2022-03-15 Polo Villas DA 2021-0003 - C1 Adopt Ord 599 CC Staff ReportCity of La Quinta
CITY COUNCIL MEETING' March 15, 2022
STAFF REPORT
CONSENT CALENDAR ITEM NO. 1
AGENDA TTTLE! ADOPT ORDINANCE NO. 599 ON SECOND READING
APPROVING DEVELOPMENT AGREEMENT 2021-0003 FOR POLO VILLAS
RESIDENCES; CEQA: THE PROJECT IS CONSISTENT WITH PREVIOUSLY
ADOPTED ENVIRONMENTAL ASSESSMENTS 2005-537 AND 2010-608;
LOCATION: WEST OF MADISON STREET BETWEEN AVENUES 50 AND 52
RECOMMENDATION
Adopt Ordinance No. 599 on second reading.
EXECUTIVE SUMMARY
• On March 1, 2022, Council introduced Ordinance No. 599 to approve
Development Agreement 2021-0003 for Polo Villas Residences.
• Tract 33085 was approved by Council on December 5, 2017, for seven
(7) units, south of Beth Circle, and Tract 36279 was approved by Council
on March 17, 2015, for 11 units, north of Beth Circle (Attachment 1).
Mitigated Negative Declarations (MND) were also adopted for each
Tract.
• Tract 36279 was built in 2015/2016 and the 11 units each currently
have active short-term vacation rental (STVR) permits since September
2016. Tract 33085 has not yet been built.
FISCAL IMPACT
The project is estimated to generate revenue primarily through property
taxes, development impact fees (DIF), property taxes in -lieu of vehicle license
fees, and transient occupancy tax (TOT). The following projections were
provided by the applicant based on a Fiscal Impact Study:
Estimated Fiscal Impact at Build -out
Recurring Revenues
Property Tax
$23,263
Property Tax in lieu of VLF
$7,731
Transient Occupancy Tax
$831,183
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Off -site Sales Tax
$43,849
Other revenues
$36,140
Total Recurring Revenues
$942,166
Recurring Expenditures
(i.e., Police, Fire, City staff)
$131,577
Net Fiscal Surplus
$810,589
The additional costs incurred to the City as a result of the project are less than
the additional revenues generated; therefore, resulting in a net positive fiscal
impact.
3ACKGROUND/ANALYSIS
The Polo Villas residential development is comprised of 18 units within two (2)
tract maps numbered 33085 and 36279 (Attachment 1). The tentative tract
map for Tract 33085 was approved and an MND was adopted for seven (7)
units on December 6, 2005. The final tract map was approved and recorded
in December 2017. The tentative tract map for Tract 36279 was approved and
an MND was adopted for 11 units on August 2, 2011. The final tract map was
approved in March 2015 and recorded in April 2015. Of the 18 units, 11 have
been built, and have had an active STVR permits since 2016.
In May 2021, Council adopted an ordinance that places a permanent ban on
the issuance of new STVR permits, with the exception of units within the
Village and Tourist Commercial zones, and developments subject to a
development agreement (DA) that stipulate STVRs are allowed, among other
specified exceptions. Those with current active STVR permits may continue
to operate as STVRs, but a STVR permit is not transferable and expires when
an owner sells their property to a new owner. In this case, the applicant
(GTGF, LLC) has a purchase and sale agreement to buy the 18 properties from
the current owner (Desert Polo Land Company, LLC) and wishes to enter into
a DA with the City to allow STVRs to continue to operate. Government Code
Section 65864 and the La Quinta Municipal Code (LQMC) Section 9.250.020
allow applicants to enter into DAs with the City.
Development Agreement Terms
The terms of the DA, included as Exhibit A to Ordinance No. 599, are
summarized below:
• The project shall be constructed in accordance with project approvals
and shall consist of a residential single-family development specifically
developed and available for use as primary residences, secondary
residences, and/or STVR residences, with the following components:
o Annual permitting fees to be consistent with the City's fee
program;
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o Any rental or occupancy of 30 nights or less to be subject to the
City's then -current transient occupancy tax for STVRs;
o Rental or occupancy agreements, and material renter or occupant
information, shall be retained for a minimum of three (3) years
(or other retention period as may be approved by City policy or
code) by the applicant or their authorized management company
for the STVRs at the site;
o Occupancy in any residence, including residences used as STVRs,
shall be capped at two (2) persons per bedroom, plus no more
than four (4) additional occupants; and
o Each of the residences shall allow for transient occupancy, 30 days
or less.
• A performance schedule for construction of the seven (7) units on the
south side of the project.
• The term of the DA shall be for 50 years.
• The DA shall be reviewed on an annual basis.
ENVIRONMENTAL REVIEW
The Design and Development Department has determined that the proposed
project is consistent with MND EA 2005-537 adopted by Council on December
6, 2005, by Resolution No. 2005-097 and MND EA 2010-608 adopted on
August 2, 2011, by Resolution No. 2011-073, in that the properties are
available and must be used for residential purposes as primary or secondary
residences or STVRs.
Al TFRNATTVF"
As Council introduced this ordinance at first reading, staff does not
recommend an alternate.
Prepared by: Monika Radeva, City Clerk
Cheri Flores, Planning Manager
Approved by: Jon McMillen, City Manager
Attachment: 1. Vicinity Map
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ATTACHMENT 1
tai Otilifra
City of La Quinta
Planning Division
Design and Development Department
January 2022
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