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PCRES 2006-042PLANNING COMMISSION RESOLUTION 2006-042 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 1506118)13), 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 2006-042 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 Code1, 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•; 12) 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 2006-042 Zoning Text Amendment 2006-088 November 14, 2006 industry as defined by J.D. Power and Associates; and 12- 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 (Subdivisionsl, 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 2006-042 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 16) 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 Citv shall include such- terms as it deems necessarv 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 2006-042 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 11- 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 1291 consecutive days, with a minimum seven (7) day period intervening between each twenty-nine 129) 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 2006-042 Zoning Text Amendment 2006-088 November 14, 2006 enaaaing 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 l~ni~-9wners ir3Owner 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 Ciass 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 2006-042 Zoning Text Amendment 2006-088 November 74, 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~f 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 cha_ reed to Hotel guests. use will be conditioned upon the payment of such fees as are determined by the Operator to be appropriate to reflect the allocable costs of such services and facilities 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; Ic- 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; le) the name and address of any occupant of the Unit (other than the Owner) whose occupancy exceeded the twenty-nine (29) day maximum; and If) the TOT that has been collected by Planning Commission Resolution 2006-042 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 15) 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 110) 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 171 day period intervening between each twenty-nine (29) consecutive day use period. Planning Commission Resolution 2006-042 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, nd unless otherwise provided in the Development Aareemen_ t_, 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 appre+Fafconsent 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 2006-042 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 2006-042 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: AYES: Commissioners Alderson, Barrows, and Chairman Quill NOES: None ABSENT: Commissioners Daniels and Engle ABSTAIN: None ATTEST: DOUGLAS .EVANS Community Development Director City of La Quinta PAUL QUILL, Chairman City of La Quinta, California