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HomeMy WebLinkAbout10/30/2007 - Adjourned Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Adjourned Regular Meeting Joint Meeting with the Planning Commission October 30, 2007 — 7:00 p.m. I. RECONVENED AT 7:00 P.M. II. I ROLL CALL Present: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor Rosansky, Council Member Webb; Council Member Daigle, Council Member Gardner, Planning Commission Chair Hawkins, Planning Commission Vice Chair Peotter, Planning Commissioner Toerge, Planning Commissioner Eaton, Planning Commissioner Cole, Planning Commissioner McDaniel, Planning Commissioner Hillgren III. PLEDGE OF ALLEGIANCE - Mayor Pro Tem Selich IV City Attorney Clauson announced that a new item from Code Enforcement needs to be added to the agenda to be discussed in Closed Session pursuant to.GC §54956.9(c). She stated that the item came forward after the agenda was posted and they would be discussing whether to initiate litigation against one or more group home businesses in violation of the moratorium. She explained the procedure for adding the item to the agenda. Motion -by Mayor Ro_sansk_y to add a new item to the agenda from Code Enforcement to be discussed in Closed Session pusuant to GC §54956.9(c) to discuss whether to initiate litigation against one or more group home businesses in violation of the moratorium. The motion carried by the following roll call vote: Ayes: ,Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor Rosansky, Council Member Webb, Council Member Daigle, Council Member Gardner Council recessed to Closed Session at 7:05 p.m. and reconvened the meeting at 7:17 p.m. with all members of Council in attendance_ Mayor Rosansky reported that, during Closed Session, the City Council unanimously voted to authorize Richards, Watson & Gershon to pursue legal action on the City's behalf up to and including litigation against any entity or person that has shown to '.or allegedly has opened or established a new group residential use that is transitory in nature in violation of the current moratorium on such uses. r 1. PRESENTATION BY THE IRVINE COMPANY ON PROPOSED PLANNED COMMUNITY REGULATIONS, TRANSFER OF DEVELOPMENT RIGHTS, AND DEVELOPMENT AGREEMENT FOR NEWPORT CENTER AND FASHION ISLAND. Mayor Rosansky provided a background on the issue and the negotiations that have occurred with The Irvine Company (TIC): Dan Miller, Senior Vice President of Entitlement and Public Affairs for The Irvine Company, Volume 58 - Page 812 City of Newport Beach City Council Minutes October $0, 2007 stated that the vision for Newport Center includes residential, office, and retail uses, and a City Hall location. Rob Elliott, Group Senior Vice President of Urban Planning and Design for The Irvine Company, reviewed the planning history, evolution of Newport Center, codification of planning framework, and architectural and landscape guidelines. He reviewed the Circulation Element, including pedestrian connections, and displayed how each block will have its own urban structure. He assured everyone that any new building has to respond to existing conditions. He discussed synergistic land uses and addressed the current civic uses. He noted that Newport Center is also a community gathering place. Dan Miller reviewed the history of the General Plan Update and stated that, from May 2007 to October 2007 they have been working on negotiating terms and provisions for the development agreement. He reviewed TIC's plans and discussed how they are working with City staff to bring zoning into compliance with the General Plan. He reviewed the scope of the development agreement negotiations which recognizes existing contractual relationships between the City and TIC, and noted that they have to be consistent with Measure S. He reported that the General Plan allows residential uses, which they would have in block 600, and noted that the new City Hall could be in block 500. He added that this allows for additional tenants at Fashion Island. He reviewed the terms of the development agreement and the next steps. In response to Council Member Webb's question regarding the $4.7 million in road improvements and right -of- -way dedication in Newport Center, Mr. Miller indicated that TIC will convey the OCTA parcel or library parcel to the City if the City decided not to build the new City Hall at the 500 block site; however, they will not do that for the current site. City Attorney Clauson explained that Council can choose to waive information received in Closed Session. Mayor Pro Tem Selich reported that the current site received an appraised value of $145 /square foot (sf) for a 53,000 sf building; however, square footage may change based on design. In response to Council Member Daigle's question regarding the Colony Apartments, Mr. Miller stated that the goal is to have mixed uses so people stay out of their cars. Planning Commissioner Eaton noted that the development agreement and other issues will be coming before the Planning Commission on November 15 and asked if it will require an addendum to the General Plan, why the tier process that the General Plan contemplated is not being proposed, and whether there will be any enhanced design standards. In response to Planning Chairman Hawkins' questions, Mr. Miller explained that the CIOSA and Bonita Canyon development agreements included obligations for open space, roadway improvements, the Bonita Canyon Sports Park, and widening of roads, and noted that TIC has fulfilled all the dedication requirements. He reported that there is no need for the two agreements. Regarding the City Hall option by the Central Library, he indicated that this is addressed in the development agreement and TIC will cooperate with Council and the community. He reported that there is $2.2 million left in CIOSA that is being carried over. City Attorney Clauson noted that, if the CIOSA agreement is eliminated, that will be one document that doesn't need to be amended if the final decision is to place City Hall on the park site. Regarding placing residential units in the 600 block, Mr. Miller indicated that the General Plan Affordable Housing Plan will be brought before the Planning Commission and Council. Evelyn Hart, President of Friends of OASIS and co -chair of the OASIS Senior Center Building Fund Committee, stated that she is excited about the $5 million from fundraising. Mayor Volume 58 Page 313 City of Newport Beach City Council Minutes October 30, 2007 Rosansky clarified that the $11 million park fee will come from units TIC intends to build and that half of that will be allocated to the OASIS Senior Center as a matching grant. He emphasized that the community is expected to raise the other half. Jan Vandersloot supported the option to place City Hall in the 500 block of Newport Center since it fulfills the residents' wishes to have a centrally located City Hall, traffic will be handled better, it will be cheaper to build since no grading is needed, and the location will not require a Measure S vote. He believed that Council and TIC should abide by the previous commitments to have open space above the library. Dick Nichols believed that building the 430 residential units puts Newport Center at build -out. Mr. Miller reported that they are not asking for any additional square footage and indicated that they plan to build the residential units that were approved by the voters in the new General Plan. Further, they are aware how much they can build to reach full build out. He reported that, of the 278,000 sf of unbuilt office space, TIC will be conveying 72,000 sf for the new City Hall in the 500 block. He noted that they have not generated the plans yet. In response to Ron Hendrickson's questions, Mayor Rosansky explained that the 276,000 sf entitlement transfer from block 600 to block 500 will be done on a traffic - neutral basis. He indicated that, of the 276,000 sf, TIC is offering to sell 72,000 sf to the City for City Hall. He noted that a parking structure will also be built. He clarified that the land value of $145 /sf estimate includes full entitlement. Council Member Curry added that the 72,000 sf will remain with TIC if the City decides not to build in the 500 block. Dolores Otting addressed the appraisal, asked what the timeframe is, and addressed the issues raised by Commissioner Eaton. She objected that TIC will not be doing a supplemental EIR or mitigated negative declaration so people have time to look at this. She asked how much TIC will pay per square foot compared to Lennar and believed that this is a way around the initiative. Mayor Rosansky emphasized that negotiations have not been completed and that today's meeting is to also give the public more exposure. to the project. He indicated that Lennar paid about $63,000 /unit. Nancy Skinner stated that she is surprised to hear that hotel rooms and retail space will be transferred into office buildings since that use doesn't produce the same as hotel rooms. She hoped that the $27 million for the City Hall will be given up front and not at the end. Hugh Logan expressed support for the proposed plan. Bob Caustin, Defend the Bay, expressed hope that the amounts TIC will pay have been set in stone and believed that this request gives them entitlement. He noted that nothing has been discussed about taking care of water quality, especially within Newport Center since water drains into the Bay. He questioned the idea of the project being traffic - neutral. Bernie Svalstad addressed issues with the initiative and believed that everything Ms. Otting mentioned is the same argument for not putting City Hall on the park site. Mayor Rosansky reported that, if the City enters into the development agreement as drafted today, the form of acquisition for the parcel would be an option to purchase the property. Further, there will be no requirement for the City to purchase the property at the price that was agreed to. He clarified that the $27 million can be used for a City Hall anywhere in the City. Mayor Pro Tem Selich added that they have attempted to negotiate it irrespective of the vote in February. In response to Commissioner Toerge's questions, Mayor Rosansky noted that the project will include a Planned Community (PC) Text, ordinances, and a development agreement, which will be reviewed by the Planning Commission. City Attorney Clauson reported that the PC Text is Volume 58 - Page 814 City of Newport Beach City Council Minutes October 30, 2007 intended to reflect the goals and policies that were drafted in the General Plan. The Planning Commission will review this to see if there is enough control over the development without knowing exactly how the project will look. Regarding the development, the Commission would make a recommendation to Council whether to approve the project or not. She stated that Council determines the benefits derived from the project in exchange for the development agreement, but the Commission will look at the development agreement as an overall public benefit in exchange for the development rights. Assistant City Manager Wood added that urban design regulations will accompany the PC Text and that an Affordable Housing Implementation Plan will also be included. Council Member Curry congratulated Mayor Rosansky and Mayor Pro Tem Selich for negotiating the agreement which includes more than $43 million of funds for public facilities and $41 million that will pay the long term financing costs that.the City would have incurred without the development agreement fees from the project. He emphasized that funding will be available for the OASIS Senior Center. He noted that TIC does not intend to build any more hotels and believed that this project can be used as a unifying factor on City Hall. Council Member Daigle thanked the Planning Commission for being in attendance. She noted that Land Use Policy 2.3 states that the City will strive for a range of residential choices in Newport Center. V. PUBLIC COMMENTS Dolores Otting distributed documents relative to fluoride. Dick Nichols addressed fluoridation issues. Bernie Svalstad, McFadden Square Legacy Centennial Project, reported that the construction project will be coming before Council in about a month. VI. ADJOURNMENT - 8:10 p.m The agenda for the Adjourned Regular Meeting was posted on October 24, 2007, at 2:40 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building, City Clerk oc,kL Qr V Recording Secretary :2 Mayorq� Volume 58 - Pa