ORD 432
ORDINANCE NO. 432
A ZONING ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA
GUINTA, CALIFORNIA, ADDING SECTION 9.140.080 TO THE LA
GUINTA MUNICIPAL CODE REGULATING CONDOMINIUM HOTEL
DEVELOPMENT AND USAGE AND PROHIBITING CONVERSION OF
EXISTING HOTELS INTO CONDOMINIUM HOTELS
ZONING TEXT AMENDMENT 2006-088
WHEREAS, the City of La Quinta has proposed this Condominium
Hotel Zoning Ordinance ("Condominium Hotel Zoning Ordinance" or this
"Ordinance") to add Section 9.140.080 to Chapter 9.140, Supplemental Special
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Purpose Regulations, to establish regulations for the development and operation of
,all future Condominium Hotel projects and to prevent the conversion of existing
hotels into Condominium Hotels; and
WHEREAS, the City Council has given careful consideration to the
staff report and all of the information, evidence and testimony presented at a public
hearing on the proposed Ordinance, which public hearing was held on November
21,2006;and
WHEREAS, the City has vacant land zoned and with General Plan
designations which provide for the development of new hotels; and
WHEREAS, the current trend, both nationally and in California, in the
hotel industry is the development and construction of condominium hotels as well
as the conversion of existing hotels to condominium hotels, which conversion the
City wishes to prohibit; and
WHEREAS, with this Condominium Hotel Zoning Ordinance, the City
will establish minimum requirements pertaining to the development, operation and
usage standards for condominium hotels while at the same time preserving existing
hotels and safeguarding hotel worker jobs and protecting the City's tourism
economy; and
WHEREAS, the passage of the proposed Ordinance is not a project
because it addresses ownership structure and operational rElquirements, and does
not address physical structure or development, and thus it can be seen with
certainty that it will not have a significant effect on the environment. Therefore,
the - proposed amendments are exempt from the provisions of the California
Environmental Quality Act ("CEQA "), and no further environmental review is
necessary.
Ordinance No. 432
Usage I Condominium Hotel Units
Limiting Conversion I Hotels to Condominium Hotels
Zoning Text Amendment 2006-088 '
Page 2
THE CITY COUNCIL OF THE CITY OF LA GUINTA, CALIFORNIA,
, DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 9.140.080 is added to the La Quinta Municipal' Code to
read as follows:
A. Purpose. The specific purposes of these regulations are to assure that
, Condominium Hotel projects are conditioned at the time of development approval, in
such a way as to ensure appropriate public health, safety, welfare and land use
classifications and standards; to mitigate potential impacts of Condominium Hotels
on traffic congestion, air quality, building design and safety, police, fire and
emergency services; to assure other adequate public facilities; to allow
Condominium Hotel development projects some financial flexibility subject to the
approval of the City Council; to prohibit conversion of existing hotels to
Condominium Hotels; and to provide the city with appropriate development and
operational controls over Condominium Hotels.
B. Definitions. The following definitions shall govern the construction and
interpretation of this Section.
1. Condominium Hotel. A "Condominium Hotel" shall mean a "Hotel" or
"Group Hotel" all or part of which constitutes a condominium project
in, which one or more of the Units are individually owned, but are
intended to be available for "Transient" use (as those terms are
defined in Section 3.24.020 of the La Quinta Municipal Code), when
not being used by the Unit Owner. '
2. Development Agreement. For purposes of this Section, the term
"Development Agreement" shall mean any of the following: (1) a
statutory development, agreement entered into pursuant' to
Government Code sections 65864 et seq.; (2J a disposition and
development agreement entered into between' an applicant and the
City~sRedevelopmetit Agency; or (3) an owner participation
agreement entered into' between an' applicant ,and the CitY's'
Redevelopment Agency. .
3. Effective Date. The "Effective Date" shall mean the date on which the
ordinance adopting this Section becomes effective.
Ordinance No. 432
Usage I Condominium Hotel Units
Limiting Conversion I Hotels to Condominium Hotels
Zoning Text Amendment 2006-088
Page 3
4. First Class Condominium Hotel. A "First Class Condominium Hotel"
shall mean a Condominium Hotel where both of the following apply:
(1) the Condominium Hotel has a brand Operator or an independent
Operator that is experienced ,in the "Upscale Segment" or "Luxury
Segment" of the hospitality industry as defined by J.D. Power and
Associates; and (2) the Condominium Hotel satisfies the published
requirements that will' be, sufficient for a ranking of no fewer than
Three Stars in the most recent annual awards list published from time '
to time by AAA Travel Guides or by the Mobil Travel Guide.
5. Operator. ' "Operator" shall mean the entity designated by the owner
of the Condominium Hotel or, if all of the common area of a
Condominium Hotel is owned by a condominium owners' association,
designated by such association, to manage the Condominium Hotel.
6. Personal Use. "Personal Use" shall mean the use or occupancy of a
Unit by an Owner or any non-paying guest of an Owner for whom the
Owner may, and does, reserve its Unit. Use ofa Unit arising out of an
exchange program with an affiliated hotel property shall be considered
Personal Use by the Owner.
7. Unit. "Unit" shall mean a condominium unit, as shown on a recorded
condominium plan, which is located within a Condominium Hotel.
8. Unit Owner. "Unit Owner" or "Owner" shall mean an individual or
entity that acquires any ownership interest in, and holds title to, one
or more Units.
C. Condominium Hotel Regula'tions. No person Or entity shall construct or operate
a Condominium Hotel within the, City without first 'ob'taining all necessary
entitlements pursuant to this Section and pursuant to other applicable provisions of
the La Quinta Municipal Code. All other provisions of the La Quinta Municipal
Code, including, without limitation, Title 8 (Buildings and Construction), Title 13
(Subdivisions), and Title 9 (Zoning Code) shall be applicable to the construction and
maintenance of Condominium Hotels; provided however, that the more specific
provisions contained in this Section shall prevail over any general provisions set
forth in the La Quinta Municipal Code. A Condominium Hotel shall be allowed as a
conditionally permitted use, subject to the terms of this Section" and only within
those zoning districts in which Hotels or similar tourist and vacation
accommodations are expressly permitted either conditionally or as of right,
pursuant to the terms of Title 9 (Zoning Code) and/or any applicable specific plan.
Each application for a Condominium Hotel will be reviewed by ,the City's Planning
Ordinance No. 432
Usage I Condominium Hotel Units
Umlting ,Conversion I Hotels to Condominium Hotels
Zoning Text Amendment 2006-088
Page 4
Commission and City Council. If the Planning Commission recommends granting
. '
approval of the application, the City Council shall set notice of a public hearing to
be held within forty five (45) days thereafter or such later date as may be set by
the City, Council. Approval shall be subject to, required conditions necessary to
carry out the provisions of this' Section.
D. Application for Condominium Hotel. An application for a Condominium Hotel
shall include the following six (6) requirements, in addition to any other information
that the City may determine is necessary to review the application. No
Condominium Hotel may be approved without approval of all of the following
. requirements:
1 . Development Agreement. A 'proposed Development, 'Agreement
application, which shall provide for enforcement of all conditions and
standards required by this Sectio'n. In addition to any other provisions
that may properly be included within the Development Agreement, the
parties may agree to terms and conditions that are different from, or in
addition to, and supersede, the provis.ions and requirements of this
Section. The City shall include such terms as it deems necessary to
ensure that the Condominium Hotel operates as the equivalent of a
traditional hotel. The Development Agreement shall also include a draft
Declaration of Covenants, Conditions and Restrictions pursuant to
paragraph G below.
2.
Conditions, Covenants and Restrictions ("CC&R's").
CC&R's for the Units. .
The proposed
3. Environmental Assessment. Information necessai-y for the ,City to
perform an ,environmental assessment of the proposed Condominium
Hotel project; pursuant to the California Environmental Quality Act (public
Hesources CodS', B 21080-21094 and its implementing regulations).
4. Subdivision Application. Each CondomitiiumHotel application shall be
accompanied by an application fOr a tentative or vesting 'tentative map
pursuant to Title 13 of the La Quinta Municipal Code..
5. Specific Plan. Each Condominium Hotel application shall be accompanied
by an application for a specific plan or be within an approved specific plan
area which permits such use, pursuant to Government, Code
sections 65450 et seq.
Ordinance No. 432
Usage J Condominium Hotel Units
limiting Conversion J Hotels to Condominium Hotels
Zonl,.g Ten Amendment 2006-088
Page 5
6. Site Development Permit. Each Condominium Hotel application shall be
accompanied by an application for a site development permit pursuant to
Section 9.210 of the Zoning Code.
E. Development Standards. The Condominium Hotel shall comply with all the
development, use, area, parking and other applicable standards of the zone or
applicable specific plan in which the project is located.
F. Condominium Hotel Standards, Conditions and Requirements. In addition to the
standards referenced in this Section, each Condominium Hotel is required to meet
the following additional standards, conditions and requirements:
1. No Unit may be used as a full-time or permanent residence, except as set
forth in the next paragraph.
2. No more than one (1) Unit in each Condominium Hotel may be used for
the full-time or permanent residential occupancy by a person or family
serving as the on-site manager of the Condominium Hotel. Such Unit
must be owned by the owner or operator of the Condominium Hotel or
the owners' association, and shall not be used for homestead purposes.
3. At its sole cost and expense, each individual Unit Owner may choose to
hire any rental agent of its selection, or the Operator or an affiliate, for
the purpose of advertising the rental availability of, and procuring
potential renters for, the Owner's Unit. Unit Owners may also rent their
Units themselves. When not being used for Personal Use, each Unit shall
be available for' rental as a Hotel accommodatiOn. The Operator shall
have the right, working through the Unit Owner or its designated rental
. agent, to book any unbooked room to f.ulfill demand, and to charge a
reasonable booking fee for each such booking.
4. Hotel guests (whether Transient or Personal' Use and not including any
on-site manager) are prohibited from occupying or remaining in any Unit
for more than twenty-nine (29) consecutive days, with a minimum seven
(7) day period intervening between each twentyCnine (29) consecutive
day use period.
5. Personal Use shall not exceed (i) thirty (30). days in the aggregate during
the period of November 1 through April 30; or (ii) sixty (60) days in any
calendar year, unless the owner engaging in such Personal Use satisfies
all requirements for such excess use as set forth in the Declaration.
Ordinance No. 432
Usage I Condominium Hotel Units
Umiting Conversion I Hotels to Condominium Hotels
Zoning Text Amendment 2006-088
Page 6
6. All Units shall be completely furnished with furniture,. fixtures and
equipment to the standards established by. the owner or operator of the
Condominium Hotel. A furniture, fixtures and equipment reserve account
shall be established and maintained in order to maintain and, when
necessary, replace the furniture, fixtures and equipment .within the Units
to maintain the facility in its First Class Condominium Hotel standard.
7. The proposed location, use, and design of the Condominium Hotel shall
be consistent with the City's general plan, zoning ordinances, and any
specific plan covering the area in question.
8. In accordance with the existing provisions of Chapter 3.24 of the La
Quinta Municipal Code, every Condominium Hotel shall be subject to the
City's transient occupancy tax requirements, as may be amended from
. time to time. The Owner of a Condominium Hotel Unit shall receive golf
and other benefits which are. available to residents of La Quinta on the
same terms, and subject to the same conditions, as are applicable to such
residents.
9. Any proposed Condominium Hotel that will not, as proposed, qualify as a
First Class Condominium Hotel shall not be eligible to operate as a
Condominium Hotel in the City of La Quinta.
G. Provisions for Declaration.. The Development Agreement submitted with the
Condominium Hotel application shall include.a draft ,Declaration of Covenants,
Conditions and Restrictions ("Declaration") (which shall be separate and apart from
the CC&Rs required to create the Units as condominiums pursuant to California
law) which must be approved by the Community Development Director and the
City Attorney prior to final approval of the Condominium HoteL application, and
. thereafter recorded against the Condominiu.m Hotel in the Riverside County
Recorder's Office. The Declaration shall include the following provisions:
, " .
. .. .
1. The Declaration shall require the Units to be included within..a Hotel, and
(other than the Unit occupied by an on-site manager) made available as a
Hotel accommodation when not being used for Per,sonal Use.
. ' .
2. The DeClaration shall require that the Operator manage the Units for the
Unit Owners pursuant to the Operator's then-standard form of agreement,
and provide to the Condominium Hotel, the Property, and the, Occupants
and Owners of the Units, on aseven (7) daya week basis, any or all "on
property" services commonly provided at First Class Condominium Hotels
Ordinance No. 432
Usage I Condominium Hotel Units
Limiting Conversion I Hotels to Condominium Hotels
Zoning Text Amendment 2006..Q88
Page 7
and Resorts, including without limitation, such services as front desk
check-in and check-out services (including electronic keys), routine
housekeeping, laundry and dry cleaning, room service, catering and other
food and beverage services, spa services, concierge services, parking and
bellman services to the Unit Owner and the Unit Owner's guests. The
availability and right to use such services. shall be conditioned. upon
payment of such charges or fees as may be imposed ,generally on hotel
guests. As to the availability and right to use services such as front desk
check-in and use of resort pools, lobbies, recreational facilities, etc.,
which are not separately charged to Hotel guests, use will be conditioned
upon the payment of such fees as are determined by the Operator to be
appropriate to reflect the allocable costs of such services and facilities
attributable to each Unit within the Hotel. The Operator shall have the
exclusive right to restrict and control access to any and all shared
facilities within the Condominium Hotel, provided the same does not
restrict a Unit Owner's right of access to her, his or its Unit, except that
Unit access shall be subject to mandatory registration at the Hotel front
desk to obtain a key to the Unit, which key shall be im electronic key.
The Operator's management obligations shall also include upkeep and
repair of the interior of each Unit, and monitoring and managing repair
and replacement of furniture, fixtures and equipment, both at the Unit
Owner's sole. cost and expense.
3. The Declaration shall require the Operator to provide a quarterly report to
the City that contains all of the following informatiOn on each Unit: (a)
the number of said Unit; (b) the name, address and telephone number of
the Owner .of the Unit; (c) whether the Operator is and has been the
rental agent for said. Unit during. the. immediately. preceding calendar
quarter; (d) the Personal Use during the immediately preceding calendar
quarter; (e) the name and address of any occupant of the Unit (other than
the Owner) whose occupancy exceeded the twenty~nine (29) day
maximum; and (f) the TOT that has. been collected by the Operator and
remitted to the City for use of said Unit during the immediately preceding
calendar quarter.
4. The Declaration. shall require. the Condominium Hotel owner or, if' none,
the Condominium Hotel's owner's association to hire a qualified
professional Operator to manage, maintain and operate all. portions of the
Condominium .. Hotel . in a manner consistent with the First Class
Condominium Hotel Stimdard required by this Section. The Operator shall
have at least five (5) consecutive years ~f experience in. the hotel
management business in hotels that meet the First Class Condominium
Ordinance No. 432
Usage I Condominium Hotel Units
Limiting Conversion I Hotels to Condominium Hotels
Zoning Text Amendment 2006-088
Page 8
Hotel standard and have no fewer than ten (10) other properties (each in
separate cities, or distinct and separate projects in any given city,
nationally or internationally) under current management. The
Condominium Hotel Owner or owner's association, asthe case may be,
shall provide the City with appropriate documentation to demonstrate that
the proposed Operator meets the requirements of this Subsection, to be
approved by City staff prior to issuance of a certificate of occupancy for
the Condominium Hotel. Upon request by the applicant, the City
Manager may waive the experience standards required above upon
finding that the proposed Operator has comparable substitute experience
and Qualifications. The Declaration shall include provisions regarding
proposed changes in the Operator.
5.. The Declaration shall give the Condominium Hotel Owner, Operator, and
the City the right, power and obligation to enforce the First Class
Condominium Hotel standard including, without limitation, the right to
enter any portion of the Condominium Hotel, and any individual
Condominium Hotel Units, to cure, or cause the Unit Owner to cure, any
failure to meet the First Class Condominium Hotel standard; and shall
permit the enforcement by the City, in its discretion, of this Section and
the Declaration.
6. The Declaration shall provide that Hotel guests (whether Transient or
Personal Use and not including anyon-site manager) are prohibited from
occupying or remaining in any Unit for more than twenty-nine (29)
consecutive days, with a minimum seven .,(7) . day period intervening
between each twenty-nine (29) consecutive day use period.
7. The Declaration shall provide that -Personal Use shall not exceed (i) thirty
(30) days in the aggregate during the period of November 1 through April
30; or (ii) sixty (60) days in any calendar year, unless provisions for such
excess. use are provided for in the Development Agreement and are
complied with by the Unit Owner.
8. Subject to applicable. California. general law and Department of . Real
Estate regulations, and unless otherwise provided in. the. Development
Agreement, the Declaration shall provide that the obligation to pay any
fees or changes provided for in the Development Agreement shall be
secured by a lien in favor of the City encumbering the Units. for the
amount owed, including any permitted penalties or interest, and that the
city shall have the right, but not the duty, to foreclose on any such liens
through equitable or legal proceedings.
Ordinance No. 432
Usage I Condominium Hotel Units
limiting Conversion I Hotels to Condominium Hotels
Zoning Text Amendment 2006M088
Page 9
9. The Declaration shall provide that it shall not be amended without the
prior written consent of the City.
H. Reporting and Inspection. Upon request of the City Manager, each Owner, the
Condominium Hotel association and the Operator shall maintain, on-site, and
regularly make available tothe City and its employees and agents such information,
books, records, and documentation, including all recQrds relating to Personal Use
and Transient use of each Unit, and also shall allow reasonable access to individual
Units, as the City finds necessary to have or review in order to enSljre that the City
may determine and enforce the Condominium Hotel's compliance with this Section
and other applicable City laws, regulations, the Condominium Hotel conditions, the
Development Agreement, and the Declaration. The original and, upon each change,
every subsequent Operator shall immediately advise the Community Development
Director of its name, qualifications, address, telephone number and the name of a
contact person.
I. Conversions. An express purpose of these regulations .is to preserve and
enhance the City of La Quinta's existing Hotel inventory. All existing Hotels are
prohibited from converting to Condominium Hotels from and after the Effective
Date. Thereafter, no other conversions to Condominium Hotels shall be allowed in
any zone, except that existing hotels with less than 20 units may apply to convert,
provided that the Hotel, after conversion, would generate an equivalent, or greater
amount of municipal revenue, and provided that the City Council finds that such
conversion is in the best interest of the City."
J. Prohibited Units. No provision herein shall be deElmed to permit.a timeshare,
fractional or other vacation ownership unit if otherwise prohibited by the ,La Quinta
Municipal Code. .
SECTION ~. SEVERABILITY. The provIsions of this Ordinance shall be
severable, and if i;lny clause,sentence, paragraph, subdivision, section, or part of
this Ordinance shall be adjudged by any court of competent jurisdiction to be
invalid, such judgment shall not affect, impair, or invalidate the remainder thereof
but shall be confined in its operation to the clause, sentence, paragraph,
subdivision, section, or part thereof directly involved irf the controversy in which
such judgment shall have been rendered. -
Ordinance No. 432
Usage I Condominium Hotel Units
Umiting Conversion I Hotels to Condominium Hotels
Zoning Text Amendment 2006-088
Page 10
SECTION ~. LEGAL CONSTRUCTION. The provIsions of this Ordinance
'shall be construed as necessary to effectively carry out its purposes, which are
hereby found and declar.ed to be in furtherance of the public health, safety and
welfare.
SECTION ~. All ordinances or parts of ordinances. .iri conflict with the
provisions .of this Condominium Hotel Zoning Ordinance are hereby superseded by
this Ordinance, to the extent they are inconsistent with this Ordinanc.e:
SECTION~. EFFECTIVE DATE. This Ordinance shall take full force and
effect and be in force 30 days after passage.
SECTION 6. PUBLICATION. The City Clerk is directed to publish this
Ordinance in the manner and in the time required by law.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La
Quinta City Council held on this 5th day of December, 2006, by the following vote:
AYES: Council Members Henderson, Kirk, Osborne, Sniff, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
~
~.......'...
DON A . LP ayor
City of La QUlnta, Caiifornia
ATTEST:
Ordinance No. 432
Usage I Condominium Hotel Unlts
Umltlng Conversion I Hotels to Condominium Hotels
Zoning Text Amendment 2006-088
Page 11
APPROVED AS TO FORM:
~
Ordinance No. 432
Usage I Condominium Hotel Units
Umiting Conversion I Hotels to Condominium Hotels
Zoning Text Amendment 2006-088
Page 12
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE I ss.
CITY OF LA QUINTA )
I, VERONICA J. MONTECINO, 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.
432 which was introduced at a regular meeting on the 21st day of November,
2006, and was adopted at a regular meeting held on the 5th day of December,
2006, 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 City Council Resolution 98-109.
/
VERONICA J. MQ ECINO, CMC, City Clerk
City of La Quinta, California
DECLARATION OF POSTING
I, VERONICA J. MONTECINO, City Clerk of the City of La Quinta, California,. do
hereby certify that the foregoing ordinance was posted on #.../?, /5 ~~ ,
pursuant to Council Resolution: .
. VERONICA J. . N CINO, CMC, City Clerk
City of La Quinta, California