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2020-08-27 OPPOSED - BAUERS m VMEop A T T O R N E Y S BRUCE T. BAUER ATTORNEY ADMITTED IN CA August 27, 2020 Via Email & U.S. Mail Jon McMillen (jmcmillen@laquintaca.gov) City Manager, City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Cheri Flores (clflores@laquintaca.gov) Planning Manager, City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Nicole Sauviat Criste (ncriste@terranovaplanning.com) Consulting Planner, City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 RE: The Coral Mountain Development / La Quinta Wave Park Dear Mr. McMillen and Ms. Flores and Ms. Criste: REPLY To: 1800 E. Tahquitz Canyon Way Palm Springs, California 92262 T (760) 322-2275 • F (760) 322-2107 ba uer0sbemp.com Our office represents certain homeowners in The Quarry Homeowners Association within the City of La Quinta (the "City"). 1. THE PROPOSED WAVE PROJECT We write to you regarding the City's consideration of a proposed development in the City. According to a press release issued in February 2020, Meriwether Companies and Big Sky Wave Developments announced plans for Coral Mountain, a master -planned resort community in the City. This project has come to be known the "Wave Project" because the centerpiece of the project is to be the "world's largest artificial wave" emanating out of Kelly Slater -designed wave basin which would hold about 18 million gallons of water. SLOVAK BARON EMPEY MURPHY & PINKNEY LLP Palm Springs, CA Indian Wells, CA Costa Mesa, CA San Diego, CA Princeton, NJ New York, NY T (760) 322-2275 T (760) 322- 9240 T (714) 435-9592 T (619) 501-4540 T (609) 955-3393 T (212) 829-4399 www.sbem%com Jon McMillen, City Manager Cheri Flores. Planning Manager August 27, 2020 Page 2 The proposed Wave Project requested by applicant, CM Wave Development, LLC (the Applicant"), would include a sports and wellness community in the City would consist of a full -service resort, residential homes, a private club, multiple dining venues and adventure sport offerings. The $200 million proposed Wave Project complex would have a 150-room hotel and up to 600 villa homes and would be situated on the grounds of what was a proposed and entitled low -density, golf -centered master -planned community sometimes referred to as the "Coral Mountain Project." 2. THE SCOPE OF THE PROPOSED WAVE PROJECT CONTINUES TO GROW FAR BEYOND WHAT WAS FORSEEN IN PRIOR ENTITLEMENTS. The scope of the Wave Project that the Applicant previously announced keeps growing. We have learned that the Applicant has requested that, in addition to the wave pool, sports park and 150-room hotel, that the City approve, 600 overnight rental villas (2 to 5 bedroom each), four (4) entertainment/special events (of four (4) days duration or 16 days and nights of special events per year) (the "Special Events"), and 60,000 square feet of neighborhood commercial uses on 7.8 acres. With the requested additional changes, the Applicant then is seeking permission to allow approval of an amusement and entertainment sports park with an enormous amount of overnight guests in excess of 4,000 per night ((one can estimate that it might have 600 overnight guests for its planned 150- room hotel (4 pillows per room x 150 rooms), plus 3,600 overnight guests for the planned 600-villas (averaging 3 bedrooms each, 6 pillows X 600=3,600 overnight), for a total over 4,000 overnight guests coming and going.) The Wave Project then promises to bring significant changes to the City and its surrounding and adjoining communities compared to what was previously approved for this area. Naturally, a project of this nature, that continually morphs and increases exponentially should be given additional scrutiny. In addition to the above activities of the hotel and villas, there are the 16 days of special events that the Applicant has requested. Each day of these televised special events might easily bring in tens of thousands (each event the Applicant would be permitted to have 2,500 guests per day — this would be in addition to the guests that are staying at the resort's villas and hotel) of additional people per day (and that does not include the days that will be needed for staging and dismantling of each of the weekend events.) We have no idea whether these special events will be synchronized to coincide during the otherwise busy Coachella and Stagecoach festival season — which would exacerbate and magnify exponentially an already congested time of the year. It is clear that the Wave Project bears NO relationship to the development that had been originally entitled for that area. We are concerned, however, that the City may allow the Applicant for the Wave Project to utilize existing entitlements, in part, that evaluated that golf -centered master planning community back in 2003, to entitle the Wave Project that is a development of an entirely different sort. The Wave Project is not akin to a low -density golf -centered master -planned community. No one can seriously contend such. Rather, Jon McMillen, City Manager Cheri Flores. Planning Manager August 27, 2020 Page 3 the Wave Project is a "horse of a different color' entirely and should not be able to utilize important components of existing entitlements such as an existing environmental impact report and zoning. The Wave Project, in reality, will be largely a commercial endeavor and not a residential development and will be more of an entertainment -based venue. The Wave Project will be comprised of a commercial /high -density project that will cause far more impact on the surrounding communities that could ever have been conceived in prior entitlements. The Project is not in keeping with the existing zoning. The quiet and serene atmosphere currently enjoyed by surrounding the residents in the City's neighborhoods will be destroyed. Moreover, the Wave Project will impact traffic, noise, native wildlife, crime, pollution, etc., in ways that could not have been conceived when the prior project was approved. As such, we do not believe the Wave Project, as proposed, should move forward with the City since it is not in keeping with the character and entitlements envisioned by the City and its residents. However, should the City consider the Wave Project it must do so under only the most exacting review standards. 3. AT A MINIMUM THE PROPOSED WAVE PROJECT WILL REQUIRE A FULL- SCALE EIR. We have learned too that the City has indicated that it may well permit the Applicant to evade a full blown EIR for the Wave Project. The City, in its June 2020, "Environmental Initial Study" indicated its likelihood that it would issue a mitigated negative declaration for the Wave Project (see, p. 12, of that document.) That would be grave error on the part of the City. In so finding, the City necessarily would have to make a finding that that the Project could have a "significant effect on the environment" however, it would have to have found that there would not be a significant effect because revisions in the Wave Project have been made by or agreed to by the Applicant. We cannot agree with that conclusion given the scope and scale of the Wave Project. We have concerns regarding the Wave Project and would urge the City adopt the following requirements in connection with any of its entitlement approvals: 1) Require the developer submit a new full and complete environmental impact report in connection with the Wave Project; 2) That in connection with any such EIR, the developer formulate mitigation schemes to solve any potential noise and traffic problems with the Wave Project; 3) That in connection with any such EIR, that all such related testing for any possible mitigations measures be undertaken during normal traffic patterns that one would find at "high" season (including festival season since the Jon McMillen, City Manager Cheri Flores. Planning Manager August 27, 2020 Page 4 Wave Project will be constructed near the grounds for the Coachella Festival); and, 4) Finally, that in connection with any such EIR, that data from the Kelly Slater Surf Ranch (located in Lemoore, CA), be used to analyze the Wave Project and at a time when that facility is being fully utilized.) In short, given the significant impact that the Wave Project promises to make to the City, the City must insist upon the strictest review of the Wave Project going forward and cannot abide by the issuance of a mitigated negative declaration by the City. 4. BACKGROUND AND NEED FOR FULL CEQA REVIEW AND AN EIR. The Andalusia Specific Plan, in which the Wave Project occurs, was approved by the County of Riverside in 1988 as part of the Rancho La Quinta Specific Plan. At the time of the original County approval, the County also certified an environmental impact report (EIR 232 for SP 218)(the "1988 EIR") which included what are now the Trilogy and Andalusia projects. That project would have resulted in 4,262 residential units, 380 acres of golf course, and 35 acres of commercial development. In 2000, the County approved Amendment # 1 to the Specific Plan, which renamed the proposed project "Coral Mountain," reduced the maximum dwelling units to 2,762, increased golf course lands to 567 acres, and decreased commercial lands to 23 acres. At that time, the County also processed Addendum # 1 to EIR 232, and certified that document. In 2002, the entire Coral Canyon project was annexed into the City. As part of the annexation process, the City accepted, as is the norm, the County' s approvals, and agreed to allow development of the Coral Canyon Specific Plan per County approvals. A. The Coral Mountain Project. In 2003, the Andalusia Specific Plan, consisting of the northerly half of the Coral Mountain Specific Plan, and allowing up to 1,400 residential units, 10 acres of commercial development and 421 acres of golf course, was separated from the balance of the original County Specific Plan. At that time, the City adopted Environmental Assessment 2003- 483 for the Specific Plan (the "2003 EIR".) As such, the Coral Mountain Project was conceived as a residential master -planned community built around a golf course. B. The Applicant's Acquisition of Coral Mountain and Re -Conception of that Project into a Maior Entertainment Hub. Jon McMillen, City Manager Cheri Flores. Planning Manager August 27, 2020 Page 5 In May 2019, Meriwether Companies acquired Coral Mountain, a 400-acre land parcel (for 29M) located in La Quinta, CA in the eastern quadrant of the Coachella Valley. It became immediately apparent that the Applicant had entirely different plans for Coral Mountain. The Applicant conception of Coral Mountain had fundamentally changed into a vision that it would be developed, instead, into a busy, commercial endeavor with a large influx of overnight visitors and an entertainment hub. On, September 12, 2019, a planning application for the Wave Project, also referred to Andalusia West, was filed by the applicant, CM Wave Development, LLC (Garret Simon). In that application, they sought the following items/approvals: Tentative Tract Map General Plan Amendment Specific Plan Amendment Zone Change Environmental Assessment In the City's letter to the Applicant, dated January 13, 2019 (in actuality the letter should have been dated January 13, 2020), the City noted that the applicable existing CEQA document for the Andalusia Specific Plan was the 2003 EIR, certified by the City in December of 2003. Also as stated in that letter, the Applicant indicated its belief that the Wave Project should be reviewed through an Addendum the 1988 EIR. The City found correctly at the time of the January 13t" letter, that the information contained in 2003 EIR was outdated. Moreover, the City correctly noted, as follows: T]he information contained in [the 2003 EIR] is outdated, and did not address greenhouse gas emissions, energy impacts, tribal cultural resources or wildfire impacts at all. It also analyzed a golf- centered master planned community and not a hotel or 15-acre surf pool. All of these changes and unaddressed environmental issue areas are part of the CEQA documentation process now and must be addressed if the City is to adequately analyze the project under CEQA. Under Section 15164, an "addendum to an adopted negative declaration may be prepared if only minor technical changes or additions are necessary or none of the conditions described in Section 15152... have occurred." The City was correct then. The 2003 EIR is not a proper starting point for a project of the magnitude proposed by the Applicant. This conclusion is all the more important given recent CEQA developments that now require a much more stringent review of the impact of traffic on a proposed project. We first discuss requirements of CEQA and, then, we will address how those requirements must be satisfied for the Wave Project to be approved by the City. Jon McMillen, City Manager Cheri Flores. Planning Manager August 27, 2020 Page 6 C. CEQA Requirements. CEQA requires that an agency analyze the potential environmental impacts of its proposed actions in an environmental impact report ("EIR") (except in certain limited circumstances.) The EIR is the very heart of CEQA. 14 CCR § 15003. "The foremost principle in interpreting CEQA is that the Legislature intended [CEQA] to be read so as to afford the fullest possible protection to the environment within the reasonable scope of the statutory language." Communities for a Better Environment v. Calif. Resources Agency (2002) 103 Cal. App. 4th 98. It is beyond dispute, then, that CEQA should apply to the Wave Project unless there was, and is, an exemption to its requirements that would otherwise apply. Given the Wave Project's expected dramatic impact on the public, there is no known exemption that would apply here. Rather, given its dramatic impact, the need for a thorough CEQA analysis and EIR of the Wave Project is underscored. D. CEQA Has a Strong Presumption in Favor of EIR Preparation. A strong presumption in favor of requiring preparation of an EIR is built into CEQA which is reflected in what is known as the "fair argument" standard, under which an agency must prepare an EIR whenever substantial evidence in the record supports a fair argument that a project may have a significant effect on the environment. No Oil, Inc. v. City of Los Angeles (1974) 13 Cal.3d 68, 75. 82; Friends of `B 'St. v. City of Haywood (1980) 106 Cal.App.3d 988, 1002. The EIR is the primary means of achieving the Legislature's considered declaration that it is the policy of this state to 'take all action necessary to protect, rehabilitate, and enhance the environmental quality of the state.' [Citation.] The EIR is therefore 'the heart of CEQA.' Citations.] An EIR is an 'environmental "alarm bell" whose purpose it is to alert the public and its responsible officials to environmental changes before they have reached ecological points of no return." Laurel Heights Improvement Assn. v. Regents of University of California (1988) 47 Cal .3d 376, 392. C. The 2003 EIR is not an Adequate Starting Point to Consider the Project, The City was right, in concluding that the above 2003 EIR was outdated and not a proper starting point for the Wave Project. The Wave Project is significantly different in comparison to Coral Mountain Project. There were, and are, significant differences in the considerations of the 2003 EIR, the Coral Mountain project and the Wave Project. In the 2003 EIR, the developer analyzed a golf -centered master planned community Jon McMillen, City Manager Cheri Flores. Planning Manager August 27, 2020 Page 7 All of the unaddressed environmental issues of the Wave Project are part of the CEQA documentation process now and must be addressed if the City is to adequately analyze the Wave Project under CEQA. Additionally, starting July 1, the California Environmental Quality Act will require projects in California to account for how many new miles of automobile travel they produce, rather than how much congestion they produce. CEQA will instead require developers to measure how many miles of vehicle travel a project will produce. The effect on cities may not be immediate, but it will be profound in the long run. It has the potential to change the way planners consider projects, to end long-standing practices that encourage car dependence, and to prioritize infill, mixed -use, and transit -oriented development rather than sprawl and edge development. L The Traffic Analysis Must Contain Certain Information. Any traffic study that addresses the Wave Project's potential impact on traffic in the surrounding area must address concerns under Senate Bill 743 (SB 743). SB 743 changes the focus of transportation impact analysis in CEQA from measuring impacts to drivers, to measuring the impact of driving. The change is being made by replacing level of service LOS") with vehicle miles of travel (VMT) and providing streamlined review of land use and transportation projects that will help reduce future VMT growth. This shift in transportation impact focus is expected to better align transportation impact analysis and mitigation outcomes with the State's goals to reduce greenhouse gas (GHG) emissions, encourage infill development, and improve public health through more active transportation. Those change were only recently adopted. The Natural Resources Agency finalized updates to the CEQA Guidelines including the incorporation of SB 743 modifications. The Guidelines changes were approved by the Office of Administrative Law and are now in effect. The Wave Project is certainly not consistent with State guidelines to reduce GHG emissions and enhancement of active transportation. Not only does any existing traffic study fail to address the Wave Project's compliance with SB 743, it does not disclose potential impacts from an increase in VMT. ii. Negative Impacts to Sound G—uality from Noise from the Wave Project will be Considerable. The Applicant must also properly analyze and mitigate significant impacts from noise from the Wave Project. As pointed out, the noise attendant to the Coral Mountain Project, and the project envisioned by Applicant, are two entirely different projects. The former project envisioned a quiet golf -based community with little noise emanating from that project. The latter project, however, anticipates that the Applicant will be conducted concerts and hosting large-scale surfing venues with music. The City enjoys an enviable quiet environment that must be considered and not compromised in the manner sought by Applicant. The City Jon McMillen, City Manager Cheri Flores. Planning Manager August 27, 2020 Page 8 generally enjoys a quiet noise environment, with existing community noise being dominated by highway and local traffic, intermittent aircraft flyovers, and commercial operations. Low noise levels are considered to be a major economic asset of the City's resort and residential atmosphere. As such, the City should carefully review proposals such as the Wave Project which we believe to be incompatible with the quiet environment present in the City and that it should be avoided. The Wave Project would be located very close to many noise sensitive receptors, including residential units. The type of development contemplated are known to create many noise impacts, including noise from patrons shouting, operating stereos in their cars, slamming doors, and honking in the drive-thru lane. Despite the City's alleged committed to "quietude" in the City, it only discusses the potential impact of the operational noise generated by the Wave Project in one short paragraph (most of which only pertains to the construction of the Wave Project): Construction of the Wave Project would generate sporadic, temporary vibration effects adjacent to the Wave Project area but would not be expected to exceed the significance thresholds. Operation of the Wave Project would generate noise from project -related traffic or from on -site sources (drive -through queuing, parking, amplified speech emanating from the speaker and trash compactor) that would not exceed the significance thresholds. Agenda, Staff Report, p. 5-22. The City has failed to properly analyze and mitigate significant impacts from noise. As such, the City has not reasonably demonstrated that the Wave Project would not result in significant impacts to noise quality and therefore does not qualify for the In -fill Exemption. iii. Negative Impacts to Air Quality from the Wave Project will be Considerable. The Wave Project could result in significant impacts health effects from air quality emissions. In Sierra Club v. County of Fresno (Friant Ranch, L.P.) (2018) 6 Cal.5th 502, the Court held that air quality analysis must make a reasonable effort to substantively connect a project's air quality impacts to likely health consequences. Any consideration of air quality must address the health effects to nearby sensitive receptors from the large quantity of idling vehicles consistent with a development of the type sought by Applicant. The analysis, in order to actually demonstrate that there are no significant impacts to air quality, is required to "connect" adverse human health effects to the levels of pollutants that would be emitted by the Wave Project. Jon McMillen, City Manager Cheri Flores. Planning Manager August 27, 2020 Page 9 CONCLUSION Based on the above concerns, it is urged that the City does not approve the Wave Project as proposed by Applicant. In any event, at a minimum, the City must require the Applicant to submit a full environmental impact for the proposed Wave Project and, in any such report, that the Applicant formulate mitigation schemes to solve any potential noise and traffic problems at the Wave Project. CC: Linda Evans, Mayor (levans@laquintaca.gov) John Pena, Mayor Pro Tern Qpena@laquintaca.gov) Kathleen Fitzpatrick, Council Member (kfitzpartick@laquintaca.gov) Robert Radi, Council Member (rradi@laquintaca.gov) Steve Sanchez, Council Member (ssanches@laquintaca.gov)