As potential new owner steps up, City Council approves crucial amendment for Serena Park development

Progress on the long-delayed Serena Park residential development, planned for the land formerly occupied by the Palm Springs Country Club golf course, is moving forward after the Palm Springs City Council voted to move ahead with a crucial amendment on a development agreement.

The 386-unit project, originally approved in 2016, was planned to consist of 294 detached single-family homes and 92 attached single-family homes on the 126-acre site. The land is either adjacent to or surrounding multiple existing neighborhoods, including the Four Seasons community, the Golden Sands mobile home development, and Whitewater Club.

After years of delays, city leaders agreed to a development agreement in 2021 with the current owner, requiring $3 million in fees and other conditions like an updated schedule and maintenance requirements. The first $500,000 was paid, but in 2022, when the owner failed to comply with the new schedule and maintenance plan, the city declared the owner in default. 

Now, the owner has found a new buyer, SunCal, but in order to finalize the sale, SunCal proposed a new agreement with the city that extends certain deadlines for construction of the development. That agreement is what was up for a vote during the City Council meeting on Thursday. 

The new agreement includes a total of $3.2 million in fees, an updated performance schedule with strict deadlines, a strict maintenance and security plan, and the promise to build a new park early on.

One of the biggest priorities for councilmembers was the adherence to the maintenance requirements. Specifically, they agreed with the Planning Commission that an initial clean-up of dead trees and trash be conducted within a month of the new owner acquiring the property.

“The proof, obviously, is in the pudding. The first deliverable is going to be how quickly that property gets cleaned up,” said Councilmember Lisa Middleton. “We’ve been down this road before with new ownership coming in, and that can make all the difference.”

Rob Bernheimer, a lawyer representing the buyer, told councilmembers his client was committed to fulfilling the removal of debris, and committed to contacting an arborist who would provide more info about other trees that need removal.

In addition, councilmembers received a commitment that the applicant will improve Golden Sands Road and install a sidewalk, as well as confirmation that the new owner would better communicate with neighbors through community meetings and informative signage.

Top of mind for many of the residents who made public comments during the meeting was the loss of open space the future development represented.

The development fees had previously been required to be earmarked for the acquisition of open space. That requirement was removed by city staff in the new amendment to give councilmembers more flexibility with the use of the funds.

Councilmember Grace Garner wondered if the funds could be used for other issues, like affordable housing. She asked Kristopher Mooney, the city’s director of finance and treasurer, how much money is set aside for affordable housing compared to open spaces.

Mooney said at the end of the year the city is projected to have about $4.5 to $5 million left over in affordable housing set aside money, in addition to the $6 million affordable housing reserve and that the city does not currently have any money set aside for open space.

“I know we have other needs in our city, but we don’t have a lot of allocation for open space,” said Mayor Jeffrey Bernstein. He said he felt comfortable reserving that money for open space because the city has other mechanisms of generating money for affordable housing, like the city’s vacation rental tax.

Eventually, councilmembers agreed to put in the requirement that the fees be used for open space acquisition.

Once the amendment agreement is set in place, the process would begin for the new owner to take over. As soon as that’s finalized, the clock starts on starting the initial clean-up. 

The next milestone for the project is June 2025, when the new owner must create lots that are ready to be recorded for the first 80 homes, as well as the park. The final milestone is November 2027 for the last lots to be created.

Councilmembers were cautiously optimistic about the future of the property, and emphasized to the future new owner the seriousness of the new agreement. 

“I want to stress publicly the need for SunCal to be a good neighbor,” said Garner. Bernstein agreed, saying, “We can’t let the neighbors go through this again.”

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