel Project, the Condominium Hotel Units, and the common area of the condominium project containing the Condominium Hotel Units. The Condominium Hotel Manager shall be required to 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 least five other properties (nationally or internationally) under current management. The City shall be provided appropriate documentation to demonstrate that the Condominium Hotel Manager meets the requirements of this section. The City Council may modify the experience standards for the Condominium Hotel Manager upon finding that the proposed Condominium Hotel Manager has substitute experience meeting the interests served by the standards. The CC&Rs or other relevant documents shall give the owner's association, any Condominium Hotel Operator and the Condominium Hotel Manager 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 Condominium Hotel Units and cure any failure to meet the First Class Standard, provided, however, that the exercise of all such enforcement rights shall be subject to limitations otherwise imposed by law, and shall provide priority in enforcement to such parties prior to the City's right to enforce. The Condominium Hotel Manager shall offer transient rental services to all Condo-Hotel Unit Owners, subject to the terms and conditions of the rental program_ 18. The CC&Rs or other relevant documents shall give the Condominium Hotel Manager the exclusive right to provide to the Condominium Hotel Project, the property, and to Condominium Hotel 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, check-in and check-out services, maid and housekeeping services, maintenance, laundry and dry cleaning, room service, catering and other food and beverage services, massage, 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 or other relevant documents shall include mandatory and uniform maintenance requirements for the Condominium Hotel Units. The owners' association or Condominium Hotel Operator or their respective designees shall have the exclusive right to restrict and control access to any and all shared facilities within the Condominium Hotel Project, provided the same does not restrict a Unit Owner's right of access to its own Unit. The Condominium Hotel Manager shall require check-in and check-out of all Condominium Hotel Units through a front desk area operated by the Condominium Hotel Manager, and shall collect 000008 5488G1 1 and remit to the City all transient occupancy taxes required on rentals of Condominium Hotel Units; provided, however, that the Condominium Hotel Manager may impose rules and regulations governing check-in and check-out procedures and collection of transient occupancy taxes, and shall not be held liable or responsible for any unpaid TOT amounts, which shall remain the liability and responsibility of the Condominium Hotel Unit Owners. 19. The Condominium Hotel Project must provide 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 Hotel Projects and/or Condo Hotel Units cannot 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 Hotel Projects are primarily a commercial use. This Ordinance allows new Condominium Hotel Projects 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. The City Council hereby certifies and approves this negative declaration and directs that the Notice of Determination be prepared and filed with the County Clerk of the County of Riverside in the manner required by law. 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 2007. AYES: NOES: ABSTAIN: ABSENT: RON ODEN, MAYOR 000009 54SS61 1 ATTEST: City Clerk APPROVED AS TO FORM City Attorney 000010 548861 1 CERTIFICATION: STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) $s. 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 00001 i488G1 I