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Attachment G

Palm Springs City Council
November 12, 2025

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Attachment G
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November 12, 2025
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ATTACHMENT

G

PLANNING COMMISSION STAFF REPORT

DATE: SEPTEMBER 16, 2025 PUBLIC HEARING

SUBJECT: A REQUEST BY NEXUS DEVELOPMENT INC, FOR THE ADOPTION OF

A MITIGATED NEGATIVE DECLARATION AND THE APPROVAL OF A
TENTATIVE TRACT MAP ( TTM 38843), A MAJOR DEVELOPMENT

PERMIT, AND A CONDITIONAL USE PERMIT FOR THE DEVELOPMENT OF A NINE STORY HIGH 257 -ROOM HOTEL BUILDING AND A 6,040 SQUARE FOOT RESTAURANT BUILDING LOCATED AT 847 EAST
ANDREAS ROAD IN SECTION 14 SPECIFIC PLAN AREA . (CASES #DP 2023-0017, CUP 2023-0018, AND STM 2023-0014) (GM)

FROM: DEPARTMENT OF PLANNING SERVICES

SUMMARY:

This is a request for the Planning Commission to consider a Tentative Tract Map for a one (1) lot subdivision for condominium purposes, a Major Development Permit and associated Mitigated Negative Declaration for the redevelopment of a 5.64-acre existing paved parking lot site with a nine-story resort hotel, a residential building consisting of 125 hotel rooms and 132 residential condo units , and a 6, 040-square foot freestanding restaurant building. A Conditional Use Permit (CUP) is required for a High-Rise Building per Section 93.04.00 of the Palm Springs Zoning Code (PSZC) and pool bar and rooftop social club in the Section 14 Specific Plan. The proposed lot is located on leased land and owned by Nexus Development.

RECOMMENDATION:

That the Planning Commission take the following actions:

1. Adoption of the Mitigated Negative Declaration.

2. Approve the Tentative Tract Map (STM 2023-0014).

3. Approve a Major Development Permit (DP-2023-0017).

4. Approve a Conditional Use Permit (CUP 2023 -0018) for a high-rise building and pool bar and rooftop social club per the Section 14 Specific Plan.

BUSINESS PRINCIPAL DISCLOSURE:

The applicant has submitted a Business Disclosure form stating that the property is owned by Nexus Development Inc., as described in the attached form.

Planning Commission Staff Report
September 16, 2025 – Page 2 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

PROJECT DESCRIPTION:

The Nexus Hotel and Residential Project proposes redeveloping an existing paved parking lot with a nine-story resort hotel and residential building consisting of 125 hotel rooms and 132 residential condo minium units which will be associated with the hotel and have access to hotel amenities and services; and a 6,040 square foot standalone restaurant.

The hotel also includes a kitchen and “back of house” areas including offices, housekeeping and similar operation-related space. In total, the Project proposes 374,933 square feet (SF) of hotel and residential building space, 6,040 SF of standalone restaurant space, and 174,933 SF of parking garage space.

The hotel portion of the building will be seven-stories, and the residential portion will be nine-stories The Project includes onsite amenities catering to visitors and residents including an onsite parking structure and garage, indoor event space and an event lawn, indoor meeting space, three pools and a pool bar, a hotel ground floor restaurant and bar, a rooftop terrace and social club on the hotel’s 7th floor, and ground floor residents’ lounge and fitness center in the residential building.

The hotel portion offers up to 125 hotel rooms will be located in the west wing of the main building located on the 2nd through 6th floors; the 7th floor consists of a 3,525 SF social club and club terrace. The hotel also includes a 1,716 SF fitness center on the 2 nd floor. The maximum height of the hotel portion of the Project, excluding the mechanical units, will be 85 feet 8 inches (seven stories).

The residential portion offers up to 132 residential condo units located in the east wing of the main building. On a 5.65-acre site, this represents a density of 24 DU/AC, consistent with the allowable density of 30 DU/AC for the TRC designation. Residential units are located on the 1st (ground level) through 9th floors. The maximum height of the residential portion is 99’ 8” (9 stories), excluding the mechanical equipment. The standalone restaurant is single-story and located on the southwest quadrant of the site.

Tentative Tract Map
A Tentative Tract Map (#38843) to merge a total of three (3) existing smaller parcels into one (1) parcel equaling 5.64-acres. The other purpose of the T TM will be for condominium purposes consisting of 132 residential units. These units will be managed by the hotel and can be occupied on a short-term basis.

Major Development Permit
The purpose of a Major Development Permit is to ensure that the proposed development is consistent with the Section 14 Specific Plan, and the Palm Springs Zoning Code (PSZC) per regulations, and policies of the City; that the location, height, massing, and placement of the proposed development is consistent with applicable standards; and that the necessary infrastructure is in place to serve the proposed development.

Planning Commission Staff Report
September 16, 2025 – Page 3 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

BACKGROUND AND SETTING:

Related Relevant City Actions by Planning, Fire, Building, etc… 1/13/2025 Initial Study resulting in a Mitigated Negative Declaration was circulated for a 20-day review period ending on 2-3-25
3/25/25 Tribal Council of the Agua Caliente Band of Cahuilla Indians reviewed the project and forwarded a set of conditions of approval to the City Council. 8/27/2025 The Initial Study Response to Comments posted to City website

Property Posting
7/20/23 Property posted with “Project Under Consideration” sign

DETAILS OF APPLICATION REQUEST:

Site Area

5.64-Acres

General Plan, Zoning and Land Uses of Site & Surrounding Areas Existing General Plan
Designations
Existing Zoning
Designation
Existing Land Use
Site TRC (Tourist-Resort) R-A (Resort Attraction) Parking Lot North HDR (High Density
Residential)
HR (High Density
Residential)
Plaza Villas Condos
South TRC (Tourist-Resort) R-E-O (Retail-
Entertainment-Office)
Kaptur Court
East TRC (Tourist-Resort) R-E-O (Retail-
Entertainment-Office)
Renaissance Hotel
West TRC (Tourist-Resort) R-A (Resort Attraction) Hilton Hotel

Pursuant to Chapter 6: Land Use Regulations and Development Standards of the Section 14 Specific Plan the following standards apply:

Standard Required/ Allowed Provided Comply
Hotel Density 86 rooms per acre 45 rooms per
acre
Y
Building Height A maximum height of 35 feet shall
be permitted, except for high-rise
buildings subject to a CUP.

Maximum height shall be 100 feet

99.8 Feet Y
(with CUP)
Open Space For high-rise buildings a minimum of
40% of site area shall be usable
landscaped open space and outdoor
living/rec area
63% open
space
Y
Planning Commission Staff Report
September 16, 2025 – Page 4 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

Compatibility with
surrounding
development
The rear and side walls of the
building visible from adjacent lots or
streets shall be finished. Parking
garages shall be screened similar in
color, material, and detail as main
building

Building and garage
finished on all sides

Y
Building Location Buildings to be located as close
as possible to required front
setback

Front yard setback at
62 feet for main hotel

Y
Ground Floor
Façade
Treatment
Visual interest along the ground
floor wall in the form of
pedestrian entrances, display
windows, a pedestrian friendly
environment.

Hotel and residence drop-
off areas with extensive
landscaping and
restaurant outdoor seating
provide visual interest at
street level

Y
Front Yard
Setback

Minimum setback shall be 20 feet 62 feet on E. Andreas
35 feet on El Segundo

Y
Features
required within
front setback
At least 50% of the front yard
setback shall be decorative
landscaping, the remainder
decorative paving

Extensive landscaping in
street frontages with
decorative paving for
drop-off areas

Y
Side Yard
Setback
A minimum side yard shall be 20
feet
26 feet Y
Rear Yard
Setback
A minimum rear yard shall be 20
feet
30 Feet Y
Setbacks for
High-Rise
Buildings
High-rise buildings in Section 14
are exempt from PSZC Sec

93.04.00. However, high-rise
buildings shall have a minimum
setback of one (1) foot of horizontal
setback distance from any
residential district for each one (1)
foot of vertical rise of the building.

Additional site-specific setbacks
may be imposed through the CUP
process based on the relationship
of the high-rise building to its
surroundings. (per 93.04.00(C)(3)
132 feet to nearest
residential development
(Plaza Villas)

Y
Minimum Lot
Area
Lots shall be a minimum of two (2)
gross acres
Site consists of 5.64 acres Y

Planning Commission Staff Report
September 16, 2025 – Page 5 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

ANALYSIS:

Section 14 Specific Plan/Zoning
The project is located within the boundaries of the Section 14 Specific Plan. Under the Plan, the Project is exempt from the City’s regulations as provided in its zoning codes and subject to a separate set of development regulations and standards. Per the Specific Plan guidelines, the Project will not exceed the maximum allowed height of 100 feet, at least 40% of the planning area will be allotted for open space, and proper design features will be implemented to ensure the Project’s integration into the existing natural and built environment. The proposed hotel, residential, and restaurant land uses are allowed under permitted and conditionally permitted developments in the Resort Attraction designation.

The Project includes a Land Use Permit (LUP) and a Conditional Use Permit (CUP). The LUPs are for the standalone, full-service restaurant, hotel restaurant and bar, and coffee shop. The CUP is for the pool bar and roof top social club. All the proposed commercial/retail shops are either permitted or conditionally permitted with applicable permits. The Project is consistent with the Specific Plan land use and developed guidelines.

The Project design and components adhere to the development standards established by the Section 14 Specific Plan for commercial development, per its RA designation.

The Project will be subject to the following Specific Plan regulations and design standards:
• Building Height: No onsite structure, classified as a high-rise building, shall exceed 100 feet, not including equipment on the building. • Open Space: At least 40 percent of the site area shall be developed for usable landscaped open space and outdoor living and recreation area. • Compatibility: The rear and side walls of buildings which are visible from adjacent lots or streets shall be treated with an equivalent design quality as the front wall. The walls of any parking structure shall be similar in color, material, and architectural detail with the building it serves.
• Building Location: Buildings should be located as close as possible to the required front setback.
• Ground Floor Façade Treatment: Visual interest shall be provided with decorative walls, trellises, landscaping, and other devices for any building not within 25 feet of a primary frontage (i.e. Tahquitz Canyon Way and Indian Canyon Drive).

Setback for High-Rise Buildings: A minimum setback of one (1) foot of horizontal setback distance from any residential district for each one (1) foot of vertical rise of the building.

The Agua Caliente Band of Cahuilla Indians Tribal Council reviewed the proposal at the March 25, 2025 meeting and recommends approval of the project subject to the following conditions:

1. All Washingtonia Robusta/Mexican Fan Palms shown on the Preliminary Planning Commission Staff Report
September 16, 2025 – Page 6 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

landscape plans shall be removed and or/replaced with Washingtonia Filifera/California Fan Palms.

2. The presence of an approved Agua Caliente Native American Cultural Resource Monitor shall be present during any ground disturbance activities (including archeological testing and surveys). Should buried cultural deposits be encountered, the Monitor may request that destructive construction halt and the Monitor shall notify a qualified Archaeologist (Secretary of the Interior’s Standards and Guidelines) to investigate and, if necessary, prepare a mitigation plan for submission to the State Historic Preservation Officer and the Agua Caliente Tribal Historic Preservation Office.

Site Plan:

The proposed project is in the Section 14 Specific Plan area that has its own land use regulations and development standards which the project has been evaluated against.

The specific plan is meant to provide guidelines for uses that builds upon the existing strengths of the area, offers the desired elements that are currently missing in Downtown and comprehensively coordinates and connects the areas development. The large undeveloped 5.64-acre lot allows for the type of large -scale resort hotel development meant to support the adjacent convention center and other tourist activities in the City.

The proposed plan meets all the standards set out in the Section 14 specific plan. The site plan places the main hotel and residence buildings in an “L” shape configuration around the outdoor amenities including multiple pools , event spaces, and patios. The placement of the large structure reflects the rectangular nature of the lot meeting the setbacks for a high-rise building. The amenities portion on the ground floor will be internal to the resort hotel with two pools separated by the event lawn and flex/ballroom. The main entrance to the hotel/residence’s is on East Andreas Road with two separate drop- off areas for each component. The five (5) level garage is located on the southeast side of the building with little visual impact on the street. A 6,040 -square foot freestanding restaurant will front North Calle El Segundo with a separate drop-off motor court. A 5,023- square foot ballroom/Flex Space is placed at the south center portion of the site . A two- way driveway wraps the site to the south providing back of house operations, garage deck parking access, and fire access . The project as designed meets the development standards and does not require any variances or deviations.

Access and Circulation
The Project current site boundaries are defined by East Andreas Road to the north, Kaptur Court to the south, an alley way to the east, and North Calle El Segundo to the west. The Project proposes the development/improvement of two alley ways along the site’s eastern and southern perimeter which are to be accessible from N orth Calle El Segundo and East Andreas Road. Access to the Project site is as follows:

Planning Commission Staff Report
September 16, 2025 – Page 7 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

Parking:

The parking standards are set forth in the Section 14 Specific Plan and the proposed project consists of a hotel, condominium units, meeting spaces, restaurant, rooftop social club, fitness center, and various back -of-house operations. Parking is to be provided in an underground garage for 100 spaces below the hotel and joint lobby area. The remaining 400 spaces will be provided in a five (5) level garage attached to the residential tower. The parking is calculated with joint use meaning that a hotel guest /resident may use the on- site restaurant, ballroom, or social club and occupy one designated parking space. Each of the intended uses has been analyzed based upon the number of units and the square footages for each ancillary use as follows:

Parking Parking Ratio Spaces
Hotel

• 1 space per room, up to 50
• .75 space per room over 50
50 spaces
56 spaces

Residential • 1.25 for 1 BR unit
• 1.50 for 2 BR units
• 2.25 for 3 BR units
• 1 guest space for every 4 units

50 spaces
78 spaces
68 spaces
31 spaces
Restaurant/Ballroom • 1 space per 60 sf of restaurant and other areas + additional 20% for employees
• 1 space for 30 sf of largest public space
(ballroom)

46 spaces

120 spaces
Total Parking Required
Total Parking Provided
497 spaces
500 spaces

Onsite Parking
• Underground Garage: Located underneath the hotel portion of the main building, or northeast portion of the planning area, the underground garage consists of 100 standard parking spaces with elevator access to the ground floor. The garage will be utilized by the restaurant valet, visitors, and the public. • Parking Structure: Located on the southeast corner of the site, and accessed at two points, one on the west side of Alley Way bounding the site’s eastern side and the second access point on the north side of the Alley Way bounding the site’s southern side. The parking structure consists of five (5) levels, with the ground level providing 80 parking spaces, level 2, 3, and 4 each providing 85 standard parking spaces, and level 5 providing 65 parking spaces, for a total of 400 spaces. The structure will be attached to the residential portion of the main building, providing residents with direct access.

Planning Commission Staff Report
September 16, 2025 – Page 8 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

Mass and Scale – High-Rise Consideration
The proposed building will have a maximum height of one hundred (100) feet equaling nine-stories. A mechanical service area and elevator shaft will extend an additional fifteen (15) feet above the top roof line. The Section 14 Specific Plan permits buildings of the proposed height with a Conditional Use Permit per Section 94.02.00 of the PSZC and approved by the Planning Commission. The development standards provide greater setbacks for the taller building at 132 feet from the nearest residential development with extensive landscaping and open space along East Andreas Road and North Calle El Segundo. The location of the building adjacent to the Plaza Villa condominium complex requires the building to have a greater setback. The attached exhibits include a solar study showing how the building’s height will cast shadows at different times of the year.

The greatest shade will occur at the winter solstice when the sun is at its lowest point per the study.

The Section 14 Specific Plan as detailed in the intent of the document states that development should achieve the following goals:
• Maximize and coordinate the development potential of Indian Trust and fee lands in Section 14.
• Ensure compatibility with existing, proposed, and planned development in the Downtown area.
• Encourage the revitalization of existing uses and as well as the development of new ones.
• Plan for infrastructure (streets and utilities) to support the proposed uses. • Encourage high-quality development, architecture, and landscape continuity.

The proposed resort hotel meets the intent of the Section 14 Specific Plan as the project is compatible with adjacent hotel s and Downtown developments; provides for the redevelopment of the existing parking lot; and proposed building design is of high-quality with the use of superior building materials, and extensive landscaping/ open space and the proposed building height is consistent with the Specific Plan.

Building Design and Landscaping:

Architectural details and landscaping will be reviewed by the Architectural Review Committee (ARC) upon approval of the Development Permit by the Planning Commission.

ENVIRONMENTAL ASSESSMENT

An Initial Study (IS) resulting in a Mitigated Negative Declaration (MND) was available for public viewing with a 20-day comment period beginning on January 13, 2025 and ending on February 3, 2025.

The Initial Study analyzed the following: Aesthetics, Air Quality, Biological Resources, Cultural Resources, Energy Resources, Geology and Soils, Greenhouse Gas Emissions, Hazardous Materials, Hydrology and Water Quality, Noise, Population and Housing, Planning Commission Staff Report
September 16, 2025 – Page 9 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

Public Services, Transportation, Tribal Cultural Resources, and Utilities and S ervice Systems.

Less Than Significant Impacts:

From the conclusions of the IS the following were determined to have less than significant impacts and no further mitigation measures are required: Aesthetics, Energy, Hazards and Hazardous Materials, Noise, Hydrology, Public Services, and Utilities and Service Systems.

Less Than Significant Impacts with Mitigation Measures:

From the conclusions of the IS the following were determined to have less than significant impacts if further mitigation measures are implemented: Biological Resources, Cultural Resources, Geology and Soils, and Transportation.

The IS concluded that the implementation of the Mitigation Measures the project impact can be reduced to less than significant.

RESPONSE TO COMMENTS (RTC)
The review of the Initial Study for the project include d a 20-day comment period for the release of the document and the City received a total of five (5) letters of comments during the review period. Per CEQA Guidelines, the written comments received during the public review period for an IS must be responded to in writing. The responses to comments must provide reasonable, good faith analyses regarding all significant environmental issues raised in the IS comments. The complete reply is included in the Response to Comments attached to this staff report (see Attachments).

FINDINGS – TENTATIVE TRACT MAP (CASE STM 2023-0014)

Pursuant to Section 66474 of the Subdivision Map Act, the following findings must be made relative to the proposed map:

1. The proposed Tentative Tract Map or Tentative Parcel Map is consistent with all applicable general and specific plans.

The Tentative Tract Map (TTM) will merge a total of three (3) existing smaller parcels into one (1) parcel for condominium purposes. The final lot will equal 5.64-acres in size for the purpose of future hotel and residential condominium development consistent with the Section 14 Specific Plan land use designation of Tourist-Resort-Commercial (TRC). The Tourist-Resort-Commercial (TRC) land use provides for large- scale resort hotels including a broad range of ancillary uses principally serving tourists. It is intended that the primary use in any TRC area shall be hotel/tourist -related uses; if residential uses are proposed (timeshares, condominiums) they shall be secondary use to the proposed hotel use.

Specific goals and policies of the TRC include:

Planning Commission Staff Report
September 16, 2025 – Page 10 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

GOAL LU1: Establish a balanced pattern of land uses that complements the pattern and character of existing uses, offers opportunities for the intensification of key targeted sites, minimizes adverse environmental impacts, and has positive economic results.

LU1.1 Ensure that development meets or exceeds requirements and standards specified within each land use designation.

LU1.4 Encourage the expansion of existing facilities or the introduction of new uses that are of significant importance and contribute exceptional benefits to the City.

Consistency Analysis: The TTM resulting lot allows for hotel and residential development in the City’s Downtown core, extending the resort hotel inventory in the City’s resort center. The Section 14 Specific Plan identifies this site for hotel attraction development, and the Project implements that land use. The Project is designed consistent with the development standards of the Specific Plan and consists of detailed architecture and landscape architecture plans that will enhance the character of the Downtown area. The Project will also generate new sales, transient occupancy and property tax, providing revenue for General Fund expenditures to benefit existing and future City residents. The proposed project will meet the stated goals above and the finding has been met.

2. The design and improvements of the proposed Tentative Parcel Map are consistent with the zone in which the property is located.

The subject 5.64- acre parcel is currently zoned RA (Resort Attraction) which allows for large-scale resort hotel complexes, hotels, and major commercial attractions integrated with retail and entertainment facilities. The approval of the TTM will allow for development consistent with the RA zone and land uses per the TRC designation. Any new project would be consistent with underlying zoning and General Plan Land Use designation and continue through the required entitlement process reviewed by the Planning Commission and the finding has been met.

3. The site is physically suited for this type of development.

The parcel is physically suited for a large-scale resort hotel/residences development as it is currently an undeveloped and underutilized parking lot. The 5.64-acre parcel located in Section 14 adjacent to the Convention Center and Downtown area is an appropriate location for the propose project. The vacant lot is relatively flat with a gentle slope downward from north to south. The parcel is adequate in size to accommodate the intended use that would be consistent with the designated land use. Access will be via existing streets of East Andreas Road and North Calle El Segundo. Proposed conditions of approval will address all required site modifications consistent with City Standards and will assure safe access to the development and the finding has been met.

Planning Commission Staff Report
September 16, 2025 – Page 11 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

4. The site is physically suited for the proposed density of development.

The Tentative Tract Map will allow the parcel to be developed with a nine-story resort hotel and residential building consisting of 125 hotel rooms and 132 residential condominium units which will be associated with the hotel and have access to hotel amenities and services; and a 6,040 square foot stand-alone restaurant. The proposed TTM will result in the merger of t hree (3) existing smaller parcels into one (1) parcel. The final lot will be

5.64-acres and is physically suited for the proposed development at a density consistent with the TRC land use designation. The proposed project represents a density of 25 DU/AC, consistent with the allowable density of 30 DU/AC in the TRC designation. The approval of the TTM will allow for the development in a manner that is consistent with the TRC land use and development standards of the RA zone and the finding has been met.

5. The design of the subdivision is not likely to cause environmental damage or substantially and avoidably injure fish, wildlife, or their habitats.

The subject site is a flat existing parking lot. The TTM project has been analyzed in an Intial Study (IS) resulting in a Mitigated Negative Declaration (MND) as part of the development process. The approval of the TTM into one (1) parcel with intended development has the potential to have impacts on the environment, however as the IS has determined that implementation of mitigation measures will reduce any impacts to less than significant as a result of the proposed tract map and the finding has been met.

6. The design of the subdivision or type of improvements is not likely to cause serious public health problems.

Any development of the site would be consistent with Section 94.04 of the Palm Springs Zoning Code requiring further review by the Planning Commission and Architectural Review Committee for proposed building elevations, site and landscape plans. Any development will be designed in a way that meets and exceeds City Standards and will include connections to all public utilities including water and sewer systems. The development will have appropriately designed and constructed streets and internal private driveways built to City standards providing ingress/egress.

7. The design of the subdivision or type of improvements will not conflict with easements, acquired by the public at large, for access through or use of the property within the proposed subdivision.

The Tentative Tract Map shows a vacated street named Calle A lvarado which will be incorporated into the proposed development. There are no other easements as shown on TTM 38843. Any proposed development will need to take into consideration any easements and propose a design that does not encroach, and the finding has been met.

Planning Commission Staff Report
September 16, 2025 – Page 12 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

FINDINGS – MAJOR DEVELOPMENT PERMIT APPLICATION (CASE DP 2024-0002)

Section 94.04.01(D) of the Palm Springs Zoning Code (PSZC ) requires an evaluation of the proposed development. Staff has analyzed the findings in order below.

1. The proposed project is consistent with the General Plan and any applicable specific plan;
The development proposes constructing a nine-story resort hotel and residential building consisting of 125 hotel rooms and 132 residential condominium units which will be associated with the hotel and have access to hotel amenities and services; and a 6,040 square foot stand-alone restaurant. The project is in an area designated as Tourist - Resort-Commercial (TRC) per the Section 14 Specific Plan with a corresponding zoning classification of RA (Resort Attraction). The project as proposed is a by -right use in the RA zone with a Conditional Use Permit for high- rise building consideration and is consistent with the Section 14 Specific Plan and the development also supports the following goals and policies:

GOAL LU7: Maintain and enhance the City’s status and image as a premier resort destination and cultural center in the Coachella Valley.

LU7.1 Encourage a diversity of high-quality commercial uses, attractive to both the resident and the visitor, including retail, entertainment, cultural, and food sales, in appropriate areas of the City.

LU7.2 Ensure that visitor-serving uses such as hotels, restaurants, and entertainment uses that generate high levels of activity are developed in close proximity to the Palm Springs Convention Center.

Consistency Analysis: The Project will result in a first class resort hotel with all of the amenities expected in Palm Springs’ resort environment. It will also include residential development in the City’s core, and provide new retail and dining opportunities for the City. The Project will also provide a new hotel to support the Convention Center which will be within an easy walking distance to the conference rooms and activities at that location.

GOAL LU8: Strategically introduce mixed- and multi-use infill projects in underutilized areas to create neighborhood activity centers serving the day -to-day needs of nearby residents, employees, and visitors.

LU8.1 Encourage new mixed/multi-use developments in areas that are currently vacant or underutilized.

LU8.4 Allow designated mixed/multi-use areas to contain buildings that are taller than the surrounding neighborhood.

LU8.7 Onsite parking is encouraged to be accessed from side streets or public alleys to minimize traffic impacts on major streets and to avoid interruption in the street-front design of commercial centers.

Planning Commission Staff Report
September 16, 2025 – Page 13 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

Consistency Analysis: The Project will provide resort, commercial and residential land uses in the City’s central core, and eliminate an under-used parking lot. The structures proposed will be consistent with the high- rise provisions of the Section 14 Specific Plan, and introduce a parking structure with alleyway access.

2. The proposed uses are in conformance to the uses permitted in the zone district where the site is located, and are not detrimental to adjacent properties or residents; The subject parcel is zoned RA and the proposed Resort Hotel/Residences is a permitted use per the Section 14 Specific Plan and t he proposed project is compliant with the existing land use and zoning designations . The area around the site consists of other hotel, office, retail, and Tribal casino buildings containing a variety of uses that are consistent with the proposed project and the finding has been met.

3. The proposed project is in conformance to the property development standards for the zone district where the site is located;
The proposed application conforms to current development standards as to overall area, density, building height (with the approval of a Conditional Use Permit) , and required landscaping including the increased setbacks for a high -rise building adjacent to a residential development and the finding has been met.

4. The proposed height and massing of the project is consistent with applicable standards and compatible with adjacent development;
The proposed building will have a maximum height of 99.8’ feet equaling nine- stories.

The Section 14 Specific Plan permits buildings of the proposed height with a Conditional Use Permit per Section 94.02.00 of the PSZC and approved by the Planning Commission.

The development standards provide greater setbacks for the taller building at 132 feet to the nearest residential development with extensive landscaping and open space along East Andreas Road and North Calle El Segundo. The proposed resort hotel meets the intent of the Section 14 Specific Plan as the project is compatible with adjacent hotels and Downtown developments and the finding has been met.

5. The proposed setbacks and placement of the building are consistent with applicable standards and consistent with setbacks of adjacent buildings; The proposed project has greater setbacks meeting the standards in the Section 14 Specific Plan for high-rise buildings. The site plan places the main hotel and residence buildings in an “L” shape around the outdoor amenities including multiple pools, event spaces, and patios. The main entrance to the hotel/residence’s is on East Andreas Road with two separate drop-off areas for each component. The five (5) level garage is located on the southeast side of the building with little visual impact on the street. A 6,040-square foot freestanding restaurant will front North Calle El Segundo with a separate drop- off motor court. A 5,023 -square foot ballroom/Flex Space is placed at the south center Planning Commission Staff Report
September 16, 2025 – Page 14 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

portion of the site. A two- way driveway wraps the site to the south providing back of house operations, garage deck parking access, and fire access.

6. The site for the proposed project has adequate access to streets and highways properly designed and improved to carry the type and quantity of traffic to be generated by the proposed uses, and the design for the site plan enhances or continues the city’s existing grid in accordance with the Circulation Plan of the General Plan; The Project current site boundaries are defined by East Andreas Road to the north, Kaptur Court to the south, an Alley Way to the east, and N orth Calle El Segundo to the west. The Project proposes the development/improvement of two Alley Ways along the site’s eastern and southern border which are to be accessible from N orth Calle El Segundo and East Andreas Road. The main entrance to the hotel/residence’s is on East Andreas Road with two separate drop-off areas for each component. The project utilizes existing streets and will require minimal additions to current road infrastructure and the finding has been met.

7. On-site circulation conforms to minimum standards, and accommodations are made for safe on-site pedestrian circulation;
The internal circulation system will consist of a main drop-off area for the hotel and residences along East Andreas Road. An ally way will be added on the east and south sides of the project providing access for back of house operations and the parking garage.

The resort hotel will have multiple pedestrian points allowing visitors and residences access to the adjacent street sidewalks.

8. Landscape areas and open space are in conformance to applicable standards, and the design of stormwater management features are appropriately integrated with other elements of the site design;
The project landscape will include drought‐tolerant trees (36 and 24‐inch boxes), 12‐foot palms, and ground covers typically found in the region, such as Acacia, Bottle Tree, fruitless olive, desert museum palo verde, African Sumac and Mexican fan palms. Shrubs and accent plantings proposed for the project include agave, Yucca, Natal Plum, and Lantana. Fractured rock, and decomposed granite will provide ground cover. Exterior irrigation will use drip or micro ‐spray applicators. The Architectural Review Committee (ARC) will review the final landscape plan.

9. Public infrastructure, such as water, sewer, and similar utilities, is adequate to serve the proposed project;
The Desert Water Agency (DWA) will provide water and City sewer service for the project property. Existing water infrastructure is located adjacent to the project, along the surrounding roadways. Sewer connections to the site will occur in the adjacent streets and Planning Commission Staff Report
September 16, 2025 – Page 15 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

solid waste will be handled by Palm Springs Disposal Service. Based upon these existing and planned infrastructure improvements the project will meet the finding.

10. Based on environmental review, the proposed project either has no potentially significant environmental impacts, any potentially significant impacts have been reduced to less than significant levels because of mitigation measures incorporated in the project, or a Statement of Overriding Considerations has been adopted to address unmitigated significant environmental impacts;
An Initial Study (IS) resulting in a Mitigated Negative Declaration was prepared and made available for public viewing with a 20-day comment period beginning on January 13, 2025 and ending on February 3, 2025. The IS has determined that impacts can be mitigated to less than significant levels for Biological Resources, Cultural Resources, Geology and Soils, Transportation. All other impacts are determined to be less than significant.

11. The proposed project has no unacceptable adverse effects on public welfare, health or safety.

The proposed resort hotel/residences have been analyzed in the IS and will require the implementation of mitigation measures that will reduce impacts on public welfare, health and safety to a level less than significant as envisioned by CEQA.

FINDINGS – CONDITIONAL USE PERMIT (CUP2023-0018)

Sections 94.02.00 and 93.04.00 of the Palm Springs Zoning Code (PSZC) requires that the following conditions be met in order to approve a Conditional Use Permit:

1. That the use applied for at the location set forth in the application is properly one for which a conditional use permit is authorized by this Zoning Code.

The parcel is physically suited for a large-scale resort hotel/residences development as it is currently an undeveloped and underutilized parking lot. The 5.64-acre parcel located in Section 14 adjacent to the Convention Center and Downtown area is an appropriate location for the propose project and t he request for a CUP for a high- rise building is consistent with the Specific Plan. The parcel is adequate in size to accommodate the intended high-rise use that would be consistent with the designated land use. Access will be via existing streets of East Andreas Road and North Calle El Segundo. Proposed conditions of approval will address all required site modifications consistent with City Standards and will assure safe access to the development and the finding has been met.

2. That the use is necessary or desirable for the development of the community, is in harmony with the various elements or objectives of the general plan and is not detrimental to existing uses or to future uses specifically permitted in the zone in which the proposed use is to be located.

Planning Commission Staff Report
September 16, 2025 – Page 16 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

The Section 14 Specific Plan designation of the subject property is Tourist -Resort- Commercial (TRC) with an underlying zoning of RA (Resort Attraction). According to the Specific Plan, the TRC land use designation is intended to accommodate for large-scale high-rise resort hotel complexes, hotels, and major commercial attractions integrated with retail and entertainment facilities. The approval of the CUP will allow for high- rise and restaurant development consistent with the RA zone and la nd uses per the TRC designation. The redevelopment of the site will meet the following Section 14 Goals and Actions:

GOAL LU1: Establish a balanced pattern of land uses that complements the pattern and character of existing uses, offers opportunities for the intensification of key targeted sites, minimizes adverse environmental impacts, and has positive economic results.

LU8.1 Encourage new mixed/multi-use developments in areas that are currently vacant or underutilized.

LU8.4 Allow designated mixed/multi-use areas to contain buildings that are taller than the surrounding neighborhood.

LU8.7 Onsite parking is encouraged to be accessed from side streets or public alleys to minimize traffic impacts on major streets and to avoid interruption in the street-front design of commercial centers.

Consistency Analysis: The Project will provide resort, commercial and residential land uses in the City’s central core, and eliminate an under-used parking lot. The structures proposed will be consistent with the high- rise provisions of the Section 14 Specific Plan, and introduce a parking structure with alleyway access.

Based upon the above enumerated findings relating to the General Plan Goals and Actions the findings have been met.

3. That the site for the intended use is adequate in size and shape to accommodate such use, including yards, setbacks, walls or fences, landscaping and other features required in order to adjust such use to those existing or permitted future uses of land in the neighborhood.

The 5.64-acre project site is located within the Section 14 Specific Plan which is an area designated for resort hotels, restaurants, Tribal casino and other entertainment venues. The redevelopment of the underutilized parking lot for the construction of a nine-story 257-room hotel/residences is appropriate for a site that is fully urbanized with completed street access from East Andreas Road and North Calle El Segundo. The Section 14 Specific Plan permits buildings of the proposed height with a Conditional Use Permit per Section 94.02.00 of the PSZC and approved by the Planning Commission. The development standards provide Planning Commission Staff Report
September 16, 2025 – Page 17 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

greater setbacks for the taller building at 132 feet to the nearest residential development with extensive landscaping and open space. The proposed development will provide a total of 500 parking spaces which meets the required off-street standards and will accommodate the use and associated activity.

Supporting technical studies for the Initial Study (IS) have been provided stating that the proposed site plan can adequately accommodate the traffic and circulation and the findings have been met.

4. That the site for the proposed use relates to the streets and highways properly designed and improved to carry the type and quantity of traffic to be generated by the proposed use.

The site is within the Section 14 Specific Plan in an area comprised of multiple large resort hotels one block from the Major Throughfare of East Tahquitz Canyon Way. Access to the site will be from traffic -controlled intersections and will primarily use East Andreas Road and North Calle El Segundo leading to the hotel drop-off points. An ancillary alley way will wrap the site to the south and provide access to the parking garage and back of house operations. Based on the project specific traffic report and separate Vehicles Miles Traveled ( VMT) analysis the surrounding road network will be able to handle the anticipated vehicle trips. The proposed project will meet all development standards for the RA zone per setbacks, heights (with approval of a CUP), lighting, and landscaping. The location of the resort hotel/residences is an appropriate location as access onto the site will be from existing roadways. All surrounding intersections are four way stops with nearby larger roads fully signalized with the appropriate number of through and turning lanes. The introduction of a resort hotel/residences plus full -service restaurant would not require additional traffic mitigation measures as the road network is fully built out and does n ot require modification to accommodate the anticipated traffic volumes. Pedestrian access will be provided via existing sidewalks, and the finding has been met.

5. That the conditions to be imposed and shown on the approved site plan are deemed necessary to protect the public health, safety and general welfare and may include minor modification of the zone’s property development standards.

The conditions imposed as part of this Conditional Use Permit are intended to minimize impacts on the surrounding community. The CUP for a high-rise building and pool bar and rooftop social club approval will work in conjunction with the Major Development Permit and Major Architectural approval by the City. Conditions of Approval will include Mitigation Measures as identified in the IS and requirements from the Agua Caliente Band of Cahuilla Indians Tribal Council.

Planning Commission Staff Report
September 16, 2025 – Page 18 of 18
Case STM 2023-0014, DP 2023-0017 & CUP 2023-0018 – Nexus Hotel

ENVIRONMENTAL DETERMINATION:

An Initial Study (IS) pursuant to th e California Environmental Quality Act (CEQA) has been prepared for the proposed project resulting in a Mitigated Negative Declaration (MND) and will be acted upon by the Planning Commission.

CONCLUSION:

The proposed project generally conforms with the Section 14 Specific Plan, the General Plan, and zoning designation. The proposal is for a Tentative Tract Map as a one (1) lot subdivision for condominium purposes, a Major Development Permit as a by-right use to construct a 257-room resort hotel and residences, and a Conditional Use Permit for a high-rise building of nine- stories and a pool bar and rooftop social club on 5.64-acres.

The Section 14 Specific Plan permits a building with a maximum height of one hundred (100’) feet with the approval of a Conditional Use Permit. The proposed development will comply with all the requirements outlined in the above-mentioned portions of the Section 14 Specific Plan and Palm Springs Municipal Code and Zoning Code. Therefore, Staff recommends approval of the TTM, the adoption of the Mitigated Negative Declaration, the approval of the Major Development Permit and the Conditional Use Permit. Further review by the Architectural Review Committee will evaluate the building architecture, materials, and landscaping.

PREPARED BY: Glenn Mlaker, AICP – Associate Planner
REVIEWED BY: Edward Robertson – Principal Planner
REVIEWED BY: Anthony Riederer, Assistant Director of Planning Services

ATTACHMENTS:

1. Vicinity Map

2. Draft Resolution

3. Conditions of Approval

4. Justification Letter

5. Business Disclosure Form

6. Letter from the Agua Caliente Band of Cahuilla Indians

7. Public Comment – Letter from SAFER

8. Mitigated Negative Declaration

9. Response to Comments

10. Site Plan and Building Elevations

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