CITY COUNCIL STAFF REPORT DATE: July 15, 2015 PUBLIC HEARING SUBJECT: AN APPEAL BY 0 & M HR, LLC, OF THE HISTORIC SITE PRESERVATION BOARD ACTION TO INITIATE STUDY FOR POSSIBLE CLASS 1 HISTORIC SITE DESIGNATION AND A STAY OF DEMOLITION FOR "THE TAHQUITZ PLAZA" BUILDINGS, LOCATED AT 600 TO 750 E. TAHQUITZ CANYON WAY, ZONE REO (CASE HSPB #97). FROM: Department of Planning Services SUMMARY The City Council will consider an appeal by 0 & M HR, LLC, seeking to reverse the decision of the Historic Site Preservation Board (HSPB) to initiate a study of the Tahquitz Plaza complex for Class 1 historic designation, and to lift the associated 120- day Stay of Demolition. RECOMMENDATION 1. Open the public hearing and receive testimony. 2. Adopt Resolution No. __, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DENYING AN APPEAL BY 0 & M HR, LLC, REGARDING THE ACTIONS BY THE HISTORIC SITE PRESERVATION BOARD TO INITIATE A STUDY OF THE TAHQUITZ PLAZA COMPLEX FOR CLASS 1 HISTORIC DESIGNATION AND IMPOSING A 120-DAY STAY OF DEMOLITION FOR THE PROPERTIES LOCATED AT 600-750 EAST TAHQUITZ CANYON WAY, ZONE REO (CASE HSPB #97). BACKGROUND INFORMATION Related Relevant Actions bv Plannina, Sui/dina, Fire, etc. A building permit was issued for the buildings at 600-650 E. Tahquitz 09/25/73 Canyon Way (Permit #B-6746). A building permit was issued for the buildings at 700-750 E. Tahquitz 06/04/76 Canvon Way (Permit #B-1 01 08). ITEM NO.---:...\\?.:;..___ City Council Staff Report HSPB #97 (Appeal) July 15, 2015- Page 2 of 5 Related Relevant Actions by Planning, Building, Fire, etc. The City Council approved applications for a nine-story Hard Rock Hotel development with 499 guest rooms and associated facilities on the subject site and abutting property to the north, and certified a 10/03/07 Mitigated Negative Declaration (MND) for the project (Case # 5.1156 PD-339, TTM 35600). The Planning Commission later approved minor modifications to the project on 08/27/08. The AAC considered a request for the construction of a mixed-use development including 74 residential units, 17 live/work units, and 3,000 square feet of commercial space on the subject site and the 01/12/15 abutting property to the north (Case # 5.1361 PD-375, 3.3820 MAJ and TTM 36876, referred to as "Aberdeen"). The AAC voted to table the request pendinQ a redesiQn of certain elements of the project. The AAC voted 7 to 0 to recommend denial of the project, finding that 01/26/15 the proposed development did not conform to the Section 14 Specific Plan development standards. The Planning Commission reviewed the proposed mixed-use development (Case # 5.1361 PD-375, 3.3820 MAJ and TTM 36876) 02/25/15 and voted to continue the cases to a date uncertain pending modifications to the desiQn of the project. The Planning Commission reviewed a modified development plan for the project, which included the preservation of one of the four Tahquitz Plaza buildings. The Planning Commission voted 4 to 3 to 03/25/15 recommend denial of the revised plan, finding that the revisions still did not meet the development standards for the Section 14 Specific Plan or the City's high-rise building regulations. The City Council was scheduled to review an appeal, filed by 0 & M HR LLC, relative to the denial of the applications by the Planning 04/15/15 Commission. The Council took no action on the item due to the lack 1 of a quorum; the appeal was not rescheduled. 0 & M HR, LLC submitted a letter to withdraw all land use 05/28/15 applications associated with the Aberdeen development (Case # ------ . 5.1361 PD-375, 3.382,QJv1AJ and TTM 36876). A demolition permit application was submitted by the property owner 05/28/15 to the Department of Building & Safety for demolition of the Tahquitz Plaza complex. The Building & Safety Department notified the property owner that although the permit (#2015-1797) was ready for issue, an appeal of 06/01/15 the demolition permit had been filed and that the appeal would be heard by the Building Code Appeals Board. The Historic Site Preservation Board (HSPB) voted 7 to 0 to initiate a study of the Tahquitz Plaza complex for possible designation as a 06/09/15 Class 1 historic site. In a separate action, the board approved a 120- day Stay of Demolition to allow for the completion of the study and public hearings associated with the Class 1 designation process. 02 City Council Staff Report HSPB #97 (Appeal) July 15, 2015- Page 3 of 5 OVERVIEW OF APPEAL AND STAFF RESPONSE 5 On June 1 \ 2015, the Department of Planning Services received a nomination application for the Tahquitz Plaza complex from the Palm Springs Preservation Foundation. The application was distributed to the HSPB board members, and was discussed as Agenda Item #3C at the June 9, 2015 HSPB meeting. At the meeting, the board voted to initiate a formal study of the Tahquitz Plaza complex for consideration of the site for Ciass 1 designation, and approved a 120-day Stay of Demolition pending the outcome of the designation process. HSPB has not taken action on the study. The applicant has appealed both actions of the HSPB, and states the following as the basis for the appeal: 0 & M appeals the HSPB Actions on the grounds that the studies and investigations initiated by the HSPB are unwarranted, unnecessary, and an inappropriate use of taxpayer money. Specifically, the Buildings were the subject of prior historical studies (mostly recently, earlier this year) which determined that they were not a historic resource because they did not meet the applicable qualifications. In fact the City certified a CEQA document in 2007 and 0 & M received entitlements from the City in 2008 for a hotel project that approved the demolition of all 4 Buildings, finding that such Buildings were not historically significant. Notably, the Buildings do not even fall within the scope of the City's pending city-wide historic resources survey, since the City decided in 2014 to limit the survey to properties built prior to 1968 (the Buildings were constructed in 1974 and 1977). Staff offers the following responses to the issues raised by the appeal: 2007 CEQA Certification Regarding the CEQA document certified by City Council in 2007, a Mitigated Negative Declaration was approved for a proposed hotel project in 2007. The project called for the demolition of all of the Tahquitz Plaza buildings to allow for the construction of a nine-story hotel development with 499 guest rooms and associated hotel facilities. The environmental review in 2007 did not identify the buildings as a historic resource, and did not require mitigation. 2015 CEQA Evaluation The 2015 development plan for the subject site called for the demolition of all of the Tahquitz Plaza buildings to allow for the development of the mixed-use "Aberdeen" project, consisting of 74 residential units, 17 live/work units, and 3,000 square feet of commercial space. The application was later revised to preserve one of the Tahquitz Plaza buildings. The MND prepared for the project under CEQA stated that no adverse change in the significance of a historical resource would occur through the development of the project, citing that the 0:) City Council Staff Report HSPB #97 (Appeal) July 15, 2015- Page 4 of 5 buildings were not currently listed, had not been included in any previous studies of historic resources, and did not meet the criteria for listing. A number of comment letters received in the course of the public comment period for the MND challenged this finding, and asserted that demolition of the Tahquitz Plaza complex would result in a potentially significant impact, and that an Environmental Impact Report should be prepared to assess the impact to cultural resources. The letters challenging the MND also suggest that the complex would qualify for preservation under the City's criteria listed in Palm Springs Municipal Code (PSMC) Chapter 8.05 relative to Class 1 designations. Opposing letters were received from the applicant's attorney, and from the Agua Caliente Band of Cahuilla Indians. As the City Council did not formally act on the Aberdeen project, the MND was not certified. City wide Historic Resource Survey A contract for a city-wide historic resource survey and update was approved by City Council in July 2014. The contract was awarded to Historic Resources Group of Pasadena, California, and includes a reconnaissance-level survey of properties built through 1968 that have not been identified in previous surveys. As the Tahquitz Plaza complex was constructed after 1968, it has not been included in the city-wide historic resource survey. It should be noted that the complex was not included in the 2004 historic resource survey or any previous surveys. While the complex was not listed in the previous historic resource survey and will not be reviewed as part of the current historic resource survey project, it is not disqualified from consideration as a Class 1 Historic Site based on the age of the buildings. Palm Springs Municipal Code (PSMC) Chapter 8.05 lists the criteria for consideration of local historic designation, but does not specify a minimum age for a building or structure to be considered. In comparison, the criterion provided by the National Register for Historic Places states that " ... properties that have achieved significance within the past 50 years shall not be considered eligible ... ", but makes an exception for those properties that are of exceptional importance or significance.