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2006 11 14 PCIV Planning Commission Agendas are now available on the City's Web Page @ www.la-guinta.org PLANNING COMMISSION A Regular Meeting to be Held at the La Quinta City Hall Council Chamber 78-495 Calle Tampico La Quinta, California NOVEMBER 14, 2006 7:00 P.M. **NOTE** ALL ITEMS NOT CONSIDERED BY 11:00 P.M. WILL BE CONTINUED TO THE NEXT REGULAR MEETING Beginning Resolution 2006-040 Beginning Minute Motion 2006-027 CALL TO ORDER A. Flag Salute B. Pledge of Allegiance PUBLIC COMMENT This is the time set aside for public comment on any matter not scheduled for public hearing. Please complete a "Request to Speak" form and limit your comments to three minutes. CONFIRMATION OF AGENDA CONSENT CALENDAR A. Approval of the Minutes of the Regular Meeting of October 24, 2006. G:\WPDOCS\PC Minutes\1 AgendaW.doc V. PUBLIC HEARING: For all Public Hearings on the Agenda, a completed "Request to Speak" form must be filed with the Executive Secretary prior to the start of the Planning Commission consideration of that item. The Chairman will invite individuals who have requested the opportunity to speak, to come forward at the appropriate time. Any person may submit written comments to the Planning Commission before a public hearing, may appear and be heard in support of, or in opposition to, the approval of the project(s) at the time of the hearing. If you challenge any project(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing or in written correspondence delivered to the City at, or prior to the public hearing. A. Item ................ CONTINUED - SIGN APPLICATION 2006-1015 Applicant ......... Prest/Vuksic Architects Location .......... West side of Caleo Bay, north of Avenue 48 Request ........... Consideration of a Sign Program to serve Caleo Bay Park. Action ............. Minute Motion 2006- B. Item ................ SITE DEVELOPMENT PERMIT 2006-876 Applicant ......... Trans West Housing, Inc. Location .......... Within proposed Tentative Tract Map 32879 and Tentative Tract Map 34642, south of Avenue 54, eat of Madison Street, west of Monroe Street, and north of the Greg Norman Course Request ........... Consideration of typical landscaping plans for residential production units within Griffin Ranch. Action ............. Minute Motion 2006- C. Item ................ CONDITIONAL USE PERMIT 2006-101 Applicant ......... La Quinta Playhouse Location .......... 78-059 Calle Estado; between Desert Club Drive and Avenida Bermudas Request ........... Consideration of temporary structures to conduct seasonal live play productions. Action ............. Resolution 2006- D. Item ................ SITE DEVELOPMENT PERMIT 2006-870 Applicant ......... Craftsmen Homes Location .......... West of Jefferson Street, south side of Pomelo in the Citrus Course project Request ........... Consideration of architectural and landscaping plans for three prototypical residential plan types for use in Tract 32751 Action ............. Minute Motion 2006- G:\WPDOCS\PC Minutes\1 AgendaW.doc E. Item ................ RIGHT-OF-WAY VACATION 2006-014 AND STREET VACATION 2006-042 Applicant ......... East of Madison, LLC Location .......... Portion of Avenue 53, west of Monroe Street Request ........... Report of finding under California Government Code Section 65402 that the proposed Right-of-Way/Street Vacation of a ±3,117-foot length of Avenue 53 is consistent with the General Plan Action ............. Resolution 2006- F. Item ................ ZONING CODE AMENDMENT 2006-088 Applicant ......... City of La Quinta Location .......... City-wide Request ........... Consideration of an Amendment to Chapter 9, Section 9.140.080-Supplemental Regulations of the La Quinta Municipal Code regulating the development and usage of future condominium hotel units in Tourist Commercial Districts Action ............. Resolution 2006- G. Item ................ DEVELOPMENT AGREEMENT 2006-012 Applicant ......... City of La Quinta Location .......... Southwest corner of Jefferson Street and Avenue 52 Request ........... Consideration of a Development Agreement establishing the fees associated with condo -hotel occupancy at the proposed boutique hotel at SilverRock Resort. Action ............. Resolution 2006- VI. BUSINESS ITEMS: None VII. CORRESPONDENCE AND WRITTEN MATERIAL: None VIII. COMMISSIONER ITEMS: A. Consideration of going dark December 26, 206 B. Review of City Council meeting of November 7, 2006 IX. ADJOURNMENT: This meeting of the Planning Commission will be adjourned to a Regular Meeting to be held on November 28, 2006, at 7:00 p.m. S:\Website Updates\Community Development\PC Agenda 11-14.doc DECLARATION OF POSTING I, Betty J. Sawyer, Executive Secretary of the City of La Quinta, do hereby declare that the foregoing Agenda for the. La Quinta Planning Commission meeting of Tuesday, November 14, 2006, was posted on the outside entry to the Council Chamber, 78-495 Calle Tampico and the bulletin board at the La Quinta Cove Post Office, on Thursday, November 9, 2006. DATED: November 9, 2006 BETT J YER, Executive Secretary City of La Quinta, California Public Notices The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's office at 777-7123, twenty-four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the, Planning Commission, arrangements should be made in advance by contacting the City Clerk's office at 777-7123. A one (1) week notice is required. If background material is to be presented to the Planning Commission during a Planning Commission meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the Executive Secretary for distribution. It is requested that this take place prior to the beginning of the 7:00 p.m. meeting. G:\WPDOCS\PC Minutes\1 AgendaMdoc MINUTES PLANNING COMMISSION MEETING A regular meeting held at the La Quinta City Hall 78-495 Calle Tampico, La Quinta, CA October 24, 2006 7:00 P.M. CALL TO ORDER A. This meeting of the Planning Commission was reconvened at 7:00 p.m. by Chairman Quill who asked Commissioner Engle to lead the flag salute. B. Present: Commissioners Ed Alderson, Katie Barrows, Jim Engle and Chairman Paul Quill. It was moved and seconded by Commissioners Barrows/Alderson to excuse Commissioner Daniels. C. Staff present: Community Development Director Doug Evans, Development Services Principal Engineer Ed Wimmer, Assistant Planners Jay Wuu and Eric Ceja, Planning Consultant Nicole Criste, and Executive Secretary Betty Sawyer. II. PUBLIC COMMENT: None. III. CONFIRMATION OF THE AGENDA: IV. CONSENT ITEMS: A. Chairman Quill asked if there were any corrections to the minutes of September 26, 2006. It was moved and seconded by Commissioners Alderson/Engle to approve the minutes as submitted. Unanimously approved. B. Chairman Quill asked if there were any corrections to the minutes of October 10, 2006. It was moved and seconded by Commissioners Alderson/Engle to approve the minutes as submitted. Unanimously approved. V. PUBLIC HEARINGS: None. A. Sign Application 2006-1015; a request of Prest/Vuksic Architects for consideration of a Sign Program to serve Caleo Bay, for the property located on the west side of Caleo Bay, north of Avenue 48. 1. Chairman Quill opened the public hearing and asked for the staff report. Staff informed the Commission a request to continue the project had been received by the applicant. n•%%A1PnnrQ%Pr n.,, Planning Commission Minutes October 24, 2006 2. There being no discussion, it was moved and seconded by Commissioner Barrows/Alderson to continue the project to November 14, 2006, as requested by the applicant. Unanimously approved. B. Sign Application 2006-1022; a request of Travis Design Group for consideration of a Sign Program for permanent business identification signage for La Quinta Medical Center located at 47-647 Caleo Bay Drive, east of Washington Street, north of Avenue 48, south of Lake La Quinta Drive. 1. Chairman Quill opened the public hearing and asked for the staff report. Assistant Planner Jay Wuu presented the information contained in the staff report, a copy of which is on file in the Community Development Department. 2. Chairman Quill asked if there were any questions of staff. Commissioner Alderson asked why staff did not want signage on the east side. Staff stated it was due to the residents on the east side. 3. There being no further questions of staff, Chairman Quill asked if the applicant would like to address the Commission. Mr. Travis, representing the applicant, gave a presentation on the project. He had a concern that if the signs were installed on the first floor they would be blocked by the trees and the lighting would be so low it will be hard to see the signs. As far as options, as they do not know what tenants will occupy what space, they prefer the option of two signs at 25 square feet. 4. Commissioner Barrows asked how important illuminated signs would be for a medical building that will not be open at night. Mr. Travis stated it is more of a public service for the clients to find the building. It will give the tenants some visibility. 5. Commissioner Alderson asked if it was the intent for the second sign was to identify a specific tenant. Mr. Travis said that if no tenant took it, the building sign would be there. Commissioner Alderson asked why they would not want to lower the signs to the first floor. Mr. Travis stated they would prefer the upper level as there is more space and no obstructions. It is a visibly preferred position. Planning Commission Minutes October 24, 2006 6. Commissioner Engle agreed the trees would obstruct the lower level signs. They are trading off by lowering the lighting wattage. He asked what color neon would be used. Mr. Travis stated it would be the off-white or soften white. Commissioner Engle asked if it was non -illuminated. Mr. Travis stated that was correct. 7. Commissioner Engle stated he had no objection with the sign being at the higher elevation and it is proportionally signed. 8. Commissioner Barrows asked why staff was requesting the sign be lowered; was it due to the illumination. Staff stated the illumination was a concern in regard to the residents as well as the height of the sign. 9. Commissioner Alderson stated he has no problem with the higher elevation sign. He did go to the site and does not believe the signs will be offensive and at the lower level they will not be seen. 10. Chairman Quill asked where the "Tarbell" sign was located on the La Quinta Professional Plaza building. Commissioner Engle stated it was on the upper level, but a completely different type of building. Chairman Quill stated that if approved, it should be the beige white and not to exceed 30 miliamp level to ensure it is soft light. 11. There being no further public comment, the public participation portion of the public hearing was closed and open for Commission discussion. 12. There being no further discussion, it was moved and seconded by Commissioner Alderson/Engle to adopt Minute Motion 2006-026 approving Sign Application 2006-1022, as recommended and amended: a. Condition 1: Deleted b. Condition 2: Not to exceed a 30 miliamp level Motioned carried with Commissioner Barrows voting no. C. Environmental Assessment 2006-576, General Plan 2006-108, Zone Change 2006-130 for Annexation 18; a request of the City for consideration of a Negative Declaration, General Plan Amendment and Zone Change to High Density Residential for 12.29 acres of land north of the City limits. The action will lead to a Sphere of Influence Amendment and Annexation request before the Local Agency Formation Commission. Planning Commission Minutes October 24, 2006 1. Chairman Quill opened the public hearing and asked for the staff report. Planning Consultant Nicole Criste presented the information contained in the staff report, a copy of which is on file in the Community Development Department. Community Development Director Doug Evans noted the land proposed for annexation. will be reduced due to some encumbrances on the southerly piece of land. 2. Chairman Quill asked if the tenants would have any voting rights. Staff stated the registered voters make the final decision as to the annexation. Chairman Quill asked what the City's motivation was. Staff stated to fulfill the City's affordable housing requirement and after staff's analysis it did meet the zoning requirements. 3. Chairman Quill asked if there were any questions of staff. Commissioner Alderson asked where the City stood in regard to meeting its goal. Staff stated the goal was approximately 1,900 units and we currently are at.about 1,100 with another 300 under construction. Commissioner Alderson asked if the land that is not included would be land locked. Staff stated they have access to the east. 4. Commissioner Barrows asked if there would be a lot split. Staff stated there would be a parcel map to have two distinct parcels. Commissioner Barrows asked the location of the school in relation to this parcel. Staff indicated the location on the map. Commissioner Barrows asked if there could be any work -force housing. Staff stated they would be looking at all types once the property is acquired. Staff clarified they had checked with LAFCO to determine whether this property was within any other city's sphere and found that it was not. The Bermuda Dunes Community Council has told the City they would like the City to take all of Bermuda Dunes or none of it, but not to take pieces. Nicole Criste indicated another annexation that was in process just east of the City limits within the City's Sphere of Influence. 5. Chairman Quill asked if any of the other property owners along Darby Road were interested in annexation. Staff stated the survey that was taken showed a very strong mix of those in favor and those opposed. Chairman Quill asked if the Bermuda Dunes Community of Interest still existed. Ms. Criste stated it still exists and the proposed annexation is within the Bermuda Dunes Community of Interest, and a representative from the community of interest was in attendance. Planning Commission Minutes October 24, 2006 6. There being no further questions of staff, Chairman Quill asked if there was any public comment. Mr. Robert Farrow, stated he is a member of the Bermuda Dunes Community Council (BDCC) and is opposed to this annexation. He asked if the residents were the only ones who had the voting right to determine whether this is annexed or not. Ms. Criste stated as regards the protest hearing only those who reside within the area will be asked to vote. As regards the annexation itself, the annexation hearing is public and members of the community can speak to the LAFCO Board in favor, or opposition to the annexation. Mr. Farrow stated the BDCC were certain there was a vote taken whereby the majority of those indicated they wanted to be a part of Palm Desert. Ms. Criste stated a survey was taken and it was determined that most wanted to be annexed into Palm Desert. The City of Palm Desert determined it was not fiscally possible for them to annex the area. 7. Chairman Quill stated his understanding of a Community of Interest was a "hands off' period for five years where a city could not process any annexation. Ms. Criste stated that has since changed to pre -annexation boundaries. 8. Commissioner Barrows asked if the opposition was because it is a piece of Bermuda Dunes. Mr. Farrow stated it was to keep Bermuda Dunes as it is. It is his understanding that over the years it has been shrunken down to what it is currently. He asked if this annexation was part of a greater plan for more annexation. Staff stated they did look at the property east of this annexation. That property owner was not interested. Staff has no thoughts of extending any further north. This annexation is only an opportunity to extend our housing program. Community Barrows asked if the remainder parcel would remain in the County. Staff stated it will probably ultimately develop in the County. It does not make economic sense to annex it into the City. 9. Mr. John Brohas, 42-901 Lima Hall, stated they own the adjoining property and do not oppose the annexation. Their objection is only the high density that is proposed as this is a low density area. They would like to develop this area into large estate lots. 10. There being no further public comment, the public participation portion of the hearing was closed and open for Commission discussion. Planning Commission Minutes October 24, 2006 1 1 . Commissioner Alderson stated he has driven by the area and the senior homes are in need of help and the assistant the City will offer will only be an improvement. This can only be an asset to our seniors. 12. Commissioner Engle stated he would not want this annexation to cause any interruption to Mr. Brohas's operation. He does agree that this will be an asset. 13. Commissioner Barrows asked about setbacks. Ms. Criste stated there are considerations in our Code for setbacks to buffer outside developments. Commissioner Barrows stated that due to the location to schools and commercial development she believes this will be a good location. 14. There being no further discussion, it was moved and seconded by Commissioner Barrows/Alderson to adopt Planning Commission Resolution 2006-037 recommending approval of a Mitigated Negative Declaration for Environmental Assessment 2006-576, as recommended. ROLL CALL: AYES: Commissioners Alderson, Barrows, Engle, and Chairman Quill. NOES: None. ABSENT: Commissioner Daniels. ABSTAIN: None. 15. It was moved and seconded by Commissioner Barrows/Alderson to adopt Planning Commission Resolution 2006-038 recommending approval of General Plan Amendment 2006-108, as recommended. ROLL CALL: AYES: Commissioners Alderson, Barrows, Engle, and Chairman Quill. NOES: None. ABSENT: Commissioner Daniels. ABSTAIN: None. 16. It was moved and seconded by Commissioner Barrows/Alderson to adopt Planning Commission Resolution 2006-039 recommending approval of Zone Change 2006-130, as recommended. ROLL CALL: AYES: Commissioners Alderson, Barrows, Engle, and Chairman Quill. NOES: None. ABSENT: Commissioner Daniels. ABSTAIN: None. BUSINESS ITEM: None Vill. CORRESPONDENCE AND WRITTEN MATERIAL: None. Planning Commission Minutes October 24, 2006 IX. COMMISSIONER ITEMS: A. Staff informed the Commission of the Lighting Ordinance Workshop being held on October 27, 2006. Commissioners Quill and Engle volunteered to attend. Commissioner Barrows asked if the study would address safety lighting in regard to concerns raised by the Sheriff's Department. B. Review of City Council meeting of October 17, 2006. X. ADJOURNMENT: There being no further business, it was moved and seconded by Commissioners Barrows/Alderson to adjourn this regular meeting of the Planning Commission to a regular meeting of the Planning Commission to be held on October 24, 2006. This meeting of the Planning Commission was adjourned at 8:13 p.m. on October 10, 2006. Respectfully submitted, Betty J. Sawyer, Executive Secretary City of La Quinta, California PH #A STAFF REPORT PLANNING COMMISSION DATE: NOVEMBER 14, 2006 CASE NO: SIGN APPLICATION 2006-1015 APPLICANT: PREST/VUKSIC ARCHITECTS PROPERTY OWNER: Dr. STEVE PHAN REQUEST: CONSIDERATION OF A REQUEST FOR A SIGN PROGRAM TO SERVE CALEO BAY PARK LOCATION: WESTSIDE OF CALEO BAY DRIVE, APPROXMIATLEY 300 FEET NORTH OF AVENUE 48 (ATTACHMENT 1) ENVIRONMENTAL CONSIDERATION: ON -PREMISE SIGNS ARE CATEGORICALLY EXEMPT UNDER CEQA GUIDELINES SECTION 1531 1(a) GENERAL PLAN DESIGNATION: CC (COMMUNITY COMMERCIAL) ZONING: CC (COMMUNITY COMMERCIAL) BACKGROUND: Site History Caleo Bay Park was approved as a multi -phased commercial development on a 5.0 acre parcel through Tentative Parcel Map (TPM) 31248. The project includes five (5) separate one-story buildings on each parcel with a common parking area. Currently, only Phase 1, a 10,000 square foot multi -tenant office building, has been approved through Site Development Permit 2004-815. The remaining building phases have yet to be entitled or built, however, Building 'A' is complete and ready for tenant occupancy. This Sign Program was continued from the previous Planning Commission meetings of September 12`h, 26`h, and October 10`h, 24`h, 2006. The continued requests have been to allow the applicant time to work with City staff and the Rancho La Quinta Homeowners' Association on lighting issues associated with the proposed Sign Program. Since the last Planning Commission meeting, issues regarding potential lighting impacts on the Rancho La Quinta Country Club have been resolved. PAReports - PC\2006\11-14-06\Caleo Bay Park\SA 06-1015 Caleo Bay Park (STAFF REPORT) 11.14.06.rtf SIGN PROGRAM PROPOSAL: The applicant requests a Sign Program be approved for Caleo Bay Park (Attachment 2) The proposed Sign Program provides specifications for building -mounted signs, specifications for up to two monument signs, definitive sign locations, and general standards and provisions for sign construction, installation and maintenance. However, all tenants have yet to be secured, so the program is designed to be flexible while providing for some optional approaches for signing. General Signs Provisions The program identifies general requirements, standards, and provisions for signs within Caleo Bay Park. Although most of the general provisions provided for in the proposed program are more restrictive than the City's Sign Code, it is believed that the program will better serve the development while minimizing any potential adverse lighting impacts on nearby residences. For example, the program states that all sign lighting shall be turned off by 9:00 p.m. and that all landscape lighting will be turned off at 10:00 p.m. Building -mounted Signs The program identifies building -mounted sign locations for approved Building 'A'. Sign locations have yet to be determined for those buildings not yet built, (Buildings B E). The program allows for illuminated signs on Building 'A', however, those signs are not permitted to be illuminated until Buildings B, C, and D are built in an effort to help screen sign lighting from residences in Rancho La Quinta. Once Buildings B, C, and D are complete, Building 'A' will be allowed to have illuminated signs. Building -mounted signs facing Avenue 48 and Caleo Bay Drive are permitted; however, the Sign Program prohibits illuminated signs on building elevation facing Avenue 48 and Caleo Bay Drive (Attachment 3). Illuminated building -mounted signs are only permitted for signs facing inward into the development, the parking lot, and those facing Washington Street. All illuminated building -mounted signs shall be reverse channel. Channel lettering shall have approximately 2" - 4" return and shall be "pinned" off the building fascia by approximately 1 %: ". Each tenant is allowed a maximum of one sign per building elevation. The Sign Program provides guidelines for lettering square footage, stating that the square footage for a single sign line shall not exceed 15 square feet or 25 square feet for two lines. Additionally, the Sign Program states that sign letters shall not exceed nine inches, logos are not to exceed nine square feet and signage must stay within designated areas (Attachment 4). The program also stipulates that all signage shall be complementary to the color palette of the commercial park, thus allowing for some restrictions to sign color. P:\Reports - PC\2006\11-14-06\Caleo Bay Park\SA 06-1015 Caleo Bay Park (STAFF REPORT) 11 .14.06.rtf Monument Signs The monument sign provisions state that one monument sign shall be permitted at each entrance to the park. The proposed monument sign facing Caleo Bay Drive shall not exceed five feet in height measured from the top of the curb. The second monument sign shall be located along Avenue 48 and shall have a maximum height of six feet measured from the top of the curb. Both monument signs may be allowed to deviate from their height limits if an architectural accent is added that enhances the aesthetics of the signs. Both monument signs shall be consistent with the architecture of the buildings. Each monument sign shall not exceed an area of 50 sq. it. These signs shall be double -sided and externally illuminated with landscape lighting. Each monument signs will have a maximum of three tenant signs, each to be separated by a divider which will match the building color. Letter type for the monument sign shall be Helvetica, or Optima, or as approved by the City. Monument sign lettering shall be vinyl for removable panels; machine cut metal or plastic lettering is allowed if permanently mounted to the monument sign. Window Signs Generally, this type of incidental accessory signing is exempt under the Sign Code, but is addressed here for continuity. Each tenant with entry window facings, facing into the parking lot, is allowed one 18 by 18 inch (2.25 square feet) sign panel area in vinyl letters, which will identify the tenant by name and logo, and the tenant's business hours. Lettering is to be at least one inch in height, color shall be eggshell, and shall be face or reverse/second surface -mounted. Window displays and signs which are visible from Rancho La Quinta Country Club will not be permitted. ANALYSIS: 1. The proposed Sign Program allows for a maximum of one sign per tenant, with a maximum sign area of 25 square feet. Although the Sign Program is more restrictive than the City's Sign Code, it is believed that the style of architecture will be better preserved under the proposed Sign Program and compatible with surrounding land uses. Additionally, under a Sign Program, there is more opportunity for flexibility due to the opportunity to review sign size, location and design as part of the total building design, and incorporate that design into the overall program. 2. The proposed Sign Program restricts landscape lighting within the Caleo Bay Park to be turned off by 10:00 p.m. However, due to security concerns and setbacks from nearby neighborhoods, restrictions to landscape lighting maybe unnecessary. 3. The office building signs as proposed generally meet the standards contained in the City's Sign Code provisions. The individual tenant signs are limited to P:\Reports - PC\2006\11-14-06\Caleo Bay Park\SA 06-1015 Caleo Bay Park (STAFF REPORT) 11.14.06.rtf I 15 square feet for single -line and 25 square feet for double -line copy signs. Logo signs are considered additional sign area and are limited to nine square feet, which is below the Sign Code allowance for tenant signs. 4. Future signs for each tenant will be submitted under the general sign permit process as they are identified, and reviewed against the parameters of this Sign Program as approved. FINDINGS: The following findings can be made in support of Sign Application 2006-1015: A. Sign Application 2006-1015, as recommended, is consistent with the purpose and intent of Chapter 9.160, in that it does not conflict with the standards as set forth in said Chapter. B. Sign Application 2006-1015, as recommended, is harmonious with and visually related to all signs as proposed under the Sign Program, due to the common use of letter type and size, color and location of signs. C. Sign Application 2006-1015, as recommended, is harmonious with, and visually related to the subject buildings as the scale of the signs and letter sizes used accentuate the building design. D. Sign Application 2006-1015, as recommended, is harmonious with and visually related to surrounding development, as it will not adversely affect surrounding land uses or obscure other adjacent conforming signs. RECOMMENDATION: Adopt Minute Motion 2006- approving Sign Application 2006-1015 as conditioned: 1. Building -mounted signs facing Avenue 48 are permitted. Buildings C, D, and E are allowed building -mounted signs to face Avenue 48, however these buildings are prohibited from building -mounted illuminated signs facing Avenue 48. The final Sign Program shall be amended accordingly. 2. Final sign plans shall be submitted to the Community Development Department for approval prior to issuance of a building permit for the signs. 3. Monument Signs: Prior to installation, both monument signs shall obtain approval from the Public Works Department for visual clearance. Monument signs are limited to one per entry. Each monument sign is allowed a maximum of three (3) tenant signs, and shall not be allowed to deviate from the following height restrictions: PAReports - PC\2006\11-14-06\Caleo Bay Park\SA 06-1015 Caleo Bay Park (STAFF REPORT) 11 .14.06.rtf A. Caleo Bay Drive: 5 feet from top of curb. B. Avenue 48: 6 feet from top of curb. 4. Prior to the Sign Program being effective, the applicant shall revise the Sign Program according to the aforementioned conditions and provide a copy to the Community Development Department. Prepared by: 4x-"- a.ti Eric Ceja, Assist n Planner Attachments: 1. Location Map 2. Sign Program 3. Illuminated sign locations 4. Sign location for Building 'A' PAReports'- PC\2006\11-14-06\Caleo Bay Park\SA 06-1015 Caleo Bay Park (STAFF REPORT) 11.14.06.rtf Caleo Bay Park ATTACHMENT 2 Sign Program Sign Program: The purpose of the sign Program is to ensure: design, production, implementation, consistency, quality coordination, proportion, enhancement, image compatibility between all signs within the Sign Program area. As such, the Sign Program is intended to address placement, color, style, sign material, and their consistency on the property. This program also serves to communicate particular tenant sign parameters to compliment the.project as a whole, while achieving a unified, attractive balanced appearance. Although the Sign Program exhibits establish the letter and sign dimensions, the Sign Program is not intended to substitute Chapter 9.160. of the city of La Quinta Zoning Ordinance. Applicability: A sign program is a coordinated sign plan for an individual building or a group of buildings. For those signs requiring a program, no permit shall be issued for an individual sign unless and until a Sign Program for the lot on which the sign will be erected has been submitted and approved by the City in conformance with the City of La Quinta Sign Ordinance. General Requirement, Standards and/or Provisions: All signs shall be constructed, installed and maintained in accordance with the following standards: 1. All sign (s) shall comply with the Sign Program, current local zoning, meet with the provisions of the Uniform Building and electrical codes, be maintained in good structural condition and appearance, and MUST be Underwriters Laboratory (U.L.) and BEAR the U.L. listing. 2. The tenant, the tenant's agent and/or the tenant's sign contractor and/or general contractor shall be responsible forobtaining any and all permits required. 3. Former tenant (s) shall be responsible for the removal of the signage, including: sealing patching, painting, and electrical disconnect (s). Removals to be completed within a 10 (ten) day period of lease termination at the tenant's expense. It is required that you use a sign contractor for signage and signage component removal and electrical disconnect, and a painting contractor for finishing and painting work All repair work must match the building color and texture. Working area must be left in a neat and clean condition. 4. No audible; flashing, animated, moving, pulsating, electronic and/or search lighting or sign (s) not specifically mentioned herein shall be permitted. 5. All sign lighting must be turned off by 9 p.m. 6. Landscape lighting will remain on until 10 p.m for security reasons. 7. It is the responsibility of the sign applicant to verify all sign locations and/or field condition, conduit and primary and electrical locations and services, prior to installation of any sign (s). 8. No exposed raceways, crossovers, conductors, wiring, or junction boxes. Transformer boxes will be used to cover and/or conceal transformers. All bolts, fastenings, and clips shall be non "rust prone" and painted to match the exterior building color permitted. Caleo Bay Park Sign Program EXCEPT WHEN THE DESIGNATED SIGN LOCATION (S) HAS SUPPORT BEAMS, NO ACCESS, AND/OR A NON -WORKING AND/OR BUILDING INSPECTOR AREA BEHIND THE DESIGNATED SIGN LOCATION A RACEWAY MAY BE INCORPORATED IF THE RACEWAY IS DESIGNED TO BE AN ARCHITECTURAL ELEMENT THAT IS AESTHETICALLY PLEASING. 9. Sign Contractor must have the following: General Liability Insurance, Workers Compensation, Contracting and City Business License. Tenant will be responsible for its sign contractor to indemnify, defend and hold harmless the Landlord and its agents from any damage or liability resulting from the contractor's work. Tenant will also provide adequate evidence of the contractor's insurance coverage, naming the Landlord as additional insured. 10. Sign labels that pertain to construction and installation shall be permitted and placed in a conspicuous location for inspections and/ or emergencies. 11. Penetrations of the building structure required by installation (s) shall be neatly sealed in a "water tight" condition and painted to match exterior surface. 12. Sign (s) shall have access and/ or adequate "crawl space' for inspection (s) and servicing. 13. No live and/ or simulated animals or humans may be used as a sign. 14. No sign (s) shall be permitted that pose a nuisance or hazard. 15. No exposed neon, lamps, tubing, and/or bulbs, shall be permitted. 16. Roof sign (s) or projected sign (s) shall not be permitted. 17. Temporary identification signs such as: construction, developer, seasonal promotions and/or compliance non -illuminated advertising displays permitted as per La Quints City Code. Some time restrictions may apply. 18. Sign (s) that project onto the public right-of-way shall not be permitted. 19. The tenant will be responsible for the maintenance of their sign (s). Repairs may be required within 30 (thirty) days of repair/ servicing If not mitigated within 30 (thirty) days, the Landlord may repair and/or service the sign at the tenant's expense. 20. Owner shall reserve the right to have architectural control. Caleo Bay Park Sign Program Specifications for Building Signs: 1. Building A may have illuminated letters except where shown on Diagram 1, but lettering visible from Rancho La Quinta Country Club may not be illuminated until Buildings B, C and D are built to screen it from Rancho La Quinta Country Club. See attached Diagram 1. 2. Buildings B, C and D may have illuminated signs on the building facades that face into the center and/or away from Rancho La Quinta Country Club only, so that the illuminated signs are not visible from Rancho La Quinta Country Club. See attached Diagram 1. 3. Building E may only have illuminated signs facing Washington Street and facing away from Rancho La Quinta Country Club. See attached Diagram 1. , 4. Signs shall have individual mounted lettering. 5. Signs that may be illuminated shall be reverse Channel lettering and logo (s) to be fabricated from aluminum, formed into a pan Channel configuration with approximately 2" — 4" return and "pinned" of the building fascia approximately 1 %:" or lit through the individually mounted letters. 6. Letter type style, logo and color shall be approved by Landlord and City. 7. Tenant signs shall include the business name only as registered on the lease agreement. S. Lettering to be single line or double line copy as noted and shown on elevation. 9. Sign illumination may range from 4500 — 6500 neon or equal with 30 MA transformers. 10. Lettering referenced herein shall be consistent with tenant's national branding identity. Signage may be any color approved by the Landlord and the City that is considered complementary to the color palette of the commercial park. The Landlord reserves the right to alter the hue of any color to make it more subdued. Signage falling into the national branding category will be subject to the provisional clause. Logos referenced herein shall be aesthetically tasteful and subject to the Caleo Bay Park's architectural control committee's review. 11. Tenant (s) with nationally recognized lettering and/or logo (s) I.E., trademarks and/or franchises must provide the Landlord and sign contractor copies for approval and permitting. The tenant is responsible for conformance to the type of sign, signage area allocations, and must obtain approval from the Landlord and the City Of La Quints • SEE PROVISIONAL CLAUSE 12. Sign lettering square footage not to exceed 15 sq. ft for one single line sign or 25 sq.ft. for two lines. In general, lettering height should generally not exceed 9". Exceptions may be considered for short signs that could have slightly larger letters without looking out of scale, as shown in the attached elevations. Logo areas are in addition to this and shall not exceed 9 sq. R Signs and logos to stay within the zones outlined on the attached elevations. 13. A tenant may have a maximum of 1 (one) sign on any building elevation (see attached exhibits). 14. Signage to stay within designated area as shown on elevations. 15. See exhibits for material and location requirements. Caleo Bay Park Sign Program Specifications for monument signs: 1. One monument sign per entry shall be permitted. 2. Sign (s) shall be a maximum of 50 sq.ft. per sign. 3. Monument sign on Caleo Bay Drive shall have a maximum height that shall not exceed five (5) feet, measured from the top of the curb. An Architectural accent element may exceed the maximum height if it is clearly an aesthetic enhancement and does not contain any signage. 4. Monument sign on Avenue 48 shall have a maximum height that shall not exceed six (6) feet, measured from the top of the curb. An Architectural accent element may exceed the maximum height if it is clearly an aesthetic enhancement and does not contain any signage. 5. Sign (s) shall be double sided. 6. Signs shall be externally illuminated with landscape lighting. 7. Sign (s) to blend with architecture of building, as depicted on exhibit. 8. Monument sign (s) may have removable copy (maximum of 3 tenants per monument — divider to be painted to match building color. 9. Letter type shall be Helvetica, or Optima, or as approved by Landlord and City. 10. Lettering is to be vinyl if on removable panels, or machine cut metal or plastic if individually mounted to a surface. Specifications for window signs (Secondary) 1. One for parking lot side only. 2. Not to exceed 18" x 18", includes hours of operation. 3. Copy shall be matching cut vinyl lettering. 4. Lettering to be at least I" in height. 5. Lettering type to be Helvetica (Medium) or Optima, or as approved by landlord and City. 6. Lettering to be face or reverse/ second surface mount. If tinting prevails on window, it is recommended that a face application process be used. 7. Lettering color to be Eggshell. 8, Windows displays and signage which are visible from Rancho La Quinta Country Club will not be permitted. 4 Caleo Bay Park Sign Program Submittal Requirements: A sign application consistent with this program shall consist of the following: For each proposed sign application on the building, the following shall be specified or drawn to scale and dimensioned plans: - 1.) A dimensioned location of each sign in the building and/ or property. 2.) Sign dimensions including letter height, color, sign length and sign projection from the building. 3.) Color scheme. 4.) Type style or graphic style. 5.) Material being used. 6.) Method of installation/ attachment/ cross-section. 7.) Site plan indicating the location of the occupant space on the site. 8.) Fabrication and installation details. All pemtits for sign (s) and their installation shall be obtained by the sign applicant (s).The sign applicant shall satisfy all requirements and specifications herein. - Binding Effect: No sign shall be erected, constructed, installed, displayed, altered, placed or maintained except in conformance with this program. In case of any conflict between the provisions of this program and any other provisions of Chapter 9.160 of the City Zoning ordinance, the City Zoning Ordinance shall prevail Approvals: The design and construction of the tenant's signage must receive written approval by the Landlord/ Owner and the City of La Quima before fabrication and installation. The owner's or managers written approval shall be submitted to the City, along with a completed City application, approved plans, and fees. owner's approval shall be based on the following: 1. Conformity to the provisions of this sign program. 2. Complete information, i.e. contractor,s name, company name, address, license number, and workers compensation number. To secure the owners approval, 3 (three) copies of the design drawing of the signage must be submitted directly to the Owner. Final Inspection of Sign Installation: L The installing sign contractor shall call the City for a final inspection after having installed the sign. 2. The Final Inspection Card must be maintained on file with the Sign Contractor. 3. Signs that deviate from this Sign Program will be removed at the tenant's expense. Caleo Bay Park Sign Program *Provisional Clause: This Sign Program is intended to address nearly all sign types while adhering to City sign codes and facilitating business operations. With this understanding and in all fairness to applicants, the landlord and the La Quinta Community Development Department will reserve the right to review proposals on a "case by case" basis. Rancho La Quinta Country Club must be notified of any appeal process or position sought. Applicants that fall into this category are strongly encouraged to meet with the landlord and the Community Development Department mrior to sign design to review and exhaust all options prior to using said provision due to legal sensitiviri and extended lead times of provision: The following situations are candidates for this provision: - 1. Franchise/ Business Opportunities/ Operations Systems that specifically mandate certain lettering and/ or logos. 2. Hardships as set forth in the City Code. A letter will be required from tenants on corporate letterhead indicating the business noted on # I above plus an approval from the owner approving provision. THIS MUST BE SUBMITTED WITH APPLICATION TO SATISFY CITY OF LA QUINTA COMMUNITY DEVELOPMENT DEPARTMENT SIGN APPLICATION REQUIREMENTS. BE ADVISED: This clause is set forth to be fair and just. If it is determined that this provision has been disregarded, abused, altered or falsified in any way, the offending tenant will be cited, and the sign may be removed by Landlord within 30 days of citation, and legal action may be initiated. 0 FT 5 � !! (�| k� ; ! | m-egƒ UJ2o.G!|A .� 3 � |� \�\ \\\ 0z0 k%k k2§, ()) j0�\ ` | PH #B PLANNING COMMISSION STAFF REPORT DATE: NOVEMBER 14, 2006 CASE NUMBER: SITE DEVELOPMENT PERMIT 2006-876 APPLICANT & PROPERTY OWNER: TRANS WEST HOUSING, INC. LANDSCAPE ARCHITECT: HSA DESIGN GROUP REQUEST: CONSIDERATION OF TYPICAL LANDSCAPING PLANS FOR RESIDENTIAL PRODUCTION UNITS WITHIN GRIFFIN RANCH LOCATION: WITHIN PROPOSED TENTATIVE TRACT MAP 32879 AND TENTATIVE TRACT MAP 34642, SOUTH OF AVENUE 54, EAST OF MADISON STREET, WEST OF MONROE STREET, AND NORTH OF THE GREG NORMAN COURSE (ATTACHMENT 1) ENVIRONMENTAL CONSIDERATION: THE LA QUINTA COMMUNITY DEVELOPMENT DEPARTMENT HAS DETERMINED THAT THIS PROJECT HAS BEEN PREVIOUSLY ASSESSED IN CONJUNCTION WITH ENVIRONMENTAL ASSESSMENT 2004-526, WHICH WAS CERTIFIED BY THE CITY COUNCIL ON JANUARY 4, 2005, AND THEREFORE, NO FURTHER ENVIRONMENTAL REVIEW IS NEEDED. BACKGROUND: Site Background The Griffin, Ranch project was originally approved by the City Council on January 4, 2004, as part of multiple approvals. The project as approved will be developed with 393 single-family lots over approximately 250 acres, with on -site equestrian facilities and access to the City multi -purpose trail system (Attachment 1). The gatehouse 11 and perimeter landscaping plans were previously approved by the Planning Commission on January 24, 2006. Prototypical residential units were approved by the Planning Commission on March 14, 2006 and September 12, 2006. This proposal constitutes a review request of the typical landscaping for the approved residential unit plans associated with the development. P:\Reports - PC\2006\11-14-06\Griffin Ranch Landscaping\PC RPT SDP 06-676 GRIFFIN RANCH.rtf PROJECT PROPOSAL: The proposal consists of landscaping variations for typical lots, including a special design for those residential units fronting an equestrian trail. A turf -less design has been provided for the Sevilla plan, while the Madiera, Castilla, and Campania plans feature limited turf. The proposed plant palate consists of a variety of desert - appropriate trees, shrubs, and accents (Attachment 2). The applicants have stated they do not intend for the individual property owners to have a choice of landscaping in the front yards and that some of the Sevilla units will have a turf -less design. Because of this, they have requested they be excluded from the standard condition of approval requiring a turf -less landscaping option. During the ALRC meeting, the applicant stated all units would be designed with a unified landscaping theme and any modifications to an individual property owner's landscaping would be reviewed and approved by a yet to -be -formed homeowners' association architecture and landscaping review committee. Architecture and Landscape Review Committee (ALRC) Action - On October 18, 2006, the ALRC reviewed the proposed landscape plans and recommended approval of the Site. Development Permit by Minute Motion 2006-031 (Attachment 3), subject to incorporation of the following: 1. Final typical unit landscaping plans shall be reviewed and approved by the Community Development Director. 2. Final landscaping plans shall be revised so that groundcover (such as Lantana, accent shrubs excluded) shall be a minimum five gallon size. 3. Plants located within sight triangles shall not consist of a height greater than 30 inches from the pavement surface. Tree canopies shall not hang below 80 inches. ' The ALRC agreed with the applicant's request to be exempt from the standard turf - less option due to the provided turf -less design for the Sevilla units and the applicant's intent to provide a unified landscaping design and not provide individual home purchasers a landscaping option. ANALYSIS The proposed landscaping design and plant palette are appropriate for the desert environment and overall have limited the use of turf. With one of the proposed units having a turf -less design and the proposed landscaping designs being consistent with the approved Griffin Ranch Specific Plan 2004-074, staff has no issues with the proposal. P:\Reports - PC\2006\11-14-06\Griffin Ranch Landscaping\PC RPT SDP 06-876 GRIFFIN RANCH.rtf MANDATORY FINDINGS As required by Section 9.210.010 (Site Development Permits) of the Zoning Ordinance, findings to approve Site Development Permit 2006-876 are as follows: 1. Compliance with Zoning Code - The project is consistent with the Zoning Code, which requires water efficient landscaping, permanent automatic irrigation improvements, and a design which conforms to visibility standards, setbacks, and contributes to open space. 2. Architectural Design - The requested landscaping is compatible with the previously approved architectural designs. The landscaping plans and plant palette complement the approved architectural design. 3. Compliance with CEQA - This request was previously assessed in conjunction with Environmental Assessment 2004-526, which was certified by the City Council on January 4, 2005, and therefore, no further environmental review is needed. 4. Site Design - The site design of the project landscaping and amenities, including, but not limited to pedestrian, equestrian and bicycle ways, pedestrian amenities, corner visibility, and other site design elements, have been installed and are compatible with surrounding development and with the quality of design prevalent in the City, and provided in compliance with the Zoning Code requirements and the approved Griffin Ranch Specific Plan and Tract Map 32879. 5. Landscape Design — The location, type, size, color, texture, and coverage of plant materials will be designed so as to provide relief, complement buildings, visually emphasize prominent design elements and vistas, screen undesirable views, provide a harmonious transition between adjacent land uses and between development and open space. It will provide an overall unifying influence, enhance the visual continuity of the project, complement the surrounding project area and comply with City and CVWD water efficiency, ensuring efficient water use. 6. Compliance with the General Plan and Specific Plan - The project is in compliance with the General Plan and the approved Griffin Ranch Specific Plan in that the proposed landscaping for the approved residential development complies with General Plan development standards and is in conformance with the conceptual landscaping designs identified in the Specific Plana P:\Reports - PC\2006\11-14-06\Griffin Ranch Landscaping\PC RPT SDP 06-876 GRIFFIN RANCH.rtf RECOMMENDATION: Adopt Minute Motion 2006 , approving Site Development Permit 2006-876, subject to the recommended findings and attached conditions. Attachments: 1. Griffin Ranch Layout 2. Prototypical Landscaping Plans 3. ALRC Minutes of October 18, 2006 Prepared by: And w J. Mogensen As ociate Planner P:\Reports - PC\2006\11-14-06\Griffin Ranch Landscaping\PC RPT SDP 06-876 GRIFFIN RANCH.rtf MINUTE MOTION 2006- CONDITIONS OF APPROVAL - RECOMMENDED SITE DEVELOPMENT PERMIT 2006-876 TRANS WEST HOUSING ADOPTED: NOVEMBER 14, 2006 GENERAL 1. The applicant agrees to defend, indemnify and hold harmless the City of La Quinta ("City"), its agents, officers and employees from any claim, action or proceeding to attack, set aside, void, or annul the approval of this Site Development Permit. The City shall have sole discretion in selecting its defense counsel. The City shall promptly notify the applicant of any claim, action or proceeding and shall cooperate fully in the defense. 2. SDP 2005-876 shall comply with all applicable conditions and/or mitigation measures, which are incorporated by reference herein, for the following related approvals: • Environmental Assessment 2004-526 • Specific Plan 2004-074 • Site Development Permit 2006-853 . • Tentative Tract Maps 32879 & 34642 In the event of any conflict(s) between approval conditions and/or provisions of these approvals, the Community Development Director shall determine precedence. No development permits will be issued ,_until compliance with these conditions has been achieved. 3. Prior to the issuance of any landscaping plan approval by the City, the applicant shall obtain the necessary clearances and/or signatures from the following agencies, if required: • Public Works Department • Community Development Department • Riverside County Agricultural Commissioner • Coachella Valley Water District (CVWD) 4. The applicant is responsible for all requirements of the permits and/or clearances from the above listed agencies. When the requirements include approval of improvement plans, the applicant shall furnish proof of such approvals when submitting those improvement plans for City approval. 5. As per American Association of State Highway Transportation Officials (AASHTO) sight triangle design standards, plants located within sight triangles shall not consist of a height greater than 30 inches from the PAReports - PC\2006\1 1-1 4-06\Griffin Ranch Landscaping\sdp 2005-876 pc coa.doc MINUTE MOTION 2006- CONDITIONS OF APPROVAL - RECOMMENDED SITE DEVELOPMENT PERMIT 2006-876 TRANS WEST HOUSING ADOPTED: NOVEMBER 14, 2006 pavement surface and tree canopies shall not hang below 80 inches. 6. Final landscaping plans shall be revised so that groundcover (such as Lantana and Verbena, accent shrubs are excluded) shall be a minimum 5 gallon size. 7. Landscape areas shall have permanent irrigation improvements meeting the requirements of the CVWD. Use of lawn areas shall be minimized with no spray irrigation being placed within 18" of curbs along any streets. Sprinkler heads shall be placed 18" from curbs with turf between heads and curbs. However, if an 18" gravel strip is required adjacent to curb by CVWD the strip shall be meandering with some ground cover plant material in the widened gravel areas. 8. Front yard landscaping for each dwelling shall consist of, at minimum, two 36" box trees (i.e., a minimum 2.0 inch caliper measured three feet up from grade level after planting), ten 5-gallon shrubs, and groundcover. Palms may count as a tree if the trunk is a minimum six feet tall. Double lodge poles (two-inch diameter) shall be used to brace and stake trees. All shrubs and trees shall be irrigated by bubbler or emitters. To encourage water conservation, no more than 50% of the front yard landscaping shall be devoted to turf. 9. Wildflower seed mixes susceptible to weed control problems shall not be used in any hydro -seed operations on lots or other areas, as a dust control method. Any alternative seed mix to achieve erosion/dust control, with minimal weed growth, shall be approved by the Community Development Department. 10. Any ground -mounted mechanical equipment located in view from any street or common area shall be screened by dense landscaping, of a sufficient height to fully screen such equipment above its horizontal plane. 11. This Site Development Permit is valid for two years, unless an extension is applied for and granted by the Planning Commission pursuant to Section 9.200.080 of the Zoning Code. 12. A Community. Development Department application for Final Landscape Plan Check shall be submitted for final landscaping plans and reviewed per the Code and application requirements with final approval by the Community Development Director. P:\Reports - PC\2006\11-14-06\Griffin Ranch Landscaping\sdp 2005-876 pc coa.doc ATTACHMENT 3 MINUTES ARCHITECTURE & LANDSCAPING REVIEW COMMITTEE MEETING A Special meeting held at the La Quinta CityHall 78-495 Calle Tampico, La Quinta, CA October 18, 2006 zilo,"�00 a.m. CALL TO ORDER A. This meeting of the Architectural and ndscaping Review Committee was called to order at 10:07 a.m. b rincipal Planner Stan Sawa. B. Committee Members present: rank Christopher and Tracy Smith. It was moved and seconded Committee Members Christopher/Smith to excuse C/'e ber Bobbitt. Unanimously approved C. Staff preseanager Les Johnson, Principal Planner Stan Sawa and Etary Betty Sawyer. II. PUBLIC COMMEN III. CONFIRMATION OF THE AGENDA: Confirmed. IV. CONSENT CALENDAR: A. It was moved and seconded by Committee Members Bobbitt/Smith to approve the Minutes of September 20, 2006 as submitted. Unanimously approved. V. BUSINESS ITEMS: A. Site Development Permit 2006-876; a request of Trans West Housing for consideration of landscaping for typical residential units in Griffin Ranch located south of Avenue 54, east of Madison Street, north of Greg Norman Course, and west of Monroe Street. 1. Associate Planner Andy Mogensen presented the information contained in the staff report, a copy of which is on file in the Community Development Department. Staff introduced Marty Butler and Jerry Herman of Trans West Housing, and landscape architect Chuck Shephard who gave a presentation on the project. 2. Committee Member Christopher explained the City's reasoning for wanting to see less turf. Mr. Shephard stated their reasons r•\\Alannrq\ai ar�in_i a_na.nnr Architecture and Landscaping Review Committee October 18, 2006 for the landscape designs they were presenting were to retain control on the streetscape. They will have,turf-less front yards. 3. Committee Member Smith asked if they could have a complete turf backyard. Ms. Butler stated they will have to submit any rear landscaping plans as well to the architectural review board. 4. There being no further questions, it was moved and seconded by Committee Members Smith/Christopher to adopt Minute Motion 2006-031 recommending approval of Site Development Permit 2006-876, as recommended with the deletion of Condition No. 1. Unanimously approved.. B. Site Development Permit 2006-872; a request of Trans West Housing for con ' eration of landscaping plans for a proposed Clubhouse in Griffin Raftch located south of Avenue 54, east of Madison Street, north of Gre Norman Course, and west of Monroe Street. 1. Associate tanner Andy Mogensen presented the information contained in the staff report, a copy of which is on file in the Community D elopment Department. Staff introduced Marty Butler and Jer Herman of Trans West Housing, Chuck Shepherd landsca architect and Phillip Pekarek architect. Mr. Herman asked for t e flexibility of concrete roof tiles with the variety of colors. Th custom homes will have more clay and will be boosted. 2. Committee Member Chris\dthe ated it is one of the best architecturally designed bnd has no objections. Mr. Pekarek stated they havhe concrete tile on most buildings they are curreng due to the maintenance problem they have with thaking. Committee MemberChristopher asked where t clay tile would be used. Mr. Pekarek indicated the lth site plan. 3. There being no further questions, it was m ed and seconded by Committee Members Christopher/Smith Iadopt Minute Motion 2006-032 recommending approval of Sit Development Permit 2006-876, as recommended but .allowing the applicant the six color mix with concrete tile, as used in the residential development. Unanimously approved. r M/Pnnrmni arkin_ia.na nnr - 2 PH #C PLANNING COMMISSION STAFF REPORT DATE: NOVEMBER 14, 2006 CASE NO.: CONDITIONAL USE PERMIT 06-101 APPLICANT: LA QUINTA PLAYHOUSE REQUEST: CONSIDERATION OF TEMPORARY STRUCTURES TO CONDUCT SEASONAL LIVE PLAY PRODUCTIONS LOCATION: ' 78-059 CALLE ESTADO; BETWEEN DESERT CLUB DRIVE AND AVENIDA BERMUDAS IN THE LA QUINTA VILLAGE PROPERTY OWNER: THOMAS BERG GENERAL PLAN:. VILLAGE COMMERCIAL ZONING: VILLAGE COMMERCIAL ENVIRONMENTAL DETERMINATION: THE LA QUINTA COMMUNITY DEVELOPMENT DEPARTMENT HAS DETERMINED THAT THIS PROPOSAL IS CATEGORICALLY EXEMPT FROM ENVIRONMENTAL REVIEW PURSUANT TO PROVISIONS OF SECTION 15304 (CLASS 4) OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), IN THAT THE PROPOSED PROJECT INVOLVES MINOR TEMPORARY USE OF LAND HAVING NO NEGLIGIBLE OR PERMANENT EFFECTS ON THE ENVIRONMENT. SURROUNDING LAND USES: NORTH: CALLE ESTADO; ON -STREET PARKING SOUTH: ALLEY; RESIDENTIAL/COMMERCIAL USES EAST: VACANT LOT; ESTADO BUILDING WEST: EL RANCHITO RESTAURANT BACKGROUND: The 2006-2007 La'Quinta Playhouse season runs from October 20, 2006 to April 7, 2007. Live play productions take place inside a tent structure, with shows typically occurring Thursdays through Sundays. The shows begin at 7:30 pm on Thursday through Saturday evenings, and at 2:00 pm on matinee -only Sundays. Last season, the Planning Commission approved the Playhouse for set up on the special events lawn in Old Town La Quinta (CUP 05-093). This season, the Playhouse is proposed to be located on two vacant lots on the south side of Calle Estado in, the La Quinta Village (Attachment 1). Calle Estado and on -street parking are located directly to the north of the vacant lots. Another vacant lot and the Estado Building are located to the east, El Ranchito. restaurant to the immediate west, and an alley and residential and commercial uses to the south. A Temporary Use Permit (TUP 06-653) was applied for on July 31, 2006 and approved on September 21, 2006 by the Community Development Department, permitting play productions for the last two weekends in October and the first two weekends in November. The four weekends approved was the maximum number of shows allowed as part of the Temporary Use Permit process (LQMC Section'9.100.140), and was at - risk as the City concurrently processed the necessary Conditional Use Permit (CUP). The CUP application was not received in time to allow processing prior to the Playhouse's opening weekend. REQUEST: The applicant requests a Conditional Use Permit to allow the setup of a tent and associated temporary structures to hold a series of four play productions for the 2006- 2007 season, and potentially subsequent seasons until a permanent site is secured (Attachment 2). Approval of this Conditional Use Permit would allow the tent and structures to remain assembled throughout the entirety of the current play season (October, 2006 — April, 2007), be disassembled during the off-season, and then reestablished for two additional seasons. The Playhouse tent is constructed of white vinyl, measuring approximately 1,600 square feet (40 feet x 40 feet) and 20 feet in height. The maximum occupancy is 150, though seating has been established for approximately 100 persons. The tent has been placed approximately 30 feet from the Calle Estado sidewalk, 30 feet from the east and west property lines, and 26 feet from the rear alley. The primary entrance/exit faces Calle Estado accompanied by three secondary entrance/exits, one on each remaining side of the tent. During productions, the eastern exit is utilized as an emergency exit and the western exit as access to the garden area and restroom facilities. The rear exit is generally used only by production participants as a stage door. The interior of the tent includes staging, audio and lighting equipment, seating, and a carpeted floor. To the east of the proposed tent are two accessory trailers. The 8'x16' trailer, located closest to Calle Estado, is the dressing room, which includes men's and women's dressing areas, but does not include a restroom. The 8'x20' trailer, located closest to the alley, provides storage for sets, props, costumes, etc. Both trailers are skirted. Portable restroom facilities have been located near the southwest corner of the Playhouse site, which include one men's and one women's handicap -accessible comfort station. The applicant has installed brick pavers, deco rock and plants outside the tent for dust control, accessibility, and aesthetics. The brick pavers provide connection between Calle Estado and the main entrance, as well as along the front of the tent leading to the dressing room trailer, and in the area surrounding the western exit and restroom facilities. The deco rock is located in the area between the sidewalk and the brick pavers. Planters and potted plants have been placed at strategic locations throughout the Playhouse site. With the operation being temporary, all items will be removed from the site following the final play production in April. The applicant will then reestablish the site prior to the start of the following play season, which is scheduled for next October. ANALYSIS: The La Quinta Playhouse tent is proposed to be placed in a central location in the La Quinta Village and is expected to be complementary to nearby existing uses. The tent would be used for play productions during periods when most of the other neighboring businesses are closed. Most restaurants and some shops will remain open during the play productions, and could likely benefit from the increased number of visitors. Since the play productions will not occur during the normal business day (Monday — Friday, 8:00 a.m. to 5:00 p.m.), there should minimal effects on nearby businesses. With most neighboring businesses closed during play productions and multiple public parking areas located in close proximity, ample parking should exist to accommodate those attending a play while also leaving sufficient parking for other neighboring businesses. In addition to the City parking lot on the corner of Calle Montezuma and Avenida Bermudas, paved on -street parking spaces in the Village and Old Town La Quinta can accommodate over 200 cars (Attachment 3). If needed, the Old Town La Quinta lawn area on the southeast corner of Calle Tampico and Avenida Bermudas can be used for overflow parking, though it is located two blocks away. Due to an inadequate surface the La Quinta Playhouse will not be able to rely upon the subject property nor the vacant lot to the east for vehicle parking. The applicant has secured temporary power from Imperial Irrigation District. Thus, the need to use temporary generators has been eliminated, which was the sole source of power when located on the Old Town La Quinta lawn. This will minimize any potential noise impact upon neighboring properties. In addition, play productions do not rely upon amplification of any kind and all plays will end by no later than 10:00 p.m. The La Quinta Playhouse is a compatible use for the proposed area. Only minimal impacts on nearby businesses and the surrounding residential neighborhood are anticipated, and there is sufficient parking in the Village to support the use. Though the tent, temporary buildings, and portable restrooms certainly convey a temporary appearance, the applicant has provided aesthetic relief (pavers, plants, screening) to help soften this. Therefore, staff is recommending that this Conditional Use Permit be approved for the current 2006 — 2007 season, as well as up to two subsequent seasons (2007-2008 and 2008-2009), subject to certain conditions of approval. Public Notice This request was published in the Desert Sun newspaper on November 3, 2006, and mailed to all affected property owners and occupants within 500 feet of the tent site as required by Section 9.200.110 of the La Quinta Municipal Code. Public Aaencv Review A copy of this request has been sent to all applicable public agencies and City Departments on October 5, 2006. All written comments received are on file with the Community Development Department. Applicable comments received have been included in the recommended Conditions of Approval. STATEMENT OF MANDATORY FINDINGS: Findings to approve this request per Section 9.210.020.F of the City of La Quinta Zoning Code can be made and are contained in the attached Resolution. RECOMMENDATION: Adopt Planning Commission Resolution 2006-_, approving Conditional Use Permit 2006-101, subject to the attached Findings and Conditions of Approval. Prepared by: JAY MUss'stant anner Attachments: 1. Location map 2. Site Plan 3. Parking Study Results 4. Production Schedule 5. Letter from Georg & Katherine Fenady PLANNING COMMISSION RESOLUTION 2006- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING A CONDITIONAL USE PERMIT TO ALLOW TEMPORARY STRUCTURES TO CONDUCT SEASONAL LIVE PLAY PRODUCTIONS CASE NO.: CONDITIONAL USE PERMIT 2006-101 APPLICANT: LA QUINTA PLAYHOUSE WHEREAS, the Planning Commission of the City of La Quinta, California, did on the 14`h day of November, 2006, hold a duly noticed Public Hearing to consider. the request by La Quinta Playhouse for a Conditional Use Permit to allow temporary structures for live play productions this season and subsequent seasons at 78-059 Calle Estado in the La Quinta Village; and,. WHEREAS, said Conditional Use Permit has complied with the requirements of the "Rules to Implement the California Environmental Quality Act of 1970" as amended (Resolution 83-63), in that the Community Development Department has determined that the proposed Conditional Use Permit is exempt from CEQA review under Guidelines Section 15304 (Class 4); and, WHEREAS, at said Public Hearing, upon hearing and considering all testimony and arguments of all interested persons desiring to be heard, the Planning Commission did make the following mandatory findings to justify approval of said Conditional Use Permit: A. The public roadways surrounding the event area are capable of handling the anticipated traffic volumes generated from these events. No significant effects are anticipated which would be detrimental to the health, safety and public welfare of the community. B. These events are categorically exempt from environmental review under the California Environmental Quality Act (CEQA), under CEQA Guidelines, Section 15304(e). C. Temporary facilities such as restrooms, security, lighting, seating, fire and medical services, etc., will be provided and/or required to accommodate volunteers, employees, and event guests. D. The required conditions will ensure that tenants and residents within the surrounding area will not be. adversely affected by these events. Planning Commission Resolution 2006- Conditional Use Permit 2006-101 La Quints Playhouse November 14, 2006 NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of La Quinta, California, as follows: 1. That the above recitations are true and constitute the Findings of the Planning Commission in this case. 2. That it does hereby approve Conditional Use Permit 2006-101 for the reasons set forth in this Resolution and subject to the attached Conditions of Approval. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta Planning Commission, held on this the 14`" day of ,November, 2006 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: PAUL QUILL, Chairman City of La Quinta California ATTEST: DOUGLAS R. EVANS Community Development Director ' City of La Quinta, California PLANNING COMMISSION RESOLUTION 2006- CONDITIONS OF APPROVAL - RECOMMENDED CONDITIONAL USE PERMIT 2006-101 LA QUINTA PLAYHOUSE NOVEMBER 14, 2006 GENERAL 1. By holding these outdoor events, the applicant agrees to indemnify, defend and hold harmless the City of La Quinta, its agents, officers, and employees from any claim, action, or proceeding to attack, set aside, void, or annul the approval of this Conditional Use Permit. The City of La Quinta shall have the right to select its defense counsel at its sole discretion. The City of La Quinta shall promptly notify the applicant of any claim, action, or.proceeding and shall cooperate fully in the defense. 2. The applicant shall comply with all applicable provisions of the La Quinta Municipal Code (LQMC). 3. Permits for any temporary structures (e.g. tents exceeding 200 square feet and/or canopies exceeding 400 square feet), stages or open flame devices shall be obtained prior to their installation, Prior to the event set- up, please contact the La Quinta Building & Safety Department (760-777- 7012) and Riverside County Fire Safety (760-863-8886) for any additional requirements of the Fire Marshal. Fire lanes shall be established and/or maintained during the events. Separate permits shall be obtained for each season. 4. The La Quinta Playhouse shall contract with the Riverside County Fire Department for provision of services necessary to insure public safety, as determined by their agency through such contractual arrangements. All such contractual arrangements shall include coverage for all City properties, used in conjunction• with this event. For any additional requirements, please contact Riverside County Fire Safety at 760-863- 8886. The City shall have no responsibility, financial or otherwise, in establishment or implementation of such contractual obligations. 5. Any and all private security personnel contracted for these events shall be easily identifiable to the public by the provision of uniformed personnel. All designated private security personnel must be licensed by the State of California and possess a valid Private Security license. PARKING/CIRCULATION 6. No on -street public parking outside the event area may be reserved for valet parking services. All on -street public parking areas shall remain PLANNING COMMISSION RESOLUTION 2006- CONDITIONS OF APPROVAL - RECOMMENDED CONDITIONAL USE PERMIT 2006-101 LA QUINTA PLAYHOUSE NOVEMBER 14, 2006 available for public use. 7. If valet parking is proposed, the applicant shall not disrupt pedestrian or vehicular passage at the drop off area. The City reserves the right to restrict valet parking from the public rights -of -way. 8. The applicant shall coordinate with the Riverside County Sheriff's Department for any required event coordination especially if the Sheriff's Department requires any officer for traffic control prior to and/or after the event. 9. Roadways/traffic aisles to structures and activities in and around the event will be maintained accessible to emergency vehicles at all times. Parking monitors shall wear light-colored clothing and reflective vests as needed. Flash lights shall be used after dusk. 10. No parking is allowed on the Playhouse site or in the alley to the south of the Playhouse. MAINTENANCE 11. Any damage to public hardscape along the event boundaries shall be repaired as directed by the City Engineer. This includes but is not limited to sidewalks, curb and gutter, landscaping, pavement, and streetlights, especially within the Calle Estado parking lot and surrounding public streets. 12. The applicant shall provide dust mitigation measured to insure that all disturbed dirt surfaces are properly stabilized. 13. If used, portable generators shall be shielded to prevent accidental contact with guests. Extension cords shall be ground -secured to prevent tripping. Any lighting shall be directed away from surrounding residential properties. No generators shall be used during the hours of 10:00 pm and 7:00'am. 14. A building permit shall be obtained for temporary electric service and any other required items (e.g. bleacher, portable generators, etc.). Contact the Building and Safety Department at 760-777-7012 for permit requirements. 15. All temporary electrical wiring shall be secured to prevent physical hazards to the public and participants. Wiring/cords shall not be subjected to environmental or physical damage. PLANNING COMMISSION RESOLUTION 2006- CONDITIONS OF APPROVAL - RECOMMENDED CONDITIONAL USE PERMIT 2006-101 LA QUINTA PLAYHOUSE NOVEMBER 14, 2006 16. All lighting for the play productions shall be turned off within 30 minutes of the conclusion of the events. 17. Two gender specific ADA-compliant portable restroom facilities shall be provided, to accommodate participants and guests as required by the Building and Safety Department. The applicant shall illuminate the inside of each restroom facility. 18, If any ground excavation is required, please contact Underground Service Alert (USA) at 1-800-227-2600 or 1-800-422-4133 before digging. This service is free of charge provided USA is given two days notice prior to commencement of work. 19. Temporary trash receptacles and recycling containers shall be provided in and around the event area. The event area shall be left free of debris at the end of each day's activities. Contact Deborah McGarrey at Waste Management, 760-340-2113. MISCELLANEOUS 20. Each play season shall be limited to between the months of October and April. 21. Play productions shall end no later than 10:00 p.m. 22. The applicant shall provide the City with 20 copies of a contact person information sheet, listing all designated event liaisons and their contact information. Specifically, event management staff shall be identified, with their respective 24-hour contact phone numbers. 23. The following signs are approved for these events: Painted Marquee: A solid wood board no larger than 6'x3' attached to two 4x4 posts shall include the theater name. Theater Banner: A professionally printed canvas sign no larger than 8'x4' affixed to front of tent. Any additional signs for these events require a separate sign permit. 24. The tent, all temporary structures, facilities and amenities shall be removed and restored to original condition no .later than seven days following the final play production for the season. Any items proposed to remain during the off-season shall be approved by the Community Development Department. --ATTACHMENT 1 :3 CALLE TAMPICO -------- - ------- -- - FONDA -------------- f CALLE ESTADO A v x 0 RAN7 Ep-, L eL P-4N G K 17D P.ES T-i40 P6M,17" -La Quinta PlayRouse 2006-2007 Schedule ATTACHMENT 41 ILY ILY: "I Love You, You're Perfect, Now Change'... Dating, marriage, in-laws, infidelity ... these are just some of the issues that are hilariously skewered in this musical revue. TC4"Tuna Christmas"... Join the delightfiilly eccentric citizens of Tuna, the third smallest town in Texas, where the Lion's Club is too liberal and Patsy Cline never dies. See them attempt to cope with last minute seasonal traumas, Tuna -style! ri IWAIMNTI LM I LM I LM Showftr Thursday, Friday, _ *30 p.m. Sunday: Matinee tl; :00p.m. Key: Red indicates performance dates W&I LM: "Lend Me a Tenor"... This hilarious farce takes place in Cleveland's high society, circa 1930s, and tells of the Cleveland Opera Company and their fiamic push to get their production of Otello up. V1irt L31c h-Je GGR: "Gteng=y'�Iq=W... David Mamet's gritty, award winning play, unveiling the brutal, alpha dog world of real estate in the 1980's. www.LaQuintaPlayHouse.com * Email: LgPlayHouse@aol.com * Phone (760)360-9191 November 2, 2006 Re: PERMIT 2006-101 ATTACHMENT #5 u IS\ ►emu Vi NOVt'= .1 t! I� - 6 1� 2006 CITY Or LA QUINTA COMMUNITY DEVELOPMENT We have owned the property at 78-105 Cal le I stado as well as other property iDEPAWMENr LaQuinta for over 20 years. In general, we applaud the endeavor of the LaQuinta Playhouse. But! Having said that, not in a toot in one of the most beautiful and busy areas of LaQuinta! The city paid dearly to refurbish the area as a boulevard, with beautiful fountains and palm him. And you want to, and already have, stuck a tent in the midst of this beautiful desert oasis. No matter how you look at it, a tent is a tent! It creates a carnival -like atmosphere and is totally out of place. It will also add to an already major parking problem, even though most of the events are held at night. For one thing, 6 months out ofthe year is not what Icall ' emporarv!" Also, sanitary conditions will be far from ideal. With outside portable toilets and with that many people and cars there is bound to be refuse in the way of bottles, cans, food containers and general debris. I am sure this is not what the city fathers or the property owners who pay taxes had in mind for this outstanding section of the community. As I said before, we applaud the idea of playhouse, but let it be in a proper place, with a proper structure just like anyone else has to when starting an enterprise of any kind. We also feel that it is a bit of a mockery ofthe system, when rather than having an open discussion about the project, the tent is already up! ! ! Where was the public hearing?? We have a very strong suggestion, which 1 spoke with Mr. Wuu about. 1£ the city is so adamantly behind the project, why not let them put the tent on the Vast piece of land that the City Hall stands on. There is plenty of room and it would be on solid ground instead of creating havoc on a dirt floor. This would solve the problem and be a feather in the Cities hat to be behind a most worthy project, in the right place! If so, we would be happy to make a contribution. Regretfully, we will not be able to attend the hearing on November le, hence, this letter stating our position. We beg you to keep this most prestigious and ever growing part ofthe community in tact! Sincerely, Georg and Katherine Fenady (323) 466-5001 PH #D DATE: CASE NO: APPLICANT: ARCHITECT: LANDSCAPE ARCHITECT: REQUEST: I��Za_iIrT�I�`A ENVIRONMENTAL REVIEW: SURROUNDING LAND USES: GENERAL PLAN AND ZONING DESIGNATION: BACKGROUND: PLANNING COMMISSION STAFF REPORT NOVEMBER 14, 2006 SITE DEVELOPMENT PERMIT 2006-870 CRAFTSMEN HOMES KEVIN L. CROOK ARCHITECT, INC. RONALD GREGORY ASSOCIATES, ALSA CONSIDERATION OF ARCHITECTURAL, AND LANDSCAPING PLANS FOR THREE PROTOTYPICAL RESIDENTIAL PLAN TYPES FOR USE IN TRACT 32751 WEST OF JEFFERSON STREET SOUTH SIDE OF POMELO IN THE CITRUS COURSE PROJECT THE LA QUINTA COMMUNITY DEVELOPMENT DEPARTMENT HAS DETERMINED THAT THIS REQUEST IS CATEGORICALLY EXEMPT PER SECTION 15332 (IN -FILL DEVELOPMENT PROJECTS) OF THE GUIDELINES FOR IMPLEMENTATION OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND THERE ARE NO CHANGED CIRCUMSTANCES OR CONDITIONS PROPOSED WHICH WOULD TRIGGER THE NEED FOR PREPARATION OF ANY SUBSEQUENT ENVIRONMENTAL ANALYSIS. NORTH: LANDSCAPED COMMON AREA SOUTH: LANDSCAPED COMMON AREA EAST: JEFFERSON STREET WITH RESIDENCES IN MOUNTAIN VIEW COUNTRY CLUB BEYOND WEST: VACANT RESIDENTIAL LAND APPROVED FOR NEW HOMES IN THE CITRUS COURSE PROJECT LOW DENSITY RESIDENTIAL The project site is in the Citrus Course project on the west side of Jefferson Street, north of Avenue 52 (Attachment 1). The applicant has purchased Tract 32751, approved in February of 2005, which consists of 29 single-family lots adjacent to Jefferson Street south of Pomelo for construction of detached single-family residences. PAReports - PC\2006\11-,14-06\sdp 2006-870 craftsmen\sdp 2006-870 pc rpt.doc Immediately to the west are vacant lots for which prototypical residential plans were approved for Tahiti Partners in July of this year. PROJECT PROPOSAL: Applicable requirements: This request is subject to the standards in Section 9.60.300 (Compatibility review for partially developed subdivisions) of the Zoning Code. These standards are generally to ensure that infill development in existing subdivisions is compatible and not detrimental to surrounding development in the same subdivision. In summary, the applicable standards are: 1. The proposed residences are to be compatible with the surrounding residences. 2. The proposed residences shall fall within the size range of the existing residences. 3. A minimum 24" box size tree is to be provided in the front yard with total number of trees the same as previously constructed residences. Architecture: The applicant has submitted prototypical plans for three residential prototypical plans (Attachment 2). Each plan is designed with two front elevation treatments. Each plan provides for a small second level. Plan 1 has an option of a loft within the building envelope, while plans 2 and 3 provide an optional upstairs studio or casita. The plans utilize Spanish/early California style of architecture and are proposed to be between 2,952 and 4,194 square feet (with studio/casita) in size. The plans identify the building heights as 19'-6" (Plan 1) to 27'-8" (Plan 3 with studio/casita). Exterior plaster is proposed to be light to medium earth tones with contrasting earth tone trim and red/brown blends of one piece clay "S" roof tile. The stucco finish is not noted. Some plan elevations will use decorative stone accents, composite material shutters, exterior lights, wrought iron railings and metal accents. Garage doors are proposed to have the appearance of wood carriage -type doors. Landscaping: Preliminary typical front yard plans for the units and vehicular entry/retention basin landscaping plans have been submitted for the project. Typical front yard landscaping plans include a minimum of two 24"-36" box size trees, one and 5 gallon shrubs and a limited amount of turf. Plant materials identified appear to primarily be low and medium water users. Along Jefferson Street is an existing 6' ± high stucco perimeter wall installed with the original tract improvements in the early 1990's that is the eastern tract boundary. This wall extends across the rear of the eastern most residential lots and retention basin. A portion of the wall adjacent to the retention basin currently jogs out to the east, but is required by the Tentative Tract map conditions of approval to be relocated to be in line PAReports - PC\2006\11-14-06\sdp 2006-870 craftsmen\sdp 2006-870 pc rptAoc with the balance of the wall. The applicant has applied to the Public Works Department for a Substantial Conformance approval. A part of that request includes maintaining the wall as is. Additionally, a noise study is required as part of the tract map conditions to determine if the existing wall's height will need to be raised or rebuilt at a higher height in order to comply with our outdoor noise standards. On both sides of the entry area are retention basins that are landscaped to enhance the area. The bottoms of the retention basins will contain cobble and gravel and a few trees. Shrub, groundcover, including a small amount of turf and annual color will be planted around the street perimeter of the retention areas. The northerly two-thirds of the entry road area will have a three foot high retaining wall consisting of a combination of stucco and brick with a 3.5' high decorative wrought iron fence on top. The lower three foot stucco/brick retaining wall without the wrought iron will extend around .the northern and rear portions of the retention basins to provide additional storm water capacity. Decorative iron gates at the south end of each basin will provide access for maintenance. ARCHITECTURE AND LANDSCAPING REVIEW COMMITTEE (ALRC): The ALRC reviewed this request at its meeting of October 18, 2006, and on a 2-0 vote recommended approval of the request with conditions recommended by Staff (Attachment 3). ISSUES/ANALYSIS: The architectural plans as presented are well designed and comply with applicable zoning and development requirements. Existing residences in the Citrus project vary from approximately 2,400 to 5,000 + square feet in size. The proposed units fall within this range and are architecturally similar with the Spanish/Mediterranean theme prevalent in the project. The applicant has submitted the plans to the Citrus Homeowners Association and they have granted a preliminary approval of the plans. The wall relocation requirement as discussed herein may require some revision to the landscaping and affect the amount of storm water capacity in the area of the retention basin. However, it is not anticipated to be major. The design of the planting plans, with staff recommended conditions, has been determined to be acceptable by the Architecture and Landscaping Review Committee. PUBLIC NOTICE: This application was advertised in the Desert Sun newspaper on November 4, 2006. All property owners within 500 feet of the site were mailed a copy of the public hearing notice as required by the La Quinta Municipal Code. As of this writing, no comments have been received. PAReports - PC\2006\11-14-06\sdp 2006-870 craftsmen\sdp 2006-870 pc rpt.doc FINDINGS: The Findings as required by Section 9.210.010 (Site Development Permits) of the Zoning Code can be, made as noted below. 1. Architectural Design- The architectural design of the project, including, but not limited to the architectural style, scale, building mass, materials, colors, architectural details, roof style, and other architectural elements, are compatible with other plans approved for construction in the tract and other surrounding development in the City. 2. Compliance with CEQA- The La Quinta Community Development Department has determined that the request is categorically exempt per Section 15332 (In -Fill Development Projects) of the Guidelines for Implementation of the California Environmental Quality Act and there are no changed circumstances or conditions proposed which would trigger the preparation of any subsequent environmental analysis. I 3. Site Design- The site design of the project, including, but not limited to project entries, interior circulation, pedestrian, equestrian and bicycle ways, pedestrian amenities, and other site design elements have been established through approval of.Tract 24890 and Tract 32751 and is compatible with surrounding development and with the quality of design prevalent in the City. 4. Landscape Design- New home and project landscaping includes, but not limited to the location, type, size, color, texture, and coverage of plant materials will be designed so 'as to provide relief, complement buildings, visually emphasize prominent design elements and vistas, screen undesirable views, provide a harmonious transition between adjacent land uses and between development and open space.: It will provide an overall unifying influence, enhance the visual continuity of the project, complement the surrounding project area and comply with City and CVWD water efficiency, ensuring efficient water use. 5. Compliance with General Plan- The project is in compliance with the General Plan in that the property to be developed is designated for residences as proposed. Furthermore, the proposed residential units comply with the standards in Section 9.60.300 of the Zoning Code pertaining to compatibility review for partially developed subdivisions, as noted above. RECOMMENDATION: Adopt Minute Motion 2006- , approving Site Development Permit 2006-870 subject to the attached Conditions of Approval. P:\Reports - PC\2006\11-14-06\sdp 2006-870 craftsmen\sdp 2006-870 pc rpt.doc Attachments: 1. Location Map 2. Plan exhibits 3. ALRC minutes for the meeting of October 18, 2006 Transmitted by: `5aAAIA. Stan Sawa, Principal Planner PAReports - PC\2006\11-14-06\sdp 2006-870 craftsmen\sdp 2006-870 pc rpt.doc MINUTE MOTION 2006- CONDITIONS OF APPROVAL - RECOMMENDED SITE DEVELOPMENT PERMIT 2006-870 CRAFTSMEN HOMES DATE: NOVEMBER 14, 2006 GENERAL 1. The applicant agrees to defend, indemnify, and hold harmless the City of La Quinta (the "City"), its agents,. officers and employees from any claim, action or proceeding to attack, set aside, void, or annul the approval of this development application or any application thereunder. The City shall have sole discretion in selecting its defense counsel. The City shall promptly notify the developer of any claim, action or proceeding and shall cooperate fully in the defense.This approval is for the following model plans: 2. This approval is for the following model plans: Plan 1 A, 113, 1 B w/ loft Plan 2A, 213, 213 w/ granny flat Plan 3A, 36, 36 w/ granny flat 3. Prior to issuance of building permits for any of the units authorized by this approval, final working drawings shall be approved by the Community Development Director. 4. Guest houses/casitas', as defined in LQMC Section 9.60.100, are limited to one per lot/primary dwelling. A master Minor Use Permit for all guest house/casitas can be processed, subject tothe provisions of said Section as determined by the Community Development Director. . 5. This Site Development Permit is valid for two years, unless an extension is applied for and granted by the Planning Commission pursuant to Section 9.200.080 of the Zoning Code. 6. SDP 2006-870 shall comply with all applicable conditions and/or mitigation measures, which are incorporated by reference herein, for the following related approvals: • Tract 24890 • Tract 32751 PAReports - PC\2006\1 1-1 4-06\sdp 2006-870 craftsmen\sdp 2006-870 pc coa.doc MINUTE MOTION 2006- CONDITIONS OF APPROVAL - RECOMMENDED SITE DEVELOPMENT PERMIT 2006-870 CRAFTSMEN HOMES DATE: NOVEMBER 14, 2006 In the event of any conflict(s) between approval conditions and/or provisions of these approvals, the Community Development Director shall determine precedence. No development permits will be issued until compliance with these conditions has been achieved. 7. Prior to the issuance of any grading, construction, or building permit by the City, the applicant shall obtain the necessary clearances and/or permits from the following agencies, if required: • Fire Marshal • Public Works Department (Grading Permit, Improvement Permits) • Community Development Department • Riverside Co. Environmental Health Department • Desert Sands Unified School District • Coachella Valley Water District (CVWD) • Riverside County Agricultural Commissioner • Imperiallrrigation District (IID) • California Water Quality Control Board (CWQCB) • South Coast Air Quality Management District (SCAQMD) The applicant is responsible for all requirements of the permits and/or clearances from the above listed agencies. When the requirements include approval of improvement plans, the applicant shall furnish proof of such approvals when submitting those improvement plans for City approval. 8. The applicant shall submit the Citrus Club HOA comments to the Community Development Director prior to approval of final working drawings. 9. All roofing material shall be clay tile and randomly mudded. Roof tile shall be a type that permits mudding of tiles. 10. Stucco finish shall be smooth. 11. A no turf front yard option shall be provided for all types of lots. 12. Air conditioning compressors by Zoning Code requirements cannot be placed in sideyards unless a minimum 5 foot clearance between compressor and side property line is provided. P:\Reports - PC\2006\1 1-1 4-06\sdp 2006-870 craftsmen\sdp 2006-870 pc coa.doc MINUTE MOTION 2006- CONDITIONS OF APPROVAL - RECOMMENDED SITE DEVELOPMENT PERMIT 2006-870 CRAFTSMEN HOMES DATE: NOVEMBER.14, 2006 13. A Community Development Department application for Final Landscape Plan Check shall be applied for final landscaping plans and reviewed per the Code and application requirements with final approval by the Community Development Director. 14. As per American Association of State Highway Transportation Officials (AASHTO) sight triangle design standards, plants located within sight triangles shall not consist of a height greater than 30 inches from the pavement surface and tree canopies shall not hang below 80 inches. 15. Front yard landscaping for each dwelling shall consist of, at minimum, two 36" box trees (i.e., a minimum 2.0 inch caliper measured three feet up from grade level after planting), ten 5-gallon shrubs, and groundcover. Palms may count as a tree if the trunk is a minimum six feet tall,. Double lodge poles (two-inch diameter) shall be used to brace and stake trees. All shrubs and trees shall be irrigated by bubbler or emitters. To encourage water conservation, .no more than 50% of the front yard landscaping shall be devoted to turf. 16. Any ground -mounted mechanical equipment located iri view from any street or common area shall be screened by dense landscaping, of a sufficient height to fully screen such equipment above its horizontal plane. 17. Where garages and courtyard walls meet at the front of the unit, the wall shall be set back a minimum 6" from the face of the garage to minimize joint cracking. P:\Reports - PC\2006\11-14-06\sdp 2006-870 craftsmen\sdp 2006-870 pc coa.doc ATTACHMENT 1 ' '..' �.e -:�•�7„ as 9p} � Ags V gppeEE g F _ #9IQr AIR 4 q ,, fi 12 9 sfgafl g � I L q� q� q �a \T . o r m Ei7'y • Cl �r7 f�[; F6y r to � lift, m r # n" ADAMS STREET ATTACHMENT 3` Architecture and Landscaping Review Committee October 18, 2006 C. Site Development Permit 2006-870; a request of Craftsmen Homes for consideration of architectural and landscaping plans for three prototypical residential plans for use in Tract 32751 located on the south side of Pomelo and west of Jefferson Street in The Citrus. 1. Principal Planner Stan Sawa presented the information contained in the staff report, a copy of which is on file in the Community Development Department. Staff introduced Scott Shaddix of Craftsman Homes, Keven Latel architect for the project, and Ron Gregory landscape architect. 2. Committee Member Christopher asked if the non -turf option was removed because the HOA would not allow it. Mr. Shaddix stated they approached the HOA and took it to CVWD for approval to keep the turf. Committee Member Christopher asked the reasoning behind the wall requirement. Staff stated there was originally a tunnel that crossed over to the east side of Jefferson Street. It is now closed and a popout wall was allowed at that time. Staff determined the wall should be straight with a 20 foot setback. It is now the consensus of everyone that the wall should be straightened out. Planning Manager Les Johnson clarified it is to allow the 20 foot setback. Mr. Shaddix stated this is part of the retention area for the entire community. The purpose of maintaining the wall as it is, is to allow the volume they need. 3. Committee Member Smith asked why we changed our retention basins from grass to decomposed granite (DG). They are now becoming contaminated retention basins. Staff stated we have seen turf and no turf submitted and it is a maintenance issue with either grass or DG. The City's position has been on the side of irrigation. Committee Member Smith asked if it will be used for any type of recreational uses. Mr. Shaddix stated it will be an open space, but not open to the public. Staff noted it is fenced off and gated. Mr. Gregory stated that in regard to maintenance, they will look into some means to make it easier to maintain. Committee Member Smith noted that grass is the easiest method. 4. Committee Member Christopher agreed with the design of the house plans. 3 r•\\NPnnrq%AI ar�in_ia_na nnr Architecture and Landscaping Review Committee October 18, 2006 5. There being no further questions, it was moved and seconded by Committee Members Christopher/Smith to adopt Minute Motion 2006-033 recommending approval of Site Development Permit 2006-870, as recommended. Unanimously approved. VI. CORRESPONDENCE AND WRITTEN MATERIAL: None VII. COMMITTEE MEMBER ITEMS: None VIII. ADJOURNMENT: There being no further business, it was moved and seconded by Committee Members Smith/Bobbitt to adjourn this Special Meeting of the Architectural and Landscaping Review Committee to a Regular Meeting to be held on November 1, 2006. This meeting was adjourned at 10:44 a.m. on October 18, 2006. Respectfully submitted, BETTY J. SAWYER Executive Secretary r-M/Pnnrc�ni ari+n_+a_na nnr 4 PH #E STAFF REPORT PLANNING COMMISSION DATE: NOVEMBER 14, 2006 CASE NO.: RIGHT-OF-WAY VACATION 2005-014 STREET VACATION 2006-042 REQUEST: REPORT OF FINDING UNDER CALIFORNIA GOVERNMENT CODE SECTION 65402 THAT THE PROPOSED RIGHT-OF-WAY/STREET VACATION OF A + 3,117-FOOT LENGTH OF AVENUE 53 IS CONSISTENT WITH THE GENERAL PLAN LOCATION: PORTION OF AVENUE.53 WEST OF MONROE STREET APPLICANT: EAST OF MADISON, LLC. BACKGROUND: Pursuant to California Government Code Section 65402, the "Planning Agency" (City of La Quinta Planning Commission) shall make a finding that the proposed vacation is consistent with, the City's General Plan and Circulation Element for any street right-of-way or public easement being vacated by the City Council. , The right-of-way for this portion of Avenue 53 west of Madison Street was petitioned and accepted by the Board of Supervisors of Riverside County for public highways in the 51h Road District. Said right-of-way for public highway was a grant to Riverside County and not transferred in fee. Additionally, no street improvements were constructed along the proposed length of street vacation. This portion of right-of-way is specifically described in Attachment 1 and 2 and is not needed by other property owners for access, or improved accessibility. East of Madison, LLC., the developer of The Madison Club through which Avenue 53 traverses, requested vacation of the said portion of Avenue 53 pursuant to California Street and Highways Code Part 3 for Public Streets, Highways, and Service Easements Vacation Law, Section 8320-8325. The portion to be vacated will be incorporated in the Madison Club Development. No access to Avenue 53 is required by the Madison Club along the north and south side of the street. The portion of Avenue 53 to be vacated terminates at the easterly extent of a previously vacated portion of Avenue 53 by City Council Resolution 2000-164 for The Hideaway and begins at the entrance to Tract No. 31874, the Carmela Development. Avenue 53 will remain a public street from the Carmela entrance on the north side of Avenue 53 to Monroe Street. PAReports - P02006\11-14-06\Right-way\StaffReport.doe 1 of2 ENVIRONMENTAL CONSIDERATION: The proposed vacation is categorically exempt under Section 15305, and not subject to the California Environmental Quality Act (CEQA). PUBLIC AGENCY COMMENTS: On May 22, 2006 and September 18, 2006, staff mailed notices (first and second, respectively) to potentially affected public utility agencies and public agencies, respectively, informing them of the proposed vacation. If the utility companies respond with requests for easements to continue operation and maintenance of existing public utilities, a utility easement will be reserved. To date, no objection to the right-of-way Vacation has been received nor easements required. Coachella Valley Water District has requested that an existing Bureau of Reclamation easement for Irrigation Lateral No. 119.65 be maintained. FINDINGS: 1. The proposed right-of-way vacation will have no environmental effects that adversely impact the human population, either directly or indirectly because the street segment is currently unused by the public and inaccessible to vehicles; and secondly, the act of vacating the right of way will have no physical environmental effect. 2. The right-of-way vacation will not impact public utility agencies, provided easements are retained for the continued maintenance and operation of existing public utilities. RECOMMENDATION: Adopt Resolution 2006-_ finding that Right -of -Way Vacation 2005-014 and Street Vacation 2006-042 is -consistent with the La Quinta General Plan. Prepared by: BR AN CHING, Associate Engineer Attachments: 1. — Vicinity Map 2. — Plat Map PAReports - PC\2006\11-14-06\Right-way\StaffReport.doc 2 of2 PLANNING COMMISSION RESOLUTION 2006-_ A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA, THAT THE PROPOSED RIGHT-OF- WAY VACATION OF A + 3,117-FOOT LENGTH OF AVENUE 53 IS CONSISTENT WITH THE GENERAL PLAN CASE NO.: RIGHT OF WAY VACATION 2005-014 STREET VACATION 2006-042 WHEREAS, the Planning Commission of the City of La Quinta, California, did on the 14T" day of November, 2006, consider the request for right of way vacation of a portion of Avenue 53 west of Madison Street; and, WHEREAS, California Government Code Section 65402 requires that prior to streets being vacated by the City Council, the Planning Commission make a finding that the proposed right of way vacation is consistent with the City's General Plan; and, WHEREAS, said Planning Commission did make the following Mandatory Finding confirming that the proposed street vacation is consistent with the City's General Plan: 1. The proposed right of way vacation will have no environmental effects that adversely impact the human population, either directly or indirectly, because the street segment is currently unused by the public and inaccessible to vehicles; and secondly, the act of vacating the right of way will have no physical environmental effect. 2. The right of way vacation will not impact public utility agencies, provided easements are retained for the continued maintenance and operation of existing public utilities. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of La Quinta, California, as follows: 1. That the above recitations are true and constitute the findings of the Planning Commission in this case; 2. That it does find the proposed Right of Way Vacation 2005-014 and Street Vacation 2006-042, as shown on the Attachments 1 and 2, are consistent with the City's General Plan for the reasons set forth in this Resolution. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta Planning Commission, held on this 14T" day of November, 2006, by the following vote, to Wit: Resolution 2006 Right of Way Vacation 2005-014 Street Vacation 2006-042 November 14, 2006 AYES: NOES: ABSENT: ABSTAIN: PAUL QUILL, Chairman City of La Quinta, California ATTEST: DOUGLAS R. EVANS Community Development Director City of La Quinta, California is - PC\2006\1 1-1 4-06\Right-way\Reso.doc 2 of 2 i a A aIE � 1 ATTACHMENT 2 133ZI1S 308NflW � V7 y� w w N v .dry e' 0 LLIK.O mN U 4i J0 6�W D 00 2 Z d O. _ W O / W w 0 u! .� m a � < CQ 0£ ZA O U J h O ZO F ap W M N .r, ► 00 W► nEQ wi ,'h' j� n I►LiMn I I o iLl LL W M i zo ►I r� UT V N >- r Q Z I ~Mro U p Z: Q �MICI 0 u 0 ui m o� II d L 0 a a II � t0 Q J � � O O r . L ► N d. 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Q O Q u 0 /v z� z� ?� V OL 0 v u PH #F PLANNING COMMISSION STAFF REPORT DATE: NOVEMBER 14, 2006 CASE NO.: ZONING TEXT AMENDMENT 2006-088 APPLICANT: CITY OF LA QUINTA REQUEST: CONSIDERATION OF AN AMENDMENT TO CHAPTER 9, SECTION 9.140.080-SUPPLEMENTAL REGULATIONS OF THE LA QUINTA MUNICIPAL CODE REGULATING THE DEVELOPMENT AND USAGE OF FUTURE CONDOMINIUM HOTEL UNITS IN TOURIST COMMERCIAL DISTRICTS LOCATION PROPERTY OWNER: GENERAL PLAN/ ZONING DESIGNATIONS: ENVIRONMENTAL DETERMINATION: SURROUNDING LAND USES: BACKGROUND: CITY-WIDE NOT APPLICABLE NOT APPLICABLE THE COMMUNITY DEVELOPMENT DEPARTMENT HAS REVIEWED THIS PROJECT UNDER THE PROVISIONS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). THE LA QUINTA COMMUNITY DEVELOPMENT, DEPARTMENT HAS DETERMINED THAT THE AMENDMENT TO THE MUNICIPAL CODE IS EXEMPT PURSUANT TO CHAPTER 2.6, SECTION 21080 OF THE PUBLIC RESOURCES CODE, CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) STATUTES, AND SECTION 15061.(B)(3), REVIEW FOR EXEMPTIONS, OF THE CEQA GUIDELINES. NOT APPLICABLE In the last several years, the market for hotel development nationally, and in the Coachella Valley, has changed. It has become increasingly' difficult to finance and construct destination resort hotels. Most often, hotel operators require the facility be able to sell a portion or all of its units to individual investors, who have a right to use these units for a portion of each year, and who are either required or permitted to include their unit(s) in a hotel rental program for the balance of each year. This hybrid, known most commonly as a Condominium Hotel or Condo Hotel, poses special challenges for the City, particularly as they relate to long term operation and the Transient Occupancy Tax (TOT). Regarding operation, the Condo Hotel can become an operational problem if not properly managed, insofar as the absentee owners have little contact or control over the long term operation of the facilities. As relates to City revenues, the City collects TOT for hotel room rentals. TOT, however, can only be collected for stays of 30 days or less, as defined in our Municipal Code. For Condo Hotels, this becomes an issue, as owners and their guests can occupy units for longer periods, and the City risks not being able to collect fees for these longer stays. As a result, the City has in the past either conditioned projects individually, and/or entered into individual agreements with project applicants to allow the City to collect the equivalent of TOT for tourist stays of more than 30 days. As it has become clear that the Condo Hotel trend will continue, and the City will continue to be under pressure to approve additional projects, City staff has determined that an Amendment to the Zoning Code is required, in order to standardize the process for all future facilities, and eliminate the need for individual conditions of approval and/or agreements for each project proposed. The attached Amendment is intended to meet this need. The Amendment will apply .to every land use designation in which hotels would otherwise be allowed. It sets forth the requirements for a Condo Hotel, and enumerates the minimum standards for such facilities, to assure that a high level of quality is maintained. An application process is specified, as well as development standards. Minimum standards for the operators of these facilities are established, to assure they will be properly managed. The Amendment also establishes a system for reporting and collection of fees. Finally, the Amendment prohibits the conversion of existing hotels to Condo Hotel status, in order to assure the City that its TOT tax base will be protected for the long term. The City has evaluated this proposed Amendment and determined that it will not have any impacts on the environment. The Amendment is a vehicle to allow a condominium ownership program of future hotel properties. 'It does not change the General Plan or Zoning Ordinance regulations regarding the location of hotels within the City. Additionally, it does not modify any existing Zoning Ordinance development standards. It only deals with the type of ownership of hotels and reporting and collection of fees. Based upon this evaluation, the City has determined the project is exempt pursuant to Chapter 2.6,, Section 21080 of the Public Resources Code, California Environmental Quality Act (CEQA) Statutes, and Section 15061.(b)(3), review for Exemptions, of the CEQA Guidelines. Conclusion In conclusion, the proposed Amendment to the Zoning Code will allow the City to regulate a newly emerging land use, and assure the proper design, operation and maintenance of these facilities. The findings to support approval can be made. Public Notice This request was published in the Desert Sun newspaper on November 4, 2006, as required by Section 9.200.110 of the Zoning Code. To date, no letters have been received. STATEMENT OF MANDATORY FINDINGS: Findings to recommend approval of this request can be made and are contained in the attached Resolution. RECOMMENDATION: 1. Adopt Planning Commission Resolution 2006- recommending to the City Council approval of Zone Text Amendment 2006-088. Prepared by: Commur, tU Development Director PLANNING COMMISSION RESOLUTION 2006- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA, CALIFORNIA, RECOMMENDING TO THE CITY COUNCIL APPROVAL OF ZONING TEXT AMENDMENT 2006-088, ADDING SECTION 9.140.080 TO THE ZONING CODE, TO _REGULATE CONDOMINIUM HOTELS AND PROHIBIT THE CONVERSION OF EXISTING HOTELS INTO CONDOMINIUM HOTELS CASE NO.: ZONING TEXT AMENDMENT 2006-088 APPLICANT: CITY OF LA QUINTA WHEREAS, the Planning Commission of the. City of La Quinta, California, did on the 14' of November, 2006, hold a duly noticed Public Hearing for review of a Zoning Text Amendment to add Section 9.140.080 to regulate new Condominium Hotels throughout the City; and WHEREAS, said Zoning Text Amendment has complied with the requirements of "The Rules to Implement the California Environmental Quality Act of 1970" as amended (Resolution 83-63) in that the La Quinta Community Development Department has determined that the Amendment to the Municipal Code is exempt pursuant to Chapter 2.6, Section 21080 of the Public Resources Code, California Environmental Quality Act (CEQA) Statutes, and Section 15061(B)(3), Review for Exemptions, of the CEQA Guidelines; and WHEREAS, the Community Development Department published the public hearing notice in the Desert Sun newspaper on November 4, 2006, as prescribed by the Municipal Code; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons wanting to be heard, said Planning Commission did make the following mandatory findings recommending approval of said Zone Text Amendment: 1. The proposed Amendment is consistent with the ,General Plan, and provides for regulation of land uses otherwise permitted as hotels in various land use designations in the City. 2. Approval of the Amendment will not create conditions materially detrimental to the public health, safety and welfare, and will assure high quality development of an emerging land use in the City. Planning Commission Resolution 2006-_ Zoning Text Amendment 2006-088 November 14, 2006 SECTION 1. Section 9.140.080 is added to the La Quinta Municipal Code to read as follows: A. Purpose. The specific purposes of these regulations are to assure that Condominium Hotel projects are conditioned at the time of development approval in such a way as to ensure appropriate public health, safety, welfare and land use classifications and standards; to mitigate potential impacts of Condominium Hotels on traffic congestion, air quality, building design and safety, police, fire and emergency services; to assure other adequate public facilities; to allow Condominium Hotel development projects some financial flexibility subject to the approval of the City Council; to prohibit conversion of existing hotels to Condominium Hotels; and to provide the City with appropriate development and operational controls over Condominium Hotels. B. Definitions. The following definitions shall govern the construction and interpretation of this Section. 1. Condominium Hotel. A "Condominium Hotel" shall mean a "Hotel" or "Group Hotel" all or part of which constitutes a condominium project in which one or more of the Units are individually owned, but are intended to be available for "Transient" use (as those terms are defined in Section 3.24.020 of the La Quinta Municipal Code), when not being used by the Unit Owner. 2. Development Agreement. For purposes of this Section, the term "Development Agreement" shall mean any of the following: (1) a statutory development agreement entered into pursuant to Government Code sections 65864 et seq.; (2) a disposition and development agreement entered into between an applicant and the City's Redevelopment Agency; or (3) an owner participation agreement entered into between an applicant and the City's Redevelopment Agency. 3. Effective Date. The "Effective Date" shall . mean the date on which the ordinance adopting this Section becomes effective. 4. First Class Condominium Hotel. A "First Class Condominium Hotel" shall mean a Condominium Hotel where both of the following apply: (1) the Condominium Hotel has a brand Operator or an independent Operator that is experienced in the "Upscale Segment" or "Luxury Segment" , of the hospitality Planning Commission Resolution 2006-_ Zoning Text Amendment 2006-088 November 14, 2006, industry as defined by J.D. Power and Associates; and (2) the Condominium Hotel satisfies the published, requirements that will be sufficient for a ranking of no fewer than Three Stars in the most recent annual awards list published from time to time by AAA Travel Guides or by the Mobil Travel Guide. 5. Operator. "Operator" shall mean the entity designated by the owner of the Condominium Hotel or, if all of the common area of a Condominium Hotel is owned by a condominium owners' association, designated by such association, to manage the Condominium Hotel 6. Personal Use. "Personal Use" shall mean the use or occupancy of-a.Unit by an Owner or any non-paying guest of an Owner for whom the Owner may, and does, reserve its Unit. Use of a Unit arising out of an exchange program with an affiliated hotel property shall be considered Personal Use by the Owner. 7. Unit. "Unit" shall mean a condominium unit, as shown on a recorded condominium plan, which is located within a Condominium Hotel. 8. Unit Owner. "Unit Owner" or "Owner" shall mean an individual or entity that acquires any ownership interest in, and holds title to, one or more Units. C. Condominium Hotel Regulations. No person or entity shall construct or operate a Condominium Hotel within the City without first obtaining all necessary entitlements pursuant to this Section and pursuant to other applicable' provisions of the La Quinta Municipal Code. All other. provisions of the La Quinta Municipal Code, including, without limitation, Title 8 (Buildings and Construction), Title 13 (Subdivisions), and Title 9 (Zoning Code) shall be applicable to the construction and maintenance of Condominium Hotels; provided however, that the more specific provisions contained in this Section shall prevail over any general provisions set forth in the La Quinta Municipal Code. A Condominium Hotel shall be allowed as a conditionally permitted use, subject to the terms of this Section, and only within those zoning districts in which Hotels or similar tourist and vacation accommodations are expressly permitted either conditionally or as of right, pursuant to the terms of Title 9 (Zoning Code) and/or any applicable 'specific plan. Each application for a Condominium Hotel will be reviewed by the City's Planning Commission and City Council. Planning Commission Resolution 2006-_ Zoning Text Amendment 2006-088 November 14, 2006 If the Planning Commission recommends granting approval of the application, the City Council shall set notice of a public hearing to be held within forty five (45) days thereafter or such later date as may be set by the City Council. Approval shall be subject to required conditions necessary to carry out the provisions of this Section. D. Application for Condominium Hotel. An application for a Condominium Hotel shall include the following six (6) requirements, in addition to any other information that the City may determine is necessary to review the application. No Condominium Hotel may be approved without approval of all of the following requirements: 1. Development Agreement.. A proposed Development Agreement application, which shall provide for enforcement of all conditions and standards required by this Section. In addition to any other provisions that may properly be included within the Development Agreement, the parties may agree to terms and conditions that are different from, or in, addition to, and supersede, the provisions and requirements of this Section. The City shall include such terms as it deems necessary to ensure that the Condominium Hotel operates as the equivalent of a traditional hotel. The Development Agreement shall also include a draft Declaration of Covenants, Conditions and Restrictions pursuant to paragraph G below. 2. Conditions, Covenants and Restrictions ("CC&R's"). The CC&R's for the Units. 3. Environmental Assessment. Information necessary for the City to perform ,an environmental assessment of the proposed Condominium Hotel project, pursuant to the California Environmental Quality Act (Public Resources Code, § § 21080-21094 and its implementing regulations). 4. Subdivision Application. Each Condominium Hotel application shall be accompanied by an application for a tentative or vesting tentative map pursuant to Title 13 of the La Quinta Municipal Code. 5. Specific Plan. Each Condominium Hotel application shall be accompanied by an application for a specific plan or be within an approved specific plan area which permits such use, pursuant to Government Code sections 65450 et seq. Planning Commission Resolution 2006-_ Zoning Text Amendment 2006-088 November 14, 2006 6. Site Development Permit. Each Condominium Hotel application shall be accompanied by an application for a site development permit, pursuant to Section 9.210 of the Zoning Code. E. Development Standards. The Condominium Hotel shall comply with all the development, use, area, parking and other applicable standards of the zone or applicable specific plan in which the project is located. F. Condominium Hotel Standards, Conditions, and Requirements. In addition to the standards referenced in this Section, each Condominium Hotel is required to meet the following additional standards, conditions and requirements: 1. No Unit may be used as a full-time or permanent residence, except as set forth in the next paragraph. 2. No more than one (1) Unit in each Condominium Hotel may be used for the full-time or permanent residential occupancy by a person or family serving as the on -site manager of the Condominium Hotel. Such Unit must be owned by the owner or operator of the Condominium Hotel or the owners' association, and shall not be used for homestead purposes. 3. At its sole cost and expense, each individual Unit Owner may choose to hire any rental agent of its selection, or the Operator or an affiliate, for the purpose of advertising the rental availability of, and procuring potential renters for, the Owner's Unit. Unit Owners may also rent their Units themselves. When not being used for Personal Use, each Unit shall be available for rental as a Hotel accommodation. The Operator shall have the right, working through the Unit Owner or its designated rental agent, to book any unbooked room to fulfill demand, and to charge a reasonable booking fee for each such booking. 4. Hotel guests (whether Transient or Personal Use and not including any on -site manager) are prohibited from occupying or remaining in any Unit for more than twenty-nine (29) consecutive days, with a minimum seven (7) . day period intervening between each twenty-nine (29) consecutive day use period. 5. Personal Use shall not exceed (i) thirty (30) days in the aggregate during the period of November 1 through April 30; or (ii) sixty (60) days in any calendar year..., unless the owner Planning Commission Resolution 2006-_ Zoning Text Amendment 2006-088 November 14, 2006 engaging in such Personal Use satisfies all requirements for such excess use as set forth in the Declaration. 6. All Units shall be completely furnished with furniture, fixtures and equipment to the standards established by the owner or operator of the Condominium Hotel. 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 Condominium Hotel standard. 7. The proposed location, use, and design of the Condominium Hotel shall be consistent with the City's general plan, zoning ordinances, and any specific plan covering the area in question. 8. In accordance with the existing provisions of Chapter 3.24 of the La Quinta Municipal Code, every Condominium Hotel shall be subject to the City's transient occupancy tax requirements, as may be amended from time to time.. The Unit OwneFs inOwner of a Condominium Hotel Unit shall receive golf and other benefits which are available to residents of La Quinta on the same terms, and subject to the same conditions, as are applicable to such residents. 9. Any proposed Condominium Hotel that will not, as proposed, qualify as a First Class Condominium Hotel shall not be eligible to operate as a Condominium Hotel in the City of La Quinta. G. Provisions for Declaration. The Development Agreement submitted with the Condominium Hotel application shall include a draft Declaration of Covenants, Conditions and Restrictions ("Declaration") (which shall be separate and apart from the CC&Rs required to create the Units as condominiums pursuant to California law) which must be approved by the Community Development Director and the City Attorney prior to final approval of the Condominium Hotel application, and thereafter recorded against the Condominium Hotel in the Riverside County Recorder's Office. The Declaration shall include the following provisions: 1. The Declaration shall require the Units to be included within a Hotel, and (other than the Unit occupied by an on -site manager) made available as a Hotel accommodation when not being used for Personal Use. Planning Commission Resolution 2006- Zoning Text Amendment 2006-088 November 14, 2006 2. The Declaration shall require that the Operator manage the Units for the Unit Owners pursuant to the Operator's then - standard form of agreement, and provide to the Condominium Hotel, the Property, and the Occupants and Owners of the Units, on a seven (7) day a week basis, any or all "on property" services commonly provided at First Class Condominium Hotels and Resorts, including without limitation, such services as front desk check -in and check-out services (including electronic keys), routine housekeeping, laundry and dry cleaning, room service, catering and other food and beverage services, spa services, concierge services, parking and bellman services to the Unit Owner and the Unit Owner's guests. The availability and right to use --of such services shall be conditioned upon payment of such charges or fees as may be imposed generally on hotel guests As to the availability and right to use services such as front desk check -in and use of resort pools lobbies, recreational facilities etc., which are not separately charged to Hotel guests use will be conditioned upon the payment of such fees as are determined by the Operator to be appropriate to attributable to each Unit within the Hotel. The Operator shall have the exclusive right to restrict and control access to any and all shared facilities within the Condominium Hotel, provided the same does not restrict a Unit Owner's right of access to her, his or its Unit, except that Unit access shall be subject to mandatory registration at the Hotel front desk to obtain a key to the Unit, which key shall be an electronic key. The Operator's management obligations shall also include upkeep and repair of the interior of each Unit, and monitoring and managing repair and replacement of furniture, fixtures and equipmentboth at the Unit Owner's sole cost and expense. 3. The Declaration shall require the Operator to' provide a quarterly report to the City that contains all of the following information on each Unit: (a) the number of said Unit; (b) the name, address and telephone number of the Owner of the Unit; (c) whether the Operator is and has been the rental agent for said Unit during the immediately preceding calendar quarter; (d) the Personal Use during the immediately preceding calendar quarter; (e) the name and address of any occupant of the Unit (other than the Owner) whose occupancy exceeded the twenty-nine (29) day maximum; and (f) the TOT that has been collected by Planning Commission Resolution 2006-_ Zoning Text Amendment 2006-088 November 14, 2006 the Operator and remitted to the City for use. of said Unit during the immediately preceding calendar quarter. 4. The Declaration shall require the Condominium Hotel owner or, if none, the Condominium Hotel's owner's association to hire a qualified professional Operator to manage, maintain and operate all portions of the Condominium Hotel in a manner consistent with the First Class Condominium Hotel Standard required by this Section. The Operator shall have at least five (5) consecutive years of experience in the hotel management business in hotels that meet the First Class Condominium Hotel standard and have no fewer than ten (10) other properties (each in separate cities, or distinct and separate projects in any given city,, nationally or internationally) under current management. The Condominium Hotel Owner or owner's association, as the case may be, shall provide the City with appropriate documentation to demonstrate that the proposed Operator meets the requirements of this Subsection, to be approved by City staff prior to issuance of a certificate of occupancy for the Condominium Hotel. Upon request by the applicant, the City Manager may waive the experience standards required above upon finding that the proposed Operator has comparable substitute experience and qualifications. The Declaration shall include provisions regarding proposed changes in the Operator. 5. The Declaration shall give the Condominium Hotel Owner, Operator, and the City the right, power and obligation to enforce the First Class Condominium Hotel standard including, without limitation, the right to enter any portion of the Condominium Hotel, and any individual Condominium Hotel Units, to cure, or cause the Unit Owner to cure, any failure to meet the First Class Condominium Hotel standard; and shall permit the enforcement by the City, in its discretion, of this Section and the Declaration. 6. The Declaration shall provide that Hotel guests (whether Transient or Personal Use and not including any on -site manager) are prohibited from occupying or remaining in any Unit for more than twenty-nine (29) consecutive days, with a minimum seven (7) day period intervening between each twenty-nine (29) consecutive day use period.. Planning Commission Resolution 2006- Zoning Text Amendment 2006-088 November 14, 2006 7. The Declaration shall provide that Personal Use shall not exceed (i) thirty (30) days in the aggregate during the period of November 1 through April 30; or (ii) sixty (60) days in any calendar year-. unless provisions for such excess use are 8. Subject to applicable California general law and Department of Real Estate regulations, and unless otherwise provided in the Development Agreement the Declaration shall provide that the obligation to pay any fees or changes provided for in the Development Agreement shall be secured by a lien in favor of the City encumbering the Units for the amount owed, including any permitted penalties or interest, and that the City shall have the right, but not the duty, to foreclose on any such liens through equitable or legal proceedings. 9.' The Declaration shall provide that it shall not be amended without the prior written appFevalconsent of the City. H. Reporting and Inspection. Upon request of the City Manager, each Owner, the Condominium Hotel association and .the Operator shall maintain, on -site, and regularly make available to the City and its employees. and agents such information, books, records, and documentation, including all records relating to Personal Use and Transient use of each Unit, and also shall allow reasonable access to individual Units, as the City finds necessary to have or review in order to ensure that the City may determine and enforce the Condominium Hotel's compliance with this Section and other applicable City laws, regulations, the Condominium Hotel conditions, the Development Agreement, and the Declaration. The original and, upon each change, every subsequent Operator shall immediately advise the Community Development Director of its name, qualifications, address, telephone number and the name of a contact person. Conversions. An express purpose of these regulations is to preserve and enhance the City of La Quinta's existing Hotel inventory. All existing Hotels are prohibited from converting to Condominium Hotels from and after the Effective Date. Thereafter, no other conversions to Condominium Hotels shall be allowed in any zone. Planning Commission Resolution 2006- Zoning Text Amendment 2006-088 November 14, 2006 J. Prohibited Units. No provision herein shall be deemed to permit a timeshare, fractional or other vacation ownership unit if otherwise prohibited by the La Quinta Municipal Code. SECTION 2. SEVERABILITY. The provisions of this Ordinance shall be severable, and if any clause, sentence, paragraph, subdivision, section, or part of this Ordinance shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section, or part thereof directly involved in the controversy in which such judgment shall have been rendered. SECTION 3. LEGAL CONSTRUCTION. The provisions of this Ordinance shall be construed as necessary to effectively carry out its purposes, which are hereby found and declared to be in furtherance of the public health, safety and welfare. SECTION 4. All ordinances or parts of ordinancesin conflict with the provisions of this Condominium Hotel Zoning Ordinance are hereby superseded by this Ordinance, to the extent they are inconsistent with this Ordinance. SECTION 5. EFFECTIVE DATE. This Ordinance shall take full force and effect and be in force 30 days after passage. SECTION 6. PUBLICATION. The City Clerk is directed to publish this Ordinance in the manner and in the time required by law. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of La Quinta, California, as follows: 1 . That the above recitations are true and constitute the findings of the Planning Commission in this case.. 2. That the Planning Commission does hereby recommend approval of Zoning Text Amendment 2006-088, adding Section 9.140.080 to the Municipal Code, as contained in the attached Exhibit "A", to the City Council for the reasons set forth in this Resolution. Planning Commission Resolution 2006- Zoning Text Amendment 2006-088 November 14, 2006 PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta Planning Commission, held on the 14" day of November, 2006, by the following vote, to wit: NOES: . ABSENT: L1Rb911IFe1IkiA PAUL QUILL, Chairman City of La Quinta, California ATTEST: DOUGLAS R. EVANS Community Development Director City of La Quinta PH #G PLANNING COMMISSION STAFF REPORT DATE: NOVEMBER 14, 2006 CASE NO.: DEVELOPMENT AGREEMENT 2006-012 APPLICANT: CITY OF LA QUINTA REQUEST: CONSIDERATION OF A DEVELOPMENT AGREEMENT ESTABLISHING THE FEES ASSOCIATED WITH CONDO -HOTEL OCCUPANCY AT THE PROPOSED HOTELS AT SILVERROCK RESORT AND VESTING IN THE DEVELOPER CERTAIN RIGHTS TO DEVELOP THE PROJECT. LOCATION: SOUTHWEST CORNER OF JEFFERSON STREET AND AVENUE 52. PROPERTY OWNER: CITY OF LA QUINTA REDEVELOPMENT AGENCY GENERAL PLAN/ ZONING DESIGNATIONS: TOURIST COMMERCIAL ENVIRONMENTAL DETERMINATION: THE COMMUNITY DEVELOPMENT DEPARTMENT HAS REVIEWED THIS PROJECT UNDER THE PROVISIONS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). THE LA QUINTA COMMUNITY DEVELOPMENT DEPARTMENT HAS DETERMINED THAT THE PROPOSED PROJECT WAS PREVIOUSLY REVIEWED AS PART OF THE MITIGATED NEGATIVE DECLARATION FOR THE SILVERROCK RESORT SPECIFIC PLAN (EA NO. 2002-453), AND ITS ADDENDUM, APPROVED BY THE CITY COUNCIL UNDER RESOLUTION NO. 2006-082. CONDITIONS HAVE NOT CHANGED, THE PROJECT IS IN SUBSTANTIAL CONFORMANCE WITH THE SPECIFIC PLAN, AND NO FURTHER ENVIRONMENTAL REVIEW IS REQUIRED (PRC SECTION 21166). SURROUNDING LAND USES: NORTH: SOUTH: EAST: WEST: BACKGROUND: GOLF COURSE, AVENUE 52 GOLF COURSE, AVENUE 54 GOLF COURSE, JEFFERSON STREET GOLF COURSE, OPEN SPACE The SilverRock project includes not only the existing golf course, but also public and cultural facilities, a commercial component, a public park, and hotels. All are described in the recently approved SilverRock Specific Plan. As part of the long term development effort, the City has been negotiating with a private developer to undertake the development of the commercial component, and the hotels (the "Project"). This negotiation process has led to the need for certain agreements between the City and the developer, including the Development Agreement before the Planning Commission at this time. The SilverRock Specific Plan divides the site into a number of Planning Areas, including future golf course facilities, public and cultural areas, a public park, and resort commercial facilities. The resort commercial facilities'. include the following Planning Areas: • Planning Area 3, which allows the development of a 225 unit/260 keys boutique hotel on 13 acres; • Planning Area 4, which allows a resort hotel and casitas totaling 405 units/520 keys on 30 acres; and • Planning Area 5, which allows the development of 160,000 square feet of mixed use resort retail on nine acres. As the Planning Commission is aware, the Specific Plan is the first step in the entitlement process, which is followed by site -specific designs for individual projects. As part of the development process, the City has been in negotiations with a private developer to build out Planning Areas 3, 4 and 5. The first step in this long term relationship is to establish the responsibilities of the City and the developer for different parts of the projects. The Development Agreement under consideration at this time is one of these steps. A Development Agreement is a binding agreement between both parties for the purpose of establishing certainty in the development. The hotel component of the Planning Areas includes condo -hotel units. These units will be sold to individuals for their use, and may also be made available for rental through the hotels, or rented on a short term basis by individual owners. The Development Agreement is being developed to (i) vest in the developer certain rights to develop the Project in accordance with the terms of the Development Agreement, the Specific Plan, a disposition and development agreement between the Developer and the La Quinta Redevelopment Agency, and other documents, entitlements, and associated conditions, all as referenced in the Development Agreement; and (ii) provide for the collection and remittance to the City of fees for (a) condo -hotel units which fail to generate specified levels of Transient Occupancy Tax ("TOT"), and (b) all "fractional" units (including timeshare units). The City collects TOT for hotel rooms, but does not have a standard,fee collection system for condo -hotel or fractional units. As the Commission is aware, the City has in the past established individual agreements for the payment of this type of fee on a case -by -case basis. The Development Agreement between the City and LDD SilverRock, LLC, attached to this staff report, establishes the program to collect fees that will be paid by this Project. The Development Agreement also limits the time owners can occupy their units on an annual basis, including during the "high season" (i.e., November 1 — April 30), limits the number of consecutive days owners may occupy their unit, and establishes an "excess use" fee for stays beyond such time frames, which will be paid to the City, based on the size of the unit. Without the proposed Development Agreement, the City, would have no other means at this time to collect the equivalent of TOT from short term stays in units within the Project, and would have the potential to lose considerable revenues in the long term. The Development Agreement complies with the State statutes and zoning regulations for the formation of a Development Agreement and further provides for development requirements. The Development Agreement requires annual reviews in accordance with State and local requirements. Conclusion In conclusion, the requested Development Agreement assures the City of long term revenues associated with the development of condo -hotel and similar units within the SilverRock Resort, thereby providing the City with added economic security. The findings to support approval of the project can be made.' Public Notice This request was published in the Desert Sun newspaper on November 3, 2006, and mailed to all affected property owners and occupants within 500 feet of the project site as required by Section 9.200.110 of the Zoning Code. To date, no letters have been received. STATEMENT OF MANDATORY FINDINGS: Findings to recommend approval of this request can be made and are contained in the attached Resolution. RECOMMENDATION: 1. Adopt Planning Commission Resolution 2006- recommending to the City Council approval of Development Agreement 2006-012. Attachments: 1. Development Agreement Prepared ns ✓elopment Director ATTACHMENT #1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253` Attn: Citv Clerk Space Above This Line for Recorder's Use (Exempt from Recording Fee per Gov't Code § 6103 and 27383) DEVELOPMENT AGREEMENT by and between CITY OF LA QUINTA and LDD SILVERROCK, LLC 882/015610-0084 _ 750537.03 a11/09i06 -1 TABLE OF CONTENTS Page 1.0 GENERAL...................................................................................:....................................2 1.1 Term......................................................................................................................2 1.2 Effective Date........................................................................................................3 1.3 Amendment or Cancellation.................................................................................3 1.4 Termination...........................................................................................................3 1.5 Definitions.............................................................................................................3 2.0 DEVELOPER'S RIGHTS AND LIMITATIONS REGARDING CONSTRUCTION OF THE PROJECT...........................................................................6 2.1 Right to Develop...................................................................................................6 2.2 Additional Applicable Codes and Regulations.....................................................7 2.3 Permitted Density, Height and Use Limitations...................................................7 3.0 DEVELOPER'S OBLIGATIONS....................................................................................7 3.1 Development and Operation of the Project...........................................................7 3.2 Conditions of Approval; Mitigation Monitoring Program....................................8 3.3 Declaration of Covenants, Conditions and Restrictions.......................................8 3.3.1 Recordation of City Declaration of CC&Rs..............................................8 3.4 Sign Agreements............................................................. :..................................... 8 3.5 Maintenance Agreements ................................................ :..................................... 9 3.6 Water Agreements.................................................................................................9 3.7 Other Fees and Charges; Assessment Appeals.....................................................9 3.8 Dedications and Improvements......................................::.....................................9 3.9 Indemnification...................................................................................................10 3.10 Insurance..................................................... :....................................................... 10 4.0 CITY'S OBLIGATIONS................................................................................................12 4.1 Scope of Subsequent Review/Confirmation of Compliance Process.................12 4.2 Project Approvals Independent...........................................................................12 4.3 Review for Compliance.......................................................................................12 4.4 City Ground Lease..............................................................................................13 5.0 DEFAULT; REMEDIES; DISPUTE RESOLUTION....................................................13 5.1 Notice of Default.................................................................................................13 5.2 Cure of Default....................................................................................................13 5.3 City Remedies......................................................... ......... ................................... 13 5.4 Developer's Exclusive Remedy..........................................................................14 6.0 MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE.................................14 6.1 Encumbrances on the Project Site......................................................................14 6.2 ' Mortgage Protection.......................................................::...................................14 6.3 Mortgagee Not Obligated....................................................................................14 6.4 Notice of Default to Mortgagee; Right of Mortgagee to Cure ............................15 882/015610-0084 _ 750537.03 at 1/09/06 _1 Page 7.0 TRANSFERS OF INTEREST IN SITE OR AGREEMENT......:..................................15 7.1 Transfers of Interest in Site or Agreement..........................................................15 7.1.1 Transfers of Interest in Site or Agreement Prior to Agency's Issuance of a Release of Construction Covenants.:.................................15 7.1.2 Transfers of Operational Obligations..................:...................................16 7.1.3 Assignment and Assumption of Obligations..........................................16 7.2 Successors and Assigns ................................................... .................................... 16 7.3 Assignment by City...............:........................................:....................................17 8.0 MISCELLANEOUS ...................................................................:...................................17 8.1 Notices.............................................................................:...................................17 8.2 Force Majeure..................................................................................................... 18 8.3 Binding Effect.....................................................................................................18 8.4 Independent Entity.............................................................................................. 18 8.5 Agreement Not to Benefit Third Parties.............................................................18 8.6 Covenants..................................................................:.........................................18 8.7 Nonliability of City Officers and Employees.....................................................19 8.8 Covenant Against Discrimination.......................................................................19 8.9 Amendment of Agreement..................................................................................19 8.10 No Waiver...........................................................................................................19 8.11 Severability.........................................................................................................19 8.12 Cooperation in Carrying Out Agreement..............:.............................................19 8.13 Estoppel Certificate.........................................................:...................................20 8.14 Construction........................................................................................................20 8.15 Recordation.........................................................................................................20 8.16 Captions and References..................................................................................... 20 8.17 Time:................................................................................................................... 20 8.18 Recitals & Exhibits Incorporated; Entire Agreement.........................................20 8.19 Exhibits........................................................................................................... :... 21 8.20 Counterpart Signature Pages . .......................................... .................................... 21 8.21 Authority to Execute...........................................................................................21 8.22 City Approvals and Actions................................................................................21 8.23 Governing Law; Litigation Matters.................................................................... 21 8.24 No Brokers..........................................................................................................22 882/0156M0084 750537.03 al 1/09106 -11- DRAFT DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement") is entered into as of the day of , 2006 ("Reference Date"), by and between the CITY OF LA QUINTA, a California municipal corporation and charter city organized and existing under the Constitution of the State of the California (the "City"), and LDD SILVERROCK, LLC, a Delaware limited liability company (the "Developer"), with reference to the following: RECITALS. A. Government Code Sections 65864-65869.5 ("Development Agreement Act") authorize the City toenter into a binding development agreement for the development of real property within its jurisdiction with persons having legal or equitable interest in such real property. B. Pursuant to Section 65865 of the Government Code, ,the City has adopted its Development Agreement Ordinance (La Quinta Municipal Code Section 9.250.030) establishing procedures and requirements for such development agreements ("Development Agreement Ordinance"). C. Prior to or concurrently with the execution of this Agreement, Developer has entered into a Disposition and Development Agreement (the "DDA") with the La Quinta Redevelopment Agency ("Agency"), pursuant to which (1) the Agency, subject to the terms and conditions set forth in the DDA, has agreed to sell to the Developer, in multiple phases, certain real property located within the City at the southeast intersection of Jefferson Street and Avenue 52 which is legally described in Exhibit A-1 attached hereto and shown on the Site Map attached hereto as Exhibit A-2 (the "Site"); and (2) the Developer has agreed to construct on the Site the "Project," which will consist of a commercial development, and other permitted uses. The Project is more fully described in, and subject to (i) this Agreement, (ii) the SilverRock Resort Specific Plan, also known as Specific Plan 06-080, which was amended by Resolution No. 2006-083, which resolution was duly adopted by the City Council on July 18, 2006 (the "Specific Plan"); (iii) the DDA, (iv) the Mitigated Negative Declaration prepared for the Project, approved by the Agency on May 15, 2002, by Agency Resolution 2002-09, as amended by the Addendum to Mitigated Negative Declaration, approved by the City Council on July 18, 2006, by City Council Resolution No. 2006-082 (collectively, the "Revised Mitigated Negative Declaration"); (v) any future Site Development Permits issued for the Project, including all conditions of approval attached thereto (collectively, the "Project Site Development Permits"); and (vi) the conditions of approval associated with each and all of the foregoing approvals (collectively, the "Conditions of Approval"). The documents described in the foregoing clauses (i)-(vi) are collectively referred to herein as the "Development Plan," and are, or when approved or issued shall be, on file with the City Clerk. D. By virtue of the DDA, as of the execution of this Agreement, the Developer has an equitable interest in the Site. By its execution of the consent form attached to this Agreement, the Agency consents to recordation of this Agreement against the Site. E. Consistent with Section 9.250.030 of the La Quinta Municipal Code, City and Developer desire to enter into a binding agreement for purposes of (i) obligating Developer to 882/01561M084 _ 750537.03 a11/09/06 -] DRAFT enter into and record, against each Parcel a Declaration of Covenants, Conditions and Restrictions that sets forth certain requirements of the owners of (a) the Condominium Hotel Units to pay certain resort fees if their unit fails to generate specified levels of Transient Occupancy Tax, and (b) the Fractional Units to pay a Resort Fee; (ii) requiring the Developer to enter into maintenance agreements with the Agency or City obligating the Developer to maintain certain portions of the golf course lakes located or to be located adjacent to the Property and certain roadways, all as depicted on Exhibit "B" hereof, which is attached hereto and incorporated herein by this reference (collectively, the "Public Improvements"); (iii) requiring the Developer to enter into water agreements and signage agreements; and (iv) setting forth the extent to which Developer may construct, develop, use and operate the Project. F. Among other purposes, this Agreement is intended to be, and shall be construed as, a development agreement within the meaning of the Development Agreement Act. This Agreement will eliminate uncertainty in planning for and secure. the orderly development of the Project, ensure a desirable and functional community environment, provide effective and efficient development of public facilities, infrastructure, and services appropriate for the development of the Project, and assure attainment of the maximum effective utilization of resources within the City, by achieving the goals and purposes of the Development Agreement Act. In exchange for these benefits to City, Developer desires to receive the assurance that they may proceed with development of the Project in accordance with the terms and conditions of this Agreement and the Development Plan, all as more particularly set forth herein. G. The City Council has determined that the Project and this Agreement are consistent with the City's General Plan and the Specific Plan, including the goals and objectives thereof. H. All actions taken by City have been duly taken in accordance with all applicable legal requirements, including the California Environmental Quality Act (Public Resources Code Section 21000, et seq.) ("CEQA"), and all other requirements for notice, public hearings, findings, votes and other procedural matters. I. On 2006, the City Council adopted its Ordinance No. approving this Agreement. AGREEMENT: NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and legal sufficiency. of which is hereby acknowledged, the parties do hereby agree as follows: 1.0 GENERAL 1.1 Term. The term of 'this Agreement shall commence on the Effective Date hereof and shall continue for fifty (50) years thereafter, unless said term is otherwise terminated, modified, or extended by circumstances set forth in this Agreement or by mutual consent of the parties hereto after the satisfaction of all applicable public hearing and related procedural requirements. 982/015610-0084- 750537.03 all/09/06 - ... DRAFT 1.2 Effective Date. This Agreement shall be effective, and the obligations of the parties hereunder shall be effective, as of 2006, which is the date that Ordinance No. takes effect ("Effective Date"). 1.3 Amendment or Cancellation. Except as expressly stated to the contrary herein, this Agreement may be amended or canceled in whole or in part only by mutual consent of the parties and in the manner provided for in Government Code Section 65867-65868 and the City's Development Agreement Ordinance. 1.4 Termination. Unless terminated earlier, pursuant to the terms hereof, this Agreement shall automatically terminate and be of no further effect upon the expiration of the Term of this Agreement as set forth in Section 1.1. Termination of this Agreement, for any reason, shall not, by itself, affect any right or duty "arising from entitlements or approvals set forth under the Development Plan. Notwithstanding anything herein to the contrary, in the event the "Initial Escrow" (as that term is defined in the DDA) fails to close within the time set forth in the DDA, as such time may be extended pursuant to the terms of the DDA, this Agreement shall automatically terminate and the Developer and City agree to execute and record such document as the Title Company (as defined in the DDA) reasonably requires to remove this Agreement of record. 1.5 Definitions. 1.5.1 ' "Agency" shall have the meaning ascribed in Recital C hereof. 1.5.2 "Black Box Parcel" shall mean that certain teal property designated as Lot _ on the Parcel Map. The Black Box Parcel is comprised of approximately acres. 1.5.3 `Boutique Hotel Parcel" shall mean that certain real property designated as Lot 19 on the Parcel Map. The Boutique Hotel Parcel is comprised of approximately (_ ) acres. The Boutique Hotel Parcel may be subdivided into two or more legal parcels after the Reference Date. In such event, when used herein, the terms "Boutique Hotel Parcel" shall refer to all such legal parcels. 1.5.4 "City" shall mean the City of La Quinta, a California municipal corporation and charter city organized and existing under the Constitution of the State of California. 1.5.5 "City Declaration of CC&Rs" shall have '.the meaning ascribed in Section 3.3.1 hereof. 882/015610-0084 750537.03 al 1/09/06 DRAFT 1.5.6 "City Ground Lease" shall mean the ground 1 pursuant to which the City shall lease to Developer the Resort Retail Village Parcel. The form of the City Ground Lease shall be negotiated between the parties and shall be approved by the City Attorney. 1.5.7 "Conditions of Approval' shall have the meaning ascribed in Recital C hereof. 1.5.8 "Condominium Hotel Unit' means a Unit which is sold to an individual, third party owner. 1.5.9 "CVWD" shall have the meaning ascribed in Section 3.6 hereof. 1.5.10 "DDA" shall have the meaning ascribed in Recital C hereof. 1.5.11 "Developer" shall mean LDD SilverRock, LLC, a Delaware limited liability company. 1.5.12 "Developer CC&Rs" shall have the meaning ascribed in Section 3.3.2 hereof. 1.5.13 "Development Agreement Act' shall have the meaning ascribed in Recital A hereof. 1.5.14 - "Development Agreement Ordinance" shall have the meaning ascribed in Recital B hereof. 1.5.15 . "Development Plan" shall have the meaning ascribed in Recital C hereof. 1.5.16 "Existing Development Regulations" shall have the meaning ascribed in Section 2.1 hereof. 1.5.17 "Fee Transfer Release Date" shall have the meaning ascribed in Section 7.1.1 hereof. 1.5.18 "Four Star Quality" means that the applicable component of the Project offers and provides the services, facilities and amenities listed in Exhibit "C", which is attached hereto and incorporated herein by this reference. 1.5.19 "Fractional Unit' means a Condominium Hotel Unit which is divided into multiple fractional interests, including, without limitation, timeshare interests, each of which can either be owned by a separate owner or by single owner, and each of which gives such owner the right to use such Condominium Hotel Unit for a different period of time. 1.5.20 Golf Casitas Parcel' shall mean that certain real property designated as Lot 11 on the Parcel Map. The Golf Casitas Parcel is comprised of approximately eight and seven tenths (8.7) acres. 882,015610-0084 750537.03 a11/09/06 DRAFT 1.5.21 "Lake Casitas Parcel" shall mean that certain real property designated as Lot _ on the Parcel Map. The Lake Casitas Parcel is comprised of approximately acres. 1.5.22 "Lowe Enterprises" means Lowe Enterprises, Inc., a California corporation, which is an affiliate of Developer. 1.5.23 "Management Transfer" shall have the meaning ascribed in Section 7.1.2 hereof. 1.5.24 "New Laws" shall have the meaning ascribed in Section 2.1 hereof. 1.5.25 "Operating Covenant Release Date" shall have the meaning ascribed in Section 7.1.2 hereof. 1.5.26 "Parcel" shall mean any of the Boutique Hotel Parcel, Black Box Parcel, Resort Hotel Parcel, Resort Retail Village Parcel, Golf Casitas Parcel, or Lake Casitas Parcel. 1.5.27 "Parcel Map" means Parcel Map No. 33367," which has been prepared by the Agency for recordation in the Official Records of Riverside County, California, prior to or concurrently with the first closing contemplated under the DDA. A copy of the Parcel Map is attached to the DDA as Attachment No. 11. 1.5.28 "Phase of Development" shall mean the component of the Project to be constructed on a particular Parcel, as further described in the DDA. 1.5.29 "Project" shall have the meaning ascribed in Recital C hereof. 1.5.30 "Project Site Development Permits" shall have the meaning ascribed in Recital C hereof. 1.5.31 "Reference Date" shall have the meaning ascribed in the preamble hereof. 1.5.32 "Resort Hotel Parcel" means that certain real,property designated as Lot on the Parcel Map. The Resort Hotel Parcel is comprised of approximately _ acres. 1.5.33 "Resort Retail Village Parcel" means that certain real property designated as Lot 5 on the Parcel Map. The Resort Retail Village Parcel is comprised of approximately — acres. 1.5.34 "Revised Mitigated Negative Declaration" shall have the meaning ascribed in Recital C hereof. 1.5.35 "Site" shall have the meaning ascribed in Recital C hereof. 1.5.36 "Specific Plan" shall have the meaning ascribed in Recital C hereof. 1.5.37 "Term" shall have the meaning ascribed in Section 1.1 hereof. 882/015610-0084 750537.03 al 1/09/06 DRAFT 2.0 1.5.38 "Transfer" shall have the meaning ascribed in Section 7.1.1 hereof. 1.5.39 "Transient Occupancy Tax" shall have the meaning ascribed in Chapter 3.24 of the La Quinta Municipal Code. 1.5.40 "Unit" shall mean one of the approximately six hundred thirty (630) guest units comprising the Project. 2.1 Right to Develop. Subject to the terms, conditions, and covenants of this Agreement, Developer's right to develop the Project in accordance with the Development Plan (and subject to the Conditions of Approval) shall be deemed vested upon approval of the Development Plan, which vesting shall expire upon the earlier of the following occurrences: (a) termination of this Agreement; (b) termination of the DDA; (c) an uncured material default by Developer of this Agreement or the DDA; (d) as to a particular Phase of Development, or a particular Parcel, the earlier of the final approved City inspection of the completed development of such Phase of Development or Parcel, or the issuance by City of a certificate of occupancy for such Phase of Development or Parcel; or (e) as to a particular Phase of Development, or a particular Parcel, the date set forth in the DDA when Developer was required to have completed the development of all improvements of such Phase of Development or Parcel. Except for the expiration set forth in clause (a) of the preceding sentence, the expiration of the vesting right set forth in the preceding sentence shall not terminate the obligations of Developer under this Agreement. Notwithstanding anything in this Agreement to the contrary, the Project shall remain subject to: (i) all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and committees existing on the Effective Date of this Agreement (collectively, the "Existing Development Regulations"); (ii) all amendments or modifications to Existing Development Regulations after the Reference Date of this Agreement and all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and committees enacted or adopted after the Effective Date of this Agreement (collectively, "New Laws"), except such New Laws which would prevent or materially impair Developer's ability to develop the Project in accordance with the Development Plan unless such New Laws are (A) adopted by the City on a City-wide basis and applied to the Site in a non-discriminatory manner, (B) required by a non -City entity to be adopted by or applied by the City (or if optional the failure to adopt or apply such 'non -City law or regulation would cause City to sustain a loss of funds or loss of access to funding or other resources), or (C) New Laws the City reserves the right to apply under this Agreement, including but not limited to Sections 2.2 and 3.7; (iii) all subsequent development approvals and the conditions of approval associated therewith, including but not limited to Site Development Permits and building permits, 882/015610-0084 - -6- 750537.03 al1/09/06 DRAFT (iv) the payment of all fees or exactions in the categories and in the amounts as required at the time such fees are due and payable which may be at the time of issuance of building permits, or otherwise as specified by applicable law, as existing at the time such fees are due and payable, and (v) the reservation or dedication of land for public purposes or payment of fees in lieu thereof as required at the time such reservations or dedications or payments in lieu are required under applicable law to be made or paid. 2.2 Additional Applicable Codes and Regulations Notwithstanding any other provision of this Agreement, City also reserves the right to apply the following to the development of the Project: 2.2.1 Building, Electrical, Mechanical, Fire and similar building codes based upon uniform. codes adopted in, or incorporated by reference into, the La Quinta Municipal Code, as existing on the Reference Date of this Agreement or as may be enacted or amended thereafter, applied to the Project in a nondiscriminatory manner. 2.2.2 In the event of fire or other casualty requiring construction of more than fifty (50%) percent of any building previously constructed hereunder, nothing herein shall prevent the City from applying to such reconstruction all requirements of the City's Building, Electrical, Mechanical, Fire, and similar building codes based upon uniform codes adopted in, or incorporated by reference into, the La Quinta Municipal Code, solely to the extent applicable to all development projects in the City. 2.2.3 This Agreement shall not prevent the City from establishing any new City fees, including new development impact fees, or increasing any existing City fees, including existing development impact fees, including but not limited to the resort fees described in and required pursuant to the City Declaration of CC&Rs, and to apply such new or increased fees to the Project or applicable portion thereof where such new or increased fees may be charged. 2.3 Permitted Density Height and Use Limitations. The permitted uses, density and intensity of use, location of uses, maximum height and size of proposed buildings, minimum setbacks, and other standards applicable to the Project shall be those set forth in the Development Plan and this Agreement, whichever is the strictest. 3.0 DEVELOPER'S OBLIGATIONS 3.1 Development and Operation of the Proiect. Developer shall construct the Project on the Site in accordance with the Development Plan. Notwithstanding anything herein to the contrary, until the Operating Covenant Release Date for each Phase of Development that includes Condominium Hotel Units, Developer or an Authorized Manager shall retain full management and operational control over all components of the Phase of Development, except for the individual Condominium Hotel Units that are sold to third -party buyers. The Authorized Manager of the hotel and casitas to be developed on the 882/015610-0084 750537.03 al 1/09/06 ,. _7 DRAFT Resort Hotel Parcel shall also be the Authorized Manager for the casitas to be developed on the Golf Casitas Parcel and the Resort Casitas Parcel. Developer, on' behalf of itself and any Authorized Manager, covenants and agrees that until the Operating Covenant Release Date, each of the Phases of Development that include Condominium Hotel Units shall be operated in a first class, Four Star Quality condition. No more than once per year prior to the applicable Operating Covenant Release Date, the City may select an independent consultant to perform a quality audit of the foregoing Phases of Development for purposes of determining that the applicable Phase of Development is substantially operating at a Four Star Quality. The then -owner of the applicable Phase of Development shall reimburse the City for the costs of such audit 3.2 Conditions of Approval; Mitigation Monitoring Program. Developer shall comply with all Conditions of Approval. The Developer shall also comply with the mitigation monitoring program set forth in Exhibit "D" attached hereto, which includes and incorporates the mitigation measures of the Revised Mitigated Negative Declaration to ensure that significant environmental effects will be mitigated or avoided (the "Mitigation Monitoring Program"). 3.3 Declaration of Covenants Conditions and Restrictions. 3.3.1 . Recordation of City Declaration of CC&Rs. As one of Agency's conditions to closing under the DDA for any Parcel that will be developed with Condominium Hotel Units and/or Fractional Units(a), Developer shall have entered into with the City and recorded against the underlying Parcel a Declaration of Covenants, Conditions and Restrictions in the form attached hereto and incorporated herein as Exhibit "E" (a "City Declaration of CC&Rs"). 3.3.2 Recordation of Developer CC&Rs. Prior to and as a condition to the City's issuance of a temporary or final certificate of occupancy for any Parcel that will be developed with Condominium Hotel Units and/or Fractional Units, Developer shall have submitted to City, obtained City's approval of, and recorded against the underlying Parcel, a declaration of covenants, conditions, and restrictions that (i) establishes a homeowners' association, (ii) is necessary to create a condominium regimen for the condominiums described on the Condominium Plan to be recorded in accordance with all applicable laws; (iii) clearly sets forth the maintenance obligations of the owners of the Condominium Hotel Units and Fractional Units; (iv) sets forth the obligations of the owners of the Condominium Hotel Units to pay certain resort fees, as further set forth in the City Declaration of CC&Rs; and (v) includes a disclosure regarding the public ownership and control of the existing golf course and any future golf course that may be developed in the SilverRock Resort Area and a statement that Developer does not and cannot guarantee that the City will not make changes to such golf course(s) or change the use of the underlying real property. 3.4 Sign Agreements. As one of Agency's conditions to closing under the DDA for the Boutique Hotel Parcel, Resort Hotel Parcel, and Resort Retail Village Parcel, Developer shall 'enter into with the City or the Agency (as applicable) a signage agreement for such Parcel. Notwithstanding other signage locations to be determined during the site.development permit process, the signage agreement for 982/015610-0084 750537.03 al i/09/06 -8- DRAFT the Boutique Hotel Parcel shall provide for signage along Avenue 52, at the entry point to the development; the signage agreement for the Resort Hotel Parcel shall provide for signage on Jefferson Street, at the, Resort Hotel entry point; the signage agreement for the Resort Retail Village Parcel shall provide for signage at the comer of Avenue 52 and Jefferson Street, Avenue 54 and Jefferson Street, and on Avenue 54, at the entry into SilverRock. 3.5 Maintenance Agreements. As one of Agency's conditions to closing for each Parcel under the DDA, Developer shall enter into with the City or the Agency (as applicable) a maintenance agreement requiring the Developer to maintain the Public Improvements located adjacent to.such Parcel. 3.6 Water Agreements. City has entered into with the Coachella Valley Water District ("CVWD") that certain Domestic Water and Sanitation Systems Installation and Irrigation Service Agreement dated on or about June 11, 2005, and recorded in the Official Records of the County of Riverside, as Instrument No. 2005-0852063, on June 14, 2005 (the "CVWD Agreement"). Pursuant to the CVWD Agreement, the owner/developer of each Parcel is required to execute and record a Domestic Water and/or Sanitation Systems Installation Agreement,, substantially in the form attached to the CVWD Agreement as Exhibit C (a "Water Agreement"), prior to obtaining domestic water service for each said Parcel. As one of Agency's conditions to closing for each Parcel under the DDA, Developer shall execute and record against such Parcel at the Closing therefor a Water Agreement. 3.7 Other Fees and Charges, Assessment Appeals. Nothing set forth in this Agreement is intended or shall be construed to limit or restrict the City's authority to impose its existing, or any new or increased, fees, charges, levies, or assessments for the development of the Site, or to impose or increase, subject to the required procedure, any taxes applicable to the Site including but not limited to transient occupancy taxes, provided nothing set forth herein, subject to the next sentence, is intended or shall be construed to limit or restrict whatever right Developer might otherwise have to challenge any fee, charge, levy, assessment, or tax imposed. Developer agrees that it shall not take any action, including any assessment appeal, to decrease the assessed value of any of the Site or any portion thereof below the final assessed value at the time the development of the Site or separate Parcel thereof is completed. Developer shall timely pay all applicable fees, charges, levies, assessments, and special and general taxes validly imposed in accordance with the Constitution and laws of the State of California,, including without limitation school impact fees in accordance with Government Code §§ 65995, et seq. 3.8 Dedications and Improvements. Developer shall offer dedications to the City or other applicable public agency, or complete those public improvements in connection with the Project, as specified in the Conditions of Approval. 892/015610-0084 750537.03 all/09/O6' .. -9- DRAFT 3.9 Indemnification. a. The Developer agrees to and shall indemnify, hold harmless, and defend, the City and the Agency and their respective officers, officials, members, agents, employees, and representatives, from liability or claims for death or personal injury and claims for property damage which may arise from the acts, errors, and/or omissions of the Developer or its contractors, subcontractors, agents, employees or other persons acting on its behalf in relation to the Project and/or this Agreement. The foregoing indemnity applies to all deaths, injuries, and damages, and claims therefor, suffered or alleged to have been suffered by reason of the acts, errors, and/or omissions referred to in this paragraph, regardless of whether or not the City prepared, supplied, or approved plans or specifications, or both, and regardless of whether or not the insurance policies referred to in this Agreement are applicable. In the event of litigation, the City agrees, at no cost to the City, to cooperate with the Developer. b. In the event of any court action or proceeding challenging the validity of this Agreement or the Revised Mitigated Negative Declaration, the Developer shall indemnify, hold harmless, pay all costs and provide defense for the City in said action or proceeding with counsel chosen by Developer and reasonably approved by the City. The City shall, at no cost to the City, cooperate with the Developer in any such defense as Developer may reasonably request. In the event the Developer fails or refuses to provide such defense of any challenge to this Agreement or the Revised Mitigated Negative Declaration, City shall have the right not to defend such challenge, and to resolve such challenge in any manner it chooses in its sole discretion, including terminating this Agreement. 3.10 Insurance. Before beginning construction on the Site, the Developer shall cause the insurance required under this paragraph to be issued and thereafter to be maintained until one (1) year following the later of (i) the date City issues the last certificate of occupancy needed for the initial occupancy of the last portion of the Project, or (ii) the date the City signs off on the last final inspection of the last of the Project improvements. Developer shall procure and maintain: A policy of commercial general liability insurance written on a per occurrence basis in an amount not less than Three Million Dollars ($3,000,000.00) per occurrence and Three Million Dollars ($3,000,000.00) in the aggregate. A policy of workers' compensation insurance in such amount as will fully comply with the laws of the State of California against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by Developer in the course of carrying out the work or services contemplated in this Agreement. A policy of commercial automobile liability insurance written on a per occurrence basis in an amount not less than Three Million Dollars ($3,000,000.00). Said policy shall include coverage for owned, non -owned, leased, and hired cars. The following additional requirements shall apply to all of the above policies of insurance: 882/015610-0084 -10- 750537.03 a11,09/06 - DRAFT All of the above policies of insurance shall be primary insurance and, except the Worker's Compensation insurance, shall name City, Agency, and . their respective officers, officials, members, employees, agents, and representatives as additional insureds, using a pre 2004 additional insured endorsement (or equivalent). The insurer shall waive all rights of subrogation and contribution it may have against City, Agency, and their officers, officials, members, employees, agents, and representatives, and their respective insurers. All of said policies of insurance shall provide that said insurance may not be materially amended or cancelled without providing thirty (30) days' prior written notice to City and Agency. In the event any of said policies of insurance are cancelled, the Developer shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section to the City Manager. Not later than the Reference Date, Developer shall provide the City Manager with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders shall be subject to the reasonable approval of the City Manager. Upon the request of the City Manager, Developer shall provide City with complete copies of each policy of insurance required by this Agreement. The policies of insurance required by this Agreement shall be satisfactory only if issued by companies (i) licensed and admitted to do business in California, rated "A" or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, or (ii) authorized to do business in California, rated "A+" or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Registry and only if they are of a financial category Class XV. Notwithstanding the foregoing, in the event that the policies required hereunder are not available from such insurers at commercially reasonable rates, the City Manager shall have the authority, in his or her sole and absolute discretion, to waive one or more of such requirements provided the proposed policies will adequately protect the City's interests hereunder. City may reasonably require coverage increases, provided that the percentage increase in coverage shall not be required to exceed the percentage increase in the Consumer Price Index published by the United States Department of Labor, Bureau of Labor. Statistics, for Urban Wage Earners and Clerical Workers, Los Angeles -Riverside -Orange County Average, All Items (1984 = 100) (the "Index"), from and after the date of this Agreement, or, if said Index is discontinued, such official index as may then be in existence and which is most nearly equivalent to said Index (the "CPI Adjustment"). Unless otherwise approved in advance by the City Manager, the insurance to be provided by Developer may provide for a deductible or self -insured retention of not more than Fifty Thousand Dollars ($50,000), with such maximum amount to increase at the same rate as the periodic increases in the minimum amount of total insurance coverage set forth above. Developer agrees that the provisions of this Section shall not be construed as limiting in any way the extent to which Developer may be held responsible for the payment of damages to any persons or property resulting from the Developer's activities -or the activities of any person or persons for which the Developer is otherwise responsible. Developer agrees that the provisions of this Section shall not be construed as limiting in any way Developer's indemnity obligations set forth in Section 3.9 or the extent to which Developer may be held responsible for the payment of damages to any persons or property 882/015610-0084 - -11- 750537.03 A1/09/06 fa;7:1WA resulting from the Developer's activities or the activities of any person or persons for which the Developer is otherwise responsible. . 4.0 CITY'S OBLIGATIONS 4.1 Scope of Subsequent Review/Confirmation of Compliance Process. Nothing set forth herein shall impair or interfere with the right of the City to require the processing of building permits as required by law pursuant to the applicable provisions of the La Quinta Municipal Code and the provisions of City's Fire Codes and ordinances, Health and Safety Codes and ordinances, and Building, Electrical, Mechanical, and similar building codes. Prior to each request for a building permit, Developer shall provide City with a Compliance Certificate ("Certificate") in a form created by Developer and approved by the City, which shall describe how all applicable Conditions of Approval have been fully complied with. The Certificate shall be distributed to relevant City departments for checking the representations made by Developer on the Certificate. 4.2 Project Approvals Independent. All approvals required for the Project which may be or have been granted, and all land use entitlements or approvals generally which have been issued or will'be issued by the City with respect to the Project, constitute independent actions and approvals by the City. If any provision of this Agreement or the application of any provision of this Agreement to a particular situation is held by a court of competent jurisdiction to be invalid or unenforceable, or if this Agreement terminates for any reason, then such invalidity, unenforceability or termination of this Agreement or any part hereof shall not affect the validity or effectiveness of any, such Project approvals or other land use approvals and entitlements. In such cases, such approvals and entitlements will remain in effect pursuant to their own terms, provisions, and the Conditions of Approval. It is understood by the parties to this Agreement that pursuant to existing law, if this Agreement terminates or is held invalid or unenforceable as described above, such approvals and entitlements shall not remain valid for the term of this Agreement, but shall remain valid for the term of such approvals and entitlements. 4.3 Review for Compliance. The City shall review this Agreement at least once during every twelve (12) month period following the Effective Date of this Agreement, in accordance with the City's procedures and standards for such review set forth in the City's Development Agreement Ordinance. During such periodic review ,by the City, the Developer, upon written request from City, shall be required to demonstrate, and hereby agrees to furnish, evidence of good faith compliance with the terms hereof. The failure of the City to conduct or complete the annual review as provided herein or in accordance with the Development Agreement Act shall not impact the validity of this Agreement. If, at the conclusion of the annual review provided for herein, Developer shall have been found in compliance with this Agreement, City, through the City's Community Development Director, shall, at Developer's written request, issue a Certificate of Compliance to Developer stating that (1) this Agreement remains in full force and effect and (2) Developer is in compliance with this Agreement. The Certificate of Compliance shall be in recordable form, and 882,015610-0084 -12- 750537.03 al1/09/06 Eli 0" shall contain information necessary to communicate constructive record notice of the finding of compliance. Developer, at its option and sole cost, may record the Certificate of Compliance. 4.4 City Ground Lease. Pursuant to the DDA, the Agency may transfer the Parcel designated therein as the "Resort Retail Village Parcel" to the City. In the event the Agency elects to so transfer, City shall, concurrently with such transfer, enter into the Ground Lease. Notwithstanding anything to the contrary herein, the Ground Lease shall be for a term of fifty-five (55) years, and shall include the following rent schedule: [TO BE INSERTED] 5,0 DEFAULT• REMEDIES: DISPUTE RESOLUTION. 5,1 Notice of Default. In the event of failure by either party hereto substantially to perform any material term or provision of this Agreement, the non -defaulting party shall have those rights and remedies provided herein, provided that such non -defaulting party has first provided to the defaulting party a written notice of default in the manner required by Section 8.1 hereof identifying with specificity the nature of the alleged default and the manner in which said default may satisfactorily be cured. 5.2 Cure of Default. Upon the receipt of the notice of default, the alleged defaulting party shall promptly commence to cure, correct, or remedy the identified default at the earliest reasonable time after receipt of the notice of default and shall complete the cure, correction or remedy of such default not later than five (5).days [or thirty (30) days for non -monetary defaults] after receipt of the notice of default, or, for such defaults that cannot reasonably be cured, corrected or remedied within five (5) days [or thirty (30) days for non -monetary defaults], such party shall commence to cure, correct, or remedy such default within such five (5) day period [or thirty (30) day period for non -monetary defaults], and shall continuously and diligently prosecute such cure, correction or remedy to completion. 5.3 City Remedies. In the event of an uncured default by Developer of the terms of this Agreement, the City, at its option, may institute, legal action in law or in equity to cure, correct, or remedy such default, enjoin any threatened or attempted violation, or enforce the terms of this Agreement; provided, however, that in no event shall City be entitled to consequential damages for any Developer default. For purposes of this Agreement the term "consequential damages" shall include, but not be limited to, potential loss of anticipated tax revenues from the Project or any portion thereof. Furthermore, the City, in addition to or as an alternative to exercising the remedies set forth in this Section 5.3, in the event of a material default by Developer, may give notice of its intent to terminate or modify this Agreement pursuant to the City's Development Agreement Ordinance ,and/or the Development Agreement Act, in which event the matter shall be scheduled for consideration and review by the City Council in the manner set forth in the City's Development Agreement Ordinance or the Development Agreement Act. 882/015610-0084 -13- 750537.03 al l/09/Ob DRAFT 5.4 Developer's Exclusive Remedy. The parties acknowledge that the City would not have entered into this Agreement if it were to be liable in damages under or with respect to this Agreement or any of the matters referred to herein including but not limited to the Development Plan, Conditions of Approvals, the Existing Development Regulations or any future amendments or enactments thereto, or the Project, except as provided in this. Section. Accordingly, Developer covenants on behalf of itself and its successors and assigns, not to sue the City for damages or monetary relief for any breach of this Agreement by City or arising out of or connected with any dispute, controversy, or issue between Developer and City regarding this Agreement or any of the matters referred to herein including but not limited to the application, interpretation, or effect of this Agreement, the Development Plan, the Conditions of Approval, the Existing Development Regulations or any future amendment or enactments thereto, or any land use permit or approval sought in connection with the development of the Project or any component thereof, or use of a parcel or any portion thereof, the parties agreeing that declaratory and injunctive relief, mandate, and specific performance shall be Developer's sole and exclusive judicial remedies. 6.0 MORTGAGEE PROTECTION• CERTAIN RIGHTS OF CURE 6.1 Encumbrances on the Proiect Site. This Agreement shall not prevent or limit the Developer from encumbering the Site or any portion thereof or any improvements thereon with any mortgage, deed of trust, sale and leaseback arrangement, or any other form of conveyance in which the Site, or a portion thereof or interest therein, is . pledged as security, and contracted for in good faith and fair value (a "Mortgage") securing financing with respect to the construction, development, use or operation of the Project. 6.2 Mortgage Protection. This Agreement shall be superior and senior to the lien of any Mortgage. Notwithstanding the foregoing, no breach of this Agreement shall defeat, render invalid, diminish, or impair .the lien of any Mortgage made in good faith and for value, and any acquisition or acceptance of title or any right or interest in or with respect to the Site or any portion thereof by a holder of a beneficial interest under a Mortgage, or any successor or assignee to said holder (a "Mortgagee") [whether pursuant to foreclosure, trustee's sale, deed in lieu of foreclosure, lease termination or otherwise] shall be subject to all of the terms and conditions of this Agreement. 6.3 Mortgagee Not Obligated. No Mortgagee will have any obligation or duty under this Agreement to perform the obligations of the Developer or other affirmative covenants of Developer hereunder, or to guarantee such performance, except that (i) the Mortgagee shall have no right to develop or operate the Site, and (ii) to the extent that any covenant to be performed by the Developer is a condition to the performance of a covenant by the City, the performance thereof shall continue to be a condition precedent to the City's performance hereunder. '82,015610-0084 -14- 750537.03 a L09106 DRAFT 6.4 Notice of Default to Mortgagee; Right of Mortgagee to Cure. City shall, upon written request therefor to the City, deliver to each Mortgagee a copy of any notice of default given to Developer under the terms of this Agreement, at the same time of sending such notice of default to Developer. The Mortgagee shall have the right, but not the obligation, within five (5) days [or thirty (30) days for non -monetary defaults] after the receipt of such notice from City, to cure, correct, or remedy the default, or, for such defaults that cannot reasonably be cured, corrected, or remedied within five (5) days [thirty (30) days for non - monetary defaults], to commence to cure, correct, or remedy the default within such five (5) day period [or thirty (30).day period for non -monetary defaults], and to continuously and diligently prosecute such cure to completion. If the default is of a nature which can only be remedied or cured by such Mortgagee upon obtaining possession of the Site, such Mortgagee shall have the right to seek to obtain possession with diligence and continuity through foreclosure, a receiver or otherwise, and shall be permitted thereafter to remedy or cure the default within such time as is reasonably necessary to cure or remedy said default but in no event more than thirty (30) days after obtaining possession. If any such default cannot, with diligence, be remedied or cured within such thirty (30) day period, then such period shall be extended to permit the Mortgagee to effect a cure or remedy so long as Mortgagee commences said cure or remedy during such thirty (30) day period, and thereafter diligently pursues and completes such cure. TO TRANSFERS OF INTEREST IN SITE OR AGREEMENT 7.1 Transfers of Interest in Site or Agreement. The qualifications and identity of the Developer as the developer and operator of high quality commercial developments are of particular concern to the City. Furthermore, the parties acknowledge that the Citiy has negotiated the terms of this Agreement in contemplation of the development and operation of the Project on the Site and the property tax increment and Transient Occupancy Tax revenues to be generated by the operation of the Project on the Site. 7.1.1 Transfers of Interest in Site or Agreement Prior to Agency's Issuance of a Release of Construction Covenants. Until the date the Agency issues a "Release of Construction Covenants" (as that term is defined in the DDA) for a particular Phase of Development (the "Fee Transfer Release Date"), (a) no voluntary or involuntary successor in interest of the Developer shall acquire any rights or powers under this Agreement with respect to said Phase of Development, (b) nor shall the Developer make any total or partial sale, transfer, conveyance, assignment, subdivision, refinancing or lease of the whole or any part of the applicable Parcel or the Phase of Development thereon (collectively referred to herein as a "Transfer"), except as provided in this Section 7.1. Prior to the Fee Transfer Release Date for a particular Phase of Development, the City may approve or disapprove a proposed Transfer in its sole and absolute discretion. Notwithstanding the foregoing, City approval of a Transfer prior to the Fee Transfer Release Date for a particular Phase of Development shall not be required in connection with any of the following: 882,015610-0084 -15- 750537.03 al U09/06 - DRAFT a. I The conveyance or dedication of any portion of the Site to an appropriate governmental agency, or the granting of easements or permits to facilitate construction of the Project. b. Any assignment for financing purposes (subject to such financing being permitted pursuant to Section 311 of the DDA), including the grant of a deed of trust to secure the funds necessary for land acquisition, construction and permanent financing of the Project or of a Phase of Development. C. The Transfer by Developer to an entity in which Developer or any entity owned and controlled by Lowe Enterprises is a managing member or a manager, and has day-to-day control over the operations of such transferee entity. d. The sale by Developer of Condominium Hotel Units to third party buyers. 7.1.2 Transfers of Operational Obligations. Notwithstanding anything in Section 7.1.1 to the contrary, until the tenth (10`h) anniversary of the date the Agency issues a Release of Construction Covenants for each Phase of Development (the "Operating Covenant Release Date"), Developer shall not make any Transfer of the operational and/or managerial control of such Phase of Development (a "Management Transfer"), without the prior written approval of the City. Notwithstanding the foregoing, City approval shall not be required for a Management Transfer to any of the following: (1) Ritz Carlton; (2) Four Seasons; and (3) City shall not unreasonably withhold, delay, or condition approval of a proposed Management Transfer to an entity with similar experience and reputation for operating high quality, luxury hotels to any of the entities listed in subparagraphs (1), (2), and (3) above. 7.1.3 . Assignment and Assumption of Obligations. In the event of a Transfer by Developer under Section 7.1.l(a), (b), (c), or (d) above, or under Section 7.1.2 (1), (2), or (3) above, not requiring the City's prior approval, Developer nevertheless agrees that at least thirty (30) days prior to such Transfer it shall give written notice to City of such assignment and satisfactory evidence that the assignee has assumed in writing through an assignment and assumption agreement of all of the obligations of this Agreement. An assignment and assumption agreement in form reasonably satisfactory to the City Attorney shall also be required for all proposed Transfers requiring the City's approval. 7.2 Successors and Assigns. All of the terms, covenants and conditions of this Agreement shall be binding upon the Developer and its permitted successors and assigns. Whenever the term "Developer" is used in 882/015610-0084 -16- 750537.03 al 1,09/06 DRAFT this Agreement, such term shall include any other permitted successors and assigns as herein provided. 7.3 Assignment by City. City may assign or transfer any of its rights or obligations under this Agreement with the approval of the Developer, which approval shall not be unreasonably withheld. 8.0 MISCELLANEOUS 8.1 Notices. All notices permitted or required hereunder must be in writing and shall be effected by (i) personal delivery, (ii) first class mail, registered or certified, postage fully prepaid, or (iii) reputable same -day or overnight delivery service that provides a receipt showing date and time of delivery, addressed to the following parties, or to such other address as any party may from time to time designate in writing in the manner as provided herein: To City: City of La Quinta 78-495 Calle Tampico La Quinta, California 92253 Attn: Community Development Director Telephone: (760) 777-7031 Facsimile: (760) 777-7101 With a copy to: Rutan & Tucker, LLP 611 Anton Boulevard, Suite 1400 Costa Mesa, California 92626 Attn: M. Katherine Jenson Telephone: (714) 641-5100 Facsimile: (714) 546-9035 To Developer: LDD SilverRock, LLC 74-001 Reserve Drive Indian Wells, California 92210 Attn: Theodore R. Lennon, Jr. Telephone: (760) 674-2200 Facsimile: (760) 779-1646 With a copy to: Manatt, Phelps & Phillips, LLP 11355 W. Olympic Boulevard Los Angeles, CA 90064 Attn: Timi Hallem Telephone: (310) 312-4217 Facsimile: (310) 312-4224 Any written notice, demand or communication shall be deemed received immediately if personally delivered or delivered by delivery service, and shall be deemed received on the third day from the date it is postmarked if delivered by registered or certified mail. 882/015610-0084 -17- 750537.03 al 1109/06 DRAFT 8.2 Force Mai eure. In addition to specific provisions of this Agreeme. hereunder shall not be deemed to be in default where delays war, insurrection, strikes, walk -outs, riots, floods, earthquakes, of the public enemy, terrorism, epidemics, quarantine it, performance by either party or.failures to perform are due to fires, casualties, acts of God, acts restrictions, freight embargoes, governmental restrictions imposed or mandated by other governmental entities, governmental restrictions or priority, unusually severe weather, inability to secure labor, materials, or tools necessary for the Project, delays of any contractor, subcontractor or supplier; acts of another party, acts or the failure to act of any public or governmental agency or entity (except that acts or the failure to act of the City or the Agency shall not excuse performance by the City) or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. An extension of time for any such cause shall only be for the period of the enforced delay, which period shall commence to run from the time of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the City and the Developer. Notwithstanding the paragraph above, Developer is not entitled pursuant to this. Section 8.2 to an extension of time to perform because of past, present, or future difficulty in obtaining suitable construction or permanent financing for the development of the Site, or because of economic or market conditions. 8.3 Binding_ Effect. This Agreement, and all of the terms and conditions hereof, shall be binding upon and inure to the benefit of the parties, any subsequent owner of all or any portion of the Project or the Site, and their respective assigns, heirs or successors in interest, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Project or the Site. 8.4 Independent Entity. The parties acknowledge that, in entering into and performing this Agreement, each of the Developer and the City is acting as an independent entity and not as an agent of the other in any respect. 8.5 Agreement Not to Benefit Third Parties. This Agreement is made for the sole benefit of the parties, and no other person shall be deemed to have any privity of contract under this Agreement nor' any right to rely on this Agreement to any extent for any purpose whatsoever, nor have any right of action of any kind on this Agreement nor. be deemed to be a third party beneficiary under this Agreement. Notwithstanding the immediately preceding sentence, the Agency shall be an intended third party beneficiary to this Agreement. 8.6 Covenants. . The provisions of this Agreement shall constitute mutual covenants which shall run with the land comprising the Site for the benefit thereof, and the burdens and benefits hereof shall 892/015610-0084 - 750537.03 a11/09/06 -18_ DRAFT bind and inure to the benefit of each of the parties hereto and all successors in interest to the parties hereto for the term of this Agreement. 8.7 Nonliability of City Officers and Employees. No official, officer, employee, agent or representative of City, acting in his/her official capacity, shall be personally liable to Developer, or any successor or assign, for any loss, costs, damage, claim, liability, or judgment, arising out of or in connection to this Agreement, or for any act or omission on the part of City. 8.8 Covenant Against Discrimination. Developer and City covenant and agree, for themselves and their respective successors and assigns, that there shall be no discrimination against, or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry, or any other impermissible classification, in the performance of this Agreement. Developer shall comply with the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101, etseq.). 8.9 Amendment of Agreement. This Agreement may be amended from time to time by mutual consent of the original parties or such party to which the Developer assigns all or any portion of its interest in this Agreement, in accordance with the provisions of the City's Development Agreement Ordinance and Government Code Sections 65867 and 65868. 8.10 No Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought and referring expressly to this Section. No delay or omission by either party in exercising any right or power accruing upon non-compliance or failure to perform by the other party under any of the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof, except as expressly provided herein. No waiver by either party of any of the covenants or conditions to be ,performed by the other party shall be construed or deemed a waiver of any succeeding breach or nonperformance of the same or other covenants and conditions hereof 8.11 Severability. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect, to the extent that the invalidity or unenforceability does, not impair the application of this Agreement as intended by the parties. 8.12 Cooperation in Carrying Out Agreement. i. Each party shall• take such actions and execute and deliver to the other all such further instruments and documents as may be reasonably necessary to carry out this Agreement in order 882/015610-0084 750537.03 a11,09/06 -19- DRAFT to provide and secure to the other party the full and complete enjoyment of its rights and privileges hereunder. 8.13 Estoppel Certificate. Any party hereunder may, at any time, deliver written notice to any other party requesting such party to certify in writing that, to the best knowledge of the certifying party, (i) this Agreement is in full force and effect and a binding obligation of the parties, (ii) this Agreement has not been amended or modified either orally or in writing, or if so amended, identifying the amendments, (iii) the requesting party is not in default in the performance of its obligations under this Agreement, or if in default, describing the nature and amount of any such defaults, and (iv) any other reasonable information requested. A party receiving a request hereunder shall execute and return such certificate within ten (10) days following approval of the proposed estoppel certificate by. the City Attorney, which approval shall not be unreasonably withheld or delayed. The City Manager, Assistant City Manager, and Community. Development Director are each authorized to sign and deliver an estoppel certificate on behalf of the City. City acknowledges that a certificate hereunder may be relied upon by transferees and Mortgagees. 8.14 Construction. This terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction that might otherwise apply. As used in this Agreement, and as the context may require, the singular includes the plural and vice versa, and the masculine gender includes the feminine and vice versa. 8.15 Recordation. This Agreement shall be recorded with the County Recorder of Riverside County at Developer's cost, if any, within the period required by Government Code Section 65868.5. Amendments approved by the parties, and any cancellation or termination of this Agreement, shall be similarly recorded. 8.16 Cantions and References The captions of the paragraphs and subparagraphs of this Agreement are solely for convenience of reference, and shall be disregarded in the construction and interpretation of this Agreement. Reference herein to a paragraph or exhibit are the paragraphs, subparagraphs and exhibits of this Agreement. 8.17 Time. Time is of the essence in the performance of this Agreement and of each and every term and condition hereof as to which time is an element. 8.18 Recitals & Exhibits Incorporated; Entire Agreement. The Recitals to this Agreement and all of the exhibits and attachments to this, Agreement are, by this reference, incorporated into this Agreement and made a part hereof. This 982/015610-0084 750537.03 at 1/09,06 -20- DRAFT Agreement, including all Exhibits attached hereto, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement, and this Agreement supersedes all previous negotiations, discussions and agreements between the parties, and no parole evidence of any prior or other agreement shall be permitted to contradict or vary the terms hereof. 8.19 Exhibits. Exhibits "A" "E" to which reference is made in this Agreement are deemed appropriated herein in their entirety. Said exhibits are identified as follows: A-1 Legal Description of Site A-2 Site Map, B Depiction of Public Improvements C Four Star Quality Requirements D Mitigation Monitoring Program E Form of City Declaration of CC&Rs 8.20 Counterpart Signature Pages For convenience the parties may execute and acknowledge this agreement in counterparts and when the separate signature pages are attached hereto, shall constitute one and the same complete Agreement. 8.21 Authority to Execute. Developer warrants and represents that (i) it is duly organized and existing, (ii) it is duly authorized to execute and deliver this Agreement, (iii) by so executing this Agreement, Developer is formally bound to the provisions of this Agreement, (iv) Developer's entering into and performance of its, obligations set forth in this Agreement do not violate any provision of any other agreement to which Developer is bound, and (v) there is no existing or threatened litigation or legal proceeding of which Developer is aware which could prevent Developer from entering into or performing its obligations set forth in this Agreement. 8.22 City Approvals and Actions. Whenever a reference is made in this Agreement to an action or approval to be undertaken by the City Manager, his or her authorized designee is authorized to act on behalf of the City unless specifically provided otherwise or the law otherwise requires. 8.23 Governing Law; Litigation Matters. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement without regard to conflicts of law principles. Any action at law or in equity brought by any party hereto for the purpose of enforcing, construing, or interpreting the validity of this Agreement or any provision hereof shall be brought in the Superior Court of the State of California in and for the County of Riverside, or such other appropriate court in said county, and the parties hereto waive all provisions of law providing for the filing, removal, or change of venue to any other court. Service of process on City shall be made in accordance with California law. Service of process on Developer shall be made in any manner permitted by 882i015610-0084 750537.03 all/OM6 -21- DRAFT California law and shall be effective whether served inside or outside of California. In the event of any action between the parties hereto seeking enforcement of any of the terms of this Agreement or otherwise arising out of this Agreement, the prevailing party in such litigation shall be awarded, in addition to such relief to which such party is entitled, its reasonable attorney's fees, expert witness fees, and litigation costs and expenses. 8.24 No Brokers Each of the City and the Developer represents to the other party that it has not engaged the services of any finder or broker and that it is not liable for any real estate commissions, broker's fees, or finder's fees which may accrue by means of this Agreement, and agrees to hold harmless -the other party from such commissions or fees as are alleged to be due from the party making such representations. [end — signature page follows] 882/015610-0084 750537.03 at 1/09/06 -22- DRAFT IN WITNESS WHEREOF, the Developer and the City have executed this Agreement as of the Reference Date. "CITY" CITY OF LA QUINTA, a California municipal corporation By: City Manager ATTEST: City Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP City Attorney "DEVELOPER" LDD SILVERROCK, LLC, a Delaware limited liability company Bv: Its: 882,015610-0084 _.23 750537.03 a11i09/06 - DRAFT STATE OF CALIFORNIA ) ) ss COUNTY OF _ ) On , before me, a Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) ss COUNTY OF ) On , before me, a Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument,the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] 882/015610-0084 - - —2,4- 750537.03 al V09/06 DRAFT EXHIBIT "A -I" LEGAL DESCRIPTION OF SITE [To be inserted] e82/015610-0084 750537.03 a11/09,06 -1- DRAFT EXHIBIT "A-2" SITE MAP [To be inserted] 882/015610-0084 _ 750537.03 a11i09/06 -1 DRAFT EXHIBIT "B" DEPICTION OF PUBLIC IMPROVEMENTS [To be inserted] '82/015610-0094 _ 750537.03 .11,09/06 _ 1 " EXHIBIT "C" FOUR STAR QUALITY REQUIREMENTS Four -Star Ouality indicates an outstanding hotel providing the guest with a luxury experience in a distinctive setting, including expanded amenities and exceptional service. Guests at a Four Star Quality hotel or resort can expect to find all of the following characteristics: Services Detail • Staff is well-groomed with professional, neat and well -maintained attire. • All staff encountered are pleasant and professional in their demeanor. • Front desk staff are articulate, smile and make eye contact. • The front desk is staffed twenty-four hours. • Restaurant on -site serving three meals daily. • Valet parking is available. • Baggage assistance is automatic. • Complimentary newspapers are delivered to room automatically. • Complete room service is available. • Workstation is available where guest can access Internet. • Basic fitness equipment is provided, including treadmills and cycles. • Written confirmation is automatic or offered, either by mail, fax or e-mail. • Guests name is used effectively, but discreetly, as a signal of recognition. • The time from arriving at the reception area until registration is complete does not exceed five minutes (includes queuing). • Bed is plush and inviting with oversized or numerous pillows.' • Bedcovers are elegant and stylish and with linens of exceptional quality and comfort. • All written information is provided on good quality paper or pads, custom -printed or logoed. • Bathroom presentation and placement of amenities and linens is thoughtful, careful, and elegant. • Fresh ice is provided during evening service or at another time' "during the day. 882/015610-0084 750537.03 a11/09/06 • Turndown service is automatically provided. • During turndown service, guest clothing is neatly handled and guest toiletries are neatly arranged and displayed on a cloth or shelf. • Room service is delivered within 30 minutes. • Room service order is delivered within five minutes of quoted time. • Two hour pressing available • Same day laundry and dry cleaning is available seven days/week. • Wake-up call is personalized with guest's name and time of day. • Wake-up call is delivered within two minutes of requested time. • Special service desk identified as concierge/guest service is situated apart from reception/front desk. • If spa services are present, treatments are begun and ended on schedule, within five minutes of expected or booked time. • If spa services are present, during treatment, therapist appears to be genuinely expert, moving seamlessly through the treatment as described and expected. Facilities Details • Self parking area is free of debris, good condition; surfaces, curbs, paths. • All outdoor walkways and approaches are well -maintained and cleaned. • Outdoor awnings, signs, marquees, flags, and plantings are clean and in good condition. • Public spaces are free of obvious hazards. • Elevator landings, cars and doors/tracks are clean and in good condition. • Guest room corridor floors, walls and ceilings are free of debris, marks, and damage. • All furniture, fixtures and equipment are clean, neat and well -maintained. • Ashtrays throughout public areas are well -maintained and free of excessive debris. • Temperature in all interior public areas are maintained in general comfort range. • Public washrooms very hygienic and neat, with well -stocked paper and soap. • Public washroom fixtures, walls and floors are in very good condition. • Meeting rooms are well -signed so that it is easy to find and arrive at a specific room. • Meeting room doors are in good condition, free of nicks and damage. 882/015610-0094 - 2 750537.03 at 1/09/06 • Meeting room interiors are in generally good condition, including walls, floors and ceiling. • Lobby provides a comfortable seating area. • Lobby floors, walls and ceiling are free of debris, marks and damage. • Lobby areas feature elegant live plants and/or fresh floral displays. • Notices are professional, matching decor, not "homemade". • Vending and/or ice machines are located on each guest floor. • Vending and/or ice areas and equipment are clean, well -lit, and well -maintained. • Service doors are clean, free of marks and damage, and closed. • A variety of different sized and appointed rooms available in hotel. • High quality, varied, and major brand sundry selections are available in an on -site store. • Suite (separate bedroom and living areas) accommodations are available. • A dedicated and secure luggage storage area is available. • Public phones are convenient, and equipped with seats, privacy panels and pad/pens. • Public washrooms are furnished with upgraded materials and appointments/luxurious design. • Televisions feature premium cable TV (two movie channels, two all -news, two financial). • Pay -Movie selections are available through television. • Guest room telephones have two lines. • Guest rooms equipped with data ports (guest can connect laptop to the Internet). • Direct dial phones with direct long distance dialing are available in each guest room. • If public phonebook present, it is displayed in attractive cover. Guest Room Detail • Hardware and hangings (door locks, racks, artwork, etc.) are secure and in good condition. • Carpet/floor is free of debris, stains, wear, loose threads, open seams, etc. • Walls and ceilings are free of marks, stains and damage. • Drapes are free of stains, damage; pull easily and hang properly. • Furniture is free of dust, marks and damage. 88210l5610-0084 3 750537.03 al 1/09/06 • All printed material including collateral, phonebooks and stationery are neat, crisp and current. • Drawers and shelves are clean; free of dust and debris. • All light bulbs operate; all light fixtures and lamps are in good condition, clean. • Mirrors and windows are free of smudges and damage throughout. • If safe is provided, it is clean, functional and convenient. • Room equipped with accurate, functional clock and radio/stereo. • Color television works and is equipped with remote control, and is minimum 19". • All bedding and linens are free of debris, hairs, damage and stains. • Room heating and air conditioning is easily controlled by guest and is quiet. • Air is fresh and clean, no stuffiness or odors. • Sink, tub, shower, toilet, bidet are very clean, free of hairs, stains and discoloration. • Bathroom tile and grouting is clean, not discolored, cracked or mildewed. • Faucets and drains operate smoothly and easily. • Minimum bath linen is present: one bathmat; two each of facecloth, hand towel and bath towel. • If robes are provided, they are free of spots, stains and loose threads. • Guest room door and frame free of marks, scratches and scuffs. • Comfortable seating for two people (other than bed). • Guest service directory, pad and pen/pencil present and conveniently placed. • Enclosed closets (means closets must have doors). • There are three spacious drawers or enclosed shelves (inside closet). • A Luggage rack or bench provided; and adequate space to leave suitcase. • Extra clean and hygienic blanket and pillow provided in room. • Lighting throughout the room is adequate. • The room can be fully darkened. • Full-length mirror present in room. • A hairdryer present in room, clean and functional 882/01561M084 4 750537.03 al 1,09/06 • Each guest room has two phones (one could be in the bathroom). • Comfortable desk and chair are available for working, complete with telephone, data port, and light. • Insulated ice bucket, vinyl or better, as well as glass glassware; clean and hygienic are present in room. • Minibar is present (defined as selection of several beverages and snacks). It is non auto - charge, and premium products are attractively displayed. • Minibar is hygienic, free of spills and damage, all products are sealed, price list present. • If coffeemaker is present, it is hygienic, and ceramic mugs and napkins are available. • Pillows are plush and full, no foam. • Framed artwork or interesting architectural features exist in room. • Excellent lighting is provided in bathroom for makeup and shaving. • Hygienic soap, shampoo and four other bath amenities are provided. Amenities are presented attractively, thoughtfully (not simply lined up on counter). • Towels are of absorbent quality, with soft nap and no discoloration. • Towels are free of spots, stains, tears and obvious frays. • Guest room is of generous size, and provides ample seating for more than two persons. • Selection of at least 10 hangers including a variety of bars, clips and padded. • In -room safe is present. • Bed is triple sheeted or features washable duvets. • Live plants are present in guest rooms. • Shaving/makeup, lighted magnifying mirror is present. Specialized Facility Detail • Pool/beach furniture is clean, hygienic and well -maintained. • Pool deck or beach/sand is clean and free of excessive debris. • Pool deck and tiling are in good condition, free of excessive damage or wear. • Pool water is clean, free of debris and free of notable odors. • Pool fittings and equipment (ladders, dive boards) are secure and in good condition. • Tennis court surfaces are in good condition, free of damage and well -marked. 882/01561M084 5 750537.03 all/09/06 • Tennis courts and surrounding areas are clean and free of debris. • Fixtures, nets, lights, fences are well -maintained and good condition. • Pro shop/clubhouse interior are clean and well -maintained; displays and counters neat and tidy. • Pro shop/clubhouse and surrounding areas are clean with well -maintained appearance. • Golf carts are clean, well -organized and maintained. • Rental equipment is clean and good condition, including bags. • Guest can pick up e-mail and access the Internet from a Business Center workstation. • Business Center working areas are clean, tidy and professional. • Comfortable office -style chairs at the Business Center guest workstations. • All fitness, treatment and relaxation areas are hygienic, neatly organized and maintained. • Spa reception area is well-defined, neat and professional. • Fitness equipment is clean, in very good condition, conveniently laid out. • Fitness/workout area is well -ventilated, with comfortable temperature. • Fitness equipment is available with personal headphones/televisions. • Sound system or television provided in fitness/workout areas. • Towels are provided in locker and fitness areas. • Grooming area equipped with hairdryers; soap and shampoo conveniently placed. • All amenities are neatly and professionally presented; very hygienic. • Locker room, showers, sauna and hot tub extremely clean, hygienic appearance. • If Business Center is present, a semi -private working area with workstation and telephone is available for guests. • If a spa exists on site, robes and slippers or spa sandals are available in variety of sizes, and they are clean and in good condition. • If spa or fitness center exists on site, complimentary amenities to include body lotion, shower caps, talc/deodorant and combs. If spa exists on site, at least two types of massage and either body treatments or facials are also offered. • If tennis is available on site, water is available courtside. • If pool or beach service is present, ample towels are available poolside or at the beach. 982/015610-0094 6 750537.03 a11/09106 _ • Current newspapers and national -title magazines' are provided in fitness and locker areas. • If spa, treatment rooms are equipped with individually controlled temperature and sound systems. n 882i015610-0084 7 750537.03 al 1/09/06 EXHIBIT "D" MITIGATION MONITORING PROGRAM PROJECT MONITORING CHECKLIST (CEQA Mitigation Measures) [To be inserted] 882/015610-0084 I 750537.03 a11,09,06 EXHIBIT "E" FORM OF CITY DECLARATION OF CC&Rs [To be inserted] 882/015610-0084 750537.03 al 1i09i06 AGENCY CONSENT TO RECORDATION THE LA QUINTA REDEVELOPMENT AGENCY HEREBY CONSENTS TO THE RECORDATION OF THE FOREGOING DEVELOPMENT AGREEMENT AGAINST THE REAL PROPERTY DESCRIBED IN EXHIBIT "A" TO SAID DEVELOPMENT AGREEMENT. LA QUINTA REDEVELOPMENT AGENCY By: Its: STATE OF CALIFORNIA ) ss COUNTY OF On , before me, a Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] 882/015610-0084 750537.03 al 1/09/06 PH #E STAFF REPORT PLANNING COMMISSION DATE: NOVEMBER 14, 2006 CASE NO.: RIGHT-OF-WAY VACATION 2005-014 STREET VACATION 2006-042 REQUEST: REPORT OF FINDING UNDER CALIFORNIA GOVERNMENT CODE SECTION 65402 THAT THE PROPOSED RIGHT-OF-WAY/STREET VACATION OF A + 3,117-FOOT LENGTH OF AVENUE 53 IS CONSISTENT WITH THE GENERAL PLAN LOCATION: PORTION OF AVENUE 53 WEST OF MONROE STREET APPLICANT: EAST OF MADISON, LLC. BACKGROUND: Pursuant to California Government Code Section 65402, the "Planning Agency" (City of La Quinta Planning Commission) shall make a finding that the proposed vacation is consistent with the City's General Plan and Circulation Element for any street right-of-way or public easement being vacated by the City Council. The right-of-way for this portion of Avenue 53 west of Madison Street was petitioned and accepted by the Board of Supervisors of Riverside County for public highways in the 5th Road District. Said right-of-way for public highway was a grant to Riverside County and not transferred in fee. Additionally, no street improvements were constructed along the proposed length of street vacation. This portion of right-of-way is specifically described in Attachment 1 and 2 and is not needed by other property owners for access, or improved accessibility. East of Madison, LLC., the developer of The Madison Club through which Avenue 53 traverses, requested vacation of the said portion of Avenue 53 pursuant to California Street and Highways Code Part 3 for Public Streets, Highways, and Service Easements Vacation Law, Section 8320-8325. The portion to be vacated will be incorporated in the Madison Club Development. No access to Avenue 53 is required by the Madison Club along the north and south side of the street. The portion of Avenue 53 to be vacated terminates at the easterly extent of a previously vacated portion of Avenue 53 by City Council Resolution 2000-164 for The Hideaway and begins at the entrance to Tract No. 31874, the Carmela Development. Avenue 53 will remain a public street from the Carmela entrance on the north side of Avenue 53 to Monroe Street. P:\Reports - PC\2006\1 1-1 4-06\Right-way\StaffReport.doc 1 of2 ENVIRONMENTAL CONSIDERATION: The proposed vacation is categorically exempt under Section 15305, and not subject to the California Environmental Quality Act (CEQA). PUBLIC AGENCY COMMENTS: On May 22, 2006 and September 18, 2006, staff mailed notices (first and second, respectively) to potentially affected public utility agencies and public agencies, respectively, informing them of the proposed vacation. If the utility companies respond with requests for easements to continue operation and maintenance of existing public utilities, a utility easement will be reserved. To date, no objection to the right-of-way vacation has been received nor easements required. Coachella Valley Water District has requested that an existing Bureau of Reclamation easement for Irrigation Lateral No. 119.65 be maintained. FINDINGS- 1. The proposed right-of-way vacation will have no environmental effects that adversely impact the human population, either directly or indirectly because the street segment is currently unused by the public and inaccessible to vehicles; and secondly, the act of vacating the right of way will have no physical environmental effect. 2. The right-of-way vacation will not impact public utility agencies, provided easements are retained for the continued maintenance and operation of existing public utilities. RECOMMENDATION: Adopt Resolution 2006-_ finding that Right -of -Way Vacation 2005-014 and Street Vacation 2006-042 is consistent with the La Quinta General Plan. Prepared by: � BNG, Associate Engineer Attachments: 1. — Vicinity Map 2. — Plat Map PAReports - PC\2006\11-14-06\Right-way\StaffReport.doc 2 02 PLANNING COMMISSION RESOLUTION 2006-_ A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA, THAT THE PROPOSED RIGHT-OF- WAY VACATION OF A + 3,117-FOOT LENGTH OF AVENUE 53 IS CONSISTENT WITH THE GENERAL PLAN CASE NO.: RIGHT OF WAY VACATION 2005-014 STREET VACATION 2006-042 WHEREAS, the Planning Commission of the City of La Quinta, California, did on the 14T" day of November, 2006, consider the request for right of way vacation of a portion of Avenue 53 west of Madison Street; and, WHEREAS, California Government Code Section 65402 requires that prior to streets being vacated by the City Council, the Planning Commission make a finding that the proposed right of way vacation is consistent with the City's General Plan; and, WHEREAS, said Planning Commission did make the following Mandatory finding confirming.. that the proposed street vacation is consistent with the City's General Plan: 1 . The proposed right of way vacation will have no environmental effects that adversely impact the human population, either directly or indirectly, because the street segment is currently unused by the public and inaccessible to vehicles; and secondly, the act of vacating the right of way will have no physical environmental effect. 2. The right of way vacation will not impact public utility agencies, provided easements are retained for the continued maintenance and operation of existing public utilities. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of La Quinta, California, as follows: 1. That the above recitations are true and constitute the findings of the Planning Commission in this case; 2. That it does find the proposed Right of Way Vacation 2005-014 and Street Vacation 2006-042, as shown on the Attachments 1 and 2, are consistent with the City's General Plan for the reasons set forth in this Resolution. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta Planning Commission, held on this 14T" day of November, 2006, by the following vote, to wit: Resolution 2006 Right of Way Vacation 2005-014 Street Vacation 2006-042 November 14, 2006 AYES: NOES: ABSENT: ABSTAIN: PAUL QUILL, Chairman City of La Quinta, California ATTEST: DOUGLAS R. EVANS Community Development Director City of La Quinta, California is - PC\2006\1 1-1 4-06\Right-way\Reso.doc 2 of 2 asr� A. 5 t� .m 11 Milk, d X�.�a.1i`s..'"` ATTACHMENT 2 133US 308NOI4 3J � \N d0 0 0�� cai w �I,OfI.�fl�� Z z �Xti :'oo z6 w cwn Gl Lio m cmis, w 0£ r~ m a a .r Shy 5�P '�i wvwi r: ti 021d i� '0£ 'C7J I oIl a d u�i umi p W - + 00 F O M N O F �C d '00I W I ( Imo., r cno w Q . 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V) U7 zn z zo ww W fps, zc�. d c� a " Q 00 0 Z J z �� z� J W S v u v a J (n PH #F PLANNING COMMISSION STAFF REPORT DATE: NOVEMBER 14, 2006 CASE NO.: ZONING TEXT AMENDMENT 2006-088 APPLICANT: CITY OF LA QUINTA REQUEST: CONSIDERATION OF AN AMENDMENT TO CHAPTER 9, SECTION 9.140.080-SUPPLEMENTAL REGULATIONS OF THE LA QUINTA MUNICIPAL CODE REGULATING THE DEVELOPMENT AND USAGE OF FUTURE CONDOMINIUM HOTEL UNITS IN TOURIST COMMERCIAL DISTRICTS LOCATION: CITY-WIDE PROPERTY OWNER: NOT APPLICABLE GENERAL PLAN/. ZONING DESIGNATIONS: NOT APPLICABLE ENVIRONMENTAL DETERMINATION: THE COMMUNITY DEVELOPMENT . DEPARTMENT HAS REVIEWED THIS PROJECT UNDER THE PROVISIONS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). THE LA QUINTA COMMUNITY DEVELOPMENT DEPARTMENT HAS DETERMINED THAT THE AMENDMENT TO THE MUNICIPAL CODE IS EXEMPT PURSUANT TO CHAPTER 2.6, SECTION 21080 OF THE PUBLIC RESOURCES CODE, CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) STATUTES, AND SECTION 15061.(B)(3), REVIEW FOR EXEMPTIONS, OF THE CEQA GUIDELINES. SURROUNDING LAND USES: NOT APPLICABLE BACKGROUND: In the last several years, the market for hotel development nationally, and in the Coachella Valley, has changed. It has become increasingly difficult to finance and construct destination resort hotels. Most often, hotel operators require the facility be able to sell a portion or all of its units to individual investors, who have a right to use these units for a portion of each year, and who are either required or permitted to include their unit(s) in a hotel rental program for the balance of each year. This hybrid, known most commonly as a Condominium Hotel or Condo Hotel, poses special challenges for the City, particularly as they relate to long term operation and the Transient Occupancy Tax (TOT). Regarding operation, the Condo Hotel can become an operational problem if not properly managed, in as the absentee owners have little contact or control over the long term operation of the facilities._ As relates to City revenues, the City collects TOT for hotel room rentals. TOT, however, can only be collected for stays of 30 days or less, as defined in our Municipal Code. For Condo Hotels, this becomes an issue, as owners and their guests can occupy units for longer periods, and the City risks not being able to collect fees for these longer stays. As a result, the City has in the past either conditioned projects individually, and/or entered into individual agreements with project applicants to allow the City to collect the equivalent of TOT for tourist stays of more than 30 days. As it has become clear that the Condo Hotel trend will continue, and the City will continue to be under pressure to approve additional projects, City staff has determined that an Amendment to the Zoning Code is required, in order to standardize the process for all future facilities, and eliminate the need for individual conditions of approval and/or agreements for each project proposed. The attached Amendment is intended to meet this need. The Amendment will apply to every land use designation in which hotels would otherwise be allowed. It sets forth the requirements for a Condo Hotel, and enumerates the minimum standards for such facilities, to assure that a high level of quality is maintained. An application process is specified, as well as development standards. Minimum standards for the operators of these facilities are established, to assure they will be properly managed. The Amendment also establishes a system for reporting and collection of fees. Finally, the Amendment prohibits the conversion of existing hotels to Condo Hotel status, in order to assure the City that its TOT tax base will be protected for the long term. The City has evaluated this proposed Amendment and determined that it will not have any impacts on the environment. The Amendment is a vehicle to allow a condominium ownership program of future hotel properties. It does not change the General Plan or Zoning Ordinance regulations regarding the location of hotels within the City. Additionally, it does not modify any existing Zoning Ordinance development standards. It only deals with the type of ownership of hotels and reporting and collection of fees. Based upon this evaluation, the City has determined the project is exempt pursuant to Chapter 2.6, Section 21080 of the Public Resources Code, California Environmental Quality Act (CEQA) Statutes, and Section 15061.(b)(3), review for Exemptions, of the CEQA Guidelines. Conclusion In conclusion, the proposed Amendment to the Zoning Code' will allow the City to regulate a newly emerging land use, and assure the proper design, operation and maintenance of these facilities. The findings to support approval can be made. Public Notice This request was published in the Desert Sun newspaper on November 4, 2006, as required by Section 9.200.110 of the Zoning Code. To date, no letters have been received. STATEMENT OF MANDATORY FINDINGS: Findings to recommend approval of this request can be made and are contained in the attached Resolution. RECOMMENDATION: 1. Adopt Planning Commission Resolution 2006- , recommending to the City Council approval of Zone Text Amendment 2006-088.' Prepared by: Development Director PLANNING COMMISSION RESOLUTION 2006- A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA, CALIFORNIA, RECOMMENDING TO THE CITY COUNCIL APPROVAL OF ZONING TEXT AMENDMENT 2006-088, ADDING SECTION 9.140.080 TO THE ZONING CODE, TO REGULATE CONDOMINIUM HOTELS AND PROHIBIT THE CONVERSION OF EXISTING HOTELS INTO CONDOMINIUM HOTELS CASE NO.: ZONING TEXT AMENDMENT 2006-088 APPLICANT: CITY OF LA QUINTA WHEREAS, the Planning Commission of the. City of La Quinta, California, did on the 14`h of November, 2006, hold a duly noticed Public Hearing for review of a Zoning Text Amendment to add Section 9.140.080 to regulate new.Condominium Hotels throughout the City;, and WHEREAS, said Zoning Text Amendment has complied with the requirements of "The Rules to Implement the California Environmental Quality Act of 1970" as amended (Resolution 83-63) in that the La Quinta Community Development Department has determined that the Amendment to the Municipal Code is exempt pursuant to Chapter 2.6, Section 21080 of the Public Resources Code, California Environmental Quality Act (CEQA) Statutes, and Section 15061(B)(3), Review for Exemptions, of the CEQA Guidelines; and WHEREAS, the Community Development Department published the public hearing notice in the Desert Sun newspaper on November 4, 2006, as prescribed by the Municipal Code; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons wanting to be heard, said Planning Commission did make the following mandatory findings recommending approval of said Zone Text Amendment: 1. The proposed Amendment is consistent with the General Plan, and provides for regulation of land uses otherwise permitted as hotels in various land use designations in the City. 2. Approval of the Amendment will not create conditions materially detrimental to the public health, safety and welfare, and will assure high quality development of an emerging land use in the City. Planning Commission Resolution 2006-. Zoning Text Amendment 2006-088 November 14, 2006 SECTION I Section 9.140.080 is added to the La Quinta Municipal Code to read as follows: A. Purpose. The specific purposes of these regulations are to assure that Condominium Hotel projects are conditioned at the time of development approval in such a way as to ensure appropriate public health, safety, welfare and land use classifications and standards; to mitigate potential impacts of Condominium Hotels on traffic congestion, air quality, building design and safety, police, fire and emergency services; to assure other adequate public facilities; to allow Condominium Hotel development projects some 'financial flexibility subject to the approval of the City Council; to prohibit conversion of existing hotels to Condominium Hotels; and to provide the City with appropriate development and operational controls over Condominium Hotels. B. Definitions. The following definitions shall govern the construction and interpretation of this Section. 1. Condominium Hotel. A "Condominium Hotel" shall mean a "Hotel" or "Group Hotel" all or part of which constitutes a condominium project in which one or more of the Units are individually owned, but are intended tobe available for "Transient" use (as those terms are defined in Section 3.24.020 of the La Quinta Municipal Code), when not being used by the Unit Owner. 2. Development Agreement. For purposes of this Section, the term "Development Agreement" shall mean any of the following: (1) a statutory development agreement entered into pursuant to Government Code sections 65864 et seq.; (2) a disposition and development agreement entered into between an applicant and the City's Redevelopment Agency; or (3) an owner participation agreement entered into between an applicant and the City's Redevelopment Agency. 3. Effective Date. The "Effective Date" shall mean the date on which the ordinance adopting this Section becomes effective. 4. First Class Condominium Hotel. A "First Class Condominium Hotel" shall mean a Condominium Hotel where both of the following apply: (1) the Condominium Hotel has a brand Operator or an independent Operator that is, experienced in the "Upscale Segment" or "Luxury Segment of the hospitality Planning Commission Resolution 2006-_ Zoning Text Amendment 2006-088 November 14, 2006 industry as defined by J.D. Power and Associates; and (2) the Condominium Hotel satisfies the published requirements that will be sufficient for a ranking of no fewer than Three Stars in the most recent annual awards list published from time to time by AAA Travel Guides or by the Mobil Travel Guide. 5. Operator. "Operator" shall mean the entity .designated by the owner of the Condominium Hotel or, if all of the common area of a Condominium Hotel is owned by a condominium owners' association, designated by such association, to manage the Condominium Hotel 6. Personal Use. "Personal Use" shall mean the use or occupancy of a Unit by an Owner or any non-paying guest of an Owner for whom the Owner may, and does, reserve its Unit. Use of a Unit arising out of an exchange program with an affiliated hotel property shall be considered Personal Use by the Owner. 7. Unit. "Unit" shall mean a condominium unit, as shown on a recorded condominium plan, which is located within a Condominium Hotel. 8. Unit Owner. "Unit Owner" or "Owner" shall mean an individual or entity that acquires any ownership interest in, and holds title to, one or more Units. C. Condominium Hotel Regulations. No person or entity shall construct or operate a Condominium Hotel within the City without first obtaining all necessary entitlements pursuant to this Section and pursuant to other applicable' provisions of the La Quinta Municipal Code. All other provisions of the La Quinta Municipal Code, including, without limitation, Title 8 (Buildings and Construction), Title 13 (Subdivisions), and Title 9 (Zoning Code) shall be applicable to the construction and maintenance of Condominium Hotels; provided however, that the more specific provisions contained in this Section shall prevail over any general provisions set forth in the La Quinta Municipal Code. A Condominium Hotel shall be allowed as a conditionally permitted use, subject to the terms of this Section, and only within those zoning districts in which Hotels or similar tourist and vacation accommodations are expressly permitted either conditionally or as of right, pursuant to the terms of Title 9 (Zoning Code) and/or any applicable "specific plan. Each application for a Condominium Hotel will be reviewed by the City's Planning Commission and City Council. J Planning Commission Resolution 2006-_ Zoning Text Amendment 2006-088 November 14, 2006 If the Planning Commission recommends granting approval of the application, the City Council shall set notice of a public hearing to be held within forty five (45) days thereafter or such later date as may be set by the City Council. Approval shall be subject to required conditions necessary to carry out the provisions of this Section. D. Application for Condominium Hotel. An application for a Condominium Hotel shall include the following six (6) requirements, in addition to any other information that the City may determine is necessary to review the application. No Condominium Hotel may be approved without approval of all of the following requirements: 1. Development Agreement. A proposed Development Agreement application, which shall provide for enforcement of all conditions and standards required by this Section. In addition to any other provisions that may properly be included within the Development Agreement, the parties may agree to terms and conditions that are different from, or in addition to, and supersede, the provisions and requirements of this Section. The City shall include such terms as it deems necessary to ensure that the Condominium Hotel operates as the equivalent of a traditional hotel. The Development Agreement shall also include a draft Declaration of Covenants, Conditions and Restrictions pursuant to paragraph G below. 2. Conditions, Covenants and Restrictions ("CC&R's"). The proposed CC&R's for the Units. 3. Environmental Assessment. Information necessary for the City to perform ,an environmental assessment of the proposed Condominium Hotel project, pursuant to the California Environmental Quality Act (Public Resources Code, § § 21080-21094 and its implementing regulations). 4. Subdivision Application. Each Condominium Hotel application shall be accompanied by an application for a tentative or vesting tentative map pursuant to Title 13 of the La Quinta Municipal Code. 5. Specific Plan. Each Condominium Hotel application shall be accompanied by an application for a specific plan or be within an approved specific plan area which permits such use, pursuant to Government Code sections 65450 et seq. Planning Commission Resolution 2006-_ Zoning Text Amendment 2006-088 November 14, 2006 6. Site Development Permit. Each Condominium Hotel application shall be accompanied by an application for a site development permit pursuant to Section 9.210 of the Zoning Code. E. Development Standards. The Condominium Hotel shall comply with all the development, use, area, parking and other applicable standards of the zone or applicable specific plan in which the project is located. F. Condominium Hotel Standards, Conditions and Requirements. In addition to the standards referenced in this Section, each Condominium Hotel is required to meet the following additional standards, conditions and requirements: 1. No Unit may be used as a full-time or permanent residence, except as set forth in the next paragraph. 2. No more than one (1) Unit in each Condominium Hotel may be used for the full-time or permanent residential occupancy by a person or family serving as the on -site _ manager of the Condominium Hotel. Such Unit must be owned by the owner or operator of the Condominium Hotel or the owners' association, and shall not be used for homestead purposes. 3. At its sole cost and expense, each individual Unit Owner may choose to hire any rental agent of its selection, or the Operator or an affiliate, for the purpose of advertising the rental availability of, and procuring potential renters for, the Owner's Unit. Unit Owners may also rent their Units themselves. When not being used for Personal Use, each Unit shall be available for rental as a Hotel accommodation. The Operator shall have the right, working through the Unit Owner or its designated rental agent, to book any unbooked room to fulfill demand, and to charge a reasonable booking fee for each such booking. 4. Hotel guests (whether Transient or Personal Use and not including any on -site manager) are prohibited from occupying or remaining in any Unit for more than twenty-nine (29) consecutive days, with a minimum seven (7) day period intervening between each twenty-nine (29) consecutive day use period. 5. Personal Use shall not exceed (i) thirty (30) days in the aggregate during the period of November 1 through April 30; or (ii) sixty (60) days in any calendar year., unless the owner Planning Commission Resolution 2006- Zoning Text Amendment 2006-088 November 14, 2006 engaging in such Personal Use satisfies all requirements for such excess use as set forth in the Declaration. 6. All Units shall be completely furnished with furniture, fixtures and equipment to the standards established by the owner or operator of the Condominium Hotel. 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 Condominium Hotel standard. 7. The proposed location, use, and design of the Condominium Hotel shall be consistent with the City's general plan, zoning ordinances, and any specific plan covering the area in question. 8. In accordance with the existing provisions of Chapter 3.24 of the La Quinta Municipal Code, every Condominium Hotel shall be subject to the City's transient occupancy tax requirements, as may be amended from time to time. The Unit O^w n inOwner of a Condominium Hotel Unit shall receive golf and other benefits which are available to residents of La Quinta on the same terms, and subject to the same conditions, as are applicable to such residents. 9. Any proposed Condominium Hotel that will not, as proposed, qualify as a First Class Condominium Hotel shall not be eligible to operate as a Condominium Hotel in the City of La Quinta. G. Provisions for Declaration. The Development Agreement submitted with the Condominium Hotel application shall include a draft Declaration of Covenants, Conditions and Restrictions ("Declaration") (which shall be separate and apart from the CC&Rs required to create the Units as condominiums pursuant to California law) which must be approved by the Community Development Director and the City Attorney prior to final approval of the Condominium Hotel application, and thereafter recorded against the Condominium Hotel in the Riverside County Recorder's Office. The Declaration shall include the following provisions: 1. The Declaration shall require the Units to be included within a Hotel, and (other than the Unit occupied by an on -site manager) made available as a Hotel accommodation when not being used for Personal Use. Planning Commission Resolution 2006-_ Zoning Text Amendment 2006-088 November 14, 2006 2. The Declaration shall require that the Operator manage the Units for the Unit Owners pursuant to the Operator's then - standard form of agreement, and provide to the Condominium Hotel, the Property, and the Occupants and Owners of the Units, on a seven (7) day a week basis, any or all "on property" services commonly provided at First Class Condominium Hotels and Resorts, including without limitation, such services as front desk check -in and check-out services (including electronic keys), routine housekeeping, laundry and dry cleaning, room service, catering and other food and beverage services, spa services, concierge services, parking and bellman services to the Unit Owner and the Unit Owner's guests. The availability and right to uses€ such services shall be conditioned upon payment of such charges or fees as may be imposed generally on hotel guests As to the availability and right to use services such as front desk check -in and use of resort pools, lobbies, recreational facilities etc., which are not separately charged to Hotel guests use will be conditioned upon the payment of such attributable to each Unit within the Hotel. The Operator shall have the exclusive right to restrict and control access to any and all shared facilities within the Condominium Hotel, provided the same does not restrict a Unit Owner's right of access to her, his or its Unit, except that Unit access shall be subject to mandatory registration at the Hotel front desk to obtain a key to the Unit, which key shall be an electronic key. The Operator's management obligations shall also include upkeep and repair of the interior of each Unit, and monitoring and managing repair and replacement of furniture, fixtures and equipment both at the Unit Owner's sole cost and expense. 3. The Declaration shall require the Operator to provide a quarterly report to the City that contains all of the following information on each Unit: (a) the number of said Unit; (b) the name, address and telephone number of the Owner of the Unit; (c) whether the Operator is and has been the rental agent for said Unit during the immediately preceding calendar quarter; (d) the Personal Use during the immediately preceding calendar quarter; (e) the name and address of any occupant of the Unit (other than the Owner) whose occupancy exceeded the twenty-nine (29) day maximum; and (f) the TOT that has been collected by Planning Commission Resolution 2006-_ Zoning Text Amendment 2006-088 November 14, 2006 the Operator and remitted to the City for use of said Unit during the immediately preceding calendar quarter. 4. The Declaration shall require the Condominium Hotel owner or, if none, the Condominium Hotel's owner's association to hire a qualified professional Operator to manage, maintain and operate all portions of the Condominium Hotel in a manner consistent with the First Class Condominium Hotel Standard required by this Section. The Operator shall have at least five (5) consecutive years of experience in the hotel management business in hotels that meet the First Class Condominium Hotel standard and have no fewer than ten (10) other properties (each in separate cities, or distinct and separate projects in any given city, nationally or internationally) under current management. The Condominium Hotel Owner or owner's association, as the case may be, shall provide the City with appropriate documentation to demonstrate that the proposed Operator meets the requirements of this Subsection, to be approved by City staff prior to issuance of a certificate of occupancy for the Condominium Hotel. Upon request by the applicant, the City Manager may waive the experience standards required above upon finding that the proposed Operator has comparable substitute experience and qualifications. The Declaration shall include provisions regarding proposed changes in the Operator. 5. The Declaration shall give the Condominium Hotel Owner, Operator, and the City the right, power, and obligation to enforce the First Class Condominium Hotel standard including, without limitation, the right to enter any portion of the Condominium Hotel, and any individual Condominium Hotel Units, to cure, or cause the Unit Owner to cure, any failure to meet the First Class Condominium Hotel standard; and shall permit the enforcement by the City, in its discretion, of this Section and the Declaration. 6. The Declaration shall provide that Hotel guests (whether Transient or Personal Use and not including any on -site manager) are prohibited from occupying or remaining in any Unit for more than twenty-nine (29) consecutive days, with a minimum seven (7) day period intervening between each twenty-nine (29) consecutive day use period. Planning Commission Resolution 2006 Zoning Text Amendment 2006-088 November 14, 2006 7. The Declaration shall provide that Personal Use shall not exceed (i) thirty (30) days in the aggregate during the period of November 1 through April 30; or (ii) sixty. (60) days in any calendar year.- unless provisions for such excess use are provided for in the Development Agreement and are complied with by the Unit Owner. 8. Subject to applicable California general law and Department of Real Estate regulations, and unless otherwise provided in the Development Agreement the Declaration shall provide that the obligation to pay any fees or changes provided for in the Development Agreement shall be secured by a lien in favor of the City encumbering the Units for the amount owed, including any permitted penalties or interest, and that the City shall have the right, but not the duty, to foreclose on any such liens through equitable or legal proceedings. 9. The Declaration shall provide that it shall not be amended without the prior written appreya}consent of the City. H. Reporting and Inspection. Upon request of the City Manager, each Owner, the Condominium Hotel association and the Operator shall maintain, on -site, and regularly make available to the City and its employees, and agents such information, books, records, and documentation, including all records relating to Personal Use and Transient use of each Unit, and also shall allow reasonable access to individual Units, as the City finds necessary to have or review in order to ensure that the City may determine and enforce the Condominium Hotel's compliance with this Section and other applicable City laws, regulations, the Condominium Hotel conditions, the Development Agreement, and the Declaration. The original and, upon each change, every subsequent Operator shall immediately advise the Community Development Director of its name, qualifications, address, telephone number and the name of a contact person. Conversions. An express purpose of these regulations is to preserve and enhance the City of La Quinta's existing Hotel inventory. All existing Hotels are prohibited from converting to Condominium Hotels from and after the Effective Date. Thereafter, no other conversions to Condominium Hotels shall be allowed in any zone. Planning Commission Resolution 2006- Zoning Text Amendment 2006-088 November 14, 2006 . J. Prohibited Units. No provision herein shall be deemed to permit a timeshare, fractional or other vacation ownership unit if otherwise prohibited by the La Quinta Municipal Code. SECTION 2. SEVERABILITY. The provisions of this Ordinance shall be severable, and if any clause, sentence, paragraph, subdivision, section, or part of this Ordinance shall be adjudged by any court of competent jurisdiction to be,invalid, such judgment shall not affect, impair, or invalidate the remainder thereof but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section, or part thereof directly involved in the controversy in which such judgment shall have been rendered. SECTION 3. LEGAL CONSTRUCTION. The provisions of this Ordinance shall be construed as necessary to effectively carry out its purposes, which are hereby found and declared to be in furtherance of the public health, safety and welfare. SECTION 4. All ordinances or parts of ordinances in conflict with the provisions of this Condominium Hotel Zoning Ordinance are hereby superseded by this Ordinance, to the extent they are inconsistent with this Ordinance. SECTION 5. EFFECTIVE DATE. This Ordinance shall take full force and effect and be in force 30 days after passage. SECTION 6. PUBLICATION. The City Clerk is directed to publish this Ordinance in the manner and in the time required by law. .. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of La Quinta, California, as follows: 1 . That the above recitations are true and constitute the findings of the Planning Commission in this case. 2. That the Planning Commission does hereby recommend approval of Zoning Text Amendment 2006-088, adding Section 9.140.080 to the Municipal Code, as contained in the attached Exhibit "A", to the City Council for the reasons set forth in this Resolution. Planning Commission Resolution 2006- Zoning Text Amendment 2006-088 November 14, 2006 PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta Planning Commission, held on the 14`h day of November, 2006, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: PAUL QUILL, Chairman City of La Quinta, California ATTEST: DOUGLAS R. EVANS Community Development Director City of La Quinta PH #G PLANNING COMMISSION STAFF REPORT DATE: NOVEMBER 14, 2006 CASE NO.: DEVELOPMENT AGREEMENT 2006-012 APPLICANT: I CITY OF LA QUINTA REQUEST: CONSIDERATION OF A DEVELOPMENT AGREEMENT ESTABLISHING THE FEES ASSOCIATED WITH CONDO -HOTEL OCCUPANCY AT THE PROPOSED HOTELS AT SILVERROCK RESORT AND VESTING IN THE DEVELOPER CERTAIN RIGHTS TO DEVELOP THE PROJECT. LOCATION: PROPERTY OWNER: GENERAL PLAN/ ZONING DESIGNATIONS: ENVIRONMENTAL DETERMINATION: SURROUNDING SOUTHWEST CORNER OF JEFFERSON STREET AND AVENUE 52. CITY OF LA QUINTA REDEVELOPMENT AGENCY TOURIST COMMERCIAL THE COMMUNITY DEVELOPMENT, DEPARTMENT HAS REVIEWED THIS PROJECT UNDER THE PROVISIONS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). THE LA QUINTA COMMUNITY DEVELOPMENT DEPARTMENT HAS DETERMINED THAT THE PROPOSED PROJECT WAS PREVIOUSLY REVIEWED AS PART OF THE MITIGATED NEGATIVE DECLARATION FOR THE SILVERROCK RESORT SPECIFIC PLAN (EA NO. 2002-453), AND ITS ADDENDUM, APPROVED BY THE CITY COUNCIL UNDER RESOLUTION NO. 2006-082. CONDITIONS HAVE NOT CHANGED, THE PROJECT IS IN SUBSTANTIAL CONFORMANCE WITH THE SPECIFIC PLAN, AND NO FURTHER ENVIRONMENTAL REVIEW IS REQUIRED (PRC SECTION 21166). LAND USES: NORTH: SOUTH: EAST: WEST: BACKGROUND: GOLF COURSE, AVENUE 52 GOLF COURSE, AVENUE 54 GOLF COURSE, JEFFERSON STREET GOLF COURSE, OPEN SPACE The SilverRock project includes not only the existing golf course, but also public and cultural facilities, a commercial component, a public park, and hotels. All are described in the recently approved SilverRock Specific Plan. As part of the long term development effort, the City has been negotiating with a private developer to undertake the development of the commercial component, and the hotels (the "Project"). This negotiation process has led to the need for certain agreements between the City and the developer, including the Development Agreement before the Planning Commission at this time. The SilverRock Specific Plan divides the site into a number of Planning Areas, including future golf course facilities, public and cultural areas, a public park, and resort commercial facilities. The resort commercial facilities include the following Planning Areas: • Planning Area 3, which allows the development of. a 225 unit/260 keys boutique hotel on 13 acres; • Planning Area 4, which allows a resort hotel and casitas totaling 405 units/520 keys on 30 acres; and • Planning Area 5, which allows the development of 160,000 square feet of mixed use resort retail on nine acres. As the Planning Commission is aware, the Specific Plan is the first step in the entitlement process, which is followed by site -specific :designs for individual projects. As part of the development process, the City has been in negotiations with a private developer to build out Planning Areas 3, 4 and 5. The first step in this long term relationship is to establish the responsibilities of the City and the developer for different parts of the projects. The Development Agreement under consideration at this time is one of these steps. A Development Agreement is a binding agreement between both parties for the purpose of establishing certainty in the development. . The hotel component of the Planning Areas includes condo -hotel units. These units will be sold to individuals for their use, and may also be made available for rental through the hotels, or rented on a short term basis by individual owners. The Development Agreement is being developed to (i) vest in the developer certain rights to develop the Project in accordance with the terms of the Development Agreement, the Specific Plan, a disposition and development agreement between the Developer and the La O.uinta Redevelopment Agency, and other documents, entitlements, and associated conditions, all as referenced in the Development Agreement; and (ii) .provide for the collection and remittance to the City of fees for (a) condo -hotel units which fail to generate specified levels of Transient Occupancy Tax ("TOT"), and (b) all "fractional" units (including timeshare units). The City collects TOT for hotel rooms, but does not have a standard fee collection system for condo -hotel or fractional units. As the Commission is aware, the City has in the past, established individual agreements for the payment of this type of fee on a case -by -case basis. The Development Agreement between the City and LDD SilverRock, LLC, attached to this staff report, establishes the program to collect fees that will be paid by this Project. The Development Agreement also limits the time owners can occupy their units on an annual basis, including during the "high season" (i.e., November 1 — April 30), limits the number of consecutive days owners may occupy their unit, and establishes an "excess use" fee for stays beyond such time.frames, which will be paid to the City, based on the size of the unit. Without the proposed Development Agreement, the City ,would have no other means at this time to collect the equivalent of TOT from short term stays in units within the Project, and would have the potential to lose considerable revenues in the long term. The Development Agreement complies with the State statutes and zoning regulations for the formation of a Development Agreement and further provides for development requirements. The Development Agreement requires annual reviews in accordance with State and local requirements. Conclusion In conclusion, the requested Development Agreement assures the City of long term revenues associated with the development of condo -hotel and similar units within the SilverRock Resort, thereby providing the City with added economic security. The findings to support approval of the project can be made. Public Notice This request was published in the Desert Sun newspaper on November 3, 2006, and mailed to all affected property owners and occupants within 500 feet of the project site as required by Section 9.200.110 of the Zoning Code. To date, no letters have been received. STATEMENT OF MANDATORY FINDINGS: Findings to recommend approval of this request can be made and are contained in the attached Resolution. RECOMMENDATION: 1. Adopt Planning Commission Resolution 2006- recommending to the City Council approval of Development Agreement 2006-012. Attachments: 1. Development,Agreement Prepared b v ) Community'Development Director DRAFT ATTACHMENT #1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 .' Attn: Citv Clerk Space Above This Line for Recorder's Use (Exempt from Recording Fee per Gov't Code § 6103 and 27383) DEVELOPMENT AGREEMENT by and between CITY OF LA QUINTA and LDD SILVERROCK, LLC 882/01561"084 750537.03 a11/09/06 - _1- TABLE OF CONTENTS Page 1.0 GENERAL........................................................................................................................2 1.1 Term......................................................................................................................2 1.2 Effective Date........................................................................................................3 1.3 Amendment or Cancellation.................................................................................3 1.4 Termination...........................................................................................................3 1.5 Definitions.............................................................................................................3 2.0 DEVELOPER'S RIGHTS AND LIMITATIONS REGARDING CONSTRUCTION OF THE PROJECT...........................................................................6 2.1 Right to Develop...................................................................................................6 2.2 Additional Applicable Codes and Regulations.....................................................7 2.3 Permitted Density, Height and Use Limitations...................................................7 3.0 DEVELOPER'S OBLIGATIONS....................................................................................7 3.1 Development and Operation of the Project...........................................................7 3.2 Conditions of Approval; Mitigation Monitoring Program....................................8 3.3 Declaration of Covenants, Conditions and Restrictions.......................................8 3.3.1 Recordation of City Declaration of CC&Rs.............................................8 3.4 Sign Agreements...................................................................................................8 3.5 Maintenance Agreements......................................................................................9 3.6 Water Agreements.................................................................................................9 3.7 Other Fees and Charges; Assessment Appeals.....................................................9 3.8 Dedications and Improvements........................................................... :................. 9 3.9 Indemnification...................................................................................................10 3.10 Insurance.............................................................................................................10 4.0 CITY'S OBLIGATIONS................................................................................................12 4.1 Scope of Subsequent Review/Confirmation of Compliance Process.................12 4.2 Project Approvals Independent..........................................................................12 4.3 Review for Compliance.......................................................................................12 4.4 City Ground Lease..............................................................................................13 5.0 DEFAULT; REMEDIES; DISPUTE RESOLUTION....................................................13 5.1 Notice of Default.................................................................................................13 5.2 Cure of Default....................................................................................................13 5.3 City Remedies.....................................................................................................13 5.4 Developer's Exclusive Remedy..........................................................................14 6.0 MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE.................................14 6.1 Encumbrances on the Project Site......................................................................14 6.2 Mortgage Protection............................................................................................14 6.3 Mortgagee Not Obligated....................................................................................14 6.4 Notice of Default to Mortgagee; Right of Mortgagee to Cure ............................15 882/015610-0094 750537.03 a11/09,06 _i Page 7.0 TRANSFERS OF INTEREST IN SITE OR AGREEMENT.........................................15 7.1 Transfers of Interest in Site or Agreement..........................................................15 7.1.1 Transfers of Interest in Site or Agreement Prior to Agency's Issuance of a Release of Construction Covenants...................................15 7.1.2 Transfers of Operational Obligations......................................................16 7.1.3 Assignment and Assumption of Obligations..........................................16 7.2 Successors and Assigns.......................................................................................16 7.3 Assignment by City.............................................................................................17 8.0 MISCELLANEOUS .......................................................................................................17 8.1 Notices ............. ................................................................:................................... 17 8.2 Force Majeure.....................................................................................................18 8.3 Binding Effect..................................................................................................... 18 8.4 Independent Entity.............................................................................................. 18 8.5 Agreement Not to Benefit Third Parties.............................................................18 8.6 Covenants..........................................................................................................:.18 8.7 Nonliability of City Officers and Employees..................................................... 19 8.8 Covenant Against Discrimination.......................................................................19 8.9 Amendment of Agreement .............................................. :................................... 19 8.10 No Waiver............................................................................................................ 19 8.11 Severability.........................................................................................................19 8.12 Cooperation in Carrying Out Agreement ........................ .................................... 19 8.13 Estoppel Certificate.............................................................................................20 8.14 Construction........................................................................................................20 8.15 Recordation.........................................................................................................20 8.16 Captions and References.....................................................................................20 8.17 Time....................................................................................................................20 8.18 Recitals & Exhibits Incorporated; Entire Agreement.........................................20 8.19 Exhibits...............................................................................................................21 8.20 Counterpart Signature Pages...............................................................................21 8.21 Authority to Execute...........................................................................................21 8.22 City Approvals and Actions................................................................................21 8.23 Governing Law; Litigation Matters....................................................................21 8.24 No Brokers..........................................................................................................22 882/015610-0084 750537.03 al 1,09/06 -11- DRAFT DEVELOPMENT AGREEMENT This Development Agreement (the "Agreement') is entered into as of the _ day of , 2006 ("Reference Date"), by and between the CITY OF LA QUINTA, a California municipal corporation and charter city organized and existing under the Constitution of the State of the California (the "City"), and LDD SILVERROCK, LLC, a Delaware limited liability company (the "Developer"), with reference to the following: , RECITALS: A. Government Code Sections 65864-65869.5 ("Development Agreement Act') authorize the City to enter into a binding development agreement for, the development of real property within its jurisdiction with persons having legal or equitable interest in such real property. B. Pursuant to Section 65865 of the Government Code, ,the City has adopted its Development Agreement Ordinance (La Quinta Municipal Code Section 9.250.030) establishing procedures and requirements for such development agreements ("Development Agreement Ordinance"). C. Prior to or concurrently with the execution of this Agreement, Developer has entered into a Disposition and Development Agreement (the "DDA") with the La Quinta Redevelopment Agency("Agency"), pursuant to which (1) the Agency, subject to the terms and conditions set forth in the DDA, has agreed to sell to the Developer, in multiple phases, certain real property located within the City at the southeast intersection of Jefferson Street and Avenue 52 which is legally described in Exhibit A-1 attached hereto and shown on the Site Map attached hereto as Exhibit A-2 (the "Site"); and (2) the Developer has agreed to construct on the Site the "Project," which will consist of a commercial development, and other permitted uses. The Project is more fully described in, and subject to (i) this Agreement, (ii) the SilverRock Resort Specific Plan, also known as Specific Plan 06-080, which was amended by Resolution No. 2006-083, which resolution was duly adopted by the City Council on July 18, 2006 (the "Specific Plan"); (iii) the DDA, (iv) the Mitigated Negative Declaration prepared for the Project, approved by the Agency on May 15, 2002, by Agency Resolution 2002-09, as amended by the Addendum to Mitigated Negative Declaration, approved by the City Council on July 18, 2006, by City Council Resolution No. 2006-082 (collectively, the "Revised Mitigated Negative Declaration'); (v) any future Site Development Permits issued for the Project, including all conditions of approval attached thereto (collectively, the "Project Site Development Permits"); and (vi) the conditions of approval associated with each and all of the foregoing approvals (collectively, the "Conditions of Approval"). The documents described in the foregoing clauses (i)-(vi) are collectively referred to herein as the "Development Plan," and are, or when approved or issued shall be, on file with the City Clerk. D. By virtue of the DDA, as of the execution of this Agreement, the Developer has an equitable interest in the Site. By its execution of the consent form attached to this Agreement, the Agency consents to recordation of this Agreement against the Site. E. Consistent with Section 9.250.030 of the La Quinta Municipal Code, City and Developer desire to enter into a binding agreement for purposes of (i) obligating Developer to 991015610-0084 _ 750537.03 al VOW% -1 DRAFT enter into and record, against each Parcel a Declaration of Covenants, Conditions and Restrictions that sets forth certain requirements of the owners of (a) the Condominium Hotel Units to pay certain resort fees if their unit fails to generate specified levels of Transient Occupancy Tax, and (b) the Fractional Units to pay a Resort Fee; (ii) requiring the Developer to enter into maintenance agreements with the Agency or City obligating the Developer to maintain certain portions of the golf course lakes located or to be located adjacent to the Property and certain roadways, all as depicted on Exhibit "B" hereof, whichis attached hereto and incorporated herein by this reference (collectively, the "Public Improvements"); (iii) requiring the Developer to enter into water agreements and signage agreements; and (iv) setting forth the extent to which Developer may construct, develop, use and operate the Project. F. Among other purposes, this Agreement is intended to be, and shall be construed as, a development agreement within the meaning of the Development Agreement Act. This Agreement will eliminate uncertainty in planning for and secure the orderly development of the Project, ensure a desirable and functional community environment, provide effective and efficient development of public facilities, infrastructure, and services appropriate for the development of the Project, and assure attainment of the maximum effective utilization of resources within the City, by achieving the goals and purposes of the Development Agreement Act. In exchange for these benefits to City, Developer desires to receive the assurance that they may proceed with development of the Project in accordance with the terns and conditions of this Agreement and the Development Plan, all as more particularly set forth herein. G. The City Council has determined that the Project and this Agreement are consistent with the City's General Plan and the Specific Plan, including the goals and objectives thereof. H. All actions taken by City have been duly taken in accordance with all applicable legal requirements, including the California Environmental Quality Act (Public Resources Code Section 21000, et seq.) ("CEQA"), and all other requirements for notice, public hearings, findings, votes and other procedural matters. I. On 2006, the City Council adopted its Ordinance No. approving this Agreement. AGREEMENT. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and legal sufficiency of which is hereby acknowledged, the parties do hereby agree as follows:. 1.0 GENERAL 1.1 Term. The term of this Agreement shall commence on the Effective Date hereof and shall continue for fifty (50) years thereafter, unless said term is otherwise terminated, modified, or extended by circumstances set forth in this Agreement or by mutual consent of the parties hereto after the satisfaction of all applicable public hearing and related procedural requirements. 882/015610-0084 750537.03 al 1/09/06 DRAFT 1.2 Effective Date. This Agreement shall be effective, and the obligations of the parties hereunder shall be effective, as of 2006, which is the date that Ordinance No. takes effect ("Effective Date"). 1.3 Amendment or Cancellation. Except as expressly stated to the contrary herein, this Agreement may be amended or canceled in whole or in part only by mutual consent of the parties and in the manner provided for in Government Code Section 65867-65868 and the City's Development Agreement Ordinance. 1.4 Termination. Unless terminated earlier, pursuant to the terms hereof, this Agreement shall automatically terminate and be of no further effect upon the expiration of the Term of this Agreement as set forth in Section 1.1. Termination of this Agreement, for any reason, shall not, by itself, affect any right or duty arising from entitlements or approvals set forth under the Development Plan. Notwithstanding anything herein to the contrary, in the event the "Initial Escrow" (as that term is defined in the DDA) fails to close within the time set forth in the DDA, as such time may be extended pursuant to the terms of the DDA, this Agreement shall automatically terminate and the Developer and City agree to execute and record such document as the Title Company (as defined in the DDA) reasonably requires to remove this Agreement.of record. 1.5 Definitions. 1.5.1 "Agency" shall have the meaning ascribed in Recital C hereof. 1.5.2 "Black Box Parcel" shall mean that certain real property designated as Lot _ on the Parcel Map. The Black Box Parcel is comprised of approximately acres. 1.5.3 "Boutique Hotel Parcel" shall mean that certain real property designated as Lot 19 on the Parcel Map. The Boutique Hotel Parcel is comprised of approximately acres. The Boutique Hotel Parcel may be subdivided into two or more legal parcels after the Reference Date. In such event, when used herein, the terms "Boutique Hotel Parcel" shall refer to all such legal parcels. 1.5.4 " "City" shall mean the City of La Quintal a California municipal corporation and charter city organized and existing under the Constitution of the State of California. 1.5.5 "City Declaration of CC&Rs" shall have the meaning ascribed in Section 3.3.1 hereof. 882/015610-0084 750537.03 al 1/09/06 DRAFT 1.5.6 "City Ground Lease" shall mean the ground 1 pursuant to which the City shall lease to Developer the Resort Retail Village Parcel. The form of the City Ground Lease shall be negotiated between the parties and shall be approved by the City Attorney. 1:5.7 "Conditions of Approval' shall have the meaning ascribed in Recital C hereof. 1.5.8 "Condominium Hotel Unit" means a Unit which is sold to an individual, third party owner. 1.5.9 "CVWD" shall have the meaning ascribed in Section 3.6 hereof. 1.5.10 "DDA" shall have the meaning ascribed in Recital C hereof. 1.5.11 "Developer" shall mean LDD SilverRock, LLC, a Delaware limited liability company.. 1.5.12 "Developer CC&Rs" shall have the meaning ascribed in Section 3.3.2 hereof. 1.5.13 "Development Agreement Act' shall have the meaning ascribed in Recital A hereof. 1.5.14 "Development Agreement Ordinance" shall have the meaning ascribed in Recital B hereof. 1.5.15 "Development Plan" shall have the meaning ascribed in Recital C hereof. 1.5.16 "Existing Development Regulations" shall have the meaning ascribed in Section 2.1 hereof. 1.5.17 "Fee Transfer Release Date" shall have the meaning ascribed in Section 7.1.1 hereof. 1.5.18 "Four Star Quality" means that the applicable component of the Project offers and provides the services, facilities and amenities listed in Exhibit "C", which is attached hereto and incorporated herein by this reference. 1.5.19 "Fractional Unit' means a Condominium Hotel Unit which is divided into multiple fractional interests, including, without limitation, timeshare interests, each of which can either be owned by a separate owner or by single owner, and each of which gives such owner the right to use such Condominium Hotel Unit for a different period of time. 1.5.20 Golf Casitas Parcel' shall mean that certain real property designated as Lot l 1 on the Parcel Map. The Golf Casitas Parcel is comprised of approximately eight and seven tenths (8.7) acres. 882/015610-0084 750537.03.11109/06 DRAFT 1.5.21 "Lake Casitas Parcel' shall mean that certain real property designated as Lot _ on the Parcel Map. The Lake Casitas Parcel is comprised of approximately acres. 1.5.22 "Lowe Enterprises" means Lowe Enterprises, Inc., a California corporation, which is an affiliate of Developer. 1.5.23 "Management Transfer" shall have the meaning ascribed in Section 7.1.2 hereof. 1.5.24 "New Laws" shall have the meaning ascribed in Section 2.1 hereof. 1.5.25 "Operating Covenant Release Date" shall have the meaning ascribed in Section 7.1.2 hereof. 1.5.26 "Parcel' shall mean any of the Boutique Hotel Parcel, Black Box Parcel, Resort Hotel.Parcel, Resort Retail Village Parcel, Golf Casitas Parcel, or Lake Casitas Parcel. 1.5.27 "Parcel Map" means Parcel Map No. 33367, which has been prepared by the Agency for recordation in the Official Records of Riverside County, California, prior to or concurrently with the first closing contemplated under the DDA. A copy of the Parcel Map is attached to the DDA as Attachment No. 11. 1.5.28 "Phase of Development" shall mean the component of the Project to be constructed on a particular Parcel, as further described in the DDA. 1.5.29 "Project" shall have the meaning ascribed in Recital C hereof. 1.5.30 "Project Site Development Permits" shall have the meaning ascribed in Recital C hereof. 1.5.31 "Reference Date" shall have the meaning .'ascribed in the preamble hereof. 1.5.32 "Resort Hotel Parcel' means that certain real property designated as Lot on the Parcel Map. The Resort Hotel Parcel is comprised of approximately _ acres. 1.5.33 ' "Resort Retail Village Parcel' means that certain real property designated as Lot 5 on the Parcel Map. The Resort Retail Village Parcel is comprised of approximately acres. 1.5.34 "Revised Mitigated Negative Declaration shall have the meaning ascribed in Recital C hereof. 1.5.35 "Site" shall have the meaning ascribed in Recital C hereof. 1.5.36 "Specific Plan" shall have the meaning ascribed in Recital C hereof. 1.5.37 "Term" shall have the meaning ascribed in Section 1.1 hereof. 882/015610-0084 750537.03 a11/09/06 DRAFT 1.5.38 "Transfer" shall have the meaning ascribed in Section 7.1.1 hereof 1.5.39 "Transient Occupancy Tax" shall have the meaning ascribed in Chapter 3.24 of the La Quinta Municipal Code. 1.5.40 : "Unit" shall mean one of the approximately six hundred thirty (630) guest units comprising the Project. 2.0 DEVELOPER'S RIGHTS AND LIMITATIONS REGARDING CONSTRUCTION OF THE PROJECT 2.1 Right to Develop. Subject to the terms, conditions, and covenants of this Agreement, Developer's right to develop the Project in accordance with the Development Plan (and subject to the Conditions of Approval) shall be deemed vested upon approval of the Development Plan, which vesting shall expire upon the earlier of the following occurrences: (a) termination of this Agreement; (b) termination of the DDA; (c) an uncured material default by Developer of this Agreement or the DDA; (d) as to a particular Phase of Development, or a particular Parcel, the earlier of the final approved City inspection of the completed development of such Phase of Development or Parcel, or the issuance by City of a certificate of occupancy for such Phase of Development or Parcel; or (e) as to a particular Phase of Development, or a particular Parcel, the date set forth in the DDA when Developer was required to have completed the development of all improvements of such Phase of Development or Parcel. Except for the expiration set forth in clause (a) of the preceding sentence, the. expiration of the vesting right set forth in the preceding sentence shall not terminate the obligations of Developer under this Agreement. Notwithstanding anything in this Agreement to the contrary, the Project shall remain subject to: (i) all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and committees existing on the Effective Date of this Agreement (collectively, the "Existing Development Regulations"); (ii) all amendments or modifications to Existing Development Regulations after the Reference Date of this Agreement and all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and committees enacted or adopted after the Effective Date of this Agreement (collectively, "New Laws"), except such New Laws which would prevent or materially impair Developer's ability to develop the Project in accordance with the Development Plan unless such New Laws are (A) adopted by the City on a City-wide basis and applied to the Site in a non-discriminatory manner, (B) required by a non -City entity to be adopted by or applied by the City (or if optional the failure to adopt or apply such non -City law or regulation would cause City to sustain a loss of funds or loss of access to funding or other resources), or (C) New Laws the City reserves the right to apply under this Agreement, including but not limited to Sections 2.2 and 3.7; (iii) all subsequent development approvals and the conditions of approval associated therewith, , including but not limited to Site Development Permits and building permits, 982/015610-0084 _ 750537.03 a11/09/06 -6 DRAFT (iv) the payment of all fees or exactions in the categories and in the amounts as required at the time such fees are due and payable which may be at the time of issuance of building permits, or otherwise as specified by applicable law, as existing at the time such fees are due and payable, and (v) the reservation or dedication of land for public purposes or payment of fees in lieu thereof as required at the time such reservations or dedications or payments in lieu are required under applicable law to be made or paid. 2.2 Additional Ayvlicable Codes and Regulations Notwithstanding any other provision of this Agreement, City also reserves the right to apply the following to the development of the Project: 2.2.1 Building, Electrical, Mechanical, Fire and similar building codes based upon uniform codes adopted in, or incorporated by reference into, the La Quinta Municipal Code, as existing on the Reference Date of this, Agreement or as may be enacted or amended thereafter, applied to the Project in a nondiscriminatory manner. 2.2.2 In the event of fire or other casualty requiring construction of more than fifty (50%) percent of any building previously constructed hereunder, nothing herein shall prevent the City from applying to such reconstruction all requirements of the City's Building, Electrical, Mechanical, Fire, and similar building codes based upon uniform codes adopted in, or incorporated by reference into, the La Quinta Municipal Code, solely to the extent applicable to all development projects in the City. 2.2.3 This Agreement shall not prevent the City from establishing any new City fees, including new development impact fees, or increasing any existing City fees, including existing development impact fees, including but not limited to the resort fees described in and required pursuant to the City Declaration of CC&Rs, and to apply such new or increased fees to the Project or applicable portion thereof where such new or increased fees may be charged. 2.3 Permitted Density Height and Use Limitations. The permitted uses, density and intensity of use, location of uses, maximum height and size of proposed buildings, minimum setbacks, and other standards applicable to the Project shall be those set forth in the Development Plan and this Agreement, whichever is the strictest. 3.0 DEVELOPER'S OBLIGATIONS 3.1 Development and Operation of the Project. Developer shall construct the Project on the Site in accordance with the Development Plan. Notwithstanding anything herein to the contrary, until the Operating Covenant Release Date for each Phase of Development that includes Condominium Hotel Units, Developer or an Authorized Manager shall retain full management and operational control over all components of the Phase of Development, except for the individual Condominium Hotel Units that are sold to third -party buyers. The Authorized Manager of the hotel and casitas to be developed on the 882/015610-0084 _ 750537.03 al 1109/06 -7 DRAFT Resort Hotel Parcel shall also be the Authorized Manager for the casitas to be developed on the Golf Casitas Parcel and the Resort Casitas Parcel. Developer, on behalf of itself and any Authorized Manager, covenants and agrees that until the Operating Covenant Release Date, each of the Phases of Development that include Condominium Hotel Units shall be operated in a first class, Four Star Quality condition. No more than once per year prior to the applicable Operating Covenant Release Date, the City may select an independent consultant to perform a quality audit of the foregoing Phases of Development for purposes of determining that the applicable Phase of Development is substantially operating at a Four Star Quality. The then -owner of the applicable Phase of Development shall reimburse the City for the costs of such audit 3.2 Conditions of Anprov4 Mitigation Monitoring Program. Developer shall comply with all Conditions of Approval.. The Developer shall also comply with the mitigation monitoring program set forth in Exhibit "D" attached hereto, which includes and incorporates the mitigation measures of the Revised Mitigated Negative Declaration to ensure that significant environmental effects will be mitigated or avoided (the "Mitigation Monitoring Program"). 3.3 Declaration of Covenants Conditions and Restrictions. 3.3.1 Recordation of City Declaration of CC&Rs. As one of Agency's conditions to closing under the DDA for any Parcel that will be developed with Condominium Hotel Units and/or Fractional Units(a), Developer shall have entered into with the City and recorded against the underlying Parcel a Declaration of Covenants, Conditions and Restrictions in the form attached hereto and incorporated herein as Exhibit "E" (a "City Declaration of CC&Rs"). 3.3.2 Recordation of Developer CC&Rs. Prior to and as a condition to the City's issuance of a temporary or final certificate of occupancy for any Parcel that will be developed with Condominium Hotel Units and/or Fractional Units, Developer shall have submitted to City, obtained City's approval of, and recorded against the underlying Parcel, a declaration of covenants, conditions, and restrictions that (i) establishes a homeowners' association, (ii) is necessary to create a condominium regimen for the condominiums described on the Condominium Plan to be recorded in accordance with all applicable laws; (iii) clearly sets forth the maintenance obligations of the owners of the Condominium Hotel Units and Fractional Units; (iv) sets forth the obligations of the owners of the Condominium Hotel Units to pay certain resort fees, as further set forth in the City Declaration of CC&Rs; and (v) includes a disclosure regarding the public ownership and control of the existing golf course and any future golf course that may be developed in the SilverRock Resort Area and a statement that Developer does not and cannot guarantee that the City will not make changes to such golf course(s) or change the use of the underlying real property. 3.4 Sign Agreements. As one of Agency's conditions to closing under the DDA for the Boutique Hotel Parcel, Resort Hotel Parcel, and Resort Retail Village Parcel, Developer shall enter into with the City or the Agency (as applicable) a signage agreement for such Parcel. Notwithstanding other signage locations to be determined during the site.development permit process, the signage agreement for 882/015610-0094 750537.03 a11/09/06 DRAFT the Boutique Hotel Parcel shall provide for signage along Avenue 52, at the entry point to the development; the signage agreement for the Resort Hotel Parcel shall provide for signage on Jefferson Street, at the Resort Hotel entry point; the signage agreement for the Resort Retail Village Parcel shall provide for signage at the corner of Avenue 52 and Jefferson Street, Avenue 54 and Jefferson Street, and on Avenue 54, at the entry into SilverRock. 3.5 Maintenance Agreements. As one of Agency's conditions to closing for each Parcel under the DDA, Developer shall enter into with the City or the Agency (as applicable) a maintenance agreement requiring the Developer to maintain the Public Improvements located adjacent to such Parcel. 3.6 Water Agreements City has entered into with the Coachella Valley Water District ("CVWD") that certain Domestic Water and Sanitation Systems Installation and Irrigation Service Agreement dated on or about June 11, 2005, and recorded in the Official Records of the County of Riverside, as Instrument No. 2005-0852063, on June 14, 2005 (the "CVWD Agreement"). Pursuant to the CVWD Agreement, the owner/developer of each Parcel is required to execute and record a Domestic Water and/or Sanitation Systems Installation Agreement, substantially in the form attached to the CVWD Agreement as Exhibit C (a "Water Agreement"), prior to obtaining domestic water service for each said Parcel. As one of Agency's conditions to closing for each Parcel under the DDA; Developer shall execute and record against such Parcel at the Closing therefor a Water Agreement. 3.7 Other Fees and Charges; Assessment Appeals. Nothing set forth in this Agreement is intended or shall be construed to limit or restrict the City's authority to impose its existing, or any new or increased, fees, charges, levies, or assessments for the development of the Site, or to impose or increase, subject to the required procedure, any taxes applicable to the Site including but not limited to: transient occupancy taxes, provided nothing set forth herein, subject to the next sentence, is intended or shall be construed to limit or restrict whatever right Developer might otherwise have to challenge any fee, charge, levy, assessment, or tax imposed. Developer agrees that it shall not take any action, including any assessment appeal, to decrease the assessed value of any of the Site or any portion thereof below the final assessed value at the time the development of the Site or separate Parcel thereof is completed. Developer shall timely pay all applicable fees, charges, levies, assessments, and special and general taxes validly imposed in accordance with the Constitution and laws of the State of California, including without limitation school impact fees in accordance with Government Code §§ 65995, et seq. 3.8 Dedications and Improvements. Developer shall offer dedications to the City or other applicable public agency, or complete those public improvements in connection with the Project, as specified in the Conditions of Approval. 882/015610-0084 _ 750537.03 al l/09/06 _9 DRAFT 3.9 Indemnification. a. The Developer agrees to and shall indemnify, hold harmless, and defend, the City and the Agency and their respective officers, officials, members, agents, employees, and representatives, from liability or claims for death or personal injury and claims for property damage which may arise from the acts, errors, and/or omissions of the Developer or its contractors, subcontractors, agents, employees or other persons acting on its behalf in relation to the Project and/or this Agreement. The foregoing indemnity applies to all deaths, injuries, and damages, and claims therefor, suffered or alleged to have been suffered by reason of the acts, errors, and/or omissions referred to in this paragraph, regardless of whether or not the City prepared, supplied, or approved plans or specifications, or both, and regardless of whether or not the insurance policies referred to in this Agreement are applicable. In the event of litigation, the City agrees, at no cost to the City, to cooperate with the Developer. b. In the event of any court action or proceeding challenging the validity of this Agreement or the Revised Mitigated Negative Declaration, the Developer shall indemnify, hold harmless, pay all costs and provide defense for the City in said action or proceeding with counsel chosen by Developer and reasonably approved by the City. The City shall, at no cost to the City, cooperate with the Developer in any such defense as Developer may reasonably request. In the event the Developer fails or refuses to provide such defense of any challenge to this Agreement or the Revised Mitigated Negative Declaration, City shall have the right not to defend such challenge, and to resolve such challenge in any manner it chooses in its sole discretion, including terminating this Agreement. 3.10 Insurance. Before beginning construction on the Site, the Developer shall cause the insurance required under this paragraph to be issued and thereafter to be maintained until one (1) year following the later of (i) the date City issues the last certificate of occupancy needed for the initial occupancy of the last portion of the Project, or (ii) the date the City signs off on the last final inspection of the last of the Project improvements. Developer shall procure and maintain: A policy of commercial general liability insurance written on a per occurrence basis in an amount not less than Three Million Dollars ($3,000,000.00) per occurrence and Three Million Dollars ($3,000,000.00) in the aggregate. A policy of workers' compensation insurance in such amount as will fully comply with the laws of the State of California against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by Developer in the course of carrying out the work or services contemplated in this Agreement. A policy of commercial automobile liability insurance written on a per occurrence basis in an amount not less than Three Million Dollars ($3,000,000.00). ' Said policy shall include coverage for owned, non -owned, leased, and hired cars. The following additional requirements shall apply to all of the above policies of insurance: 882,015610-0084 - -10- 750537.03 at 1/09/06 - DRAFT All of the above policies of insurance shall be primary insurance and, except the Worker's Compensation insurance, shall name City, Agency, and their respective officers, officials, members, employees, agents, and representatives as additional insureds, using a pre 2004 additional insured endorsement (or equivalent). The insurer shall waive all rights of subrogation and contribution it may have against City, Agency, and their officers, officials, members, employees, agents, and representatives, and their respective insurers. All of said policies of insurance shall provide that said insurance may not be materially amended or cancelled without providing thirty (30) days' prior written notice to City and Agency. In the event any of said policies of insurance are cancelled, the Developer shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section to the City Manager. Not later than the Reference Date, Developer shall provide the City Manager with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders shall be subject to the reasonable approval of the City Manager. Upon the request of the City Manager, Developer shall provide City with complete copies of each policy of insurance required by this Agreement. The policies of insurance required by this Agreement shall be satisfactory only if issued by companies (i) licensed and admitted to do business in California, rated "A" or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, or (ii) authorized to do business in California, rated "A+" or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Registry and only if they are of a financial category Class XV. Notwithstanding the foregoing, in the event that the policies required hereunder are not available from such insurers at commercially reasonable rates, the City Manager shall have the authority, in his or her sole and absolute discretion, to waive one or more of such requirements provided the proposed policies will adequately protect the City's interests hereunder. City may reasonably require coverage increases, provided that the percentage increase in coverage shall not be required to exceed the percentage increase in the Consumer Price Index published by the United States Department of Labor, Bureau of Labor Statistics, for Urban Wage Earners and Clerical Workers, Los Angeles -Riverside -Orange County Average, All Items (1984 = 100) (the "Index"), from and after the date of this Agreement, or, if said Index is discontinued, such official index as may then be in existence and which is most nearly equivalent to said Index (the "CPI Adjustment"). Unless otherwise approved in advance by the City Manager, the insurance to be provided by Developer may provide for a deductible or self -insured retention of not more than Fifty Thousand Dollars ($50,000), with such maximum amount to increase at the same rate as the periodic increases in the minimum amount of total insurance coverage set forth above. Developer agrees that the provisions of this Section shall not be construed as limiting in any way the extent to which Developer may be held responsible for the payment of damages to any persons or property resulting from the Developer's activities or the activities of any person or persons for which the Developer is otherwise responsible. Developer agrees that the provisions of this Section shall not be construed as limiting in any way Developer's indemnity obligations set forth in Section 3.9 or the extent to which Developer may be held responsible for the payment of damages to any persons or property 882/0156IM084 -11- 750537.03 al1/09/06 ' DRAFT resulting from the Developer's activities or the activities of any person or persons for which the Developer is otherwise responsible. 4.0 CITY'S OBLIGATIONS 4.1 Scope of Subsequent Review/Confirmation of Compliance Process. Nothing set forth herein shall impair or interfere with the right of the City to require the processing of building permits as required by law pursuant to the applicable provisions of the La Quinta Municipal Code and the provisions of City's Fire Codes and ordinances, Health and Safety Codes and ordinances, and Building, Electrical, Mechanical, and similar building codes. Prior to each request for a building permit, Developer shall provide City with a Compliance Certificate ("Certificate") in a form created by Developer and approved by the City, which shall describe how all applicable Conditions of Approval have been fully complied with. The Certificate shall be distributed to relevant City departments for checking the representations made by Developer on the Certificate. 4.2 Project Approvals Independent. All approvals required for the Project which may be or have been granted, and all land use entitlements or approvals generally which have been issued or will be issued by the City with respect to the Project, constitute independent actions and approvals by.the City. If any provision of this Agreement or the application of any provision of this Agreement to a particular situation is held by a court of competent jurisdiction to be invalid or unenforceable, or if this Agreement terminates for any reason, then such invalidity, unenforceability or termination of this Agreement or any part hereof shall not affect the validity or effectiveness of any such Project approvals or other land use approvals and entitlements. In such cases, such approvals and entitlements will remain in effect pursuant to their own terms, provisions, and the Conditions of Approval. It is understood by the parties to this Agreement that pursuant to existing law, if this Agreement terminates or is held invalid or unenforceable as described above, such approvals and entitlements shall not remain valid for the term of this Agreement, but shall remain valid for the term of such approvals and entitlements. 4.3 Review for Compliance. The City shall review this Agreement at least once during every twelve (12) month period following the Effective Date of this Agreement, in accordance with; the City's procedures and standards for such review set forth in the City's Development Agreement Ordinance. During such periodic review by the City, the Developer, upon written request from City, shall be required to demonstrate, and hereby agrees to furnish, evidence of good faith compliance with the terms hereof. The failure of the City to conduct or complete the annual review as provided herein or in accordance with the Development Agreement Act shall. not impact the validity of this Agreement. If, at the conclusion of the annual review provided for herein, Developer shall have been found in compliance with this Agreement, City, through the City's Community Development Director, shall, at Developer's written request, issue a Certificate of Compliance to Developer stating that this Agreement remains in full force and effect and (2) Developer is in compliance with this Agreement. The Certificate of Compliance shall be in recordable form, and 8821015610-0084 -12- 750537.03 all/09/06 DRAFT shall contain information necessary to communicate constructive record notice of the finding of compliance. Developer, at its option and sole cost, may record the Certificate of Compliance. 4.4 City Ground Lease. Pursuant to the DDA, the Agency may transfer the Parcel designated therein as the "Resort Retail Village Parcel" to the City. In the event the Agency elects to so transfer, City shall, concurrently with such transfer, enter into the Ground Lease. Notwithstanding anything to the contrary herein, the Ground Lease shall be for a term of fifty-five (55) years, and shall include the following rent schedule: [TO BE INSERTED] 5.0 DEFAULT,• REMEDIES, DISPUTE RESOLUTION. 5.1 Notice of Default. In the event of failure by either party hereto substantially to perform any material term or provision of this Agreement, the non -defaulting party shall have those rights and remedies provided herein, provided that such non -defaulting party has first provided to the defaulting party a written notice of default in the manner required by Section 8.1 hereof identifying with specificity the nature of the alleged default and the manner in which said default may satisfactorily be cured. 5.2 Cure of Default. Upon the receipt of the notice of default, the alleged defaulting party shall promptly commence to cure, correct, or remedy the identified default at the earliest reasonable time after receipt of the notice of default and shall complete the cure, correction or remedy of such default not later than five (5) days [or thirty (30) days for non -monetary defaults] after receipt of the notice of default, or; for such defaults that cannot reasonably be cured, corrected or remedied within five (5) days [or thirty (30) days for non -monetary defaults], such party shall commence to cure, correct, or remedy such default within such five (5) day period [or thirty (30) day period for non -monetary defaults], and shall continuously and diligently prosecute such cure, correction or remedy to completion. 5.3 City Remedies. In the event of an uncured default by Developer of the terms of this Agreement, the City, at its option, may institute legal action in law or in equity to cure, correct, or remedy such default, enjoin any threatened or attempted violation, or enforce the terms of this Agreement; provided, however, that in no event shall City be entitled to consequential damages for any Developer default. For purposes of this Agreement the term "consequential damages" shall include, but not be limited to, potential loss of anticipated tax revenues from the Project or any portion thereof. Furthermore, the City, in addition to or as an alternative to exercising the remedies set forth in this Section 5.3, in the event of a material default by Developer, may give notice of its intent to terminate or modify this Agreement pursuant to the City's, Development Agreement Ordinance and/or the Development Agreement Act, in which event the matter shall be scheduled for consideration and review by the City Council in the manner set forth in the City's Development Agreement Ordinance or the Development Agreement Act. 882/015610-0064 -13- 750537.03a11/09/06 DRAFT 5.4 Developer's Exclusive Remedy. The parties acknowledge that the City would not have entered into this Agreement if it were to be liable in damages under or with respect to this Agreement or any of the matters referred to herein including but not limited to the Development Plan, Conditions of Approvals, the Existing Development Regulations or any future amendments or enactments thereto, or the Project, except as provided in this. Section. Accordingly, Developer covenants on behalf of itself and its successors and assigns, not to sue the City for damages or monetary relief for any breach of this Agreement by City or arising out of or connected with any dispute, controversy, or issue between Developer and.City regarding this Agreement or any of the matters referred to herein including but not limited to the application, interpretation, or effect of this Agreement, the Development Plan, the Conditions of Approval, the Existing Development Regulations or any future amendment or . enactments thereto, or any land use permit or approval sought in connection with the development of the Project or any component thereof, or use of a parcel or any portion thereof, the parties agreeing that declaratory and injunctive relief, mandate, and specific performance shall be Developer's sole and exclusive judicial remedies. 6.0 MORTGAGEE PROTECTION: CERTAIN RIGHTS OF CURE 6.1 Encumbrances on the Project Site. This Agreement shall not prevent or limit the Developer from encumbering the Site or any portion thereof or any improvements thereon with any mortgage, deed of trust, sale and leaseback arrangement, or any other form of conveyance in which the Site, or a portion thereof or interest therein, is pledged as security, and contracted for in good faith and fair value (a "Mortgage") securing financing with respect to the construction, development, use or operation of the Project. 6.2 Mortgage Protection. This Agreement shall be superior and senior to the lien of any Mortgage. Notwithstanding the foregoing, no breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value, and any acquisition or acceptance of title or any right or interest in or with respect to the Site or any portion thereof by a holder of a beneficial interest under a Mortgage, or any successor or assignee to said holder. (a "Mortgagee") [whether pursuant to foreclosure, trustee's sale, deed in lieu of foreclosure, lease termination or otherwise] shall be subject to all of the terms and conditions of this Agreement. 6.3 Mortgagee Not Obligated. No Mortgagee will have any obligation or duty under this Agreement to perform the obligations of the Developer or other affirmative covenants of Developer hereunder, or to guarantee such performance, except that (i) the Mortgagee shall have no right to develop or operate the Site, and (ii) to the extent that any covenant to be performed by the Developer is a condition to the performance of a covenant by the City, the performance thereof shall continue to be a condition precedent to the City's performance hereunder. 882/015610-0084 -14- 750537.03 a11,09/06 DRAFT 6.4 Notice of Default to Mortgagee: Right of Mortgagee to Cure. City shall, upon written request therefor to the City, deliver to each Mortgagee a copy of any notice of default given to Developer under the terms of this Agreement, at the same time of sending such notice of default to Developer. The Mortgagee shall have the right, but not the obligation, within five (5) days [or thirty (30) days for non -monetary defaults] after the receipt of such notice from City, to cure, correct, or remedy the default, or, for such defaults that cannot reasonably be cured, corrected, or remedied within five (5) days [thirty (30) days for non - monetary defaults], to commence to cure, correct, or remedy the default within such five (5) day period [or thirty (30) day period for non -monetary defaults], and to continuously and diligently .prosecute such cure to completion. If the default is of a nature which can only be remedied or cured by such Mortgagee upon obtaining possession of the Site, such Mortgagee shall have the right to seek to obtain possession with diligence and continuity through foreclosure, a receiver or otherwise, and shall be permitted thereafter to remedy or cure the default within such time as is reasonably necessary to cure or remedy said default but in no event more than thirty (30) days after obtaining possession. If any such default cannot, with diligence, be remedied or cured within such thirty (30) day period, then such period shall be extended to permit the Mortgagee to effect a cure or remedy so long as Mortgagee commences said cure or remedy during such thirty (30) day period, and thereafter diligently pursues and completes such cure. 7.0 TRANSFERS OF INTEREST IN SITE OR AGREEMENT T I Transfers of Interest in Site or Agreement. The qualifications and identity of the Developer as the developer and operator of high quality commercial developments are of particular concern to the City. Furthermore, the parties acknowledge that the Citiy has negotiated the terms of this Agreement in contemplation of the development and operation of the Project on the Site and the property tax increment and Transient Occupancy Tax revenues to be generated by the operation of the Project on the Site. 7.1.1 . Transfers of Interest in Site or Agreement Prior to Agency's Issuance of a Release of Construction Covenants. Until the date the Agency issues a "Release of Construction Covenants" (as that term is defined in the DDA) for a particular Phase of Development (the "Fee Transfer Release Date"), (a) no voluntary or involuntary successor in interest of the Developer shall acquire any rights or powers under this Agreement with respect to said Phase of Development, (b) nor shall the Developer make any total or partial sale, transfer, conveyance, assignment, subdivision, refinancing or lease of the whole or any part of the applicable Parcel or the Phase of Development thereon (collectively referred to herein as a "Transfer"), except as provided in this Section 7.1. Prior to the Fee Transfer Release Date for a particular Phase of Development, the City may approve or disapprove a proposed Transfer in its sole and absolute discretion. Notwithstanding the foregoing, City approval of a Transfer prior to the Fee Transfer Release Date for a particular Phase of Development shall not be required in connection with any of the following: 882/015610-0094 -15- 750537.03 al 1/09/06 DRAFT a. The conveyance or dedication of any portion of the Site to an appropriate governmental agency, or the granting of easements or permits to facilitate construction of the Project. It. Any assignment for financing purposes (subject to such financing being permitted pursuant to Section 311 of the DDA), including the grant of a deed of trust to secure the funds necessary for land acquisition, construction and permanent financing of the Project or of a Phase of Development. C. The Transfer by Developer to an entity in which Developer or any entity. owned and controlled by Lowe Enterprises is a managing member or a manager; and has day-to-day control over the operations of such transferee entity. . d. The sale by Developer of Condominium Hotel Units to third party buyers. 7.1.2 Transfers of Operational Obligations. Notwithstanding anything in Section 7.1.1 to the contrary, until the tenth (10`h) anniversary of the date the Agency issues a Release of Construction Covenants for each Phase of Development (the "Operating Covenant Release Date"), Developer shall not make any Transfer of the operational and/or managerial control of such Phase of Development (a "Management Transfer"), without the prior written approval of the City. Notwithstanding the foregoing, City approval shall not be required for a Management Transfer to any of the following: (1) Ritz Carlton; (2) Four Seasons; and (3) City shall not unreasonably withhold, delay, or condition approval of a proposed Management Transfer to an entity with similar experience and reputation for operating high quality, luxury hotels to any of the entities listed in subparagraphs (1), (2), and (3) above. 7.1.3 - Assignment and Assumption of Obligations.:In the event of a Transfer by Developerunder Section 7.1.1(a), (b), (c), or (d) above, or under Section 7.1.2 (1), (2), or (3) above, not requiring the City's prior approval, Developer nevertheless agrees that at least thirty (30) days prior to such Transfer it shall give written notice to City of such assignment and satisfactory evidence that the assignee has assumed in writing through an assignment and assumption agreement of all of the obligations of this Agreement. An assignment and assumption agreement in form reasonably satisfactory to the City Attorney shall also be required for all proposed Transfers requiring the City's approval. 7.2 Successors and Assigns. All of the terms, covenants and conditions of this Agreement shall be binding upon the Developer and its permitted successors and assigns. Whenever the term "Developer" is used in 882,015610-0084 - -16- 750537.03 at 1/09/06 - DRAFT this Agreement, such term shall include any other permitted successors and assigns as herein provided. 7.3 Assignment by City. City may assign or transfer any of its rights or obligations under this Agreement with the approval of the Developer, which approval shall not be unreasonably withheld. 8.0 MISCELLANEOUS 8.1 Notices.. All notices permitted or required hereunder must be in writing and shall be effected by (i) personal delivery, (ii) first class mail, registered or certified, postage fully prepaid, or (iii) reputable same -day or overnight delivery service that provides a receipt showing date and time of delivery, addressed to the following parties, or to such other address as any party may from time to time designate in writing in the manner as provided herein: To City: City of La Quinta 78-495 Calle Tampico La Quinta, California 92253 Attn: Community Development Director Telephone: (760) 777-7031 Facsimile: (760) 777-7101 With a copy to: Rutan & Tucker, LLP 611 Anton Boulevard, Suite 1400 Costa Mesa, California 92626 Attn: M. Katherine Jenson Telephone: (714) 641-5100 Facsimile: (714) 546-9035 To Developer: LDD SilverRock, LLC 74-001 Reserve Drive Indian Wells, California 92210 Attn: Theodore R. Lennon, Jr. Telephone: (760) 674-2200 Facsimile: (760) 779-1646 With a copy to: Manatt, Phelps & Phillips, LLP 11355 W. Olympic Boulevard Los Angeles, CA 90064 Attn: Timi Hallem Telephone: (310) 312-4217 Facsimile: (310) 312-4224 Any written notice,. demand or communication shall be deemed received immediately if personally delivered or delivered by delivery service, and shall be deemed received on the third day from the date it is postmarked if delivered by registered or certified mail. 882,015610-0084 -17- 750537.03 all/09/06 DRAFT 8.2 Force Maicure. In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in default where delays or.failures to perform are due to war, insurrection, strikes, walk -outs, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, terrorism, epidemics, quarantine restrictions, freight embargoes, governmental restrictions imposed or mandated by other governmental entities, governmental restrictions or priority, unusually severe weather, inability to secure labor, materials, or tools necessary for the Project, delays of any contractor, subcontractor or supplier; acts of another party, acts or the failure to act of any public or governmental agency or entity (except that acts or the failure to act of the City or the Agency shall not excuse performance by the City) or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. An extension of time for any such cause shall only be for the period of the enforced delay, which period shall commence to run from the time of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the City and the Developer. Notwithstanding the paragraph above, Developer is not entitled pursuant to this. Section 8.2 to an extension of time to perform because of past, present, or future difficulty in obtaining suitable construction or permanent financing for the development of the Site, or because of economic or market conditions. 8.3 Binding Effect. This Agreement, and all of the terns and conditions hereof, shall be binding upon and inure to the benefit of the parties, any subsequent owner of all or any portion of the Project or the Site, and their respective assigns, heirs or successors in interest, whether or not any reference to this Agreement is contained in the instrument by which such person acquired an interest in the Project or the Site. 8.4 Independent Entity. The parties acknowledge that, in entering into and performing this Agreement, each of the Developer and the City is acting as an independent entity and not as an agent of the other in any respect. 8.5 Agreement Not to Benefit Third Parties. This Agreement is made for the sole benefit of the parties, and no other person shall be deemed to have any privity of contract under this Agreement norany right to rely on this Agreement to any extent for any purpose whatsoever, nor have any right of action of any kind on this Agreement nor be deemed to be a third party beneficiary under this Agreement. Notwithstanding the immediately preceding sentence, the Agency shall be an intended third party beneficiary to this Agreement. 8.6 Covenants. The provisions of this Agreement shall constitute mutual covenants which shall run with the land comprising.the Site for the benefit thereof, and the burdens and benefits hereof shall 882/015610-0084 - -18- 750537.03 all/09i06 DRAFT bind and inure to the.benefit of each of the parties hereto and all successors in interest to the parties hereto for the term of this Agreement. 8.7 Nonliability of City Officers and Employees. No official, officer, employee, agent or representative of City, acting in his/her official capacity, shall be personally liable to Developer, or any successor or assign, for any loss, costs, damage, claim, liability, or judgment, arising out of or in connection to this Agreement, or for any act or omission on the part of City. 8.8 Covenant Against_ Discrimination. Developer and City covenant and agree, for themselves and their respective successors and assigns, that there shall be no discrimination against, or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry, or any other impermissible classification, in the performance of this Agreement. Developer shall comply with the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101, etseq.). 8.9 Amendment of Agreement. This Agreement may be amended from time to time by mutual consent of the original parties or such party to which the Developer assigns all or any portion of its interest in this Agreement, in accordance with the provisions of the City's Development Agreement Ordinance and Government Code Sections 65867 and 65868. 8.10 No Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought and referring expressly to this Section. No delay or omission by either party in exercising any right or power accruing upon non-compliance or failure to perform by the other party under any of the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof, except as expressly provided herein. No waiver by either party of any of the covenants or conditions to be performed by the other party shall be construed or deemed a waiver of any succeeding breach or nonperformance of the same or other covenants and conditions hereof. 8.11 Severability. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect, to the extent that the invalidity or unenforceability does not impair the application of this Agreement as intended by the parties. 8.12 Cooperation in Carrying Out Agreement. Each party shall take such actions and execute and deliver to the other all such further instruments and documents as may be reasonably necessary to carry out this Agreement in order 882/015610-0094 -19- 750537.03a11/09/06 DRAFT to provide and secure to the other party the full and complete enjoyment of its rights and privileges hereunder. . 8.13 Estoppel Certificate. Any party hereunder may, at any time, deliver written notice to any other party requesting such party to certify in writing that, to the best knowledge of the certifying party, (i) this Agreement is in full force and effect and a binding obligation of the parties, (ii) this Agreement has not been amended or modified either orally or in writing, or if so amended, identifying the amendments, (iii) the requesting party is not in default in the performance of its obligations .. under this Agreement; or if in default, describing the nature and amount of any such defaults, and (iv) any other reasonable information requested. A party receiving a, request hereunder shall execute and return such certificate within ten (10) days following approval of the proposed estoppel certificate by the City Attorney, which approval shall not be unreasonably withheld or delayed. The City Manager, Assistant City Manager, and Community Development Director are each authorized to sign and deliver an estoppel certificate on behalf of the City. City acknowledges that a certificate hereunder may be relied upon by transferees and Mortgagees. 8.14 Construction. This terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction that might otherwise apply. As used in this Agreement, and as the context may require, the singular includes the plural and vice versa, and the masculine gender includes the feminine and vice versa. 8.15 Recordation. This Agreement shall be recorded with the County Recorder of Riverside County at Developer's cost, if any, within the period required by Government Code Section 65868.5. Amendments approved by the parties, and any cancellation or termination of this Agreement, shall be similarly recorded. 8.16 Captions and References. The captions of the paragraphs and subparagraphs of this Agreement are solely for convenience of reference, and shall be disregarded in the construction and interpretation of this Agreement. Reference herein to a paragraph or exhibit are the paragraphs, subparagraphs and exhibits of this Agreement. 8.17 Time. Time is of the essence in the performance of this Agreement and of each and every term and condition hereof as to which time is an element. 8.18 Recitals & Exhibits Incorporated• Entire Agreement. The Recitals to this Agreement and all of the exhibits and attachments to this Agreement are, by this reference, incorporated into this Agreement and made a part hereof. This 882/015610-0084 _20_ 750537.03 al 1/09/06 DRAFT Agreement, including all Exhibits attached hereto, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement, and this Agreement supersedes all previous negotiations, discussions and agreements between the parties, and no parole evidence of any prior or other agreement shall be permitted to contradict or vary the terms hereof. 8.19 Exhibits. Exhibits "A "E" to which reference is made in this Agreement are deemed appropriated herein in their entirety. Said exhibits are identified as follows: A-1 Legal Description of Site A-2 Site'Map B Depiction of Public Improvements C Four Star Quality Requirements D Mitigation Monitoring Program E Form of City Declaration of CC&Rs 8.20 Counterpart Signature Pages. For convenience the parties may execute and acknowledge this agreement in counterparts and when the separate signature pages are attached hereto, shall constitute one and the same complete Agreement. 8.21 Authority to Execute. Developer warrants and represents that (i) it is duly organized and existing, (ii) it is duly authorized to execute and deliver this Agreement, (iii) by so executing this Agreement, Developer is formally bound to the provisions of this Agreement, (iv) Developer's entering into and performance of its obligations set forth in this Agreement do not violate any provision of any other agreement to which Developer is bound, and (v) there is no existing or threatened litigation or legal proceeding of which Developer is aware which could prevent Developer from entering into or performing its obligations set forth in this Agreement. 8.22 City Approvals and Actions. Whenever a reference is made in this Agreement to an action or approval to be undertaken by the City Manager, his or her authorized designee is authorized to act on behalf of the City unless specifically provided otherwise or the law otherwise requires. 8.23 Governing Law*, Litigation Matters. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement without regard to conflicts of law principles. Any action at law or in equity brought by any party hereto for the purpose of enforcing, construing, or interpreting the validity of this Agreement or any provision hereof shall be brought in the Superior Court of the State of California in and for the County of Riverside, or such other appropriate court in said county, and the parties hereto waive all provisions of law providing for the filing, removal, or change of venue to any other court. Service of process on City shall be made in accordance with California law. Service of process on Developer shall be made in any manner permitted by 982/015610-0094 -21- 750537.03 a11109/06 li]7:1WI California law and shall be effective whether served inside or outside of California. In the event of any action between the parties hereto seeking enforcement of any of the terms of this Agreement or otherwise arising out of this Agreement, the prevailing party in such litigation shall be awarded, in addition to such relief to which such party is entitled, its reasonable attorney's fees, expert witness fees, and litigation costs and expenses. 8.24 No Brokers. Each of the City and the Developer represents to the other party that it has not engaged the services of any finder or broker and that it is not liable for any real estate commissions, broker's fees, or finder's fees which may accrue by means of this Agreement, and agrees to hold harmless the other party from such commissions or fees as are alleged to be due from the party making such representations. [end — signature page follows] 892,015610-0084 750537.03 al1/09/06 -22- DRAFT IN WITNESS WHEREOF, the Developer and the City have executed this Agreement as of the Reference Date. "CITY" CITY OF LA QUINTA, a California municipal corporation By: City Manager ATTEST: City Clerk APPROVED AS TO FORM RUTAN & TUCKER, LLP City Attorney "DEVELOPER" LDD SILVERROCK, LLC, a Delaware limited liability company By: Its: 882/015610-0084 750537.03 al1/09/06 -23- DRAFT STATE OF CALIFORNIA ) ) ss COUNTY OF ) On , before me, a Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) ) ss COUNTY OF ) On , before me, a Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument,the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] 882/015610-0084 750537.03 a11/09/06 -24- DRAFT EXHIBIT "A -I" LEGAL DESCRIPTION OF SITE [To be inserted] 8821015610-0084 750537.03 al 1/09106 _]_ DRAFT EXHIBIT "A-2" SITE MAP [To be inserted] 882/015610-0094 750537.03 a11,09/06 -1- DRAFT EXHIBIT "B" DEPICTION OF PUBLIC IMPROVEMENTS [To be inserted] 881015610-0084 750537.03 a11,09/06 _ ] _ EXHIBIT "C" FOUR STAR QUALITY REQUIREMENTS Four -Star Ought y indicates an outstanding hotel providing the guest with a luxury experience in a distinctive setting, including expanded amenities and exceptional service. Guests at a Four Star Quality hotel or resort can expect to find all of the following characteristics: Services Detail • Staff is well-groomed with professional, neat and well -maintained attire. • All staff encountered are pleasant and professional in their demeanor. • Front desk staff are articulate, smile and make eye contact. • The front desk is staffed twenty-four hours. • Restaurant on -site serving three meals daily. • Valet parking is available. • Baggage assistance is automatic. • Complimentary newspapers are delivered to room automatically. • Complete room service is available. • Workstation is available where guest can access Internet. • Basic fitness equipment is provided, including treadmills and cycles. • Written confirmation is automatic or offered, either by mail, fax or e-mail. • Guests name is used effectively, but discreetly, as a signal of recognition. • The time from arriving at the reception area until registration is complete does not exceed five minutes (includes queuing). • Bed is plush and inviting with oversized or numerous pillows. • Bedcovers are elegant and stylish and with linens of exceptional quality and comfort. • All written information is provided on good quality paper or pads, custom -printed or logoed. • Bathroom presentation and placement of amenities and linens is thoughtful, careful, and elegant. • Fresh ice is provided during evening service or at another time during the day. 882,015610-0094 1 750537.03 al 1109,06 • Turndown service is automatically provided. • During turndown service, guest clothing is neatly handled and guest toiletries are neatly arranged and displayed on a cloth or shelf. • Room service is delivered within 30 minutes. • Room service order is delivered within five minutes of quoted time. • Two hour pressing available • Same day laundry and dry cleaning is available seven days/week. • Wake-up call is personalized with guest's name and time of day. • Wake-up call is delivered within two minutes of requested time. • Special service desk identified as concierge/guest service is situated apart from reception/front desk. • If spa services are present, treatments are begun and ended on schedule, within five minutes of expected or booked time. • If spa services are present, during treatment, therapist appears to be genuinely expert, moving seamlessly through the treatment as described and expected. Facilities Details • Self parking area is free of debris, good condition; surfaces, curbs, paths. • All outdoor walkways and approaches are well -maintained and cleaned. • Outdoor awnings, signs, marquees, flags, and plantings are clean and in good condition. Public spaces are free of obvious hazards. • Elevator landings, cars and doors/tracks are clean and in good condition. • Guest room corridor floors, walls and ceilings are free of debris, marks, and damage. • All furniture, fixtures and equipment are clean, neat and well -maintained. • Ashtrays throughout public areas are well -maintained and free of excessive debris. • Temperature in all interior public areas are maintained in general comfort range. • Public washrooms very hygienic and neat, with well -stocked paper and soap. • Public washroom fixtures, walls and floors are in very good condition. • Meeting rooms are well -signed so that it is easy to find and arrive at a specific room. • Meeting room doors are in good condition, free of nicks and damage. 882,015610-0084 'L 750537.03 al 1/09/06 • Meeting room interiors are in generally good condition, including walls, floors and ceiling. • Lobby provides a comfortable seating area. • Lobby floors, walls and ceiling are free of debris, marks and damage. • Lobby areas feature elegant live plants and/or fresh floral displays. • Notices are professional, matching decor, not "homemade". • Vending and/or ice machines are located on each guest floor. • Vending and/or ice areas and equipment are clean, well -lit, and well -maintained. • Service doors are clean, free of marks and damage, and closed. A 'variety of different sized and appointed rooms available in hotel. • High quality, varied, and major brand sundry selections are available in an on -site store. • Suite (separate bedroom and living areas) accommodations are available. • A dedicated and secure luggage storage area is available. • Public phones are convenient, and equipped with seats, privacy panels and pad/pens. • Public washrooms are furnished with upgraded materials and appointments/luxurious design. • Televisions feature premium cable TV (two movie channels, two all -news, two financial). • Pay -Movie selections are available through television. • Guest room telephones have two lines. • Guest rooms equipped with data ports (guest can connect laptop to the Internet). • Direct dial phones with direct long distance dialing are available in each guest room. • If public phonebook present, it is displayed in attractive cover. Guest Room Detail • Hardware and hangings (door locks, racks, artwork, etc.) are secure and in good condition. • Carpet/floor is free of debris, stains, wear, loose threads, open seams, etc. • Walls and ceilings are free of marks, stains and damage. • Drapes are free of stains, damage; pull easily and hang properly. Furniture is free of dust, marks and damage. 882/015610-0084 - 3 750537.03 al 1/09/06 • All printed material including collateral, phonebooks and stationery are neat, crisp and current. Drawers and shelves are clean, free of dust and debris. • All light bulbs operate; all light fixtures and lamps are in good condition, clean. • Mirrors and windows are free of smudges and damage throughout. • If safe is provided, it is clean, functional and convenient. • Room equipped with accurate, functional clock and radio/stereo. • Color television works and is equipped with remote control, and is minimum 19". • All bedding and linens are free of debris, hairs, damage and stains. • Room heating and air conditioning is easily controlled by guest and is quiet. • Air is fresh and clean, no stuffiness or odors. • Sink, tub, shower, toilet, bidet are very clean, free of hairs, stains and discoloration. • Bathroom tile and grouting is clean, not discolored, cracked or mildewed. • Faucets and drains operate smoothly and easily. • Minimum bath linen is present: one bathmat; two each of facecloth, hand towel and bath towel. • If robes are provided, they are free of spots, stains and loose threads. Guest room door and frame free of marks, scratches and scuffs. • Comfortable seating for two people (other than bed). • Guest service directory, pad and pen/pencil present and conveniently placed. • Enclosed closets (means closets must have doors). • There are three spacious drawers or enclosed shelves (inside closet). • A Luggage rack or bench provided; and adequate space to leave suitcase. • Extra clean and hygienic blanket and pillow provided in room.. • Lighting throughout the room is adequate. • The room can be fully darkened. • Full-length mirror present in room. • A hairdryer present in room, clean and functional 882/0156IM094 4 750537.03 al 1/09/06 • Each guest room has two phones (one could be in the bathroom). • Comfortable desk and chair are available for working, complete with telephone, data port, and light. • Insulated ice bucket, vinyl or better, as well as glass glassware; clean and hygienic are present in room. • Minibar is present (defined as selection of several beverages and snacks). It is non auto - charge, and premium products are attractively displayed. • Minibar is hygienic, free of spills and damage, all products are sealed, price list present. • If coffeemaker is present, it is hygienic, and ceramic mugs and napkins are available. • Pillows are plush and full, no foam. • Framed artwork or interesting architectural features exist in room. • Excellent lighting is provided in bathroom for makeup and shaving. • Hygienic soap, shampoo and four other bath amenities are provided. Amenities are presented attractively, thoughtfully (not simply lined up on counter). • Towels are of absorbent quality, with soft nap and no discoloration. • Towels are free of spots, stains, tears and obvious frays. • Guest room is of generous size, and provides ample seating for more than two persons. • Selection of at least 10 hangers including a variety of bars, clips and padded. • In -room safe is present. • Bed is triple sheeted or features washable duvets. • Live plants are present in guest rooms. • Shaving/makeup, lighted magnifying mirror is present. Specialized Facility Detail • Poolibeach furniture is clean, hygienic and well -maintained. • Pool deck or beach/sand is clean and free of excessive debris. • Pool deck and tiling are in good condition, free of excessive damage or wear. • Pool water is clean, free of debris and free of notable odors. • Pool fittings and equipment (ladders, dive boards) are secure and in good condition. • Tennis court surfaces are in good condition, free of damage and well -marked. 882i015610-0084 5 750537.03 al 1/09106 • Tennis courts and surrounding areas are clean and free of debris. • Fixtures, nets, lights, fences are well -maintained and good condition. • Pro shop/clubhouse interior are clean and well -maintained; displays and counters neat and tidy. • Pro shop/clubhouse and surrounding areas are clean with well -maintained appearance. • Golf carts are clean, well -organized and maintained. • Rental equipment is clean and good condition, including bags. • Guest can pick up e-mail and access the Internet from a Business Center workstation. • Business Center working areas are clean, tidy and professional. • Comfortable office -style chairs at the Business Center guest workstations. • All fitness, treatment and relaxation areas are hygienic, neatly organized and maintained. • Spa reception area is well-defined, neat and professional. • Fitness equipment is clean, in very good condition, conveniently laid out. • Fitness/workout area is well -ventilated, with comfortable temperature. • Fitness equipment is available with personal headphones/televisions. • Sound system or television provided in fitness/workout areas. • Towels are provided in locker and fitness areas. • Grooming area equipped with hairdryers; soap and shampoo conveniently placed. • All amenities are neatly and professionally presented; very hygienic. • Locker room, showers, sauna and hot tub extremely clean, hygienic appearance. • If Business Center is present, a semi -private working area with workstation and telephone is available for guests. • If a spa exists on site, robes and slippers or spa sandals are available in variety of sizes, and they are clean and in good condition. • If spa or fitness center exists on site, complimentary amenities to include body lotion, shower caps, talc/deodorant and combs. • If spa exists on site, at least two types of massage and either body treatments or facials are also offered. • If tennis is available on site, water is available courtside. • If pool or beach service is present, ample towels are available poolside or at the beach. 882/015610-0084 6 750537.03 a11109/06 • Current newspapers and national -title magazines are provided in fitness and locker areas. • If spa, treatment rooms are equipped with individually controlled temperature and sound systems. 882/015610-0094 7 750537.03 al U09/06 EXHIBIT "D" MITIGATION MONITORING PROGRAM PROJECT MONITORING CHECKLIST (CEQA Mitigation Measures) [To be inserted] 882i015610-0084 I 750537.03 a11A19106 EXHIBIT "E" FORM OF CITY DECLARATION OF CC&Rs [To be inserted] 882/015610-0084 750537.03 all/09/06 AGENCY CONSENT TO RECORDATION THE LA QUINTA REDEVELOPMENT AGENCY HEREBY CONSENTS TO THE RECORDATION OF THE FOREGOING DEVELOPMENT AGREEMENT AGAINST THE REAL PROPERTY DESCRIBED IN EXHIBIT "A" TO SAID DEVELOPMENT AGREEMENT. LA QUINTA REDEVELOPMENT AGENCY M Its: STATE OF CALIFORNIA ) ) ss COUNTY OF __ ) On before me, a Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] 882/015610-0084 750537.03 a]1/09/06