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HomeMy WebLinkAbout2025 09 09 PC MinutesPLANNING COMMISSION MINUTES TUESDAY, SEPTEMBER 9, 2025 CALL TO ORDER A regular meeting of the La Quinta Planning Commission (Commission) was called to order at 5:00 p.m. by Chairperson Hassett. PRESENT: Commissioners Bohlinger, Guerrero, Hernandez, Hundt, McCune, Nieto, and Chairperson Hassett ABSENT: None STAFF PRESENT: Interim Design and Development Director Cheri Flores, Public Works Director Bryan McKinney, Consulting Planner Nicole Criste, Assistant Planner Jack Lima, City Attorney William Ihrke, and Commission Secretary Tania Flores PLEDGE OF ALLEGIANCE Commissioner McCune led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA PUBLIC SPEAKER: Mary Mann, La Quinta — opposed to the previous approval of the Club at Coral Mountain Development located south of Avenue 58, north of Avenue 60, and east and west of Madison Street; the restrictions to public access of undeveloped land, views, flood control, natural habitat, and cultural history. CONFIRMATION OF AGENDA MOTION — A motion was made and seconded by Commissioners Bohlinger/Guerrero to confirm the agenda as published. Motion passed unanimously. ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS — None CONSENT CALENDAR — None BUSINESS SESSION — None PLANNING COMMISSION MINUTES Page 1 of 7 SEPTEMBER 9, 2025 PUBLIC HEARINGS 1. CONSIDER ADOPTING RESOLUTIONS TO RECOMMEND CITY COUNCIL ADOPT ENVIRONMENTAL ASSESSMENT 2025-0002 (ADDENDUM NO. 3 TO ENVIRONMENTAL ASSESSMENT 2002-453) AND APPROVE DEVELOPMENT AGREEMENT 2025-0001 (REINSTATED AND AMENDED DEVELOPMENT AGREEMENT 2014-0001) TO FACILITATE DEVELOPMENT OF THE SILVERROCK SPECIFIC PLAN AREA; CEQA: AN ADDENDUM TO ENVIRONMENTAL ASSESSMENT 2002-453 HAS BEEN PREPARED PURSUANT TO SECTIONS 15162 AND 15164 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; PROJECT: SILVERROCK RESORT; LOCATION: SOUTH OF AVENUE 52, WEST OF JEFFERSON STREET COMMISSIONER HERNANDEZ RECUSED HIMSELF FROM DISCUSSION AND VOTE ON PUBLIC HEARING ITEM NO. 1 DUE TO A POTENTIAL CONFLICT OF INTEREST STEMMING FROM THE PROXIMITY OF PERSONAL PROPERTY TO THE PROJECT SITE, AND LEFT THE DAIS AT 5:09 P.M. City Attorney Ihrke said that City Staff had facilitated meetings between the Planning Commission and the project applicant prior to this meeting, with no quorum being met at any one meeting in accordance with the Brown Act, in which the applicant provided a brief overview of the project; and after discussions with the City Manager and the Interim Design and Development Director, it was determined that it would be helpful to make an announcement to provide context regarding this public hearing. Mr. Ihrke said there are two parallel processes underway regarding this project: 1) Relating to federal law and the bankruptcy case proceedings brought by the SilverRock Development Company, LLC (SDC), and its affiliates, before the U.S. Bankruptcy Court, District of Delaware, and 2) Relating to State and City laws that apply to the project applications, submitted by the new SilverRock project developer, TBE RE ACQUISITION CO, II LLC, a subsidiary of Turnbridge Equities (Turnbridge), which were before the Commission for consideration this evening. With respect to No. 1 above — federal law and the bankruptcy case: City Attorney Ihrke said on August 5, 2024, SilverRock Development Company, LLC, and its affiliates (debtors), voluntarily petitioned for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Delaware; and per prior Council direction and approval, the City retained Special Counsel who has continuously been working with the City Manager and City Attorney throughout these proceedings. Prior announcements regarding the bankruptcy case are available on the City's website at www.laguintaca.gov/talusig. PLANNING COMMISSION MINUTES Page 2 of 7 SEPTEMBER 9, 2025 The bankruptcy case has progressed through many phases, and the City, through the City Manager and Legal Counsel, after getting direction from the City Council, has been active in monitoring and participating in the bankruptcy litigation. The most relevant background information, for purposes of tonight's hearing, is that the bankruptcy court approved and ordered a set of "Bid Procedures" which, in general, provided a process for the marketing and eventual sale and selection of a new owner and developer of the debtors' assets (i.e., the former Talus project area). The marketing opportunity included, as was originally envisioned with the debtors' project, the potential to acquire surrounding real property still owned by the City in the SilverRock Resort area, for purposes of eventually developing that land for uses that would be consistent with the luxury resort, residential, and golf uses permitted per the existing SilverRock Specific Plan. Several steps have taken place under those Bid Procedures, including the selection of a "stalking horse" and a live auction. Those prior steps have led to a point where Turnbridge, the applicant before the Commission, has been designated the "successful bidder" of the auction and is recommended by the debtors, with the City's concurrence, as the proposed purchaser of the debtors' assets. As part of the Bid Procedures, any potential "successful bidder" would have to enter into a valid and binding statutory development agreement, which is before the Planning Commission this evening. Under the Bid Procedures, any potential party interested in bidding was required to negotiate and have drafted a statutory development agreement (among other documents to be presented to the Council), in order to be considered as part of the bid proceedings and recommended as a successful bidder. The Bid Procedures currently in place have the escrow for the potential sale of the debtors' assets proposed to close before the end of this year. With respect to No. 2 above — the state and City law "parallel process": All cities, including charter cities such as La Quinta, derive their land -use authority from the California Constitution (Article XI, sections 5 and 7) under what is commonly known as the "police power." This power is broad and flexible, and it allows cities to enact, for instance, zoning ordinances and other land use policies and procedures, as well as enforcement provisions for violations of those land use laws. This police power as it relates to land use is primarily codified in state law under the "Planning and Zoning Law," which includes, among many other land use allowances, that cities can pursue, the authority for cities to enter into statutory development agreements. A key aspect of exercising the police power is that, as many California courts have repeatedly held, standard approval processes and public participation procedures, such as required public hearings, must be followed. Required public hearings and public participation cannot be "contracted away" by a settlement agreement. The PLANNING COMMISSION MINUTES Page 3 of 7 SEPTEMBER 9, 2025 exercise of the police power requires compliance with state and City laws governing land use decisions, even when litigation, as is the case here, is involved. There is a binding state court case that expressly concluded use of a statutory development agreement pursuant to state law is the procedure by which a developer and a city may lawfully agree to permit a specifically described development project, including fixing the zoning governing it. Thus, the Turnbridge application for a development agreement is under consideration. Pursuant to state and City law, the Planning Commission must review any development agreement at a public hearing and provide a recommendation to the Council as to whether the Council should approve the agreement or not. The decision by the Council is expressly described and legally known as a legislative act and must be adopted by an ordinance. The Council will be exercising its own discretion, but as is the usual case, the Council always takes into account and considers the Planning Commission's recommendation. For this meeting, the role of the Planning Commission is the same as it would be for any development agreement application. The Commission's jurisdiction is to oversee the implementation of the City's adopted General Plan and make recommendations to the Council for projects that, like the pending application, propose development and uses on real property within the City. Also, anytime there is a "Project" under the California Environmental Quality Act (CEQA), the City provides the proposed environmental review document, which here is an Addendum that has been included with the staff report, so that the Planning Commission can make a recommendation on that as well to the Council, along with the proposed Development Agreement. La Quinta Municipal Code Section 9.250.020 governs and requires certain findings to be made by the Planning Commission, as well as governing the next step in the process, which is for the Council to hold its public hearing on the recommendation of the Planning Commission. The last item is governed by federal law and the bankruptcy case and discussed to ensure the Commissioner understands the context of those requirements. City Attorney Ihrke stated that he is not a bankruptcy attorney, and the City has retained Special Counsel for that purpose, but an important legal requirement, as far as federal laws and procedures are concerned, is that the Bankruptcy Court must approve and authorize the sale of the debtors' assets to Turnbridge. That proposed sale is being addressed pursuant to the Bid Procedures previously referenced, and it is possible that any recommendation made by the Planning Commission at this meeting may be rendered moot if the Bankruptcy Court does not authorize the sale to Turnbridge. Nonetheless, City Staff, the City Manager, and Legal Counsel would like to ensure that state and City legal requirements are addressed at this time, as those requirements have been triggered by the filing of Turnbridge's application and should be processed PLANNING COMMISSION MINUTES Page 4 of 7 SEPTEMBER 9, 2025 in the ordinary course. City Attorney Ihrke stated that he would be available for any Commission questions after the presentation of the staff report for this item. Commissioners Bohlinger, Guerrero, Hundt, McCune, Nieto, and Chairperson Hassett stated that they had each attended individual meetings (less than a quorum) with the applicant and had no conflicts of interest in considering this matter. Interim Design and Development Director Flores presented the staff report, which is on file in the Design and Development Department. The Commission discussed the processes for various components of additional and future entitlements and permits, such as revised master plans, tentative maps, site development permits, architectural reviews, etc., for the development of the proposed project, these would go through the ordinary course of application processing; provisions within the development agreement that allow for expedited permitting for site development permits and conditional use permits used in the context of immediate cleanup or remediation of the current site; pending bankruptcy court hearing(s) and ruling(s); the City's standing land use authority regardless of the bankruptcy court ruling(s); certain City approvals were required by the bankruptcy court but no specific plan amendment being needed at this time; requirements of Turnbridge and the proposed development agreement which is the binding operative agreement approval to move forward in the bankruptcy proceedings; CEQA requirements of an addendum due to the development agreement application submittal; the definition and construct of "police power" as it pertains to this project and history of land use regulations; the Bid Procedures process and the status of unsuccessful bidders and their associated proposed development agreements; status of the 2014 development agreement with SDC and that it will not be presented to the bankruptcy court during the upcoming proceedings; future bankruptcy proceedings will consider the proposed sale of the project to Turnbridge; timeliness of the consideration of this project in regards to the upcoming bankruptcy proceedings; the project would be subject to previously approved SilverRock Specific plan in conjunction with this proposed development agreement including approvals of future site development permits to review building design, architecture, and other standards; Phase 2 property is identified in a purchase option in the development agreement and associated contingencies with first right to purchase given to Turnbridge; recording of the development agreement against the Phase 2 property; status of the infrastructure improvements required for the project, substantial infrastructure improvements were completed; ownership and operations, current and future, of the existing SilverRock golf course and any future option to purchase the course; ownership and transferability of the existing Ahmanson Ranch house tied to the golf course, the ability to preserve the property, and would need to be evaluated as a historic resource under CEQA. CHAIRPERSON HASSETT DECLARED THE PUBLIC HEARING OPEN AT 5:52 P.M. PUBLIC SPEAKER: Applicant representative, Michael Gazzano, Managing Director with Turnbridge Equities West Coast Division — introduced project consultants James (Jim) Vaughn, Land Use Counsel with Procopio and Tony Locacciato, CEQA consultant with PLANNING COMMISSION MINUTES Page 5 of 7 SEPTEMBER 9, 2025 Meridian Consultants; gave a brief overview of the company itself and its history of development projects and qualifications for this project; highlighted community benefits of the project including construction related jobs, permanent jobs, golf and clubhouse improvements and access, and estimated transient occupancy tax (TOT) revenue to the City; and provided a presentation of the proposed project details including site plan, relocation of golf clubhouse, and phasing. Discussion followed regarding expected size and occupancy for the new golf clubhouse, staging areas, and driving range; complimentary public use of the golf clubhouse and SilverRock Park; realignment of SilverRock Way; roadways and pedestrian safety; amenities for condos; decreased intensity of the proposed project versus the currently approved project; Phase 2 development opportunities in regards to density and uses; public access to the golf course and amenities; studies and analysis used to create the proposed amenity programing and locations of amenities; importance of golf in the community; future anticipated changes to the proposed plans; plans for demolition and restoration efforts on current site conditions; application of SB 330 regulations due to reduction in housing units for the proposed project; number of units is still consistent with what is allowed under the SilverRock Resort Specific Plan; back of house facilities, operations, size, and location; and Phase 2 commercial and residential uses and location. The Commission Secretary stated that no written public comments were received on this matter. PUBLIC SPEAKER: Mary Mann, La Quinta — expressed concerns about restricting public access to SilverRock Park, adjacent desert trails, and other open space from Jefferson St. and Avenue 54. CHAIRPERSON HASSETT DECLARED THE PUBLIC HEARING CLOSED AT 6:30 P.M. Commission discussion followed, expressing general support of the project with comments regarding appreciation for the applicant's knowledge and experience in complex planning projects; attention to design of the site, roadways, public access, views, and maintaining a lower density; consistency with the intent and purpose of the original plans for this area; less traffic than previous plan and consideration for public transit; and the importance of planning moving forward on this project site. MOTION —A motion was made and seconded by Commissioners Guerrero/Nieto to adopt Planning Commission Resolution No. 2025-007 to recommend City Council adopt Environmental Assessment 2025-0002, Addendum No. 3 to the Mitigated Negative Declaration (MND) for Environmental Assessment 2002-453, as presented: A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT ADDENDUM NO. 3 TO THE PREVIOUSLY ADOPTED MITIGATED NEGATIVE DECLARATION (EA 2002-453) PURSUANT TO SECTION 15164 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT IN THAT NO SUBSTANTIAL PLANNING COMMISSION MINUTES Page 6 of 7 SEPTEMBER 9, 2025 CHANGES TO THE PROJECT ARE PROPOSED THAT RESULT IN NEW SIGNIFICANT ENVIRONMENTAL EFFECTS. CASE NUMBER: ENVIRONMENTAL ASSESSMENT 2025-0002 PROJECT: SILVERROCK RESORT APPLICANT: TBE RE ACQUISITION CO II LLC. (SUBSIDIARY OF TURNBRIDGE EQUITIES) Motion passed: ayes — 6, noes — 0, absent — 1 (Hernandez), abstain — 0. MOTION — A motion was made and seconded by Commissioners Guerrero/Bohlinger to adopt Planning Commission Resolution No. 2025-008 to recommend City Council approve Development Agreement (DA) 2025-0001 (Reinstated and Amended DA 2014- 0001) for the SilverRock Resort, as presented: A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA QUINTA, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL APPROVE DEVELOPMENT AGREEMENT 2025-0001, FOR THE REINSTATED AND AMENDED DEVELOPMENT AGREEMENT FOR SILVERROCK RESORT CASE NUMBER: DEVELOPMENT AGREEMENT 2025-0001 (REINSTATED AND AMENDED DEVELOPMENT AGREEMENT 2014-1001) PROJECT: SILVERROCK RESORT APPLICANT: TBE RE ACQUISITION CO II LLC. (SUBSIDIARY OF TURNBRIDGE EQUITIES) Motion passed: ayes — 6, noes — 0, absent — 1 (Hernandez), abstain — 0. STUDY SESSION — None STAFF ITEMS — None COMMISSIONER ITEMS — None ADJOURNMENT There being no further business, a motion was made and seconded by Commissioners Nieto/Hundt to adjourn this meeting at 6:42 p.m. Motion passed: ayes — 6, noes — 0, absent — 1 (Hernandez), abstain — 0. Respectfully submitted, 4q.- TANIA FLORES, Commission Secretary City of La Quinta, California PLANNING COMMISSION MINUTES Page 7 of 7 SEPTEMBER 9, 2025