CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: February 12, 2026
PREPARED BY: Sijifredo Fernandez, Senior Planner
SUBJECT: THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT 96-1 WITH WVC RANCHO MIRAGE, INC. (FORMERLY STARWOOD) FOR THE
DESERT WILLOW WESTIN, AND FIND THE PROJECT EXEMPT FROM
THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
RECOMMENDATION:
Introduce an Ordinance entitled, “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 DESERT WILLOW WESTIN, 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.” EXECUTIVE SUMMARY:
Case No.: DA25-0001 (Development Agreement 96-1 Amendment No. 3) Related Case: Development Agreement 96-1 Amendment No. 2 BACKGROUND/ANALYSIS:
The applicant, WVC Rancho Mirage, Inc., requests approval of a Third Amendment to the existing Development Agreement 96-1 (“Development Agreement”) for the Desert Willow Westin, formerly known as “Starwood” property, located within the City of Palm Desert. The Development Agreement, originally approved in 1997 and its subsequent amendments, govern the development of a resort time-share project located at Desert Willow. The Development Agreement is set to expire on February 27, 2026.
The project, as previously approved, allows for the development of up to 300 two-bedroom lockoff time-share units within eighteen (18) multi-story buildings, along with a one-story sales and clubhouse facility of approximately 40,000 square feet and associated recreational amenities.
No changes to the approved land uses, site design, development intensity, or development footprint are proposed as part of this request.
The proposed Third Amendment maintains all existing conditions and obligations of the Development Agreement, as amended, and does not authorize any new development or expansion beyond that already approved.
The Planning Commission reviewed the proposed amendment to the development agreement and recommended approval at its February 3, 2026, meeting. 1043
City of Palm Desert
(Desert Willow Development Agreement 96-1 Amendment No. 3)
History
In February 1997, through Ordinance 824, the City of Palm Desert entered into the Development Agreement with Intrawest Resort Ownership Corporation (IROC) to allow for the development of a resort club and timeshare project. The Development Agreement was recorded in August 1997 and subsequently amended in 2007 (First Amendment) and again in 2015 (Second Amendment).
Ownership and rights under the Development Agreement were transferred from IROC to Resort Ventures, L.P., and subsequently to WVC Rancho Mirage, Inc. (formerly Starwood) in 2006, with the City’s consent. The original Development Agreement term of fifteen (15) years was extended by four (4) years through the First Amendment in 2007 and by ten (10) years through the Second Amendment in 2015.
Project Description:
The proposed Third Amendment to the Development Agreement would extend the current term by six (6) months, resulting in a new expiration date of August 27, 2026, to allow additional time for the City and the applicant to discuss, analyze impacts, and/or negotiate the terms of a potential longer-term extension, while maintaining vested development rights during those discussions. The Third Amendment does not modify the approved land uses, densities, or development standards, approve any new construction or entitlements, or commit the City to any future extension beyond August 27, 2026; all other terms and conditions of the original Development Agreement, as previously amended, would remain in full force and effect.
Table 1 – Adjacent Land Uses and Designations
Existing Uses General Plan Zoning
Project Site Time Share Golf Course & Resort
Neighborhood
Planned Residential (PR-5)
North Desert Willow Golf
Course
Golf Course & Resort
Neighborhood
Planned Residential (PR-5)
South Desert Willow Golf
Course
Golf Course & Resort
Neighborhood
Planned Residential (PR-5)
East Desert Willow Golf
Course
Golf Course & Resort
Neighborhood
Planned Residential (PR-5)
West Desert Willow Golf
Course
Golf Course & Resort
Neighborhood
Planned Residential (PR-5)
ANALYSIS:
The Development Agreement, as amended, remains consistent with the City’s General Plan and applicable zoning regulations. The proposed Third Amendment does not alter permitted land uses, development intensity, or adopted planning policies. 1044
City of Palm Desert
(Desert Willow Development Agreement 96-1 Amendment No. 3)
Environmental Assessment/Environmental Review:
The proposed amendment only 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 proposed amendment is not a “Project” as defined by State CEQA Guidelines section 15378(a). Even if the proposed amendment constituted a project pursuant to the California Environmental Quality Act (CEQA), 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 to the environment. Therefore, no additional environmental review is required.
Findings of Approval:
Findings of Approval can be found in the draft Ordinance (Attachment 1).
FINANCIAL IMPACT:
Approval of the Third Amendment will defer the realization of potential revenues from Project Amenity Fees and/or Transient Occupancy Tax that would otherwise be generated upon completion of the project. Consistent with the terms of the Development Agreement, undeveloped units are not subject to the remittance of applicable fees until development occurs.
ATTACHMENTS:
1. Draft Ordinance
2. Development Agreement Third Amendment
3. Development Agreement and Amendments 1 and 2
4. Public Hearing Notice
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ORDINANCE NO. ____
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 (PR5) 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 1047
2 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 1048
3 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 12, 2026.
EVAN TRUBEE
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby certify that Ordinance No. ____ is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Desert City Council on _________, 2026, and adopted at a regular meeting of the City Council held on __________, 2026, by the following vote:
AYES:
1049
4 NOES:
ABSENT:
ABSTAIN:
RECUSED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on ____________________.
ANTHONY J. MEJIA
CITY CLERK
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5 “EXHIBIT A”
Development Agreement Amendment No. 3
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THIRD AMENDMENT TO DEVELOPMENT AGREEMENT
THIS THIRD AMENDMENT TO DEVELOPMENT AGREEMENT (the “Third Amendment”), dated as of _________, ___, 20__ (“Effective Date”) is entered into by and between the CITY OF PALM DESERT, a municipal corporation (the “City”) and WVC RANCHO MIRAGE, INC., a Delaware corporation (“Starwood”).
RECITALS
This Third Amendment is entered into with reference to the following facts:
A. City and lntrawest Resort Ownership Corporation, a corporation organized and existing under the laws of the Province of British Columbia, Canada (“IROC''), entered into a Development Agreement dated February 27, 1997, which Development Agreement was (i) recorded on August 29, 1997 as instrument number 315819 in the official records of the County Recorder for the County of Riverside, California, (ii) amended by that certain Amendment to Development Agreement (Development Agreement 06-03) (the “First Amendment”) dated as of May 10, 2007, and (iii) further amended by that certain Second Amendment to Development Agreement (the “Second Amendment”) dated as of September 10, 2015 (as so amended, and as assigned from time to time, the “DA”). All capitalized terms used herein without definition when first used shall have the meanings set forth in the DA.
B. The DA provided IROC with a vested right to develop certain real property in the City of Palm Desert (“IROC Property”) as a resort club and time shares (the “lntrawest Project”).
C. On or about October 12, 1998, IROC assigned and conveyed to Resort Ventures, L.P., a California limited partnership (“RV”) all of IROC's rights, title, interest and obligations under and to the DA and all related project documents.
D. On or about June 26, 2006, RV sold to Starwood all of its rights, title and interest in and to that portion of IROC Property described on Exhibit “A” attached hereto and incorporated herein by this reference (the “Starwood Property”). The City gave its consent to the transfer from RV to Starwood of any and all rights and obligations under the terms of the DA to the extent that such rights and/or obligations arise from ownership of the Starwood Property.
E. On or about June 26, 2006, Starwood applied for and the City approved a conceptual master plan (hereinafter the “Starwood Master Plan”) which provides for the development of 300 two-bedroom lockoff time share units in 18 two- story, three- story, and four-story buildings and a one-story sales/clubhouse facility of approximately 40,000 square feet, along with recreational amenities (hereinafter collectively referred to as the “Starwood Project”).
F. City and Starwood now desire to amend the DA to extend the term of the DA to temporarily extend the term of the DA for a period of six (6) months, to allow the parties additional time to discuss terms for a longer-term extension.
G. City has given notice of its intention to adopt this proposed Third Amendment, has conducted public hearings thereon pursuant to Government Code Section 65867 and Palm Desert Municipal Code Ordinances Nos. 341 and 589, has taken action in accordance with the California Environmental Quality Act, and has found that the provisions of this Third Amendment and its purposes are consistent with the objectives, policies, general land uses and programs specified in the City's General Plan and any applicable specific plan.
H. The City, by electing to enter into this Third Amendment, acknowledges that the obligations of the City hereunder shall survive beyond the terms of the present City Council members of the City, and that such action will serve to bind City and future Councils to the obligations thereby undertaken. 1053
2 935702-2
I. This Third Amendment and the consent of Starwood to each of itsterms and conditions will eliminate uncertainty in planning and provide for the orderly development of the Starwood Property, eliminate uncertainty about the validity of exactions imposed by the City, and generally serve the public interest.
[Remainder of page intentionally left blank]
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AGREEMENT
NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1. The original DA specified a term of fifteen (15) years. That original term was extended for an additional four (4) years by the First Amendment and by an additional ten (10) years by the Second Amendment. The parties now acknowledge that, through no fault of either party, the economic conditions in recent years have resulted in a much slower rate of development than was originally anticipated.
Therefore, to allow the parties additional time to discuss terms for a longer-term extension of the DA, the parties agree that the term of the DA shall hereby be extended for an additional six (6) months beyond the term specified in the Second Amendment, making the new expiration date for the DA August 27, 2026.
Nothing herein shall be construed as obligating the City to grant any further extension of the DA beyond August 27, 2026.
2. Except as specifically amended by the First Amendment, Second Amendment and this Third Amendment, the DA shall remain in full force and effect in accordance with its original terms and conditions, which are hereby restated and incorporated herein by reference.
3. Miscellaneous.
3.1 Binding Effect. This Third Amendment shall bind and benefit the heirs, successors, and assigns of Starwood and the City, respectively.
3.2 No Waiver. None of the terms or provisions of this Third Amendment may be waived, altered, modified, limited, or amended except by an agreement expressly referring hereto and to which the parties to be bound consent in writing.
3.3 Governing Law. This Third Amendment shall be governed by the laws of the State of California.
3.4 Reliance on Counsel/Entire Agreement. In executing this Third Amendment, no Party has relied on any inducements, promises, or representations by any other Party or its attorney, other than those set out in this Third Amendment. This instrument constitutes the entire, integrated understanding of the Parties with respect to the subject matter contained herein, and there are no other prior or contemporaneous oral or written agreements or understandings except as expressly set forth herein.
3.5 Severability. Each and every provision of this Third Amendment is and shall be construed as a separate and independent covenant and agreement. If any term or provision of this Third Amendment or the application thereof shall to any extent be held to be invalid or unenforceable, the remainder of this Third Amendment, or the application of such term or provision to circumstances other than those to which it is invalid or unenforceable, shall not be affected hereby, and each term and provision of this Third Amendment shall be valid and shall be enforced to the extent permitted by law.
3.6 Execution in Counterparts. This Third Amendment may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument.
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4 935702-2
IN WITNESS WHEREOF, the parties hereto have entered into this Third Amendment as of the day and year first written above.
WVC RANCHO MIRAGE, INC., a
Delaware corporation
By:
Its:
WITNESS:
Signature: Signature:
Print Name: Print Name:
ATTEST:
State of Florida )
County of Orange )
On ______________, ___, 2025 before me,
personally appeared
,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) 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.
Signature:
Signature of Notary Public
Place Notary Seal Above
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document: Document Date:
Description of Attached Document
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5 935702-2
Title or Type of Document: Document Date:
Number of Pages: _____ Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer’s Name: Signer’s Name:
Corporate Officer – Title(s): Corporate Officer – Title(s):
Partner - Limited General Partner - Limited General Individual ☒ Attorney inf Fact Individual Attorney inf Fact Trustee Guardian or Conservator Trustee Guardian or Conservator Other: Other:
Signer is Representing: Signer is Representing:
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6 935702-2
IN WITNESS WHEREOF, the parties hereto have entered into this Third Amendment as of the day and year first written above.
CITY OF PALM DESERT, a
municipal corporation
By:
Its:
WITNESS:
Signature Signature
Print Name: Print Name:
ATTEST:
State of California )
County of Riverside )
On ______________, ___, 2025 before me,
personally appeared
,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) 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.
Signature:
Signature of Notary Public
Place Notary Seal Above
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document: Document Date:
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7 935702-2
Description of Attached Document
Title or Type of Document: Document Date:
Number of Pages: _____ Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer’s Name: Signer’s Name:
Corporate Officer – Title(s): Corporate Officer – Title(s):
Partner - Limited General Partner - Limited General Individual ☒ Attorney inf Fact Individual Attorney inf Fact Trustee Guardian or Conservator Trustee Guardian or Conservator Other: Other:
Signer is Representing: Signer is Representing:
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CITY OF PALM DESERT
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760-346-0611
[email protected]
CITY OF PALM DESERT
PUBLIC HEARING NOTICE
CASE NO. DA25-0001
NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD BEFORE THE CITY
COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, TO CONSIDER APPROVAL OF A
THIRD AMENDMENT TO A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PALM DESERT AND WVC RANCHO MIRAGE, INC. (FORMERLY STARWOOD) THE WESTIN
DESERT WILLOW VILLAS LOCATED SOUTHEAST OF PORTOLA AVENUE AND WILLOW RIDGE
The City of Palm Desert (City), in its capacity as the Lead Agency for this project and pursuant to the California Environmental Quality Act (CEQA), has determined the project to be exempt from further environmental review pursuant to the common sense exemption set forth in CEQA Guidelines Section 15061(b)(3).
PROJECT LOCATION: Westin Desert Willow Villas
PROJECT DESCRIPTION: The applicant, WVC Rancho Mirage, Inc. (formerly Starwood), requests approval of a Third Amendment to the Development Agreement for The Westin Desert Willow Villas extending the term by six (6) months to August 27, 2026.
PUBLIC HEARING: NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Desert, California, will hold a Public Hearing at its meeting on February 12, 2026. The City Council meeting begins at 4:00 p.m. in the Council Chamber at 73510 Fred Waring Drive, Palm Desert, California. Pursuant to Assembly Bill 2449, this meeting may be conducted as a hybrid meeting allowing public access via teleconference or in person. Options for remote participation will be listed on the Posted Agenda for the meeting at https://www.palmdesert.gov/connect/city-council.
COMMENT ON THIS APPLICATION: Those wishing to comment on this application may either appear in person at the public hearing or submit written comments, which must be received by 10:00 a.m. on the day of the hearing. Written comments should be sent to the City of Palm Desert at 73510 Fred Waring Drive, Palm Desert, California 92260, Attention: City Clerk, or emailed to:
Any challenge of the proposed project in court may be limited to raising only those issues raised at the public hearing described in this notice or in written correspondence delivered to the City Clerk at or prior to the public hearing (Government Code Section 65009[b][2]).
Si necesita ayuda con esta notificación por favor llame a la Ciudad de Palm Desert y comuníquese con Damian Olivares (760) 346-0611.
PUBLISH: THE DESERT SUN ANTHONY MEJIA, MMC, CITY CLERK
JANUARY 30, 2026 CITY OF PALM DESERT, CALIFORNIA
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