CITY COUNCIL STAFF REPORT
DATE: JANUARY 14, 2026 PUBLIC HEARING
SUBJECT: AN APPEAL OF THE PLANNING COMMISSION’S DECISION
APPROVING A MAJOR DEVELOPMENT PERMIT TO CONSTRUCT
EIGHTY-TWO (82) 100% AFFORDABLE APARTMENT UNITS PER
SECTION 93.23.17 OF THE PALM SPRINGS ZONING CODE FOR A
DENSITY BONUS ON A 4.05-ACRE UNDEVELOPED PARCEL LOCATED AT 305 WEST SAN RAFAEL DRIVE, ZONE R-2 (CASE NO. DP 2025- 0011)
FROM: Scott C. Stiles, City Manager
BY: Department of Planning Services
SUMMARY:
This is an appeal by William Gordon Philips and Linda and Cyrous Sacket, adjacent neighbors to the project, asking the Council to overturn the decision made by the Planning Commission on November 18, 2025, to approve a Major Development Permit to construct eighty-two (82) apartment units that are 100% affordable consisting of one-, two-, and three-bedroom units. The Planning Commission approval is consistent with the requirements of the City of Palm Springs Zoning Code (PSZC) and State Law relative to the use of density bonus incentives and processing requirements for affordable housing projects.
A separate funding request for the project is before the City Council and will be evaluated following the appeal. As the funding request relates to State deadlines, Council has the option to consider that request conditionally such that any funding would only be made available if the appeals are resolved and entitlements upheld.
RECOMMENDATION:
1. Open the appeal hearing and receive testimony; and
2. Reject the appeal and accept the Planning Commission’s decision by adopting a Resolution entitled, “ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, DENYING THE APPEAL BY WILLIAM GORDON
PHILIPS, AND LINDA AND CYROUS SACKET FOR THE APPROVAL OF A MAJOR DEVELOPMENT PERMIT TO CONSTRUCT EIGHTY-TWO (82) 100%
City Council Staff Report
January 14, 2026 -- Page 2
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5 AFFORDABLE APARTMENT UNITS PER SECTION 93.23.17 OF THE PALM SPRINGS ZONING CODE FOR A DENSITY BONUS ON A 4.05-ACRE
UNDEVELOPED PARCEL LOCATED AT 305 WEST SAN RAFAEL DRIVE, ZONE R-2 (CASE NO. DP 2025-0011)
BUSINESS PRINCIPAL DISCLOSURE:
The applicant has submitted a Business Disclosure form stating that the applicant is Red Tail Multifamily Land Development, LLC, with Ron Wu and JD Carbone as officers of the company (Attachment I).
BACKGROUND:
On January 23, 2019, the City Council adopted Ordinance 1976 to satisfy the requirements of California Government Code Section 65915 (a)(3)(A), which requires local governments to adopt procedures for density bonus applications for the construction of affordable housing units. The grant of these bonuses is mandatory for qualifying projects.
On October 2, 2019, the City Council adopted a Resolution establishing the “Affordable and Multi-Family Housing Incentive Program” to support the development of residential projects constructing new affordable dwelling units or constructing new multi-family residential units.
On November 18, 2025, the Planning Commission voted 7-0 to approve the application with conditions. The history of the application review is summarized in the table below, and the excerpts of the meeting minutes that are relevant to the project are attached to this Staff Report (Attachment F). The Planning Commission’s findings and conditions of approval are attached as Resolution No. 6988 (Attachment D).
The Planning Commission imposed a series of conditions to be reviewed by the Architectural Review Committee focusing on landscaping, building architecture, site amenities, and off-street parking.
Pursuant to PSZC Section 94.04.00(D)(1)(e), the Planning Commission’s decision of a Development Permit application is final unless further appeal is made to the City Council in the manner provided by Chapter 2.05 of the Palm Springs Municipal Code. On December 1, 2025, William Gordon Philips and Linda and Cyrous Sacket filed an appeal request in accordance with the applicable law. The Appeal Forms are attached to this staff report (Attachment C).
City Council Staff Report
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5 City Council Staff Report
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5 APPELLANT’S GROUNDS FOR APPEAL:
The appellants own two single-family residences registered as vacation rental properties directly south and adjacent to the proposed project at 305 West San Rafael Drive. The parcels are as follows:
William Gordon Philips – 282 West Santa Catalina Road
Linda and Cyrous Sacket – 262 West Santa Catalina Road
Location of 282 W. Santa Catalina Road and 262 W. Santa Catalina Road – two white houses south of the subject vacant lot
In the Appeal Form, the appellants explain the basis for filling the appeal request as follows:
1. Unmitigated nuisance and adverse health/welfare impact from new height.
2. Significant privacy impacts.
3. Illegal siting and encroachment of the multi-family refuse enclosures.
4. Illegal structural encroachment of appellants’ private property.
5. Overconcentration of income-restricted housing and social services in area.
6. Improper or overbroad application of density bonus law.
7. Insufficient findings under the Palm Springs Municipal Code.
8. Inadequate environmental review (CEQA).
9. Architectural and design compatibility issues.
The appellants’ filing letter includes a detailed description of each of the points listed above (Attachment C).
City Council Staff Report
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5 Staff Response:
The proposed project utilizes statutory Density Bonus provisions that allow greater density, height, and reduction of off-street parking to qualifying affordable housing developments. These bonuses must be granted in accordance with State Law. With the use of those statutory provisions, the project complies with the Mixed-Use General Plan Land Use Designation and further advances the goals and policies of the Housing Element which encourage affordable and work-force housing. Furthermore, the Planning Commission determined that the project complies with applicable development standards and approved the project in order to meet State mandates and to further City objectives relative to affordable housing. The City has no legal authority to deny the grant of these allowances per State law.
As a Development Permit, no public hearing, mailed notice, or on-site posting is required in accordance with Sections 94.04.01 and 94.09.00 of the PSZC. Further, as lead agency, the City has determined the project qualifies for two (2) Categorical Exemptions as an “In- Fill” project per California Environmental Quality Act (CQA) Section 153032, and as an “Affordable Housing” project per Section 15194. Thus, no further review is required in accordance with the requirements of CEQA.
Additionally, the applicant claims a series of non-conformances and potential violations on the subject property. The Department of Special Program Compliance has confirmed that each of the Appellant’s properties are registered vacation rentals with a history of violations and contain a non-compliant 8- to 9-foot-high fence that does not comply with the requirements of the PSZC.
PROJECT DETAILS:
Site Area
4.05-Acres
Surrounding
Property
Existing General
Plan Designations
Existing Land
Use
Existing Zoning
Designations
Subject
Property
MU (Mixed Use)
Tramview Height
Specific Plan
Vacant R-2 Multi-Family
Residential
North IND (Industrial) Industrial M-1 Industrial
South ER (Estate
Residential)
Single-Family
Residential
R-1-A Single Family
Residential
East MU (Mixed Use) Vacant R-2 Multi-Family
Residential
West MDR (Medium
Density Residential)
Palm Springs
Villas
Condominiums
R-2 Multi-Family
Residential
City Council Staff Report
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5 PROPOSED PROJECT:
Site Plan:
The subject lot is a 4.05-acre undeveloped rectangular-shaped parcel located within the Tramview Heights Specific Plan area. The site is generally flat with frontage on W. San Rafael Drive, Virginia Drive, and Puerto Del Sol. Two ingress/egress points into the complex will be from the two side streets with no access along W. San Rafael Drive. The three apartment buildings will front along the main street with Building 2 set back an additional seven (7) feet to provide interest and soften the street frontage. Off-street parking is located on the south portion of the site with multiple carports providing covered parking. Staff worked with the applicant to provide internal speed control elements within the parking lot by having raised humps in a paver material as pedestrian walkways leading from the parking to the apartment buildings. In addition, a slight offset in the parking lot at the east end will visually signal that speeds along the driveway should be low. Site amenities include a community/playground space with shade structures and benches at the west end of the complex, with a dog park between Buildings 1 and 2, and an open space with additional shade structures and benches between Buildings 2 and 3.
Mass and Scale:
The proposed three apartment buildings will consist of two- and three-story structures.
The third floor will consist of four separate units, and the remaining apartments will be on the first and second floors. The total building height on the third floor will be 31.3’ feet tall while the second-floor height is 20.2’ feet. This condition provides for varying roof lines and heights for the building elevation designed to lessen the massing and scale. Building 2 will be setback seven (7) feet from Buildings 1 and 3 which softens the overall streetscape providing interest and presence on the street.
STAFF ANALYSIS:
Affordable Housing Density and Incentives:
In its review of qualifying affordable housing projects, the City is required to allow density bonuses including reduced off-street parking, additional height, and certain waivers and incentives permitted by Section 93.23.17 of the Zoning Code.
Under the Density Bonus Ordinance, very low- and low-income developments are granted certain allowances or relief from underlying requirements in order to help make these projects viable. The application seeks three incentives as permitted under Section
93.23.17 of the Zoning Code:
Height – The project proposes heights above those typically allowed in the R-2 zone, which permits heights up to 24 feet. The proposed height is 31.3’ feet for a portion of all three buildings. Section 93.23.17(F) permits up to an 11-foot increase in the allowable height. As modified by the applicable bonus, the proposed height complies.
Density- The Mixed Use (MU) General Plan land use designation has a maximum density of 15 dwelling units per acre while the proposed project is requesting a City Council Staff Report
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5 density of 19.2 dwelling units per acre which is permitted for a 100% affordable project.
Off-Street Parking – The project proposes a reduction of twenty-one (21) spaces for a total provided of 137 spaces. A density bonus incentive for low- and very low- income housing projects near a major transit stop can request reduced parking greater than what has been requested, and thus the project complies.
To ensure that the project maintains eligibility for these bonuses, the Planning Commission added the following condition:
PLN 3. Applicant to record a 55-year deed restriction as the project will remain 100% affordable to extremely low, -very low, - low, and moderate- income residents. The minimum amount to qualify for the density bonus provisions of Section 93.23.17 of the PSZC shall be maintained and confirmed at the time of building permit issuance.
Other Development Standards:
With the grant of the statutory density bonus provisions, the development complies with all applicable development standards, as summarized below:
Development Standards:
R-2 Requirements Proposed Project Conform
Lot Standards
Min. Area 20,000 square feet 4.5-acres Y
Min. Width 140 feet 905 feet Y
Min. Depth 150 feet 180 Y
Density Per the MU General Plan Des.
of up to 15 dwelling units per
acre
19.2 dwelling units per
acre
Y*
Building Height R-2: 24 ft. and two stories
max. Density Bonus allow up
to 35 ft.
31.3’ feet maximum
height
Y*
Yards
Front (W. San
Rafael)
25 feet
Buildings 1 & 3 at 25 feet
Building 2 at 32.1’ feet
Y
Street Sides
(Virginia Dr)
(Puerto Del Sol)
30 feet
30 feet
102 feet
61.3’ feet
Y
Y
Rear Street 20 feet from building 109 feet to building Y Distance Between
Buildings
15 feet between buildings.
39.11’ feet between Bldg 1
& 2
40’ feet btwn Bldg 2 & 3
Y
City Council Staff Report
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5 Coverage 50% maximum useable open
space
50% Y
Off-street Parking 158 spaces required 137 parking spaces proposed
Y*
*Yes, as an affordable housing development with permitted incentives in Section 93.23.17 of the Zoning Code.
ENVIRONMENTAL ASSESSMENT:
Pursuant to the California Environmental Quality Act (CEQA) Guidelines, the project is Categorically Exempt under CEQA Section 153032(a-e) (In-Fill Development), and Section 15194 (Affordable Housing) – The project is (a) consistent with the General Plan, (b) is less than five (5) acres in size; (c) has no value as habitat for endangered species; (d) there will be no significant impacts to air quality, water, traffic, or noise; (e) and can be adequately served by existing utilities and public services, is under one hundred units and, available to lower income residents.
ALIGNMENT WITH STRATEGIC PLANNING:
Housing.
The project proposes the development of eight-two (82) 100% affordable apartment units that will add to the City’s workforce housing stock in line with the goals of the Housing Element of the General Plan.
FISCAL IMPACT:
Upholding the entitlements will result in no fiscal impact to the City.
REVIEWED BY:
Department Director: Christopher Hadwin
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Vicinity Map
B. City Council Draft Resolution
C. Letter of Appeal from William Gordon Philips – 282 West Santa Catalina Road Linda and Cyrous Sacket – 262 West Santa Catalina Road
D. Planning Commission Resolution #6988
E. Planning Commission Minutes Excerpts of 11-18-2025
F. Planning Commission Staff Report 11-18-2025
G. Letter from Applicant – Response to Appeal
H. Justification Letter
City Council Staff Report
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5 I. Business Disclosure Form
J. Site Plan and Building Elevations