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HomeMy WebLinkAbout14 - The Residences at Newport Place Appeal (PA2014-150)CITY OF NEWPORT BEACH City Council Staff Report TO: FROM: PREPARED BY: PHONE: July 26, 2016 Agenda Item No. 14 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Kimberly Brandt, Community Development Director - 949-644-3232, kbrandt@newportbeachca.gov Rosalinh Ung, Associate Planner, runq(D_newportbeachca.gov 949-644-3208 TITLE: The Residences at Newport Place Appeal (PA2014-150) Located at 1701 Corinthian Way, 1660 Dove Street, 4251, 4253, and 4255 Martingale Way, and 4200, 4220, 4250 Scott Drive ABSTRACT: An appeal of the Planning Commission's June 23, 2016, decision to deny Planned Development Permit No. PL2014-001, Lot Merger No. LM2014-003, and Affordable Housing Implementation Plan No. AH2O15-001. The appeal was filed by the applicant who is seeking approval to redevelop a 5.70 -acre property with a mixed use project consisting of 384 residential units and 5,677 square feet of retail. The project site is located in the Airport Area within the Newport Place Planned Community, at the northeast corner of the intersection of Dove Street and Scott Drive, as shown on the vicinity map (Attachment CC1). RECOMMENDATION: a) Conduct a de novo public hearing; b) Determine that the action of referring the project to the Planning Commission is not a project as defined by the California Environmental Quality Act (CEQA); and c) Refer the application on appeal to the Planning Commission for further consideration due to changes proposed by the applicant. BACKGROUND On June 9, 2016, the Planning Commission conducted a noticed public hearing and, following receipt of public comments and deliberation, voted 4-1 (2 absent) to deny the project. Resolution No. 2019 denying the project was adopted unanimously on June 23, 2016, and it includes the written findings for the action (Attachment CC2). The Planning Commission expressed many concerns and principal among them were: 14-1 The Residences at Newport Place Appeal July 26, 2016 Page 2 • Encroachments within minimum building setbacks; • Exceedance of the maximum building height standard; • Waiver of the park dedication; • Public open space design and limits on public access; • Project integration with surroundings; • Limited amount of commercial space proposed; and • Parking Following the public hearing, the applicant (appellant) met with staff to discuss the following project changes in response to the Planning Commission's decision: • Compliance with minimum setback requirements; • Compliance with maximum building height standards; • Dedication of the minimum required 0.5 -acre neighborhood park which will reduce the number of units proposed from 384 to 350 units; • Increased on-site retail square footage. • Increased number of parking spaces. On July 7, 2016, the applicant filed an appeal (Attachment CC3). However, plans reflecting the changes have not been submitted. Pursuant to Zoning Code Section 20.64.030.D.2 (Filing and Processing of Appeals and Calls for Review), if new or different evidence is presented on appeal, the City Council may refer the matter to the previous review authority for further consideration. Given the fact that the applicant is proposing to make significant changes to the project, staff recommends the City Council refer the modified project to the Planning Commission for consideration. The Commission would hold a public hearing on the revised project and provide a recommendation for future City Council consideration. If the City Council does not refer the application to the Planning Commission, the City Council has the following options: Should the City Council choose to act on the original project, staff recommends continuing the hearing to August 9, 2016. Should the City Council choose to act on the revised project, staff recommends continuing the hearing to September 27, 2016, to allow staff time to analyze the revised project and prepare a staff report and recommendation. Attachment CC4 is written correspondence received for the appeal. FUNDING REQUIREMENTS: There is no fiscal impact related to this item. 14-2 The Residences at Newport Place Appeal July 26, 2016 Page 3 ENVIRONMENTAL REVIEW: Should the City Council refer the matter back to the Planning Commission, this action would not be subject to the California Environmental Quality Act (CEQA). Environmental review will be in accordance with CEQA when taking final action. NOTICING: Notice of this hearing was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights-of-way and waterways) including the applicant and posted on the subject property at least 10 days before the scheduled meeting, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment CC1 - Vicinity Map Attachment CC2 - Planning Commission Resolution No. 2019 Attachment CC3 - Appeal Attachment CC4 - Correspondence 14-3 Attachment CC1 Vicinity Map 14-4 } ` r ! �` f J' � 4 !.y} �9U} - ~ "4 Wx !1 .. '� e� j/J 3•.1. 1~ IL NN" W F f dF d '•. ~ Y a Y Y 1 � r , VII 'ter I, y '� r y, ' Via, '�� , '�,—•�"� ! • a I' ry �f _ :.. M1x x 4 Attachment CC2 Planning Commission Resolution 2019 RESOLUTION NO. 2019 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH DENYING WITHOUT PREJUDICE PLANNED DEVELOPMENT PERMIT NO. PL2014-001, LOT MERGER NO. LM2014-003 AND AFFORDABLE HOUSING IMPLEMENTATION PLAN NO. AH2O15-001 FOR THE RESIDENCES AT NEWPORT PLACE PROJECT LOCATED AT 1701 CORINTHIAN WAY, 4251, 4253 AND 4255 MARTINGALE WAY, 4200, 4220 AND 4250 SCOTT DRIVE AND 1660 DOVE STREET (PA2014-150) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1, STATEMENT OF FACTS. 1. An application was filed by Newport Place Residential, Inc., with respect to property located at 1701 Corinthian Way, 4251, 4253 and 4255 Martingale Way, 4200, 4220 and 4250 Scott Drive and 1660 Dove Street and legally described as Lot 1 of Tract 7770, and Parcels 1 and 2 of Book 53, Page 13 of Parcel Maps requesting an approval for the development of a mixed use residential project. The following approvals are requested or required in order to implement the project as proposed: a. A Planned Development Permit pursuant to Section 20.52.060 of the Newport Beach Municipal Code to allow the construction of 384 multi-fami[y residential units and 5,677 square feet of retail use with an adjustment request of the development standards to allow: The maximum building setback encroachments into the required 30 -foot street setback of 12 feet on Corinthian Way, 10 feet on Martingale Way, 8 feet on Dove Street and 6 feet on Scott Drive. The residential buildings to exceed the 55 -foot height limit by 3 feet for the main portion of the buildings and 28 feet for the architectural elements. b. A waiver of General Plan Land Use Policy 6.15.13 for relief from the requirement of a minimum 0.5 -acre neighborhood park to the City, and to accept a fee payment equal to the value of the 0.5 acre of parkland established by Ordinance No. 2007-30. C. A Lot Merger pursuant to Section 19.68.030(H) of the City of Newport Beach Municipal Code (NBMC) to combine three parcels into one. d. An Affordable Housing Implementation Plan to specify how the proposed project would meet the City's affordable housing requirements pursuant to Part III (Residential Overlay) of the Newport Place Planned Community and NBMC Chapter 20.32 (Density Bonus). 14-7 Planning Commission Resolution No. 2019 Paqe 2 of 6 2. The subject property is located within General Commercial Site 6 of the PC 11 (Newport Place) Planned Community Zoning District and the General Plan Land Use Element category is Mixed -Use District Horizontal -2 (MU -1-12). 3. The subject property is not located within the coastal zone. 4. On March 3, 2016, the Planning Commission held a study session for the proposed project and associated Mitigated Negative Declaration in the Council Chambers, located at 100 Civic Center Drive, Newport Beach. Staff and the applicant presented project information to the Planning Commission and public. Commissioners expressed numerous concerns regarding the proposed project, including, but not limited to, the overall density, project design and architecture, setback encroachments, building height, amount of commercial uses provided, and parking. 5. A public hearing was held on June 9, 2016, in the Council Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the meeting was given in accordance with the Ralph M. Brown Act and the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing. At the conclusion of the public hearing, the Planning Commission voted 4-1 (2 absent) to deny the project and continue the item to June 23, 2016, for consideration of a resolution for project denial. 6. On June 23, 2016, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, the Planning Commission considered this resolution denying the project. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. Pursuant to Section 15270 of the California Environmental Quality Act (CEQA) Guidelines, projects which a public agency rejects or disapproves are not subject to CEQA review. SECTION 3. FINDINGS. 1. In accordance with General Plan Land Use Element Policy 6.15.13, the Planning Commission does not waive the required neighborhood park dedication based upon the following: a. The required dedication and improvement of 8% of a project site or a minimum of 0.5 acres of parkland ensures the creation of a neighborhood identity and would serve the daily recreational needs of the community within easy walking distance of homes and nearby businesses. There are no neighborhood parks within easy walking distance presently. Waiving the requirement would not meet the goal of the policy and would leave future residents underserved with nearby parkland. b. In -lieu of dedicating the parkland, the applicant proposes a passive open space area, without traditional active recreational amenities such as a playground. The applicant proposes the payment of an in -lieu fee in the amount of the value of the parkland 03-03-2015 14-8 Planning Commission Resolution No. 2019 Page 3of6 requested to be waived. Given that the applicant can accommodate a half acre open space area in the design of the project, the development parcels are not too small to accommodate the dedication of the area for park purposes. Furthermore, public access would be limited to daylight hours and the open space area would be fenced and gated. Public access would also be further limited as a proposed public access easement would only cover selected portions of the open space provided. These project features do not create a neighborhood identity and do not adequately meet the daily recreational and commercial needs of the community. 2. In accordance with NBMC Section 20.52.060(F), the Planning Commission was unable to make the following finding(s) in support of the Planned Development Permit: "Be substantially consistent with the purpose, intent, goals, policies, actions, and land use designations of the General Plan, and any applicable specific plan." "The project would produce a development of higher quality and greater excellence of design than that might otherwise result from using the standard development regulations. " "The design, location, operating characteristics, and size of the project would be compatible with the existing and future uses in the vicinity, in terms of aesthetic values, character, scale, and view protection." The proposed project does not meet these criteria for the following reasons: a. The project does not provide the required parkland pursuant to General Plan Policy LU6.15.13. The open space proposed and limited public access will not meet the recreational needs of residents and the community. The facts in support of Finding 1 above are incorporated herein by reference. b. General Plan Policy LU 6.15.7 requires residential projects to be developed at a maximum of 50 dwelling units per net acre. The net acreage shall be exclusive of existing and new rights of way, public pedestrian ways and neighborhood parks. General Plan Policy LU 6.15.13 requires the dedication of 8% of a project site or a minimum of 0.5 acres of parkland. Denial of the requested waiver to dedicate parkland results in a project that exceeds 50 dwelling units per acre, and therefore, the proposed project is not consistent with Policy LU 6.15.7. Density Bonus units were not considered in this determination. c. The density of the proposed project exceeds 50 dwelling units per net acre and with the inclusion of density bonus units, the project is too large as evidenced by the request to exceed the height limit and encroach into required setbacks. The increased size and density of the project will increase demands for parkland and the requested parkland waiver would create increased density resulting in a negative environment for residents. These project features do not create a project of superior design and the project is not compatible with planned development in the area. 03-03-2015 14-9 Planning Commission Resolution No. 2019 Paae 4 of 6 d. The proposed project provides 715 parking spaces which reflects reduced standards allowed for a project that includes affordable housing in accordance with NBMC Chapter 20.32 (Density Bonus). The Zoning Code would otherwise require 960 parking spaces for the residential component of the project. Due to magnitude of the reduction in neighborhood -serving commercial uses, the distance to other commercial services, and limited transit options, residents may be more reliant upon automobiles. As a result, the proposed project does not meet resident parking demands and the result may be the increased use of street parking or unauthorized use of parking on private property. These potential project ramifications would negatively change the character of the area. e. The project includes the elimination of 58,277 square feet of neighborhood -serving commercial uses including restaurants. Existing uses in the area and the community in general has come to rely on these uses. The project includes 5,677 square feet of retail uses and the overall reduction of commercial space will not adequately serve the existing community. The community will need to travel further to find necessary goods and services. The construction of 384 units at the project site will compound the issue by increasing demands for supporting services. As a result, the project will not meet the community's goal to create a mixed-use community that provides jobs, residential and supporting services in proximity, with pedestrian -oriented amenities that facilitates walking and enhance livability (General Plan Goal LU 6.15). 3. In accordance with NBMC Section 20.30.060(C)(3) the Planning Commission was unable to approve the requested height increase above 55 feet for the following reasons: a. The project does not provide additional project amenities beyond those that are otherwise required including but not limited to additional landscaped open space, increased setbacks and open areas. The applicant specifically requests reduced setbacks to abutting streets thereby reducing landscaped open space. The applicant also requests the relief from dedicating parkland required pursuant to General Plan Policy 6.15.13, which compromises a necessary goal of the General Plan to create a neighborhood identity and serve the daily recreational needs of the community within easy walking distance of homes and nearby businesses given that there are no neighborhood parks within easy walking distance of the project site currently leaving future residents and the community recreationally underserved. b. Many of the existing buildings in the vicinity of the project are 1 to 3 stories and are below 55 feet in height. Additionally, existing buildings provide 30 -foot setbacks or more in many cases. The increased height and reduced setbacks would create taller buildings closer to streets than planned creating a development pattern that would be out of scale with the character of the area. c. Increased interior ceiling heights can be achieved while complying with the established height standards. Increased architectural expression and visual interest 03-03-2015 14-10 Planning Commission Resolution No. 2019 Page 5 of 6 through taller architectural features can be achieved while complying with the established height standards. d. Surrounding properties meet setbacks and conform to applicable height limits and reducing these standards could set a detrimental precedent for future projects. 4. In accordance with NEMC Section 19.68.030(H), the Planning Commission was unable to make the following finding(s) in support of the requested lot merger: "Approval of the merger will not, under the circumstances of this particular case, be detrimental to the health, safety, peace, comfort and general welfare of persons residing or working in the neighborhood of such proposed use or be detrimental or injurious to property and improvements in the neighborhood or the general welfare of the City, and further that the proposed lot merger is consistent with the legislative intent of this title. " a. The proposed lot merger directly relates to and is necessary for the requested Planned Development Permit and the findings for approval of the Planned Development Permit have not been met. b. Approval of the requested lot merger without approval of the Planned Development Permit under these circumstances would be detrimental to the peace, comfort and general welfare of persons residing or working in the neighborhood of the project site proposed use and the general welfare of the City 5. In accordance with NBMC Section 19.08.030(A)(3), the Planning Commission was unable to make the following finding(s) in support of the requested parcel map waiver: "That the proposed division of land complies with requirements as to area, improvement and design, flood water drainage control, appropriate improved public roads and property access, sanitary disposal facilities, wafer supply availability, environmental protection, and other applicable requirements of Title 19, the Zoning Code, the General Plan, and any applicable Coastal Plan or Specific Plan." a. The proposed parcel map waiver for the lot merger directly relates to and is necessary for the requested Planned Development Permit and the findings for approval of the Planned Development Permit have not been met. Specifically, the project is not consistent with General Plan Policies LU 6.15.7 and LU 6.15.13. b. Approval of the parcel map waiver without approval of the Planned Development Permit under these circumstances would be detrimental to the peace, comfort and general welfare of persons residing or working in the neighborhood of the project site proposed use and the general welfare of the City 6, The Planning Commission was unable to approve the proposed affordable housing implementation plan (AHIP) for the following reason(s): 03-03-2015 14-11 Planning Commission Resolution No. 2019 Page6of6 Findings for the approval of the requested Planned Development Permit have not been satisfied, and therefore, the project cannot be approved. As a result, there is no requirement to construct affordable housing and no need to approve an AH1P or require an affordable housing agreement pursuant to NEMC Chapter 20.32 (Density Bonus). 7. The City of Newport Beach has satisfied its affordable portion of the Regional Housing Needs Assessment (RHNA) through the approval of recent affordable housing projects. Pursuant to Government Code Section 65589.5, the denial of this project does not render infeasible the construction of affordable units because the project can be redesigned to comply with the General Plan by providing the minimum parkland to meet the need of the community and comply with applicable zoning standards while providing affordable housing units. The denial without prejudice allows the project to be immediately redesigned to comply with applicable General Plan and Zoning standards while allowing the inclusion of affordable housing. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby denies without prejudice Planned Development Permit No. PL2014-001, Lot Merger No. LM2014-003, Affordable Housing Implementation Plan No. AH2O15-001, and the requested park waiver, height increase, lot merger, and parcel map waiver. 2. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal is filed with the City Clerk or the action is called for review by the City Council in accordance with the provisions of Chapter 20.64 (appeals or Calls for Review) of the Newport Beach Municipal Code PASSED, APPROVED, AND ADOPTED THIS 23rd DAY OF JUNE, 2016. AYES: KRAMER, KOETTING, LAWLER, WEIGAND, ZAK NOES: NONE ABSTAIN: BROWN, HILLGREN 1=YA 03-03-2015 14-12 Attachment CC3 Appeal 14-13 Appeal Application City Clerk's Office 100 Civic Center Drive / P.O. Box 1768 Newport Beach, CA 92658-8915 949-644-3005 Appeal the Decision of: 0 Hearing Officer - NBMC §20.64 lF] Operator License - NBMC §5.25.060 Attention: City Manager) 91 Planning Commission - NBMC §20.64 0 Zoning Administrator - NSMC §20.64 and 15.45.080 FJ ❑ Other Appellant Information: Names): Newport Place Residential, LLC Address: 20411 SW Birch, Suite 310 City/State/Zip: Newport Beach, California 92650 Phone: (949) 672-8068 Fax: Appealing Application Regarding: Crk's'Date & Tm+$tamp ~ns rs:I t!: 16 Applicable Appeal Fees Pursuant to Master Fee Schedule adopted 9-22-15: Hearing Officer - $1,506.00 Operator License - $692.00 Planning Commission - $1,506.00 Zoning Administrator - $1,506.00 Other ., $ Email: blensen@np-residential.corn Name of Applicant(s): Newport Place Residential, LLC Date of Decision: June 23, 2016 Project ND,: PA2014-150 Activity No.: PA2014-150 Site Address: 1701 Corinthian Way, 1660 Dove Street, 4251, 4253, 4255 Martingale way, 4200, 4220 & 4250 Scott Drive Description of application: see Attached "A" Reason(s) for Appeal (attach a separate sheet if necessary): see Attachment "A" Signature of Appellant: bAw Alav Date: � 2a FOR OFFICE USE ONLY: , �j q I 20 Date Appeal filed and Administrative Fee received: �,�'!� L Lkr J e� - ��-poli. City Clerk 4 . cc: Department Director, Deputy Director, Staff, File F; IUserslClerklShared4ForrnsOppeal Application Updated 2-23-16 14-14 ATTACHMENT "A7 Description of Application Planned Development Permit to allow the redevelopment of the existing MacArthur Square shopping center to include construction of 384 multi -family residential units and 5,677 square feet of retail use with an adjustment to development standards that include: building setback encroachments into the required 30 -foot street setback of 12 feet on Corinthian Way, 10 feet on Martingale Way, 8 feet on Dove Street, and 6 feet on Scott Drive; adjustments to exceed the 55 -foot height limit by introducing architectural elements up to 83 feet in freight; a waiver of General Plan Policy 6.15.13 in return for a fee payment equal to the value of the 0.5 acre parkland established by Ordinance No. 2007-30; a lot merger to combine three existing parcels into one; and an Affordable Housing Implementation Plan for the proposed project. Reason(s) for Appeal Newport Place Residential, LLC, and Lester C. Smull, Property Owner ("Appellant"), appeal the 4-1 decision by the Planning Commission to deny the redevelopment of the MacArthur Square shopping center with a high quality mixed use residential and retail development. When presented to the Planning Commission for consideration, the proposed project included 384 multi -family residential units and 5,677 square feet of retail space with building setbacks from 18 feet to 59 feet, building heights up to 83 feet, and a waiver of the 0.5 acre neighborhood public park. The proposed project offered to pay a fee equal to the value of the 0.5 acre parkland per Ordinance No. 2007-30 in light of the fact that the park location and characteristics do not fit the definition of neighborhood park per the City's General Plan and the proposed park site is remote from potential users, does not serve public needs, and would create a maintenance and liability burden for the City if dedicated for public use. After working with City staff for over 2 years developing this project, the Appellant feels that the Appellant's originally proposed project is the best project and should still be considered by City Council as is. The applicable land use regulations do not require that any commercial square footage be maintained on the site and the Appellant feels that the amount of retail square footage voluntarily proposed is more than sufficient. An area study was performed within walking distance of the project (0.5 miles) and demonstrates that of the uses being eliminated as a result of the redevelopment, uses that would be in demand for residential support (i.e. medical, dental, convenience store, hair & nail salons, dry cleaners, dining establishments, etc), exist, often times in multiple locations within the surveyed area. By not including excess retail space within the development, it allows existing surrounding businesses to benefit from the introduction of residential use in the community and aims to help drive business to these existing establishments. The proposed setback modifications aim to eliminate a "remote island" feel that would otherwise potentially exist if the 30' building setbacks were maintained. The overall reduction in the setbacks allow the proposed stoop units to provide more connection to the surrounding public sidewalk and provide more of the "walkable neighborhood" environment that is desired within the City's vision for the area. The variation in setbacks also allow for increased building articulation, resulting in a more aesthetically pleasing appearance when viewed from the street. The increased building height allows for more architectural interest and a variation of the building roofline that breaks up massing of the buildings. It is important to note that the areas of the highest elevation of 83 feet are the non -habitable tower elements that disguise elevator equipment and stairwells. 14-15 While the Appellant believes the requested adjustments to the City's park dedication., setback, and building height standards are justified on their own merits (and were fully supported by City staff), it also is important to keep in mind that the project is a density bonus affordable housing project within the meaning of Government Code Section 65915 and Chapter 20.32 of the Newport Beach Municipal Code. As such, since 30% of the Project's "base" number of units will be kept affordable to lower income households, the Project is entitled to receive three (3) "incentives or concessions -with that term defined to include `°[a] reduction in site development standards or a modification of zoning code requirements or architectural design requirements... , including, but not limited to, a reduction in setback ..requirements that would otherwise be required" and "[o]ther regulatory incentives or concessions proposed by the developer... that result in identifiable, financially sufficient, and actual cost reductions." (See Government Code Section 65915(b)(3), (d)(2)(C), and (k)(1).) Feedback from the Planning Commission during the public hearing suggested that modifications to certain aspects of the proposed project would be looked upon more favorably, however, a continuance was not offered and when requested by the Appellant, was denied by the Commission on a 3-2 vote without any opportunity provided for -further discussion between the Appellant, Staff and the Commission. Thus, the Appellant feels that due process was denied by not allowing a continuance that would have provided the Appellant the opportunity to address the comments of the Commission and modify the proposed project. While the Appellant feels that modifying the proposed project would provide a less desirable option, the Appellant has prepared a revision to the project that eliminates all of the variances that were originally included within the project, is fully compliant with all applicable General Plan policies, municipal code regulations, etc., and addresses additional comments (i.e. provision of additional retail space and parking), which the Appellant is prepared to share and discuss with the City Council as well as the Planning Commission, if given the opportunity to do so. Development Agreement While it was not a finding within the resolution for denial of the project, it is important to note that there was a significant amount of discussion regarding the proposed project and the insistence by some of the Planning Commissioners to have a Development Agreement imposed on the project. The Appellant is in agreement with Staff's assessment of the appropriate policies within the City's General Plan and Municipal Code both at the time the project commenced over 2 years ago, and through the Planning Commission hearings --that there is no policy requiring a Development Agreement for this project. The Appellant is concerned that the Planning Commissioner's focus on this item, even after discussion of staff's assessment that arose during the June 9`h public hearing could be affecting the critique of the other aspects of the project that were used as the basis for denial. This is further evidenced by Planning Commission's denial of a continuation requested by the Appellant at the lune 9a' hearing that would allow the project time to further address the Commissioner's comments regarding building setbacks, height and the park provision. 14-16 BUSINESS PROPERTIES MANAGEMENT COMPAN-Y 176.31 FITCII IRVINE, CALIFORNIA Oe614-6021 (949) 474-8900 FAX (919) 474-8036 July 7, 2016 City of Newport Beach 100 Civic Center Drive Newport Beach. CA 92660 To whom it may concern, 1. Lester C. Smull, authorize Newport Place Residential. LLC to file, on my behalf, the appeal for the Residences at Newport Place project (Project Number PA2014-150). Srn,cerely, Lester C. Smull, Trustee, Managing General Partner MacArthur Square, a California General Partnership cc: Newport Place Residential. LLC 14-17 BUSINESS PROPERTIES MACARTHUR SQUARE 17631 RTCH IRVINE, CA 92614-6021 FARMERS & MERCHANTS BALK 23772 ROCKFIELO BLVD.. LAKE FOREST, CA 92630 NO: 0000020684 DATE AMOUNT 07/0112016 $1,506.00 PAY PAY ONE THOUSAND FIVE HUNDRED SIX AND XX 1 100 DOLLARS TO TRIG CITY OF NEWPORT BEACH ORDER COMMUNITY DEVELOPMENT DEPARTMENT OF 100 CIVIC CENTER DRIVE NEWPORT BEACH, CA 92660 14-18 Receipt #1018941.005 Recreation & Senior Services 'Dept. 100 Civic Center Drive Bay E Newport Beach, CA 92554 Phone: (949) 544-3151 FAX: (949) 544-3155 Email: recreation @newportbeachca,gov DROP -1N CUSTOMER Payment Summary Check: $1,506.00 Check # 24684 Credit Card: $0 Account: $4 Financial Aid: $0 Total Received: $1,506.00 Transactions Customer Description Drop -In Customer CC PlanningCommission Appeal Action; Product Sale Home phone: email. -- iD: ! Page 1 of I Receipt #1018941.005 ]ul 7, 2016 4:18 PM. Prepared By: Lisa Gizara Customer ID: 1 Horne phone: --, Work phone: -- Cash: $0 Memo: $0 Gift Card: $0 Total payments: $1,505.00 Payment Plan: $0 Charge $1,506.00 Total Charges $1,506,00 Total Payments $1,506.Dp Balance $0 Thank you for your choosing Newport Beach Recreation & Senior Services. Please visit us online at www.newportbeachca.gov https:llactivenet001. active. coinlcnbregfserviet/processReceiptPayment.sdi 07/0712016 14-19 Attachment CC4 Correspondence 14-20 SHOPOFF REALTY INVESTMENTS roosformiq Opporhn)ify into Valk July 13, 2016 Mayor Diane Dixon & Members of the Newport Beach City Council City of Newport Beach 1000 Civic Center Drive Newport Beach, CA 92660 RE: The Residences at Newport Place (PA 2014-150) 1701 Corinthian Way,1660 Dove Street, 4251, 4253, 4255 Martingale Way, & 4200, 4220, 4250 Scott Drive • Mitigated Negative Declaration No. MD2015-009 • Planned Development Permit No. PL2014-001 • Lot Merger No. LM2014-003 • Affordable Housing Implementation Plan No. AH2O15-001 Dear Mayor Dixon & Members of the Newport Beach City Council: We reviewed the above referenced application for The Residences at Newport Place (RNP) and previously expressed our concerns in a formal letter and during public comments to the Planning Commission, which voted to deny a motion to continue the hearing and voted to deny the project. Since the Planning Commission's June 23rd Final Denial (Resolution 2019) the applicant has exercised their rights to appeal the denial to City Council, so we wish to express our concerns to the council. These concerns deal with the extent this Airport Area application is requesting waivers from General Plan requirements and Zoning requirements. While we recognize the Newport Place zoning standards provide for residential development on sites smaller than 10 -acres with a 30% affordable component, we believe that a Development Agreement and a 1 acre park are required by the General Plan. Additionally, we believe the applicant needs to live within the height and setback standards as defined by the Newport Place Zoning, Development Agreement Requirement We believe there is no justification for the lack of a Development Agreement and the fees associated, which are required by the General Plan as follows: Land Use Element -Airport Area -Mixed Use Districts (Subarea C. MU -1-12 Designation) LU 6.15.12 Development Agreements P. 3-109 14-21 SHOPOFF REALTY INVESTMENTS Pausiarmiq Opportunity into Wile "A Development Agreement shall be required for all projects that include infill residential units. The Development Agreement shall define the improvements and public benefits to be provided by the developer in exchange for the City's commitment for the number, density, and location of housing units." (Imp. 2.1, 3.1, 4.1, 13.1) The common definition of "infill development" is the process of developing vacant or under -used parcels within existing urban areas that are already largely developed. This project is definitively infill residential in nature and should have a Development Agreement and the fees associated. We disagree with staff's rationale that the General Plan Development Agreement requirements were only intended for "additive units" and not for those projects like the RNP that provide 384 "replacement units". As the Planning Commission is aware, in February of 2013, Uptown Newport was the first Airport Area project to be approved by the City of Newport Beach, and was required to have a Development Agreement and Public Benefit Fee on all of its 1,244 units - both replacement and additive. These fees, originally set at $32,500 per unit on the document effective date of April 2013, increase by CPI annually on each first day of January and as of January 1, 2016 have increased to $33,798.05 per unit. CPI has increased from 232.531 in April 2013 to 236.525 at the end of December 2015, a 3.994 point increase, which equates to a 1.718% increase. Based on staff's recommendation for the RNP project, the Uptown Newport project should only be paying fees for the 290 "additive" units and not the 954 "replacement units" and density bonus units. With CPI -adjusted DA fees of $33,058.35 per dwelling unit, that reduction in fees equates to approximately $31,537,665.90 (Thirty-one Million, Five Hundred Thirty- seven Thousand, Six Hundred Sixty-five Dollars and Ninety Cents) for Uptown Newport. 954 Dwelling Units x $33,O5B.35 Per Unit = $31,537,665.90 Or said a different way, if the same DA Fees were imposed on the RNP project, the fees would be approximately $12,694,406.40 (Twelve Million, Six Hundred Ninety- four Thousand, Four Hundred Six Dollars and Forty Cents). 384 Dwelling Units x $33,058.35 Per Unit = $12,694,406.40 SHOPOFF REALTY INVESTMENTS fransfornrrng Opportunity into Value Based on the magnitude of the fees in question here, we strongly urge the Planning Commission to seek the City Council's review of this project so that the requirement of a Development Agreement can be sought. Lack of a Development Agreement on this project would be unfair and inequitable to all other Airport Area residential projects. Park Requirement: We believe there is no justification to grant a General Plan Land Use Policy (Neighborhood Parks (LU6.15.13) waiver of the park dedication. The General Plan states, "In every case, the neighborhood park shall be at least 8 percent of the total Residential Village Area or one acre in area, whichever is greater, and shall have a minimum dimension of 150 feet." We believe the General Plan clearly requires and anticipated all Airport Area residential communities would provide a public park. Granting a deviation from this requirement would create a precedent for future Airport Area residential projects and establishes an inequity in which the city is applying its standards. The requested waiver of the 1 acre park for public dedication also allows the applicant to generate additional density on the site as the park acreage is not deducted from the total land. With a 1 acre park, the net acreage would be 4.7 acres creating a maximum of 235 units based on the maximum density of 50 upa before the density bonus and 317 units with the 35% density bonus. This is a reduction in 54 allowable units and 67 units with the density bonus. Deviation from Newport Place Zoning Standards The Newport Place zoning sets forth a maximum building height of 55 feet. The height of a structure can he increased with approval of a site development review and subject to required findings. The height requested by the applicant exceeds the 55 foot height limit by 28 feet. We understand that the height deviations can be approved if the Planning Commission approves a set of findings and a Planned Development Permit. The staff report indicates that the additional height to 83 is only for architectural elements, but the plans indicate there are living spaces within the additional height. We believe the request is far reaching (over a 50% increase in height) and the findings can't be made. 2 Park Plaza, Suite 700, Irvine Galilomia pi 14-23 SHOPOFF REALTY INVESTMENTS Iranstornting Opportunity into Vatue Deviation from the Newport Place Setback Standards The applicant is also requesting deviation from the 30' setback standard on all streets the project abuts; Corinthian Way, Martingale Way, Dove Street, and Scott Drive. The applicant's representative stated that the request was based on the fact that the Newport Place Zoning Standards never anticipated residential. The staff report suggests they are supportive of the setback deviation provided the applicant builds a O.S acre park with public access. We contend if the zoning standards needed to be modified to accommodate residential, the applicant should have requested a Zone Change as part of its application as is the case with all other Airport Area residential projects. In conclusion, we believe this project is too far reaching and doesn't meet the basic standards and requirements that are mandated for the Airport Area residential developments. This development project should be held to the same standards as others in the Airport Area and as such should have a Development Agreement and the associated fees; should adhere to the park requirement, which would reduce the density; and should comply with the Newport Place height and setbacks or submit for a zone change. The applicant's requests for deviations are an attempt to circumvent the appropriate zone change, which would in itself trigger a legislative action requiring a Development Agreement. We are hopeful the City Council will uphold the Planning Commission's denial of this project or request the applicant significantly revise the project to be more in keeping with the standards and requirements being applied to all other Airport Area residential projects. Thank you for considering our thoughts and concerns. Sincerely, f ohn Santry Executive Vice President- Acquisitions and Development 14-24 Ung, Rosalinh From: mbaguy99@aol.com Sent: Monday, July 18, 2016 8:08 PM To: Dept - City Council; City Clerk's Office; Info@SPON-NewportBeach.org Subject: Public Comments: The Residences at Newport Place Please do not let this project through. It violates the General Plan and several other regulations. Herbert Karg Corona del Mar resident for 40 years. mbaguy99@aol.com 14-25