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HomeMy WebLinkAbout11/7/2007 - STAFF REPORTS - 1.A. RESOLUTION NO. 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, l 1'cerre 1 A Al-�n YYr ! Milt o r(1-1 I Planning Commission Resolution October 24.2007 5.1173—ZTA Page 2 of 2 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 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 A: The Commission also recommends that within two years of its enactment the ordinance be reviewed to determine if revisions are appropriate. ADOPTED this th day of 2006. AYES: NOES: ABSENT: ABSTAIN: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA Planning Commission Chairman Planning Commission Secretary City of Palm Springs Planning Commission Minutes of October 24,2007 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 that the Commission discussed this item at a study session and the consensus was to imposetime-limits- on conditional use permits or land use permits and not to place a ban on office use in the downtown. Ms. Ringlein also would like to see more outreach provided to business owners in the downtown area- Commissioner Cohen concurred with Ms- Ringlein and noted that the public comments that were made at the study session by downtown business owners requested a preference to have these buildings occupied instead of sitting vacant for years. Commissioner Caffery requested staff address a storefront on Palm Canyon with the entrance on a Tahquitz Canyon Way and preferred the verbiage, '" . . . 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 to lease retail space at Plaza Las Flores between Indian Canyon and Palm Canyon Way. There being no further comments, the Public Hearing was closed- Commissioner Ringlein requested staff address what would happen to existing offices. Staff responded that existing legally-established offices would be subject to a grandfather condition. - 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- *F ALM SJO iy ti c+ V N ° OerGa' CITY COUNCIL STAFF REPORT DATE: November 7, 2007 PUBLIC HEARING SUBJECT: CASE NO. 5.1173 — APPLICATION BY THE CITY OF PALM SPRINGS 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. 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. Introduce for first reading 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". 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. ITEM NO. City Council Staff Report Page 2 of 2 5.1173—Zoning Ordinance Amendment—office uses in C-B-0 Zone November 7,2007 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. STAFF ANALYSIS: 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 Planning Commission determined that a prohibition on office uses on Palm Canyon Drive would not be appropriate under the current conditions downtown, and instead recommends that office uses 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. tg tng, AIC Thomas Wilson/Assistant City Manager Direct-or of Planni(!--Syvices David H. Ready,�Ittq vlanager Attachment: 1. Draft Ordinance by City Attorney 2, Draft Ordinance, as recommended by Planning Commission 3. Planning Commission staff report and attachments (dated 10/24/07) 4. Planning Commission meeting minutes (excerpt, dated 915/05) 5. Planning Commission draft resolution and meeting minutes (excerpt, dated 10/24/07) submitted under separate cover 2 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 Attorney-'s-Summary This Ordinance prohibits street level office and financial institutional uses along Palm Canyon Drive between Alejo and Baristo Drives 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 not be permitted, 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: 0. 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, 3 {°4 P A LM S'04 iy 9`'�°" 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 4 Commission and City Council. The ordinance was later extended by Council action. Planning Commission Staff Report October 24, 2007 Case No, 5 1173—Zone Text Amendment—Offices in C-B-O 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. t A. wing API Dir r of Pla in ervices 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) 5 ORDINANCE NO. 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. City Attome 's 5umma This Ordinance prohibits street level office and financial institutional uses along Palm Canyon Drive between Alejo and Barristo Drives 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 not be permitted, 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- 0- Offices (not including contractors) and financial institutions at street level and oriented towards: Tahquitz Canyon Way, between Belardo Road and Indian Canyon 6 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 is repealed. 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. The provisions of this Ordinance shall be in effect only until January 1 2013 and is repealed as of that date unless an ordinance enacted after the effective date of this Ordinance extends or repeals the_provisions of this Ordinance. PASSED, APPROVED, AND ADOPTED this day of 2006. RON ODON, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK APPROVED AS TO FORM: DOUGLAS HOLLAND, CITY ATTORNEY 7 1� u Q Ri +N...,Eo ° �� City Council Staff Report rq�lFOR��p Date: October 3, 2007 From: David H. Ready, City Manager By: Craig A. Ewing, AICP, Director of Planning Services Douglas Holland, City Attorney Subject: Initiate and refer to the Planning Commission for review and recommendation, an Ordinance of the City of Palm Springs, Califomla, 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 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, 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. 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 earisto, as well as all the east-west streets therein: ITEM NO,_.l V 8 City council October 3,2007 Office Uses in the C-B-D zone Pape 2 of 5 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 Any Size Permitted Locations Type of Office C-B-D Zone Outside Historic Village Center 5,000 SF or Less Permitted Street Level 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. 000002 City Council October 3,2007 Once Uses in the C-13-0 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 (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 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. Z 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-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 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 consideration of 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 000003 xo city council October 3,2007 Office Uses In the C•B-D Zone 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. 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 an their own 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: 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, 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. ODDDD4 1 City council octoner 3,1007 Office Uses in the C-B,D Zeno Page 5 of 5 Fiscal Impact: There is no foreseeable fiscal impact on the City of Palm Springs. Douglas . Holland City Attorney ti.� David H. Ready, ger Thomas J. Wils , Assistant City Manager Attachments: 1. Ordinance No. 1713 000005 12 e�,A�MSA, CITY OF PALM SPRINGS c " DEPARTMENT OF PLANNING SERVICES oq<iroaN`�. 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 Any Size Permitted Locations 13 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 5,000 SF or Less Permitted Street Level 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 surrey 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 L le Realtors 483 N Palm Canyon Dr. 2. Northstar Financial 477 N. Palm Canyon Dr. 3, Prudential California Real 388 N. Palm Canyon Dr. 14 Planning Commission Study Session Memo September 5,2007 Office Uses in the C-B-b Zone Page 3 of 5 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 Mortgage 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. Community Caregivers 333. N. Palm Canyon Dr. Unit#118 11, Greater Palm Springs Insurance 333, N. Palm Canyon Dr. Unit #111 12. Bod orks 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-Gar 351 N. Indian Canyon Dr. 15. Bottom Line/Pulp Magazines 312 N. Palm Canyon Dr. 16, Gay Home Loans, Inc. (Split Level 312 N. Palm Canyon Dr. 17. Palm Springs Life Magazine 303 N. Indian Canyon Dr. 18. Realty Executives 285 N. Palm Can on 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. Pro Valley Realty 190 S. Palm Canyon Dr. 29. S er Van Ness 255 S_ Palm Canyon Dr., #A-4 30. Dr. Ray Sumabat, Dentist 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 15 Planning Commission Study Session Memo September 5, 2007 Office Uses in the C-B-t)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-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 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 16 Planning Commission Study Session Memo September 5, 2007 Office Uses in the C-8-1)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: 1. 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 17 City of Palm Springs Planning Commission Study Session Minutes of September 5, 2007 2. DISCUSSION - Office uses on the first floor in the C-B-D zone (Central business district) Craig A. Ewing, Director of Planning Services, provided background information as outlined in the memorandum dated September 5, 2007. Mr.,,�,Wing stated under the current zoning regulations office use on the first floor is alloWodrVvith a land use permit (for office space less than 2,500 square feet) or a conn4i t�ial use permit (for office space more than 2,500 square feet). Mr. Ewing note, tli'at,,2"d floor or space not fronting the street, office use is permitted by right and,," the `o finance is written to try to keep office uses off of street front retail spaces.,�;M% in pram? further details on the differences between a land use permit and wconditional use perritit Mr. Ewing discussed the inventory prepare'dy staff for•the current office°uses in the % ,,...,,, Historic Village Center_ Mr- Ewing stated ttatj,e city'"sultimate desire is to have a vibrant retail oriented downtown, however th6`1-i"rk t does not always meet these objectives and with empty tenant s- Ices an owneXs;.will consider office use. "� W 'If�i�ii hn � Ms_ Ringlein suggested the City inihX�$t; 'a' p[ogr�m to eadcate business owners on the ideal tenant mix and imposing Ocode erl�forue n�ent Y``6 property maintenance, Commissioner Scott not ,' gyer 2/3 0 ;the )iWtilneSseu� fisted are real estate related offices and suggested"r--'Mr)nrtWN condit 0 uniting a type of business to a certain percentage in the n arMr. Evrn responded that it would be difficult for the City to maintain p6r ntages on articular-,pck. Mr. Cohen noted malti _ etaf;s�h'ea�: b, re c e at several downtown properties and once the;;;aeyv approveti("; ptels are devel'bped retail will be highly needed in the downt- fi'%area. 11f1r� Hocfadel stated the side streets are not popular because bust�d 's�is not successful in in. a areas. The Commission discussed the storefront of a c the f gf es on al( is prtd,Ay maintenance issues_ ,,Ym Mr. Hutch remarked t he noticed downtowns that are lively have a mixture of retail and offi qse- Mr,,' tcheson noted that the ordinance states in Section D, " . . . office uses havO° ignfi tly eroded the vitality and economic health of the historic village center ��d'�he feels this is the effect and the cause is the vacant Desert Fashion Plaza. Mr- Hutcheson said he felt it would be best to let the market dictate the type of business and recommended not extend the urgency ordinance or limit office space to a certain percentage. Mr. Cohen concurred with Commissioner Hutcheson and suggested imposing a time limit on conditional use permits. Chair Marantz voiced concern with real estate offices displaying advertising on television screens during the evening hours, as well as the sale of goods on the sidewalk. 18 2 Crty of Palm Springs Planning Commission Study Session Minutes of September 5, 2007 The consensus of the Commission is to incorporate a time limit on land use permits and conditional use permits. Vice Chair Hochanadel noted the drawback on imposing time- limits on tenants is that they will not invest money into property improvements- Mr. Ewing provided additional information on time-frames for land use and conditional use permits. Mr. Ewing reminded the Commission that they have more latitude with conditional use permits during public hearings to impose a two, five or ten year time frame. s Mr. Ewing provided a recap of the discussion and reported 4t1 once general direction is received from the City Council, further dialogue will contiti`u 3. DISCUSSION Massage Ordinance Craig A. Ewing provided background infornfMi n as outlined in the mema'faradum dated September 5, 2007. Mr. Ewing stated mass a90.,is prohi0ted in the Centfal Business zone as a stand alone and is currently only alloy 4d-,ps,_an accessory to a spa or a hotel. Mr. Ewing stated that a request hag,epeen receivedtfrd-m a national franchise for stand t !.µiw alone massage business called "Ma'A —_lEnvy- Sta#f4njuired of the Commission if the current zoning code is still appropria$to regal te,a charioj�q industry. Commissioner Cohen coo tinted that�,�he readl1116 Qjpl%.age ordinance and feels it is very out-dated and in,n'� a-t.range..°xri '"iv � . ✓ �1 -Holly Nelson, fro,.,. ise ownerY?'a" rovided 'detalls on Massage Envy and emphasized their goal is to ma • it conve e;t end affor ble. Ms. Nelson stated that Massage A. Envy operates on a? arYlf �sYTC'r- b'asis:A.collecting monthly dues and offering a discounts ri `;fgrmas� g Ms. Nelsdii�rtbted that it is made convenient by locating theirs.' Rhin sih" "Qng o hers. -Jok. edith, stated;(l',)i is j another example of the changing times and spoke in favo his project. �`�l , -Daniela : G xander, brol, for Donahue Schriber for Smoketree Commons, spoke in favor of ge Envy an" mphasized massage is the fastest growing industry. Mr. Hochanadef; to - ssage services are currently offered downtown during the Village Fest. Mr. responded that the City has given the Village Fest Committee the right to determin hat types of businesses will be allowed. Staff noted massage is regulated for public health and over concerns with moral issues. Chair Marantz felt the necessary parking may be a problem in the downtown area however, noted a shopping center is good location for this type of business. Commissioner Scott questioned the single practitioner in a one suite space. Staff noted the first step is to discuss the use an activity and from there the next step is to discuss the regulation of location, tenant size, etc. 19 3 CITY OF PALM SPRINGS PUBLIC HEARING NOTIFICATION (a CITY CLERK'S DEPARTMENT James Thompson, City Clerk City Council Meeting Date: November 7, 2007 Subject: CASE 6.1173 — APPLICATION BY THE CITY OF PALM SPRINGS 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 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 October 27, 2007. 1 declare under penalty of perjury that the foregoing is true and correct. 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 October 26, 2007. 1 declare under penalty of perjury that the foregoing is true and correct. Dolores Strickstein, Secretary 20 PROOF OF PUBLICATION This is space Tor County Clerks Filing Stamp (2015.5.C.C.P) N0.3352 CITY COUNCIL NOTICE OF PUBLIC HEARING STATE OF CALIFORNIA CITY OF PALM SPRINGS County of Riverside CASE 5.1173—APPLICATION BY THE CITY OF PALM SPRINGS AMENDING SECTION 92.09.01 OF THE PALM SPRINGS ZONING CODE RELATING TO STREET LEVEL OFFICE USES AND FINANCIAL INSTI- TUTIONS IN CERTAIN PORTIONS OF THE C-B-D ZONE NOTICE IS HEREBY GIVEN that the City Council of the I am a citizen of the United States and a resident of City of Palm Springs,California,will hold a public hearing at the County aforesaid; I am over the age of eighteen its meeting of November 7, 2007. The City Council meet- years,and not a party to or interested in the ing begins at 6:00 p.m.in the Council Chamber at City Hall, above entitled matter.I am the principal clerk of a 3200 East Tahquitz Canyon Way, Palm Springs, printer of the,DESERT SUN PUBLISHING The purpose of the hearing is to consider a re0ommenda- COMPANY a newspaper of general circulation, tion by the Planning Commission of the City of Palm printed and published in the city of Palm Springs, Springs on an amendment to Section 92.09.01 of the Palm County of Riverside,and which newspaper has been Springs Zoning Cade relating to office and financial uses in adjudged a newspaper of general circulation by the the C-B-D (Central Business Zone). Superior Court of the County of Riverside,State of The City of Palm Springs, p y S g y California under the date of March 24,1988.Case ty in its capacity a the lead agency Number 191236;that the notice,of which the for this project, under the California Environmental Quality annexed is a printed copy(set in type not smaller Act(CEQA) evaluated the potential environmental impacts than non pariel,has been published in each regular of the project and determined that the proposed Zoning and entire issue of said newspaper and not in any Ordinance text amendments are exempt pursuant to the and entire issue ent of said newspaper soap it anng d of town: "General Rule" [Section 15061(b)(3)j that CEQA applies only to projects that have the potential to Cause a significant October z7`s,2007 impact on the environment.The proposed amendments are process-oriented, requiring additional levels of review ...-........_ - "`— through the permit process for each applicable future proj- ect. Consequently,there is no possibility that the proposed amendments could have a significant effect'on the environ- All in the year Z007 ment, Because the amendments have been found to be exempt, no environmental review Is necessary. I certify(or declare)under penalty of perjury that the Response to this notice may be made verbally at the public foregoing is true and correct. hearing and/or in writing before the hearing. Written com- Dated at Palm Springs,California this—30",—day ments may be made to the City Council by letter_ (mail o_r hand delivery)tor� _ of-- October-_"�LL' ,' -,2007 James Thompson, City Clerk 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 _ .�' ! �' ----------- If any individual or group challenges the action in court, CO Si natuYe issues raised may be limited to only those issues raised at La y= the public hearing described in this notice or in written cor- �� .mow respondence at, or prior to the meeting. Wit1 _ o U An opportunity will be given at said hearings for all interest- q� M f ed persons to be heard. Questions regarding this case may W 1+ Wit- be directed to Craig A. Ewing, Director, Planning Services o p Z0 Department at(760)323-8245- r o Si necesita ayuda con esta carta, porfavor Ilame a la N - 1`• 1•Q� Ciudad de Palm Springs y puede hablar can Nadine Fieger 11 (760)323.8364. James Thompson, City Clerk sir Published: 10/27/2007 CITY COUNCIL NOTICE OF PUBLIC HEARING CITY OF PALM SPRINGS CASE 5.1173 —APPLICATION BY THE CITY OF PALM SPRINGS 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 NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs, California, will hold a public hearing at its meeting of November 7, 2007. 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 a recommendation by the Planning Commission of the City of Palm Springs on an amendment to Section 92.09.01 of the Palm Springs Zoning Code relating to office and financial uses in the C-B-D (Central Business Zone). 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. Because the amendments have been found to be exempt, no environmental review is necessary. 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 If any individual or group challenges the action in court, issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to the meeting. 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, portavor Ilame a la Ciudad de Palm Springs y puede hablar con Nadine Fieger (760) 323-8364. ///d mes Thompson, City Clerk L� 21