Ordinance extends development agreement for Desert Willow by six months.

ORDINANCE NO. 1442
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT 96-1 BETWEEN THE CITY OF PALM DESERT AND WVC RANCHO MIRAGE, INC. (FORMERLY STARWOOD) FOR THE DESERT WILLOW, EXTENDING THE TERM OF THE DEVELOPMENT AGREEMENT BY SIX (6) MONTHS TO AUGUST 27, 2026, AND FINDING THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
CASE NO. DA25-0001 (DA 96-1 AMENDMENT NO. 3)
WHEREAS, the City of Palm Desert, California (" City") is a municipal corporation, duly organized under the constitution and laws of the State of California; and
WHEREAS, the Planning and Zoning Law (Government Code Section 65000 et seq.) authorizes cities to establish by ordinance regulations for land use and development; and
WHEREAS, WVC Rancho Mirage, Inc. (formerly Starwood), represented by William Vanos ("Applicant"), submitted an application requesting approval of a Third Amendment to Development Agreement No. 96-1, which governs the Desert Willow area, a resort time-share project located at 39-500 Portola Avenue ("Project"), for the purpose of extending the term of the existing Development Agreement for a period of six (6) months to August 27, 2026, with no other modifications to the Development Agreement; and
WHEREAS, the Project Site is located within the Planned Residential District (PR-5) zoning district and is designated Golf Course & Resort Neighborhood by the Palm Desert General Plan; and
WHEREAS, Development Agreement No. 96-1 was entered into between the City of Palm Desert and WVC Rancho Mirage, Inc. (formerly Starwood) on February 27, 1997, and was adopted by the City Council through Ordinance No. 824 for an initial term of fifteen (15) years; and
WHEREAS, the Development Agreement was amended by a First Amendment in 2007 through Ordinance No. 1135, extending the term by four (4) years, and by a Second Amendment in 2015 through Ordinance No. 1289, extending the term an additional ten (10) years to February 27, 2026; and
WHEREAS, the proposed Third Amendment would further extend the term of Development Agreement No. 96-1 for an additional six (6) months to August 27, 2026, and would not authorize or result in any changes to land use, development intensity, entitlements, or physical conditions on the Project Site; and
WHEREAS, the Third Amendment does not constitute a "project" under the California Environmental Quality Act (CEQA) and alternatively is exempt from CEQA pursuant to the common sense exemption set forth in CEQA Guidelines Section 15061(b)(3), as it can be seen with certainty that there is no possibility the action may have a significant effect on the environment; and
WHEREAS, on February 3, 2026, the Planning Commission held a duly-noticed public hearing considered the staff report, recommendations by staff, and public testimony concerning this proposed Ordinance. Following the public hearing, the Planning Commission adopted Planning Commission Resolution No. 2912 to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and
WHEREAS, the City Council of the City of Palm Desert conducted a duly noticed public hearing on February 12, 2026, to consider approval of the Third Amendment to Development Agreement No. 96-1, at which time all interested persons were given an opportunity to be heard; and
WHEREAS, the City Council finds that the Development Agreement, as amended, remains consistent with the City's General Plan and complies with the requirements of Government Code Sections 65864 through 65869.5.
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. Incorporation. The recitals above are each incorporated by reference and adopted as findings by the City Council.
SECTION 2. CEQA. The City Council finds that the the proposed amendment extends the term of the existing Development Agreement and does not result in any direct physical change or a reasonably foreseeable indirect physical change to the environment. As such, the City Council finds that the proposed amendment is not a "Project" as defined by State CEQA Guidelines section 15378(a).Even if the proposed amendment constituted as a project pursuant to the California Environmental Quality Act (CEQA), the City Council finds the proposed amendment is exempt from further CEQA review pursuant to the State CEQA Guidelines Section 15061(b)(3) the common sense exemption. Here, it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment since the proposed amendment merely extends the term of the Development Agreement and does not involve any physical change in the environment. Therefore, no additional environmental review is required.
SECTION 3. Findings of Consistency. The City Council finds that Development Agreement No. 96-1, as amended, remains consistent with the Palm Desert General Plan. These findings are made pursuant to Government Code Sections 65867.5 and 65868.
SECTION 4. Approval of the Third Amendment. The City Council hereby approves the Third Amendment to Development Agreement No. 96-1 between the City of Palm Desert and WVC Rancho Mirage, Inc. (formerly Starwood), extending the term of the Development Agreement for six (6) months to August 27, 2026, in substantially the form on file with the City Clerk.
SECTION 5. Effective Date. This Ordinance takes effect 30 days after its adoption.
SECTION 6. Publication. The City Clerk is directed to certify to the adoption of this Ordinance and post or publish this Ordinance as required by law.
SECTION 7. Custodian of Records. The custodian of records for this Ordinance is the City Clerk and the records comprising the administrative record are located at 73-510 Fred Waring Drive, Palm Desert, CA.
SECTION 8. Severability. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid by a court of competent jurisdiction, such invalidity shall have no effect on the other provisions or applications of this Ordinance that can be given effect without the invalid provision or application. To this extent, the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof.
ADOPTED ON FEBRUARY 26, 2026.
/s/EVAN TRUBEE
MAYOR
ATTEST:
/s/ANTHONY J. MEJIA
CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby certify that Ordinance No. 1442 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Desert City Council on February 12, 2026, and adopted at a regular meeting of the City Council held on February 26, 2026, by the following vote:
AYES: HARNIK, NESTANDE, PRADETTO, QUINTANILLA, AND TRUBEE
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
RECUSED: NONE
/s/ANTHONY J. MEJIA
CITY CLERK
Exhibit A is available for viewing at the City Clerk's office 73510 Fred Waring Drive Palm Desert, CA 92260 or by request at cityclerk@palmdesert.gov 
March 11 2026
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