ORD 620 Bravo Estates DA 2024-0001 - Desert Luxury Properties, LLC (2025)ORDINANCE NO. 620
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, APPROVING A
DEVELOPMENT AGREEMENT BY AND BETWEEN THE
CITY OF LA QUINTA AND DESERT LUXURY
PROPERTIES, LLC RELATING TO BRAVO ESTATES AND
FIND THAT THE PROJECT IS CONSISTENT WITH
ENVIRONMENTAL ASSESSMENT 2003-495
CASE NUMBER:
DEVELOPMENT AGREEMENT 2024-0001
APPLICANT: DESERT LUXURY PROPERTIES, LLC
WHEREAS, the City Council of the City of La Quinta, California did, on January
21, 2025, hold a duly noticed Public Hearing to consider a request by Desert Luxury
Properties, LLC for approval of Site Development Permit 2024-0001 and Development
Agreement 2024-0001, for Bravo Estates project, a 14 unit single-family residential
development on 8.4 acres area located on the northwest corner of Avenue 52 and
Madison Street, more particularly described as:
Assessor Parcel Numbers (APNs):
777-470-001 through -014
WHEREAS, the Design and Development Department published a public hearing
notice in The Desert Sun newspaper on January 10, 2025, as prescribed by the Municipal
Code. Public hearing notices were also mailed to all property owners within 500 feet of
the site, and emailed or mailed to all interested parties who have requested notification
relating to the project; and
WHEREAS, the Site Development Permit is being adopted by separate Resolution
in accordance with City of La Quinta policy and procedure; and
WHEREAS, California Government Code Section 65864 et seq. (the
"Development Agreement Law") authorizes cities to enter into binding development
agreements with persons having a legal or equitable interest in real property for the
development of such property, all for the purpose of strengthening the public planning
process, encouraging private participation and comprehensive planning, and identifying
the economic costs of such development; and
WHEREAS, the Planning Commission of the City of La Quinta, California did, on
November 12, 2024, hold a duly noticed Public Hearing to consider this request and did
adopt Planning Commission Resolution 2024-017 recommending approval of the
Development Agreement; and
Ordinance No. 620
Development Agreement 2024-0001
Project: Bravo Estates
Adopted: February 4, 2025
Page 2 of 5
WHEREAS, the Design and Development Department determined that the project
is consistent with the Mitigated Negative Declaration adopted on August 17, 2004
(Environmental Assessment 2003-495), and no further environmental review is required
under the California Environmental Quality Act (CEQA, Pub. Res. Code, § 21000 et seq. )
and CEQA Guidelines (Cal. Code Regs., Title 14, § 15000 et seq.), specifically:
Section 15162 in the CEQA Guidelines provides in pertinent part that, when an
environmental impact report (EIR) has been certified or a negative declaration
(or mitigated negative declaration (MND)) has been adopted for a project, "no
subsequent EIR shall be prepared for that project" unless there is a
determination, on the basis of substantial evidence in the light of the whole
record, of one or more of: (1) Substantial changes are proposed in the project
which will require major revisions of the previous MND due to involvement of
new significant environmental effects or a substantial increase in the severity
of previously identified significant effects; (2) Substantial changes occur with
respect to the circumstances under which the project is undertaken which will
require major revisions of the previous MND due to the involvement of new
significant environmental effects or a substantial increase in the severity of
previously identified significant effects; or (3) New information of substantial
importance, which was not known and could not have been known with the
exercise of reasonable diligence at the time the previous MND was adopted;
Here, based on the information presented during the public hearing including
the Staff Report and all attachments and references therein, incorporated into
this Ordinance by this reference, none of the listed conditions in Section 15162
of the CEQA Guidelines are met, and therefore no subsequent CEQA
document is needed, regardless of the age of the MND. This position is
consistent with CEQA case law. (See, Committee for Re -Evaluation of T-Line
Loop v. San Francisco Municipal Transp. Agency (2016) 6 Cal.App.5th 1237
[agency's partial reliance on a 1998 EIR for a 2014 project upheld].)
Furthermore, no new mitigated negative declaration was prepared because,
based on substantial evidence, the existing MND was determined to be
sufficient. Thus, the noticing provisions in Section 15072(b) were not triggered.
(See, CEQA Guidelines, §§ 15070-15075 [a public agency must prepare a
proposed negative declaration or mitigated negative declaration when specified
conditions are met, and a NOI is required as part of the process to circulate
and receive comment from the public and interested parties on a proposed
MND].); and
WHEREAS, at said Public Hearing, upon hearing and considering all testimony
and arguments, if any, of all interested persons desiring to be heard, said City Council did
make the following mandatory findings pursuant to Section 9.250.020 of the La Quinta
Municipal Code to justify approval of said Development Agreement, included to this
Ordinance as Exhibit A, and incorporated herewith by this reference:
Ordinance No. 620
Development Agreement 2024-0001
Project: Bravo Estates
Adopted: February 4, 2025
Page 3 of 5
1. The Development Agreement is consistent with the applicable objectives, policies,
general land uses, and programs of the La Quinta General Plan as follows:
a. Policy LU-6.3: Support and encourage the expansion of the resort industry as
a key component of the City's economic base. The homes provide for primary
and secondary residential use but also will provide an alternative form of
short-term rental stay in the City which improves the economic base.
b. Policy LU-3.1: Encourage the preservation of neighborhood character and
assure a consistent and compatible land use pattern. The homes have a high
quality design that matches the quality of the surrounding neighborhood.
c. Goal ED-1: A balanced and varied economic base serving both the City's
residents and the region. These residential units may increase the number of
people visiting the City of La Quinta and provide local vendors with additional
clientele. The funds generated from the collection of transient occupancy tax
(TOT) revenue provide funds for public improvements to benefit the City's
residents.
d. Goal ED-2: The continued growth of the tourism and resort industries in the City.
The alternative form of stay in the City boosts the tourism and resort industry by
providing additional visitors to the area which brings in additional revenue.
2. The Development Agreement is compatible with the uses authorized and the
regulations prescribed for the land use district in which the real property is located.
The properties are available and must be used for residential purposes, and may
be the residents' primary residence or secondary residences, and/or may be used
for short-term vacation rentals, which residential use is consistent with the
permissible uses of the land use district the property is located in. This is
appropriate for the area, given the proximity to surrounding residential and polo
fields to the east of Madison Street.
3. The Development Agreement is in conformity with the public necessity, public
convenience, general welfare, and good land use practices. The project may be
used as residences, which is consistent with the surrounding area and extends
residential development along Madison Street in the project area.
4. The Development Agreement will not be detrimental to the health, safety, and
general welfare. The project may be used as residences, which is consistent with
the surrounding area.
5. The Development Agreement will not adversely affect the orderly development of
property or the preservation of property values in that it facilitates the development
of high -quality homes and extends residential development along Madison Street
in the project area.
Ordinance No. 620
Development Agreement 2024-0001
Project: Bravo Estates
Adopted: February 4, 2025
Page 4 of 5
6. The Development Agreement will have a positive fiscal impact on the City in that
implementation of the Development Agreement will produce revenues through
payment of certain development impact fees, increased property taxes, and
transient occupancy taxes when units are rented on a short-term basis.
NOW, THEREFORE, the City Council of the City of La Quinta does ordain as
follows:
SECTION 1. FINDINGS AND APPROVAL: That the above recitations are true and
constitute the Findings of the City Council in this case, and that the above project is
consistent with Environmental Assessment 2003-495, based on the Findings as
referenced in this Ordinance. And that the City Council hereby approves and incorporates
herein by this reference Development Agreement 2024-0001, included as Exhibit A, by
the adoption of this Ordinance and authorizes the City Manager to execute the same in
substantially the form presented to the City Council with the adoption of this Ordinance.
SECTION 2. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty
(30) days after its adoption.
SECTION 3. POSTING: The City Clerk shall, within 15 days after passage of this
Ordinance, cause it to be posted in at least three public places designated by resolution
of the City Council (Resolution No. 2022-027), shall certify to the adoption and posting of
this Ordinance, and shall cause this Ordinance and its certification, together with proof of
posting to be entered into the permanent record of Ordinances of the City of La Quinta.
SECTION 4. CORRECTIVE AMENDMENTS: The City Council does hereby grant the
City Clerk the ability to make minor amendments and corrections of typographical or
clerical errors to this Ordinance to ensure consistency of all approved text amendments
prior to the publication in the La Quinta Municipal Code.
SECTION 5. SEVERABILITY: If any section, subsection, subdivision, sentence, clause,
phrase, or portion of this Ordinance is, for any reason, held to be invalid or
unconstitutional by the decision of any court of competent jurisdiction, such decision shall
not affect the validity of the remaining portions of this Ordinance. The City Council hereby
declares that it would have adopted this Ordinance and each and every section,
subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the
fact that any one or more section, subsections, subdivisions, sentences, clauses,
phrases, or portions thereof be declared unconstitutional.
PASSED, APPROVED, and ADOPTED at a regular meeting of the City of La
Quinta City Council, held on this 4th day of February 2025, by the following vote:
Ordinance No. 620
Development Agreement 2024-0001
Project: Bravo Estates
Adopted: February 4, 2025
Page 5 of 5
AYES: Councilmembers Fitzpatrick, McGarrey, Pena, Sanchez, and Mayor Evans
NOES: None
ABSENT: None
ABSTAIN: None
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
4
MONIKA RADEVA, dity Clerk
City of La Quinta, California
F17T:t�]�T�9Z��%77010J,F
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Attn: City Clerk
698/015610-0183
21730970.2 a01/27/25
DOC # 2025-0067601
03/06/2025 04:52 PM Fees: $0.00
Page 1 of 68
Recorded in Official Records
County of Riverside
Peter Aldana
Assessor -County Clerk -Recorder
"This document was electronically submitted
to the County of Riverside for recording—
Receipted by: JACQUELINE #2386
Space Above This Line for Recorder's Use
(Exempt from Recording Fee per Gov't Code §6103
and §27383)
DEVELOPMENT AGREEMENT BY AND BETWEEN
1"
CITY OF LA QUINTA
AND
DESERT LUXURY PROPERTIES LLC
DOC #2025-0067601 Page 2 of 68
DEVELOPMENT AGREEMENT
This Development Agreement (the "Agreement") is entered into as of the day of
Februaiv 4, 2025 ("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 California ("City"), and DESERT LUXURY PROPERTIES LLC, a California limited liability
company, ("Developer"), with reference to the following:
RECITALS:
A. Government Code Section 65864 et seq. ("Development Agreement Act")
authorizes 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 Government Code Section 65865, City has adopted its Development
Agreement Ordinance (La Quinta Municipal Code Section 9.250.020 or successor provisions)
establishing procedures and requirements for such development agreements ("Development
Agreement Ordinance").
C. Developer is the owner of certain real property in the City of La Quinta, County of
Riverside, State of California consisting of fee title to fourteen (14) vacant residential (numbered)
lots with Assessor Parcel Numbers 777-470-001 through 777-470-014, and easement rights with
respect to certain lettered lots within Tract No. 31852 that are appurtenant to and benefit the
residential (numbered) lots, all as more particularly described in the legal description in Exhibit A
attached hereto and incorporated herein by this reference (collectively, the "Property" and each
individual residential (numbered) lot may be referred to herein as "One of the Properties"), and
more particularly depicted with corresponding APNs on the Site Map attached hereto as Exhibit B
and incorporated herein by this reference.
D. Developer has duly submitted an application for a development agreement and
environmental assessment for the development of the Property and/or improvements to previously
improved portions of the Property, to use as a residential community that includes and would allow
for the development, permitting, operation and use of fourteen (14) residences constructed or to
be constructed on the Property as short-terin vacation rentals pursuant to the Short -Term Vacation
Rental Restrictions (defined below) (briefly summarized here as the "Project" and more fully
defined below in this Agreement). (For reference purposes only, a copy of Chapter 3.25, as that
chapter exists on the Effective Date, is attached to this Agreement as Exhibit E.) The Project is
more fully described in, and subject to (i) this Agreement, (ii) the City's General Plan, (iii) Final
Tract Map No. 31852, and any conditions of approval appurtenant thereto (the "Tract Map")
(iv) any applicable Specific Plan that includes the Property, in effect as of the Effective Date, and
any conditions of approval appurtenant thereto, (v) Site Development Permit No. SDP2024-0001,
and any conditions of approval appurtenant thereto (the "SDP," and, collectively the foregoing
clauses (i)-(v) are referred to herein as the "Vested Approvals"), (vi) any future discretionary or
ministerial approvals and/or permits, including future site development permit(s), issued for the
Property or Project; and (vii) any future subdivision maps approved for the Property or Project
(collectively the foregoing clauses (vi)-(vii) are referred to herein as the "Future Approvals"). The
Vested Approvals and the Future Approvals are collectively referred to herein as the "Project
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DOC #2025-0067601 Page 3 of 68
Approvals," and are, or when approved or issued shall be, on file with the City Clerk's Office and
available for inspection during regular business hours at La Quinta City Hall located at 78495
Calle Tampico, La Quinta, CA 92253.
E. As of the Effective Date of this Agreement, Developer owns fee simple title to the
14 residential lots within the Property and easement rights to the lettered lots within the Property,
and by their execution of this Agreement, City and Developer consent to recordation of this
Agreement against the Property, including, without limitation, each One of the Properties.
F. Consistent with Section 9.250.020 of the La Quinta Municipal Code, City and
Developer desire to enter into a binding agreement that 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 it may proceed with development of the Project in
accordance with the terms and conditions of this Agreement and the Project Approvals, all as more
particularly set forth herein.
G. The Planning Commission and the City Council have determined that the Project
and this Agreement are consistent with the City's General 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 ("CEQA"), and all other
requirements for notice, public hearings, findings, votes and other procedural matters.
I. On February 4, 2025, the City Council adopted its Ordinance No. 620 approving
this Agreement.
AGREEMENT:
NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated
herein by this reference, 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:
GENERAL
1.1 Definitions. In addition to the defined words and terms set forth elsewhere in this
Agreement, the following defined words and terms shall apply:
1.1.1 "Affiliated Party" shall mean (i) any person or entity that
directly or indirectly owns or has voting or management rights of Developer or its members or
managers, or (ii) any entity that is directly or indirectly owned, controlled or managed by
Developer or its members or managers, or such members' or managers' shareholders. City shall
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DOC #2025-0067601 Page 4 of 68
have the right to review and confirm any person or entity purported to be an "Affiliated Party" for
purposes of this Agreement.
1.1.2 "Agreement" means this Development Agreement and all
amendments and modifications thereto.
1.1.3 "Applicable Rules" means the following rules, regulations,
ordinances and officially adopted policies of the City of La Quinta in full force and effect as of the
Effective Date of this Agreement: the City's General Plan, the Tract Map, the SDP, any applicable
Specific Plan and City of La Quinta Zoning Code provisions in Title 9 of the La Quinta Municipal
Code that includes the Property, and the Short -Term Vacation Rental Regulations subject to the
provisions as set forth in this Agreement. Additionally, notwithstanding the language of this
Section or any other language in this Agreement: (a) all specifications, standards, and policies
regarding the design and construction of public works facilities required with respect to the Project,
if any, shall be those that are in effect at the time any of said Project applications and plans are being
processed for approval and/or under construction; (b) payments for all development impact fees,
mitigation fees, application and processing fees, and any other fees and exactions relating to the
development of the Project, shall be those that are in effect at the time said Project applications
and plans are being processed for approval and subject to payment pursuant to Section 2.2.1 of
this Agreement; and (c) all Short -Term Vacation Rental Regulations shall be those that are in effect
at the time of the submittal of an application for a short-term vacation rental permit and in effect
at the time a duly -issued permit is held, including amendments to the Short -Term Vacation Rental
Regulations following the Effective Date that do not otherwise prevent the use of One of the
Properties for short-term vacation rentals.
1.1.4 "Assignment and Assumption Agreement" shall have the
meaning set forth in Section 1.8.1 of this Agreement.
1.1.5 "CC&Rs" shall have the meaning set forth in Section 3.1
of this Agreement.
1.1.6 "CEQA" means the California Environmental Quality Act
(Cal. Public Resources Code Sections 21000 et seq. or successor provisions) and the State CEQA
Guidelines (Cal. Code of Regs., Title 14, Sections 15000 et seq. or successor provisions).
1.1.7 "City" means the City of La Quinta, a charter city and
municipal corporation, including each and every agency, department, board, commission,
authority, employee, and/or official acting under the authority of the City, including without
limitation the City Council and the Planning Commission.
1.1.8 "City Council" means the City Council of the City and the
legislative body of the City pursuant to California Govermnent Code Section 65867.
1.1.9
this Agreement.
1.1.10
in Section 4.1 of this Agreement.
"Claims" shall have the meaning set forth in Section 3.6 of
"Compliance Certificate" shall have the meaning set forth
WI
DOC #2025-0067601 Page 5 of 68
1.1.11 "Davis -Stirling Act" means the Davis -Stirling Common
Interest Development Act, California Civil Code Section 4000 et seq. (or successor provisions).
1.1.12 "Development Director" means the Director of the City's
Design and Development Department, or his or her designee.
1.1.13 "Developer" means the Developer identified in the
preamble of this Agreement.
1.1.14 "Development Agreement Act" means Section 65864 et
seq., of the California Government Code.
1.1.15 "Development Agreement Ordinance" shall have the
meaning set forth in Recital B.
1.1.16 "Discretionary Action" means an action which requires
the exercise of judgment, deliberation or a decision on the part of City, including any board,
commission, committee, or department or any officer or employee thereof, in the process of
approving or disapproving a particular activity, as distinguished from an activity which merely
requires City, including any board, commission or department or any officer or employee thereof,
to determine whether there has been compliance with statutes, ordinances, regulations, or other
adopted policies.
1.1.17 "Effective Date" shall have the meaning set forth in Section
1.3 of this Agreement.
1.1.18 "Force Majeure" shall have the meaning set forth in
Section 8.2 of this Agreement.
Recital D.
1.1.19 "Future Approvals" shall have the meaning set forth in
1.1.20 "General Plan" means the General Plan of the City.
1.1.21 "Indemnitee" shall have the meaning set forth in Section
3.6 of this Agreement.
1.1.22 "Insubstantial Modification" shall have the meaning set
forth in Section 1.6(a) of this Agreement.
1.1.23 "Mortgage" shall have the meaning set forth in Section 7.2
of this Agreement.
1.1.24 "Mortgagee" shall have the meaning set forth in Section
7.2 of this Agreement.
1.1.25 "MND" and "Mitigated Negative Declaration" shall have
the meaning set forth in Section 1.5 of this Agreement.
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DOC #2025-0067601 Page 6 of 68
1.1.26 "New Laws" means amendments or modifications to the
Applicable Rules, and all ordinances, resolutions, initiatives, regulations, rules, laws, plans,
policies, and guidelines of the City and its City Council, Planning Commission, and all other City
boards, commissions, departments, agencies, and committees enacted or adopted after the
Effective Date.
1.1.27 "Notice" shall have the meaning set forth in Section 8.1 of
this Agreement.
1.1.28 "One of the Properties" shall have the meaning set forth
in Recital C.
1.1.29 "Parties" means collectively Developer and City. Each
shall be referred to in the singular as a "Party".
1.1.30 "Performance Schedule" shall mean the performance
schedule for the Project attached hereto as Exhibit D and incorporated herein by reference, and as
further described in Section 3.3.
1.1.31 "Planning Commission" means the City Planning
Commission and the planning agency of the City pursuant to California Government Code Section
65867.
1.1.32 "Project" means the development, improvement, use and
operation of the Properly as set forth in more detail in Section 3.1.
Recital D.
1.1.33 "Project Approvals" shall have the meaning set forth in
1.1.34 "Property" shall have the meaning set forth in Recital C.
1.1.35 "Recorder's Office" shall mean the Office of Official
Records for Riverside County, California
1.1.36 "Request for Notice of Default" shall have the meaning
set forth in Section 7.3 of this Agreement.
1.1.37 "Reserved Powers" means the rights and authority
excepted from this Agreement's restrictions on City's police powers and which are instead
reserved to City, its City Council, Planning Commission, and all other City boards, commissions,
departments, agencies, and committees. The Reserved Powers include the powers to enact or adopt
New Laws or take future Discretionary Actions after the Effective Date of this Agreement that
may be in conflict with the Applicable Rules and Project Approvals, except such New Laws which
would prevent, or materially impair Developer's ability to develop the Project and/or use the
Properly in accordance with the Project Approvals and this Agreement; provided, however, that
with respect to such New Laws which would conflict with this Agreement or prevent, or materially
impair Developer's ability to develop or use the Project in accordance with the Project Approvals,
such New Laws shall apply to the Project and the Property only if such New Laws are: (1)
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DOC #2025-0067601 Page 7 of 68
necessary to protect the public health and safety, and are generally applicable on a City-wide basis
in furtherance of the identified public health and safety concern (except in the event of natural
disasters as found by the City Council such as floods, earthquakes and similar acts of God, which
shall apply even if not applicable on a City-wide basis); (2) amendments to Uniform Codes, as
adopted by City, and/or the La Quinta Municipal Code, as applicable, regarding the construction,
engineering and design standards for private and public improvements to be constructed on the
Property; (3) required by a non -City governmental entity to be adopted by or applied by the City
(or, if adoption is optional, the failure to adopt or apply such non -City law or regulation would
cause the City to sustain a material loss of funds or material loss of access to funding or other
resources, with "material loss" in this clause (3) meaning Seventy Five Thousand Dollars
($75,000.00) or more, as such minimum threshold amount of $75,000 may be adjusted as of
January 1 of each calendar year (the "Adjustment Date") during the Term of this Agreement by
any increases in the Consumer Price Index for All Urban Consumers for the Riverside -San
Bernardino -Ontario, California areas (1982-84=100) from the Effective Date to the applicable
Adjustment Date), (4) necessary to comply with state or federal laws and regulations (whether
enacted previous or subsequent to the Effective Date of this Agreement), or (5) adopted by the
City on a City wide basis and applied to the Property (and each One of the Properties) in a non-
discriminatory manner that does not prevent or materially impair Developer's ability to develop
the Project and/or operate or use the Property and Project in accordance with the Project Approvals
and this Agreement.
1.1.38 "SDP" shall have the meaning set forth in Recital D.
1.1.39 "Short -Term Vacation Rental Regulations" means all
provisions of the La Quinta Municipal Code related to short-term vacation rentals as the same may
be amended from time to time, including specifically Chapter 3.24 or successor provisions related
to transient occupancy tax and Chapter 3.25 related to short-term vacation rentals, except to the
extent any provision directly conflicts with the vested rights in Section 5 of this Agreement.
1.1.40 "Site Map" means the map that shows the location of the
site and immediately adjacent properties, which is attached hereto as Exhibit B.
1.1.41 "Term" means the period of time for which the Agreement
shall be effective in accordance with Section 1.2 herein.
1.1.42 "Tract Map" shall have the meaning set forth in Recital D.
1.1.43 "Uniform Codes" means those building, electrical,
mechanical, plumbing, fire and other similar regulations of a City-wide scope which are based on
recommendations of a multi -state professional organization and become applicable throughout the
City, such as, but not limited to, the Uniform Building Code, the Uniform Electrical Code, the
Uniform Mechanical Code, the Uniform Plumbing Code, or the Uniform Fire Code (including
those amendments to the promulgated uniform codes which reflect local modification to
implement the published recommendations of the multi -state organization and which are
applicable City-wide).
IN
DOC #2025-0067601 Page 8 of 68
1.1.44 "Vested Approvals" shall have the meaning set forth in
Recital D.
1.1.45 "Zoning Ordinance" means Title 9 of the La Quinta
Municipal Code or successor title or provisions.
1.2 Term.
The term of this Agreement shall commence on the Effective Date 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 after the satisfaction
of all applicable public hearing and related procedural requirements.
1.3 Effective Date.
This Agreement shall be effective, and the obligations of the Parties hereunder shall be
effective, as of March 6, 2025 ("Effective Date"), which is the date that Ordinance No. 620 takes
effect. This Agreement shall be recorded in the Recorder's Office no later than thirty (30) days
after the Effective Date.
1.4 Statement of Benefits and Consideration.
The Parties have determined that a development agreement is appropriate for the
construction and operation of the Project due to the substantial benefits to be derived therefrom.
City finds and determines that the Project is in the best interests of the health, safety and
general welfare of City and its residents, and that entering into this Agreement constitutes a valid,
present exercise of its police power. City has undertaken the necessary proceedings, has found and
determined that this Agreement is consistent with the General Plan, and has adopted the Ordinance
referenced in Recital I above approving this Agreement. As a result of the development of the
Project in accordance with this Agreement, City will receive substantial benefits.
In consideration of the substantial benefits, commitments, and consideration to be provided
by Developer pursuant to this Agreement, and in order to strengthen the public planning process
and reduce the economic costs of development, City hereby provides Developer assurance that
Developer can proceed with the construction and use of the Project at the Property for the Term of
this Agreement pursuant to the Applicable Rules and this Agreement. Developer would not enter
into this Agreement or agree to provide the public benefits, commitments and consideration
described in this Agreement if it were not for the certainty provided by this Agreement that the
Project and the Property can be constructed and used during the Term of this Agreement in
accordance with the Applicable Rules and this Agreement.
1.5 CEQA Requirements.
The Project has been reviewed for environmental impacts in accordance with the
provisions of CEQA and has adopted a Mitigated Negative Declaration per Environmental
Assessment 2003-495 for Tentative Tract Map 31852 ("MND") as its CEQA review document for
the Project. City has given consideration to such environmental review prior to its approval of this
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DOC #2025-0067601 Page 9 of 68
Agreement and the Project, and has undertaken all actions necessary to comply with CEQA when
approving this Agreement. Developer shall develop the Project in a manner complying with all
design features, mitigation measures, and other terms and conditions required by the MND.
1.6 Modification or Amendment of this Agreement.
Except as expressly stated to the contrary herein, this Agreement may be modified or
amended from time to time, in whole or in part, only by mutual written consent of the Parties or
their successors in interest, consistent with Government Code Sections 65867 through 65868 (or
successor provisions, the Development Agreement Ordinance, and the following terms:
(a) Insubstantial Modifications. The Parties acknowledge that refinements and
further development of the Project may demonstrate that minor changes are appropriate with
respect to the details of the Project development and the performance of the Parties. The Parties
desire to retain a certain degree of flexibility with respect to the details of the Project development
and with respect to those items covered in general terms under this Agreement, and thus desire to
provide a streamlined method of approving insubstantial modifications to this Agreement.
Therefore, any minor modification to this Agreement which does not modify (i) the Term of this
Agreement; (ii) permitted uses of the Property, (iii) maximum density or intensity of use, except
as specifically allowed in the Project Approvals, (iv) provisions for the reservation or dedication
of land, (v) conditions, terms, restrictions or requirements for Reserved Powers, Discretionary
Actions, or subsequent Discretionary Actions, or (vi) monetary obligations of Developer
(hereinafter an "Insubstantial Modification"), and that can be processed under CEQA either as not
a "project" under CEQA or as exempt from CEQA, and that does not require a public hearing prior
to the Parties executing a modification to this Agreement. Either Party may propose an
Insubstantial Modification, consent to which shall not be unreasonably withheld, conditioned, or
delayed by the other Party. Upon the written request of Developer for a modification to this
Agreement, the City Manager or his/her designee shall determine, in his/her sole discretion: (1)
whether, in his/her reasonable judgment, the requested modification constitutes an "Insubstantial
Modification," as defined herein; (2) whether the requested modification is consistent with
Applicable Rules (other than that portion of this Agreement sought to be modified); and (3)
whether, in his/her reasonable judgment, the requested modification tends to promote the goals of
this Agreement. If the City Manager or his/her designee determines that the requested modification
is an "Insubstantial Modification" that is consistent with Applicable Rules and tends to promote
the goals of this Agreement, the proposed modification will be approved by the City as an
Insubstantial Modification, and a written modification will be executed by the Parties and attached
to this Agreement. Any such Insubstantial Modification shall not be deemed an "amendment" to
this Agreement under Government Code Section 65858. Any amendment or other agreement
memorializing an approved Insubstantial Modification shall be recorded in the Recorder's Office
no later than thirty (30) days after complete execution of said amendment or other agreement.
(b) Substantial Amendments. Except as otherwise described in Section 1.6(a)
of this Agreement, amendments to this Agreement shall be "Substantial Amendments" which
require notice and a public hearing pursuant to California Government Code Section 65868.
(c) Parties Required to Amend. Where a portion of Developer's rights or
obligations have been transferred, assigned, and assumed pursuant to Section 1.8 of this
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Agreement, the signature of the person or entity to whom such rights or obligations have been
assigned shall not be required to amend this Agreement unless such amendment would materially
alter the lights or obligations of such transferee/assignee hereunder.
(d) Effect of Amendment. Any amendment to this Agreement shall be operative
only as to those specific portions of this Agreement expressly subject to the amendment, and all
other terms and conditions of this Agreement shall remain in full force and effect without
interruption.
1.7 Termination. Applicable to All of the Pronertv.
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 1.2. 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 Project Approvals. Any
termination of this Agreement shall affect each and every One of the Properties and the entire
Property, and no owner of any One of the Properties may apply for a termination or terminate this
Agreement with respect to that owner's One of the Properties unless all of the owners of the
Property and each and every One of the Properties apply for and seek to terminate this Agreement
for the entire Property and every One of the Properties. In explanation of the foregoing, this
Agreement shall apply to each One of the Properties for the entire duration of the Term, and no
One of the Properties may be released from or excused for performance under this Agreement by
way of terminating this Agreement for that One of the Properties, unless all of the Property and
every One of the Properties are released from this Agreement.
1.8 Assignment of Interests. Rights and Oblieations.
Developer may transfer or assign all or any portion of its interests, rights or obligations
under this Agreement to third parties acquiring an interest or estate in any One of the Properties,
or the Property, or any portion thereof, including, without limitation, purchasers or ground
lessee(s) of lots, parcels or facilities, subject to the following:
1.8.1 Assignment and Assumption Agreements.
(a) In connection with the transfer or assignment by Developer of all or
any portion of the Property (other than a transfer or assignment by Developer to a Mortgagee,
defined below), Developer and the transferee shall enter into a written agreement (an "Assignment
and Assumption Agreement") regarding the respective interests, rights and obligations of
Developer and the transferee in and under this Agreement. Such Assignment and Assumption
Agreement may: (i) release Developer from obligations under this Agreement pertaining to that
portion of the Property being transferred, as described in the Assignment and Assumption
Agreement, provided that the transferee expressly assumes such obligations; (ii) transfer to the
transferee vested rights to develop and/or improve and use that portion of the Property being
transferred; and (iii) address any other matter deemed by Developer to be necessary or appropriate
in connection with the transfer or assignment.
(b) Developer shall obtain City's prior written consent to any
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Assignment and Assumption Agreement (other than a transfer or assignment by Developer to a
Mortgagee defined below, and other than to a bonze fide purchaser for value of the fee interest or
long-term ground lease of One of the Properties provided said purchaser, as transferee, has
obtained and will maintain title insurance insuring the purchaser's easement rights to use the
certain lettered lots in the Tract Map as common area in compliance with Section 1.8.4, below),
which consent shall not be unreasonably withheld, conditioned or delayed. Failure by City to
respond within thirty (30) days to any request made by Developer for such consent shall be deemed
to be City's refusal of the Assigmnent and Assumption Agreement in question. City may refuse to
give its consent if such transferee has failed to provide sufficient evidence of financial resources
and/or if such transferee would not, in City's reasonable opinion, be able to perform the obligations
proposed to be assumed by such transferee. Such determination shall be made by the City Manager
in consultation with the City Attorney and is appealable by Developer directly to the City Council.
(c) An Assignment and Assumption Agreement shall be binding on
Developer, City and the transferee provided (i) Developer is not then in default under this
Agreement, (ii) Developer has provided notice to City of such transfer, and City has approved the
transfer, and (iii) the transferee executes and delivers to City a written agreement in which (a) the
name and address of the transferee is set forth and (b) the transferee expressly and unconditionally
assumes each and every obligation of Developer under this Agreement with respect to the Property,
or portion thereof, being transferred (to the extent Developer has not retained a continuing
obligation), (c) Developer no longer has any legal or equitable interest in the Property or the
portion thereof sold or transferred, as applicable, and (d) City has, in the exercise of its reasonable
discretion, satisfied itself of the transferee's ability to assume those Developer obligations under
this Agreement being assigned. Upon recordation of any Assignment and Assumption Agreement
in the Recorder's Office, Developer shall automatically be released from those obligations
assumed by the transferee therein, and said transferee shall thereafter be deemed the "Developer"
under this Agreement for those transferred and assumed obligations. The Assignment and
Assumption Agreement shall be recorded in the Recorder's Office no later than thirty (30) days
after the complete execution thereof by Developer, City, and transferee.
(d) In further explanation of Subdivision 1.8.1(c) above, Developer
shall be free from any and all liabilities accruing on or after the date of any assignment or transfer
with respect to those obligations assumed by a transferee pursuant to an Assignment and
Assumption Agreement approved by City pursuant to this Agreement. No breach or default
hereunder by any person succeeding to any portion of Developer's obligations under this
Agreement shall be attributed to Developer, nor may Developer's rights hereunder be canceled or
diminished in any way by any breach or default by any such person following Developer's release
of obligations under the Project Approvals pursuant to an Assignment and Assumption Agreement
assigning Developer's obligations to that successor.
(e) The 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.
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1.8.2 Transfers for Mortgages.
Any transfers or assignments for any Mortgagee (defined below) shall be subject to the
provisions in Article 7 of this Agreement.
1.8.3 Transfers to Affiliated Parties.
Developer may at any time and without City's prior consent, transfer all or any portion of
its rights and obligations under this Agreement to any Affiliated Party and, in connection with the
transfer of any such obligations by Developer to an Affiliated Party in accordance with this
Agreement, shall be released from such obligations assumed by the Affiliated Party. Developer
shall deliver to City, no later than ten (10) days after such transfer an Assignment and Assumption
Agreement in recordable format memorializing the transfer of Developer's rights and obligations
under this Agreement to an Affiliated Party, along with evidence sufficient for City, in its
reasonable discretion, to review and confirm the transferee is an Affiliated Party of Developer, and
that Affiliated Party's contact information for notices to be delivered pursuant to this Agreement.
The Assignment and Assumption Agreement shall be recorded in the Recorder's Office no later
than thirty (30) days after the effective date of the assignment and assumption of said rights and
obligations to the Affiliated Parry. In the event a purported transferee is not an Affiliated Parry, or
Developer does not provide sufficient evidence, in City's reasonable discretion, to review and
confirm the purported transferee is an Affiliated Party, any such transfer shall be void and of no
force and effect.
1.8.4 Obligation to Continuously Insure Easement Rights and
Common Areas for all Properties.
Developer represents and warrants that Developer has and will maintain title insurance for
the Property, including insurance for the easement rights with respect to certain lettered lots to be
used as common area and identified in the Tract Map, which are appurtenant to and benefit the
residential (numbered) lots. Any transfer or assignment by Developer, including a transfer of One
of the Properties by sale or ground lease and/or a sale to a bone fide purchaser for value of the fee
interest or ground lease interest of One of the Properties, shall require the transferee or assignee or
bone fide purchaser- to have obtained and maintain title insurance insuring the transferee's or
assignee's or bonefide purchaser's easement right to use the certain lettered lots in the Tract Map
as common area, so that any transferee or assignee of Developer that owns all or any portion of
the numbered lots (One of the Properties) in the Tract Map likewise shall have insured rights to
the easements in the letter lots that serve as the common area for the Property. For reference
purposes, a template from Developer's title insurance policy, with terms that identify the common
area parcels (lettered lots) covered under the owner's policy for One of the Properties (residential
numbered lot) in a manner that is consistent with this Section 1.8.4, is attached hereto as Exhibit F.
2. AGREEMENTS AND ASSURANCES
2.1 Agreement and Assurance on the Part of Developer.
In consideration for City entering into this Agreement, and as an inducement for City to
obligate itself to carry out the covenants and conditions set forth in this Agreement, and in order
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to effectuate the purposes and intentions set forth in the Recitals of this Agreement, Developer
hereby agrees that the terms and conditions of this Agreement, including the Project Approvals
incorporated herein, shall govern development and operation of the Property for the Term of this
Agreement.
2.2 Agreement and Assurances on the Part of the City.
In consideration for Developer entering into this Agreement, and as an inducement for
Developer to obligate itself to carry out the covenants and conditions set forth in this Agreement,
and in order to effectuate the purposes and intentions set forth in this Agreement, City hereby
agrees as follows:
2.2.1 Vested Entitlement to Develop.
Developer has the vested right to develop, improve, operate and use the Property and
Project subject to the terms and conditions of this Agreement, the Applicable Rules, Project
Approvals and the Reserved Powers. It is the intent of City and Developer that the vesting of
development rights of Developer shall include the permitted land uses, densities, and intensities of
use of the Property, timing or phasing of development, zoning, provisions for the reservation or
dedication of land for public purposes, and the location and size of public improvements, as well
as those other terms and conditions of development of the Project as set forth in this Agreement
and the other Project Approvals. Developer's vested rights under this Agreement shall also include,
without limitation, the right to remodel, renovate, rehabilitate, rebuild or replace all improvements
on the Property or within the Project (or any portion thereof) throughout the applicable Term for
any reason, including, without limitation, in the event of damage, destruction or obsolescence of
the existing development or the Project or any portion thereof, subject to the terms and conditions
of this Agreement, the Applicable Rules, Project Approvals and the Reserved Powers. Such
vesting shall expire upon the earlier of the following occurrences: (a) termination of this
Agreement, or (b) expiration of the Term of this Agreement. Except for the expiration set forth in
clause (b) of the preceding sentence, the expiration of the vesting right set forth in the preceding
sentence shall not terminate any obligations of Developer under this Agreement that (x) have
accrued prior to termination of this Agreement or (y) that expressly survive the termination of this
Agreement, such as indemnification obligations. Notwithstanding anything in this Agreement to
the contrary, the Project shall remain subject to the following, to the same extent it would without
this Agreement:
(i) all Applicable Rules, unless modified by or in conflict with the; provisions
of this Agreement;
(ii) subject to Article 5 of this Agreement, the right to develop, improve, and
use the Property (and each One of the Properties) for short-term vacation
rentals, provided that any and all short-term vacation rentals shall be subject
to the Short -Term Vacation Rental Regulations;
(iii) all New Laws applied to Developer through the City's Reserved Powers;
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(iv) all subsequent development approvals and the conditions of approval
associated therewith, including but not limited to any further Future
Approvals, site development permits, tract maps, and building permits;
(v) 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
(vi) 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.
2.2.2 Changes in Applicable Rules.
(A) Nonapplication of Changes in Applicable Rules.
Any change in, or addition to, the Applicable Rules (as defined in this Agreement and in
effect as of the Effective Date), including, without limitation, any such change by means of
ordinance, City Charter amendment, initiative, referendum, resolution, motion, policy, order or
moratorium, initiated or instituted for any reason whatsoever and adopted by the City, City
Council, Planning Commission or any other board, commission, department or agency of the City,
or any officer or employee thereof, or by the electorate, as the case may be, which change would,
absent this Agreement, otherwise be applicable to the Property and/or to the Project and which
change would either (i) conflict in any way with the Applicable Rules, Project Approvals, or this
Agreement, or (ii) reduce the development rights or allowances set forth in the Applicable Rules,
Project Approvals, or this Agreement, shall not be applied to the Property (or any One of the
Properties) or Project unless such changes represent an exercise of City's Reserved Powers, or are
otherwise agreed to in this Agreement. It is expressly understood and agreed that Developer has
the right to develop, improve, and use the Property (and each One of the Properties) for short-term
vacation rentals subject to Article 5 of this Agreement and compliance with all Short -Term Rental
Regulations. The right to apply for a new or renewal permit, and the City's ability to review and
issue a new or renewal permit, for short-term vacation rentals on the Property (or any One of the
Properties) or Project, shall be allowed and authorized by this Agreement.
Notwithstanding the foregoing paragraph, Developer may, in its sole discretion, consent in
writing to the application to the Property (which shall mean each One of the Properties) and/or
Project of any change in the Applicable Rules.
(B) Changes in Uniform Codes.
Notwithstanding any provision of this Agreement to the contrary, development and use of
the Property and Project shall be subject to changes which may occur from time to time in the
Uniform Codes, as such Codes are adopted by the City of La Quinta.
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(C) Changes Mandated by Federal or State Law.
This Agreement shall not preclude the application to the Property and Project of changes
in, or additions to, the Applicable Rules, including rules, regulations, ordinances and official
policies, to the extent that such changes or additions are mandated to be applied to developments
such as this Project by state or federal regulations, pursuant to the Reserved Powers. In the event
state or federal laws or regulations prevent or preclude compliance with one or more provisions of
this Agreement, such provisions shall be modified or suspended only to the extent necessary to
comply with such state or federal laws or regulations.
2.2.3 Subsequent Development Review.
Except as expressly reserved in this Agreement (including the right to apply for a new or
renewal permit, and the City's review and issuance of a new or renewal permit, for short-term
vacation rentals), nothing shall impair or interfere with the right of City to require the processing
of permits as required by law pursuant to the applicable provisions of the La. Quinta Municipal
Code and the provisions of Uniform Codes.
2.2.4 Effective Development Standards.
City agrees that it is bound to permit the uses, intensities of use, and densities of
development on the Property (and each One of the Properties) which are permitted by this
Agreement and the Project Approvals, insofar as this Agreement and the Project Approvals so
provide or as otherwise set forth in the Applicable Rules. City hereby agrees that it will not
unreasonably withhold, delay or condition any approvals and/or permits which must be issued by
City in order for the Project to proceed and for the Property to be used for the authorized uses
herein, provided that Developer reasonably and satisfactorily complies with all applicable
procedures for processing applications for such approvals and/or permits.
DEVELOPER'S OBLIGATIONS
3.1 Development of the Project; Planned Development.
Developer intends to own and operate the entire Project as a short-term rental project rather
than as a planned development in which Developer would sell to bone fide purchasers for value
individual residential (numbered) lots to members of the public pursuant to the Davis -Stirling Act.
In the event that, prior to the date that is one (1) year prior to the expiration date of the Term of
this Agreement, Developer elects to sell to bone fide purchasers for value the individual residential
(numbered) lots in the Project to the public (as opposed to a bulk sale of lots in the Project to a
builder or subsequent developer in accordance with this Agreement), Developer shall fully comply
with the requirements of the Davis -Stirling Act and shall ensure that the Project constitutes a
"planned development" as defined in California Civil Code Section 4175 (or successor provision)
pursuant to the Davis -Stirling Act, which, among other requirements, shall require the recording
by Developer of a declaration of covenants, conditions, and restrictions that, at a minimum, meets
the requirements of a "declaration" as defined and described in the Davis -Stirling Act and to
memorialize specified conditions of approval that are part of the Project Approvals (the
"CC&Rs"). If, prior to the 1-year date of expiration of the Term of this Agreement, Developer has
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not previously elected to sell to bone fide purchasers for value the individual residential
(numbered) lots in the Project to the public, then Developer shall, prior to the expiration of the
Term, fully comply with the requirements of the Davis -Stirling Act and shall ensure that the
Project constitutes a "planned development" as defined in California Civil Code Section 4175 (or
successor provision) witli a "declaration" as defined and described in the Davis -Stirling Act and
to memorialize specified conditions of approval in the CC&Rs.
Developer shall provide to City, no less than ninety (90) days prior to the submission of
the CC&Rs to the California Department of Real Estate (the "DRE"), a copy of the proposed final
draft of the CC&Rs for review and approval, not to be unreasonably withheld or conditioned, by
the City Manager and City Attorney. Further, following approval of the CC&Rs by the DRE,
Developer shall provide to City, no less than thirty (30) days prior the anticipated date of recording,
a copy of the DRE approved CC&Rs for review and approval so that the City Manager and City
Attorney can insure that there have been no material adverse changes from the prior approved draft
of the CC&Rs. If and when the Project is converted to a planned development under the
Subdivided Lands Act and Davis -Stirling Act, it shall have an "association" as defined and
described in the Davis -Stirling Act.
Developer shall construct the Project on the Property only in accordance with the Project
Approvals. As depicted in the Project Approvals, as the same may be updated or amended from
time to time consistent with the terns hereof, the Project shall consist of a residential single-family
development specifically developed and available for residential purposes, and may be the
residents' primary residence or secondary residences, and/or may be used for short-term vacation
rentals, with the following components:
(A) Annual permitting fees to be consistent with the City's fee program;
(B) Any rental or occupancy of 30 nights or less to be subject to the
City's then -current transient occupancy tax ("TOT") for short-term vacation rentals;
(C) 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 Developer or Developer's authorized management
company for the short-term vacation rentals at the Property;
(D) The Project shall comply with all Applicable Rules, including
occupancy limits set forth in the La Quinta Municipal Code; and
(E) All residences at the Property (and on each One of the Properties)
shall allow for transient occupancy, which means occupancy for thirty (30) days or less subject to
the Applicable Rules.
3.2 Compliance with Government Code Section 66473.7
Developer shall comply with the provisions of Government Code Section 66473.7 with
respect to any tract maps prepared for the Project.
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3.3 Performance Schedule
Developer shall plan, design and construct the Project in a timely manner in accordance
with the Performance Schedule attached hereto as Exhibit D. The Parties acknowledge and agree
that the Performance Schedule is a general sequencing of the phases of the Project, and such
sequencing may be modified by Developer to effectuate construction and end -use efficiencies. If
Developer, in its good faith discretion, anticipates or decides a phase of the Project may need to
be removed or an additional phase of the Project should be added, or the timing for completion of
phases should be revised, the Performance Schedule may be amended by mutual written agreement
of the Parties. The City may approve or deny a requested amendment to the Performance Schedule
in its reasonable discretion, provided that such approval shall not be unreasonably withheld or
delayed. In evaluating a Developer request for an amendment to the Performance Schedule, the
City shall give strong consideration and latitude to Developer in the Developer's good faith
exercise of business judgement based on market conditions and other factors Developer deems
appropriate in connection with the requested amendment. If an amendment(s) to the Performance
Schedule is determined to be an Insubstantial Modification pursuant to this Agreement, the City
Manager is individually authorized to sign such amendments on behalf of the City.
3.4 Fundine. Fees, Permits, and Apmrovals.
3.4.1 No Funding. Developer acknowledges that the City is not providing any
funding for the Project.
3.4.2 Fees, Permits, and Approvals Governed by Municipal Code. Subject to
Article 5 of this Agreement, all permitting and processing fees (including for the permitting and
processing of short-term vacation rentals), and all permits and approvals for the Property, and
Project, shall be governed by the provisions of the La Quinta Municipal Code and shall be paid
and performed in accordance therewith and any and all applicable ordinances, resolutions, and
policies relating thereto. All such fees and applications submitted to the City shall be processed in
accordance with the then -current La Quinta Municipal Code and any and all applicable ordinances,
resolutions, and policies relating thereto, including the timing provisions therein, and shall not be
accorded separate treatment pursuant to this Agreement. All City -imposed fees, including the fees
for short-term vacation rental permitting, shall be in the amount prescribed by the La Quinta
Municipal Code or duly adopted City Council ordinances, resolutions, and policies in effect at the
time the fee is imposed.
3.4.3 Imposition of Existing; and Future Fees. Nothing set forth in this Agreement
is intended to or shall be construed to limit or restrict the City's authority to impose its existing, or
any new or increased, Citywide fees, charges, levies, or assessments for the development of the
Property or Project, or to impose or increase, subject to the required procedure, any taxes
applicable to the Property or Project, including but not limited to transient occupancy taxes (TOT).
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.
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3.5 Dedications and Improvements, Improvement Security.
In connection with the recordation of any final subdivision map for the Project, Developer
shall, through the execution of a subdivision improvement agreement with the City, provide to the
City, in a form reasonably acceptable to the City Attorney, improvement security as provided in
the La Quinta Municipal Code (and any and all applicable ordinances, resolutions, and policies
relating thereto) to secure the faithful performance of Developer's obligations under this
Agreement to construct the on -site and off -site improvements identified on that map. The terms,
amounts and provisions for release of the improvement security shall be as set forth in the La
Quinta Municipal Code (and any and all applicable ordinances, resolutions, and policies relating
thereto).
3.6 Indemnification.
Developer shall protect, defend, indemnify and hold harmless City and City's officers,
officials, members, employees, volunteers, agents, and representatives (any of the foregoing shall
be known individually as "Indemnitee" and collectively as "Indemnitees"), and each of them,
jointly and severally, against and from any and all claims, demands, causes of action, damages,
costs, expenses, losses and liabilities, at law or in equity, of every kind or nature whatsoever,
including reasonable attorneys' fees and expert witness fees, arising out of or directly relating to
construction-, development, use- and operations -related activities on the Property and Project by
Developer, including, without limitation, matters related to the use or the inability to use any
common area in the Project (such as, and without limitation, inability of Developer or any
transferee, assignee, owner or occupant of One of the Properties to use certain lettered lots in the
Tract Map as common area; and/or the failure by Developer or any transferee or assignee to
procure and maintain title insurance covering the right to use the certain lettered lots in the Tract
Map as common area appurtenant easements to the Property and/or any One of the Properties;
and/or any failure by Developer or any transferee or assignee to procure and maintain title
insurance covering the right to use the certain lettered lots in the Tract Map as common area
appurtenant easements to the Property and/or any One of the Properties), and including, without
limitation, injury to or death of any person or persons and damage to or destruction of any property,
threatened, brought or instituted ("Claims"), excluding those claims proven by a court of
competent jurisdiction to be resulting from the gross negligence or willful misconduct of City. In
the event of any action, litigation, or other adversarial proceeding in any way involving the Claims
specified in this section, City agrees, at no cost to City, to cooperate with Developer. Developer
shall have the obligation to provide the defense of City in the action, litigation, or other adversarial
proceeding, either by providing for legal counsel or, at City's option, timely paying the legal costs
incurred by City in the defense of litigation, even though negligence or gross negligence of
Developer or its contractors, subcontractors, agents, employees or other persons acting on its
behalf has not been established at the time that the defense is provided. In addition, Developer
shall be obligated to promptly pay any final judgment or portion thereof rendered against the
Indemnitee or Indemnitees.
In the event of any court action or proceeding challenging the validity of this Agreement
or the Project Approvals (including related CEQA analysis), Developer shall indemnify, hold
harmless, pay all costs and provide defense for City in said action or proceeding with counsel
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chosen by Developer and reasonably approved by City. City shall, at no cost to City, cooperate
with Developer in any such defense as Developer may reasonably request. In the event Developer
fails or refuses to provide such defense of any challenge to this Agreement or the Project
Approvals, or any component thereof, 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. In the event of such termination, Developer, upon written request of City, shall
immediately execute a termination document or other document reasonably required by a reputable
title company to remove this Agreement as a cloud on title.
3.7 Recording of Agreement.
This Agreement shall be valid and binding as of the Effective Date; provided, however,
that the terms and conditions set forth in this Agreement affecting the vested rights and ability to
develop and use the Property and Project as set forth herein, shall be contingent upon this
Agreement being recorded in the Recorder's Office.
3.8 Management
During the term of this Agreement, Developer agrees that Developer shall not designate
more than two (2) third party management companies at any one time for purposes of managing
the day-to-day operations of the Property or any One of the Properties and ensuring compliance
with the terms of this Agreement. For the avoidance of doubt, the immediately foregoing sentence
shall not restrict Developer from self -managing (or designating an affiliated property management
company to manage) the Property or any One of the Properties.
4. CITY'S OBLIGATIONS
4.1 Scone of Subseauent Review/Confirmation of Compliance Process.
Nothing set forth herein shall impair or interfere with the right of 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 ("Compliance Certificate"), in substantially the same form as that attached hereto as
Exhibit C. The Compliance Certificate shall be distributed to the relevant City departments in order
to check the representations made by Developer on the Compliance 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 City with respect
to the Project, constitute independent actions and approvals by 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
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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 and provisions. It is understood by the Parties 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.
City shall review Developer's compliance with the terns of Agreement at least once during
every twelve (12) month period following the Effective Date of this Agreement, in accordance
with City's procedures and standards for such review. During such periodic review by City,
Developer, upon written request from City, shall be required to demonstrate, and hereby agrees to
finnish, evidence of good faith compliance with the terms hereof. The failure of City to conduct
or complete the annual review as provided herein or in accordance with the Development
Agreement Ordinance shall not impact the validity of this Agreement. If, at the conclusion of the
annual review provided for herein, Developer has been found in compliance with this Agreement,
City, through the Development Director, shall, at Developer's written request, issue an estoppel
certificate to Developer stating that (1) this Agreement remains in full force and effect, (2)
Developer is in compliance with this Agreement and (3) any other qualifying information as may
be consistent with such estoppel certificate pursuant to Section 8.12 of this Agreement.
SHORT TERM VACATION RENTALS/TRANSIENT OCCUPANCY TAXES
5.1 Short Tenn Vacation Rentals as a Permitted Use.
This Agreement does hereby provide that short-term vacation rentals are a permitted use
within all portions of the Project, the Property, and each One of the Properties that allow residential
uses, and the rights to such permitted use are hereby vested pursuant to the terms of this
Agreement, and this vested right shall inure to the benefit of Developer and all owners of each
portion of the Property or each One of the Properties. As such, the rights and obligations under
this Section 5.1 shall survive the sale of each One of the Properties to a third -party homebuyer.
Except to the extent expressly provided otherwise in this Agreement, the City shall not
impose on or apply to the Project (whether by action of the City Council, or other legislative body,
or by initiative, referendum, or other measure) any ordinance, resolution, standard, directive,
condition, or other measure that is in conflict with this Section 5.1 or that would materially interfere
with the right to apply for and, upon compliance with the City's ministerial permitting process and
approval, operate short-term vacation rentals in all residential units within the Project. Such short-
term vacation rentals within the Project shall be subject to the Short -Term Vacation Rental
Regulations, including but not limited to all operational requirements, noise restrictions,
occupancy limits, provisions for violations and penalties, provisions for the payment of transient
occupancy tax, and all other requirements.
For reference only, a copy of Chapter 3.25 of the La Quinta Municipal Code in effect as of
the Effective Date is attached to this Agreement as Exhibit E. In the event Chapter 3.25 is repealed
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in its entirety and is not replaced with a successor provision that would grant Developer the vested
rights granted by this Section 5.1, then the latest version of Chapter 3.25 (or successor provision)
that did allow the vested rights granted by this Section 5.1 shall apply. In the event Chapter 3.24
is repealed in its entirety and is not replaced with a successor provision that would grant Developer
the vested rights granted by this Section 5.1, then the latest version of Chapter 3.24 (or successor
provision) that did allow the vested rights granted by this Section 5.1 shall apply.
5.2 Covenants Conditions and Restrictions.
All CC&Rs recorded pursuant to Section 3.1 of this Agreement on any property within the
Project where residential uses are allowed shall expressly authorize short-term vacation rentals for
all residential units. All such CC&Rs shall state the operational requirements and standard
conditions (such as, and without limitation, maximum occupancy, outdoor use limitations, and
other requirements or conditions for the residential (numbered) lots in the Project) applicable to
short-term rentals in that tract or planning area of the Project. Until such date as the CC&Rs are
recorded against the Property and the Project (see Section 3.1, above), such operational
requirements and standard conditions shall be set forth in rules and regulations or a similar
document ("STR Rules") which shall be provided to all persons who rent residential (numbered)
lots in the Project on a short-term rental basis.
5.3 Short -Term Vacation Rental Centralized Management.
In order to ensure the timely collection and reporting of the applicable transient occupancy
taxes, and compliance with the applicable operational requirements and conditions set forth in the
Short -Term Vacation Rental Regulations, Developer or its successor or assignee shall be the
"authorized agent or representative" (as that term is defined in the Short -Term Vacation Rental
Regulations, or, if the definition is removed during the Term of this Agreement, as defined in
Chapter 3.25 as of the Effective Date of this Agreement) for all short-term vacation rentals and
short-term vacation rental permits within the Project, including but not limited to applying for and
managing all short-term vacation rental permits, making all reservations and payments, and
ensuring compliance with all other requirements of the Short -Tenn Vacation Rental Regulations,
and shall do so exclusively through a central rental operator pursuant to Sections 5.2 and this 5.3
of this Agreement, which shall be confirmed at the issuance and renewal of each short-term
vacation rental permit; provided, however, that the "residence owner" (in this context, means the
owner of a residential unit with a short-term vacation rental permit, as that term is defined in the
Short -Term Vacation Rental Regulations, or, if the definition is removed during the Tenn of this
Agreement, as defined in Chapter 3.25 as of the Effective Date of this Agreement, and hereinafter
defined as "residence owner") shall remain ultimately obligated as the holder of the short-term
vacation rental permit for any and all remedial actions necessary for compliance with the Short -
Term Vacation Rental Regulations and this Agreement, including but not limited to the payment
of any fines or recorded liens or any other violations for non-compliance; and, provided further,
that the residence owner shall have a process available, through an independent arbitrator or neutral
decision -maker designated by the residence owner or homeowner's association ("HOA") of which
the residence owner is a member, to petition for a change of that residence owner's "authorized
agent or representative" because the residence owner demonstrates, with a preponderance of
evidence, that the "authorized agent or representative," designated by the Developer or its
successor or assignee, has failed to perform its duty to ensure compliance with all other
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requirements of the Short -Term Vacation Rental Regulations for that residence owner's short-term
vacation rental unit. The CC&Rs as described in Section 5.2 of this Agreement shall include the
terms and conditions, and detailed specifics for process and decision, whenever a residence owner
may petition the HOA for a change in that residence owner's "authorized agent or representative"
as required by this Section 5.3; the City Manager and City Attorney shall review and approve, in
their reasonable discretion and not to be unreasonably delayed or denied, said terms and conditions
in the CC&Rs that would apply if a residence owner were to petition the HOA for a change in that
residence owner's "authorized agent or representative" as required by this Section 5.3.
Developer shall be responsible for ensuring that, for the Tenn of this Agreement, one or
more contract(s) shall be in effect at all times which provide opportunities to the residence owners
of residential units to have the ability to make their units available for short-term rentals permitted
by this Agreement and the CC&Rs. The contract or contracts may, but are not required to, be with
an on -site rental management agent. Developer may assign this obligation in accordance with this
Agreement.
6. DEFAULT,• REMEDIES• DISPUTE RESOLUTION.
6.1 Notice of Default.
In the event of failure by either Party 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.
6.2 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 thirty (30) days after receipt of the notice of default, or, for such defaults that cannot
reasonably be cured, corrected or remedied within thirty (30) days, such Party shall commence to
cure, correct, or remedy such default within such thirty (30) day period, and shall continuously
and diligently prosecute such cure, correction or remedy to completion.
6.3 City Remedies.
In the event of an uncured default by Developer of the terms of this Agreement, 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, punitive or exemplary 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, City, in addition to or as an alternative to exercising the remedies set
forth in this Section 6.3, in the event of a material uncured default by Developer, may give notice
of its intent to terminate or modify this Agreement pursuant to City's Development Agreement
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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. Notwithstanding anything to the
contrary herein, the City agrees that it shall not institute a legal action, terminate, or modify this
Agreement under this Section 6.3 to the extent any holder of a mortgage or deed of trust has an
unexpired right, pursuant to Section 7.4, to cure or remedy or to commence a cure or remedy of
any uncured Developer default.
6.4 Developer's Exclusive Remedies.
The Parties acknowledge and agree that the City would not have entered into this
Agreement if it were to be liable for damages under, or with respect to, this Agreement or any of
the matters referred to herein including, but not limited to, the Project Approvals (including any
CEQA analysis therefor), the Applicable Rules, any anticipated development and use of the
Property (including but not limited to the ability to develop and use the Property for the Project
and separate legal residential parcels for residential purposes and/or short-term vacation rentals),
or any future amendments or enactments thereto. Accordingly, Developer covenants on behalf of
itself and its successors and assigns, not to sue the City for damages or monetary relief (except for
attorneys' fees as provided for by Section 8.22) 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 Project Approvals, the Applicable Rules, any
anticipated development and use of the Property for the Project (including but not limited to the
ability to develop and use the Property and separate legal residential parcels for residential
purposes and/or short-term vacation rentals), or any future amendments or enactments thereto, or
the Project, or any land use permits or approvals sought in connection with the development of the
Project or any component thereof, or use of the Property and/or any separate legal 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.
7. MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE
7.1 Encumbrances on the Proiect Site.
This Agreement shall not prevent or limit Developer from encumbering the Property 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 Property, 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.
7.2 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 Property or any portion thereof or any improvements
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thereon 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.
7.3 Mortgagee Not Obligated, Request for Notice of Default on Mortgage.
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 Property or Project, or any portion thereof without the written consent of the City, 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 by Mortgagee shall continue to be a condition
precedent to the City's performance hereunder. Any Mortgagee that intends to take possession of
or intends to acquire title to the Property, or any purchaser that intends to take possession of or
intends to acquire the Property at a foreclosure sale or as a recipient of a deed -in -lieu of foreclosure
resulting from a Mortgage held by a Mortgagee, shall have the right, at such party's election, to
develop and operate the Property pursuant to this Agreement, provided that such Mortgagee,
purchaser or recipient shall (i) no later than ninety (90) days prior to taking possession of, or
acquiring title to, the Property, deliver written notice to the City that such Mortgagee, purchaser,
or recipient intends to take possession of or acquire title to the Property, and such written notice
includes its contact information for notices to be delivered pursuant to this Agreement, (ii) such
Mortgagee, purchaser, or recipient assumes in writing the obligations of Developer under this
Agreement with respect to the Property arising from and after the date of possession or acquisition
of title, as applicable, pursuant to an Assignment and Assumption Agreement, and (iii) such
Mortgagee, purchaser, or recipient, as applicable, received written consent of City to develop or
operate the Property or Project or any portion thereof. Furthermore, if any Mortgagee that takes
possession of or acquires title to the Property does not elect in writing to assume the obligations
of Developer under this Agreement, such Mortgagee shall have no rights under this Agreement.
Developer may assign its rights, obligations, and duties under this Agreement to a Mortgagee
pursuant to Section 1.8 of this Agreement.
In the event any Mortgagee delivers to Developer (or authorized transferee) a notice of
default under any Mortgage recorded against the Property or Project (or any portion thereof),
Developer shall deliver to City, no later than five (5) business days after receipt by Developer, a
copy of said notice of default from the Mortgagee. Failure by Developer to cure, pursuant to any
Mortgage from which the notice of default from Mortgagee had been issued, may be deemed by
City to be a default by Developer under this Agreement; provided, however, that such default by
Developer for failure to perform under any Mortgage shall not defeat any rights and remedies that
said Mortgagee may have under the Mortgage or as set forth in this Agreement. The preceding
sentence does not apply to the mortgage of an owner who is a bone fide purchaser for value of the
fee interest or long-term ground lease of One of the Properties, including, without limitation, a
mortgage in connection with that owner's loan to purchase the fee interest or long-term ground
lease of the residential (numbered) lot, or to refinance same, or for a home equity loan.
Additionally, City shall have the right to execute and record a Request for Notice of Default
substantially in the form and as authorized pursuant to California Civil Code Section 2924b (or
successor provision) ("Request for Notice of Default"), and Developer shall have the obligation to
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deliver to City written notice of any Mortgagee with a Mortgage recorded against the Property or
Project (or any portion thereof) within five (5) business days of recording of said Mortgage.
Developer shall have the obligation to cooperate with City to facilitate the execution, notarizing,
and recording of any Request for Notice of Default pursuant to this paragraph.
7.4 Notice of Default to Mortizaizee; Right of Mortgagee to Cure.
With respect to any mortgage or deed of trust granted by Developer, whenever City may
deliver any notice or demand to Developer with respect to any breach or default by Developer in
completion of construction of the Project or any component of the Project, Developer shall at the
same time deliver a copy of such notice or demand to each holder of record of any Mortgage or
Mortgagee which has previously requested such notice in writing. Each such holder shall (insofar
as the rights granted by City are concerned) have the right, at its option, within sixty (60) days
after the receipt of the notice, to cure or remedy or commence to cure or remedy and thereafter to
pursue with due diligence the cure or remedy of any such default and to add the cost thereof to the
Mortgage debt and the lien of its Mortgage. It is understood that a holder of the Mortgage shall be
deemed to have satisfied the sixty (60) daytime limit set forth above for commencing to cure or
remedy a Developer default which requires title and/or possession of the Property or Project (or
portion thereof) if and to the extent any such holder has within such sixty (60) day period
commenced proceedings to obtain title and/or possession and thereafter the holder diligently
pursues such proceedings to completion and cures or remedies the default in accordance with this
Agreement. City agrees that each holder of a mortgage or deed of trust encumbering the Property
that has rights under this Section 7.4 shall be entitled to exercise such rights without the
requirement of obtaining the written consent of City. Furthermore, if requested in writing by any
holder of record of any Mortgage or Mortgagee, then whenever City delivers a written notice of
default to Developer under this Agreement, City shall deliver a copy of such notice to each holder
of record of any Mortgage or Mortgagee that has previously requested such notice in writing no
later than three (3) business days after said notice is delivered to Developer.
MISCELLANEOUS
8.1 Notices Demands and Communications Between the Parties.
Any approval, disapproval, demand, document or other notice ("Notice") which either
Party may desire to give to the other Party under this Agreement must be in writing and shall be
sufficiently given if (i) delivered by hand, (ii) delivered by reputable same -day or overnight
messenger service that provides a receipt showing date and time of delivery, or (iii) dispatched by
registered or certified mail, postage prepaid, to the principal offices of City and Developer at the
addresses specified below, or at any other address as that Party may later designate by Notice.
To City: City of La Quinta
78-495 Calle Tampico
La Quinta, California 92253
Attn: City Clerk
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With a copy to: Rutan & Tucker, LLP
18575 Jamboree Road, 91" Floor
Irvine, California 92612
Attn: William H. Iluke
To Developer: Desert Luxury Properties LLC
72877 Dinah Shore Dr., Ste. 103
Rancho Mirage, California 92270
Attn: Claudio Bravo
With copies to: Nethery/Mueller/Olivier LLP
41750 Rancho Las Palmas Dr.
Suite H-1
Rancho Mirage, CA 92270
Attn: Daniel Olivier
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.
8.2 Force Majeure.
In addition to specific provisions of this Agreement, performance by either Party hereunder
shall not be deemed to be in default, and all performance and other dates specified in this
Agreement shall be extended, where delays or defaults are due to causes beyond the control or
without the fault of the Party claiming an extension of time to perform, which may include the
following (each, a "Force Majeure"): war; insurrection; acts of terrorism; strikes; lockouts; riots;
floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine
restrictions; freight embargoes; lack of transportation; governmental restrictions or priority
imposed or mandated by other governmental entities; unusually severe weather; inability to secure
necessary labor, materials or tools; delays of any contractor, subcontractor or supplier; acts or
omissions of the other Party; or acts or failures to act of any public or governmental agency or
entity (other than the acts or failures to act of City which shall not excuse performance by City),
or any other causes beyond the control or without the fault of the party claiming an extension of
time to perform. Notwithstanding anything to the contrary in this Agreement, an extension of time
for any such cause shall only be for the period of the enforced delay and shall commence to run
from the time of the commmencement of the cause, if notice by the Party claiming such extension
is sent to the other Party within thirty (30) days of the commencement of the cause. Times of
performance under this Agreement may also be extended in writing by the mutual agreement of
City and 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 Property, or because of
economic or market conditions.
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8.3 Bindina 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
Property, 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 Property.
8.4 Independent Entity.
The Parties acknowledge that, in entering into and performing this Agreement, each of
Developer and 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.
8.6 Covenants.
The provisions of this Agreement shall constitute mutual covenants which shall run with
the land comprising the Property for the benefit thereof, and for the benefit of City, and the burdens
and benefits hereof shall 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 Non -liability 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 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 or
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, et
seq.).
8.9 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
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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.
8.10 Severabilitv.
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.
8.11 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
to provide and secure to the other Party the full and complete enjoyment of its rights and privileges
hereunder.
8.12 Estonnel Certificate.
Either Party 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 written request hereunder shall
execute and return such requested certificate within twenty (20) days following receipt of such
request. The form of the requested estoppel certificate shall be reasonably approved by the
receiving party. The City Manager is authorized to sign and deliver an estoppel certificate on behalf
of City. City acknowledges that a certificate hereunder may be relied upon by transferees and
Mortgagees.
8.13 Construction.
The 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.
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8.14 Recordation.
This Agreement shall be recorded with the Recorder's Office 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.
8.15 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.
8.16 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.
8.17 Recitals & Exhibits Incorporated; Entire Agreement.
The Recitals to this Agreement and all of the exhibits and attachments to this Agreement
are, with the exception of Exhibit E by this reference, incorporated into this Agreement and made
a part hereof. This Agreement, including all Exhibits attached hereto with the exception of Exhibit
E, 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.
8.18 Exhibits.
Exhibits A -D to which reference is made in this Agreement are deemed incorporated
herein in their entirety, whether or not such exhibits are attached hereto in full. Exhibits E and F
are attached for reference purposes only and is not incorporated herein. Said exhibits are identified
as follows:
A Legal Description of the Property
B Site Map
C. Compliance Certificate
D. Performance Schedule
E. Chapter 3.25 of the La Quinta Municipal Code (for reference purposes only)
F. Example Title Insurance Policy Terms Showing Common Area Lettered -
Lots in Tract Map Covered Under Numbered -Lot Owner Policy, To Assist
with Compliance with Section 1.8.4 (for reference purposes only)
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8.19 Counteiroart Signature Paizes.
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.
8.20 Authoritv to Execute: Renresentations and Warranties.
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 covenants and obligations set forth in this Agreement. City warrants and
represents that the person or persons executing this Agreement on its behalf have been duly
authorized to execute this Agreement and bind City to all covenants and obligations set forth in
this Agreement.
8.21 Citv Anurovals and Actions.
Whenever a reference is made in this Agreement to an action or approval to be undertaken
by City, or for any amendment, interpretation, or implementing documents required under this
Agreement, the City Manager or his or her authorized designee is authorized to act on behalf of
City unless specifically provided otherwise in this Agreement or the law otherwise requires.
8.22 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 either 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 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.
8.23 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
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the other party from such commissions or fees as are alleged to be due from the party making such
representations.
[signatures on next page]
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IN WITNESS WHEREOF, Developer and City have executed this Agreement as of the
Reference Date.
ATTEST:
Monika Radeva
City Clerk
APPROVED AS TO FORM
RUTAN & TUCKER, LLP
r
William H. Iluke
City Attorney
"DEVELOPER"
DESERT LUXURY PROPERTIES LLC, a
California limited lia 'lity c pany
By:
Its:,CLAUDIO JESUS BRAVO ERAZO, MANAGER
"CITY"
CITY OF LA QUINTA, a California municipal
co'
By:
Name: Jon M illen
Title: anager
-31-
DOC #2025-0067601 Page 33 of 68
A Notary Public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
ACKNOWLEDGMENT
State of California )
County of 21*1 Li's
On ^& LAakv) ST'L� t,�, before me, �5� l trU -T oh (C,t S�, lu
J (insert name and title of the: officer)
Notary Public, personally appeared C (otu Gl I o le�u-S 6rq w i�rci -2,y
who proved to me on the basis of satisfactory evidence to be the person(-87) whose
name(sj is subscribed to the ;hi$henVmi-r
in instrument and acknowledged to me that
h e1ti executed the same in authorized capacity(ies), and that by
is e+i- signature* on the instrument the person(, or the entity upon behalf of
w ich the personas) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct. s— ern— e— N� Tp&--�1
Lom
Notary Public - (AifornialWITNESS my hand and official seal. RtversideCounty
Commission # 2476271y Comm. Expires Dec 12, 2027 r
Signature �-- -- (Seal)
DOC #2025-0067601 Page 34 of 68
NOTARY ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the
identity of the individual who signed the document, to which this certificate
is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of Riverside
On February 6, 2025 before me, OSCAR MOJICA, Notary Public, personally
appeared JON McMILLEN (as City Manager for the City of La Quinta) who proved
to me on the basis of satisfactory evidence to be the persons} whose names}
is/are subscribed to the 'within instrument, and acknowledged to me that
he/&heA-hW executed the same in his/he4th& authorized capacity(ies), and that
by his/her/ -their signatures} on the instrument the person(s�, or the entity upon
behalf of which the person(c,4 acted, executed the instrument.
I certify under PENALTY Of= PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
f
Signature:
DOCUMENT:
0MYNC.m,I1MOACA
otaryPublic . California =
RNde Countymmission M2461871
Comm. Expires Sep 1, 2027
(notary seal)
Development Agreement (CIA 2024-0001) by and between the City of La Quinta
and Desert Luxury Properties, LLC.
DOC #2025-0067601 Page 35 of 68
m..
LEGAL DESCRIPTION OF PROPERTY
[attached]
698/015610-0183
21730970.2 iolu27i25 EXHIBIT A
DOC #2025-0067601 Page 36 of 68
LEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF LA
QUINTA, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS
DESCRIBED AS FOLLOWS:
LOTS 1 THROUGH 14, INCLUSIVE OF TRACT NO. 31852, IN THE CITY OF LA QUINTA,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN
BOOK 402, PAGES 38 THROUGH 41, INCLUSIVE OF MAPS, RECORDS OF RIVERSIDE
COUNTY, CALIFORNIA.
PARCEL 2:
AN EASEMENT FOR "PRIVATE USE" FOR THE SOLE BENEFIT OF THE LOT
OWNER(S) AND INDICATED AS "PRIVATE STREET" OVER LOT "A" OF TRACT NO.
31852, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 402, PAGES 38 THROUGH 41,
INCLUSIVE OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.
PARCEL 3:
AN EASEMENT FOR "PRIVATE USE" FOR THE SOLE BENEFIT OF THE LOT
OWNER(S) AND INDICATED AS "LANDSCAPE" OVER LOTS "C" THROUGH "F" OF
TRACT NO. 31852, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 402, PAGES 38 THROUGH 41,
INCLUSIVE OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.
PARCEL 4:
AN EASEMENT FOR "PRIVATE USE" FOR THE SOLE BENEFIT OF THE LOT
OWNER(S) AND INDICATED AS "DRAINAGE AND RETENTION PURPOSES" OVER
LOT "G" OF TRACT NO. 31852, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE,
STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 402, PAGES 38
THROUGH 41, INCLUSIVE OF MAPS, RECORDS OF RIVERSIDE COUNTY,
CALIFORNIA.
APN: 777-470-001 THROUGH 777-470-014
698/015610-0183
21730970.2 eovnns EXHIBIT A
DOC #2025-0067601 Page 37 of 68
EXHIBIT `B"
SITE MAP
(Vicinity of Project)
[continued on next page]
6981015610-0183
21730970.2a01n7/25 EXHIBIT B
DOC #2025-0067601 Page 38 of 68
SITE MAP
(Number Lots and Common Area Street)
LOT 4 ; LOT 3 LOT 2 ' LOT 1 ' I
° LOT 5
LOT 13
LOT 14
° LOT 6
LOT 12 LOT 11 �1 z
LOT 7
�= LOT 10
LOT 8 LOT 9 °
' RET. BASIN
SITE MAP
SCALE: 1"=100'
698/015610-0183
21730970.2 a01/27/25 EXHIBIT B
DOC #2025-0067601 Page 39 of 68
EXHIBIT "C"
COMPLIANCE CERTIFICATE
(DESERT LUXURY PROPERTIES LLC DEVELOPMENT AGREEMENT)
The undersigned, Desert Luxury Properties LLC, a California limited liability company
("Developer"), pursuant to that certain Development Agreement dated , 202_,
(the "Development Agreement"), by and between Developer and the City of La Quinta, a
California municipal corporation and charter city (the "City") by its signature below hereby
certifies to City, for City's reliance that:
1. Capitalized terms not defined herein shall have the same meaning as set
forth in the Development Agreement;
2. The undersigned is familiar with the certifications and representations set
forth in this Compliance Certificate;
3. Developer has performed and complied with its obligations under the
Development Agreement to be performed or complied with by it on or prior to the date hereof.
4. [CITY MAY INSERT ANY ADDITIONAL CONDITIONS UNDER THE
DEVELOPMENT AGREEMENT TO BE SATISFIED PRIOR TO ISSUING BUILDING
PERMIT].
IN WITNESS WHEREOF, this Compliance Certificate is executed effective the
day of 5 , under penalty of perjury under- the laws of California.
DESERT LUXURY PROPERTIES LLC, a
California limited liability company
By:
Its:
EXHIBIT C
698/015610-0183
21730970.2 a01/27125 - I -
DOC #2025-0067601 Page 40 of 68
EXHIBIT "D"
PERFORMANCE SCHEDULE
Item of Performance
Start
Completion
TR 31852
Permitting
Grading and Engineering Permits
Apply by
September 30,
2025
Within 90 days of
application
Building Permits
Apply by
September 30,
2025
Within 90 days off
application
Construction of Project Components
Construct off -site electrical improvements required by
IID to provide electrical service to the Tract
September 1, 2026
December 31, 2026
Construct, repair or replace all on -site improvements
(finish grade, walls, street, storm drain, water, sewer, dry
utilities, and landscaping)
October 31, 2025
March 30, 2026
Place monuments
October 31, 2025
June 30, 2026
Begin construction of 14 residential units
October 31, 2025
Completion of construction of 14 residential units
April 30, 2028
Obtain Certificate of Occupancy for 14 residential units
April 30, 2028
July 1, 2028
EXHIBIT D
698/015610-0183
21730970.2 a01/27/25 ' 1'
DOC #2025-0067601 Page 41 of 68
I0._sw __
CHAPTER 3.25 OF LA QUINTA MUNICIPAL CODE AS OF EFFECTIVE DATE
(for reference only)
[to be attached]
698/015610-0183
21730970.2 201r27/25 EXHIBIT E
DOC #2025-0067601 Page 42 of 68
ORDINANCE NO. 619
AN ORDINANCE: OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, ADDING SECTIONS AND
AMENDING SECTIONS OF CHAPTER 3.25 OF THE LA
QUINTA MUNICIPAL CODE RELATED TO SHORT-TERM
VACATION RENTALS
WHEREAS, Chapter 3.25 of the La Quinta Municipal Code (LQMC) relates to
short-term vacation rentals, including permitted uses, short-term vacation rental process
and permitting procedures, requirements, violations, fines, etc.; and
WHEREAS, the City has the authority to regulate residential uses, including short-
term vacation renal uses, operating within the City; and
WHEREAS, the proposed additions and amendments to Chapter 3.25 are
intended to:
1. Section 3.25.030 — Definitions — add definitions for "multi -unit lock -off STVR unit'
and "Subtenant'
At the November 19, 2024, meeting Council adopted Resolution No. 2024-041 approving
updated STVR permit fees and introducing a new "multi -unit lock -off STVR unit' permit
type for which this code amendment would provide a definition.
Additionally, "subtenant' is being defined to explicitly state that any rental activity of a
privately owned dwelling, regardless of whether it was directly rented or sub -rented by
the occupant(s), for 30-days or less constitutes an STVR rental and is subject to the STVR
program requirements and regulations.
The revisions of Section 3.25.070, subsections (B), (M), and (T) ensure consistency of
the existing code with these new definitions.
2. Section 3.25.060 — STVR permit — Application requirements — subsection (C) is
amended to establish eligibility and specific requirements for conversion of existing
rooms within a dwelling into bedrooms to be counted towards the total number of
approved bedrooms under the STVR permit.
3. Miscellaneous minor revisions throughout Chapter 3.25 are proposed to align the
language with existing processes and/or to ensure language clarity and
consistency.
NOW, THEREFORE, the City Council of the City of La Quinta does ordain as
follows:
DOC #2025-0067601 Page 43 of 68
Ordinance No. 619
Chapter 3.25 Short -Term Vacation Rentals — Additions and Amendments
Adopted: December 17, 2024
Page 2 of 3
SECTION 1. Chapter 3.25 shall be amended as written in "Exhibit A" attached
hereto and incorporated herein by this reference.
SECTION 2. EFFECTIVE DATE: This Ordinance shall be in full force and effect
thirty (30) days after its adoption.
SECTION 3. POSTING: The City Clerk shall, within 15 days after passage of this
Ordinance, cause it to be posted in at least three public places designated by resolution
of the City Council, shall certify to the adoption and posting of this Ordinance, and shall
cause this Ordinance and its certification, together with proof of posting to be entered into
the permanent record of Ordinances of the City of La Quinta.
SECTION 4. CORRECTIVE AMENDMENTS: the City Council does hereby grant
the City Clerk the ability to make minor amendments and corrections of typographical or
clerical errors to "Exhibit A" to ensure consistency of all approved text amendments prior
to the publication in the La Quinta Municipal Code.
SECTION 5. SEVERABILITY: If any section, subsection, subdivision, sentence,
clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or
unconstitutional by the decision of any court of competent jurisdiction, such decision shall
not affect the validity of the remaining portions of this Ordinance. The City Council hereby
declares that it would have adopted this Ordinance and each and every section,
subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the
fact that any one or more section, subsections, subdivisions, sentences, clauses,
phrases, or portions thereof be declared unconstitutional.
PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City
Council held this 17th day of December 2024, by the following vote:
AYES: Councilmembers Fitzpatrick, McGarrey, Peria, Sanchez, and Mayor
Evans
NOES: None
ABSENT: None
ABSTAIN: None
LINDA EVANS, Mayor
City of La Quinta, California
DOC #2025-0067601 Page 44 of 68
Ordinance No, 619
Chapter 3.25 Short -Term Vacation Rentals —Additions and Amendments
Adopted: December 17, 2024
Page 3 of 3
ATTEST:
MONIKA R EVA, ity Clerk
City of La Quinta, California
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
DOC #2025-0067601 Page 45 of 68
Ordinance No. 619
Chapter 3.25 Short -Term Vacation Rentals —Additions and Amendments EXHIBIT A
Adopted: December 17, 2024
Title 3 - REVENUE AND FINANCE
Chapter 3.25 SHORT-TERM VACATION RENTALS
Chapter 3.25 SHORT-TERM VACATION RENTALS
3.25.010 Title.
This chapter shall be referred to as the "Short -Term Vacation Rental Regulations."
(Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501
§ 2, 2012)
3.25.020 Purpose.
A. The purpose of this chapter is to establish regulations for the use of privately owned residential dwellings as
short-term vacation rentals that ensure the collection and payment of transient occupancy taxes (TOT) as
provided in Chapter 3.24 of this code, and minimize the negative secondary effects of such use on
surrounding residential neighborhoods.
B. This chapter is not intended to provide any owner of residential property with the right or privilege to violate
any private conditions, covenants and restrictions applicable to the owner's property that may prohibit the
use of such owner's residential property for short-term vacation rental purposes as defined in this chapter.
C. The requirements of this chapter shall be presumed to apply to any residential dwelling that has received a
short-term vacation rental permit. A rebuttable presumption arises that, whenever there is an occupant(s),
paying rent or not, of a residential dwelling that has received a short-term vacation rental permit, the
requirements of this chapter shall apply, including but not limited to any suspension or other modifications
imposed on a short-term vacation rental permit as set forth in this chapter. The city manager or authorized
designee shall have the authority to implement any necessary or appropriate policies and procedures to
apply the rebuttable presumption set forth in this section.
(Ord. No. 607, Exh. A, 12-5-2023; Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1,
2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)
3.25.030 Definitions.
For purposes of this chapter, the following words and phrases shall have the meaning respectively ascribed to
them by this section:
"Advertise, ""advertisement, ""advertising, ""publish, " and "publication" mean any and all means, whether verbal or
written, through any media whatsoever whether in use prior to, at the time of, or after the enactment of the
ordinance adding this definition, used for conveying to any member or members of the public the ability or
availability to rent a short-term vacation rental unit as defined in this section, or used for conveying to any
member or members of the public a notice of an intention to rent a short-term vacation rental unit as defined in
this section. For purposes of this definition, the following media are listed as examples, which are not and shall not
be construed as exhaustive: verbal or written announcements by proclamation or outcry, newspaper
advertisement, magazine advertisement, handbill, written or printed notice, printed or poster display, billboard
display, e-mail or other electronic/digital messaging platform, electronic commerce/commercial Internet websites,
and any and all other electronic media, television, radio, satellite -based, or Internet website.
"Applicable laws, rules and regulations" means any laws, rules, regulations and codes (whether local, state or
federal) pertaining to the use and occupancy of a privately owned dwelling unit as a short-term vacation rental.
La Quinta, California, Municipal Code
(Supp. No. 6, Update 1)
Page 1 of 20
Created: 2024-10-10 15:45:28 [EST]
DOC #2025-0067601 Page 46 of 68
"Applicant" means the owner of the short-term vacation rental unit.
"Authorized agent or representative" means a designated agent or representative who is appointed by the owner
and is also responsible for compliance with this chapter with respect to the short-term vacation rental unit.
"Booking transaction" means any reservation or payment service provided by a person or entity who facilitates a
home -sharing or vacation rental (including short-term vacation rental) transaction between a prospective
occupant and an owner or owner's authorized agent or representative.
"City manager" means that person acting in the capacity of the city manager for the City of La Quinta or authorized
designee.
"Declaration of non-use" means the declaration described in Section 3.25.050.
"Dwelling" has the same meaning as set forth in Section 9.280.030 (or successor provision, as may be amended
from time to time) of this code; "dwelling" does not include any impermanent, transitory, or mobile means of
temporary lodging, including but not limited to mobile homes, recreational vehicles (RVs), car trailers, and camping
tents.
"Estate home" is defined as a single-family detached residence with five (5) or more bedrooms, subject to
evaluation criteria and inspection of the property pursuant to Section 3.25.060(D)(1). An estate home is a sub -type
of short-term vacation rental unit and shall be subject to a general short-term vacation rental permit, primary
residence short-term vacation rental permit, or homeshare short-term vacation rental permit, as applicable,
pursuant to this chapter.
"General short-term vacation rental permit" is a type of short-term vacation rental permit that is neither a
homeshare short-term vacation rental permit nor a primary residence short-term vacation rental permit.
"Good neighbor brochure" means a document prepared by the city that summarizes the general rules of conduct,
consideration, and respect, including, without limitation, provisions of this code and other applicable laws, rules or
regulations pertaining to the use and occupancy of short-term vacation rental units.
"Homeshare short-term vacation rental permit" is a type of short-term vacation rental permit whereby the owner
hosts visitors in the owner's dwelling, for compensation, for periods of thirty (30) consecutive calendar days or
less, while the owner lives on -site and in the dwelling, throughout the visiting occupant's stay.
"Hosting platform" means a person or entity who participates in the home -sharing or vacation rental (including
short-term vacation rental) business by collecting or receiving a fee, directly or indirectly through an agent or
intermediary, for conducting a booking transaction using any medium of facilitation, including but not limited to
the Internet.
"Large lot" means a single "parcel," as defined in Section 9.280.030 (or successor provision, as may be amended
from time to time) of this code, that meets all of the criteria set forth in subsection (A) of Section 3.25.057.
"Local contact person" means the person designated by the owner or the owner's authorized agent or
representative who shall be available twenty-four (24) hours per day, seven (7) days per week with the ability to
respond to the location within thirty (30) minutes for the purpose of: (1) taking remedial action to resolve any
complaints; and (2) responding to complaints regarding the condition, operation, or conduct of occupants of the
short-term vacation rental unit. A designated local contact person must obtain a business license otherwise
required by Sections 3.24.060 and 3.28.020 (or successor provisions, as may be amended from time to time) of this
code.
"Management company" means any individual or entity, whether for profit or nonprofit, and regardless of entity
type, such as a limited liability company, corporation, or sole proprietorship, that is retained by an owner to be the
owner's authorized agent or representative, or is the owner of a short-term vacation rental unit subject to this
chapter, and is engaged in or represents itself to be engaged in the business of managing real property.
(Supp. No. 6, Update 1 )
Page 2 of 20
Created: 2024-10-10 15:45:28 [EST]
DOC #2025-0067601 Page 47 of 68
"Multi -unit lock -off STVR unit" means a specific design and construction of a single-family detached dwelling or
multi -family attached unit(s) dwelling, which construction is designed to allow sections of such dwelling to be
locked -off and separated into individual stand-alone units and meets one (1) or more of the exemptions set forth
in Section 3.25.055. The design and construction of a multi -unit lock -off STVR unit provides at a minimum for:
a) independent living facilities within the space secured by a lock -off door(s),
b) separate access to the exterior area(s) and public right of way without the need to enter or walk through
the primary living area of the dwelling or other lock -off STVR units, and
c) permanent provisions for sleeping and sanitation (bathroom) within the space secured by a lock -off
door(s).
Examples of multi -unit lock -off STVR units include a dwelling that has "hotel- or motel -like" exterior access door(s)
and interior security door(s) that can be secured from either side between two stand-alone units where each
stand-alone unit has the ability to secure itself from the other adjacent unit; or, a two-story dwelling (such as a
two-story duplex) in which the first floor and second floor are separate lock -off STVR units, and the first and
second floors each have their own independent exterior access to the exterior areas and public right of way. A
multi -unit lock -off STVR unit is a sub -type of short-term vacation rental unit and shall be subject to a general short-
term vacation rental permit or primary residence short-term vacation rental permit, as applicable, pursuant to this
chapter.
"Notice of permit modification, suspension or revocation" means the notice the city may issue to an applicant,
authorized agent or representative, local contact person, occupant, owner, responsible person, or any other
person or entity authorized to be issued such notice under this code for a short-term vacation rental unit, upon a
determination by the city of a violation of this chapter or other provisions of this code relating to authorized uses
of property subject to this chapter.
"Occupant" means any person(s) occupying the dwelling at any time.
"Owner" means the person(s) or entity(ies) that hold(s) legal and/or equitable title to the subject short-term
vacation rental unit.
"Primary residence" means a dwelling where an owner spends the majority of the calendar year on the property
used as a short-term vacation rental unit, and the property is identified in the Riverside County assessor's record as
the owner's primary residence.
"Primary residence short-term vacation rental permit" is a type of short-term vacation rental permit whereby the
short-term vacation rental unit is the owner's primary residence, as defined herein in this section.
"Property" means a residential legal lot of record on which a short-term vacation rental unit is located.
"Qualified and certified large lot" has the meaning as set forth in Section 3.25.057.
"Rent" has the same meaning as set forth in Section 3.24.020 (or successor provision, as may be amended from
time to time) of this code.
"Rental agreement" means a written or verbal agreement for use and occupancy of a privately -owned residential
dwelling that has been issued a short-term vacation rental permit, including a dwelling that may have a permit
which has been or is under suspension.
"Responsible person" means the signatory of an agreement for the rental, use and occupancy of a short-term
vacation rental unit, and/or any person(s) occupying the short-term vacation rental unit without a rental
agreement, including the owner(s), owner's authorized agent(s) or representative(s), local contact(s), and their
guests, who shall be an occupant of that short-term vacation rental unit, who is at least twenty-one (21) years of
age, and who is legally responsible for ensuring that all occupants of the short-term vacation rental unit and/or
their guests comply with all applicable laws, rules and regulations pertaining to the use and occupancy of the
subject short-term vacation rental unit.
(Supp. No. 6, Update 1 )
Page 3 of 20
Created: 2e24-10-1e 15:45:28 [EST]
DOC #2025-0067601 Page 48 of 68
"Short-term vacation rental permit" means a permit that permits the use of a privately owned residential dwelling
as a short-term vacation rental unit pursuant to the provisions of this chapter, and which incorporates by
consolidation a transient occupancy permit and a business license otherwise required by Sections 3.24.060 and
3.28.020 (or successor provisions, as may be amended from time to time) of this code. A short-term vacation
rental permit is one (1) of the following types: (1) general short-term vacation rental permit, (2) primary residence
short-term vacation rental permit, or (3) homeshare short-term vacation rental permit, as defined in this section.
"Short-term vacation rental unit" means a privately owned residential dwelling, such as, but not limited to, a
single-family detached or multiple -family attached unit, apartment house, condominium, cooperative apartment,
duplex, or any portion of such dwellings and/or property and/or yard features appurtenant thereto, rented for
occupancy and/or occupied for dwelling, lodging, or any transient use, including but not limited to sleeping
overnight purposes for a period of thirty (30) consecutive calendar days or less, counting portions of calendar days
as full days, by any person(s) with or without a rental agreement.
"STVR" may be used by city officials as an abbreviation for "short-term vacation rental."
"Subtenant" means any person subject to, or claiming to be subject to, an arrangement in which a privately owned
residential dwelling, rented to a lawful occupant, is in turn sub -rented or sub -leased by that lawful occupant to
another person or third party, where said arrangement allows for the use and/or occupancy of the dwelling,
whether or not said arrangement is with or without a rental agreement.
"Suspension" means that short-term vacation rental permit that is suspended pursuant to Section 3.25.090.
"Tenant" or "transient," for purposes of this chapter, means any person, including any Subtenant, who seeks to
rent or who does rent, or who occupies or seeks to occupy, for thirty (30) consecutive calendar days or less, a
short-term vacation rental unit.
(Ord. No. 607, Exh. A, 12-5-2023; Ord. 595 § 1(Exh. A), 6-15-2021; Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 §
1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)
3.25.040 Authorized agent or representative.
A. Except for the completion of an application for a short-term vacation rental permit and business license, the
owner may designate an authorized agent or representative to ensure compliance with the requirements of
this chapter with respect to the short-term vacation rental unit on his, her or their behalf. Nevertheless, the
owner shall not be relieved from any personal responsibility and personal liability for noncompliance with
any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term vacation
rental unit, regardless of whether such noncompliance was committed by the owner's authorized agent or
representative or the occupants of the owner's short-term vacation rental unit or their guests.
B. The owner shall be the applicant for and holder of a short-term vacation rental permit and business license
and shall not authorize an agent or a representative to hold a short-term vacation rental permit and business
license on the owner's behalf. The owner's authorized agent or representative may submit an application on
behalf of the owner pursuant to Section 3.25.060, but the owner's signature is required on all short-term
vacation rental application forms, and the city may prescribe reasonable requirements to verify that an
applicant or purported owner is the owner in fact.
(Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501
§ 2, 2012)
(Supp. No. 6, Update 1)
Page 4 of 20
Created: 2024-10-10 15:45:28 (EST]
DOC #2025-0067601 Page 49 of 68
3.25.050 Short-term vacation rental permit —Required.
A. The owner is required to obtain a short-term vacation rental permit and a business license from the city
before the owner or the owner's authorized agent or representative may rent or advertise a short-term
vacation rental unit. No short-term vacation rental use may occur in the city except in compliance with this
chapter. No property in the city may be issued a short-term vacation rental permit or used as a short-term
vacation rental unit unless the property is a residential dwelling that complies with the requirements of this
chapter.
B. A short-term vacation rental permit and business license shall be valid for one (1) year and renewed on an
annual basis in order to remain valid.
1. A short-term vacation rental permit and business license renewal application should be submitted sixty
(60) calendar days prior to the permit's expiration date, but no later than the permit's expiration date.
Failure to renew a short-term vacation rental permit as prescribed in this section may result in the
short-term vacation rental permit being terminated.
2. A new owner of a property (or a new person and/or new entity that owns or controls a business or
organization or other entity of any kind, such as a limited liability company, which is the owner of a
property) previously operated as a short-term vacation rental unit by the former owner (or by a former
person or entity that owned or controlled the business or organization or other entity of any kind that
continues to be the owner of the property) may not renew the previous owner's short-term vacation
rental permit and shall apply for a new short-term vacation rental permit, pursuant to this chapter, if
the new owner (or new person and/or new entity that owns or controls a business or organization or
other entity of any kind that continues to be the owner of a property) wants to continue to use the
residential dwelling as a short-term vacation rental unit. For purposes of this subsection, a transfer of a
short-term vacation rental unit with a valid short-term vacation rental permit resulting from any of the
following shall not be deemed a transfer to a new owner which would otherwise trigger the
requirement to apply for and obtain a new short-term vacation rental permit:
(a) Transfers to an entity of any kind, such as a limited liability company or a trust, where the
member(s) of the entity or beneficiary(ies) of the trust is(are) the owner(s) of the real property
with a valid short-term vacation rental permit, and the proportionate interest(s) of the owner(s)
are the same for the real property placed in the entity.
(b) Transfers that take effect upon the death of an owner to an heir designated by the owner (by
devise, bequest, or similar transfer upon death) who is any of the following: (i) surviving spouse
or domestic partner; or (ii) surviving sibling related by blood or in law, such as a brother, sister,
brother-in-law, sister-in-law, step -brother, or step -sister; or (iii) surviving parent or grandparent
by blood or in law, such as a mother, father, mother-in-law, father-in-law, step -mother, step-
father, grandmother, grandfather, grandmother -in-law, grandfather -in-law, step -grandmother,
or step -grandfather; (iv) surviving child or grandchild, such as a daughter, son, daughter-in-law,
son-in-law, step -daughter, step -son, granddaughter, grandson, granddaughter -in-law, grandson -
in -law, step -granddaughter, or step -grandson.
(c) Transfers to a trust with the beneficiary(ies) identified as an heir described in subsection B(2)(b)
above.
3. If an owner or an owner's authorized agent or representative, pursuant to all applicable laws,
constructs additional bedrooms to an existing residential dwelling or converts non -bedroom spaces
and areas in an existing residential dwelling into additional bedrooms, the owner or owner's authorized
agent or representative shall notify the city and update the short-term vacation rental unit's online
registration profile upon city approval of the addition or conversion so that the city may confirm that
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such conversion is consistent with this chapter and the code, including all applicable provisions in Title
8 of the code, and reissue the short-term vacation rental permit so that it accurately identifies the
number of approved bedrooms, if the owner wants to continue to use the dwelling as a short-term
vacation rental unit. The city may conduct an on -site inspection of the property to verify compliance
with this chapter and the code. Code compliance inspections may be billed for full cost recovery at one
(1) hour for initial inspection and in thirty (30)-minute increments for each follow-up inspection
pursuant to subsection D. For purposes of this chapter, "reissue" or "reissuance" of a short-term
vacation rental permit means a permit that is reissued by the city, with corrected information, as
applicable, to be valid for the balance of the existing one (1)-year permit and license period.
C. A short-term vacation rental permit and business license shall be valid only for the number of bedrooms in a
residential dwelling equal to the number of bedrooms the city establishes as eligible for listing as a short-
term vacation rental unit. The allowable number of bedrooms shall meet all applicable requirements under
federal, state and city codes, including, but not limited to, the provisions of Section 9.50.100 (or successor
provision, as may be amended from time to time) governing "additional bedrooms" and all applicable
building and construction codes in Title 8 of this code. A short-term vacation rental permit shall not be issued
for, or otherwise authorize the use of, additional bedrooms converted from non -bedroom spaces or areas in
an existing residential dwelling except upon express city approval for the additional bedrooms in compliance
with this code, including Section 9.50.100 (or successor provision, as may be amended from time to time),
and upon approval of an application for a new or renewed short-term vacation rental permit as provided in
subsection B.
D. A short-term vacation rental permit and business license shall not be issued, and may be suspended or
permanently revoked, if the property, or any building, structure, or use or land use on the property is in
violation of this code. The city may conduct an inspection of the property prior to the issuance or renewal of
a short-term vacation rental permit and/or business license. Code compliance inspections may be billed for
full cost recovery at one (1) hour for initial inspection and in thirty (30)-minute increments for each follow-up
inspection. For purposes of this subsection, a code violation exists if, at the time of the submittal of an
application for a new or renewed short-term vacation rental permit or business license, the city has
commenced administrative proceedings by issuing written communication and/or official notice to the
owner or owner's authorized agent or representative of one (1) or more code violations. For purposes of this
chapter, "building," "structure," and "use or land use" have the same meanings as set forth in Section
9.280.030 (or successor provisions, as may be amended from time to time) of this code.
E. A short-term vacation rental permit and business license shall not be issued or renewed, and may be
suspended or permanently revoked, if any portion of transient occupancy tax has not been reported and/or
remitted to the city for the previous calendar year by the applicable deadline for the reporting and/or
remittance of the transient occupancy tax.
A short-term vacation rental permit and business license shall not be issued or renewed, and may be
suspended or permanently revoked, if the residential dwelling to be used as a short-term rental unit lacks
adequate on -site parking. For purposes of this subsection, "adequate on -site parking" shall be determined by
dividing the total number of occupants commensurate with the approved number of bedrooms as provided
in the table under Section 3.25.070 by four (4), such that the ratio of the maximum allowed number of
overnight occupants to on -site parking spots does not exceed four to one (4:1). For example, a residential
dwelling with five (5) bedrooms may permissibly host a total number of ten (10) to twelve (12) overnight
occupants and therefore requires three (3) on -site parking spots. On -site parking shall be on an approved
driveway, garage, and/or carport areas only in accordance with Section 3.25.070(R), and no more than two
(2) street parking spots may count towards the number of on -site parking spots necessary to meet the
"adequate on -site parking" requirement under this subsection.
G. An owner or owner's authorized agent or representative who claims not to be operating a short-term
vacation rental unit or who has obtained a valid short-term vacation rental permit and business license
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pursuant to this chapter, may voluntarily opt -out of the requirements of this chapter, prior to the issuance or
expiration of a short-term vacation rental permit and business license that are applicable to the short-term
vacation rental unit, only upon the owner, the owner's authorized agent or representative and/or the
owner's designated local contact person submitting a written request or executing, under penalty of perjury,
a declaration of non-use as a short-term vacation rental unit, in a form prescribed by the city (for purposes of
this chapter, a "declaration of non-use"). Upon the receipt and filing with the city a written request or a fully
executed declaration of non-use, the short-term vacation rental permit and business license shall be closed
and the owner or owner's authorized agent or representative shall be released from complying with this
chapter as long as the property is not used as a short-term vacation rental unit. Use of the property as a
short-term vacation unit after the city's receipt and filing of a written request or a declaration of non-use is a
violation of this chapter. If, after a written notice or a declaration of non-use has been received and filed with
the city, the owner or owner's authorized agent or representative wants to use that property as a short-term
vacation rental unit, the owner may apply for a new short-term vacation rental permit and business license
only after twelve (12) consecutive months have elapsed from the date of the city's receipt of the written
notice or the declaration of non-use, and the owner and owner's authorized agent or representative
otherwise shall fully comply with the requirements of this chapter and the code.
(Ord. No. 607, Exh. A, 12-5-2023; Ord. 595 § 1(Exh. A), 6-15-2021; Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 §
1(Exh. A), 12-15-2020; Ord. 577 § 1, 2019; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012; Ord. 611, §
1(Exh. A), 3-19-2024)
3.25.055 Non -issuance of new short-term vacation rental permits; periodic council review.
A. Commencing May 20, 2021, which is the effective date of Ordinance No. 596 which added this section, there
shall be no processing of, or issuance for, any applications for a new short-term vacation rental permit,
required by this chapter to use or operate a short-term vacation rental unit in the city, except applications
for a new a short-term vacation rental permit covering a short-term vacation rental unit that meets one (1)
or more of the following:
1. A residential dwelling within a residential project located in the CT Tourist Commercial District zone, as
defined in Section 9.70.070 (or successor section) of this code and depicted in the city's official zoning
map.
2. A residential dwelling within a residential project located in the VC Village Commercial District zone, as
defined in Section 9.70.100 (or successor section) of this code and depicted in the city's official zoning
map.
3. A residential dwelling within a residential project subject to a development agreement with the city, or
subject to a condition of approval(s) attached to any entitlement approved by the city (including but
not limited to a specific plan, subdivision map, or site development permit), pursuant to which short-
term vacation rentals are a permitted use, and the residential dwelling's use as a short-term vacation
rental is authorized under a declaration of covenants, conditions, and restrictions (CC&Rs), for the
residential project.
4. A residential dwelling within the area covered by the SilverRock Resort Specific Plan or the Estates at
Griffin Lake Specific Plan.
5. A residential dwelling is located adjacent to the CTTourist Commercial District zone, as defined in
Section 9.70.070 and depicted in the city's official zoning map, and within the following boundaries;
west of Avenida Obregon, south of the Avenida Fernando, east of Calle Mazatlan, and north of the
driveway access between Calle Mazatlan and Avenida Obregon that serves as a southern boundary for
the La Quinta Tennis Villas/Tennis Condos area identified on page 25 of the La Quinta Resort Specific
Plan, 121 E—Amendment 5 (as may be subsequently amended from time to time). For purposes of this
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subsection, "adjacent to" means across the street from or accessible by a driveway or service road
designed to provide access to area(s) within the CT Tourist Commercial District zone.
B. The city manager or authorized designee shall have the authority to implement policies or procedures to
review and verify whether an application for a new short-term vacation rental permit meets the criteria set
forth in this section.
C. This section shall not apply to applications for a homeshare short-term vacation rental permit or applications
for a renewal of an existing short-term vacation rental permit and business license, submitted in compliance
with this chapter, including when the short-term vacation rental permit is under suspension during the time
for processing the renewal application. Applications for renewals must be submitted as prescribed by this
chapter. Any short-term vacation rental unit, covered by a permit that is subject to an application for
renewal, which is under temporary suspension in violation of this chapter or any other provisions of this
code, shall not become permitted to use the dwelling as a short-term vacation rental unit until all violations
that led to the temporary suspension have been remedied and the suspension has expired. Any revoked
short-term vacation rental permit shall not be eligible for renewal or new short-term vacation rental permit.
D. The city council shall periodically review the impacts or effects, if any, caused by the non -issuance of new
short-term vacation rental permits set forth in this section. The city manager or authorized designee shall
prepare a report assessing impacts or effects, if any, for the council to review at a regular or special meeting.
E. Commencing on January 4, 2024, which is the effective date of Ordinance No. 607 adding this subsection (E),
this section may not be amended by the city council, except by no less than four -fifths (%) majority vote of
the city council.
(Ord. No. 607, Exh. A, 12-5-2023; Ord. 596 § 2, 2021; Ord. 595 § 1(Exh. A), 6-15-2021; Ord. 591 § 1(Exh. A), 4-20-
2021)
3.25.057 Large Lots; exemption from non -issuance of new short-term vacation rental permits.
A. If none of the exemptions in subsection (A) or (C) of Section 3.25.055 of this code applies, the owner of a
large lot may voluntarily submit to the city an application and request to be exempted from the non -issuance
of new short-term vacation rental permits set forth in Section 3.25.055 only if, at the time of submittal of an
application for exemption pursuant to this section, all of the following criteria are met:
1. The "lot area," as defined in Section 9.280.030 (or successor provision, as may be amended from time
to time) of this code, is comprised of a single parcel that is no less than 25,000 square feet;
2. The single parcel has at least one (1) existing dwelling, as defined in this chapter, in use or available for
use;
3. The single parcel is not, nor will the single parcel ever be for the duration of the period of any qualified
exemption under this section, subject to a subdivision under the subdivision map act in Division 2
(commencing with Section 64410) of Title 7 of the California Government Code or under Title 13 of this
code (or successor provisions, as may be amended from time to time);
4. The single parcel is not, nor will the single parcel ever be for the duration of the period of any qualified
exemption under this section, subject to a reduction in the square footage of the lot area by lot line
adjustment, parcel merger, or other action that creates a legal parcel under the subdivision map act in
Division 2 (commencing with Section 64410) of Title 7 of the California Government Code or under Title
13 of this code (or successor provisions, as may be amended from time to time);
5. If the single parcel is within a residential project governed by a homeowners association, the use of the
single parcel as a short-term vacation rental unit is authorized under the homeowners association's
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covenants, conditions, and restrictions (CC&Rs) and any other applicable governing documents for the
residential project governed by the homeowners association;
6. Use of the single parcel as a short-term vacation rental unit is not prohibited or otherwise inconsistent
with any recorded instruments governing the use of the single parcel; and
The single parcel has adequate on -site parking pursuant to this chapter for use as a short-term vacation
rental unit.
B. Subject to the application and review provisions in this section, if the city determines the single parcel meets
the criteria of a large lot to be exempted from the non -issuance of new short-term vacation rental permits
that otherwise applies pursuant to Section 3.25.055, the provisions regarding the non -issuance of new short-
term vacation rental permits in Section 3.25.055 shall no longer apply to, or be applicable as long as the
single parcel meets the criteria in this section, to the large lot upon certification by the city that the criteria
set forth in this section have been met.
1. Upon certification by the city that the criteria in this section have been met, then the single parcel shall
be identified as a "qualified and certified large lot" for purposes of this section and this chapter.
2. Upon certification by the city of the single parcel as a qualified and certified large lot pursuant to this
section, an owner of a residential dwelling within a qualified and certified large lot may apply for a new
short-term vacation rental permit pursuant to this chapter and shall be subject to the same
requirements of any other short-term vacation rental permit application, use, and operation governed
by this chapter.
3. The city may impose any necessary or proper conditions of approval with the certification of a single
parcel as a large lot pursuant to this section, including conditions that would terminate the exemption
from compliance with Section 3.25.055 if the large lot is subdivided or used in violation of the
requirements of this section. Additionally, the city may require as a condition of approval that the
owner of the qualified and certified large lot execute a land use covenant, in a form approved by the
city and recorded in the county recorder's office against the single parcel, memorializing the terms and
conditions applicable to the large lot for use as a short-term vacation rental unit.
4. Any owner of real property that is no longer or is not in compliance with the criteria in this section to
be a qualified and certified large lot shall have no right or authority to advertise, use, or operate said
real property as a short-term vacation rental unit. Any short-term vacation rental permit (either new or
renewal permit) issued by the city in reliance of said real property having previously been located
within a qualified and certified large lot shall no longer be valid upon said real property no longer being
in compliance with this section.
5. An owner of a qualified and certified large lot who is the successor in interest to the owner who
applied for and received the certification of the single parcel as a qualified and certified large lot does
not need to re -apply for an exemption from Section 3.25.055 under this chapter as long as the single
parcel determined to be the qualified and certified large lot remains in compliance with this section.
6. It is the expressed intent of the city council that an application for exemption from Section 3.25.055,
submitted to the city pursuant to this section, need only occur one time as long as the current owner of
a qualified and certified large lot remains in compliance with this section whenever a new or renewal
application for a short-term vacation rental permit is submitted to the city and for the duration of the
term of the issued short-term vacation rental permit. It is also the expressed intent of the city council
that the current owner of real property that may have previously been a qualified and certified large
lot may be required by the city to submit a new application for exemption from Section 3.25.055,
pursuant to this section, if the real property no longer meets the criteria set forth in this section.
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C. Any application submitted pursuant to this section shall be subject to any fees established by resolution of
the city council and shall identify, by addresses, assessor's parcel number (APN), and any other identifying
information requested by the city, the real property purporting to be a large lot.
An application submitted pursuant to this section shall be reviewed and considered as follows:
1. Submittal of Application. An application for a finding of exemption under this section and certification
as a large lot shall be completed in a form approved by the city manager or authorized designee.
Applications shall be filed with the city clerk, who shall forward to the planning department together
with all maps, plans, documents and other materials required by the city clerk or director of the
planning department.
Determination of Completeness. The city clerk's office and planning department shall coordinate with
the applicant to make a determination whether the application is complete or incomplete. Upon the
determination that the application is complete by the city clerk, the city clerk shall schedule review and
consideration of the complete application by the city council.
Public Hearing and Consideration of the Application. The city council shall hold a public hearing on the
application, and the city council shall be the decision -making authority for the application. The public
hearing shall be set within ninety (90) days from the determination by the city clerk of a complete
application. The public hearing shall be noticed in accordance with Section 9.200.100(D) (or successor
provisions, as may be amended from time to time) of this code. At the public hearing, the city council
shall receive written comments and any other evidence or testimony relating to the application. At the
public hearing, the city council may take action on the application, or continue the application to a
specified date.
4. Required Findings. No application presented to the city council pursuant to this section may be
approved or conditionally approved unless all of the following findings and requirements are met:
a. The single parcel subject to the application is in a residential zone, is a legal non -conforming use,
or is in a zone that otherwise would allow for residential uses.
b. The applicant is the owner of the single parcel subject to the application.
C. The exemption under this section is required for the applicant as owner to be able to apply for a
short-term vacation rental permit and use a dwelling or dwellings on the parcel as a short-term
vacation rental unit under this chapter.
d. Approval of the application will not create conditions materially detrimental to the public health,
safety and general welfare or injurious to or incompatible with other properties or land uses in
the vicinity. Included with this assessment shall be whether approval of the application and
issuance of a certification that the single parcel is a qualified and certified large lot results in
multiple exemptions under this section being concentrated in one geographic location of the city
in a manner than may be incompatible with other properties or land uses in the vicinity.
5. Decision. The city council shall approve, approve with conditions, or deny the application. With the
concurrence of the applicant, an application may be withdrawn prior to the issuance of a decision by
the city council. The decision on an application, including any required findings and any other reasons
that serve to explain the determination plus all conditions of approval, shall be in writing. An approval
or approval with conditions from the city council shall be adopted by resolution and accompanied with
the certification from the city that the single parcel subject to the application meets the criteria for a
qualified and certified large lot.
6. Appeal. The decision of the city council shall be the final decision of the city on the application.
E. Subject to the review and approval provisions in this section, the city manager or authorized designee shall
have the authority to implement policies or procedures to review and verify whether an application and
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request to be exempted from Section 3.25.055 meets the criteria set forth in this section and any other
criteria reasonably necessary for verification of such application and request.
F. The city council may periodically review the impacts or effects, if any, caused by this section concurrently
with its periodic review provided for in subsection (D) of Section 3.25.055.
(Ord. No. 607, Exh. A, 12-5-2023)
3.25.060 Short-term vacation rental permit —Application requirements.
A. The owner or the owner's authorized agent or representative must submit the information required on the
city's short-term vacation rental permit application form provided by the city, which may include any or all of
the following:
1. The name, address, and telephone number of the owner of the subject short-term vacation rental unit;
2. The name, address, and telephone number of the owner's authorized agent or representative, if any;
3. The name and twenty-four (24)-hour telephone number of the local contact person;
4. Reserved;
5. The number of bedrooms shall not exceed the number of permitted bedrooms. The allowable number
of bedrooms shall meet all applicable building and construction requirements under federal, state and
city codes, including, but not limited to, the provisions of Section 9.50.100 (or successor provision, as
may be amended from time to time) governing "additional bedrooms" and all applicable building and
construction codes in Title 8 of this code;
6. Acknowledgement of receipt of all electronically distributed short-term vacation rental information
from the city, including any good guest brochure;
7. The owner or owner's authorized agent or representative who has applied for a short-term vacation
rental permit shall provide the city with written authorization that issuance of a short-term vacation
rental permit pursuant to this chapter is not inconsistent with any recorded or unrecorded restrictive
covenant, document, or other policy of a homeowner association (HOA) or other person or entity
which has governing authority over the property on which a short-term vacation rental unit will be
operated; in furtherance of this requirement, there shall be a rebuttable presumption that an owner or
owner's authorized agent or representative does not have written authorization for the issuance of a
short-term vacation rental permit if a HOA or other person or entity which has governing authority
over the property has submitted to the city a duly -authorized official writing, which informs the city
that short-term vacation rentals of thirty (30) consecutive days or less are not permitted on the
property applying for a short-term vacation rental permit; and
8. Such other information as the city manager or authorized designee deems reasonably necessary to
administer this chapter.
B. The short-term vacation rental permit application shall be accompanied by an application fee as set by
resolution of the city council. A short-term vacation rental permit and business license shall not be issued or
renewed while any check or other payment method cannot be processed for insufficient funds.
C. The city may determine the maximum number of bedrooms in a residential dwelling with multiple bedrooms
eligible for use as a short-term vacation rental unit upon issuance of a short-term vacation rental permit.
When determining the maximum number of bedrooms eligible for use as short-term vacation rentals, the
city shall consider the public health, safety, and welfare, shall comply with building and residential codes,
and may rely on public records relating to planned and approved living space within the residential dwellings,
including, but not limited to, title insurance reports, official county records, and tax assessor records. An
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owner and/or owner's authorized agent or representative may not advertise availability for occupancy of a
short-term vacation rental unit for more than the approved number of bedrooms listed in the short-term
vacation rental permit issued by the city pursuant to this chapter. In addition to any other rights and
remedies available to the city under this chapter, the first violation for failing to advertise the approved
number of bedrooms may be subject to a fine by an administrative citation, and a second or subsequent
violation for failing to advertise the approved number of bedrooms may result in a revocation (which may
include permanent revocation) of the short-term vacation rental permit and/or any affiliated licenses or
permits pursuant to the provisions set forth in Section 3.25.090. An owner of a residential dwelling on a lot
may apply for additional bedrooms to be included in the maximum number of bedrooms eligible for use
under a short-term vacation rental permit, subject to and only if all of the following criteria are met:
1. Only existing rooms within a dwelling may be eligible for repurposing for use as an additional
bedroom.
2. Use of an existing room as an additional bedroom shall comply with all building and residential codes,
including but not limited to all applicable codes in Title 8 of this code.
3. Any use of an existing room as an additional bedroom shall result in no less than 1,000 square feet of
the remainder of the indoor habitable space within the dwelling to be used for living, eating, cooking,
and sanitation purposes. "Indoor habitable space" for purposes of this Subsection 3.25.060(C)(3)
includes, for example, kitchen, bathroom, dining room, living room, den, home -office, and hallway
areas, but excludes, for example, closets, garage, storage, attic, basement, and other areas not usually
and regularly occupied by persons in the dwelling.
4. The owner of the dwelling shall have the obligation to ensure the use of an existing room as an
additional bedroom pursuant to this Subsection 3.25.060(C) is neither inconsistent with nor a violation
of any legal or contractual obligations of the owner as the property owner of the dwelling, including
but not limited to any residential/home insurance policies, title insurance policies, or tax assessment
records. Nothing in this Subsection 3.25.060(C) does, or may be interpreted as, affecting or authorizing
a use of an existing room as an additional bedroom under any other law or regulation, except for
purposes of including such additional bedroom in the maximum number of bedrooms eligible for use
under a short-term vacation rental permit pursuant to this chapter.
D. Short-term vacation rental permit applications shall comply with the following:
1. A short-term vacation rental permit application for an estate home shall be subject to evaluation and
inspection of the property to ensure that the short-term vacation rental unit will not create conditions
materially detrimental to the public health, safety and general welfare or injurious to or incompatible
with other properties in the vicinity. Evaluation and inspection shall include, but not be limited to:
verification of the number of bedrooms, active noise monitor, adequate on -site parking spaces,
availability of nearby street parking, physical distance of an estate home from adjacent properties,
such as location and distance of outdoor gathering spaces, pools, and other living spaces from
neighboring properties. The city manager, or designee, shall have the authority to impose additional
conditions on the use of an estate home as a short-term vacation rental unit to ensure that any
potential secondary effects unique to the subject short-term vacation rental unit are avoided or
adequately mitigated.
2. A short-term vacation rental permit application may be denied if the applicant has failed to comply
with application requirements in this chapter, or has had a prior short-term vacation rental permit for
the same unit revoked within the past twelve (12) calendar months. In addition, upon adoption of a
resolution pursuant to subsection H, the city may limit the number of short-term vacation rental units
in a given geographic area based on a high concentration of short-term vacation rental units. The city
shall maintain a waiting list of short-term vacation rental permit applications for such geographic areas
where the city determines, based on substantial evidence after a noticed public hearing, there is a
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higher than average concentration of short-term vacation rental units that either affects the public
health, safety, and welfare or significantly negatively impacts the character and standard of living in a
neighborhood within that geographic area, or both.
E. Short-term vacation rental permit applications may take up to, and the city shall have, thirty (30) calendar
days to process. Nothing in this subsection or chapter shall be construed as requiring the city to issue or deny
a short-term vacation rental permit in less than thirty (30) calendar days, as no permit shall be issued until
such time as application review is complete. No short-term vacation rental use may occur in the city without
a valid short-term vacation rental permit issued in accordance with this chapter.
F. Upon a change of ownership of a property (or upon a new person and/or new entity owning or controlling a
business or organization or other entity of any kind, such as a limited liability company, which is the owner of
a property) licensed to operate as a short-term vacation rental unit, the owner or owner's authorized agent
or representative shall notify the city of such change immediately. The existing short-term vacation rental
permit shall be terminated, unless subject to Section 3.25.050(B)(2), and the property must cease operating
as a short-term vacation rental immediately. Failure to comply may result in a fine of one thousand dollars
($1,000.00) per day for a continuing violation of this subsection F.
G. Immediately upon a change of an owner's authorized agent or representative, local contact, or any other
change pertaining to the information contained in the short-term vacation rental application, the owner or
owner's authorized agent or representative shall update the short-term vacation rental unit's online
registration profile used by the city for the implementation of the short-term vacation rental regulations.
Failure to immediately update this information may result in a violation of this chapter, including but not
limited to a suspension or revocation of a short-term vacation rental permit, until all information is updated.
H. The city manager or authorized designee may prepare, for adoption by resolution by the city council, a
review procedure and criteria to evaluate the limitation for issuance of STVR permits and/or STVR
applications for geographic areas within the city as set forth in subsection D.
(Ord. No. 607, Exh. A, 12-5-2023; Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1,
2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)
3.25.065 Short-term vacation rental permit —Grounds for denial.
A. In addition to any other grounds provided in this chapter, an application (including renewal application) for a
short-term vacation rental permit may be denied if use of the short-term vacation rental unit has been, will
be, or is apt to become any one (1) or more of the following.
1. Prohibited by any local ordinance or by any state or federal law, statute, rule or regulation;
2. A public nuisance;
3. In any way detrimental to the public interest;
4. Prohibited by zoning laws and ordinances.
B. An application (including renewal application) for a short-term vacation rental permit may also be denied on
the grounds that the applicant has knowingly made a false statement in a material matter either in
his/her/their application or in his/her/their testimony before the city manager or other body hearing such
testimony.
C. This section is intended to be, and shall be construed as being, in alignment with the grounds for denial of a
business license set forth in Section 3.28.080 (or successor section) of this code.
(Ord. 591 § 1(Exh. A), 4-20-2021)
(Supp. No. 6, Update 1)
Page 13 of 20
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DOC #2025-0067601 Page 58 of 68
3.25.070 Operational requirements and standard conditions.
A. The owner and/or owner's authorized agent or representative shall use reasonably prudent business
practices to ensure that the short-term vacation rental unit is used in a manner that complies with all
applicable laws, rules and regulations pertaining to the use and occupancy of the subject short-term vacation
rental unit.
1. An estate home may be established for short-term vacation rental use subject to evaluation and
inspection of the property pursuant to Section 3.25.060(D)(1).
2. An estate home established for short-term vacation rental use is required to be equipped with a noise
monitoring device(s) that is operable at all times.
B. The responsible person(s) shall be an occupant(s) of the short-term vacation rental unit for which he, she or
they signed a rental agreement for such rental, use and occupancy, and/or any person(s) occupying the
short-term vacation rental unit without a rental agreement, including the owner, owner's authorized agent
or representative, local contact(s) and their guests. The responsible person(s) shall not sub -rent or sub -lease
the short-term vacation rental unit to a Subtenant unless said sub -rental or sub -leasing is in full compliance
with this chapter. No non -permanent improvements to the property, such as tents, trailers, or other mobile
units, may be used as short-term vacation rentals. The total number of occupants, including the responsible
person(s) and children regardless of age, allowed to occupy any given short-term vacation rental unit may be
within the ranges set forth in the table below. By the issuance of a short-term vacation rental permit, the city
or its authorized designees, including police, shall have the right to conduct a count of all persons occupying
the short-term vacation rental unit in response to a complaint or any other legal grounds to conduct an
inspection resulting from the use of the short-term vacation rental unit, and the failure to allow the city or its
authorized designees the ability to conduct such a count may constitute a violation of this chapter. The city
council may by resolution further restrict occupancy levels provided those restrictions are within the
occupancy ranges set forth below.
Number of
Bedrooms
Total of
Overnight*
Occupants
Total Daytime** Occupants
(Including Number of
Overnight Occupants)
0—Studio
2
2-8
1
2-4
2-8
2
4-6
4-8
3
6-8
6-12
4
8-10
8-16
5
10-12
10-18
6
12-14
12-20
7
14
14-20
8
16
16-22
9
18
18-24
*Overnight (10:01 p.m.-6:59 a.m.)
**Daytime (7:00 a.m.-10:00 p.m.)
C. The person(s) listed as the local contact person in the short-term vacation rental unit's online registration
profile shall be available twenty-four (24) hours per day, seven (7) days per week, with the ability to respond
to the location within thirty (30) minutes to complaints regarding the condition, operation, or conduct of
occupants of the short-term vacation rental unit or their guests. The person(s) listed as a local contact person
shall be able to respond personally to the location, or to contact the owner or the owner's authorized agent
(Supp. No. 6, Update 1)
Page 14 of 20
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DOC #2025-0067601 Page 59 of 68
or representative to respond personally to the location, within thirty (30) minutes of notification or
attempted notification by the city or its authorized short-term vacation rental designated hotline service
provider. No provision in this section shall obligate the city or its authorized short-term vacation rental
designated hotline service provider to attempt to contact any person or entity other than the person(s) listed
as the local contact person.
D. The owner, the owner's authorized agent or representative and/or the owner's designated local contact
person shall use reasonably prudent business practices to ensure that the occupants and/or guests of the
short-term vacation rental unit do not create unreasonable or unlawful noise or disturbances, engage in
disorderly conduct, or violate any applicable law, rule or regulation pertaining to the use and occupancy of
the subject short-term vacation rental unit.
Occupants of the short-term vacation rental unit shall comply with the standards and regulations for
allowable noise at the property in accordance with Sections 9.100.210 and 11.08.040 (or successor provision,
as may be amended from time to time) of this code. No radio receiver, musical instrument, phonograph,
compact disk player, loudspeaker, karaoke machine, sound amplifier, or any machine, device or equipment
that produces or reproduces any sound shall be used outside or be audible from the outside of any short-
term vacation rental unit between the hours of 10:00 p.m. and 7:00 a.m. Pacific Standard Time. Observations
of noise related violations shall be made by the city or its authorized designee from any location at which a
city official or authorized designee may lawfully be, including but not limited to any public right-of-way, any
city -owned public property, and any private property to which the city or its authorized designee has been
granted access.
F. Prior to occupancy of a short-term vacation rental unit, the owner or the owner's authorized agent or
representative shall:
1. Obtain the contact information of the responsible person;
2. Provide copies of all electronically distributed short-term vacation rental information from the city,
including any good guest brochure to the responsible person and post in a conspicuous location within
the short-term vacation rental unit, in a manner that allows for the information to be viewed in its
entirety; and require such responsible person to execute a formal acknowledgement that he/she/they
is/are legally responsible for compliance by all occupants of the short-term vacation rental unit and
their guests with all applicable laws, rules and regulations pertaining to the use and occupancy of the
short-term vacation rental unit. This information shall be maintained by the owner or the owner's
authorized agent or representative for a period of three (3) years and be made readily available upon
request of any officer of the city responsible for the enforcement of any provision of this code or any
other applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation
rental unit.
G. The owner, the owner's authorized agent or representative and/or the owner's designated local contact
person shall, upon notification or attempted notification that the responsible person and/or any occupant
and/or guest of the short-term vacation rental unit has created unreasonable or unlawful noise or
disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or
regulation pertaining to the use and occupancy of the subject short-term vacation rental unit, promptly
respond within thirty (30) minutes to immediately halt and prevent a recurrence of such conduct by the
responsible person and/or any occupants and/or guests. Failure of the owner, the owner's authorized agent
or representative and/or the owner's designated local contact person to respond to calls or complaints
regarding the condition, operation, or conduct of occupants and/or guests of the short-term vacation rental
unit within thirty (30) minutes, shall be subject to all administrative, legal and equitable remedies available
to the city.
H. The owner of a short-term vacation rental unit that has a valid homeshare short-term vacation rental permit
shall occupy the dwelling during the transient stay. A violation of any provision of this chapter, this code, or
Created: 2024-10-10 15:45:28 (EST]
(Supp. No. 6, Update 1 )
Page 15 of 20
DOC #2025-0067601 Page 60 of 68
any other applicable federal, state, or local laws or codes, by the owner, owner's authorized agent or
representative and/or the owner's designated local contact person shall be subject to all administrative, legal
and equitable remedies available to the city.
I. Trash and refuse shall not be left or stored within public view, except in proper containers for the purpose of
collection by the city's authorized waste hauler on scheduled trash collection days. The owner, the owner's
authorized agent or representative shall use reasonably prudent business practices to ensure compliance
with all the provisions of Chapter 6.04 (Solid Waste Collection and Disposal) (or successor provision, as may
be amended from time to time) of this code.
J. Signs may be posted on the premises to advertise the availability of the short-term vacation rental unit as
provided for in Chapter 9.160 (Signs) (or successor provision, as may be amended from time to time) of this
code.
K. The owner, the owner's authorized agent or representative and/or the owner's designated local contact
person shall post a copy of the short-term vacation rental permit and a copy of the good guest brochure in a
conspicuous place within the short-term vacation rental unit, and a copy of the good guest brochure shall be
provided to each occupant of the subject short-term vacation rental unit.
L. Unless otherwise provided in this chapter, the owner and/or the owner's authorized agent or representative
shall comply with all provisions of Chapter 3.24 concerning transient occupancy taxes, including, but not
limited to, submission of a monthly return in accordance with Section 3.24.080 (or successor provisions, as
may be amended from time to time) of this code, which shall be filed monthly even if the short-term
vacation rental unit was not rented during each such month.
M. Guesthouses, detached from the primary residential dwelling on the property, or the primary residential
dwelling on the property, may be rented pursuant to this chapter as long as the guesthouse and the primary
residential dwelling are rented to one (1) party; provided, however, that this Subsection (M) does not apply
to multi -unit lock -off STVR units.
N. The owner and/or the owner's authorized agent or representative shall post the number of authorized
bedrooms and the current short-term vacation rental permit number at the beginning or top of any
advertisement that promotes the availability or existence of a short-term vacation rental unit; provided,
however, this requirement may be satisfied if a hosting platform used by the owner and/or owner's
authorized agent or representative provides a designated field(s) to post the number of authorized
bedrooms and the current short-term vacation rental permit number for the short-term vacation rental unit.
In the instance of audio -only advertising of the same, the short-term vacation rental permit number and the
number of authorized bedrooms shall be read as part of the advertisement.
0. The owner and/or owner's authorized agent or representative shall operate a short-term vacation rental unit
in compliance with any other permits or licenses that apply to the property, including, but not limited to, any
permit or license needed to operate a special event pursuant to Section 9,60.170 (or successor provision, as
may be amended from time to time) of this code. The city may limit the number of special event permits
issued per year on residential dwellings pursuant to Section 9.60.170 (or successor provision, as may be
amended from time to time).
The city manager, or designee, shall have the authority to impose additional conditions on the use of any
given short-term vacation rental unit to ensure that any potential secondary effects unique to the subject
short-term vacation rental unit are avoided or adequately mitigated, including, but not limited to, a
mitigating condition that would require the installation of a noise monitoring device to keep time -stamped
noise level data from the property that will be made available to the city upon city's reasonable request.
Q. The standard conditions set forth herein may be modified by the city manager, or designee, upon request of
the owner or the owner's authorized agent or representative based on site -specific circumstances for the
purpose of allowing reasonable accommodation of a short-term vacation rental unit. All requests must be in
(Supp. No. 6, Update 1 )
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DOC #2025-0067601 Page 61 of 68
writing and shall identify how the strict application of the standard conditions creates an unreasonable
hardship to a property such that, if the requirement is not modified, reasonable use of the property as a
short-term vacation rental unit would not be allowed. Any hardships identified must relate to physical
constraints to the subject site and shall not be self-induced or economic. Any modifications of the standard
conditions shall not further exacerbate an already existing problem.
R. On -site parking shall be on an approved driveway, garage, and/or carport areas only; this section does not
impose restrictions on public street parking regulations. Recreational vehicles may be parked in accordance
with the provisions set forth in Section 9.60.130 (or successor provision, as may be amended from time to
time) of this code.
S. No "apartment," "apartment building," or "apartment project," as defined in Section 9.280.030 (or successor
provision, as may be amended from time to time) of this code shall be eligible to apply for or obtain a short-
term vacation rental permit.
A privately owned residential dwelling, regardless of whether it is permitted or not as a short-term vacation
rental unit, rented for a period of thirty one (31) consecutive calendar days or more, counting portions of
calendar days as full days, by any person(s), with or without a rental agreement, that is subsequently sub -
rented or sub -leased to a Subtenant for a period of thirty (30) consecutive days or less, counting portions of
calendar days as full days, constitutes use of the privately owned residential dwelling as a short-term
vacation rental unit and is subject to the provisions of this chapter. This Subsection (T) is declaratory of
existing law under this chapter.
(Ord. No. 608, § 1, 12-5-2023; Ord. No. 607, Exh. A, 12-5-2023; Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh.
A), 12-15-2020; Ord. 577 § 1, 2019; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)
3.25.080 Recordkeeping and hosting platform duties.
A. The owner or the owner's authorized agent or representative shall maintain for a period of three (3) years,
records in such form as the tax administrator (as defined in Chapter 3.24) may require to determine the
amount of transient occupancy tax owed to the city. The tax administrator shall have the right to inspect
such records at all reasonable times, which may be subject to the subpoena by the tax administrator
pursuant to Section 3.24.140 (Records) (Transient Occupancy Tax) (or successor provisions, as may be
amended from time to time) of this code.
B. Hosting platforms shall not complete any booking transaction for any residential dwelling or other property
purporting to be a short-term vacation rental unit in the city unless the dwelling or property has a current
and valid short-term vacation rental permit issued pursuant to this chapter, which is not under suspension,
for the dates and times proposed as part of the booking transaction.
1. The city shall maintain an online registry of active and suspended short-term vacation rental permits,
which hosting platforms may reference and rely upon for purposes of complying with subsection B. If a
residential dwelling or other property purporting to be a short-term vacation rental unit matches with
an address, permit number, and/or current and valid permit dates (not under suspension) set forth in
the city's online registry, the hosting platforms may presume that the dwelling or other property has a
current and valid short-term vacation rental permit.
2. The provisions of this subsection B shall be interpreted in accordance with otherwise applicable state
and federal law(s) and will not apply if determined by the city to be in violation of, or preempted by,
any such law(s).
(Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501
§ 2, 2012)
(Supp. No. 6, Update 1 )
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DOC #2025-0067601 Page 62 of 68
3.25.090 Violations.
A. Additional conditions. A violation of any provision of this chapter or this code by any applicant, occupant,
responsible person, local contact person, owner or owner's authorized agent or representative (including a
management company), shall authorize the city manager, or designee, to impose additional conditions on
the use of any given short-term vacation rental unit to ensure that any potential additional violations are
avoided.
B. Permit modification, suspension and revocation. A violation of any provision of this chapter, this code,
California Vehicle Code, or any other applicable federal, state, or local laws or codes, including, but not
limited to, applicable fire codes and the building and construction codes as set forth in Title 8 of this code, by
any applicant, occupant, responsible person, local contact person, owner, or owner's authorized agent or
representative (including a management company), shall constitute grounds for modification, suspension
and/or revocation (which may include permanent revocation) of the short-term vacation rental permit
and/or any affiliated licenses or permits pursuant to the provisions set forth in Section 3.25.100.
C. Notice of violation. The city may issue a notice of violation to any applicant, occupant, responsible person,
local contact person, owner, owner's authorized agent or representative (including a management
company), or hosting platform, pursuant to Section 1.01.300 (or successor provisions, as may be amended
from time to time) of this code, if there is any violation of this chapter committed, caused or maintained by
any of the above parties.
D. Two (2) strikes policy. Subject to a minor violation reprieve request, two (2) violations of any provision of this
chapter or this code within one (1) year by any applicant, occupant, responsible person, local contact person,
owner, owner's authorized agent or representative (including a management company), with respect to any
one (1) residential dwelling shall result in an immediate suspension of the short-term vacation rental permit
with subsequent ability to have a hearing before the city, pursuant to this chapter, to request a lifting of the
suspension. For purposes of this subsection, a "minor violation reprieve request" means a written request
submitted to the city's code enforcement officer for relief from counting one (1) or more violations within
the one (1) year period as a minor violation, and "minor violation" means a violation of a particular section of
this code that resulted in minimal impact on the use and enjoyment of the adjacent and nearby properties
caused by any of the following:
1. Minor debris or trash containers left in view as a first offense;
2. A short-term vacation rental permit number or bedroom count not posted on an advertisement as a
first offense;
3. A short-term vacation rental permit number or bedroom count posted in the wrong location on an
advertisement as a first offense; or
4. Over occupancy due to a minor child not associated with a disturbance.
A determination of whether a code violation is a minor violation shall be based on substantial evidence presented
to the code enforcement officer relating to that violation.
E. Administrative and misdemeanor citations. The city may issue an administrative citation to any applicant,
occupant, responsible person, local contact person, owner, owner's authorized agent or representative
(including a management company), or hosting platform, pursuant to Chapter 1.09 (Administrative Citations)
(or successor provisions, as may be amended from time to time) of this code, if there is any violation of this
chapter committed, caused or maintained by any of the above parties. Nothing in this section shall preclude
the city from also issuing an infraction citation upon the occurrence of the same offense on a separate day.
An administrative citation may impose a fine for one (1) or more violations of this chapter in the maximum
amount allowed by state law or this code in which the latter amount shall be as follows:
(Supp. No. 6, Update 1 )
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DOC #2025-0067601 Page 63 of 68
1. General short-term vacation rental violations (occupancy/noise/parking).
a. First violation: one thousand dollars ($1,000.00);
b. Second violation: two thousand dollars ($2,000.00);
C. Third violation: three thousand dollars ($3,000.00).
2. Operating a short-term vacation rental without a valid short-term vacation rental permit.
a. First violation: one thousand and five hundred dollars ($1,500.00);
b. Second or more violations: three thousand dollars ($3,000.00);
c. , Third or more violations: five thousand dollars ($5,000.00);
d. In addition to the fines set forth above, the first, second, third, or subsequent violation of
operating a short-term vacation rental unit without a valid short-term vacation rental permit
shall be cause for an owner (or person and/or entity that owns or controls a business or
organization or other entity of any kind, such as a limited liability company, which is the owner of
a property) to be prohibited for all time from being eligible to be issued a short-term vacation
rental permit and/or business license for use of a property as a short-term vacation rental unit.
3. Hosting a special event at a short-term vacation rental unit without a special event permit as required
by Section 9,60.170 (or successor provision, as may be amended from time to time) of this code.
a. First violation: five thousand dollars ($5,000.00);
b. Second violation: five thousand dollars ($5,000.00).
4. Advertising a short-term vacation rental without a valid short-term vacation rental permit by person(s)
or entity(ies) other than a management company.
a. First violation: one thousand dollars ($1,000.00);
b. Second violation: two thousand dollars ($2,000.00);
C. Third violation: three thousand dollars ($3,000.00).
5. Advertising a short-term vacation rental without a valid short-term vacation rental permit by a
management company.
a. First violation: one thousand and five hundred dollars ($1,500.00);
b. Second violation: three thousand dollars ($3,000.00);
C. Third or more violations: five thousand dollars ($5,000.00);
d. In addition to the fines set forth above, the first, second, third, or subsequent violation of
knowingly advertising a short-term vacation rental unit without a valid short-term vacation rental
permit by a management company shall be cause for the management company to be prohibited
from being used to advertise or operate a short-term vacation rental unit at the property
identified for not having a valid short-term vacation rental permit. Additionally, repeat violations,
which is three (3) or more violations of this subsection (E)(5), by a management company for
knowingly advertising a short-term vacation rental unit without a valid short-term vacation rental
permit shall be cause for the management company to be prohibited for all time from being
eligible to be issued a short-term vacation rental permit and/or business license in the city for
such property management purposes.
Public Nuisance. In addition to any and all rights and remedies available to the city, it shall be a public
nuisance for any person or entity to commit, cause or maintain a violation of this chapter, which shall be
(Supp. No. 6, Update 1 )
Page 19 of 20
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DOC #2025-0067601 Page 64 of 68
subject to the provisions of Section 1.01.250 (Violations public nuisances) (or successor provisions, as may be
amended from time to time) of this code.
(Ord. No. 607, Exh. A, 12-5-2023; Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 578 § 1,
2019; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017; Ord. 501 § 2, 2012)
3.25.100 Appeals.
A. Any person aggrieved by any decision of a city officer made pursuant to this chapter may request a hearing
before the city manager in accordance with Chapter 2.08 (or successor provisions, as may be amended from
time to time) of this code.
B. Notwithstanding any provisions in Section 2.08.230 or otherwise in the code, the decision by the city
manager of an appeal brought under this chapter shall be the final decision by the city for any violation of a
short-term vacation rental permit issued under this order, except for any administrative citation imposing a
fine, which shall be processed and subject to an administrative appeal pursuant to Chapter 1.09 of the code.
(Ord. 590 § 1(Exh. A), 3-16-2021; Ord. 586 § 1(Exh. A), 12-15-2020; Ord. 572 § 1, 2018; Ord. 563 § 1, 2017)
(Supp. No. 6, Update 1)
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DOC #2025-0067601 Page 65 of 68
Ordinance No. 619
Chapter 3.25 Short -Term Vacation Rentals — Additions and Amendments
Adopted: December 17, 2024
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE) ss.
CITY OF LA QUINTA )
I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify the
foregoing to be a full, true, and correct copy of Ordinance No. 619 which was introduced
at a regular meeting on the 3rd December 2024, and was adopted at a regular meeting
held on the 17th of December, 2024, not being less than 5 days after the date of
introduction thereof.
I further certify that the foregoing Ordinance was posted in three places within the City of
La Quinta as specified in the Rules of Procedure adopted by City Council Resolution No.
2022-027.
MONIKA R DEV City Clerk
City of La Quinta, California
DECLARATION OF POSTING
I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify that
the foregoing ordinance was posted on December 18, 2024, pursuant to Council
Resolution.
MONIKA RAD VA, qty Clerk
City of La Quinta, California
DOC #2025-0067601 Page 66 of 68
EXHIBIT "I'"
Example Title Insurance Policy Terms and Conditions
(for reference only)
[Example Title Insurance Policy Terms Showing Common Area Lettered -Lots in Tract Map
Covered Under Numbered -Lot Owner Policy, To Assist with Compliance with Section 1.8.4]
[attached]
698/015610-0183
21730970.2 a01127/25 EXHIBIT F
DOC #2025-0067601 Page 67 of 68
Title Insurance Company
SCHEDULE A
This is a [ Pro Forma ] Policy. It does not reflect the present state of the Title and is not a commitment to (i)
insure the Title or (ii) issue any of the attached endorsements. Any such commitment must be an express
written undertaking on appropriate forms of the Company.
Name and Address of Title Insurance Company: Title Company, [ ADDRESS ]
Address Reference: Lots I thru 14, Tract 31852, La Quinta, CA
Amount of Insurance: $
Date of Policy:
1. Name of Insured:
[ Owner of Property ]
2. The estate or interest in the Land that is insured by this policy is:
A FEE as to PARCEL 1;
EASEMENT as to PARCELS 2, 3 and 4
3. Title is vested in:
[ Same as Insured / Owner of Property ]
4. The Land referred to in this policy is described as follows:
See Exhibit A attached hereto and made a part hereof.
[See next page]
698/015610-0183
21730970.2 a01/27/25 EXHIBIT F
Premium: $
DOC #2025-0067601 Page 68 of 68
[ EXHIBIT A to SCHEDULE A ]
[ Template Legal Description ]
[ Parcel 1 Must Be Modified to Match Property Insured ]
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF LA QUINTA, IN THE COUNTY
OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:
PARCELI:
LOT(s) OF TRACT NO. 31852, IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 402, PAGES 38 THROUGH 41, INCLUSIVE OF
MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.
PARCEL 2:
AN EASEMENT FOR "PRIVATE USE" FOR THE SOLE BENEFIT OF THE LOT OVVNER(S) AND INDICATED
AS "PRIVATE STREET" OVER LOT "A" OF TRACT NO. 31852, IN THE CITY OF LA QUINTA, COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 402, PAGES 38 THROUGH
41, INCLUSIVE OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.
PARCEL 3:
AN EASEMENT FOR "PRIVATE USE" FOR THE SOLE BENEFIT OF THE LOT OWNER(S) AND INDICATED
AS "LANDSCAPE" OVER LOTS "C" THROUGH "F" OF TRACT NO. 31852, IN THE CITY OF LA QUINTA,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 402, PAGES
38 THROUGH 41, INCLUSIVE OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.
PARCEL 4:
AN EASEMENT FOR "PRIVATE USE" FOR THE SOLE BENEFIT OF THE LOT OWNER(S) AND INDICATED
AS "DRAINAGE AND RETENTION PURPOSES" OVER LOT "G" OF TRACT NO. 31852, IN THE CITY OF LA
QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 402,
PAGES 38 THROUGH 41, INCLUSIVE OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.
APN(s):
698/015610-0183
21730970.2 a01/27/25 EXHIBIT F
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE) ss.
CITY OF LA QUINTA )
I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify the
foregoing to be a full, true, and correct copy of Ordinance No. 620 which was introduced
at a regular meeting on the January 21, 2025, and was adopted at a regular meeting held
on the February 4, 2025, not being less than 5 days after the date of introduction thereof.
I further certify that the foregoing Ordinance was posted in three places within the City of
La Quinta as specified in the Rules of Procedure adopted by City Council Resolution No.
2022-27.
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MONIKA RADEV , City Clerk
City of La Quinta, California
DECLARATION OF POSTING
I, MONIKA RADEVA, City Clerk of the City of La Quinta, California, do hereby certify that
the foregoing ordinance was posted on February 5, 2025 pursuant to Council Resolution
2022-027.
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MONIKA RADEVA, City Clerk
City of La Quinta, California