CITY COUNCIL STAFF REPORT
DATE: OCTOBER 14, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF A SUBDIVISION IMPROVEMENT AGREEMENT ASSOCIATED WITH TRACT MAP 39025 FOR CONSTRUCTION OF SAN RAFAEL DRIVE WITH SERENA 386, LLC, A DELAWARE LIMITED
LIABILITY COMPANY
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:
Serena 386, LLC (the “Developer), is to construct public improvements for San Rafael Drive within the boundaries of Tract Map 39025 as it seeks to develop properties at the site of the former Palm Springs Country Club golf course (north of Verona Road, east of Sunrise Way, and southwest of the Whitewater River Wash). The Developer has requested that the City enter into a Subdivision Improvement Agreement (“SIA”) securing the cost of those improvements to be completed to the City’s satisfaction.
RECOMMENDATION:
Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, CALIFORNIA, APPROVING A SUBDIVISION IMPROVEMENT
AGREEMENT TO CONSTRUCT PUBLIC IMPROVEMENTS ASSOCIATED WITH TRACT MAP 39025 FOR SAN RAFAEL DRIVE WITH SERENA 386, LLC, A DELAWARE
LIMITED LIABILITY COMPANY, FOR PROPERTY LOCATED EAST OF NORTH
SUNRISE WAY, NORTH OF EAST VERONA ROAD, AND SOUTHWEST OF THE WHITEWATER RIVER FLOODPLAIN, IN SECTION 1, TOWNSHIP 4 SOUTH, RANGE 4 EAST AND SECTION 36, TOWNSHIP 3 SOUTH, RANGE 4 EAST.” (Attachment E) BUSINESS PRINCIPAL DISCLOSURE:
The Public Integrity Disclosure Form from the Developer is included as Attachment A.
BACKGROUND:
On August 12, 2024, SunCal, dba Serena 386, LLC purchased 156.18 acres of land associated with the Serena Park project from PS Country Club, LLC. As a condition of City Council Staff Report
October 14, 2026 -- Page 2
Approval of a Subdivision Improvement Agreement – Tract Map 39025 the purchase, the Development Agreement (“DA”) previously established between the City and PS Country Club, LLC was amended and adopted by and between the City and Serena 386, LLC.
At its meeting on January 22, 2025, the Planning Commission recommended conditional approval of TTM 39025 for subdivision purposes only to generate seven lots that will ultimately be further subdivided for the construction of a residential development consisting of 386 residential units on a 156.18-acre site located north of Verona Road, east of Sunrise Way, and southwest of the Whitewater River Wash at the site of the old Palm Springs Country Club golf course.
At its meeting on July 9, 2025, The City Council approved the final tract map for TM 39025 via Resolution No. 25329. There were no public improvements associated with Tract Map 39025 that were immediately required to be completed, as at that time the map was for subdivision purposes only.
The segment of roadway to now become San Rafael Drive was originally designed to be an onsite private road network. Following several years of discussions and design changes for the development, the road was reconfigured and was changed to become a public road. Now, the project proposes that the eastern end of San Rafael Drive would be extended from its intersection with Sunrise Way, through the development as a spine road, and on to an intersection with Verona Road and Whitewater Club Drive to the southeast.
As part of the design review process, the City and the Developer determined that the completion of the construction of San Rafael Drive and the associated fire hydrant system would be necessary prior to any vertical construction to take place. A Subdivision Improvement Agreement (SIA) is required for the associated improvements within San Rafael Drive, as well as for the future private roads. To facilitate construction of San Rafael Drive as soon as possible, the Developer has submitted for a SIA separate from the other infrastructure to be built later.
STAFF ANALYSIS:
The Developer has completed all required studies, improvement plans, and bonding requirements associated with the construction of San Rafael Drive. The Developer is now able to pull an encroachment permit at any time for the work. The project has been identified as “Serena Park”. A site map is provided below, a vicinity map is included as Attachment B, and a copy of the final map for TM 39025 is included as Attachment C to display the boundaries of San Rafael Drive as it goes through the Serena Park development (labeled as a “Future Street” in the map set).
City Council Staff Report
October 14, 2026 -- Page 3
Approval of a Subdivision Improvement Agreement – Tract Map 39025 Construction of the required public improvements associated with San Rafael Drive have not been completed; the total cost of the public improvements to be completed is $5,070,000. In accordance with Section 66462 of the California Government Code, the Developer has requested that the City enter into a SIA securing the cost of those improvements to be completed to the City’s satisfaction. A copy of the Subdivision Improvement Agreement with associated securities is included in Attachment D.
Dedications of public right-of-way from both the Developer and the neighboring Four Seasons development will encompass the proposed infrastructure for San Rafael Drive.
Upon acceptance of the Works of Improvement by the City Council the dedications of right-of-way will be accepted by the City and routed for recordation.
ENVIRONMENTAL ASSESSMENT:
On September 7, 2016, the City Council adopted Resolution No. 24082, certifying the Environmental Impact Report (EIR) for the land use entitlements for the Serena Park project, as required by the California Environmental Quality Act (CEQA). The EIR is the controlling environmental document for the overall project. This proposed seven-lot TTM 39025 merely further subdivides the land to allow development of the site consistent with City Council Staff Report
October 14, 2026 -- Page 4
Approval of a Subdivision Improvement Agreement – Tract Map 39025 these standards. The preparation of further environmental documentation is not necessary because none of the circumstances triggering further environmental review have occurred since the adoption of the EIR:
(i) There are no substantial changes in the project requiring major revisions of the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (ii) There are no substantial changes with respect to the circumstances under which the project is being undertaken which will require major revisions of the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified effects; and
(iii) There is no new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the EIR was certified showing that:
(a) The project will have one or more significant effects not discussed in the EIR;
(b) Significant effects previously examined will be substantially more severe than shown in the EIR;
(c) Mitigation measures previously found not feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the mitigation measures have not been adopted; or (d) Mitigation measures considerably different from those analyzed in the EIR would substantially reduce one or more significant effects on the environment, but the mitigation measures have not been adopted.
Accordingly, no further environmental review is required, pursuant to § 15162 of the California Environmental Quality Act.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Economic Development.
FISCAL IMPACT:
Approval of the SIA to facilitate the construction of San Rafael Drive will allow the currently vacant 156.98-acre parcel to later proceed with the development of 386 residential units.
Ultimately, upon completion of the units, the City will receive yet to be determined additional property tax revenue. Additional incremental costs for public service will be incurred over time which will be partially offset by a Community Facilities District assessment on the 386 residential units.
City Council Staff Report
October 14, 2026 -- Page 5
Approval of a Subdivision Improvement Agreement – Tract Map 39025 REVIEWED BY:
Department Director: Joel Montalvo
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Business Principal Disclosure
B. Vicinity Map
C. Tract Map 39025
D. Subdivision Improvement Agreement
E. Resolution