HomeMy WebLinkAbout4/16/2003 - STAFF REPORTS (7) Date: April 16, 2003
To: CITY COUNCIL
From: DIRECTOR OF COMMUNITY& ECONOMIC DEVELOPMENT
CREATION OF THE RETAIL DEVELOPMENT ATTRACTION AREA FOR THE PURPOSE OF
FOSTERING DEVELOPMENT OPPORTUNITIES IN THE CITY'S CENTRAL SOUTHEAST
AREA
RECOMMENDATION:
It is recommended that the City Council adopt the Retail Development Attraction Area for the
purpose of creating a unified set of objectives and approaches to development in the
commercially-zoned areas in the southeast portion of Palm Springs.
SUMMARY:
The City and Community Redevelopment Agency have worked for decades to address the
' challenges in fostering development in Palm Springs. Challenges in the southeastern part of the
City, such as some developers' unfamiliarity with Indian land leases, lack of critical mass of retail,
low population density, competition from central valley locations and issues related to a dump site
have plagued commercial and retail development, resulting in slower-than-expected job growth
and a loss of tax revenue to the City.
Building on the momentum generated by the Lowe's Home Improvement Warehouse store, staff
is proposing the creation of an attraction area that would encompass a section of commercial,
industrial and retail zoned land in the southeast central part of the City. The area has portions of
the Redevelopment Project Area #1 (formerly Ramon-Bogie), and a large percentage of
undeveloped land which presents great opportunities. While the City continues to be focused on
the downtown as the primary economic engine of the community, the quality of the development
in this area will have a major impact on the perceived quality of Palm Springs as a whole, as well
as the potential for revenue to support essential City services.
BACKGROUND:
The Retail Development Attraction Area merely calls out specific sections in the current General
Plan and Zoning Code, and no new taxing,financing or regulatory powers are created. It is meant
to constitute an approach to development in the southeastern part of the City, consistent with the
City's current goals and objectives. The Area is of benefit to the entire City, as it looks at
development challenges. Retailers have inquired as to the City's interest in this type of activity
in the area; by approving such a designation, the goal of the Area is to increase the pace of
commercial and retail development there.
Section 5. The creation of such a Retail Development Attraction Area shall be of benefit to
property owners, business owners, and residents in the area.
ADOPTED this day of , 2003
AYES:
NOES:
ABSTAIN:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By:
City Clerk City Manager
REVIEWED AND APPROVED AS TO FORM:
The area under consideration, because of its prime location in the sub-regional market, excellent
transportation access, and abundant land, is now becoming attractive to national retailers,
including several major chains.
Jdlinp$. Raymond
pirector of Community & Economic Development
Approved:
City Manag�,,—
Attachments:
1. Resolution
2. Retail Development Plan
CITY OF PALM SPRINGS
RETAIL DEVELOPMENT ATTRACTION AREA
PROGRAM DESCRIPTION AND SUMMARY
Purpose
The development of retail centers is a significant part of nearly any California city's
economic and/or redevelopment efforts. First, the centers provide needed goods and
services for the current residents of the city; second, the centers provide an employment
base within the community; third, the centers themselves are often the tool used to
eliminate blight within a community; and, fourth, retail development provides a significant
amount of tax benefit to a community through the combination of property tax and sales
tax. Other ancillary benefits accrue from retail development, too: nearby residential and
• office development often follows the development of a retail core.
This Retail Development Attraction Area plan is a planning study that would work with the
existing General Plan and Zoning designations, as well as the portions of the
Redevelopment ProjectAreas that fall within its boundaries, attempting to identify the retail
• development opportunities that exist in the area to increase the level and pace of
development in the area. No changes to the General Plan, Zoning designations, or
Redevelopment Project Areas or plans are proposed as part of the creation of the Retail
Development Attraction Area.
There is also a need for a coordinated and comprehensive plan that details potential cost-
sharing options for infrastructure development, including streets, drainage improvements,
water lines, utility undergrounding, fire hydrants, and sewer improvements.
PROBLEM DESCRIPTION: COMMERCIAL DEVELOPMENT
There are unique factors to both Subzone areas that are impediments to retail and
commercial development. One common factor found in both Subzone areas is that the
sites are considered to be along the"scenic"corridors in the City. Additionally,the city has
traditionally held projects in scenic areas to higher development standards, creating the
perception in the development community of higher costs.
In Subzone A, the primary northeast corner was a former"dump site" from the 1930's to
about 1960, and was left with clean-up issues that continue to challenge development
progress. Additionally, a portion of the "dump site" lies within the boundaries of a
neighboring community, creating an additional layer of approvals for driveway locations
and interior circulation.
Properties on the south side of Ramon Road are on Indian Lease Land and, with the
exception of Lowe's Home Improvement Warehouse, largely remain vacant. The
negotiation and approval of land leases through the Bureau of Indian Affairs is a lengthy
process and sometimes slows the development process.
There is a lack of critical mass of retail in both Subzone A and B. The location and land
pricing competes with freeway and mid-valley sites that attract large retail stores looking
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for, or requiring, central access points and a higher population base. Additionally,the lack
of growth of housing development in the area due to the airport noise restrictions, has
slowed traditional retail and commercial development, such as neighborhood shopping
centers.
DEVELOPMENT OPPORTUNITIES
' The Gene Autry Trail and Ramon Road corridor is one of the highest traffic intersections
in the Coachella Valley, making it attractive to a general variety of community-to regional-
level commercial and retail services. With the projected residential growth in the northern
and southern portions of the City, and the growth of neighboring communities, new retail
opportunities will benefit both residents and visitors.
Existing development in includes the Lowe's Home Improvement Warehouse near Gene
Autry Trail and Ramon Road in Subzone A and the Rimrock Shopping Center at Gene
Autry Trail and East Palm Canyon Drive in Subzone B.
Proposed projects include: the Gene Autry Retail Center, approximately 350,000 sq.ft.
retail project; approximately 36 acres of retail and commercial land fronting on Ramon
Road between Crossley Road and San Luis Rey; the MidValley Center on Golf Club Drive,
a mixed use development project consisting of retail, office, commercial, golf course,
residential timeshare and hotel;and commercial sites fronting on East Palm Canyon Drive
which would include complement retail uses on the west and east side of the Rimrock
Shopping Center.
ZONING DESCRIPTIONS
The area is primarily zoned M-1-P (Planned, Research and Development Zone); M-1
(Service Manufacturing); C-D-N(Designed Neighborhood Shopping CenterZone)and W-
R-3(Water Course-Multi-Family, Hotel Zone). A portion of the area includes Indian Land,
and some sites are in both marginal and significant Airport Noise Contour boundaries.
STUDY AREA BOUNDARIES
The Retail Development Attraction Area is described as those properties within the
following area:
Subzone A:
Beginning at the intersection of Gene Autry Trail, the boundary proceeds north on Gene
Autry Trail to the centerline of Mission Road, east along the centerline of Mission Road to
the city boundary with Cathedral City, south along the city boundary to the centerline of
Ramon Road, east on Ramon Road to the western levee of the Whitewater River,
southeast along the levee to Mesquite Avenue, west along the centerline of Mesquite
Avenue to the centerline of Gene Autry Trail, and north along Gene Autry Trail to the point
of beginning.
Subzone B:
Beginning at the intersection of Gene Autry Trail and East Palm Canyon Drive, the
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boundary proceeds east to the centerline of Broadmoor Drive, south along Broadmoor
Drive to the mountainous line, proceeding west along the mountainous line to the
centerline of Linden Drive, north along Linden Drive to East Palm Canyon Drive and east
East Palm Canyon Drive to the point of beginning.
A map of the Area is attached as Exhibit"A".
GENERAL PLAN &ZONING DESIGNATIONS
General Plan
The intent of the Retail Development Attraction Area is to help the area achieve the goals
and objectives of the City's General Plan as it relates to that specific area, within the
current zoning code and other development restrictions. The Goals and Objectives in the
Land Use portion of the City of Palm Springs' General Plan, as well as the implementing
policies, are as follows:
Goals
3.A. A physical environment which provides for the housing, employment, business,
service, recreational, social, cultural, educational and entertainment needs of the
City's residents and visitors, while maintaining and enhancing the high quality of
life as a world-class resort.
3.B. A physical environment through the City's land uses which preserves existing
unique physical, economic and social assets and provides for new development
opportunities which complement and are compatible with and enhance these
assets.
3.C. A physical environment through the City's land uses which maintains and enhances
the City's role as a business, economic and cultural center in the Coachella Valley
and a major tourist destination.
3.D. A physical environment through the City's land uses which establishes Palm
Springs as a unique and special place in the southern California region with a
downtown area which is characterized by its "village" environment wherein social
and pedestrian interactions are promoted to enhance tourism and the small-town
experience enjoyed by its residents.
Obiective
3.1 New land use development which is reflective of and complements the overall
pattern and character of existing uses, offers opportunities for the intensification
of key "targeted" sites and mitigates any adverse impacts.
Policies
3.1.1. Ensure that all development in each zone adheres to or exceeds all requirements
and standards specified for that zone. Any lot created in compliance with
applicable laws and ordinances in effect at the time of its creation may be used as
a building site.
3.1.2. Encourage the exchange of public and private lands in order to consolidate
holdings and to eliminate dysfunctional parcels in order to permit the orderly
development and conservation of areas appropriate for each function of the land.
3.1.3 Limit development, in terms of total numbers of dwelling units and ancillary uses,
to the capacity of the infrastructure needed to support the City's residents and
visitors safely at maximum occupancy.
3.1.4 Allow modification of permitted uses and/or development standards for (a)
development projects which expand existing facilities or introduce new uses which
are considered to be of significant importance (municipal revenue, tourism,
historical use, socially valued use, etc.),
(b) contribute significant benefits to the City, and/or
(c)whose architectural design is of unusual merit and will enhance the City,
provided that:
a. Impacts of the modifications can be mitigated,
b. the use of additional heightwill reduce the impacts of bulk along the
sidewalk, street and adjacent properties, increase the ground level
open space, result in a structure of variable heights and/or create
additional view corridors, provided that the additional height does
not adversely impact adjacent uses, and
C. the modifications shall be reviewed with public hearings by the
community and approved by the Planning Commission and City
Council in conjunction with a Conditional Use Permit, Planned
Development District or Specific Plan application.
3.1.5 Require that new development mitigates impacts on the City's housing, schools,
public open space, child care facilities and other public needs.
3.1.6. Ensure adequate public review and input for all development projects which
potentially impact the community.
3.1.7 Ensure that development in each land use neighborhood and district respects the
integrity of that district.
3.1.8. Ensure that development does not overwhelm natural features, especially the
washes and the views of the mountains.
3.1.9. Development regulations and standards shall apply to all lands, whether located
on public or private streets.
3.1.10 No land shall be modified for buildings prior to the approval by the City of a grading
plan for the proposed structure bases on an approved site/master plan.
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INFRASTRUCTURE DEFICIENCIES
• Circulation. To accommodate the additional development, street improvements in
the Retail Development Attraction area, if warranted, could be funded through gas
tax funds, Measure A funds or through redevelopment tax increment.
• Flood Control and Drainage. The area is in the City's Master Plan of Drainage
Improvements. Development requires the payment of a$9,200 per acre fee to the
City for flood control improvements. The Subzone B area has some proximity to
flood hazards and is within the watercouse zone. Riverside County Flood Control
funds or redevelopment tax increment funds could be used to offset flood control
costs.
• Water. Water line extensions and additional wells and/or storage facilities may be
needed to provide domestic water and fire flows for the planned expansion of the
largest projects.
• Sewer. The area is served by the City of Palm Springs' sewer system. Issues in
the area lying outside the City limits, not hooked up to sewer, could potentially
create groundwater problems. Corrective measures could be funded through other
Cities, Community Development Block Grant (CDBG) funds, through
redevelopment tax increment, or other sources.
OTHER RELEVANT INCENTIVE ZONES
A portion of the land within Subzone A is Indian Lease Land and is within the boundaries
of the Economic Development Incentive Zone (EDIZ). Created in 1994, the EDIZ is a
program that through a Federal incentive, offers accelerated deprecation to owners for
new buildings and equipment built on Indian land and put into service in the zone. For
certain businesses not excluded by California Health &Safety Code Section 33426.5,the
Redevelopment Agency can provide tax increment funds to reimburse owners for their
expenses for the construction of public improvements and to offset a portion of an existing
Assessment District bond (AD 155).
Properties in the Retail Development Attraction area zoned "A", "M1", "M-1-P", and "M-2"
may also be eligible for the Job Creation Incentive Program approved by the City Council
in May 1999. The Job Creation Incentive Program could defer or relieve a developer or
an owner certain development fees based on a certain number of jobs created for a
specified period of time.
CALIFORNIA ENVIRONMENTAL QUALITY ACT COMPLIANCE
The purposes of this Retail Development Plan are to identify opportunities and resources
to assist development in the Plan area. Therefore, it is largely a planning and feasibility
document, with a Statutory Exemption under Article 18 of the California Environmental
Quality Act (Section 15262), related to Feasibility and Planning Studies, which states:
"A project involving only feasibility or planning studies for possible future actions
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which the agency, board, or commission has not approved, adopted, or funded
does not require the preparation of an EIR or Negative Declaration but does
require consideration of environmental factors. This section does not apply to the
adoption of a plan that will have a legally binding effect on later activities."
This plan suggests several approaches to development in the area, none of which are
prescriptive or regulatory. It does not amend or suggest amending current zoning, nor
changing any General Plan designations on property. An EIR was conducted on the
adoption of the General Plan, as well as the adoption of the two Redevelopment Project
Areas contained within the area. Any significant project, such as the development of a
retail center or master planned retail project, would be subject to CEQA.
FINDINGS
• Numerous development applications within the Retail Development Attraction
Area have been approved but not occurred, or have only partially developed; and
• Additional commercial development in the area could improve economic
conditions throughout the City by creating additional property tax increment, and
additional sales tax; and
• Commercial and retail development near the area could provide shopping
opportunities for those living within the City or elsewhere in the Coachella Valley;
and
• A balance of commercial developmentand residential development, including both
market rate housing and affordable housing, is essential for the continued
success of the Retail Development Attraction area and the entire City.
RECOMMENDED ACTIONS
General
• Encourage and support retail, commercial, and industrial development within the
Retail Development Attraction Area that is consistent with the goals and objectives
of the Land Use Element and the Circulation Element of the City General Plan.
Infrastructure
• Develop a priority list for Redevelopment Agency improvements in qualified areas,
including the portions of Merged Project Area#1.
• Pursue federal, state and regional funding that could be used for infrastructure
expansion and modernization within the Retail Development Attraction Area.
• Work with the development community to develop innovative and equitable ways
to fund infrastructure, including 1913 and 1915 Assessment Districts, utility
undergrounding districts, Rule 20A funding, Community Facilities Districts and
benefit assessment districts.
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Commercial/Industrial Development
• Make use of the Public Arts Commission's selection of gateway signage elements
at the key locations of East Palm Canyon Drive, Gene Autry Trail and Ramon
Road to unify the area and tie it into design elements found elsewhere in the City.
• Develop a program of commercial development signage and identification for
those commercial properties on streets within the Retail Development Attraction
Area.
RESOLUTION NO.
OF THE CITY OF PALM SPRINGS, CALIFORNIA
ESTABLISHING THE RETAIL DEVELOPMENT
ATTRACTION AREA IN THE AREA GENERALLY
SURROUNDING THE INTERSECTION OF RAMON
ROAD AND GENE AUTRY TRAIL AND EAST PALM
CANYON DRIVE AND GENE AUTRY TRAIL
WHEREAS, attracting businesses to the City and encouraging existing retail, manufacturing and
commercial businesses to undertake expansion that results in a significant economic benefit to
the City provides a community benefit; and
WHEREAS, the development of commercial activity within the community, for residents of all
income levels, is an objective of the City and is reinforced by the State policies; and
WHEREAS, it is in the public interest and consistent with the City charter to develop or access
economic incentive programs that diminish the disincentive caused by the cost of developing or
replacing infrastructure, as well as the direct cost of development; and
WHEREAS, such economic development programs serve a public purpose and provide for the
general welfare of the community by securing a diverse economic base for the City; and
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, that the
Retail Development Attraction Program is adopted, and that the Council further finds:
Section 1. The City contains abundant undeveloped land for retail and commercial purposes
which,for economic or other reasons, has remained undeveloped, with numerous
development applications within the Retail Development Attraction Area approved
but not developed; and
Section 3. Additional commercial development in the area could improve the economic
conditions throughout the City by creating additional property tax increment,aswell
as potential sales tax revenue; and
Section 4. A balance of commercial and retail development is essential for the continued
success of the Retail Development Attraction Area and the entire City; and