Rancho Mirage planners OK tract map for a portion of Disney's 618-acre Cotino development

Rancho Mirage planning commissioners on Thursday approved a tentative tract map for nearly 200 homes that will be built as part of the Cotino Storyliving by Disney master-planned community.

The 618-acre project, also known as the Section 31 development, includes a 24-acre swimmable lagoon and resort hotel on vacant land that once belonged to the Annenberg Estate.

The unanimous decision regarding the subdivision of 70.44 acres of the project for 187 single-family homes followed some pushback from a few valley residents who, due to the current drought conditions, urged commissioners to delay their vote, and have the environmental impact report (EIR) that was certified by the City Council in 2019 done over again.  

“As you all know, the Colorado River basin is in extreme dire straits,” Alena Callimanis, of La Quinta, said.

She questioned the accuracy of the EIR’s assessment that Section 31 would consume about 1,532 acre-feet per year of water per year at build-out — less than the 1,915 acre-feet per year allowed by the Coachella Valley Water District.

“All this stuff (EIR and specific plan) was done in 2019 — three years ago. Things have changed,” Callimanis said. “The amount of Colorado River water, where CVWD thought they’d be getting 45% of the state water project, is down to only 5% … and as you probably heard the feds are probably going to come in August and say, if you guys all don’t drop the water (usage) … we’ll take care of that.”

For that reason, the EIR cannot be recertified, she said.

“You can’t make decisions on any new building here until you understand exactly what’s going on with the water,” Callimanis said.

After Callimanis' comments, one commissioner asked city staff whether the commission had the authority or leeway to order a fresh look at the EIR.

Majna Dukic, director of development services, replied that recertification of the EIR can be requested if the project has changed, but this project has not changed since the environmental impact report was certified and the specific plan approved.

The project has been approved and “is not on trial today,” said Mary Alexander, partner, executive vice president and general counsel to DMB Development.

DMB is the project developer but also manages the project for the property owners.

The project was approved for a 34-acre lagoon, but it has since been reduced to 24 acres, Alexander said.

“We’re not uncaring or oblivious to the drought conditions in California,” she said. “The other major concession that we are making, at great expense, is to pioneer a non-potable water system for residential users.”

All landscaping for the 618 acres will be drought tolerant, Alexander said, to mitigate having the water amenity that will be accessible not only to Cotino residents and guests of the hotel but also to the public with day pass options.

“We’ve had public hearings all along the way and received approval for this project,” Alexander said.

Besides shrinking the lagoon, another change that has been made since the specific plan was approved is the addition of 257 homes for residents 55 and older.

“Historically, water use is less in active adult communities because there aren’t large families using water in the homes,” Alexander said.

Water not the issue before the commission

Mass grading of the land, bordered by Frank Sinatra and Gerald Ford drives to the north and south and Bob Hope Drive and Monterey Avenue to the east and west, started this year.

Nearly 280 lots had been graded as of Thursday, Alexander said.

“Delay is not on our side because we’re in an environment of uncertain costs and it just isn’t acceptable to put the project on hold when it’s already been approved,” Alexander said.

Commissioner David Gray asked how the possibility of more severe water restrictions as a result of a worsening drought might impact the development of the lagoon.

“I can’t tell you exactly what we would do, but it’s certainly something we hope never arises,” Alexander said.

Planning Commission Chairperson Bill Maxwell said the only thing before the commissioners on Thursday was the request for a tentative tract map for 70.44 acres for 187 lots for single-family dwellings and landscaping for that area, considered phases 1B and 1C of the multiphase project.

“Nothing else,” Maxwell said.

With the commission’s approval, the application for the tentative tract map now heads to the City Council.

A final tract map for Phase 1A subdivision of 201.89 acres into 329 residential lots and associated infrastructure was approved by the City Council in November.

About Section 31 and Storyliving by Disney

Section 31 is one square mile of vacant land once owned by the Annenberg Estate. The property was initially zoned for The Eagle — a planned community that included residential, recreational and commercial uses, including three golf courses.

That project fell through and the land was bought for $75 million in 2018 by EC Rancho Mirage Holdings, a group of investors led by a Canadian private equity firm who then brought in DMB Development of Scottsdale, Arizona, to manage and develop the site.

In December 2019, the specific plan was approved for the site and the environmental impact report was certified by the City Council following a public hearing.

The specific plan allows for the development of a mixed-use community that includes resort hotels, a mixed-use town center, residential neighborhoods, a private street system and recreational open space amenities that include the 24-acre swimmable lagoon.

In February, Disney announced it had joined the project with plans to bring its newly created Storyliving by Disney master-planned community to Rancho Mirage. Called Cotino, it is planned to include 1,700 dwelling units for homeowners of all ages, including at least one section expressly for residents 55 and older.

Homebuyers will have a range of home types to choose from, including estates, single-family homes and condominiums, DMB Development CEO Brent Herrington said when it was announced that Disney was joining the project.

As allowed under the specific plan, Cotino will also offer a mixed-use district featuring a range of shopping, dining and entertainment, a "beachfront" hotel and a professionally managed beach park with recreational water activities that can be accessed by the public through the purchase of a day pass.

MSA, EC Rancho Mirage Limited Partnership and DMB Development are working in collaboration with Disney in designing Cotino, Alexander said.

At buildout, “Disney will become the owner and operator of the amenities within Cotino. They’re going to have a private club … available to all of the residents and potentially some limited outside use,” Alexander said.

Disney will also manage marketing and sales for the homebuilders, which she said are being lined up.

While the specific plan has been approved that outlines what the site will include with development, Cotino must still go through an application and approval process just as any other development project, city officials have said.

That process includes hearings before the Architectural Review Board, Planning Commission and ultimately the City Council with opportunities for public input at each of those steps, officials have said.

The city has not received any development applications that reference Cotino or Storyliving by Disney.

A groundbreaking ceremony for Cotino was held in April. Home sales are expected to open in early 2023 with the anticipation that the first residents will begin moving in around early 2024, Thomas Mazloum, president of Disney Signature Experiences, said at the groundbreaking.

Home pricing details have not been released

Desert Sun reporter Sherry Barkas covers the cities of La Quinta, Indian Wells, Rancho Mirage and Palm Desert. She can be reached at sherry.barkas@thedesertsun.com. Follow her on Twitter @TDSsherryBarkas

This article originally appeared on Palm Springs Desert Sun: Rancho Mirage planners OK tract map for part of Disney Cotino community