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HomeMy WebLinkAboutSS3 - Joint Session with the Planning Commission553 o-j City of Newport Beach General Plan Update GUIDING PRINCIPLES FOR THE GENERAL PLAN UPDATE City Council & Planning Commission Study Session June 22, 2004 CITY OF NEWPORT BEACH GENERAL PLAN UPDATE What Are "Guiding Principles ?" • Benchmarks for the Preparation of Land Use Alternatives • Equivalent to "Goals" • Elaborate Upon the "Vision Statement" I CITY OF NEWPORT BEACH GENERAL PLAN UPDATE What Topics are Addressed by the "Guiding Principles ?" 1. Economic Development 2. Community Character 3. Workforce and Special Needs Housing 4. Mobility and Alternative Transportation Modes 5. Environmental Conservation CITY OF NEWPORT BEACH GENERAL PLAN UPDATE Status — Review and Input ■ GPAC ■ GPUC ■ Changes Delineated by Prikeaut and Underline CITY OF NEWPORT Tonight's Objectives ■ Total -39 Guiding Principles ■ Focus on "Top Ten " - Confirm, Modify, or Reject *Extensive GPAC Discussion *Potentially Controversial in Community *Significant Importance in Setting GP Direction ■ Welcome Input on All Others '0'-Numberm Community Character Guiding Principle 2 Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. ✓ Do existing development standards allow erosion of unique character? ✓ Are more restrictive standards required thot ore custom - crafted to the neighborhood or district? ✓ Are design stondards required? 3 '6"Numberg) Mobility Guiding Principle 1 Establish General Plan land uses and density /intensity limits that will have less impact on peak hour traffic. ✓ Build -out of adopted GP- congestion levels exceed adopted standards. ✓ What should be considered? ✓ Reduce type or intensity of uses currently allowed by GP? ✓ Promote mixed -use development in commercial areas to reduce peak hour trips? ✓ Allow new entitlement only for uses without peak hour impacts? ✓ Are there uses of value /imporlance for which additional trips are acceptable? Number Workforce and Special Needs Housing Guiding Principle 4 {- r►eebsf�r�e Consider the rezoning of under- performing commercial areas to allow residential or mixed -use development. ✓ Strong support for the Balboa Peninsula and West Newport. ✓ Should commercial be reduced in other areas, such as Mariners Mile? 4 '6"NumberO Community Character Guiding Principle 5 Preserve the community's heritage. ✓ Not a priority now, should preservation strategies be considered? ✓ What types of resources merit preservation? ✓ If so, should we focus on "incentive- based" approaches, such as waiver of parking requirements for the adaptive re -uses of existing structures? 'O"Number0 Economic Development Guiding Principle 2 General Plan land use policies will facilitate Croke! ,mass an economically viable concentration of marine uses. ✓ Is it appropriate to restrict areas of the City for the development of marine - related uses? ✓Are their other approaches that should be considered to sustain marine uses? I Number© Mobility Guiding Principle 4 In selecting land use and circulation system alternatives greater weight will be given to traffic congestion that is ongoing 11 a - as well as to congestion that is limited to a few hours of the day or a few months of the year. ✓ Do you agree with this change? ✓ Should uses that only have temporal effects on traffic be weighed equally with those that result in ongoing problems? '6"NumberO Economic Development Guiding Principle 11 The General Plan shall support the careful expansion of visitor- serving businesses and facilities, including hotels and meeting facilities. ✓ The Visioning process supported the concentration of visitor- serving uses in the Airport Area or Newport Center. ✓ Are other locations appropriate for visitor- serving uses? ✓ Should the City consider meeting facilities? Number© Mobility GP 5 and Community Character GP 6 The community will accept additional congestion when it chooses to maintain the current urban form /community character by limiting roadway widening or other circulation system improvements (der►). Improvements to the City's circulation system should protect and take into consideration the community's character . ✓ Is it acceptable to prioritize objectives for community character & urban form when these may impact traffic congestion (e.g., Corona del Mar pedestrian vs. traffic LOS)? ✓ Under what conditions would community character objectives supersede mobility objectives or vice versa? Number© Economic Development GP 12 and Mobility GP 6 The General Plan shall offer a distinct land use concept and policy framework for the Airport Area. Consider establishing a different level of service standard for the airport area., with consideration of possible impacts on residential areas. ✓ Is it appropriate to consider potential development that differs in type, scale /density, and traffic levels from that permitted in other areas of the City to capitalize on unique economic development opportunities? 7 Number© Mobility Guiding Principle 2 Consider the potential benefits and costs (housing, social, community character, fiscal and economic) of land use and circulation system alternatives before as part of the process of adopting goals regarding acceptable levels of service for the circulation system. ✓ Are there circumstances for which other factors (per above) have greater priority in determining the appropriate land use than mobility? 8 City Council Meeting 7� TT Study Session June 22, 2004 • Agenda Item No. SS3 A S S O C I A T E S MEMORANDUM TO: Newport Beach City Council /Planning Commission FROM: Woodie Tescher, EIP Associates SUBJECT: Guiding Principles For the General Plan Update DATE: June 16, 2004 INTRODUCTION In May 2004 the General Plan Advisory Committee (GPAC) began a process to define Guiding Principles that will be used as the basis for framing and assessing the land use alternatives for the General Plan Update. Essentially, these principles will function as benchmarks for the development of land use alternatives and will constitute the rules by which the alternatives will be judged. Guiding Principles may be thought of on a level with General Plan goals, from which • more detailed policies and implementation measures will be developed. The Guiding Principles elaborate and expand upon the Vision Statement that was defined through the public process during the past year and a half. • Five sets of Guiding Principle discussion papers were developed that address Economic Development, Community Character, Workforce and Special Needs Housing, Mobility, and Environmental Conservation issues. Each discussion paper contains Guiding Principles and descriptions of their applicability and implications for land use decisions. The GPAC has reviewed and made revisions to these Guiding Principles, which are listed in their entirety at the end of this memorandum. The full discussion papers, which include background and discussion of the principles, are attached. GPAC comments have been incorporated with additions indicated by underline and deletions by steikLsut. This memorandum contains the "top ten" Guiding Principles that EIP and City staffs think deserve the most attention from the City Council and Planning Commission. These principles generated considerable discussion by GPAC, could be controversial in the community, or are especially important in setting the direction for Newport Beach in the future. We would like the City Council and Planning Commission to review these principles in particular; and confirm, modify, reject or add to them. We also would welcome input on the longer list of principles, if the Council and Commission have comments on them. En' ASSOCIATES 12701 WILSHIRE BOULEVARD SPITE 430 LOS ANGELES. CA 90025 Telephone (710)268 -8172 Facsimile (710)268 -8175 "TOP TEN" GUIIDING PRINCIPLES • # 10. Community Character Guiding Principle 2 2. Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. Discussion: The City of Newport Beach has developed as a variety of small communities, or villages. Community members recognize each of the City's distinct neighborhoods and commercial areas contribute to the character of Newport Beach. The older coastal areas are comprised of neighborhoods of one -time summer and cottage -type homes on small lots. These neighborhoods have a specific community character that is unlike the newer planned communities in the upland areas. These coastal neighborhoods in particular are subject to the effects of the real estate market's rising land values and consumer preferences for larger homes, resulting in tear down and replacement of smaller properties with larger homes. Since lots are small and structures compact, new larger structures can disrupt the rhythm and feel of the existing neighborhood altering the small town, coastal community character. Balancing the rights of property owners with the goals of maintaining and preserving community character will be a future challenge. While Newport Beach residents recognize the community as primarily residential, tourism has also influenced community character in Newport Beach. The City has a • history of tourism and benefits economically from its attractiveness to visitors. In its older commercial villages, Newport Beach exhibits a beach culture representative of Southern California but unique to Newport: Beach. Visioning participants have identified these villages as needing assistance to maintain their physical and economic vitality. Many areas exhibit the opportunity to maintain and reinforce districts, to make those that are fragmented, more cohesive, and to foster a sense of place. Programs such as the Balboa Sign Overlay and Design Guidelines, Mariner's Mile Design Framework, Balboa Public Improvements, and Corona de Mar Vision 2004 Plan, have been developed with such improvements in mind. The general plan land use plan can be utilized to identify the villages, districts and neighborhoods that should be preserved and maintained. Specific plans, design guidelines, overlay zones, and special design and performance standards may be applied to appropriate areas to ensure use compatibility and character preservation. Distinctions between different types of development densities such as rural, suburban and urban could be recognized to allow for a variety of lifestyle choices. This will allow for certain areas to maintain their existing character and have the types of uses and development that occurs there regulated. This could allocate more urban uses to the Newport Center and Airport Business area, while allowing Santa Ana Heights to maintain a more rural character and the planned development areas of Newport Coast to retain a suburban character. • Page 2 • # 9. Mobility Guidine Principle 1 1. Establish General Plan land uses and density /intensity limits that will have less impact on peak hour traffic. Discussion: The currently adopted General Plan land uses, in concert with regional traffic, result in congestion levels that exceed the currently adopted standards. Considering land uses with reduced peak hour traffic generating characteristics could improve this situation, or could allow new development that doesn't worsen the situation. # 8. Workforce and Special Needs Housine Guidine Principle 4 1. Eneeur-ageConsider the rezoning of under - performing commercial areas to allow residential or mixed -use development. Discussion: The commercial Market Analysis conducted by ADE for this general plan update found that some commercial areas are underutilized and under - performing, such as the Balboa Peninsula and West Newport. Participants in the Visioning Process strongly agreed that the City should consider rezoning these areas to allow residential and mixed - =use. Rezoning these areas, where appropriate, provides an opportunity for redevelopment that can benefit the City economically by recycling to more viable commercial land uses and provide additional housing opportunities in a market with • strong housing demand, and address the City's need for additional units to meet Housing Element goals. This principle is supported by Guiding Principle 6 in the Economic Development discussion paper that discusses designating commercial land uses in a manner that can be supported by the market. # 7. Community Character Guidine Principle 5 5. Preserve the community's heritage. Discussion: Newport Beach is renowned for its coastal lands and harbor. These resources, along with marine industry and maritime uses, have figured prominently in Newport Beach's history and physical development. Along with this acknowledgement and respect for the City's coastal and nautical history, interest has been expressed in preservation of historic buildings and locations (e.g., Balboa Pavilion and McFadden Square) that have contributed to Newport Beach's unique sense of place. Some of these resources may be eligible for recognition, but are not included on the official State or National register. They could be demolished or substantially altered, as there are no local historic preservation standards in place. There also are residential and commercial neighborhoods with a distinct historic character, such as Corona del Mar, Balboa Village and Balboa Island. This guiding principle supports the visioning participants' interest in protecting these historic • commercial and residential villages. Protection of historic or significant resources could be accomplished through .elaN-at­imodification of development requiierrrents -fer Page 3 standards that inhibit preservation of historic structures, lirnitirig- limitation of certain uses • permitted in some commercial areas, adopting adoption of design and development guidelines, adepting -and adoption of more Specific Plans to regulate development-,end € ducing he milted size of buildings in residential neighborhoods.. Another way to protect these historic resources is for the City to adopt local preservation standards for these resources. # 6. Economic Development Guidine_Principle 2 2. General Plan land use policies will facilitate a °,.T.itie:.;massan economically viable concentration of marine uses. Discussion: The fiscal analysis concludes that marine uses as a whole generate a positive cost/revenue balance for City government. In part this is due to the added property tax that boats generate, but mainly results from the fact that the marine environment in the City constitutes the major visitor attraction, and visitor spending contributes to the fiscal benefit of commercial and lodging uses. The fiscal analysis also points out, however, that there is significant economic competition in the waterfront area and that the number of marine businesses in Newport Beach has declined over at least the past ten years. Local business owners in this industry have raised the issue of whether the marine industry presence in the City may decline below sustainable levels, resulting in a general loss of the economic benefit of boating and other marine activities in the City. There is not • sufficient information currently to determine whether this is a likely threat or to define what the threshold of critical mass should be for this industry, if any. However, this could be evaluated as part of the General Plan alternatives process. This guiding principle would confirm the City's recognition that marine uses are an important part of the City's economy that should be supported in the updated General Plan. # 5. Mobility Guidine Principle 4 4. In selecting land use and circulation system alternatives, gFeater-weight will be given to traffic congestion that is ongoing than as well as to congestion that is limited to a few hours of the day or a few months of the year. Discussion: Many of Newport Beach's congested intersections are impacted only for a few hours each weekday when people are going to and leaving their jobs, and operate well above the City's standard for most of the day and during weekends. Similarly, the coastal areas suffer their worst congestion during the summer months when there is extra visitor traffic, but operate well during the rest of the year. Although traffic congestion occurs at limited times, these are the times that Newport Beach residents are the most impacted. If the City plans to accommodate these peak periods at its standard of LOS D, it may be necessary to consider circulation system improvements that are inconsistent with community character goals or constrain land use alternatives in a way that could • limit achievement of economic development goals. This principle aflowsprovides that the City toaeeeptsomewill consider traffic congestion at peak houfsall times of the day Page 4 • and all seasons—,aftd4o-plan of the year in manning for its future in a way that .. eet «, eemmunity's a ,Matte. goal most of the time as well as meeting other goal"evellment. # 4. Economic Development Guidine Principle 11 11. The General Plan shall support the careful expansion of visitor - serving businesses and facilities, including hotels and meeting facilities. Discussion: The fiscal analysis documents the benefit the City gains from visitor trade. Visitor spending on taxable goods and services, as well as transient occupancy taxes on lodging revenues, is estimated to generate $4.8 million in net revenues to the City, which help support City services above and beyond those provided to visitors themselves. As with retail commercial development, the market for tourist trade and business travel evolves and changes, reflecting not only national and international consumer trends, but also regional changes in the type and variety of visitor experiences that are offered. Therefore. it is important for the General Plan to provide opportunities for this economic sector to maintain and enhance its vitality as it keeps pace with changing market conditions. Similarly, the City must provide for accommodations and other services needed by visitors to the coast. On the other hand, the Visioning Process outlines clear limits to the growth and development of the tourist trade in Newport Beach, indicating • that the city is a residential beach community, not primarily a tourist destination. While most participants were in favor of tourism, many felt any major expansions of lodging in particular should be concentrated in the Airport Area or Newport Center. Furthermore, it may not be in the City's interest to pursue market opportunities already substantially captured by other localities in the county. For example, while a larger convention center may help attract some more business travel, this market is well saturated currently and the public financial subsidies necessary to maintain such a facility may not bear adequate returns. # 3. Mobility Guiding Principle 5 and Community Character Guiding Principle 6 5. The community will accept additional congestion when it chooses to maintain the current urban form /community character by limiting roadway widening or other circulation system improvements and urban form. Discussion: The vast majority of residents view Newport Beach as a residential beach town with broad appeal as a tourist destination and that the community's character is a significant attribute. There is a sense that large -scale circulation system improvements will have a negative affect on the community's character and lessen its charm. For example, the City may not want to widen Coast Highway in Mariners Mile because it would increase the width of pedestrian crossings, increase traffic speed and result in a • "freeway" feel; adversely impacting the "village" atmosphere and the success of existing businesses. Strong opposition to widening Jamboree Road (71 percent residents /62 percent business) and MacArthur Boulevard (68 percent residents /60 percent business) Page 5 # 2. Economic Development Guiding Principle 12 and Mobility Guiding Principle 6 12. The General Plan shall offer a distinct land use concept and policy framework for the Airport Area. Discussion: The Airport Area is distinct in many ways from the balance of the City due to its regional centrality, proximity to the airport, and primary orientation to business and commerce. This area may offer unique opportunities for a scale and type of development that would permit the realization of commercial and even residential developments not appropriate in other areas of Newport Beach. The location of this area adjacent to the regional freeways may reduce the potential for development in the area to directly impact neighborhoods and local commercial districts in the rest of the City. The area also exhibits a distinct design character that is generally more consistent with the regional business center concentrated at the freeway and is not identified with the beachfront character of much of the rest of Newport Beach. Therefore, from an economic development and land use perspective, this area may benefit from more tailored planning concepts. • Page 6 • were also expressed for the same reasons. Participants were generally opposed to overpasses anywhere in the City, although a small contingent supported an overpass at Jamboree and MacArthur. Residents and businesses preferred leaving roads as they currently ,are to widening options by a 2 to I ratio. At the same time, it should be recognized that any "downsizing" must be accomplished through a cooperative effort with the Orange County Transportation Authority and other affected agencies. Otherwise, the City will risk losing funding for (other) future roadway improvements. 6. Improvements to the City's circulation system should protect and take into consideration the community's character. Discussion: The circulation system is integral to linking and providing access to the different neighborhoods and districts that form Newport Beach. Maintaining ease of access throughout the community is critical to preserving resident's quality of life. The appearance and scale of roadways and their influence (noise, air pollution, pedestrian safety) on adjacent areas is important to maintain compatibility. Landscaping, traffic calming, limited street widening, roadway signage, and parking restrictions can be used to improve roadway conditions and reduce impacts on the community. Additionally alternative transportation modes such as transit and bicycle can enhance community character by reducing automobile congestion. Bicycle and pedestrian paths • also help to enhance the recreational opportunities and active healthy lifestyle character associated with Newport Beach's coastal community and identity. # 2. Economic Development Guiding Principle 12 and Mobility Guiding Principle 6 12. The General Plan shall offer a distinct land use concept and policy framework for the Airport Area. Discussion: The Airport Area is distinct in many ways from the balance of the City due to its regional centrality, proximity to the airport, and primary orientation to business and commerce. This area may offer unique opportunities for a scale and type of development that would permit the realization of commercial and even residential developments not appropriate in other areas of Newport Beach. The location of this area adjacent to the regional freeways may reduce the potential for development in the area to directly impact neighborhoods and local commercial districts in the rest of the City. The area also exhibits a distinct design character that is generally more consistent with the regional business center concentrated at the freeway and is not identified with the beachfront character of much of the rest of Newport Beach. Therefore, from an economic development and land use perspective, this area may benefit from more tailored planning concepts. • Page 6 • 6. Consider establishing a different level of service standard for the airport area:, with consideration of possible impacts on residential areas. Discussion: The Airport Business Area is part of sub - regional business area that includes the Irvine Business Complex and the Airport Business Park in Costa Mesa. The area includes intensively developed office areas in addition to smaller -scale industrial uses. The City of Irvine uses special relaxed LOS standards in this area when evaluating development proposals. The combination of external factors (traffic from John Wayne Airport, for instance) and economic potential that minimizes impacts to City residents combine to suggest that a relaxeddifferent level of service standard for this area may be of benefit to the City of Newport Beach, as well. This could allow consideration of intensification and /or land use changes, which could upgrade the Newport Beach portion of this area and make it more productive for property owners and the City. # 1. Mobility Guidine Principle 2 2. Consider the potential benefits and costs (housing, social, community character, fiscal and economic) of land use and circulation system alternatives before as part of the process of adopting goals regarding acceptable levels of service for the circulation system. • Discussion: During the visioning process, people said they want the City to set firm constraints on development; however, additional development may be acceptable in certain areas under certain conditions. People also expressed concern about traffic congestion, but there was not consensus on how to remedy it. The traffic model shows that congestion will worsen in the future, as a result of regional influences as well as build -out of the existing General Plan. Although may be appealing set ° goal of no • worsening iraffie eangestion, or even improving it, setting such a standard so eady in the- preeess would limit opportunities foF efeafive planning and for- achieving other- goals tha may be set, sueh as providing housing for people whe wark in NewpeI4 Beaeh a improving older ..,....., medal OYea° This guiding principle allows the City to use analytical tools such as the traffic and fiscal impact models to identify the benefits and costs of new development, and then make informed decisions regarding conflicting community goals. Page 7 LIST OF ALL GUIDING PRINCIPLES • Discussion Paper 1: Guiding Principles for Economic Development 1. General Plan policies will maintain the City's positive fiscal balance. 2. General Plan land use policies will facilitate a�atiealmass an economically viable concentration of marine uses. 3. General Plan policies will encourage the revitalization of older commercial areas. 4. The General Plan should encourage mixed -use development. 5. General Plan policies will support City efforts to minimize optimize retail sales leakage - capture &Dm in the community. 6. Land shall be designated fef eemmereial use and fegulated in a fnapffier- that ean be suppa e�a'the niaQket. The quantity of land designated for commercial use and the development standards that regulate such uses shall reflect the market support that can reasonably be anticipated during the General Plan time horizon. 7. General Plan policies will facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. 8. Additional development entitlement will py —evide needs to demonstrate significant • fiscal, economic or other community benefit. 9. General Plan policies will protect the high value of residential property. 10. General Plan policies shall prepare the City to capitalize on market and demographic changes and opportunities that emerge in key economic centers of the community. 11. The General Plan shall support the careful expansion of visitor - serving businesses and facilities, including hotels and meeting facilities. 12. The General Plan shall offer a distinct land use concept and policy framework for the Airport Area. Discussion Paper 2: Guiding Principles for Community Character 1. Respe tProtect and enhance the natural setting that h s e� �„ir dcontributes to the character and identity of Newport Beach and the sense of place it provides for its residents and visitors. 2. Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. 3. PevalepmentFuture development shall respect and ir°iniainconsider the scale, urban form. design, character and quality of the community. • Page 8 • 4. Balance developed lands with adequate open space and recreation areas and preserve opportunities for maintaining healthy lifestyles in Newport Beach. 5. Preserve the community's heritage. 6 meats to the City's lation system should preieet and iake Wo Discussion Paper 3: Guiding Principles for Workforce and Special Needs Housing 1. ProvidePromote a balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments including very low, low, moderate, and upper income households. Maintain quality residential development through the application of sound planning prineipal$ principles and policies that encourage the preservation, conservation and appropriate redevelopment renewal of the City's housing stock. 3. EneearageConsider mixed -use development as a means to create additional housing opportunities. 4. EneearageConsider the rezoning of under- performing commercial areas to allow • residential or mixed -use development. 5. General Plan policies wA44shall protect the high value of residential property. Discussion Paper 4: Guiding Principles for Mobility and Alternative Transportation Modes 1. Establish General Plan land uses and density /intensity limits that will have less impact on peak hour traffic. 2. Consider the potential benefits and costs (housing, social, community character, fiscal and economic) of land use and circulation system alternatives befere as part of the process of adopting goals regarding acceptable levels of service for the circulation system. 3. Regional traffic will be included in the analysis of land use alternatives, -but such traffic wil}should not be the sole reason for rejecting a land use alternative that would have net - benefits to Newport Beach. 4. In selecting land use and circulation system alternatives, greater - weight will be given to traffic congestion that is ongoing than -as well as to congestion that is limited to a few hours of the day or a few months of the year. 5. The community will accept additional congestion when it chooses to maintain the current urban form /community character by limiting roadway widening or other • circulation system improvements - and- wban4of n. Page 9 6. Consider establishing a different level of service standard for the airport area: with consideration of possible impacts on residential areas. 7. Improve parking - supply and use of existing resources, and reduce congestion in oldeftourist areas. 8. Consider urban scale development in areas where there is potential for development patterns that will minimize traffic. 9. Increase City strategies and programs to enhance the development and use of alternative transportation modes and transportation systems management. 10. Plan the arterial roadway system to accommodate projected traffic at a level of service acceptable to the community while - minimizing neighborhood intrusion. Discussion Paper S: Guiding Principles for Environmental Conservation 1. Protect, and rehabilitate or enhance, terrestrial and marine habitats located within the City through careful siting of future development. 2. Protect existing and improve water quality within the bay, estuaries, tidelands, and ocean. 0 3. Minimize air quality degradation through land use practices and circulation • improvements that reduce reliance on the automobile. 4. Encourage the maintenance of natural landforms. 5. Encourage the protection and creation of public viewsheds within the City. 6. Minimize the exposure of people to noise hazards. 7. Minimize intrusion from light sources. L� Page 10 0 Beach General Plan April 2 16, 2004 EIP Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. These will indicate the areas of the City in which existing uses and densities will be conserved and those areas in which change is anticipated or may be encouraged. General direction regarding these areas was received from the public during the Visioning Process. As a result, a number of specific sub -areas have been identified by the General Plan Update Committee (GPUC) as "targeted areas" for which the GPAC will • consider one or more land use alternatives. Illustrative of the areas to be considered are Banning Ranch, the John Wayne Airport business park /industrial area, Mariners Mile, West Newport Industrial area, Old Newport Boulevard, and Central Balboa. As the first step in the upcoming process, the GPAC, in its April meetings, will define the Guiding Principles that it will use as the basis for framing and assessing the land use alternatives. Essentially, these constitute the "nea negotiable" fundamental rules, or benchmarks, by which all alternatives will be judged. They will elaborate and expand upon the Vision Statement that was defined through the public process during the past year and a half. These Principles may apply to environmental values that can influence the location and density of development, such as a principle that "no development shall be permitted in riparian coastal canyons." They may apply to values regarding community character, such as a principle that "new development shall respect and maintain the scale, character, and quality of the community." Additionally, they may apply to specific economic sectors such as supporting economic activities associated with the harbor or supporting the revitalization of older commercial areas. In terms of the level of detail for the Guiding Principles, they may be thought of on a level with General Plan goals, from which more detailed policies and implementation measures will be developed. Many, if not all, of the Guiding Principles will be expressed in some form asgoals in the draft General Plan, but for now the focus is on their function as benchmarks for • developing and evaluating the land use alternatives. Guiding Principles for Economic Development Once the Guiding Principles have been defined, the GPAC will identify one or more land use • alternatives for the twelve "targeted" sub -areas of the City in its May through July meetings. For each sub -area, Diseussion Papers will be distributed that summarize its existing conditions, key planning constraints and opportunities, and possible land use strategies. Following their identification, the alternatives will be evaluated for their comparative impacts on traffic, fiscal costs and revenue, and environmental resources. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Prefemd Land Use Plan will be selected during October. The following section summarizes the economic issues raised in the Visioning Process, as described in the document, "Community Directions for the Future." The subsequent section summarizes the consultant's earlier retail commercial market analysis and the fiscal impact analysis. Based on these summaries, the paper provides a set of suggested Guiding Principles for economic development, for consideration by the Economic Development Committee and by GPAC. The EDC is integral in these steps; the committee's discussion and recommendations are timed specifically to refine those principles, producing value -added effort that can be used by the GPAC in their task of balancing the production of positive economic benefit while preserving and protecting the quality of life of the City and its residents. • Summary of Economic and Fiscal Issues The Wsiozdag Process The City initiated a Visioning Process in January of 2002 that culminated in publication of the Community Directions for the Future report in January 2003. The Visioning Process included a series of events, meetings and public information gathering programs and resulted in a vision statement for Newport Beach and substantial public input on a wide range of issues for consideration in the General Plan Update. The summary information presented here is limited to statements and issues related to economic development or the fiscal health of the City. The vision for the future of Newport Beach describes the City's desired end state and what the community hopes to have achieved by 2025. Under the heading, "Growth Strategy, Land Use and Development," the vision states in part, " We have a conservative growth strategy that emphasizes residents' quality of life — a strategy that balances the needs of the various constituencies and that cherishes and nurtures our estuaries, harbor, beaches, open spaces and natural resources. Development and revitalization decisions are well conceived and beneficial to both the economy and our character...." • Guiding Principles for Economic Development • The Visioning Process also gained public input on a range of more specific issues. There was broad community consensus on some economic issues, and more diverse opinion on others. The issues with consensus include the following: ■ The vast majority of residents view Newport Beach as primarily a residential beach town. While most recognize the City's attractiveness to tourists, they were less interested in defining the City's identity as a tourist destination. ■ In a survey of business owners, the City's location within the County, its physical beauty, and the purchasing power of the community are listed as exceptionally attractive attributes. ■ General consensus exists that the City's harbors and beaches must be protected and enhanced as the most cherished resources. GPAC members posited that as harbors and beaches are improved as recreational areas, visual and economic benefits would follow. • People are in general agreement that certain areas of the City need revitalization, including Balboa Village, Mariner's Mile, Old Newport Blvd., Cannery Village, Central Balboa Peninsula, McFadden Square, West Newport, and the mixed residential /industrial area above Hoag Hospital. GPAC members agree that the City should be proactive in creating a revitalization vision to help guide future private • development. • A couple of the visioning events raised the issue of mixed use, integrating housing and commercial or office space. Areas deemed appropriate for mixed use include Balboa Village, Mariner's Mile, Cannery Village, Lido Marina Village, McFadden Square, and the Airport Business Area and Newport Center. ■ GPAG and Visioning process participants agreed that the City should consider re- zoning excess and underutilized commercial lands f;qt tesidential at mixed use developfilenc A divergence of opinion exists on the following economic development issues. ■ People expressed mixed opinions about the potential impact of economic development on the City; with business owners being slightly more in favor of economic development than residents. The concern here is whether economic development will detract from residents' quality of life. However, when asked if the City should encourage growth in the local economy to help pay for municipal services, 67 percent (224) of those who responded to the newsletter questionnaire said yes, although there was disagreement about how that should be done. ■ Participants were divided on whether the City should continue to accommodate job growth. Many felt it is a question of the type of jobs and associated impacts. Those who • did express support for growth state that the City should "accommodate" but not • "promote" additional employment opportunities. ■ Participants in the visioning program events were overall in favor of tourism, but divided on providing more tourist accommodations, including lodging. However, if new hotels are to be bailt, most respondents agree they should be concentrated in the Airport Business Area and Newport Center. ■ While people want the City to set firm constraints on development, including expansion of employment centers and hotels, additional development may be acceptable in certain areas under certain conditions. Fashion Is /and.• A majority of residents and businesses support keeping retail space at current levels, but many are still willing to back expansion of existing stores and moderate increases for new businesses. Newport Center. A majority of residents and businesses support little or no change to Newport Center. But some are willing to allow growth for existing companies. AitportBusiness Center. Participants are split on support for development, but some agreement exists over the appropriate types of development. People are comfortable with low -rise office buildings, but would not like to see high rise offices or more industrial development. The groups were split about adding more retail • space, including big boxes, in this area. Economic Studies byApp/ied Deve%pmentEconomics, Inc. (ADE) ADE has prepared a commercial market study, published in December 2002, and a fiscal impact analysis., published in revised form in January 2004. In this process, ADE has also interviewed a number of business people in the community. The following is a synopsis of issues and information gained from this work. Retail Commercial ■ As an overall conclusion, it can be fairly stated that the City does very well in serving the retad shopping needs of both residents and visitors. Although the balance between demand and sales is very close, the city actually captures large amounts of spending in some categories from the surrounding region, while losing local spending in other categories. ■ The City's retail base is particularly strong in boats, autos, restaurants, furniture, apparel and specialty retail stores. ■ Conversely, relatively large sales leakages occur in other general merchandise, family clothing, discount department stores and home improvement store categories. Most 4 Guiding Principles for Economic Development • of these spending categories represent "big box" retail store categories that require large tracts of land and seek more central locations than tourist oriented coastal areas. Such uses could possibly be located in the Airport area and in the other areas near the Highway 73 corridor, along with additional service commercial /flex space and car dealerships. ■ The commercial centers in the coastal area largely serve the visitor market and do not capture a large proportion of residents' spending, with the exception of Corona del Mar, which has the broadest base of local - serving retailers. ■ Except for the Balboa Village area, most of the coastal commercial centers perform adequately in terms of sales per square foot among existing businesses. In Balboa Village, the average is relatively low in a number of the visitor- serving store type categories, reflecting the less accessible location and attractiveness of this older commercial area. Questions have been raised about possibly reducing the amount of commercial zoning in this area. ■ In terms of opportunities for new retail establishments in the coastal subareas, the focus should be on retail categories that have sales leakage throughout all of Newport Beach and would also be at the appropriate scale of commercial development. Certain specialty retail categories such as music and bookstores would • 5t these criteria. ■ In Mariners Mile, there may be some pressure to transition sites devoted to boat sales to more intensive uses. ■ Lido Marina Village may see pressure for redevelopment as retail uses underperform. Hotels /Motels ■ While Newport Beach has a variety of meeting facilities, major convention centers are mainly concentrated in Anaheim. More recently, Huntington Beach's new waterfront development poses competition for Newport at the small to mid -size business meeting scale. The lack of larger facilities in Newport limits the City's business trade potential. Marine Industry Economic pressure continues to replace shipyards and non -water dependent manufacturing /repair services with residential uses. ■ Marine proponents would like to see greater use of limited public shore access sites to increase visitorship L J Guiding Principles for Economic Development ■ The Harbor Commission proposes a proactive - sustainable growth option for marine • uses that projects a diversification, consolidation and more efficient grouping of marine uses and water - dependent activities (see attached letter from the Harbor Commission). Office /Indu sttial Uses ■ Potential exists for transition of older properties in the Airport Area to more intensive use, as well as the addition of major retail uses in the Airport Area on sites currently occupied by industrial or office uses. ■ Economic pressure threatens the viability of light industrial uses in the West Newport area ■ There may be the possibility for expansion of medical uses in the hospital area, particularly medical R &D. ■ The City would benefit from an economic transition in existing office and industrial spaces toward businesses that generate greater sales tax through off -site product sales. The sales tax is such an important component of the City's fiscal picture, it would be important to consider ways to encourage firms that generate taxable non - retail sales and taxable business -to- business transactions. Fiscal Analysis ■ The fiscal analysis estimates the current cost /revenue balance generated by existing broad land use categories. In general, existing residential, office and public land uses represent net cost centers for City government, while retail, lodging and marine industry land uses generate excess public revenues and help the City maintain an overall fiscal balance. It should be noted that much of the adverse fiscal impact of existing residential units stems from the fact that their assessed values are depressed well below market value due to limits imposed by Proposition 13. New residential units, or even most existing units that are resold in the current market, do pay sufficient property taxes to cover City service costs. This was demonstrated in a focused analysis of Newport Coast mentioned below. The report also points out that the residential population supplies much of the purchasing power that generates sales tax from retail businesses, and the office -based businesses and industrial uses create much of the household income that also feeds this economic activity. Therefore, the bottom line fiscal cost /revenue balance should not be viewed as the only economic dimension for evaluating the City land use mix. • ■ The analysis of the Newport Coast development illustrates the fact that many residential neighborhoods can be a positive fiscal contributor to the City with sufficiently high property values. Although only Newport Coast received a special • 0 Guiding Principles for Economic Development • area analysis, similar results could be expected in other neighborhoods with high property values. ■ Visitor - serving land uses overall generate a positive fiscal benefit for the City, primarily due to increased sales tax and TOT revenues from visitors. This analysis factors in the added cost to the City of maintaining services to the beach areas, as well as demand for other services generated by tourists. ■ The projection of fiscal impacts for buildout of the existing City General Plan indicates that the potential exists for substantial increases in commercial uses, generating a more favorable fiscal balance than exists currently. Suggested Economic and Fiscal Guiding Principles 1. General Plan policies will maintain the City's positive fiscal balance. Discussion.-The fiscal analysis describes the fiscal relationships among the various land uses in the City. It underscores the need for a strong commercial sector to balance the service demands exerted by residential neighborhoods and businesses in office and industrial spaces that provide quality jobs and high incomes but not high tax revenue. In the current fiscal environment, the property tax has 9rtb9ided • diminished as a pAmarrrevenue source for local government in favor of sales taxes, transient occupancy taxes and various direct user charges and fees that have better capacity to grow with the inflation in City service costs. This guiding principle, therefore, mainly speaks to the need for a balanced land use plan that provides sufficient opportunities for fiscally positive land uses (retail, lodging, marine industry) to generate revenues for services to other land uses included in the plan. The principal may also be applied to major development projects or broader revitalization efforts to ensure that new development is designed and implemented in the most cost - efficient manner possible. 2. General Plan land use policies will facilitate a efitien' ness an economically viable concentration of marine uses. Discussion: The fiscal analysis concludes that marine uses as a whole generate a positive cost /revenue balance for City government. In part this is due to the added property tax that boats generate, but mainly results from the fact that the marine environment in the City constitutes the major visitor attraction, and visitor spending contributes to the fiscal benefit of commercial and lodging uses. The fiscal analysis also points out, however, that there is significant economic competition in the waterfront area and that the number of marine businesses in Newport Beach has declined over at least the past ten years. Local business owners in this industry have raised the issue of whether the marine industry presence in the City may decline • 7 Guiding Principles for Economic Development below sustainable levels, resulting in a general loss of the economic benefit of • boating and other marine activities in the City. There is not sufficient information currently to determine whether this is a likely threat or to define what the threshold of critical mass should be for this industry, if any. However, this could be evaluated as part of the General Plan alternatives process. This guiding principle would confirm the City's recognition that marine uses are an important part of the City's economy that should be supported in the updated General Plan. 3. General Plan policies will encourage the revitalization of older commercial areas. Discussion: Both the Visioning Process and the Commercial Market Analysis have identified areas of the City that are approaching economic obsolescence or which are underutilized. The GPAC has suggested that the City should proactively establish guidelines for the private sector to transform older properties into viable business or residential uses that provide a fresh vitality to these areas while maintaining their essential character. The GPAC suggested some parameters for revitalization in Newport Beach, such as making commercial areas sheet more attractive without making them bigger, respecting historic places and ambiance, and creating pedestrian -dense areas with high quality restaurants. Many of the areas identified for revitalization are also appropriate for mixed -use development. This is consistent with the suggestion in the Visioning Process that underutilized commercial land may be • rezoned . However, it is important to recognize anv Coastal Act limitations on land use that may anuly to some of these areas. 4. The General Plan should encourage mixed -use development. Discussion: Participants in the Visioning Process as well as the City's Economic Development Committee (EDC) have indicated support for increasing opportunities for mixed -use development in Newport Beach. Muted -Use development can take the form of multiple uses, in which residential, retail or office uses may be sited adjacent to each other, or be in the form of single development projects that combine mixed uses into multiple stories of development, such as retail commercial on the ground floor with residential or office space above. It is important to encourage land use combinations that are mutually supportive. Residential development creates local spending power to support retail development. Office uses also create daytime spending power as well as creating jobs for residents who may occupy the same building or adjacent units. Light manufacturing or marine uses may also be combined with commercial or residential uses in the proper setting, provided such uses are free of impacts from noise, odeors, etc. For Newport Beach, it is also critical to maintain the proper scale for mixed -use development. There are many good mixed -use urban design projects in smaller city downtowns, which are appropriately scaled to the • Guiding Principles for Economic Development • residential community environment desired by Newport Beach residents. Examples in Santa Barbara, Los Gatos and Brea have proven that it is critical that these developments maintain very high quality standards to avoid overcrowding or other negative aspects of higher development intensities that have occurred in older forms of mixed use development, particularly in some ero`- the e- -`a-e older cities. Coastal Act land use limitations must also be considered. 5. General Plan policies will support City efforts to mirtimize optimize retail sales leakage ca to a from in the community. Discussion: The Commercial Market Analysis demonstrates that Newport Beach not only serves City residents relatively well but also draws substantial retail sales from non - resident shoppers and visitors to the City. However, certain sales leakage categories were identified that signal additional retail development opportunities, particularly in older commercial areas that no longer serve local needs as well as they once did. The EDC has also suggested that the City's economic development strategy should focus on the City's regional market share and the additional opportunities that may exist to provide a wider range of commercial establishments; particularly those which capitalize on new markets being created both regionally and in adjacent cities. Moreover, the retail market is dynamic and it is important to • provide sufficient land use flexibility for businesses to upgrade and change their storefronts, building sues and product offerings to stay abreast of consumer tastes and market trends. Along these lines, participants in the Visioning Process supported the notion of allowing for expansion of existing businesses, while limiting the magnitude of new commercial development. Yet many respondents also recognized the opportunity for larger retail uses in the Airport Area that would capture some of the sales currently lost to surrounding communities. In addition,'_ _ =: r . -- — = Geft _-`__ aad Fashion Island will continue to serve as major retail center for the City and will likely need some flexibility to evolve over time to better meet consumer needs. Finally, the fiscal analysis points out that sales tax is the second largest single revenue source for the City, and is a prime contributor of funds needed to provide services to the residents of the City. 6. ° 1 by the ---°-1-°• The quantity of land designated for commercial use and the development standards that regulate such uses shall reflect the market support that can reasonably be anticipated during the General Plan time horizon Discussion: The Commercial Market Analysis found that some commercial areas are underutilized and underperforming, such as the Balboa Peninsula and West Newport. Participants in the Visioning Process strongly agreed that the City should • Guiding Principles for Economic Development consider re- zoning these areas for residential or mixed use. It does not serve the City • or the business community to retain commercial zoning when the market will not support commercial use of that land. The EDC has also pointed out examples where older office buildings and even some lodging facilities no longer adequately serve market demand due to their location or functional obsolescence. Other areas of the City are better positioned to support newer buildings that do respond to current and future market requirements. As this occurs, existing, older buildings should be permitted to redevelop into uses more compatible with their surroundings, which in many cases may be residential or mixed -use development, subject to any Coastal Act land use limitations. This principle can also apply to some City land use regulations, especiaaly in Mariner's Mile. Specific marine- oriented uses are required in a certain percent of the floor area. When the market does not adequately support these uses, commercial space remains vacant and unproductive. 7. General Plan policies will facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. Discussion. The fiscal analysis discusses the fact that the various components of the local economy are interrelated, and while not all land uses generate high tax revenues by themselves, they often do provide part of the economic foundation to support the City's high revenue producers. This occurs on a couple levels. For example, business • and professional services firms often do not generate much sales tax directly, but they typically offer higher wage incomes that support housing prices in the City and generate retail spending that does result directly in sales tax revenues for the City. On another level, local firms need access to quality business and professional services in order to compete effectively in the marketplace. The ability of Newport Beach to support a variety of both business and personal services makes it a superior business location and increases its attractiveness to high revenue producing businesses. Another example of this phenomenon would be Hoag Hospital and related medical offices and facilities in the City. The jobs provided in these facilities are generally very well paid and in addition, medical supply firms can be significant sales tax generators. Further concentration of medical facilities could help to attract new research facilities with the potential for substantial economic benefit. Generally, it would be important for Newport Beach to support unique economic uses for which the city is the best location such as many of the marine- related activities. 8. Additional development entitlement will provide needs to demonstrate significant fiscal, economic or other community benefit. Discussion. While Newport Beach is currently a substantial job center, the Visioning Process enunciated the position that job growth is not an important goal by itself. Economic development must support the community's broader goals and • 10 • provide net benefits that outweigh the potential impacts of growth and development. This principle establishes the City's position that the benefit of new development is not assumed as a matter of right, but must be demonstrated explicitly. This principle also recognizes the fact that significant opportunity exists to upgrade, revitalize, and enhance the City business base within its existing built environment. For example, fiscal goals can be met by recruiting "point of sale" firms (e.g. "e- commerce" firms) to existing office space, increasing the non - retail sales tax base in the City without necessarily increasing the impacts associated with new office development. As the GPAC suggested, commercial revitalization can mean making places better without making them bigger. The key is the quality and character of the development. 9. General Plan policies will protect the high value of residential property. Discussion: This principle confirms the idea that Newport Beach is primarily a residential community, and that economic development should preserve and protect that quality, not diminish it through inappropriate or excessive development. It also relates to the need to ensure that commercial and business development is in appropriate scale to nearby residential neighborhoods. This principle further reinforces the conclusion of the fiscal analysis that higher value residential units do pay for themselves in terms of generating sufficient tax revenues to pay for neighborhood services. The EDC has recommended that the General Plan process • also explore opportunities for higher density residential development as a means of providing high value development with positive fiscal benefits. Such developments may be appropriate in the Airport Area or ether at Newport Center. 10. General Plan policies shall prepare the City to capitalize on market and demographic changes and opportunities that emerge in key economic centers of the community. Discussion: The market analyses and the Visioning Process have identified areas of the City where change is likely due to economic pressure from growing business sectors or the presence of key market opportunities. For example, the Airport Area could support new retail developments that require a larger scale than would be suitable in many other areas of the City. At the same time, the Visioning Process participants were concerned that the intensity of development in this area not exceed the carrying capacity of the road systems and other services. Similarly, the West Newport Industrial Area is adjacent to the Hoag Hospital area, which may experience pressure to expand medical services, supply outlets and research facilities. Some of the marine - related industries that occupy this area formerly were located nearer the waterfront and have experienced the need to move due to real estate price escalations in the past. There is a need to plan for change in a number of areas of the • City, so that important new economic opportunities can find locations in the • Newport Beach while viable existing businesses continue to thrive in the community. 11. The General Plan shall support the careful expansion of visitor-serving businesses and facilities, including hotels and meeting facilities. Discussion. The fiscal analysis documents the benefit the City gains from visitor trade. Visitor spending on taxable goods and services, as well as transient occupancy taxes on lodging revenues, is estimated to generate $4.8 million in net revenues to the City, which help support City services above and beyond those provided to visitors themselves. As with retail commercial development, the market for tourist trade and business travel evolves and changes, reflecting not only national and international consumer trends, but also regional changes in the type and variety of visitor experiences that are offered. Therefore, it is important for the General Plan to provide opportunities for this economic sector to maintain and enhance its vitality as it keeps pace with changing market conditions. Similarly, the City must provide for accommodations and other services needed by visitors to the coast. On the other band, the Visioning Process outlines clear limits to the growth and development of the tourist trade in Newport Beach, indicating that the city is a residential beach community, not primarily a tourist destination. While most participants were in favor of tourism, many felt any major expansions of lodging in particular should be • concentrated in the Airport Area or Newport Center. Furthermore, it may not be in the City's interest to pursue market opportunities already substantially captured by other localities in the county. For example, while a larger convention center may help attract some more business travel, this market is well saturated currently and the public financial subsidies necessary to maintain such a facility may not bear adequate returns. 12. The General Plan shall offer a distinct land use concept and policy framework for the Airport Area. Discussion The Airport Area is distinct in many ways from the balance of the City due to its regional centrality, proximity to the airport, and primary orientation to business and commerce. This area may offer unique opportunities for a scale and type of development that would permit the realization of commercial and even residential developments not appropriate in other areas of Newport Beach. The location of this area adjacent to the regional freeways may reduce the potential for development in the area to directly impact neighborhoods and local commercial districts in the rest of the City. The area also exhibits a distinct design character that is generally more consistent with the regional business center concentrated at the freeway and is not identified with the beachfront character of much of the rest of • 12 Guiding Principles for Economic Development • Newport Beach. Therefore, from an economic development and land use perspective, this area may benefit from more tailored planning concepts. • 13 City of Newport Beach General Plan Update GUIDING PRINCIPLES FOR POLICY FORMULATION May,, 2004 EIP Associates Urban Crossroads Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. These will indicate the areas of the City in which existing uses and densities will be conserved and those areas in which change is anticipated or may be encouraged. General direction regarding these areas was received from the public during the Visioning Process. As a result, a number of specific sub -areas have been identified by the General Plan Update Committee (GPUC) as "targeted areas" for which the GPAC will consider one or more land use alternatives. Illustrative of the areas to be considered are Banning Ranch, the John Wayne Airport business Pak /industrial area, Mariners Mile, West Newport Industrial area, Old Newport Boulevard, and Central Balboa. As the fast step in the upcoming process, the GPAC will define the Gm&ng Prinezpks that it will use as the basis for framing and assessing the land use alternatives. Essentially, these constitute the "non- negotiable" rules, or benchmarks, by which all alternatives will be judged. They will elaborate and expand upon the Vision Statement that was defined through the public process during the past year and a half. These Primiphs may apply to environmental values that can influence the location and density of development, such as a principle that "no development shall be permitted in riparian coastal canyons." They may apply to values regarding community character, such as a principle that "new development shall respect and maintain the scale, character, and quality of the community." Additionally, they may apply to specific economic sectors such as supporting economic activities associated with the harbor or supporting the revitalization of older commercial areas. In terms of the level of detail for the Guiding Principles, they may be thought of on a level with General Plan goals, from which more detailed policies and implementation measures will be developed. Many, if not all, of the Gui &ng Prinaphs will be expressed in some form as goals in the draft General Plan, but for now the focus is on their function as benchmarks for developing and evaluating the land use alternatives. Once the Gui &'ng Prinap/u have been defined, the GPAC will identify one or more land use alternatives for the twelve "targeted" sub -areas of the City in its May through July meetings. For each sub -area, Discussion F4rrs will be distributed that summarize its existing conditions, key planning constraints and opportunities, and possible land use strategies. Following their identification, the altemanves will be evaluated for their comparative impacts on traffic, fiscal costs and revenue, and environmental resources. The impact analyses will be presented to and reviewed Deleted:4 • E • • with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Pmfm dLand Use Plan will be selected during October. The following section summarizes community character issues raised in the Visioning Process, as described in the document, "Community Directions for the Future." The subsequent section summarizes the consultant's technical analysis of the existing city setting. Based on these summaries, the paper provides a set of suggested Gui &ng PrinciPlu for community character, for consideration by the GPAC. It is useful to define "community character" to understand what influences and impacts the way a community identifies itself Community character relates to a place's identity- how a place or collection of places is perceived by its residents, property and business owners, and by visitors. It encompasses physical, social, economic, and environmental aspects of a community. Depending on the geographic boundaries, the term "community" may refer to an entire city or several areas that together make up one distinct area. For this discussion, we use community character to refer to the identity of residential neighborhoods and combination residential and commercial areas, or "villages ", as they are often described, in addition to the city of Newport Beach as a whole. Community character can be described by a place's primary function - residential neighborhood, commercial district, or industrial district, or combination of those. The natural setting, such as coastal and upland environment, also provides a distinctive quality. Another way character can be identified is by its built environment, the urban form and design of structures, roadways, landscape, etc. A place's history also shapes its character, as does the cultural and recreational opportunities it currently offers. Lastly, the pace of fife, whether suburban or urban, can influence community character. All of these aspects together combine to offer a unique sense of place to community members. Summary of Community Character Issues • THE WsioAvNG PROCESS The City initiated a Visioning Process in January of 2002 that culminated in publication of the Community Directions for the Future report in January 2003. The Visioning Process included a series of events, meetings and public information gathering programs and resulted in a vision statement for Newport Beach and substantial public input on a wide range of issues for consideration in the General Plan Update. The summary information presented here is limited to statements and issues related to economic development or the fiscal health of the City. The vision for the future of Newport Beach describes the City's desired end state and what the community hopes to have achieved by 2025. Under the heading, "Community Character," the vision states: We have preserved and enhanced our character as a beautiful, unique residential community with diverse coastal and upland neighborhoods. We value our colorful past, the high quality of life, and our community bonds. The successful balancing of 40 the needs of residents, businesses and visitors has been accomplished with the recognition that N ewport Beach is primarily a residential comet tnity. • The Visioning Process also gained public input on a range of more specific issues. There was broad community consensus on some issues that influence community character, and more diverse opinion on others. The issues with consensus include the following. ■ The vast majority of residents view Newport Beach as primarily a residential beach town. While most recognize the City's attractiveness to tourists, they were less interested in defining the City's identity as a tourist destination. ■ In a survey of business owners, the City's location within the County, its physical beauty, and the purchasing power of the community are listed as exceptionally attractive attributes. ■ General consensus exists that the City's harbors and beaches must be protected and enhanced as the most cherished resources. ■ Specific areas of the City exhibit physical deterioration, economic obsolescence, or a lack of cohesivene<s affecting the quality of the areas' image and character. People are in general agreement that certain areas of the City need revitalization, including Balboa Village, Mariner's Mile, Old Newport Blvd., Cannery Village,McFadden Square, West - Deleted: Balboa v,W, Newport, and the mined residential /industrial area above Hoag Hospital. ■ A couple of the visioning events raised the issue of mixed -use, integrating housing and commercial or office space. Areas deemed appropriate for mixed -use include Balboa Village, Mariner's Mile, Cannery Village, Lido Marina Village, McFadden Square, the Airport Business Area and Newport Center. Mixed -use development has been used by other communities as a method to enhance community character by integrating housing • and commercial uses in proximity to one another, and to unify fragmented areas. ■ Protection of public view corridors has been stated as a priority by Visioning participants. A divergence of opinion exists on the following issues that contribute to community character. ■ Participants in the visioning program events were overall in favor of tourism, but divided on providing more tourist accommodations, including lodging. However, if new hotels are to be built, most respondents agree they should be concentrated in the Airport Business Area and Newport Center. ■ While people want the City to set firm constraints on development, including expansion of employment centers and hotels, additional development may be acceptable in certain areas under certain conditions. • • ■ A majority of participants are concerned with traffic congestion, but views differ over how to mitigate the problem Additionally, no clear consensus exists regarding the method(s) to remedy traffic impacts on neighborhoods. ■ Visioning participants have expressed a desire for the City to preserve tidelands and public open space, both of which have the potential to contribute to visual quality, while some participants have indicated the importance of developing some tidelands for recreational uses and economic gain. ■ While larger homes and their effects is a trend of concern to many in Newport Beach, residents have mixed opinions on whether existing regulations are sufficient for now. The appropriate scale varies by neighborhood and geographic area. ■ Larger homes may also affect views of bluffs from lower lying areas. According to Visioning participants, development on or near coastal bluffs needs to balance land use controls with the rights of property owners. TECHmcm BACKGROUND REPORTBYEIPA acmTES(EIP) EIP has prepared a technical study, published in March 2004. The following is a synopsis of issues and information gained from this work. Natural Settine ■ The City of Newport Beach is sited on a coastal plain and is bounded on two sides by developed urban lands of Costa Mesa. Huntington Beach and Irvine. Development in Newport Beach has been designed to capture views of the ocean, capitalizing on the ridgelines and hillsides as vantage points. The Upper and Lower Newport Bay, draining • an area of 118 square miles via the San Diego Creek, bisects the City, creating a dominant physical land feature that includes estuaries, beaches, coastal bluffs, and meandering waterways unique to Newport Beach. From the higher elevations in the City, views to the north include the rolling slopes of the San Joaquin Hills, and in the distance the Santa Ana Mountains. This combination of hills, canyons, bluffs, and water features create a visually dynamic landscape. ■ Open space areas provide visual relief from urbanized areas and scenic view opportunities for motorists, pedestrians, and residents. Open space is distributed throughout Newport Beach including the beach, bay, and parks. Undeveloped areas such as Banning Ranch, and canyons, hillsides and bluffs of Newport Ridge /Coast contribute to these visual resources, although some development may occur there in the future. ■ The Pacific Ocean provides the predominant visual setting for the majority of Newport's scenic attributes. The ocean can be seen from residences atop coastal bluffs and hilltop • ridges, from the offices of high -rise development, and can be enjoyed by visitors of the • beaches, shopping areas and from many of the major north /south corridors. Associated with the ocean, the bay and harbor areas also provide picturesque nautical views. ■ While the City has Shoreline Height Limitation regulations, the construction of larger homes upland from the coast may affect the community character of certain neighborhoods and have secondary visual impacts. In addition, the City has no regulations that determine the placement of development on bluffs in existing subdivisions. ■ There is an opportunity to provide viewing areas and interpretative signs to add to the quality of life for residents and visitors. Future Development ■ As the City's available vacant properties planned for development are built out, any additional development will occur as infra or re -use of existing properties, possibly including structures that integrate housing with commercial uses (mixed -use), and providing an opportunity to influence or enhance existing community character in established `villages" or districts. a Mixed -use represents an opportunity to enhance community character in areas such as Balboa Village, McFadden Square, Cannery Village, Airport Business Area, Lido Village, Newport Center, and Mariner's Mile. Ensuring the compatibility of types of commercial uses with residential uses, along with building design, to maintain the existing community character will be a challenge of new mixed -use development. ■ Some older residential areas (e.g., Corona del Mar and Lido Isle) have been developed with two housing units built on three legal lots. Legally, these homes could be • demolished and replaced with housing built on each legal lot of record, increasing overall development densities and changing existing community character. CQ crsiaUreas Several areas of the city have been identified as lending unique identity and function to Newport Beach, and as such merit efforts to preserve or enhance existing community character. Six areas have been identified as Specific Plan areas in the existing land use element: Mariner's Mile, Cannery Village/ McFadden Square, Newport Shores, Santa Ana Heights, Central Balboa, and Old Newport Blvd. In addition, the General Plan designates Corona del Mar as a Specific Plan area. ■ Programs intended to improve community character have been developed for several community areas, including the Balboa Sign Overlay and Design Guidelines, Mariner's Mile Design Framework, Central Balboa Public Improvements and Design Guidelines, and Corona del Mar Vision Plan. • • ■ Commercial areas such as Mariner' Mile, Lido Village, Old Newport Blvd /West Newport Industrial are characterized by a wide diversity and a fragmented pattern of uses: marine, highway oriented, local- serving retail, etc. and require consideration of what are the appropriate type, mix, and scale of uses and future development, including the appropriateness of marine and visitor- serving uses for the areas. Vacancies or underdeveloped parcels provide opportunities for new development in such areas, presenting an opportunity to influence the character of these areas by establishing guidelines and a vision for private development of these areas. The Airport Business Area is also subject to this condition. ■ Multiple property ownerships may complicate coordination of a cohesive pattern of development in the older commercial districts in the City. Residential /Commercial Interface ■ Rezoning of underutilized commercial lands for residential or mixed -use development has been suggested, particularly in Balboa Village. Vieth the exception of the Airport Business 4 rea and Newport Center, most commercial , _ - Deleted: areas are in close proximity to residential neighborhoods, which can create conflicts due to traffic, puking, Lhehtine. and noise. Maintaining the compatibility between adjoining commercial and residential neighborhoods is a challenge as puking, noise and litter from commercial customers can affect the charm and tranquility of residential neighborhoods. This is of particular concern on Balboa Peninsula, Balboa Island, Corona del Mar, and to a lesser extent in Mariner's Mile. ■ Similarly, the impact of traffic on residential neighborhoods throughout the City is an ongoing concern. • Special Issue Areas • Santa Ana Heights appears to lack most neighborhood serving commercial uses, such as grocery stores, banks, gyms, and restaurants. As a recent annexation, much of the existing development does not comply with Newport Beach's standards and municipal code violations are frequent. • There is question whether City Hall is still located centrally for its residents. City Hall is considered to be too small to function as the administrative center of the City. • Requests for large- scale, multi-lot developments in Cannery Village could impact the area's character with increased traffic and puking demand, and a reduction in the variety of architectural styles. • Traffic congestion on Pacific Coast Highway may conflict with the intended pedestrian nature of the Corona del Mar area. In addition, parking deficiencies present conflicts • Guiding Principles for Community Character with adjacent residential neighborhoods as customers encroach upon residential street Pazking • Matins_ Industry ■ The marine industry and maritime uses have figured prominently in Newport Beach's history and physical development, but have decreased recently as land costs have increased. Suggested Community Character Guiding Principles 1. mtect and enhance the natural setting that Fontibutes to the character and _ Deleted: ecspca dK identity of Newport Beach and the sense of place it provides for its residents and Deleted: hu cum tb d visitors. Discussion: Community members have noted the City's location and physical beauty are exceptional attributes along with its harbors and beaches. Harbor, bay and coastal features have greatly influenced urban form in Newport Beach and differentiate the city from other coastal communities. Much of development in Newport Beach has been designed to capitalize upon its natural setting— beaches, bluffs, canyons, harbor, bay, and ocean — creating the urban form and character that is visible today., ( en space as been preserved to be enjoyed as amenities or to provide habitat. As much of Newport Beach's character and sense of place derives from its natural setting, it is important to protect and encourage development that enhances the natural setting. This will protect the community's character and its high property values. Alteration of the natural setting of Newport Beach may result in change to the overall community character if it is not managed and directed in a manner consistent with this guiding principle. Yet protecting Newport Beach's natural resources while allowing for their use and enjoyment is a challenge. For instance, owners of commercial waterfront property and older homes on coastal bluffs desire to upgrade and redevelop their properties with larger buildings, which may change public views of the water or require more alteration of the bluff face. Private development rights will need to be balanced with the protection of natural resources. 2. Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. Discussion: The City of Newport Beach has developed as a variety of small communities, or villages. Community members recognize each of the City's distinct neighborhoods and commercial areas contribute to the character of Newport Beach. The older coastal areas are comprised of neighborhoods of one -time summer and cottage -type homes on small lots. These neighborhoods have a specific community character that is unlike the newer planned communities in the upland areas. These coastal neighborhoods in particular are subject to the effects of the real estate market's rising land values and consumer preferences for larger homes, resulting in tear down and replacement of smaller properties with larger homes. - Deleted: L.W. oropw - Deleted: have 1 • E • Since lots are small and structures compact, new larger structures can disrupt the rhythm and feel of the existing neighborhood altering the small town, coastal community character. Balancing the rights of property owners with the goals of maintaining and preserving community character will be a future challenge. While Newport Beach residents recognize the community as primarily residential, tourism has also influenced community character in Newport Beach. The City has a history of tourism and benefits economically from its attractiveness to visitors. In its older commercial villages, Newport Beach exhibits a beach culture representative of Southern California but unique to Newport Beach. Visioning participants have identified these villages as needing assistance to maintain their physical and economic vitality. Many areas exhibit the opportunity to maintain and reinforce districts, to make those that are fragmented, more cohesive, and to foster a sense of place. Programs such as the Balboa Sign Overlay and Design Guidelines, Mariner's Mile Design Framework, Balboa Public Improvements, and Corona de Mar Vision 2004 Plan, have been developed with such improvements in mind. The general plan land use plan can be utilized to identify the villages, districts and neighborhoods that should be preserved and maintained. Specific plans, design guidelines, overlay zones, and special design and performance standards may be applied to appropriate areas to ensure use compatibility and character preservation. Distinctions between different types of development densities such as rural, suburban and urban could be recognized to allow for a variety of lifestyle choices. This will allow for certain areas to maintain their existing character and have the types of uses and development that occurs there regulated. This could allocate more urban uses to the Newport Center and Airport Business area, while allowing Santa Ana Heights to maintain a more rural character and the planned development areas of Newport Coast to retain a suburban character. 181 3. F tore velo went shall consider the scale, urban form, desi _character and. _ _ _ - - neieteao n quality of the community. Delete0: Discussion: A region's built urban form defines its character and sense of place, and contributes to the overall quality of fife. For example, urban form can distinguish socially and economically vital pedestrian districts from auto - oriented districts. Urban form is defined by the density of development; location, lot coverage, interrelationships, massing, modulation and design of buildings; and the landscape and design of the intervening spaces that connect buildings. Urban form allows for the differentiation of residential neighborhoods, commercial centers and corridors, and industrial districts. Newport Beach is recognized as an attractive community with a strong community identity. Its villages are mostly small scale, intimate residential and commercial areas, with differing character yet exhibiting a unifying theme of quality places to five, shop, play and work. There also are more "urban" areas of Newport Beach, such as Newport Center and the Airport Business Area, where taller buildings and more dense development are the accepted norm. Threats to community character and quality such as residential through - traffic from 11 commercial areas. and commercial encroachment on residential neighborhoods are extremely important to address in existing and new development. New, infill or re- development can be directed to reflect and complement existing community character. If identified in the general plan land use plan, new development can be planned to complement existing land uses. Development can also be designed to be consistent with the scale of existing development and building massing in the surrounding area. Mixed -use development can be employed as an infill strategy in appropriate areas of the City. Additionally, architectural standards and guidelines can be developed for new development to ensure quality design that is contextually appropriate for the surrounding area. Visioning participants are in agreement regarding the importance of regulating development to protect the existing character and quality of the community. They have divided views on the issue of "mamionization" in residential areas; some residents support the increase in property values from larger homes, while some oppose unchecked building "supersizing" as a threat to the character of a "small town" beach community feel. The threshold for size varies by neighborhood and geographic area. Visioning participants have noted the need to create urban design guidelines and /or specific Plans to address design, especially in areas targeted for revitalization. Community members have also expressed that new design and building scale should complement and emphasize the characteristics of existing neighborhoods and villages. New development must also consider existing community amenities and be sensitive to those such that views remain protected, trees and landscape are enhanced and preserved, and fight pollution minimized. 4. Balance developed lands with adequate open space and recreation areas and preserve opportunities for maintaining healthy lifestyles in Newport Beach. Discussion: Newport Beach's natural setting facilitates active lifestyles and enjoyment of the cityrs physical resources. The presence of parks, art and cultural facilities, libraries and educational quality directly contribute to the residents' quality of fife. Outdoor and indoor recreational opportunitiespclude hiking, biking and aquatic related activities. Open space provides visual relief from the urban built environment; open space preservation allows for the enjoyment of views and supports habitat for wildlife. It is essential to maintain the open space, park, beach, and trail areas for the enjoyment of residents and visitors, and to ensure adequate opportunities for healthful activities. Visioning participants emphasized the importance of meeting the needs of residents, businesses and visitors recognizing that Newport Beach is primarily residential. In meeting residents' needs fer recreation, the city can also achieve its goals for providing a viable business and tourism environment that is dependent on the open space and recreational amenities of Newport Beach. The challenge will lie in meeting the needs of all while maintaining the quality of recreation and open space lands. - Deleted: . e«.,,aw u J • Guiding Principles for Community Character 5. Preserve the community's heritage. • Discussion: Newport Beach is renowned for its coastal lands and harbor. These resources, along with marine industry and maritime uses, have figured prominently in Newport Beach's history and physical development. Along with this acknowledgement and respect for the City's coastal and nautical history, interest has been expressed in preservation of historic buildings and locations (e.g., Balboa Pavilion and McFadden Square) that have contributed to Newport Beach's unique sense of place. Some of these resources may be eligible for recognition, but are not included on the official State or National register. They could be demolished or substantially altered, as there are no local historic preservation standards in place. There also are residential and commercial neighborhoods with a distinct historic character, such as Corona del Mar, Balboa Village and Balboa Island. This guiding principle supports the visioning participants' interest in protecting these historic commercial and residential villages. Protection of historic or significant resources could be accomplished through modification of development, standards that inhibit nrescnatio (.historic structures, . Jirirarinn of certain uses_pemvtted in some commercial areas, adondon of design and _ _ _ _ _ ' development guidelines, and adoption of more Specific Plans to regulate development, Another way to protect these historic resources is for the City to adopt local preservation standards for these resources. E 10 Deleted: tei.an tt Deleted: tequivmm. Deleted: for Deleted: uniting Deleted: tmlWong Deleted: zdoptutg Deleted: , and tedumig the permitted size of buildings it residential Deleted: 6.. Improvemenu to the City's eirculxion system should protect and take into eotnideration the eotmnunty's ehasaeter.I Dish m. The circulation system is integral to liNdng and providing aeeess to the diffe neighborhoods and distriets that font Newport Beach. Maintann" ease a aeeess tluoughout the eotmnunity is etideai to preserving resident5s quality of life. The appearanee and seale of roadways, and then ineuenee (noise, air pollution, pedestrian safety) on adjaeent yeas is important to maintain eompatibBlty. Laodsesping, teafge ea ening, limited annet widening, roadway signage, and parking tesnfedons em be used to improve roadway eonditions and reduee imparts on the mtmnuruty( Additionally altemadw transportation modes sueh as transit and bicycle ean enhanee eommunity eharaner by mdueing antomobile eongestion. lliryele and pedestrian paths also help to erdsanee the reereationai oppommities and aetive healthy lifestyle ehuaeter associatedwith Newport Ideaeh's eoastai eotmntudty and identity. City o)`Newport Beach General Plan Update GUIDING PRINCIPLES FOR POLICY FORMULATION • May 12 2004 EIP Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. These will indicate the areas of the City in which existing uses and densities will be conserved and those areas in which change is anticipated or may be encouraged. General direction regarding these areas was received from the public during the Visioning Process. As a result, a number of specific sub - arras have been identified by the General Plan Update Committee (GPUC) as "targeted areas" for which the GPAC will consider one or more land use alternatives. Illustrative of the areas to be considered are Banning Ranch, the Airport Business Area, Mariners Mile, West Newport Industrial area, Old Newport Boulevard, and Central Balboa. As the fast step in the upcoming process, the GPAC, will define the Guiding Prinapks that it will use as the basis for framing and assessing the land use alternatives. Essentially, these constitute the benchmarks, by which all alternatives will be judged. They will elaborate and expand upon the Vision Statement that was defined through the public process during the past yen and a half. These Prinaples may apply to environmental values that can influence the location and density of development, such as a principle that "no development shall be permitted in riparian coastal • canyons." They may apply to values regarding community character, such as a principle that "new development shall respect and maintain the scale, character, and quality of the community." Additionally, they may apply to specific economic sectors such as supporting economic activities associated with the harbor or supporting the revitalization of older commercial areas. In terms of the level of detail for the Guiding Primribkr, they may be thought of on a level with General Plan goals, from which more detailed policies and implementation measures will be developed. Many, if not all, of the Guiding Primepkr will be expressed in some form as goals in the draft General Plan, but for now the focus is on their function as benchmarks for developing and evaluating the land use alternatives. Once the Guiding Prindpkt have been defined, the GPAC will identify one or more land use alternatives for the twelve "targeted" sub -areas of the City in its May through July meetings. For each sub -area, Di session Papers will be distributed that summarize its existing conditions, key planning constraints and opportunities, and possible land use strategies. Following their identification, the alternatives will be evaluated for their comparative impacts on traffic, fiscal costs is Guiding Principles for Workforce and Special Needs Housing • and revenue, and environmental resources. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a PrefmadLaad Use Plan will be selected during October. • • The following section summarizes the affordable housing issues raised in the visioning process as reflected in "Corrununity Directions for the Future ". The subsequent section summarizes the issues related to affordable housing contained in the Housing Element of the City's General Plan, adopted in August 2003. Based on detailed information in the Housing Element, and the Housing Section of Chapter 2, Community Development, of the recently completed Technical Background Report prepared by EIP Associates, this paper provides a set of suggested Guiding Prinaipkr for affordable housing for consideration by the GPAC. "Workforce and special needs" housing has been used herein to describe Newport Beach's particular need of affordable housing. Summary of Workforce and SDeclal Needs Housing Issues THE VISIOMNG PROCESS The City initiated a Visioning Process in January of 2002 that culminated in publication of the Community Directions for the Future report in January 2003. The Visioning Process included a series of events, meetings and public information gathering programs and resulted in a vision statement fot Newport Beach and substantial public input on a wide range of issues for consideration in the General Plan Update. The information presented here includes the statements and issues from this process related to housing development in the City, and workforce and social needs housing in particular. Much of the discussion in this section, and the Housing Element section that follows, is related to opportunities to provide additional housing capacity in the City. However, to achieve the City's goals for providing an appropriate share of the region's affordable housing need, there are a number of strategies and tools that may be used to create workforce and ,special needs housing units from the additional housing capacity that may be created in the land use plan. These strategies are discussed in the following section of this paper. The vision for the future of Newport Beach describes the City's desired end state and what the community hopes to have achieved by 2025. Under the heading, "Growth Strategy, Land Use and Development," the vision states in part, that " There is a range of housing opportunities that allows people to live and work in the City." This statement reflects the community's acknowledgement that the availability of a variety of housing opportunities is a critical component of a desirable, viable, livable community. The Visioning Process gained public input on several specific issues related to housing development and workforce and special needs housing. The housing development issues discussed below are included because they represent the capacity for housing to which the City's workforce and special needs housing strategies can be applied, as appropriate, to achieve the City's affordable housing goals. From the visioning process, there was broad community consensus on some issues related to housing development, and more diverse opinion on others. The issues with consensus include the following: Deleted: AHadable Deleted: a(tonW, Deleted: a .,&ble Deleted: affordable Deleted: atroadabie y Areas suitable for Mixed,-Use Mixed -use development, by definition typically includes a residential component and therefore provides the opportunity to add additional units to the City's housing stock. From input collected at the Visioning Festival and the City's website, specific areas were deemed appropriate for mixed -use development integrating housing and commercial or office space. These areas include Balboa Village, Cannery Village, Mariner's Mile, McFadden Square, Lido Marina Village, the Airport Business Area and Newport Center. The GPAC favors mixed -use development in appropnat-e _ sites, and behoves each site should be studied for its specific suitability. The development of mixed -use projects in any of these areas recognizes the value that a housing component adds to the project as well as to the community as a whole. .Use_of Underutilized Commercial Land. GPAC members and Festival participants strongly agreed that the City should consider re- zoning excess and undemtilized commercial lands for residential or mixed -use development. Festival participants leaned more toward mixed -use development. The consideration to expand the areas in the City in which mixed -use is allowed supports the City's attainment of housing production goals in the Housing Element as well as its improved fiscal health through the revitalization of undemtilized properties. A divergence of opinion existed on the following housing development and,vorkforce and.sRcrial needs housing issues. Banning RancL. Banning Ranch is one of the few remaining opportunities for the City to develop additional housing in a large land holding. Community opinions are split as to whether development should be allowed at Banning Ranch or if this property should be preserved as open space. Forty -six percent of those familiar with the area support preserving the entire area as open space, and another forty -four percent support half of the land to be used for residential and limited light industrial with the remaining half reserved as open space. GPAC members had vaned opinions as well. Some support using a portion of the land for affordable housing, arguing that Banning Ranch is one of the few remaining places for this use. Summit participants who were supportive of development favored affordable housing and public facilities, such as for seniors and youth. Development of some portion of this site for housing presents a unique opportunity because of the limited availability of undeveloped land remaining in the City. Potential Development Areas. Overall, the responses supported the City setting firm constraints on development including expansion of employment centers and hotels. However, undtr certain conditions, there was support for additional development. Some Summit attendees favored p2i_xed -use development in Newport Center and stressed the need for more ,workforce and special needs housing in particular. Specific suggestions included high -rise residential units and condominiums. Deleted: Deleted: au Deleted: ,ft .d big Deleted: mind.,c Deleted: afmmbk • • n L-A THE HOUSING ELEmFNT The California State Legislature has identified that a major housing goal of the State is the attainment of a decent home and suitable living environment for every California resident. To further the attainment of this goal, State law requires local governments to prepare and adopt a Housing Element as a component of their General Plan and that the Element include the following: Identification and analysis of existing and projected housing needs, Resources and constraints, • Statement of goals, policies, and quantified objectives, • Programs for the development, improvement and preservation of housing, • Identification of adequate sites for housing, and • Adequate provision for existing and projected needs of all economic segments of the community. In August 2003, the City Council adopted an updated Housing Element that is a comprehensive statement of the City's housing policies and serves as a specific guide for implementation of these policies. The Element covers the planning period from the year 2000 to 2005 and examines current housing need, estimates future housing need, and establishes goals, policies, and programs pertaining to those needs. The housing programs in the City's Housing Element are responsive to current and future needs and are constructed within the context of available community, State, and federal economic and social resources, and realistic quantified housing objectives. The City is committed to achieving its housing production goals through a land use plan that facilitates appropriate additional residential capacity. Housing capacity alone, however, is not sufficient to create 4m1force and _ • special needs units. Thus, the City may want to consider policy approaches that result in a high probability of achieving its }workforce and special needs housing goals. A combination of strategies that include incentives- -such as density bonuses, and requirements- -such as inclusionary housing • Deleted: atf bk Deleted: affo k ordinances, works well for many communities to facilitate the production of workforce, and soecia_l - - Deleted: •ff �bk needs housing units. The City currently has a number of strategies and programs that may be appropriate to reconsider or prioritize to assist in this important goal. Issues and Constraints • Opportunities for new housing units are very limited as the City is essentially built out with few remaining vacant parcels. • Limited land availability means that new housing opportunities will occur on a limited basis _ Deleted: mucd u. as infill or reuse of existing properties, e.g. mixed -use development._ The City's beauty, coastal location, land values, and continuing housing demand combined with the high median income of residents contribute to housing prices that severely limit the Dektod:.ff bk availability of, .nrkfone and special needs housing. , • Continued housing demand relative to availability has resulted in higher housing prices and lower vacancy rates that further reduce the availability of housing for the local workforce. • There are strong communityAncerus regarding not only increased commercial and office - Deli: •� g development, but also higher density residential development due to concerns about traffic congestion and limitations on infrastructure. These concerns also reflect strong public - J Deleted:.m.&c �.d sentiment in favor of preserving the suburban character of the City- • Measure S may prove a constraint to housing development if a development proposal exceeds current General Plan levels, which may deter builders who look at increasing housing density w. a way to make housing more affordable. HousiagNeed The Regional Housing Needs Assessment (RHNA) prepared by the Southern California Association of Governments (SCAG) allocates Newport Beach a share of housing units required to satisfy housing needs resulting from growth in the region. To accommodate projected growth in the region, SCAG estimates the City needs to target a housing production goal of 476 new housing units. State Iaw requires SCAG to distribute new units based on income to avoid further impaction of localities with relatively high proportions of low- income households. Using the SCAG formula for households earning below 80 percent of the County median income and paying more than 30 percent of their income towards housing, the regional housing need allocation for Newport Beach is 476 units. These units are to be constructed over the Housing Element planning period of 2000 — 2005 and fall into the following income categories: Percentage Income Cat gory Units of RHNA Very Low Income 86 15 Low Income 53 11 • Moderate Income 83 17 Above Moderate 254 3% Total 476 100% In addition to the above RHNA allocation, the City has agreed to the transfer of a portion of the County's RHNA for the Newport Coast. The allocation for the Newport Coast area is 95 units for low- income households and 850 units for above moderate- income households for a total of 945 units for the area. The City will work with the County of Orange and the Irvine Company to ensure that these wakfo c au_d.s;?ec.iaLnccds housing commitments are met. Deleted: ,tro.amk In addition to the above housing needs allocation, the Element also identifies population groups with special housing needs. These groups may have a more difficult time finding decent workforce Deleted: &H &bk and §pedal needs housing due to special circumstances or household needs and include the elderly, disabled persons, large families, female- headed households, farm workers, and the homeless. Special J • 40 needs populations in the City that have been identified by available census data include the following: 10,318 senior citizen residents, e 1,734 female- headed households, e 2,117 disabled persons with self -care limitations, 171 farm workers, and • An undetermined number of homeless persons. The housing element includes Goal 5 to specifically address the City's special needs population. Senior citizens, defined as age 65 and above, are now the largest age -group segment in the City at 16.8 percent of the total population. The City will continue to use a portion of its affordable housing resources on this population, but will also address the needs of other segments, including fan- lies. , . Deleted: Aff dabk Currently Available,Work£orce and Special Needs Housing : ' There are ten developments in the City that provide a total of 321 income - restricted units for very low to moderate - income households based on the use of government subsidies in their financing or operation. Of the ten projects listed in the Housing Element, only two are scheduled to lose their affordability restrictions during the five -year term of the Element. One project lost its income restriction in 2002. However, the Lutheran Church managing the project has indicated that it has no intention of converting the 100 low- income units to market rate, and such a conversion would require an amendment to the use pemut. ThePomingQ Drive Apartments which cont_aig25 very- - - - Deleted: other Pmt low income units, is eligible for conversion to market rate units in 2005. Deleted: Housing Opportunities and Resources The programs and activities below are a summary of Housing Element provisions that provide opportunities for the construction of new housing units including incentives and requirements that facilitate the production of affordable housing units. These programs also include housing resources currently available in the City to facilitate the maintenance of existing housing units that are more affordable relative to other housing opportunities such as some mobile home parks and condominium conversions. Undeveloped Residentially Zoned Sites. The Housing Element identifies three vacant sites that are currently zoned for residential development. The sites range in size from 3.2 to 45.2 acres and have a capacity for approximately 582 units. This unit count may be exceeded under the density bonus provisions contained in the Housing Element. These sites, further described in the Housing Element, include Banning Ranch, Avocado - MacArthur, and Bayview Landing. M_ ixeclUJ g Zonin E�_ Newport Beach has a `Residential Overlay Zone" that allows mixed - Deleted: ..._..__.___..._ - residential and commercial developments. Man y commercial properties include an `R" Overlay designation and may integrate residential uses with commercial uses at a density of one unit for each 2,375 square feet of land area. This designation provides additional opportunity to provide housing in the City. • Redevelopment and Infil1QDDOLtunities. Since the City is essentially built out with the exception of a fevj vacant parcels, and land costs continue to escalate, the primary opportunities for new housing have been identified in infill and/or the redevelopment of existing properties. These properties are typically located in older areas of the City that were developed during a time when less intense utilization of the parcel was more typical than what now occurs. According to the City's Planning Department, based upon the consolidated acreage of these properties, the potential exists to add 1,100 additional units. It should be noted dnat as these are individual properties and not large land holdings, they are not likely to produce large numbers of units at one time, but rather slow and intermittent redevelopment with the incremental addition of units over time. • Annexation Areas. The Newport Beach Sphere of Influence (ultimate incorporated city limits) includes additional opportunities for future residential development in `Bay Knolls" and "West Santa Ana Heights ". The City will explore opportunities to increase housing opportunity in these areas. • Densitvv Bonus. The City will grant a density bonus or provide other incentives of an equivalent financial value to developers who agree to construct housing for low- and moderate - income households. • Requirement to movide affordable units (Q, in -lieu fees) in new residential developments. The City will continue this program with a goal of an average of 20 percent of all new • housing units developed to be affordable to very low- and low- income households over the five -year planning period of the Housing Element. • Require affordablc.housing in new residential develoRments within the Coastal Zone. The City requires the provision of affordable housing, where feasible, in projects of ten (10) or more units proposed in the Coastal Zone areas of the City. • Mobile Home Parks. There are currently ten (10) mobile home parks in the City, many of which are occupied by permanent residents. Space rents range from $500 to $3,000 depending on location in proximity to Newport Bay and size of the mobile home. Based on rent data reflected in the Housing Element, several mobile home parks remain affordable housing options relative to other types of conventional housing available in the City. • Condominium Conversion Ordinance. The conversion of an existing apartment building to an ownership condominium is typically more affordable than the construction of a similar unit. In the mid 1990's, the City of Newport Beach adopted a new ordinance to ease restrictions on condominium conversions as a means to promote fast time home -buyer • • • • opportunities and the rehabilitation of smaller more affordable housing units. Since 1995, the City has approved the conversion of 167 units. Suggested Workforce and Special Needs Housing Guiding Principles Deleted: Affordable 1. romote a balanced residential community, comprised of a variety of housing . - - Deleted: v.wde types, designs, and opportunities for all social and economic segments including very low, low, moderate, and upper income households. Discussion: In much the same way that the City must balance land uses and provide a variety of business types to maintain a positive fiscal balance, the City should strive to balance the variety of housing types, designs and opportunities available for all segments of the community. Such a balance contributes to a vital economy because people tend to shop where they live; adds to quality of fife and reduces traffic congestion to the extent that more individuals can five in the City where they work; and enriches the social fabric through the variety of household types in the community ranging from unmarried singles, to young families with children, to elderly single person households. Each group has different housing needs and contributes in its own way to enrich the community experience. Further, a variety of housing types affordable to all economic segments of the community allows greater opportunity for resident's children to afford housing in the community in which they grew up rather than having to move away due to the cost of housing. This concern is increasingly expressed in communities throughout the region as land values and housing prices continue to escalate. As summarized above, the Housing Element outlines current City resources and programs that support and facilitare this guiding principle. 2. Maintain quality residential development through the application of sound planning principles and policies that encourage the preservation, conservation_ oeleted:P.NOyIe and appropriate ene a of the City's housing stock. Deleted: mdevdopmem Discussion: This principle confirms the idea that Newport Beach is primarily a residential community, and that new development should preserve and protect that quality, not diminish it through inappropriateness or excess. The desire to provide a variety of housing types and opportunities, including, workforce and special needs units, in noway diminishes Deleted: affunbble the need to maintain an appropriate community standard in the quality of residential development. This principle relates to the need to insure not only that residential development is maintained at an appropriate level of quality, but that community character is maintained by ensuring the new commercial or business development is appropriate in scale to nearby residential. Guiding Principles for Workforce and Special Needs Housing 3. Consider -mixed -use development as a means to create additional housinK _ _ _ _ - Deleted: Ev ..w ....--1 --- ' -- - - - - - - - opportunities. Discussion: Due to the limited availability of vacant land to construct new housing, each opportunity that allows and or encourages housing development should be strongly supported Based on the City's ability to provide incentives such as a density bonus, and local requirements for affordable housing or in -lieu fees, each mixed -use project provides a potential opportunity to add workforce and special needs units to the Gtf s housing stock_ _ _ - Debtedt uff d bk Community support for &11ed -use development was acknowledged in the Visioning_ Process _ _ Deleted: �a and the City's Economic Development Committee (EDC) has indicated support for increasing opportunities for mixed -use in Newport Beach. Support for mixed -use is also reflected in Guiding Principal 4 of the Economic Development discussion paper. Mixed -Use development can take the form of multiple uses, in which residential, retail or office uses may be sited adjacent to each other, or be in the form of single development projects that combine mixed uses into multiple stories of development, such as retail commercial on the ground floor with residential or office space above. It is important to encourage land use combinations that are mutually supportive. Residential development creates local spending power to support retail development. Office uses also create daytime spending power as well as creating jobs for residents who may occupy the same building or adjacent units. For Newport Beach, it is also critical to maintain the proper scale for mixed - use development. There are many good mixed -use urban design projects in smaller city downtowns, which are appropriately scaled to the residential comnnunity environment desired by Newport Beach residents. Examples in Santa Barbara, Los Gatos and Brea have proven that it is critical that these developments maintain very high quality standards to avoid overcrowding or other negative aspects of higher development intensities that have occurred in older forms of mixed -use development, particularly in some of the eastern cities. 4. Consider the rezoning of under - performing commercial areas to allow residential Or mixed -use development. Discussion: The commercial Market Analysis conducted by ADE for this general plan update found that some commercial areas are underutilized and under - performing, such as the Balboa Peninsula and West Newport. Participants in the Visioning Process strongly agreed that the City should consider rezoning these areas to allow residential and fY d- Rezoning these areas, where appropriate, provides an opportunity for redevelopment that can benefit the City economically by recycling to more viable commercial land uses and provide additional housing opportunities in a market with strong housing demand, and address the City's need for additional units to meet Housing Element goals. Ibis principle is supported by Guiding Principle 6 in the Economic Development discussion paper that discusses designating commercial land uses in a manner that can be supported by the market. 5. General Plan policies,ahall protect the high value of residential property. - - Deleted: Homunge - - J Deleted: mbA um Dek[ed:.oa • Discussion: Protection of the City's residential values is a critical component of the City's • fiscal strength and its community character and identity. The provision of additional housing, including ,_2tkfoxge_ and special needs housing, must_be consistent with this_ - - - celeted: err .mnk principle and Guiding Principle No. 2 above. This principle also confirms the idea that Newport Beach is primarily a residential community, and that economic development should preserve and protect that quality, not diminish it through inappropriate or excessive development. It also relates to the need to ensure that commercial and business development is appropriate in scale to nearby residential neighborhoods. This principle, included as Guiding Principle 9 in the Economic Development discussion paper, further reinforces the conclusion of the fiscal analysis that higher value residential units pay for themselves in terms of generating sufficient tax revenues to pay for neighborhood services. • IM • City oj'Newport Beach General Plan Update • GUIDING PRINCIPLES FOR POLICY FORMULATION April 21, 2004 EIP Associates Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. These will indicate the areas of the City in which existing uses and densities will be conserved and those areas in which change is anticipated or may be encouraged. General direction regarding these areas was received from the public during the Visioning Process. As a result, a number of specific sub -areas have been identified by the General Plan Update Committee (GPUC) as "targeted areas" for which the GPAC will consider one or more land use alternatives. Illustrative of the areas to be considered are Banning Ranch, the John Wayne Airport business park /industrial area, Mariners Mile, West Newport Industrial area, Old Newport Boulevard, and Central Balboa. As the first step in the upcoming process, the GPAC will define the Guiding Principles that it will use as the basis for framing and assessing the land use alternatives. Essentially, these constitute the benchmarks, by which all alternatives will be judged. They will elaborate and expand upon the Vision Statement that was defined through the public process during the past year and a half. These Principles may apply to environmental values that can influence the location and density of development, such as a principle that "no development shall be pemitted in riparian coastal canyons." They may apply to values regarding community character, such as a principle that "new development shall respect and maintain the scale, character, and quality of the community." Additionally, they may apply to • specific economic sectors such as supporting economic activities associated with the harbor or supporting the revitalization of older commercial areas. In terms of the level of detail for the Guidr'ng Principles, they may be thought of on a level with General Plan goals, from which more detailed policies and implementation measures will be developed. Many, if not all, of the Guiding Prinaphs will be expressed in some form as goals in the draft General Plan, but for now the focus is on their function as benchmarks for developing and evaluating the land use alternatives. Once the Guiding Principles have been defined, the GPAC will identify one or more land use alternatives for the twelve "targeted" sub -areas of the City in its May through July meetings. For each sub -area, Dssmssion Papers will be distributed that summarize its existing conditions, key planning constraints and opportunities, and possible land use strategies. Following their identification, the alternatives will be evaluated for their comparative impacts on traffic, fiscal costs and revenue, and environmental resources. The impact analyses will be presented to and reviewed • • with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Prefemd Land Use Plan will be selected during October. The following section summarizes the environmental resource issues raised in the Visioning Process, as described in the document, "Community Directions for the Future." The subsequent section summarizes the issues that were identified through technical research and analyses conducted for the Technical Background Report. Based on these summaries, the paper provides a set of suggested Guiding Principles for environmental conservation for consideration by the GPAC. Summary of Environmental Conservation Issues THE V/SIOMNG PROCESS The City initiated a Visioning Process in January of 2002 that culminated in publication of the Community Directions for the Future report in January 2003. The Visioning Process included a series of events, meetings and public information gathering programs and resulted in a vision statement for Newport Beach and substantial public input on a wide range of issues for consideration in the General Plan Update. The summary information presented here is limited to statements and issues related to environmental resources of the City. The vision statement for the City under the heading of "A Healthy Natural Environment," reads as follows: Protection of environmental quality is a high priority. We preserve our open space resources. We maintain access to and visibility of our beaches, parks, preserves, harbor and estuaries. The ocean, bay and estuaries are flourishing ecosystems with high water quality standards. • The following findings were determined based on generally broad agreement among community members during the Visioning Process. ■ There is general consensus that the City's harbors and beaches are to be protected and enhanced as a resource. Visioning participants wished to protect the harbors and beaches as visual and recreational resources, while GPAC members felt that as harbors and beaches are improved as recreational uses, visual and economic benefits would follow. Most-participants touted water quality and pollution control as important concerns. GPAC members recommend that the City define separate water quality and conservation policies for different categories of water resources, such as ocean /bay and drinking. Newsletter questionnaire respondents hoped to make the clean -up and revitalization of the beach areas as priorities on the City's agenda. ■ A majority of the participants and members of GPAC strongly agree that coastal bluff areas are important and should be protected through stricter codes, tougher enforcement and improved planning and design efforts. Fifty-six percent of resident survey • respondents support City protection of the coastal bluffs, while 38 percent favor the • protection of property owners' rights. Participants felt that views of and from the bluffs need to be preserved. Specific bluffs that participants considered particularly significant include Castaways, Banning Ranch, Sunset Ridge, Hoag, Newport Coast, and Irvine Terrace. There was some support for restricting the height and size of homes, establishing large setbacks to protect bluffs, and being more restrictive in the use of variances. Other participants stressed the need to balance increased controls with the property owner rights. Residents agree that the City should preserve remaining public view corridors that include the coastal bluffs and create more views wherever possible. GPAC members recommended a citywide inventory of existing public view corridors be conducted, suggested offering redevelopment incentives to enhance those corridors and create additional opportunities for views, which other visioning participants agreed with. Another suggestion was for the City to purchase public view corridors as public land, while other participants wanted to protect private views as well as public views. Approximately 75 percent of survey respondents felt that current regulations regarding buildings, plants and trees, and business signs that interfere with views were either "just right" or "not strong enough." Although most participants concur that tidelands and other public lands should be preserved as open space, there was some support, especially among business owners, for development cf these areas. ■ Community members highly value the open space and parks within the City, and nearly 80 percent of participants of a visioning event wanted the City to be more proactive in acquiring these areas, even if doing so meant bond financing. A divergence of opinion exists on the following environmental conservation issue concerning Banning Ranch. Resident survey respondents were divided down the middle over whether to allow for limited development of Banning Ranch or to preserve the entire area as open space. This view was also held among GPAC members, where some members supported using a portion of land for housing while others raised concerns about any development due to environmental, safety hazards, and traffic issues. TECHMCAL BACKGROUND REPORT EIP prepared the sections associated with environmental conservation for the Technical Background Report (IBR) The issues that were identified as a result of the research conducted for the TBR are organized into larger environmental resource topics as summarized below. • C� J Biological Resources • ■ Protected and unprotected aquatic resources can be found along City coastlines, Upper Newport Bay, Newport Harbor, areas of Crystal Cove State Beach, and in the vicinity of Corona del Mar. ■ A number of features and drainages within the Newport Beach could be delineated as waters of the United States and fall under the jurisdiction of the Army Corps of Engineers. ■ Federally- or State - listed, as well as sensitive, plant and wildlife species occur or have the potential to occur within the Planning Area. ■ Wildlife corridors within the Planning Area provide valuable habitat for wildlife species. ■ A total of 29 Environmental Study Areas have been identified within the Planning Area, and potential threats to these areas include water quality, traffic, noise, public access, encroaching development, erosion and sedimentation, stormwater runoff, and introduction of invasive species. Hydrology and Water Quality ■ Future development is likely to increase the amount of impervious surfaces, thereby increasing stormwater runoff and sedimentation. This could result in potential deterioration in water quality and affect the all water resources within the Planning Area. ■ Some bay beaches are impacted by urban runoff, which brings pollutants such as trash, oils, pesticides, pet waste, and race metals, all of which may impair wildlife habitat and limit bay users' enjoyment of swimming and other water contact sports. Specifically, • degraded water quality of Newport Bay and Semeniuk Slough could increase the number of days the beach is closed. ■ Urban activities such as the use of fertilizers within the Planning Area contribute to the degradation of existing groundwater quality. ■ Natural activities such as storm events, as well as man -made activities, cause sedimentation within the Bay and require dredging. Dredging activities are used to remove sediment. Air Quality • Continued development will increase the amount of air pollutant sources within the Planning Area. The primary source of mobile source emissions will be from motor vehicles and watercraft while stationary air pollutant sources will be primarily from construction activities, implementation of industrial or manufacturing uses, and boilers that provide heat. Guiding Principles for Environmental Conservation ■ The segregated, low- density, auto - oriented pattern of development does not facilitate the • expansion of public transit services or alternative modes of transportation within the Planning Atea. Vehicles capable of using alternative fuels and possibly electricity may be commercially available and econoarically viable in the near future, and will need a large infrastructure to support and refuel these vehicles before the public can accept them. ■ As the City contains significant visual resources- coast, bluffs, hillsides and canyons- and much of Newport Beach's character and visual quality derives from its natural setting, it becomes important to protect views and encourage development that enhances such views. ■ While the City has Shoreline Height limitation regulations, expansion of existing and development of new homes upland from the coast may affect the community character of certain neighborhoods and have secondary visual impacts. In addition, the City has no specific regulations that determine the placement of development on bluffs. ■ There is an opportunity to provide vista turn out points and interpretative signs to add to the quality of fife for residents and visitors. ■ State Route 1 (SR -1) is identified as Eligible for State Scenic Highway designation and could be nominated for the State Scenic Highway program. Mineral Resources • Future development and /or recreation use of the Banning Ranch area could require remediation and clean -up, as well as be impacted by existing oil operations. • • Opportunities exist for remediation and /or reuse of the 33 abandoned oil well sites concentrated along the northwest boundary and located throughout the Planning Area. Suggested Environmental Conservation Guiding Principles 1. Protect and rehabilitate or enhance, terrestrial and marine habitats located within the City through careful siting of future development. Discussion. Potential impacts to biological resources located within the City can be affected by future development and need to be miniailzed. The Biological Resources Addendum dated December 4, 2003 ranks habitat quality within certain undeveloped areas in the City. Areas with a rank of 1, indicating a high biological resource value, would require a resource permit • Guiding Principles for Environmental Conservation • from federal and /or State agencies prior to development. Axeijs, with a ranking of 1 are located within the following study areas: Semeniuk Slough, MacArthur and San Miguel, Buck Gully, Morning Canyon, and Banning Ranch. While no extensive new development is anticipated in any of these study areas except for Banning Ranch, there is the possibility that expansion of existing uses could occur. Within Banning Ranch, given that it is primarily undeveloped, new development could also affect biological resources. Thus, new development may need to be located outside of areas with a rank of 1, or buffers between development and habitats need to be incorporated to protect resources, • • Additionally, expansion of existing uses and infill development within other areas of Newport Beach need to consider the presence of biological resources in order to reduce adverse impacts. Implementing measures such as strictly controlling encroachments into natural habitats to prevent impacts that would significantly degrade the habitat, and limiting encroachments into wetlands and mitigating any losses can also minimize impacts to biological resources.Jn addition -to protecting biological resources rehabilitation rZ enhancement of deeraded areas withinshe Plannine Area could also occur. As an examnle. the Banning Ranch site has been disturbed b * oil-infrasttuctwc and can be rehabilitated to imrzrrn,e the oualit�: of biological habitat onsite 2. Protectandimnrove water quality within the bay, estuaries, tidelands, and ocean. Discussion: The continuation of urban activities and future developmentwithin Newport Beach can affect the water quality of the bay, estuaries, tidelands, and ocean. However, water quality of the Planning area is monitored regularly, and there are numerous Federal, State, and local regulations in place to protect water quality. The City will also continue to comply with the National Pollution Discharge Elimination System (NPDES) that requires preparation of a stormwater pollution prevention plan, as well as implementation of best management practices during construction. Additionally, as new development and redevelopment activities on private property is proposed, onsite controls to reduce runoff into drainages should be required, as well as the incorporation of capital improvements such as filters and swales on public land by the City. Water quality impacts to the bay, estuaries, tidelands and ocean can be minimized and improved through these measures. This Guiding Principle would support the views of the Visioning participants and GPAC members. 3. Minimize air quality degradation through land use practices and circulation improvements that reduce reliance on the automobile. Discussion: Implementation of land use approaches that include transit oriented developments, and live /work situation that contain a mix of uses, such as housing and _ retail, can discourage automobile use and minimize air quality degradation. In addition, encouraging the use of alternative modes of transportation through expanding infrastructure to support vehicles using alternative fuels such as electricity, or the use of water transportation can further minimize air pollution within the Planning Area. Lastly, the use Deleted: abeei f dust pn in fm dmelopm t mild be difficult and/or the pe mh p.c , tm W be te°6tby. Deleted: , - j Deleted:I —_ —_ —i Deleted: odd-e Deleted:, and t%hrer densely de.elopment of public transit can be encouraged by expanding infrastructure and improving existing service. 4. Encourage the maintenance of natural landforms. Discussion: The Planning Area contains significant topographic features such as the Newport Mesa, ti:e San ]oaquin Hills, bluffs associated with Newport Bay and the Pacific Ocean, and canyons abutting stream courses. These natural landforms should be maintained. Generally, The Newport Coast Local Coastal Program grading standards tend to locate development on r.dges in order to maintain and protect the environmental resources in the coastal canyons. In addition, while the City has policies to minimize the alteration of natural landfomu and bluffs, and density limits have been established omitting slopes from the calculation, specific regulations in these areas have not been adopted. The City does, however, have very specific regulation in regards to floor area, height and building bulk. Over half of the visioning participants and most GPAC members agree that coastal bluff areas should be protected through stricter codes, tougher enforcement, and improved planning and design efforts, while some visioning participants favor the protection of property owners' rights. By implementing more restrictive siting limitations for new structures on significant topographic features, and not giving variances from these ordinances, impacts to natural landforras could be reduced. However, such restrictions in already subdivided areas could severely reduce, or even eliminate, future development on these lots. 5. Encourage the protection and creation of public viewsheds within the City. Discussion: Visioning participants indicated the desire to preserve remaining public view corridors and for the City to purchase these areas as public land. Many participants also wanted tidelands and other public lands to remain as open space to preserve views. GPAC members recommended that a citywide inventory of existing public view corridors be conducted, suggested redevelopment incentives to enhance those corridors, and to create additional opportunities for views. (r Minimize the exposure ofpeople to noise hazards_ _ _ _ _ Deleted: Implementation of policies associated with costal views, bulk an do height 1®itation, scud coastal bluffs wi the Gqs DnR Local Coastal Progrun (dared February 2004) can help to proem public vL bed, wirLm Ncapon Bach. Protective en.. s include designing and siting neon devdopmmS including landscapnsg, w she edgrs of public corral view en"W tar. to cress wars, the roast al bluffs rma'nn essentially unaltered, developments pmhibhed on bluff fares. where coastal bluffs Itavc been altered, employing rise design and mnsmncticn techniques to mm®im allocations mat include clustering of bmlthap and requiring any altered slopes to thud ins. the nannd contours of the she an reduce msmcs ro victesheds. Deleted: &. Integrate open space amenities vithfn Bamting Rancb.T D.. Through she nc ci, process, participants acre dmided on whmber, to afio c for I®ind devdopmmt ' or to pscere, the more area u open space The development that par oczpants ace supportive of include bousmg and public facilinio, as well u sports fields, a had, and some commercial development Sous, GPAC mernbers also support using a portion of the areas for affor&b1c housing u this one of the few undev<IopM sines wthin the planning Ara while others armed to prcsme the more aea..An open space dement a•imm Banumg Ranch can also pm idc oppononnors for pusrer and acni, rcereatio al usa. The pretence of high value biological habitat. u axll as casung oil praducmo acoviues that conk] be msdy to atmednre, pro, de, opportunities to peesave habitat cithm she Banning Bash ua. Deleted: y.. Manuel the expossM people and property to structural us' .remand flat hazaada.l Discursaim: As desmmioed through the TBR analyses. du uudrvdaped.1. and Onde area when name vegrnswo and nca predommare sithm she astern posua.s of thc trlantu, Ara are moss susceptible to damage from veil fires. I Ile mavagernrnt of vrgetoon within a 1 DD-foot aide setback of a stmerurc, as '- '- - mm as csnbtislting a fuel roodificaow zone that estabb,hrs a cash. of land surrounding the rmuetum ro diminish the intensity of a ldfisc, arc merhsdolugim used to reduce she wdAamd hazards in udaan /w0dland interface acs. Impless uaeon of both of these trrthodologics, ss eell a mformammt of the City's Uniform F Code, ran ..c foe haaasds. In addition, Discussion: Currently, there are existing noise conflicts located primarily in dense residential areas near the ocean, harbor and bay. Infill development in these areas will be exposed to the noise conflicts, as well as potentially contributing to the ambient noise levels. Additionally, nighttime restaurant operations will continue to generate noise throughout the Planning Area, and could adversrl- affect emeitive rer:etn4rsSUCh as residential uses, medical Deleted: s Deleted: particularly in close prownity tome harbor. and affect sunusn • facilities. convalescent centers. and retirement homes. There is also the potential for mixed- me developments to be implemented in the City, which has the potential to increase additional populations to noise. Further, if air traffic at the John Wayne Airport increases, despite the fact that most residents are not in support of this, ambient noise levels would also be affected. In accordance to the City's Noise Ordinance. exterior noise levels exceeding 50 dBA between 111 p.m. to 7 a.m. and 55 dBA between 7 a.m to 10 p.m- in residential areas. or 50 dBA between 10 p.m. to 7 a.m. and 60 dBA between 7 a.m. to 10 p.m. in residential portions of mixed -use npemes could present a potential nuisance. However.noise impacts can be partially mitigated through retrofitting existing buildings containing sensitive receptors with new windows and ventilation systems, as well as insulating these structures and new buildings. As there will always be edges within the City where sensitive and noise - generating uses interface, conflicts can be reduced by including more stringent noise standards or enforcing the existing noise ordinance. In addition, limiting hours of operation, not allowing loitering after business hours, or strategically locating delivery areas are additional measures that can reduce ambient noise levels. Where there are opportunities, buffers such as walls or berths, or setbacks can also be used to minimize noise levels. 7. Minimize intrusion from liaht"urces. Discussion: As new development within the Planning Area occurs, additional light sources will be introduced onsite that could adversely affect surrounding areas during nighttime hours. Imnlementation of measures such as incomoratinelandscape buffers between existing and new uses to prevent an increase in fighting on adjacent properties, and reyuin¢ that exterior fights direct 1kht pools away from off -site viewers can minimize intrusion of these sources. I • - fMteted. N iennatted R9g87t[17.OWesd- " naF►1ek = rE :o4L2A=.7!W:.; 7. Minimize the exposurc of people and property to structural and wildland fire • hazards. Discussion: As determined through the TBR analyses, the undeveloped canyon and hillside areas where native vegetation and trees predominate within the eastern portion of the Planning Asea are most susceptible to damage from wildland fires. The management of vegetation within a 100 -foot wide setback of a structure, as well as establishing a fuel modification zone that establishes a ribbon of land surrounding the structures to diminish the intensity of a wildfire, are methodologies used to reduce the wildland hazards in urban/wildland interface areas. Implementation of both of these methodologies, as well as enforcement of the City's Uniform Fire Code, can minimize fire hazards. In addition, development within high wildland fire hazard areas are limited. Newport Beach is also susceptible to structural fires, especially in the older portions of the City, such as Balboa Peninsula, Balboa Island, and Corona del Mar. The structures in these areas tend to be older and built to dated building standards and fire codes. As redevelopment within these areas occur, enforcement of existing fire codes, in addition to encouraging owners of non - sprinklered structures to retrofit their buildings, can reduce fire risks. • • • City of Newport Beach General Plan Update GUIDING PRINCIPLES FOR POLICY FORMULATION April 20, 2004 EIP Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. These will indicate the areas of the City in which existing uses and densities will be conserved and those areas in which change is anticipated or may be encouraged. General direction regarding these areas was received from the public during the Visioning Process. As a result, a number of specific sub -areas have been identified by the General Plan Update Committee (GPUC) as "targeted areas" for which the GPAC will consider one or more land use alternatives. Illustrative of the areas to be considered are Banning Ranch, the John Wayne Airport business park /industrial area, Mariners Mile, West Newport Industrial area, Old Newport Boulevard, and Central Balboa. As the first step in the upcoming process, the GPAC, will define the Guiding Prinnpki that it will use as the basis for framing and assessing the land use alternatives. Essentially, these constitute the benchmarks, by which all alternatives will be judged. They will elaborate and expand upon the Vision Statement that was defined through the public process during the past year and a half These Prinripler • may apply to environmental values that can influence the location and density of development, such as a principle that "no development shall be permitted in riparian coastal canyons." They may apply to values regarding community character, such as a principle that "new development shall respect and maintain the scale, character, and quality of the community." Additionally, they may apply to specific economic sectors such as supporting economic activities associated with the harbor or supporting the revitalization of older commercial areas. In terms of the level of detail for the Guiding Principles, they may be thought of on a level with General Plan goals, from which more detailed polities and implementation measures will be developed. Many, if not all, of the Guiding Prin iples will be expressed in some form as goals in the draft General Plan, but for now the focus is on their function as benchmarks for developing and evaluating the land use alternatives. Once the Guiding Principles have been defined, the GPAC will identify one or more land use alternatives for the twelve "targeted" sub -areas of the City in its May through July meetings. For each sub -area, Discussion Papers will be distributed that summarize its existing conditions, key planning constraints and opportunities, and possible land use strategies. Following their • iGutding Principles for Mobility and Alternative transportation Modes identification, the alternatives will be evaluated for their comparative impacts on traffic, fiscal costs • and revenue, and environmental resources. The impact analyses will be presented to and reviewed with the GPAC and at wcrkshops designed for input from the general public in September. Based on the input received, a P.Trferad Land Ure Plan will be selected during October. The following section summarizes the circulation issues raised in the Visioning Process, as described in the document, `Community Directions for the Furure." The subsequent section summarizes the major circulation issues identified in Section 3.1 Circulation, of the Technical Background Report, and the Newport Beach Planning Issues Report, both prepared by EIP Associates based upon the work of the general plan traffic consultant Urban Crossroads, with review and comment by City staff. Based on these summaries, this paper presents a set of suggested Guiding Pringle] for circulation and alternative transportation methods for consideration by the GPAC. Summary of Mobility and Alternative Transportation Mode Issues THE VISIONING PROCESS The City initiated a Visioning Process in January of 2002 that culminated in publication of the Community Directions for the Future report in January 2003. The Visioning Process included a series of events, meetings and public information gathering programs and resulted in a vision statement for Newport Beach and substantial public input on a wide range of issues for consideration in the Genexal Plan Update. The summary information presented here reflects the statements and issues related to circulation issues such as traffic congestion, puking, traffic impacts to neighborhoods, and alternative transportation modes that were expressed during the visioning process. The vision for the future of Newport Beach describes the City's desired end state and what the community hopes to have achieved by 2025. Under the heading, "Efficient and Safe Circulation," • the vision is stated as follows: "Traffic flows smoothly throughout the community. The transportation and circulation system is safe and convenient for automobiles and public transportation, and friendly to pedestrians and bicycles. Public parking facilities are well planned for residents and visitors." The Visioning Process also gained public input on a range of more specific issues related to circulation impacts. There was broad community consensus on some circulation issues, and more diverse opinion on others. The issues with consensus include the following: ■ While there was broad support among Visioning Festival participants for a wide range of solutions to address parking impacts to residential neighborhoods, GPAC members cite that remedies to parking problems must be evaluated in relation to specific sites and neighborhoods. E Guiding Principles for Mobitity and Alternative Transportation Modes • ■ GPAC members specifically emphasized the importance of improving sidewalks and pedestrian walkways in the West Newport area. There was support for the City to encourage the use of alternative transportation modes, including public transit and improved bike and pedestrian trail connectivity, and signal synchronization, especially during peak hours. Other transportation solutions that received support included improving roadway signage, especially for tourist destinations; eliminating street puking along Mariner's Mile during peak hours; and providing shuttle service for senior citizens, students, and tourists. A divergence of opinion exists on the following issues related to circulation. A majority of participants are concemed with traffic congestion, but views differ over how to address the problem. Fifty -seven percent of resident and business respondents rated traffic as somewhat congested. Roughly a third of businesses and a quarter of residents rated it very congested. When asked how to remedy congestion, however, participants have not reached consensus on any one proposal. A majority of respondents opposed all the suggested options to improve traffic circulation. The level of support for most options was low, with business respondents generally showing higher levels of support than residents. Suggested potential improvements include widening]amboree and Mac Arthur, an overpass at]amboree and MacArthur, and widening Coast Highway through Mariner's Mile. • There was agreement that current conditions need to be improved, but some participants stated that capacity should not be added to encourage new development. • No clear consensus emerged as to how to remedy traffic impacts to neighborhoods. In • surveys, only 37 percent of residents and 29 percent of business support traffic calming measures such as stop signs, narrowed streets or roundabouts. Some have suggested stricter enforcement of speed limits and improving transit options and school transportation. • Overall people want the City to set firm constraints on development, including expansion of employment centers and hotels; however, additional development may be acceptable in certain areas under certain conditions. Concerns were expressed regarding traffic impacts that may result from additional development activity in the following potential development areas: • Fashion Island. Some GPAC members were concerned that any expansion, however limited, would increase traffic congestion. • Newport Center. Visioning Summit participants expressed concerns about traffic impacts and puking safety around Newport Center. Of particular concern is the congestion in the areas of San Miguel, MacArthur, and Avocado. 0 o Airport Business Area. Some GPAC members expressed concern about traffic impacts in this area since it is being targeted for revitalization and • some suggested that the City consider transferring development rights as a trade -off between building heights and the amount of remaining open space in the area. TECHMCAL BACKGROUND REPORT (TBR) AND NEWPORT BEACH ISSUES REPORT The TBR is a comprehensive documentation of the existing conditions in the City relevant to preparing an updated general plan. The Newport Beach Issues Report is a summary of the issues expressed in the visioning process and the issues identified as a result of the research conducted for the TBR. The circulation issues in the TBR and the Issues Report prepared by EIP Associates are based on technical traffic analysis conducted by Urban Crossroads, the traffic consultant for the City's general plan update. The summary below reflects circulation related issues such as traffic congestion, parking, traffic impacts to neighborhoods and alternative transportation modes such as transit, bicycle, pedestrian and water transportation. • Based on technical analysis, growth from the Current land use element combined with growth in areas surrounding the City will result in increased congestion even with build - out of the roadway system in the Circulation Element. A combination of enhanced roadway improvements, changes to the level of service standard, and reductions in current land use intensity will be required to achieve consistency between the Circulation and Land Use Elements. • Through traffic on key roadways is typical for the region, even though traffic on key roadways (Coast Highway, MacArthur, etc.) is perceived as an issue based on comments from the visioning process. However, the potential for additional through traffic is directly related to the ability of the regional highway system (e.g. I -5, I -405, SR -55, and • SR -73) to accommodate ongoing growth in regional traffic. • Parking issues in the coastal areas in general and Balboa Peninsula, Balboa Island, and Corona del Mar, in particular, are well - recognized within the City. Potential future efforts to address this issue include a permit - parking program, parking time limits, consolidation of public parking, increased public parking, shared parking programs, shuttle systems, and valet services. • An established network of bus routes serves current employment, shopping, and recreational areas in Newport Beach, although bus service is an issue in Newport Coast. • Bicycle paths and trail systems in Newport Beach have been designed to accommodate commuters, pedestrians, and recreational cyclists. Ongoing efforts to expand this system should include completing the master plan and identifying opportunities to provide linkages that connect complementary land uses. • • • • ■ Pedestrian facilities are an important component of the standard roadway classification cross - sections in the Circulation Element. Inclusion of these facilities is consistent with policies to support incorporating pedestrian features into future development projects. Pedestrian access points from Coast Highway south to Newport Bay and pedestrian facilities in Mariners Mile were also raised as particular areas of concern. Suggested Circulation and Alternative Transportation Mode Guiding Principles 1. Establish General Plan land uses and density /intensity limits that will have less impact on peak hour traffic. Discussion: The currently adopted General Plan land uses, in concert with regional traffic, result in congestion levels that exceed the currently adopted standards. Considering land uses with reduced peak hour traffic generating characteristics could improve this situation, or could allow new development that doesn't worsen the situation. 2. Consider the potential benefits and costs (housing, social, community character, fiscal and economic) of land use and circulation system alternatives as part of the - Deleted: t,efo.r process of adopting goals regarding acceptable levels of service for the circulation system. Discussion: During the visioning process, people said they want the City to set firm constraints on development; however, additional development may be acceptable in certain areas under certain conditions. People also expressed concern about traffic congestion, but there was not consensus on how to remedy it. The traffic model shows that congestion will worsen in the future, as a result of regional influences as well as build -out of the existing General Plan. This guiding principle allows the City to use analytical tools such as the traffic_ and fiscal impact models to identify the benefits and costs of new development, and then make informed decisions regarding conflicting community goals. 3. Regional traffic will be included in the analysis of land use alternatives, but such traffic should not be the sole reason for rejecting a land use alternative that would have net benefits to Newport Beach. Discussion: The traffic study shows that regional traffic is a significant contributor to congestion in Newport Beach, due to the City's location in a coastal and urbanized area and the goals of surrounding cities to add development. This traffic must be included in the analysis of General Plan alternatives so that the complete picture is understood before decisions are made. However, regional traffic is outside the control of Newport Beach, and should not limit the City's ability to plan for furore development in a way that may benefit Newport Beach. The existing Circulation Element recognizes this principle by determining the Land Use Element's correlation with the LOS D standard without regional traffic included in the analysis. Regional traffic, however, is included in determining the need for improvements to the circulation system and consistency with regional plans. This principle Deleted: Ahh..gh it may be appogiog to ter a gml of oot worming mf& eoogwion.me imploring it,a.lmg f a sondud so ady in the proms w d limit oPpotmniw. fm caeadi planing and fot addc+mg otha gods that troy be a a.c a paoaldmg h—.9 foci Pmpk who ooh m Newpon Bach m iso o g old. oommatnl ams. Deleted: Deleted: wiu will allow the General Plan to give priority to the needs and goals of Newport Beach, rather than constraining the City by what is happening around it. 4. In selecting land use and circulation system altematives, weight will be given to traffic congestion that is ongoingps well as to congestion that is limited to a few hours of the day or a few months of the year. Discussion: Many of Newport Beach's congested intersections are impacted only for a few hours each weekday when people are going to and leaving their jobs, and operate well above the City's standard for most of the day and during weekends. Similarly, the coastal areas suffer their worst congestion during the summer months when there is extra visitor traffic, but operate well daring the rest of the year. Although traffic congastion occurs at limited times these are the times that NeWort Beach residents are the most impacted. If the City plans to accommodate these peak periods at its standard of LOS D, it may be necessary to consider circulation system improvements that are inconsistent with community character goals or constrain land use alematives in a way that could limit achievement of economic development goals. This principle provides that, the Ciry w LCOnsider traffic coneecEtion at all tunes of the day and all seasons of the year in planning for future development--------- 5. The community will accept additional congestion when it chooses to maintain the current urban form / community character by limiting roadway widening or other circulation system improvements, Discussion: The vast majority of residents view Newport Beach as a residential beach town with broad appeal as a tourist destination and that the community's character is a significant attribute. There is a sense that large -scale circulation system improvements will have a negative affect on the community's character and lessen its chains For example, the City may not want to widen Coast Highway in Mariners Mile because it would increase the width of pedestrian crossings, increase traffic speed and result in a "freeway" feel; adversely impacting the `village" atmosphere and the success of existing businesses. Strong opposition to widening]amboree Road (71 percent residents /62 percent business) and MacArthur Boulevard (68 percent residents /60 percent business) were also expressed for the same reasons. Participants were generally opposed to overpasses anywhere in the City, although a small contingent supported an overpass at]amboree and MacArthur. Residents and businesses preferred leaving roads as they currently are to widening options by a 2 to 1 ratio. At the same time, it should be recognized that any "downsizing" must be accomplished through a cooperative effort with the Orange County Transportation Authority and other affected agencies. Otherwise, the Cry will risk losing funding for (other) future roadway improvements. ' Deletc0: grata Deleted: man Deleted: ilbm Deleted: to accept some congestion at peak horns and seasons, aad to plan for its fume m awayt ' meets she commusuvfs cacvhtio. goal mosa of the t ®q as esa as meetmgothagoals. Deleted: and urban forth • • G u I d Ing Principles for Mobility and Alternative Transportation Modes 6. Consider establishing a different level of service standard for the airport area, W with consideration of possible impacts on residential areas. Discussion: The Airport Business Area is part of sub - regional business area that includes the Irvine Business Complex and the Airport Business Park in Costa Mesa. The area includes intensively developed office areas in addition to smaller -scale industrial uses. The City of Irvine uses special relaxed LOS standards in this area when evaluating development proposals. The combination of external factors (traffic from John Wayne Airport, for instance) and economic potential that minimizes impacts to City residents combine to suggest that a ffer nt level of - s - ervice standard for this area may be of benefit to the City of Newport Beach, as well. This cold allow consideration of intensification and /or land use changes, which could upgrade the Newport Beach portion of this area and make it more productive for property owners and the City. 7. Improve parldngrsupply and use of existing resources, and reduce congestion in 19uW_51 areas. Discussion: Several areas of the City2re impacted by tourists, such as Balboa Village, Central Balboa Peninsula, McFadden Square,rlariner's Mile and Corona del \far. Each of these areas experience traffic congestion and has parking issues. Shared parking programs, consolidation of public parking facilities, free shuttles, and other approaches, including the identification of locations to support them (c_e -,-the Air= Arcai, could enhance these areas. S. Consider orb" scale development in areas where there is potential for development patterns that will minimize traffic. • Discussion: Considering the limited options available and the lack of consensus for system improvements to address the City's traffic congestion, the City must use smart growth concepts where possible. Approaches such as transit oriented development, mixed use, and compact development have been successful in other communities. In Newport Beach there is an example of mixed use development in Newport Center, which includes housing, offices, retail, visitor accommodations, cultural and recreational uses. Use of these concepts can provide benefits to the quality of life in communities by reducing traffic, providing housing adjacent to employment; and creating 18 -hour activity centers in the commercial areas in which they are located. Participants in the visioning process as well as the City's Economic Development Committee (EDC) have indicated support for increasing mixed -use development in Newport Beach. One area which may be considered for urban -scale mixed use is the Airport Business Area, while less intense mixed use might be considered in older on- street commercial areas such as Mariners Mile. This principle strengthens support for mixed use based upon the reduced traffic impacts of mixed -use projects. • Deleted: M M Deleted: Deleted: olds, Deleted: have laev ida6fied u bcv�g ' � oaa or �,cnuw - . Deleted: Nd 9. Increase City strategies and programs to enhance the development and use of • alternative transportation modes and transportation systems management. Discussion: There are many proven ways to reduce congestion and improve mobility through the use of alternative transportation modes and transportation system management. Transit modes such as shuttles (particularly in the heavily congested tourist areas), light rail, electric cars, taxis (both ground and water), boats, bicycles and walking are alternatives to driving private automobiles. System management possibilities include traffic signal synchronization, rideshare programs and carpooling. 10. Plan the arterial roadway system to accommodate projected traffic at a level of service acceptable to the community while minimizing neighborhood intrusion. Discussion: Widening and improvements to the arterial roadway system can greatly reduce the intension of pass - through traffic into residential neighborhoods. At the same time, such improvements car. be detrimental to the areas through which they pass, particularly small on- street commercial districts with a strong pedestrian orientation such as Corona del Mar. As such, there are trade -offs which must be resolved as the circulation system is planned for the future. CJ •