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HomeMy WebLinkAbout09/11/2012 - Study Sessionh City Council Minutes City Council Study Session September 11, 2012 — 4:00 p.m. I. ROLL CALL - 4:00 p.m. Present: Council Member Hill, Council Member Rosansky, Mayor Pro Tem Curry, Mayor Gardner, Council Member Selich, Council Member Henn, Council Member Daigle II. CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. In response to Mayor Gardner's question regarding Item 13 (Request to Retain Existing Non - Standard Private Improvements within the Public Right -of -Way), Public Works Director Webb stated that he will clarify if a sidewalk is included at the regular City Council meeting. 2. RE -USE OF THE CURRENTY CITY HALL SITE. Council Member Henn stated that he has a business relationship with a business in Via Lido Plaza, and although he does not believe this is a conflict, he is recusing himself to avoid the appearance or the potential for a conflict. Community Development Director Brandt presented a PowerPoint of the City Hall Complex Reuse that included the current site information, project background, market study findings, PKF Market Study conclusions, economic implications, comparison chart, summary, conclusion, and next steps. In response to Council Member Rosansky's question, City Manager Kiff stated that the fire station is factored into the public benefit calculation. In response to Council Member Selich's questions, Community Development Director Brandt explained that public access is not something that would normally be associated with a private property. In response to Council questions, Bruce Voltan (PKF) explained the methodology used relative to terminal cap and discount rates. He stated that the hotel would be a four star unbranded hotel and explained that character hotels are easier to fit the beach theme. In response to Council Member Selich's question, Community Development Director Brandt stated that the final step is looking at direct and indirect spending associated with a hotel and apartments and stated that a staff report with a fiscal impact will be presented to Council at an upcoming City Council meeting. Council Member Selich commented on the various scenarios, indicated he was surprised that the consultant believed that this was the best site for two boutique hotels, addressed the differences in rents obtained between the two hotels and the proposed residential units, and noted the Volume 60 - Page 567 City of Newport Beach City Council Study Session September 11, 2012 benefits of using the site to subsidize or stimulate surrounding development as opposed to maximizing the revenue for other projects in the City. Council Member Hill found the study interesting, stated that it confirms some assumptions and brought some surprises, commented on improving the area to provide reliable and predictable income for funding other projects, stated that it will be difficult for the Coastal Commission to approve residential units on the Lido Village site, noted that there is a need to understand the fiscal impacts to see what would trickle down to the City in terms of reliable and predictable funds, and recommended moving forward to the Request for Qualifications (RFQ) process to select a developer to work on the site. Mayor Gardner commented on impacts to other areas in Newport Beach. Council Member Rosansky agreed with Council Member Hill that the City needs to move forward with a dual approach, stated that he looks forward to reviewing the fiscal analysis, and noted that he likes the concept of a boutique hotel. Mayor Pro Tern Curry stated that he is interested in community input,•addressed the next steps in moving the project forward, and noted that he doesn't prefer one scenario over the other but is concerned whether the project is economically viable and that either project would be good for the community. Leyland D. Iverson expressed support for hotel use on the existing City Hall site George Schroeder expressed support for developing a high -end residential building for the area, believed that if a hotel is developed, there may not be enough of an income stream to support a community center in West Newport Beach. Lori Morris thanked the consultant for his work, expressed support for developing a boutique hotel in the area stating that it would revitalize West Newport, and stated that a complete proposal will need to be presented to the Coastal Commission. Gary Sherwin, President and CEO of Visit Newport Beach, commented on the impact of the project on the tourism industry and voiced support for the boutique hotel concept to enhance the City's competitiveness as a destination City. Joe Reese stated that this project provides an opportunity for a vision for Newport Beach, expressed support for the boutique hotel concept, and believed that it would be a positive impact on the community. Cindy Koller stated residents visioned this area as a landmark destination and expressed support for the hotel project. Jack Tingley expressed the importance of moving the project forward as quickly as possible. Don Roberson expressed support for the boutique hotel concept. Steve Ray commented on the various scenarios referencing the recent approval of the Banning Ranch project and related affordable housing units, suggested that staff may want to give the developers for that project an opportunity to build on the site, and indicated that the Coastal Commission has stated the need for affordable hotels in the coastal zone. In response to Council Member Selich's question, Principal Planner Campbell believed that the proposed room rates will not be considered high cost for the area and stated that the issue will need to be evaluated as the project moves forward. Volume 60 - Page 568 City of Newport Beach City Council Study Session September 11, 2012 Council Member Selich suggested reviewing some of the previous actions taken by the Coastal Commission. Community Development Director Brandt reported that staff would like to present the final documents to Council in two weeks including the fiscal analysis and background and noted that staff will continue with the two- pronged preparation of the RFQ but will not release it within the next two weeks. She added that staff is working to determine if the issue will require a green- light vote and noted that she will provide the information at the September 25, 2012, Council meeting. Council Member Selich expressed support for going forward with a two - pronged process in order to have a back -up strategy. Council Member Hill commented on the difference between an RFQ and a Request for Proposals (RFP), believed that a decision will need to be made before issuing an RFP, and encouraged staff to move along with the RFQ process. City Manager Kiff summarized Council's direction for clarity III. PUBLIC COMMENTS Jim Mosher suggested that Council consider changing the name of the street for the new Civic Center to something other than "Avocado'. City Manager Kiff asked Council for a recommendation at the Regular Meeting as to whether the issue should be placed on a future agenda. Council Member Daigle commented on the Bayside Marina item. IV. ADJOURNMENT - 4:58 p.m. The agenda for the Regular Meeting was posted on September 6, 2012, at 4:25 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. .441 ' City Clerk V 4& � -lpolfm, Recordine Secretary Volume 60 - Page 569