HomeMy WebLinkAbout2023-13 - Approving an Amendment to the Newport Place Planned Community Development Plan to Revise the Minimum Affordability Housing Percentage of the Residential Overlay (PA2023-0082)ORDINANCE NO. 2023-13
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, APPROVING AN
AMENDMENT TO NEWPORT PLACE PLANNED
COMMUNITY DEVELOPMENT PLAN TO REVISE THE
MINIMUM AFFORDABILITY HOUSING PERCENTAGE OF
THE RESIDENTIAL OVERLAY (PA2023-0082)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the
City Council with the authority to make and enforce all laws, rules and regulations with
respect to municipal affairs subject only to the restrictions and limitations contained in
the Charter and the State Constitution, and the power to exercise, or act pursuant to
any and all rights, powers, and privileges, or procedures granted or prescribed by any
law of the State of California;
WHEREAS, Newport Place is a Planned Community (PC), generally bounded
by MacArthur Boulevard, Jamboree Road, Birch Street and Bristol Street North, and
was originally designed in the early 1970's with clusters of office parks and industrial
uses;
WHEREAS, the 145-acre area has evolved with light industrial uses being
replaced over time with the commercial supported retail and office uses within the
original design;
WHEREAS, the introduction of the Mixed Use — Horizontal 2 (MU-H2) General
Plan Land Use classification as a part of the 2006 General Plan Land Use Element,
created an opportunity for residential uses;
WHEREAS, on July 24, 2012, the City Council of City of Newport Beach ("City")
amended the Newport Place PC (PC-11) creating the Residential Overlay ("Overlay");
WHEREAS, the Overlay was necessary to secure certification of the 4th Cycle
Housing Element because, at that time, it had a greater potential to accommodate the
City's Regional Housing Needs Assessment ("RHNA") for affordable housing;
WHEREAS, the Overlay implemented the Mixed Use — Horizontal 2 (MU-H2)
General Plan Land Use category for parcels within PC-11;
Ordinance No. 2023-13
Page 2of5
WHEREAS, the Overlay included use and development standards for residential
projects, including an inclusionary housing requirement that 30% of the residential units
in a development be made affordable to lower -income households for a minimum of 30
years;
WHEREAS, on September 13, 2022, the City Council adopted the 6th Cycle
Housing Element for the 2021-2029 period, which was certified by the State Department
of Housing and Community Development ("HCD") on October 5, 2022;
WHEREAS, the Airport Area Environs is one of the five focus areas where new
housing opportunity sites are identified to satisfy the 6th Cycle Housing Element's RHNA
allocation of 4,845 new housing units;
WHEREAS, at least 2,577 housing units are planned within the Airport Area
Environs, which comprises approximately 25% of the City's planned housing capacity;
WHEREAS, in addition to the existing residential sites allowed by the 2006
General Plan Land Use Element and the PC-11's Overlay, a total of 29 new housing
opportunity sites have been identified in the PC-11 in the 6th Cycle Housing Element;
WHEREAS, at the April 11, 2023, City Council meeting, City Council Member
Erik Weigand requested that an item be placed on a future City Council agenda that
reduced the inclusionary housing percentage for PC-11's Overlay from 30% to 15%;
WHEREAS, on May 9, 2023, the City Council adopted Resolution No. 2023-25,
initiating an amendment to PC-11 related to the minimum affordability percentage of the
PC-11's Overlay ("Amendment"), in accordance with Section 20.56.050(B)
(Development Plan Amendments) and Section 20.56.050(E) (Development Plan) of the
Newport Beach Municipal Code ("NBMC");
WHEREAS, a public hearing was held by the Planning Commission on June 22,
2023, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach.
A notice of time, place and purpose of the public hearing was given in accordance with
Government Code Section 54950 et seq. ("Ralph M. Brown Act") and Chapter 20.62
(Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and
considered by, the Planning Commission at this public hearing;
Ordinance No. 2023-13
Page 3 of 5
WHEREAS, at the public hearing, the Planning Commission adopted Resolution
No. PC2023-025 by a majority vote (5 ayes, 0 nays, 2 recusals), recommending the City
Council approve the Amendment;
WHEREAS, due to the proposed Amendment, California Public Utilities Code
Section 21676(b) requires the City to refer Amendment to the Orange County Airport
Land Use Commission ("ALUC") for a determination that the Amendment is consistent
with the Airport Environs Land Use Plan ("AELUP") for John Wayne Airport;
WHEREAS, on July 20, 2023, the ALUC found the Amendment is consistent
with the AELUP; and
WHEREAS, the City Council held a public hearing on July 25, 2023, in the City
Council Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time,
place and purpose of the public hearing was given in accordance with California Public
Utilities Code Section 21676(b), the Ralph M. Brown Act and Chapter 20.62 (Public
Hearings) of the NBMC. Evidence, both written and oral, was presented to, and
considered by, the City Council at this public meeting.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: The City Council hereby approves the amendment to the Newport
Place Planned Community Development Plan (PC-11)which is attached hereto as
Exhibit "A" and incorporated herein by reference with all other provisions of the Newport
Place Planned Community (PC-11)and supporting maps remaining unchanged and in
full force and effect.
Section 2: Newport Place Planned Community Development Plan Amendment
is a legislative act. Neither PC-11 or Chapter 20.56 (Planning and Zoning, Planned
Community District Procedures), or Article 2 (Adoption of Regulations) of Chapter 4
(Zoning Regulations) of Division 1 (Planning and Zoning) of Title 7 (Planning and Land
Use) of the California Government Code set forth any required findings for either
approval or denial of the Amendment. Notwithstanding the foregoing, the Amendment is
consistent with the following City of Newport Beach 6t" Cycle Housing Element Policy
and Policy Action:
Ordinance No. 2023-13
Page 4 of 5
Housing Policy 4.1 Housing opportunities for as many renter- and owner -occupied
households as possible in response to the market demand and RHNA obligation for
housing in the City.
The Amendment would be a step in the implementation of the 6th Cycle Housing
Element by mitigating potential governmental constraints through the reduction of
affordable housing percentage from 30% to 15%, facilitating construction of market -rate
housing and affordable housing for all income groups. According to the February 17,
2022, Inclusionary Housing Financial Evaluation, prepared by Keyser Marston
Associates for the City of Newport Beach, inclusionary housing percentages higher than
15% would likely be too high, rendering most residential projects financially infeasible.
Reducing the inclusionary percentage would reduce the potential impediment and would
also affirmatively further fair housing consistent with Policy Action 4A.. Affirmatively
Furthering Fair Housing provided in the 6tn Cycle Housing Element.
Section 3: The recitals provided in this ordinance are true and correct and are
incorporated into the substantive portion of this ordinance.
Section 4: If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this ordinance. The
City Council hereby declares that it would have passed this ordinance and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 5: The City Council finds the introduction and adoption of this
ordinance is not subject to the California Environmental Quality Act ("CEQA") under
Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment) and 15060(c)(3) (the activity is not a
project as defined in Section 15378) of the CEQA Guidelines, California Code of
Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in a
physical change to the environment, directly or indirectly.
Ordinance No. 2023-13
Page 5 of 5
Section 6: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published pursuant to City Charter Section 414. This ordinance shall be effective thirty
calendar days after its adoption.
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 25th day of July, 2023, and adopted on the 22nd day of
August, 2023, by the following vote, to -wit:
AYES: Mayor Blom, Council Member Avery, Council Member Grant,
Council Member Kleiman, Council Member Weigand
NAYS:
ABSENT: Mayor Pro Tern O'Neill
RECUSED: Council Member Stapl
ATTEST:
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LEILANI I. BROWNI CITY CLERK; . _
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APPROVED AS TO FORM:
CITY TORNEY'S OFFICE.
R N C. HARP, CITY ATTORNEY
Attachment(s): Exhibit A- Amendment to Newport Place Planned Community
(PC-11)
Exhibit "A"
Newport Place Planned Community (PC11) Amendment
Amend Part III. Residential Overlay Zone, Section IV.A .3 to read as follows:
A minimum of 38 15 percent of the units within the residential development shall be
affordable to lower -income households and subject to a 30-year affordability covenant.
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing ordinance, being Ordinance
No. 2023-13 was duly introduced on the 251h day of July, 2023, at a regular meeting, and adopted by the
City Council at a regular meeting duly held on the 22nd day of August, 2023, and that the same was so
passed and adopted by the following vote, to wit:
AYES: Mayor Noah Blom, Council Member Brad Avery, Council Member Robyn Grant,
Council Member Lauren Kleiman, Council Member Erik Weigand
NAYS: None
RECUSED: Council Member Joe Stapleton
ABSENT: Mayor Pro Tern Will O'Neill
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said
City this 23rd day of August, 2023.
STATE OF CALIFORNIA }
COUNTY OF ORANGE }
CITY OF NEWPORT BEACH }
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Leilani I. Brown, MMC
City Clerk
City of Newport Beach, California
CERTIFICATE OF PUBLICATION
ss.
I, LEILANI I. BROWN, City Clerk of the City of Newport Beach, California, do hereby certify that
Ordinance No. 2023-13 has been duly and regularly published according to law and the order of the City
Council of said City and that same was so published in The Daily Pilot, a newspaper of general circulation
on the following dates:
Introduced Ordinance: July 29, 2023
Adopted Ordinance: August 26, 2023
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In witness whereof, I have hereunto subscribed my name this kh day of Ai-g t, 2023.
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_ Leilani I. Brown, MM
- X City Clerk
City of Newport Beach, California
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