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HomeMy WebLinkAbout0 - Correspondence11 Iii OFFICE OF THE CITY ATTORNEY DATE: January 24, 2012 TO: Honorable Mayor & Members of the City Council FROM: Leonie Mulvihill, Assistant City Attorney MATTER: NEWPORT BEACH COUNTRY CLUB (PA2005 -140) - GOLF REALTY FUND - 1600 AND 1602 EAST COAST HIGHWAY - No.: A10 -00773 SUBJECT: City Council Meeting January 24, 2012, (Minor Revision to Agenda Item No. 14 The Office of the City Attorney and City staff request a modification to the proposed Development Agreement included in Agenda Item 14. Specifically, we request that Section 3.1 of the Development Agreement, which is included on Page 8 of the Development Agreement and marked as handwritten page 495 in the agenda packet, be revised as set forth in Attachment No. 1. We have confirmed that the applicant is agreeable to this modification Submitted by: OFFICE OF THE CITY ATTORNEY rpyyL__� L oe nie Mulvihill Assistant City Attorney Attachments: Attachment 1- Legislative Copy of Proposed Change cc: Aaron C. Harp, City Attorney Kimberly Brandt, Director of Community Development [A10- 00773] -M &CC from LM 01.24.12 re Revisions to Section 3.1 ATTACHMENT No.1 which the Property and the Project would otherwise be subject (herein, the "Public Benefit Fee ") in the sum of (i) Ninety -three thousand Dollars ($ 93,000 ) per each residential dwelling units; and (ii) Ten dollars ($10) per square foot of construction for the proposed golf clubhouse'; and (iii) Ten dollars ($10) per square foot of new construction to the existing tennis clubhouse, with the unpaid balance of said Public Benefit Fee increased on the first January 1 following the Effective Date of this Agreement by the percentage increase in the CPI Index between the Effective Date and said January lst date (the first "Adjustment Date ") and thereafter with the unpaid balance of said Public Benefit Fee increased on each subsequent January 1 during the Term of this Agreement (each, an "Adjustment Date ") by the percentage increase in the CPI Index in the year prior to the applicable Adjustment Date. The amount of the percentage increase in the CPI Index on the applicable Adjustment Dates shall in each instance be calculated based on the then most recently available CPI Index figures such that, for example, if the Effective Date of this Agreement falls on July 1 and the most recently available CPI Index figure on the first Adjustment Date (January 1 of the following year) is the CPI Index for November of the preceding year, the percentage increase in the CPI Index for that partial year (a 6 -month period) shall be calculated by comparing the CPI Index for November of the preceding year with the CPI Index for May of the preceding year (a 6 -month period). In no event, however, shall application of the CPI Index reduce the amount of the Public Benefit Fee (or unpaid portion thereof) below the amount in effect prior to any applicable Adjustment Date. Owner shall pay the Public Benefit Fee at the following time(s): (i) As to the residential dwelling units, at the issuance of the building permit for each individual residential unit; and (ii) as to the golf clubhouse and tennis clubhouse construction, at the time each building permit is issued to Owner or on Owner's behalf. Notwithstanding any other provision set forth in this Agreement to the contrary, during the Term of this Agreement City shall not increase the Public Benefit Fee except pursuant to the CPI Index as stated in this Section 3.1. The Public Fee ]benefit Fee shall be calculated based on the total square feet of construction for the proposed golf clubhouse and Owner shall not be entitled to any credit or offset to the ]Public Benefit Fee for any existing buildings or structures. Owner acknowledges by its approval and execution of this Agreement that it is voluntarily agreeing to pay the Public Benefit Fee, that its obligation to pay the Public Benefit Fee is an essential term of this Agreement and is not severable from City's obligations and Owner's vesting rights to be acquired hereunder, and that Owner expressly waives any constitutional, statutory, or common law right it might have in the absence of this Agreement to protest or challenge the payment of such fee on any ground whatsoever, including without limitation pursuant to the Fifth and Fourteenth Amendments to the United States Constitution, California Constitution Article I Section 19, the Mitigation Fee Act (California Government Code Section 66000 et seq.), or otherwise. In addition to any other remedy set forth in this Agreement for Owner's default, if Owner shall fail to timely pay any portion of the Public Benefit Fee when due City shall have the right to withhold issuance of any further building permits, occupancy permits, or other development or building permits for the Project. 3.2 Other Public Benefits. If the City has entered into a separate Development Agreement with The Newport Beach Country Club, Inc. (the "NBCC DA "), pertaining to the development of a golf clubhouse on the Property, this requirement to pay a Public Benefit Fee for the construction of the golf clubhouse shall not apply to Owner, unless Owner itself is seeking issuance of permits for the construction of the golf clubhouse. A10 -00773 v401.06. 11 FINAL 8 JAN .2 ZOSZ ANALYSIS REGARDING USE CONVERSION (PA2005- 140)��. On November 17, 2011, the City of Newport Beach ("City") Planning Commission ("Planning Commission ") unanimously approved applicant Golf Realty Fund's project, Project File No. PA2005 -140 (the "Project'), with a conversion of uses, and denied the applicant's request for a transfer of development rights. The proposed use conversion would convert 17 existing tennis courts on the site into 27 short-term lodging units (the "Bungalows'). The Planning Commission determined that this use conversion is consistent with the general plan, and recommended that the City Council approve the Project with the use conversion. This paper briefly analyzes some of the legal authority in support of the use conversion. I. SURMARY o The City has very broad discretion in interpreting its own general plan and other planning documents. o The City Council's determination that a project is consistent with the general plan "carries a strong presumption of regularity." o A court will only overturn the City Council's interpretation of its own general plan if "a reasonable person could not have reached the same conclusion." o The City Council is free to weigh and balance policy considerations when interpreting its general plan. o The use conversion is consistent with the City's general plan. o The general plan explicitly assigns development intensity to the tennis courts at Anomaly 46. o The City Council has discretion to determine how much development intensity to assign to the tennis courts for purpose of the conversion. o Because the Project is within a Planned Community District, it does not need to comply strictly with the zoning code. Nonetheless, the use conversion is consistent with the intent of the zoning code. o The use conversion will not set precedent for future projects. o Use conversions are discretionary—the City Council can continue to evaluate each proposed use conversion on its individual merits, and approve, deny, or condition it. o Anomaly 46 is unique. Anomaly 46 has the only tennis courts the general . plan grants development intensity to in the City. The general plan does not grant intensity that could be used for a conversion to uses like parks, open space, or golf courses. III, ANALYSIS A. The City Council has great discretion to interpret its general plan The City Council enjoys great discretion in interpreting its general plan and other planning documents. "A city's determination that a project is consistent with the city's general plan `carries a strong presumption of regularity. "" As such, where a city is interpreting and applying its own general plan, zoning ordinance, or other local laws to decide whether to approve a project or issue a permit, courts will only overturn the city's interpretation or application if, based on the information before the city, "a reasonable person could not have reached the same conclusion. "2 If the meaning of the general plan is "reasonably subject to debate," courts defer to a city's interpretation:3 [The] City Council's specific finding that the project is consistent with the City's general plan contains an implicit finding that the project is not prohibited by any element of the general plan such as the district plan; and that based on the evidence before the City Council, this finding is reasonable. This court will therefore defer to City Council's interpretation of its own document. Additionally, a city is free to weigh and balance policy considerations when interpreting its general plan:4 Because.policies in a general plan reflect a range of competing interests, the governmental agency must be allowed to weigh and balance the plan's policies when applying them, and it has broad discretion to construe its policies in light of the plan's purposes; a Clover Valley Foundation v. City of Rocklin (2011)197 Cal. AppAth 200, 238; see also Sequoyah Hills Homeowners Association v. City of Oakland (1993) 23 Cal.AppAth 704, 719 -720 C`.`It is, emphatically, not the role of the courts to micromanage these development decisions. Our function is simply to decide whether the city officials considered the applicable policies and the extent to which the proposed project conforms with those policies, whether the city officials made the appropriate findings on this issue, and whether those findings are supported by substantial evidence. ") (italics in original). No Oil, Inc. v. City of Los Angeles (1987) 196 Cal.App.3d 223, 243 (discussing the determination that a project was consistent with the general plan); McMillan v American Gen. Fin. Corp. (1976) 60 Cal.App.3d 175, 186. No Oil, Inc., supra, at p. 243. Eureka Citizens for Responsihle Government v. City ofEureka (2007) 147 Cal.App.4th 357, 374. reviewing court's role is simply to decide whether the public officials considered the applicable policies and the extent to which the proposed project conforms with those policies. [Citation.] Where there is conflicting evidence about whether a project is consistent with the general plan, the City should weigh it. But ultimately, it is in the City's sound discretion to. decide which evidence to credit. In Greenbaum v. City of Los Angeles, the Court of Appeal, in discussing whether a tract map was consistent with the general plan, noted that "there was conflicting evidence before the City Council and when conflicting evidence is present, `[it] is for the agency to weigh the preponderance of conflicting evidence.' [Citation.] "5 The Court of Appeal continued, "'[c]ourts may reverse the agency's decision only if, based on the evidence before the agency, a reasonable person could not have reached the conclusion reached by the agency. 05 Courts accord great deference to a local agency's determination of consistency with its general plan "because the body which adopted the general plan policies in its legislative capacity has unique competence to interpret those polices when applying them in its adjudicatory capacity. M. USE CONVERSION A. The use conversion is consistent with the general plan The use conversion is consistent with the general plan and not prohibited by any provision therein. As an initial matter, the general plan does not prohibit use conversions. Indeed, the City specifically provides for use conversions in the zoning code. As shown below, the use conversion would be consistent with other general plan policies. 1. The use conversion is consistent with the MU -113 designation The property, Anomaly 46, is designated Mixed -Use Horizontal 3 ("MU-11Y), which allows hotel uses:8 The MU -113 designation applies to properties located in Newport Center. It provides for the horizontal intermixing of regional commercial office, hotel, multi- family residential and ancillary commercial uses. Within the Tennis Club, residential uses may be developed as single family units. 5 Greenbaum v. City ofLos Angeles (1984) 153 Cal.App.3d 391, 407 -408. 6 Ibid. (Italics in original.) 7 Banker's Hill, Hillcrest, park West Community Preservation Group (2006) 139 Ca1.AppAth 249, 273 fn. 23. 8 General Plan at p. 3 -14. . Conversion of the tennis court development intensity to hotel rooms, a permitted use for the MU- H3 designation, is thus consistent with the general plan. 2. The general plan contains no overall cap on hotels units The general plan contains an overall cap of 450 residential units on Newport Center land designated as MU -H3.9 But it contains no such overall limit on hotel rooms. Even if it did, as the Planning Commission noted at the November 17, 2011 hearing, certain hotel rooms in Newport Center have been converted to other uses. Thus, even if there were an overall cap on hotel units, the proposed use conversion would remain within the cap. 3. The general plan contains no limits regarding floor area ratio or bulk and massing that a use conversion would exceed The general plan does not assign a floor area ratio to parcels that are designated MU -H3. Rather, as discussed further below, the general plan assigns development intensity to those parcels in Tables LUl and LU2. Similarly, the general plan does not contain restrictions regarding bulk and massing that would limit the use conversion. 4. The proposed use conversion is consistent with the site's development intensity The general plan establishes the development intensity for the site. Policy LU 6.14.2 is to "[p]rovide the opportunity for limited residential hotel, and office development in accordance with the limits specified by Tables LUl and LU2.s10 Table LUl lists the density/intensity for hotel as . "65 rooms in addition to those specified in Table LU2," and for "Other. Nonresidential," "as specified by Table LU2.s11 Table LU2, in turn, identifies two development limits for Anomaly 46: 3,725 square feet and 24 tennis courts. So the general plan expressly identifies the 24 tennis courts as part of the development limit for Anomaly 46, and as part of the density/intensity for Anomaly 46. The tennis courts would be non - residential intensity, since they do not consist of homes. The general plan does not assign numerical square footage to the tennis courts. But clearly, since the tennis courts are listed as intensity, they do not have an intensity of zero. For the purposes of converting the tennis courts into other uses, it is up to the City's discretion to determine what intensity to assign to the tennis courts. And this is exactly what the City has done for other uses with intensity, but no square footage, identified in the general plan. For example, the general plan lists hotel rooms, theater seats, and tennis courts as intensity on Table LU2 with no explicit square footage. Despite the general plan's silence on General Plan at p. 3 -14. 10 General Plan at p. 3 -97. 11 General Plan at p. 3 -14. 4. this point, the City has exercised its discretion to determine that hotel rooms and theater seats may be converted to other uses and have square footage associated with them. The zoning code states that: 12 For purposes of this analysis, theater use shall be allocated 15 square feet per seat. Hotel use shall be allocated the number of square feet per room at which it is included in the General Plan. When the General Plan does not specify intensity for hotel rooms, it shall be as determined by the Director. The City has the discretion to do the same with these tennis courts. Nothing in the general plan suggests that the tennis courts should be treated differently than every other use and assigned an intensity of zero square feet.. Quite the opposite, the general plan lists the tennis courts as intensity: Interpreting the tennis courts as having no intensity, and thus no square footage available for conversion, would be contrary to the cannons of statutory construction, including the cannon to "give effect and significance to every word and phrase of a statute.s13 Assigning the tennis courts an intensity of zero would render Table LU2 a nullity— clearly not something the City Council intended. Regulation tennis court dimensions are 78 feet by 36 feet, or 2,808 square feet. To remain conservative in the analysis below, the square footage number used includes only the court dimensions and does not include edge area and areas for observation within the fenced tennis court. The City could specify that each tennis court has a development intensity square footage of 2,808. The Tennis Club Site (Tennis Clubhouse & Courts, Bungalows & Villas) Component Floor Areas . ft. Component Floor Areas . ft. Clubhouse 3,725 Clubhouse 3,725 24 Tennis Courts 67,39214 7 Tennis Courts9s 19,956 27 Bungalows 28;219 Bungalow Spa 7,490 Concierge &Guest Meetin Facll' 2,170 12 Newport Beach Zoning Code § 20.46.040(D). 13 People v. Guzman (2005) 35 Cal.4th 577, 588. 14 2808 sf/ court. 1s 18 of 24 courts will be demolished; and one new stadium court will be constructed. 5 5 SFR N/A Totals . ft 1 71,117 1 61,560 As shown in the table above, the proposed Project will reduce the existing floor area of the site's Tennis Club facility by approximately 10,000 square feet. The Project is therefore consistent with the development intensity of the site. The five single family residences are not included in the table calculating square footage because their development rights are being "drawn from the remaining dwelling units that are allocated for the Newport Center/Fashion Island Statistical Area.s16 11V. THE USE CONVERSION IS CONSISTENT WITH THE ZONING CODE The Project is located in a Planned Community District, which is essentially custom zoning. Both the current and earlier versions of the zoning code allow Planned Community District development plans to conflict with and take precedence over the zoning code.17 So the use conversion does not need to comply with the zoning code's specific conditions. Nonetheless, the use conversion complies with the intent of the prior version of the zoning code, which the Project is subject to. The prior version of the zoning code specifically allowed conversions of uses that would not cause traffic impacts or that were from uses that generate more traffic to uses that generate less. 18 Similarly, the existing version of the zoning code allows use conversions that will not cause unacceptable traffic impacts.19 Additionally, the prior zoning code states that "Any permitted or conditionally permitted use authorized by this code and consistent with the General Plan land use designation or designations for land within the PC District may be included in an approved PC development plan .',20 Thus, converting the general plan intensity for tennis courts into hotel uses is consistent with the intent of the prior version of the zoning code. V. THE USE CONVERSION WOULD NOT SET PRECEDENT FOR FUTURE PROJECT'S For at least three reasons, the use conversion of the tennis courts at Anomaly 46 would not set precedent for the entire City. 16 See Staff Report for Newport Beach Country Club (Aug. 4, 2011) p. 10. 17 See Newport Beach Zoning Code (Oct. 26, 2010) Chapter 20.12.020, subd. D; see also Newport Beach Zoning Code (Feb. 21, 2008) Chapter 20.35.040. is Newport Beach Zoning Code (Feb. 21, 2008) Chapter 20.63.050(B). 19 Newport Beach Zoning Code (Oct. 26, 2010) Chapter 20.26.040(D). 20 Newport Beach Zoning Code (Feb. 21, 2008) Chapter 20.35.030(B). RE A. The City already allows use conversions The City already allows use conversions under the zoning code, and the City has approved use conversions in the past. So the proposed use conversion is not a new mechanism that the City has never used before. The key difference between the proposed use conversion and previous use conversions is that the proposed use conversion would convert the development intensity that general plan Table LU2 gives to the tennis courts to another use, and other use conversions involved other uses. But in its essential elements, the proposed use conversion is similar to the other use conversions the City has approved. B. Use conversions are discretionary _ The City has broad discretionary powers. The zoning code gives the City wide latitude in approving, disapproving, or conditioning discretionary land use approvals.21 Whether to approve a use conversion is entirely within the City's discretion. Similarly, Planned Community District Development Plans are discretionary. 22 Thus, the City will retain its right to approve or deny each use conversion on its individual merits. Approving the proposed use conversion does not restrict the City's discretion for future use conversions. C. Anomaly 46 has unique characteristics The use conversion would not set precedent for future projects because of the characteristics of the particular property involved. The general plan grants development intensity for the 24 tennis courts to Anomaly 46. But the general plan does not grant development intensity to any other tennis courts in the City. And Anomaly Table LU2 does not present other situations that are amenable to a use conversion like that proposed for the Project. The Anomaly Table lists three land uses that are not designated with specific square footage: hotel rooms, theater seats, and tennis courts. These items are listed in the column "Development Limit (Other)" in the Anomaly Table. As discussed above, the City already allows the conversion of hotel rooms and theater seats to other uses. Anomaly Table LU2 does not grant development intensity to uses like parking lots, open space, or golf courses. So the proposed use conversion does not set any precedent for those types of uses. 21 Newport Beach Zoning Code § 20.10.040(C) ("When this Zoning Code provides for discretion on the part of a review authority, the discretion may be exercised to impose more or less stringent requirements than required by this Zoning Code and may allow deviations from the requirements in order to promote orderly land use and development, environmental resource protection, and the other purposes of this Zoning Code.' ). 22 Newport Beach Zoning Code Chapter 20.56. 7 Items 14 & 15 Exhibits A & B of PC Texts Item 14: CC 13 Exhibit Item 15: CC] 4 19 Exhibit B �4 5 c �Q h O 2 4:F 4 v0�� G P� �p Golf Course � 5 �Y Golf Clubhouse 1-1449 A &Parking Lot tTy� 0'Sy! BONNIE Doome T.. oR 6%y' 1�R LU a FoR �z Q Q a Q z a n Tennis Clubhouse, Bungalows & Villas d S ` •yam'+., yy 20 SaN aFMEI 4 W y x rn ca 4$ v 0 A m 0 A P4 0 899k "RUE IUcp AFl R ELIDA PRINTED." �� f-a MICHAEL ?_ CUPERO, ESQ. January 24, 2012 Honorable Council Members, Newport Beach City Council C/O Leilani Brown, City Clerk CITY OF NEWPORT BEACH 3300 Newport Boulevard Newport Beach, CA 92663 BY ELECTRONIC MAIL ONLY Re: Tanuary 24.2012 City Council Items 14 and 15: Golf Realty Fund (PA 2005 -140) and Newport Beach Country Club, Inc. (PA2008 -152) Dear Honorable Councilmembers: Although documentation confirming the shared ownership status of the properties affected by above - referenced projects ( "Properties ") has already been lodged with the City (and is a matter of public record), I thought it would be prudent to provide with you relevant portions of the recorded Owner's Agreements for both projects for your consideration and file. As reflected herein, fifty percent of each of the Properties is owned by entities other than Golf Realty Fund. These entities, including the Fainbarg Family Trust, Mira Mesa Shopping Center -West, LLC, and Mesa Shopping Center East, LLC, are managed by my clients, Mr. Elliot Feuerstein and Mr. Irving Chase. Thank you. Sincerely, vm�� Michael Recupero, Esq. Ecc: Mr. Elliot Feuerstein and Mr. Irving Chase Kimberly Brandt Leonie Mulvihill, Esq. 31877 Del Obispo St. - Suite 204 • San Juan Capistrano, CA 92675-3228 Ph: 949-429.6300. • Fax: 949.429.6303 0 Hill Properties One Upper Newport Plaza Newport Beach, CA 92660 THE QRIQ� Qp THIS UQCOHENT !?A5 kEGQRi2EO O?l it -auN -1 73, [OCOHEItI tabs ga- m3470. LEE a. BRANCH, COVITY ftEC0.°DER QRaNOE COUNTY RECOBTER15 OFFICE as n � O t:l ,ky S � O n =. S5 .'A s AGREEMENT BETWEEN REAL PROPERTY OWNERS NEWPORT BEACH COUNTRY CLUB Newport Beach, California This Agreement Between Real Property Owners ( "Agreement ") is entered into by and between O Hill Properties, a California limited partnership ( "0 Hill"), the Fainbarg Family Trust dated April 19, 1982 ( "FFT ") and Mesa Shopping Center -Fast, a California general partnership ( "Mesa "). O Hill, FFT and Mesa are sometimes referred to singularly as an "Owner" or "party" or collectively as the "Owners" or "parties ". RECITALS A. The Owners desire to own, lease, manage, maintain, refinance, encumber and hold for investment, as tenants in common, that certain real property comprising' approximately 132 acres with improvements thereon, commonly identified as Newport Beach Country Club located at 1600 East Pacific Coast Highway, in Newport Beach, California and legally described in Exhibit "A" attached (the "Property'). B. The Owners have discussed the co- ownership of the Property and have concluded that to avoid conveyancing and ownership problems created by death, marital or other dissolution, bankruptcy or insolvency, disputes and the like, it is in the best interest of each Owner that the holding of the Property be governed by an agreement which defines the rights and duties of each Owner in the form of this Agreement. C. The Owners also believe it necessary and appropriate to have one Owner be the managing Owner for purposes of accounting and administration. NOW, THEREFORE, in consideration of the foregoing Recitals and the conditions and covenants hereinafter contained, the Owners hereby agree as follows: D' At this time, Exhibit "B" attached hereto and by this reference incorporated herein reflects the ownership interests in the Property. E. It is the purpose of this Amendment for Mira Mesa -West and NBCC Ltd to assume and agree to be bound by the terms and conditions of the Original Agreement. NOW, THEREFORE in consideration of these Recitals and the conditions and covenants hereinafter contained, it is agreed as follows: 1. Mira Mesa -West and NBCC Ltd hereby acknowledge having received a copy of the original Agreement, having read the Original Agreement and agree to assume the duties imposed upon owners of the Property thereunder and to be bound by each and every term and condition of the Original Agreement, 2. Except as amended hereby, the Original Agreement shall remain in full force and effect. EXECUTED as of March 12, 1993, at Newport Beach, California. Owners: 0 Bill Properties, a California limited partnership By: Robert 0 HlU , its General Partner The Fainbarg Trust, dated April 19, 1982 B y CU&11) Allan Fainbarg, Trustee Mesa Shopping Center -Fast A California General Partnership By: t}--- Amol D. Feuerstein Managing General Partner By: �.rx,C,etice�a sal . Elliot Feuerstein Managing General Partner Mira Mesa Shopping Center -West A California General Partnership By: Gd_ GrC- tfi! . r, z�@2 By: �" R, , ' �a L- Sara Fainbarg, Trustee „/ Arnold D. Feuerstem Managing General Partner By: 0- � rw. Elliot Feuerstein Managing General Partner O Newport Beach Country Club$ a California limited partnership By: 0 Hill Properties, a California limited partnership Its General Partner General Robert 0 i V E%MIT "All Parcel 1 of Parcel Map No. 79 -704, in the City of Newport Beach, County of Orange, State of California, as per Map filed in Book 152, Pages 17 to 20, inclusive, of Parcel Maps, in the office of the County Recorder of Orange County. Parcel 3 of Parcel Map No. 79 -704, in the City of Newport Beach, County of Orange, State of California, as per Map filed in Book 152, Pages 17 to 20, inclusive, of Parcel Maps, in the Office of the County Recorder of Orange County. 0 Tull Properties One Upper Newport Plaza Newport Beach, CA 92660 Attn: General Counsel Allan and Sara Fainbarg, Trustees of The Fainbarg Family Trust dated April 19, 1982 890 W. Baker Costa Mesa, CA 92626 Mesa Shopping Center -East c/o Arnold Feuerstein 2293 W. Ball Road Anaheim, CA 92805 Mira Mesa Shopping Center -West c/o Arnold Feuerstein 2293 W. Ball Road Anaheim, CA 92805 With a copy of any notices to: Mesa Shopping Center -East Mira Mesa Shopping Center -West clo E11iot Feuerstein 8294 Mira Mesa Blvd. San Diego, CA 92126 Newport Beach Country Club, a California limited partnership One Upper Newport Plaza Newport Beach, CA 92660 Attn: Robert 0 Hill 25% 25% 15% 10% 25% ®� ;AAL RECORDING REQUESTED BY AND TIM N f- I 10,3( }ti661 WHEN RECORDED RETURN TO: ;_ 0 Hill Properties recorded in Uffi_ial Record= One Upper Newport Plaza of Orause County, C lifonli.a Newport Beach, CA 92660 Lee A. Ermch" County Recorder i 3 ?e i of it i Q55i (Spat AGREEMENT BETWEEN REAL PROPERTY OWNERS BALBOA BAY CLUB RACQUET CLUB Newport Beach, California This Agreement Between Real Property Owners ( "Agreement ") is entered into by and between 0 Rill Properties, a California limited partnership ( "0 Hill"), The Fainbarg Trust dated April 19, 1982 ( "TFT "), Mesa Shopping Center -East, a California general partnership (Mesa - East), Mira Mesa Shopping Center -West, a California general partnership ( "Mira Mesa - West"), and Newport Beach Country Club, a California limited partnership ( "NBCC Ltd "). 0 Hill, TFT, Mesa -East, Mira Mesa -West, and NBCC Ltd are sometimes referred to singularly as an 'Owner" or "party" or collectively as the "Owners" or "parties ". RECITALS A. The Owners desire to own, lease, manage, maintain, refinance, encumber and hold for investment, as tenants in common, that certain real property comprising approximately 6,099 acres with improvements thereon, commonly identified as Balboa Bay Club Racquet Club Iocated at 1602 East Pacific Coast Highway, in Newport Beach, California and legally described in Exhibit "A" attached (the "Property "), B. The Owners have discussed the co- ownership of the Property and have concluded that to avoid conveyancing and ownership problems created by death, marital or other dissolution, bankruptcy or insolvency, disputes and the like, it is in the best interest of each Owner that the holding of the Property be governed by an agreement which defines the rights and duties of each Owner in the form of this Agreement, C. The Owners also believe it necessary and appropriate to have one Owner be the managing Owner for purposes of accounting and administration. 6/10/93 EXIIIIIIEIIT "Av LEGAL DESCRIPTION OF THE PROPERTY Parcel 1: That portion of Block 93 of Irvine's Subdivision in the City of Newport Beach, County of Orange, State of California, as per Map recorded in Book 1 Page 88 of Miscellaneous Maps in the Office of the County Recorder of said County described as follows: Lot A as shown on that certain Parcel Map filed October 10, 1967 in Book 10 Page 20 of Parcel Maps in the Office of the County Recorder of said County, and Parcels 1, 2 and 3 as shown on that certain Parcel Map filets February 11, 1977 in Book 92 Pages 13 and 14 of Parcel Maps, in the Office of the County Recorder of said County. Parcel 2: As easement for ingress and egress over the most Southerly 190.00 feet of Parcel 1, in the City of Newport Beach, County of Orange, State of California, as shown on that certain Parcel Map filed October 10, 1967 in Book 10 Page 20 of Parcel Maps, in the Office of the County Recorder of said County. A EXIIIBIT "Bu OWNERSIHIP INTERE ST IN THE PROPERTY Name and Address of Owner Interest in Property Allan and Sara Fainbarg, Trustees 257a of The Fainbarg Trust dated April 19, 1982 890 W. Baker Costa Mesa, CA 92626 Mesa Shopping Center -East 15% c/o Arnold Feuerstein 2293 W. Ball Road Anaheim, CA 92805 Mira Mesa Shopping Center -West 10% c/o Arnold Feuerstein 2293 W. Ball Road Anaheim, CA 92805 With a copy of any notices to: Mesa Shopping Center -East c/o Elliot Feuerstein 8294 Mira Mesa Blvd. San Diego, CA 92126 Newport Beach Country Club 25% One Upper Newport Plaza Newport Beach, CA 92660 Attn: Robert 0 Hill 0 Hill Properties 25% One Upper Newport Plaza Newport Beach, CA 92660 Attn: Robert O Hill M ig RECEIVED AM MICHAEL RECUPE `E(3 10' 40 C__C7 OF January 19, 2012 Honorable Council Members, Newport Beach City Council C/O Leilani Brown, City Clerk CITY OF NEWPORT BEACH 3300 Newport Boulevard Newport Beach, CA 92663 BY ELECTRONIC MAIL AND U.S. POST (CERTIFIED MAIL) Re: Tanuary 24, 2012 City Council upcoming items Newport Beach Country Club, Inc. (PA2008 -152) and Golf Realty Fund (PA 2005 -140) Dear Honorable Councilmembers: This letter is written on behalf of one -half of the fee ownership of the Newport Beach Country Club and Tennis Club' (the "Properties ") which you are considering for entitlement on Tuesday, January 24, 2012. Newport Beach Country Club (PA2008 -152). We reiterate our support for the Newport Beach Country Club, Inc. plan as a reasonable exercise of our tenant's authority to improve the leasehold interest. The architecture, design and layout of the plan are well thought out, and accommodate their operations well. We are supportive of the Planning Commissions' approval of the narrowed, one- way, drive aisle parallel to Pacific Coast Highway ( "PCH ") which creates an expanded landscaped buffer and further separates the Club parking lot from PCH. As the testimony at the Planning Commission illustrated, this feature preserves critical longstanding benefits for both the tenant and the adjacent nursery who rely on the access for their business' success. Lastly, we have heard no cogent reason from Mr. OHill as to why he was attempting to entitle a separate clubhouse on the Country Club site, to the detriment of our tenants. t The Fainbarg Family Trust (managed by Irving Chase), the Mira Mesa Shoppping Center -West, and the Mesa Shopping Center -Fast (managed by Elliot Feuerstein), collectively own 50% of the Properties. 31877 lh_! dbispnSt. • Suitc 204 • Sam Juan Capistrano. CA 92675-32=8 Ph: 949.420.6300 • F91x: 949.429.6303 City of Newport Beach January 19, 2012 Golf Realty Fund (PA2050140). This project has been processed to the exclusion of my clients. As the City file will reflect, my clients maintain that: a) Robert OHill, or his associated entities, including Golf Realty Fund, do not have the unilateral authority to go forward with this application, or entitle this property without the consent or input of the co- owners; and, b) Robert OHill has been removed as the Managing Owner of both NBCC and Tennis Club Properties. (Mr. OHill is contesting his removal.) Both of these topics are the subject of litigation scheduled to commence by arbitration on April 2, 2012. We would, once again, ask that the City consider postponing a decision on this project until these issues get worked out. In the event the City is inclined to push forward we, again, demand that any encumbrance on the Property, including the Development Agreement, require the consent of all the owners of the property. For reasons that are not understood, the Development Agreement for the Tennis Club property was changed between the date of Planning Commission approval and the new proposed version to delete important protections for my clients — essentially paving a path for Robert OHM to unilaterally encumber the land without the owners' written consent. We believe this is inconsistent with the law, and an appropriate topic of inquiry at the upcoming hearing. Thank you for your consideration. Sincerely, va)-� Michael Recupero, Esq. Ecc: Elliot Feuerstein Irving Chase John Olson, Esq. Kimberly Brandt Leonie Mulvihill, Esq. PAGE MICHAEL RECUPERO, ESQ. i • RECEIVED 2012 JAN 18 AN 10: 44 Try U Y CLERIC CI P anuary 13, 2012 C, E_k Office of the Mayor, Mayor Nancy Gardner City of Newport Beach 3300 Newport Boulevard Post Office Box 1768 Newport Beach, California 92658 -8915 Dear Mayor Gardner, The Newport Beach Country Club, Inc. is proposing to replace the aging Newport Beach County Club golf clubhouse. Our proposal is scheduled for the January 241i City Council hearing and we would like to offer you an opportunity to meet with the Newport Beach Country Club project team before the January 241i hearing so that we can brief you on our proposal. We have been working with the City of Newport Beach Planning staff for over three years and were very pleased to receive a recommendation for approval of our project by City staff and then to receive the November 171i Planning Commission's recommendation that the City Council also approve our plans. Our plan for the reconstruction of our clubhouse at the Newport Beach Country Club is straightforward. However, we would appreciate the opportunity to provide you a briefing on our project because of the complexity created by a competing application filed by Golf Realty Fund, Inc. which is also scheduled for City Council consideration on January 241i. We are happy to have the briefing at the Newport Beach Country Club or at a location of your choosing. We would also suggest briefings in groups of two or three Council Members if that is agreeable. We would like to set the briefings for early next week as I will be out of town next Friday. I look forward to hearing back from you. Thank you, David C. Wooten, Chief Executive Officer Newport Beach County Club 949 - 630 -4505 T if r NLNNTP )Rr BEACH C 6 C S T R 1 C L L R 1600 East Pacific Coast Highway • Newport Beach, California 92660 • (949) 644 -9550 • Fax(949)644-5057 www.newportbeachcc.coni ArNsirwg Garden Centers 'An Employee -Owned Company" 2200 E. Route 66, Suite 200 Glendora, CA 91740 -4673 (626) 914 -1091 Fax (626) 335 -0257 January 12, 2012 Newport Beach City Council Re: Newport Beach Country Club Improvements Affecting Armstrong Garden Centers Located at 1500 East Coast Hwy., Newport Beach, CA 92660 Dear Esteemed Council Members: I am the Vice President of Operations for Armstrong Garden Centers, including the location immediately north of Newport Beach Country Club. I respectfully ask for your - support of the site plan approved by the Newport Beach Planning Commission on November 17, 2011. The approved site plan includes a critical access way to our Garden Center. I have had many opportunities to see the financial impact of temporary access closure to our garden centers. Unfortunately, they typically result in a 25% decline in our revenue. While these temporary losses in revenue can, and must, be absorbed, a permanent loss in revenue cannot be. Our customers insist on convenience and a visit to our Newport Beach location will no longer offer that convenience without access to a traffic signal that allows a left or right turn onto Coast Highway. Another major concern that outweighs convenience is safety. We receive multiple deliveries on a weekly basis and due to the high rates of speed motorist maintain on this stretch of Coast Highway, there is a great safety concern with delivery trucks attempting to merge in to oncoming traffic from either of our driveways. Access to the traffic signal at the entry to the Country Club eliminates these safety concerns and provides a safe right -of -way for delivery trucks, our customers, and the residents of Newport Beach. We enjoy doing business in Newport Beach, but if we were to lose this access way, the loss of revenue, coupled with the potential safety issues would make it impossible for Armstrong Garden Centers to continue to operate in Newport Beach. Thank you for your consideration, Ian Hydoski Vice President of Operations Armstrong Garden Centers Inc IH:eam IBC PLAN GENERAL PLAN VIOLATION Proposed IBC Golf Clubhouse exceeds the recent voter approved General Plan by 20,000 sq. ft. or 63% Proposed IBC Golf Parking Lot is 166,354 sq. ft. of asphalt, 150% larger than the Pro Owner Plan. • - • 97e. ed IBC Clubhouse frontage and d walls eliminate virtually all views olf course from the PCH and Entry. Proposed IBC Clubhouse building is 140' wider and 1 00' feet closer to PCH in comparison to the Property Owner Plan. lo[ 'jREEN Co 11 0 4\e Se 211 ► M I IBC Proposed I Parking Lot I IBC Proposed —� lMy —,y: ; Loading Area 11 ►1 1 ►1 / 2, 00 Property Owner Plan 1 f5ri Greenskeeper Area ,I __ ► 1 r o ..' Y 1 Mainenance Bldg. 8,565 sq ft Proposed IBC Plan crowds the existing 16th "T" box. Proposed IBC Clubhouse is 100 ft closer and 120 ft wider than the Property Owner Plan as viewed from PCH. ARMSTRONGS NURSERY EXHIBIT 1 OF 5 1 1� �I X 260' , P — 380' \ R E i \Go \Cour= 8 , -IKr perly Owner s 7 Footprint Golf Clubh use OR r• . ft f♦ \ IBC Clubhouse Footprint 30,693 sq ft i 300' I t 1 1 t I 1 I t _ Extent of IBC 1 proposed AsphaMll I W IBC seMae Owl ► Vehicle Access r Extent of IBC proposed — ApVing �1 �I Property Owner Plan has 78,970 sq ft or Extent of IBC 250% more landscaping than the IBC Plan. Propos , ed a This significantly enhances views from Irvine Terrace, PCH and exiting the Country �� *. �`O Club. �� Property Owner Golf Clubhouse has a 400 foot setback from PCH protecting the existing golf course views and providing a strong Entry statement while preserving existing views to Open Space. Property Owner Golf Parking Lot's interior medians and generous landscaped setbacks reduces the visual dominance of the parking lot and creates a significant landscape corridor adjacent to PCH 1 1 I 1 t 1 I 1 I 1 1 1 1 1 r RPM of IBC pro d Parking Lot & Access Road _ i r PACIFIC COAST HIGHWAY CLUB D m o` d N 0 r A CTnIF CIITP. UnITCIF �C. PA- DVIkTC` Tnrr ('lIAAnAnTCCNkTC r-V® The proposed IBC plan eliminates 70% of public view of the open space golf course. Public banquet facilities with large prefunc- tion areas not typical and inconsistent with the private golf clubhouse. IBC's proposed public banquet facilities and prefunction areas are in conflict with exclusive, private golf club and golf member and will create traffic. The proposed IBC Clubhouse is 102 ft closer to PCH and 120 ft wider than the Property Owner's clubhouse. 1 To IBC Maintenai...� Bldg Footprint 8,565 sq ft 60 Feet Closer to the 16th Tee Box 1 15th Green i 18th Green Property Owner — Golf Clubhouse Footprint 26,044�+dt- \0C eient of Gradl rg� i i • - I 1 The proposed IBC parking lot has been { ex anded to the west and will re uire the rmoof existing trees. The proposed IBC Plan increases the number of parking spaces from existing and increases the asphalt area maintaning a swap meet appearance to the parking lot. Long north /south rows of parking magnify the shopping center appearance of the parking lot. M. Practice _f_f Green �OF 7 a 00 G� All r (� r#lpd .,, Members / ��.:� Cntry \ t ws ° \ s, Given to Golf Entry \ F- 17 Steps Extent oJ,Properfy Banquet 111 0' Owner's Proposed Entry ...... Parking Lot 102.87/ Retaining Wall Retaining Wall ; •. 10 1M.- Mlivil. 300'. The proposed IBC Plan removes existing significant I open space turf at Entry and M M ' n front of Visitor Serving use. i ' Frontage road retention creates significant traffic hazards and visual impacts along 65 If of Pacific Coast Highway. Frontage Easement terminated in 1997 per Records Document #19970630399 PACIFIC COAST HIGHWAY Identical straight, narrow landscaped setback along PCH frontage as exists EXHIBIT 2 OF 5 TRC k PRCIPFPTV n-XA1KT1PR'c PT A ITT CMAPAUTCCIM �® PROPERTY OWNERS PLAN AREAA 18th GREEN x0000 I' /Ne, _ 75 _ _�— 1 IBC Proposed ' 1 Parking Lot \ i 1 —} Turf Removed IBC Proposed Loading Area � 1 1 Property Owner Pla Greenskeeper Area 1 alnenance Bldg. 8,565 sq ft j _ � •rt t PROPERTY OWNERS PLAN AREA B I I\ m i; a n b 71-00 . %\ 1 � 1 1 1 1 1 1 I I I 1 I I 1 pr 1 KEY MAP -- - - --�A I I I I I I I I I I I I I I V I 43.394 sq ft I r I Open Space j V L- -- - - --- .lam *• .. +•��.� ^; t S% 44. _ d D d N 7 O r a A PACIFIC COAST HIGHWAY B I I I I I I I I I I y I I I Property Owner design visually draws the golf course toward the entry by providing generous open spaces. Clubhouse Drive ends in a T- intersection with dramatic views of open space, Golf Course and Clubhouse. Additionally, this open space area also creates pleasing views from the Bungalow units to the Golf Course Clubhouse, and ocean views. Avery gracious open space area has been designed to create a prestigious approach to the Golf Clubhouse. The landscaped median helps frame Golf and Clubhouse views. EXHIBIT 3 OF 5 BLOW UP COMPARISONS NFWPORTRFAC'HCYl1TNTRYC'T1IR 4® 124' + /- closer to Coast Highway 1, .00 aooww Mw% *Am 10ft offill I , IBC Proposed Clubhouse Golf Club Parking Lot _ _ Existing Grade r Grade 10 ft higher (17 steps) than Golf Parking Lot Truck Type Rear Dump Truck Bottom Dump Truck 'Wards Per Truck 10 cu yds 14 cu yds Total Truck Trips 3,906 2,730 Daily Trips - Assumes 15 Trucks, 4 cycles per day 60 60 Total Work Days 65 47 Total Months 3.25 2.35 EXHIBIT 4 OF 5 GOLF COURSE I RP RKiNG COAST HIGHWAY I I, t GOLF CLUBHOUSE SITE SECTION COMPARISONS NEWPORT BEACH COUNTRY CLUB ® updated 10/3/2011