HomeMy WebLinkAboutPC2023-038 - RECOMMENDING CITY COUNCIL AUTHORIZE SUBMITTAL OF A LOCAL COASTAL PLAN AMENDMENT TO THE CALIFORNIA COASTAL COMMISSION REQUESTING TO AMEND TITLE 21 (LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN) OF THE NEWPORT BEACH MUNICIPAL CODE RELATED TO SHORRESOLUTION NO. PC2023-038 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF NEWPORT BEACH, CALIFORNIA RECOMMENDING CITY COUNCIL AUTHORIZE SUBMITTAL OF A LOCAL COASTAL PLAN AMENDMENT TO THE CALIFORNIA COASTAL COMMISSION REQUESTING TO AMEND TITLE 21 (LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN) OF THE
NEWPORT BEACH MUNICIPAL CODE RELATED TO SHORT TERM LODGING (PA2023-0116) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS:
SECTION 1. STATEMENT OF FACTS. 1. Section 30500 of the California Public Resources Code requires each county and city to prepare a Local Coastal Program (“LCP”) for that portion of the coastal zone within
its jurisdiction.
2. In 2005, the City adopted the City of Newport Beach Local Coastal Program Coastal Land Use Plan as amended from time to time.
3. The California Coastal Commission effectively certified the City’s Local Coastal Program
Implementation Plan on January 13, 2017, and the City added Title 21 to the NBMC whereby the City assumed coastal development permit-issuing authority on January 30, 2017.
4. On May 23, 2023, the City Council directed the Planning Commission to identify
opportunities to modify Titles 20 and 21 of the NBMC, effectively initiating amendments, to facilitate new visitor serving accommodation opportunities within the Mixed-Use Water (MU-W2) and Mixed-Use Cannery Village and 15th Street (MU-CV/15th St.) zoning districts (“LCP Amendment”).
5. On June 22, 2023, the Planning Commission discussed the potential to amend Titles 20 and 21 to facilitate new visitor serving accommodations. 6. Pursuant to Section 13515 (Public Participation and Agency Coordination Procedures)
of the California Code of Regulations Title 14, Division 5.5, Chapter 8, Subchapter 2, Article 5 (Public Participation) (“Section 13515”), drafts of LCP Amendment (PA2023-0116) were made available and a Notice of Availability was distributed at least six weeks prior to the anticipated final action date.
7. A public hearing was held on October 19, 2023, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the California Government Code Section 54950 et seq. (“Ralph M. Brown Act”) and Chapter 21.62 (Public Hearings) of the NBMC.
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Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing.
SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION.
1. The LCP Amendment is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(2) of the CEQA
Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that
a project is not further review under CEQA if the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. The Code Amendment would allow existing residential dwelling units in mixed-use zones to be used for short term lodging. The Code Amendment would not authorize new development that would result in
a physical change in the environment.
SECTION 3. FINDINGS. 1. The LCP Amendment (PA2023-0116) is consistent with the City’s General Plan. It would serve
to implement the following goals and policies of the General Plan:
Land Use Element Policy LU 2.6 (Visitor Serving Uses), which states, “Provide uses that serve visitors to Newport Beach’s ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents.” The proposed amendment would
allocate and allow 75 short term lodging permits within the MU-W2 and MU-CV/15th St.
coastal zoning districts, subject to specific regulations that would require the operation of short-term lodging would be subject to a permit issued by the City, managed by professional management, and not impact parking in the neighborhood. The amendment would also maintain the existing Citywide maximum cap of 1,550 permits by establishing a maximum cap
of 1,475 permit with residential coastal zoning districts and a maximum cap of 75 permit within
the MU-W2 and MU-CV/15th St. coastal zoning districts. This would maintain the existing allowance for this type of visitor accommodations in the City without altering existing provisions and regulations on short term lodging previously adopted to protect residential neighborhoods.
Land Use Element Goal LU 4, which states, “Management of growth and change to protect
and enhance the livability of neighborhoods and achieve distinct and economically vital business and employment districts, which are correlated with supporting infrastructure and public services and sustain Newport Beach’s natural setting.” In specific mixed-use zones larger scale (twenty (20) or more units) would be permitted to operate. This provides additional
opportunities for properties in the mixed-use zones to achieve and maintain economic viability
and minimizes impacts on residential neighborhoods. 2. The LCP Amendment serves to implement Coastal Land Use Plan (CLUP) Table 2.1.1-1 (Land Use Plan Categories) of the LCP, which establishes the type, density, and intensity
of land uses within the coastal zone. The amendment would allow the operation of short-
term lodging in certain mixed-use coastal zoning districts where the commercialization of existing residential dwellings as visitor accommodations is more appropriate. This is consistent with allowing visitor serving accommodations in the mixed-use zones while maintaining the adopted regulations to protect residential zones.
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3. CLUP Policy 2.3.3-6 authorizes the short-term rental of dwelling units as a means of
providing lower-cost overnight visitor accommodations. The City currently limits the
maximum number of short-term rentals at a cap of 1,550 permits to prevent adverse impacts to residential areas and preserve housing stock within the coastal zone. To allow for the small expansion of short term lodging in the more appropriate mixed use coastal zoning districts, but maintain and protect existing maximum cap of 1,550 permits, this amendment
establishes two separate caps: 1) a maximum cap of 1,475 permit with residential coastal
zoning districts; and, 2) a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal zoning districts. 4. The LCP Amendment (PA2023-0116) shall not become effective until approval by the
California Coastal Commission and adoption, including any modifications suggested by the
California Coastal Commission, by resolution and/or ordinance of the City Council of the City of Newport Beach.
5. The LCP, including the LCP Amendment (PA2023-0116), will be carried out fully in conformity with the California Coastal Act.
6. The recitals provided in this resolution are true and correct and are incorporated into the
operative part of this resolution. SECTION 4. DECISION.
NOW, THEREFORE, BE IT RESOLVED:
1. The Planning Commission of the City of Newport Beach hereby finds Local Costal Program Amendment PA2023-0116 is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(2) of the CEQA
Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that
a project is not further review under CEQA if “[t]he activity will not result in a direct or reasonably foreseeable indirect physical change in the environment.” The Code Amendment would allow existing residential dwelling units in mixed use zones to be used as short-term lodging. The Code Amendment would not authorize new development that
would result in a physical change in the environment.
2. The Planning Commission hereby recommends the City Council authorize staff to submit the Local Coastal Program Amendment PA2023-0116, as set forth in Exhibit “A,” which is attached hereto and incorporated herein by reference, to the California Coastal
Commission.
PASSED, APPROVED, AND ADOPTED THIS 19TH DAY OF OCTOBER 2023. AYES: Harris, Lowrey, and Salene
NOES: Barto
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RECUSED: Langford
ABSENT: Ellmore and Rosene
BY:___________________________
Tristan Harris, Secretary
BY:____________________________ Seimone Jurjis, Ex-Officio Secretary
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EXHIBIT “A”
LOCAL COSTAL PLAN AMENDMENT NO. PA2023-0116 Section 1: Rows entitled “Visitor Accommodations, Residential” and “Short Term Lodging”
are hereby added to the “Residential Uses” section of Table 21.22-1 (Allowed Uses) of Section
21.22.020 of the Newport Beach Municipal Code as follows:
TABLE 21.22-1 ALLOWED USES
Mixed-Use Zoning Districts
A Allowed
— Not Allowed *
Land Use
MU-V (6) MU-MM (4) MU-CV/15th St. (5)(6) Specific Use Regulations See Part 7 of this Implementation Plan for land use definitions.
See Chapter 21.12 for unlisted uses.
Residential Uses
Single-Unit Dwellings
Located on 1st floor — — A (3)
Located above 1st floor A (1) — A (3)
Multi-Unit Dwellings
Located on 1st floor — A (1)(2) A (3)
Located above 1st floor A (1) A (1)(2) A (3)
Two-Unit Dwellings
Located on 1st floor — — A (3)
Located above 1st floor A (1) — A (3)
Home Occupations A A (1) A
Live-Work Units A A (1)(2) A (3)
Accessory Dwelling Units and Junior Accessory Dwelling Units A A A Section 21.48.200
Visitor Accommodations, Residential
Short-Term Lodging — — A Chapter 5.95 and Section 21.48.115
Section 2: Rows entitled “Visitor Accommodations, Residential” and “Short Term Lodging”
are hereby added to the “Residential Uses” section of Table 21.22-2 (Allowed Uses) of Section 21.22.020 of the Newport Beach Municipal Code as follows:
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TABLE 21.22-2 ALLOWED USES
Mixed-Use Coastal Zoning Districts
A —
Allowed
Not Allowed *
Land Use
MU-W1 (3) MU-W2 (5) Specific Use Regulations See Part 7 of this Implementation Plan for land use definitions.
See Chapter 21.12 for unlisted uses.
Residential Uses
Single-Unit Dwellings
Located on 1st floor — —
Located above 1st floor A (1) A (2)
Multi-Unit Dwellings
Located on 1st floor — —
Located above 1st floor A (1) A (2)
Two-Unit Dwellings
Located on 1st floor — —
Located above 1st floor A (1) A (2)
Home Occupations A A (2)
Accessory Dwelling Units and Junior Accessory Dwelling Units A A Section 21.48.200
Visitor Accommodations, Residential
Short-Term Lodging — A Chapter 5.95 and Section 21.48.115
Section 3: Section 21.48.115 (Short-Term Lodging) of the Newport Beach Municipal Code is amended in its entirety to read as follows:
21.48.115 Short-Term Lodging. A. Purpose. This section provides standards for the operation of short-term lodging units to prevent overburdening City services and adverse impacts on residential neighborhoods, multi-use areas, and on coastal access and resources.
B. Permits within a Residential District.
1. No owner of a short-term lodging unit shall advertise for rent, or rent a lodging unit located within a residential district for a short term, without a valid short-term lodging permit for that unit, issued pursuant to Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance
with the provisions of Chapter 5.95.
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3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short-term lodging permits shall be limited to one thousand four hundred seventy-five (1,475) permits
within a residential district at any time. If there are more than one thousand four hundred
seventy-five (1,475) valid permits that have been issued within a residential district as of the effective date of Ordinance No. 2023-___, no new permit shall be issued to any person on the waiting list, as described in Section 5.95.042(D), until the total number of permits does not exceed the one thousand four hundred seventy-five (1,475) limit. To avoid
wholesale conversion of existing and new housing complexes into short-term lodgings,
multi-unit developments within a residential district with five (5) or more units may permit a maximum of twenty (20) percent of the total number of units to be short-term lodgings (rounded down to the nearest whole number).
4. No short-term lodging unit shall be permitted on any lot in the R-1 (Single-Unit
Residential) Coastal Zoning District or any lot designated for single-unit dwelling land use
as part of a planned community development plan, unless the short-term lodging unit was legally established on or before June 1, 2004.
C. Permits within Mixed-Use Water Zoning District (MU-W2) and Mixed-Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.).
1. No owner of a short-term lodging unit shall advertise for rent, or rent a lodging unit
located within the Mixed-Use Water (MU-W2) or Mixed-Use Cannery Village and 15th Street (MU-CV/15th St.) zoning districts for a short term, without a valid short-term lodging permit for that unit, issued pursuant to Chapter 5.95.
2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in
accordance with the provisions of Chapter 5.95.
3. As set forth in Section 5.95.042 of Chapter 5.95, the maximum number of short- term lodging permits shall be limited to a total of seventy-five (75) permits within the MU-W2 and MU-CV/15th St. districts at any time. No new permit shall be issued to anyone on the waiting list, as described in Section 5.95.042(F), until the total number of permits does not
exceed the seventy-five (75) limit. Notwithstanding the foregoing, the seventy-five (75)
permit maximum shall not apply to a short term lodging unit that was legally established as of INSERT DATE on a lot within a Mixed-Use Coastal Zoning District provided the owner maintains a valid short term lodging permit that is not subsequently revoked or abandoned.
4. Only a property owner that owns twenty (20) or more units under common ownership
within the same Statistical Area as defined by the Land Use Element of the General Plan
shall be eligible to obtain a short-term lodging permit(s) in the MU-W2 and/or MU-CV/15th St. districts. The eligible units may be located upon one (1) or more separate parcels or properties provided they cumulatively add up to twenty (20) or more units, and all units are located within the MU-W2 and/or MU-CV/15th St. districts. Common ownership means the
same person, entity or managing partner holds legal and/or equitable title to no less than
fifty percent (50%) of each property or entity.
D. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall comply with all Federal, State, and local laws, rules, regulations and conditions of approval including, but not limited to, all short-term lodging
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permit conditions, as set forth in Chapter 5.95. In addition, the owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall:
1. By written agreement, limit overnight occupancy of the short-term lodging unit to the
maximum permitted by the Building Code and Fire Code.
2. Use best efforts to ensure that the transient user, occupants and/or guests of the short-term lodging unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of this Code or any State or Federal law pertaining to noise,
disorderly conduct, the consumption of alcohol, or the use of illegal drugs.
3. Upon notification that any transient user, occupant and/or guest of his or her short-term lodging unit has created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of this Code or any State or Federal law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs, promptly use best
efforts to prevent a recurrence of such conduct by any transient user, occupant or guest.
4. Use best efforts to ensure compliance with applicable health and sanitation regulations relating to waste disposal.
5. Post a copy of any applicable permits and conditions in a conspicuous place within the unit.
6. Not rent, let, advertise for rent, or enter into an agreement for the rental of any lodging
unit, for less than two consecutive nights.
7. The City Manager shall have the authority to impose additional standard conditions, applicable to all short-term lodging units, as necessary to achieve the objectives of this section.
E. Additional Requirements for Newport Island (Map A-16). To the extent there is any conflict
between this subsection and other provisions of the Code related to short-term rentals on Newport Island (Map A-16), this subsection shall govern and control.
1. In addition to the restriction set forth in Section 5.95.042 and subsection (B)(3) of this section, the maximum number of short-term lodging permits issued for units located on
Newport Island shall be limited to twenty (20) short-term lodging permits at any one time. If
there are more than twenty (20) valid short-term lodging permits that have been issued as of January 13, 2022, an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95; however, no new permit shall be issued unless: (a) permits are available for issuance pursuant to Section 5.95.042 and
subsection (B)(3) of this section; and (b) the total number of permits for units located on
Newport Island does not exceed twenty (20). If the City has issued the maximum number of permits available for units on Newport Island, the City shall maintain a waiting list and follow the same procedures as set forth in Section 5.95.042(D). For purposes of this subsection, the maximum number of permits available will be calculated in the same
manner as set forth in Chapter 5.95.
2. An owner, agent, or other person shall only be allowed to rent a dwelling unit on Newport Island for a short term if the dwelling unit is located on a lot with an owner-occupied
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dwelling unit that is managed by the owner of the owner-occupied dwelling unit. For purposes of this subsection, the term “owner-occupied” means the owner occupies and
lives at the property and the property is used as the owner’s primary residence. For
purposes of this subsection, “managed by the owner” means that the owner is occupying and living at the property while it is being rented or a short-term use.
3. The owner and/or agent shall limit the overnight occupancy of the short-term lodging unit on Newport Island to the lesser of: (a) the number of occupants that can be
accommodated consistent with the on-site parking requirement set forth in subsection
(E)(4) of this section, or (b) two persons per bedroom plus two additional persons, up to a maximum of ten (10) persons. Additional daytime guests are allowed between the hours of 7:00 a.m. and 10:00 p.m. with the maximum daytime occupancy limited to a number equal to maximum overnight occupancy plus six additional persons. The occupancy restrictions
set forth in this subsection shall be set forth in a written rental agreement.
4. Each short-term lodging unit on Newport Island shall provide a minimum of one parking space in an existing garage or carport. Occupancy shall be limited to a maximum of five overnight guests for a short-term lodging unit providing only one parking space. The parking required by this subsection shall be free of obstructions and available for use by the short-
term lodging user.
5. Any existing permit holder of a dwelling unit that is not located on an owner-occupied lot per subsection (E)(2) of this section or does not meet the parking requirements of subsection (E)(4) of this section will be permitted to retain their permit until January 13, 2023.
6. No owner, agent, or other person shall rent or let a short-term lodging unit on Newport
Island more than once in any seven-consecutive-day period.
F. Additional Requirements for the Mixed-Use Water Zoning District (MU-W2) and Mixed-Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). To the extent there is any conflict between this subsection and other provisions of the Code related to short-term
lodging within the MU-W2 district or MU-CV/15th St. district, this subsection shall govern and
control.
1. Prior to issuance of a short-term lodging permit, a management plan shall be submitted for review and approval by the Community Development Director. The management plan shall include the following:
a. Acknowledgement and method of compliance with all operational standards identified in Subsection 21.48.115(D) for all short-term lodging units on the property or properties;
b. Identification of professional management responsible for administering the permit;
c. Evidence of eligibility and compliance with ownership requirements of Subsection
21.48.115(C)(4) above;
d. Demonstration that on-site amenities are provided to guests; and
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e. Parking management plan ensuring all available on-site parking remain free of obstructions and available for use by the short-term lodging user. For short-term
lodging units that are non-conforming due to number of parking spaces provided,
sufficient data to indicate that parking demand will be less than the required number of spaces or that other parking is available (e.g., City parking lot located nearby, on-street parking available, greater than normal walk in trade, alternative transportation, etc.) such that use or operation of the short term lodging permit will not reduce
availability of parking in nearby residential neighborhoods.
2. No deed-restricted affordable housing units shall be used for short-term lodging.
Section 4: The definition of “Bed and breakfast inn” of 21.70.020 (Definitions of
Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as
follows:
1. “Bed and breakfast inn” means a dwelling unit that offers guest rooms or suites for a
fee for thirty (30) days or less, with incidental eating and drinking service provided from a
single kitchen for guests only.
Section 5: The definition of “Short-term lodging” of 21.70.020 (Definitions of Specialized
Terms and Phrases) of the Newport Beach Municipal Code is amended to read as follows:
7. “Short-term lodging” means a dwelling unit that is rented or leased as a single
housekeeping unit (see “Single housekeeping unit”) for a period of thirty (30) days or less.
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