CITY COUNCIL STAFF REPORT
DATE: November 12, 2025 CONSENT CALENDAR
SUBJECT: ADMINISTRATIVE ANALYSIS AND CONFORMITY REPORT FOR A PROPOSED 62-UNIT APARTMENT DEVELOPMENT (“INSPIRE
SUNRISE”) ON A 5-ACRE TRIBAL TRUST PARCEL LOCATED AT THE
SOUTHWEST CORNER OF EAST ALEJO ROAD AND NORTH SUNRISE
WAY (APN: 508-060-017, GOVERNMENT LOT 140), ZONE MR (MEDIUM DENSITY RESIDENTIAL), SECTION 14 SPECIFIC PLAN (CASE CR- 2025-0001)
FROM: Scott C. Stiles, City Manager
BY: Department of Planning Services
SUMMARY:
Under the Tribal/City Land Use Review Agreement (“Agreement”), the City is to prepare an Administrative Analysis and Conformity Report for proposed projects on reservation lands owned by the Agua Caliente Band of Cahuilla Indians (“Tribe”). A proposal has been submitted to construct 62 apartments (“Inspire Sunrise”) on an undeveloped parcel owned by the Tribe. The project site is located at the southwest corner of East Alejo Road and North Sunrise Way (APN: 508-060-017, Government Lot 140).
The project proposes a 62-unit apartment development, which consists of thirteen (13) detached buildings, each of which is designed with four (4) or five (5) apartment units.
The apartment units are designed in two floor types (1 bedroom and 1 bathroom & 2 bedrooms and 2 bathrooms), and they range from 682 to 1,067 square feet in size. It is a two-story construction at a maximum building height of 23.5 feet. The project design includes gated access, 130 off-street parking spaces which include 27 guest parking spaces, perimeter landscape and walls, and communal spaces.
As demonstrated in the analysis section of this report, the proposed project partially conforms to the applicable development standards of the Section 14 Specific Plan and General Plan. The Tribe reserves the final decision on this project and is not required to strictly adhere to all of the City’s development standards. In addition to the suggested standard conditions of approval, staff recommends that the Tribe consider the following modifications to the development proposal:
1. Remove two (2) access gates on the East Alejo Road and North Sunrise Way frontages in accordance with the Palm Springs General Plan Community Design
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Element Policy CD 14.6 (page 9-34).
2. Install additional shade trees along both street frontages.
3. Install the cultural monument outside of the corner cutback area.
4. Further explore the articulation of the building elevations, thickness of the eaves, and the application of the accent colors.
5. Reduce the street-facing perimeter wall height to 5 feet.
RECOMMENDATION:
Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, APPROVING A CONFORMITY REPORT FOR A 62-UNIT APARTMENT DEVELOPMENT ON TRIBAL TRUST LAND AT THE SOUTHWEST CORNER OF EAST ALEJO ROAD AND NORTH SUNRISE WAY (APN:
508-060-017, GOVERNMENT LOT 140); DIRECTING STAFF TO TRANSMIT THE
REPORT TO THE TRIBAL COUNCIL OF THE AGUA CALIENTE BAND OF CAHUILLA INDIANS; AND WAIVING THE JOINT MEETING BETWEEN THE CITY COUNCIL AND TRIBAL COUNCIL (CASE CR-2025-0001)”.
LAND USE COORDINATION AGREEMENT:
The City and the Tribe entered into an Agreement on December 15, 1998 to facilitate an expedited process for the City to review and comment on development projects located on land owned directly by the Tribe. The Agreement identifies a schedule for project review. In accordance with the Agreement, the following schedule has been prepared for this project:
Item Timeline Required Proposed Timeline
1. Pre-Submittal N/A October 7, 2025
2. Submittal of Project
Report
90 days prior to Tribal
approval
October 7, 2025
3. Administrative Review CC review 30 days after
submittal of Project
Report
November 12, 20251
4. Conformity Report CC adopts within 30 days
of receiving
Administrative Review
November 12, 20251
5. Joint Meeting 2 City and Tribal Councils
within 30 days of adopting
Conformity Report
December 12, 2025
(Requested by the Tribe
and staff to be waived)
6. Final Tribal Action 90 days after submittal of
Project Report
No sooner than January 5,
2026
1The Administrative Review and adoption of the Conformity Report by the City Council may be consolidated into a single review per Section 7 of the Agreement. 2Joint meeting of the Tribal Council and City Council may be waived with the approval of both parties.
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Section 7 of the Agreement states that “...with the approval of both parties, any portion of the foregoing process may be waived if the Project is not deemed significant, if the Project is found to be conforming, or if due to the exigencies of time and the normal process cannot be accommodated.” As noted in the following sections of this report, the proposed project is generally consistent with the General Plan and Section 14 Specific Plan, and therefore staff would propose that a joint meeting of the City Council and Tribal Council is unnecessary.
PROPOSED PROJECT:
The project proposes the development of a 62-unit apartment complex on a 5-acre (Gross) undeveloped parcel located at the southwest corner of East Alejo Road and North Sunrise Way (APN: 508-060-017, Government Lot 140). The residential project will include the following development features:
Thirteen (13) detached buildings, each of which consists of four (4) or five (5) apartment units.
62 apartment units ranging from 682 to 1,067 SF in size. Two floor plan types (1 bedroom and 1 bathroom & 2 bedrooms and 2 bathrooms). 62 off-street parking spaces (42 attached two-car garages, 20 attached single-car garages, and 27 guest parking*).
*Includes 2 handicapped parking spaces
Private patios for the first-floor units and balconies for the second-floor units. Controlled access on the East Alejo Road and North Sunrise Way frontages for primary and emergency vehicular access.
Internal streets.
Communal areas that are designed with amenities such as shade structures, a pool, a spa, restrooms, a BBQ, and a dog park.
Perimeter landscape and wall.
Cultural monument at the northeast corner of the development.
The Project Report states (Attachment D, page 6) that the proposed project will be subject to the standard development impact fees which are typically imposed by the City of Palm Springs. These fees include sewer and drainage fees, public art fees, park (Quimby Act) fees, regional traffic impact (in-lieu of TUMF fees), and school fees.
Additionally, a Community Facilities District (CFD) will be established for the proposed project, or the project site will be annexed into an existing CFD. Within a CFD, a special tax will fund public safety services serving the project, such as police and fire services.
STAFF ANALYSIS - ADMINISTRATIVE REVIEW:
The intent of the Administrative Review is to evaluate the adequacy of the public safety services, which include but are not limited to, police, fire, and any other City services that City Council Staff Report
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are necessary for the project. Additionally, the purview of the review includes public welfare (e.g. Health, Safety), compatibility of the project with the surrounding properties, and the fiscal impact of the project. The Project Report has been circulated to the Fire Department and the Department of Engineering Services. In response, the departments provided the following comments:
Streets & Utilities: Sanitary sewer facilities are available in the vicinity to service the proposed project. North Sunrise Way is a major throughfare and East Alejo Road is a modified collector street (undivided 2 lanes). Both streets have adequate capacity to support the proposed development. The travel lanes on East Alejo Road and North Sunrise Way are paved; however, there is no existing sidewalk on East Alejo Road and partial sidewalk installation has been completed on North Sunrise Way in the areas immediately adjacent to the project site. Recommended conditions of approval have been prepared to address technical compliance relative to both onsite and offsite improvements (Attachment B). Public Safety: As stated on page 6 of the Project Report (Attachment D), either a CFD (Community Facilities District) will be formed or the project site will be annexed to an existing CFD to fund police and fire services for the project. Building Permit/Impact Fees: While Tribal projects are typically exempt from the payment of impact fees, the Project Report notes that the project will be conditioned to pay the standard development impact fees that are typically imposed by the City of Palm Springs.
Taxes and Revenue: Construction of the proposed 62-unit upscale apartment complex in Palm Springs is expected to generate substantial one-time and ongoing fiscal benefits to the City. Based on Palm Springs construction pricing and a projected total valuation of approximately $22–27 million at completion in early 2028, the project would yield an estimated $1.1–1.4 million in local sales tax during construction from taxable materials and supplies. The construction phase is projected to support roughly 100 direct and indirect jobs, resulting in approximately $12 million in local economic output through wages and supply-chain spending.
Additional one-time revenues, including parking and infrastructure fees, are anticipated to contribute roughly $100,000 to the City. Upon completion and occupancy, the project is expected to generate sustained fiscal benefits through annual property tax revenues of $270,000–$340,000, equivalent to roughly $4,000–$5,500 per unit per year. Resident spending will further support the local economy, adding an estimated $45,000–$50,000 in recurring annual sales tax revenue, while surrounding property values and business activity are expected to increase through secondary investment and neighborhood revitalization effects.
Over a 20-year horizon, total local fiscal benefits are estimated to exceed $6–8 million, exclusive of long-term appreciation and inflation.
Considering the fact that the project is conditioned to pay the customary City impact fees and a CFD will be formed for the project (or the project will be annexed to an existing CFD alternatively), the project will not have a significant financial impact on the provision of City services. Development of the project will result in a modest increase to the tax base, while assisting the City in meeting its housing goals.
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STAFF ANALYSIS - CONFORMITY REPORT:
Per the Agreement, the Conformity Report shall detail the conformance of the project to existing City rules and regulations, and the compatibility of the project with surrounding properties. The following tables and discussion provide an analysis of the project relative to the requirements of the Section 14 Specific Plan, Palm Springs Zoning Code (PSZC), and General Plan.
Site Area
Net Acres 4.13 Acres
Gross Acres 5 Acres
Surrounding
Property
Existing Land Use
Per PSZC Chapter
92.00 Existing General
Plan Designation
Existing Zoning
Designation
Subject Property Undeveloped
MDR
(Medium Density
Residential)
MR (Medium
Density Residential)
North Single-Family
Residences
VLDR
(Very Low Density
Residential)
R-1-C (Single-
Family Residential)
South United States Postal
Services MDR MR
East
Multi-Family
Residential
(Americana
Gardens)
MDR
R-2 (Limited
Multiple-Family
Residential)
West
Religious Institution
(United Methodist
Church of Palm
Springs)
MDR
MBR (Medium
Density Residential
Buffer)
Existing Street Improvement Conditions
Street Name Travel Lanes Curb & Gutter Sidewalk
East Alejo Road Y N N
North Sunrise Way Y Y (Partial) Y (Partial)
Pursuant to the Chapter 6 of the Section 14 Specific Plan and PSZC Section 92.03.03 (R-2 Zone Property Development Standards), the following development standards apply:
Standard Required/
Allowed
Provided Compliance
Min. Lot Size (Gross) 20,000 SF 217,800 SF (5
Acres)
Y
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Standard Required/
Allowed
Provided Compliance
Min. Lot Width 170 Feet 259.68 Feet Y
Min. Lot Depth 150 Feet 585.80 Feet Y
Min. Setbacks
Front (E. Alejo Rd.)
Side (N. Sunrise Wy.)
Side (West)
Rear (South)
25 Feet
30 Feet
25 Feet
25 Feet
30 Feet
43.2 Feet
20.5 Feet
50.6 Feet
Y
Y
N
Y
Max. Lot Coverage 30% 32.5%* N
Min. Open Space 50% 40.7%* N
Max. Building Height 24 Feet 23.5 Feet Y
Building Separation
Distance
15 Feet Varies, with the
proposed shortest
distance of 6 Feet
N
Perimeter Wall Height Max. 4.5 ~ 6 feet,
depending on the
location and
provided setback
6 Feet N**
Entry Gate Height Max. 6 Feet Max. 6.5 Feet Yes, subject to Minor
Architectural
Review
approval***
*Per Table 1 (Development Standards Comparison) of the Project Report (Attachment D). **Nonconforming to the 15-foot-minimum setback requirement and 60%-max lineal length requirement along East Alejo Road and North Sunrise Way only. ***Entry gate above the allowable height may be approved via a Minor Architectural Review per PSZC Section 94.04.00(C)(3)(d).
Pursuant to Section 14 Specific Plan Residential Development Standards (Section 14 Specific Plan, page 6-9) and PSZC Section 92.03.03(C), the General Plan density requirements for the MDR (Medium Density Residential) General Plan land use designation area would apply to the project:
Permitted Density Site Area Units Allowed Units Proposed Compliance
6.1 ~ 15.0 Dwelling
Units/Acre
4.13 Acres
(Net)
25.2 ~ 62.0 62 Units Y
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Pursuant to the Section 14 Specific Plan and PSZC Section 93.06.00, the following parking standards apply:
Parking Requirement
Required Provided
Use SF or #
of Units
Parking
Ratio Reg. Handi-
cap Reg. Handi-
cap
Comp.
1.25 per Unit
(1 BDR – 30
Units)
37.5 20Parking for
Residents
62 Units
1.5 per BDR
(2 BDR – 32
Units)
48 84*
Guest
Parking
61 Units 1 per each 4
Units
15.5 27**
TOTAL SPACES REQUIRED 101 131 Y
*Calculated at 42 units x 2 parking spaces.
**Includes 2 handicapped parking spaces.
Pursuant to Chapter 5 of the Section 14 Specific Plan, the following streetscape requirements shall apply:
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Streetscape Requirements
Street Applicable Requirements Compliance
North
Sunrise
Way
Create 5’ bike lane in both directions.
Provide a linear sidewalk at least 8’
in width on the west side of the
street.
Add planted median at Alejo Road,
replant all medians to match.
Add planting and shade trees along
curb to separate pedestrians from
traffic where feasible.
Add pedestrian lighting along
corridor.
Shaded bus shelters where feasible.
If practicable, maintain bike lanes
through intersection with dashed
striping in accordance with State law.
Partial. There is an existing
sidewalk on the west side of the
street which extends approximately
100 feet from the Sunrise
Way/Alejo Road intersection
towards south; however, the
sidewalk ends at a Sunline transit
stop. The site plan depicts the
extension of the existing 8-foot-
side sidewalk along the project
site.
The Project Report does not
include information relating to the
bike lane, landscaped median at
Alejo Road, or pedestrian lighting.
The project proposes the
relocation of the existing Sunline
transit stop; however, its shading
information is not available.
The street frontage along the
project site will be landscaped with
some trees (e.g. Blue Palo Verde,
Chinese Pisache). However, the
trees will be located at the project
site, not along the curb, to
separate pedestrians from the
North Sunrise Way traffic.
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Streetscape Requirements
Street Applicable Requirements Compliance
East
Alejo
Road
• Provide for a meandering 6’ wide
sidewalk (where possible) on the
south side of the street.
• Maintain current right-of-way width
and monitor the need for
implementation of General Plan
traffic lane designations in the
future.
• Additional street trees and
landscape buffers where feasible.
• Add pedestrian lighting.
• Additional landscaping adjacent to
private property residential back
walls.
• Textured crosswalks at Indian
Canyon Drive, Avenida Caballeros
and Sunrise Way.
Partial. The project proposes a
new 8-foot-wide sidewalk;
however, it is a straight sidewalk,
not meandering, as stated in the
Specific Plan. The roadway
classification of the street has
changed from secondary to a
modified collector through the
recent General Plan Amendment
(Palm Springs 2040 General Plan).
The required minimum right-of-way
width has decreased (from 88 feet
to 80 feet) as the result of the
reclassification. Tentative Parcel
Map No. 39368 included in the
Project Report indicates that the
portion of the street adjacent to the
site meets this requirement.
The Project Report does not
include information relating to
pedestrian lighting or crossway
design and material. Perimeter
landscape is proposed along the
street frontage, which functions as
a buffer between the sidewalk and
the nearest residential unit.
DEVELOPMENT STANDARDS – GENERAL:
The General Plan and Specific Plan land use designations of the project site are MDR (Medium Density Residential) and MR (Medium Density Residential), respectively. A variety of housing types, including muti-family residential uses, are intended for the MDR General Plan land use designation area (Palm Springs 2040 General Plan, page 2-12), and the MR land use designation is primarily intended for multi-family residential development up to 15 dwelling units per acre (Section 14 Specific Plan, page 4-6). As analyzed on page 7 of this report, the proposed density is consistent with the intent of the MDR land use designation area as the project proposes a 62-unit multi-family residential development at the density of 15 dwelling units per acre.
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Per Section 14 Specific Plan Chapter 6, page 6-9 (Table 6-3, Residential Development Standards), the R-2 (Limited Multiple-Family Residential) zone development standards (PSZC Section 92.03.03) are applicable to development projects in the MR land use designation area. As analyzed in the table on pages 5 and 6 of this report, the proposed project does not conform to the minimum side yard (west) setback, open space, and building separation distance requirements. Additionally, it exceeds the maximum allowable lot coverage and perimeter wall and gate height limits. Project conformance with additional performance standards is detailed in this section below. Nevertheless, the Tribe is not bound by the development standards of the General Plan and Specific Plan, though the Specific Plan serves as a guiding framework for developments proposed on Tribal Trust lands.
Controlled Access:
The project proposes two (2) access points on the East Alejo Road and North Sunrise Way frontages for primary and emergency vehicular access. Per the Palm Springs General Plan Community Design Element Policy CD 14.6 (Palm Springs General Plan, page 9-34), gated community entries are prohibited. Instead of gates, the General Plan encourages the implementation of design features such as meandering streets, landscaping, and special consideration for site layout to provide privacy and exclusivity.
Staff recommends that the proposed vehicular gates be omitted from the site plan.
Common Open Space:
The Specific Plan requires an open space at the ground level which is ample in size and easily accessible to the residents. Although the proposed open space is 40.7% and it is less than 50% required by the Specific Plan, the building design incorporates private patios for the first-floor units and balconies for the second-floor units. Additionally, the proposed site design includes a dog park and a common area which is equipped with amenities such as a pool, a spa, a BBQ, and shade structures.
Streetscape/Landscape:
The project proposes landscape buffers on the East Alejo Road and North Sunrise Way frontages. The proposed plant materials include Blue Palo Verde and Chinese Pistache as shade trees, in addition to Data Palm and California Palm to accentuate the main entrance on East Alejo Road and as a backdrop of the cultural monument which will be installed at the northeast corner of the development. Additionally, sparse placement of desert plant materials such as Golden Barrel Cactus, Agave, Purple Prickly Pear, and Mexican Tall Grass is proposed along with crushed rocks and boulders. While the landscape plan includes shade trees, they are inadequate to provide microclimate which would provide physical comfort to the pedestrians walking on both street frontages because of their sparse installation pattern. Furthermore, no shade trees are proposed at the northeast corner of the project from which pedestrians crossing the streets could benefit. To enhance pedestrian experience, staff recommends an increase in the amount of shade trees on both street frontages.
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Architectural Features:
The Section 14 Specific Plan (Table 6-3 Residential Development Standards, page 6-9) requires the incorporation of design detail and elements which provide visual character and interest and avoid flat planer walls and box-like appearances. Additionally, the Specific Plan Design Guidelines (Section 14 Specific Plan Design Guidelines, Section
7.2.5, page 7-18) encourage street-facing walls, which extend more than 25 feet horizontally, to be designed with a visual break created by an articulation and/or architectural detailing. The project proposes two different types of materials (precision block & shadow block) for the street-facing wall, in addition to weathered streel raised planters against the wall to add visual interest. The project proposes the installation of a 6-foot-high perimeter wall on the street-facing elevations, which typically requires a 15- foot setback per the zoning code (PSZC Section 93.02.00). At the proposed wall installation location, which appears to provide a 7-foot setback, staff recommends the wall height to be reduced to 5 feet.
Different architectural designs are proposed for the 4-unit and 5-unit apartment buildings, though both designs retain rectangular form throughout for visual consistency and a modern appearance. Design considerations are given to add visual character and interest to the buildings as exemplified by the louvered screen accent, recessed building elevations in selected areas, and the use of vivid colors for the entrance doors. However, the buildings exhibit a strong horizontal profile combined with thick eaves and flat roofline throughout, which contribute to a box-like appearance. Additionally, the architectural treatment of the garage elevations is rather bare and monotonous, and the second-floor windows appear to be out of scale against the background. Finally, the project proposes bright blue, purple, and pink paint for the entry doors as an accent. The use of the accent colors, as proposed, appears insufficient to effectively deliver visual interest or vibrancy to the buildings because the area of the color application is limited and it is not proportional to the scale of the white background of the buildings. Staff is recommending further exploration of building elevation articulation, thickness of the eaves, and the application of the accent colors to address these issues.
Cultural Monument:
The project proposes the installation of a cultural monument at the northeast corner of the project site. The Project Report provides neither the details nor precise installation location of the proposed monument. To ensure that there will be no obstruction in the corner cutback area, staff recommends that the monument be installed in accordance with the requirements of Plam Springs Zoning Code Section 93.02.00(D).
ENVIRONMENTAL ASSESSMENT:
In 2002, an Environmental Impact Report (EIR) and an Environmental Impact Statement (EIS) were prepared for the adoption of the Section 14 Specific Plan. In 2016, an Initial Study (IS) and an Environmental Assessment (EA) were prepared as a part of a comprehensive amendment of the Specific Plan, which analyzed the cumulative environmental impacts of the future development under the amended Specific Plan. The 2016 IS and EA were prepared in accordance with the requirements of the California City Council Staff Report
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Environmental Quality Act (CEQA) Guidelines and the National Environmental Policy Act (NEPA) regulations as mandated by 40 CFR 1500-1508 and implemented by the Bureau of Indian Affairs (BIA) NEPA Handbook (59 IAM 3-H). An environmental assessment is typically required for a major Tribal action per the Tribal Environmental Policy Act (TEPA); however, the requirement does not apply to the proposed project because the Initial Study and Environmental Assessment, which were prepared as a part of the 2016 Section 14 Specific Plan Amendment, included an environmental analysis for future development.
SUGGESTED CONDITIONS OF APPROVAL:
The City has developed a set of suggested conditions of approval for consideration by the Tribe in its review of the proposed project (Attachment B). These conditions are attached and made a part of this Conformity Report; they include recommendations for compliance with various City and State ordinances and regulations. These conditions are advisory, and they are not binding on the Tribe.
The proposed project partially conforms to the applicable development standards of the Section 14 Specific Plan and the General Plan. However, the Tribe reserves the final decision on this project and is not required to strictly adhere to all of the City’s development standards. In addition to the suggested standard conditions of approval, staff recommends that the Tribe consider the following modifications to the development proposal:
1. Remove two (2) access gates on the East Alejo Road and North Sunrise Way frontages in accordance with the 2007 Palm Springs General Plan Community Design Element Policy CD 14.6 (page 9-34).
2. Install additional shade trees along both street frontages.
3. Install the cultural monument out of the corner cutback area.
4. Further explore the articulation of the building elevations, thickness of the eaves, and the application of the accent colors.
5. Reduce the street-facing perimeter wall height to 5 feet.
FISCAL IMPACT:
As stated on page 4, the construction of the proposed 62-unit upscale apartment complex in Palm Springs is expected to generate substantial one-time and ongoing fiscal benefits to the City. Upon completion and occupancy, the project is expected to generate sustained fiscal benefits through annual property tax revenues of $270,000–$340,000, equivalent to roughly $4,000–$5,500 per unit per year. Resident spending will further support the local economy, adding an estimated $45,000–$50,000 in recurring annual sales tax revenue, while surrounding property values and business activity are expected to increase through secondary investment and neighborhood revitalization effects. Over a 20-year horizon, total local fiscal benefits are estimated to exceed $6–8 million, exclusive of long-term appreciation and inflation.
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REVIEWED BY:
Department Director: Christopher Hadwin
Deputy City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Vicinity Map
B. Draft Resolution and Recommended Conditions of Approval C. Tribal/City Land Use Coordination Agreements
D. Inspire Sunrise Project Report