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Home My WebLink About19 - Funding for General Plan Amendment for the AirportHearing Date: Agenda Item No.: Staff Person: REPORT TO THE MAYOR AND CITY COUNCIL 26, 1999 19 Sharon Z. Wood (949) 644 -3222 PROJECT: Economic Development Committee Recommendation for Funding for a General Plan Amendment for the Airport Area SUGGESTED ACTION: Direct staff to include $100,000 in the 1999 -2000 Capital Budget, and plan to include $150,000 in the 2000 -2001 Capital Budget The Economic Development Committee (EDC) has recommended that the City Council allocate • funds in the 1999 -2000 and 2000 -2001 budgets to prepare a General Plan Amendment and Master EIR for the Airport Area. EDC's recommendation is discussed in the attached memorandum. It includes the concept of property owners in the area sharing the cost of this planning project equally with the City, through contributions from key property owners at the outset, and payment of fees by other property owners as they develop pursuant to the plan in the future. Both the EDC subcommittee on the Airport Area and staff have discussed this concept with some principal property owners, and they have expressed interest in participating in the project. Staff has requested $100,000 in the 1999 -2000 Capital Budget and $150,000 in the 2000 -2001 Capital Budget for this project. If the City Council approves this budget request, EDC and staff will prepare a detailed scope of work and budget, and secure firm commitments from property owners before the project begins. SHARON Z. WOOD Assistant City Manager Attachment 11 CITY OF NEWPORT BEACH 4 �Ew'�gr o m COMMUNITY AND ECONOMIC DEVELOPMENT i3300 PLANNING DEPARTMENT NEWPORT BOULEVARD NEWPORT BEACH, CA 92658 (714) 644 -3200; FAX (714) 644 -3250 Hearing Date: Agenda Item No.: Staff Person: REPORT TO THE MAYOR AND CITY COUNCIL 26, 1999 19 Sharon Z. Wood (949) 644 -3222 PROJECT: Economic Development Committee Recommendation for Funding for a General Plan Amendment for the Airport Area SUGGESTED ACTION: Direct staff to include $100,000 in the 1999 -2000 Capital Budget, and plan to include $150,000 in the 2000 -2001 Capital Budget The Economic Development Committee (EDC) has recommended that the City Council allocate • funds in the 1999 -2000 and 2000 -2001 budgets to prepare a General Plan Amendment and Master EIR for the Airport Area. EDC's recommendation is discussed in the attached memorandum. It includes the concept of property owners in the area sharing the cost of this planning project equally with the City, through contributions from key property owners at the outset, and payment of fees by other property owners as they develop pursuant to the plan in the future. Both the EDC subcommittee on the Airport Area and staff have discussed this concept with some principal property owners, and they have expressed interest in participating in the project. Staff has requested $100,000 in the 1999 -2000 Capital Budget and $150,000 in the 2000 -2001 Capital Budget for this project. If the City Council approves this budget request, EDC and staff will prepare a detailed scope of work and budget, and secure firm commitments from property owners before the project begins. SHARON Z. WOOD Assistant City Manager Attachment 11 CITY OF NEWPORT BEACH ECONOMIC DEVELOPMENT COMMITTEE . Memorandum February 24, 1999 TO: Honorable Mayor and City Council FROM: Economic Development Committee SUBJECT: Request for funding for a General Plan Amendment for the Airport Area Summary: On February 24, 1999 the Economic Development Committee voted to request the City Council allocate funds in the 1999 -2000 and 2000 -2001 budgets to prepare a General Plan Amendment and Master EIR for the Airport Area. It is estimated that it would cost $300,000 - $500,000 to complete. Knowing that the city has limited resources it is further recommended that the city do this on a matching basis with Airport Area property owners. The city would allocate 50% with the . remaining 50% coming from key property owners in the Airport Area. This would be a reimbursable program. The city and property owners would recover the money over time through development application fees in the area. Discussion: For three years the Economic Development Committee has been studying the Airport Area with emphasis on the "Campus Strip" portion. The EDC has been working with property owners there to develop a Specific Plan that would encourage area property owners to convert to higher and better uses that would maximize revenue to the city. Despite temptations to expand the study area the EDC has kept its efforts confined to this area as it is felt that it is a manageable area, has a commonality of problems and interests, and would result in a higher likelihood of success than if it were a larger area. EDC has also recommended in the original presentation of the TPO revisions that the LOS D limitations be revised in the entire Airport Area to allow the area to redevelop to higher and better uses that would maximize revenue to the city, would have no impact on residential areas and improve the quality of life of Newport Beach residents. This recommendation has been called backward planning by some but the fact is that the present TPO prevents the area from developing to its allowable entitlement level under the existing General Plan. In the last year there has been discussion by the City Council and others reviewing the proposed changes to the TPO that the entire Airport Area needs to have a revised General Plan. At the City Council's goal setting session amending the General Plan was discussed. The City Council upon its residents. It requires that leadership and vision be shown, some risk taken, money committed, and a plan developed that improves our economic base and enhances our city. . Respectfully Submitted, Edward Selich Chairman U E 3 .5 decided to not do a comprehensive revision of the General Plan but instead do a general community vision program, and amend the General Plan for the Coastal Zone, Newport Center and the Airport Area as separate amendments. The city will sponsor the community vision program; the Irvine Company, as the major landowner, will sponsor Newport Center; but there is no one to step up and sponsor the Airport Area. The ownership and interests are diverse and there is no dominant landowner to promote a General Plan Amendment. If a General Plan Amendment is to be more than a wishful thinking exercise the city needs to be the one to step up and take a leadership position and sponsor the program. It is envisioned by EDC that it include a General Plan Amendment and a Master EIR that could be used by all future projects in the Airport Area. This saves them the expense and time of individual EIR's. The "Campus Strip" Specific Plan effort could continue and be rolled into the overall General Plan and Master EIR. A rough estimate of the cost of doing this is $300,000 to $500,000. The EDC realizes that the city has many priorities and it is unrealistic to expect that this much could be allocated to this endeavor. However, this area, along with Newport Center, is the city's economic engine and has the most potential to build upon and improve the city's economic base. The city cannot afford to let it lag. The city's attitude toward the Airport Area has resulted in it not meeting its potential. Quality development that could have gone here has located in adjacent areas providing those cities with substantial economic benefits while Newport Beach gets the negative impacts, particularly • traffic. The EDC feels the city cannot ignore the Airport Area any longer. There are many properties ready to redevelop or have significant expansions planned. Our General Plan and implementing ordinances cannot accommodate them. The time for the city to act is now and plan for the future. Failure to act will most likely result in less than optimum development of the Airport Area and a resultant diminution of revenue potential to the city. Thus EDC offers the following proposal. We recommend that the city budget 50% of the cost over two year, and request thatkey property owners in the airport area contribute 50% over two years. Two years is suggested because this will be a major program and it is unlikely that it can be commenced and completed within one budget cycle. There are provisions in the state planning laws that allow this money to be recovered from application fees of projects implementing the adopted plan. The money would be recovered over a period of years and refunded to the city and contributing property owners. The advantage to this approach is that the city shows its commitment to the Airport Area by allocating funds and the property owners show their commitment by contributing the other 50 %. In the end everyone who benefits pays through the fee recovery program. Given the limited resources available this seems to be the only viable approach. There is an old adage that you have to spend money to make money. Providing the quality of life that Newport Beach residents desire costs money. This is an area that is the very foundation of the city's economic base and has the greatest revenue potential to the city with the least impact . 2 y