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Home My WebLink About04 - Development AgreementsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 4 March 13, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Sharon Wood, Assistant City Manager 949 - 644 -3222, swood @city.newport- beach.ca.us SUBJECT: Ordinance Amending Chapter 15.45 of the Newport Beach Municipal Code Regarding Development Agreements ISSUE: What kinds of development projects that are proposed pursuant to the 2006 General Plan should be accompanied by development agreements? RECOMMENDATION: Introduce an Ordinance of the City Council of the City of Newport Beach Amending Chapter 15.45 of the Newport Beach Municipal Code Regarding Development Agreements, and pass to second reading on March 27, 2007. DISCUSSION: The General Plan includes policies requiring development agreements for two types of projects, those that add new residential units, without replacing other development, in the Airport Area and Newport Center. The General Plan /Local Coastal Program Implementation Committee recognized that the City and developers have used development agreements for various projects over the years, without any legal requirement (except for timeshare developments) or guidelines from the City Council. The Committee set the establishment of requirements for development agreements as a General Plan implementation task. The attached ordinance amends Chapter 15.45 of the Municipal Code dealing with development agreements. In addition to the General Plan requirements, the ordinance requires development agreements in conjunction with certain development projects that require a legislative act, such as a General Plan amendment or zone change. These are the cases in which the applicant is making a special request of the City, and where the City has the greatest discretion to approve or disapprove an application. In addition, Ordinance Amending Chapter 15.45 of the Newport Beach Municipal Code March 13, 2007 Page 2 the applicant is likely to be interested in preserving the development rights established by the legislative act, as well as currently established fees, over a long period of time. A development agreement provides that assurance to the applicant in exchange for public benefits to the City. The proposed ordinance further defines which projects with legislative acts will require development agreements as those which include the following: 50 or more residential units, residential development in the Mariners' Mile corridor, and new non - residential development in the Airport Area, Newport Center, and on the MacArthur Boulevard Caltrans parcel. The ordinance provides that a development agreement is not required for any project that includes remodeling of existing building floor area, with no addition. Finally, the ordinance provides for the City Council to waive the requirement (except where it is a General Plan requirement) when the Council finds that the legislative act is minor, the project provides significant public benefits to the City, or neither the City nor the developer would benefit from a development agreement. The General Plan /LCP Implementation Committee reviewed the draft ordinance at its meetings of February 14 and 28, and recommends that City Council adopt the ordinance. Environmental Review: Adoption of the ordinance is not a project as defined by the California Environmental Quality Act, since it constitutes general policy and procedure making. Public Notice: No notice other than posting of the agenda is required for this action. Copies of this report and the draft ordinance have been sent to an interest list established for implementation of the General Plan. Submitted by: Al A / /NYLS4�X Sharon Wood Assistant City Manager Attachment: Draft Ordinance COUNCI� AGENDA ' NO. q ORDINANCE NO. 2007- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING CHAPTER 15.45 OF THE NEWPORT BEACH MUNICIPAL CODE REGARDING DEVELOPMENT AGREEMENTS WHEREAS, the City Council of the City of Newport Beach adopted Ordinance No. 82- 30, adding Chapter 15.45 Development Agreements to the Newport Beach Municipal Code; and WHEREAS, the City Council approved a comprehensive update to the Newport Beach General Plan on July 25, 2006, which update was approved by the voters, pursuant to Charter Section 423, on November 7, 2006; and WHEREAS, the General Plan allows new land uses and more development than had previously been allowed on some properties; and WHEREAS, the City Council recognizes that much of the additional development will require future legislative changes to the Zoning Code and Coastal Land Use Plan. The City Council wishes to provide the ability for development allowed in the General Plan and approved by the voters to be implemented gradually and thoughtfully over an extended period of time, to provide developers with certainty regarding development impact fees, and to provide a mechanism for developers who benefit from these protections and the increased development opportunities to provide additional public benefits to support implementation of the General Plan; NOW, THEREFORE, the City Council of the City of Newport Beach hereby ordains as follows: SECTION 1: Chapter 15.45 Development Agreements of the Newport Beach Municipal Code is hereby amended to add a new Section 15.45.020, as follows, and to renumber existing Section 15.45.020 and subsequent sections as 15.45.030 Application and Fees through 15.45.100 Recordation. 15.45. 020 Development Agreement Required A. Development Agreements shall be required in conjunction with City approval of the following development projects 1. Projects for which a Development Agreement is required per General Plan policy, or 2. Projects that require a General Plan amendment, Zoning Code amendment or other legislative act and that have one or more of the following characteristics: a. Include the development of fifty (50) or more residential units. b. Include residential development in the Mariners' Mile corridor, as this geographic area is described in the General Plan Land Use Element. c. Include new non - residential development in Statistical Area L1 (Newport Center), Statistical Area L3 (North Ford Area), or Statistical Area L4 (Airport Area). B. Notwithstanding the provisions of Section 1.45.020 A, a Development Agreement shall not be required for a project that includes remodeling of existing building floor area, without the addition of new floor area. C. The City Council may waive the requirement for a Development Agreement, except for one required by General Plan policy, if it finds that the legislative act is of a minor nature, the project provides significant public benefits to the City, or the nature of the project is such that neither the City nor the developer would benefit from a Development Agreement. SECTION 2: If any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. SECTION 3: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. SECTION 4: This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach, held on the _ day of 2007, and adopted on the day of 2007, by the following vote, to wit: AYES, COUNCIL MEMBERS NOES, COUNCIL MEMBERS ABSENT COUNCIL MEMBERS MAYOR ATTEST: CITY CLERK