Rancho Mirage's planned Catana development to include 200 houses, nearly 100 apartments

Plans for more than 300 new homes in Rancho Mirage, including almost 100 for low-income residents, gained approval from the City Council last week. The 36-acre development off Ramon Road could eventually include shops, restaurants and offices.

The planned three-phase development is at the northwest corner of Ramon Road and Rattler Road, just south of Rancho Mirage High School. The council also approved a few zoning changes Thursday, including an overlay to allow for a higher density for the 94 affordable apartments planned.

What's in Rancho Mirage's Catana housing project?

Known as Catana, the proposal from McKeller McGowan Holdings LLC involves three planning areas, with only two of those — the ones focused on new housing — having active development plans so far.

The first area, which is closest to the high school, calls for 210 single-family homes, each with a two-car garage and backyard, as well as a central clubhouse, pool, gym and connected walkways for residents. Those homes will be available as long-term rentals at market rates, according to the developer.

Plans for the second area allow for up to 94 apartments available to people making between 30% and 60% of local median income levels, along with a central recreation area that will include a "tot lot," a community gathering space, a computer room and laundry facilities. As part of its vote, the council also approved a zoning change that allows for a density of up to 28 dwelling units per acre on that parcel, up from the site’s existing zoning of nine units per acre.

The third area, which will border Ramon Road and buffer the homes from the busy street, was permitted for up to 75,000 square feet of possible retail, dining and office space. The developer has yet to submit any development plans for that area, a city planning official told the council Thursday.

Completion of the entire project will likely take several years. The development agreement with the city requires initial building to begin within three years for the single-family homes, four years for the apartments and 10 years for the commercial component. From there, construction buildout is expected to take another two years, according to the specific plan approved by the council.

‘Bridge the gap’ from apartment renting into homeownership

Tim McGowan, president of the development company behind the project, told the council that his team thinks Catana will be “a welcome addition to our future residents and for the city of Rancho Mirage.”

With the single-family homes available as market-rate rentals, McGowan said he believes they’ll be “a perfect opportunity to bridge the gap between the world of homeownership and traditional apartment renting.” He added their aim is to attract an array of tenants, such as people not financially ready to buy their own home but who are seeking a “home lifestyle" in the meantime.

“Hopefully, they will live there and save up some money and they can buy their own home,” McGowan said. “We see empty nesters, or individuals who may have sold their home and want a simpler lifestyle without dealing with the responsibilities of home ownership, such as renovations, upgrades, maintenance, taxes, et cetera, (as prospective tenants).”

McGowan added that residents of the rental homes are expected to include school staff, teachers, nurses, firefighters, police officers, and workers for nearby restaurants and casinos.

Meanwhile, the 94-unit affordable project — which will likely be funded with a mix of private equity, state and federal tax credits and other housing programs — will open the door for residents who are at risk or have already been priced out of the area, McGowan said. The income range to qualify for the discounted apartments is between roughly $21,500 and $43,080 for an individual in Riverside County, according to state formulas.

Rancho Mirage city officials praise housing development

Before the unanimous vote, the council largely praised the project and said that it's sorely needed. Mayor Pro Tem Ted Weill said the proposal “fills a gap” in the city with its mix of housing options.

“The proof will be in the pudding when it's ultimately developed, but conceptually, I like it,” Weill said. “Of course, the key will be the financing (and) getting the money to be able to do it. If this is approved, I wish you the very best of luck in order to achieve the end result.”

City Manager Isaiah Hagerman also commended the project, pointing to the affordable housing overlay as a crucial tool to allow for the development. He also said the project’s single-family homes will fit the bill as “workforce housing” for nearby employers.

“When we look at housing as a whole, there's definitely a need for affordable housing, but there's also definitely a need for that middle step, and I think that this project addresses that,” Hagerman said.

Tom Coulter covers the cities of Palm Desert, La Quinta, Rancho Mirage and Indian Wells. Reach him at thomas.coulter@desertsun.com.

This article originally appeared on Palm Springs Desert Sun: Rancho Mirage development to include affordable apartments