HomeMy WebLinkAboutC-8230-1 - MOU to Provide Lower-Cost Overnight Accommodation OpportunitiesMEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF NEWPORT BEACH AND
THE CALIFORNIA COASTAL COMMISSION
TO PROVIDE LOWER-COST OVERNIGHT ACCOMMODATION OPPORTUNITIES
This Memorandum of Understanding ("MOU") is entered into on 9 iS .Aplb
2016, by and between the City of Newport Beach, a California municipal corporation
and charter city ("City") and the California Coastal Commission, a California public
agency ("Commission"), through its duly elected, appointed, qualified, or acting
representatives. The Commission and the City may hereinafter be referred to
individually as "Party" or collectively as the "Parties."
RECITALS
A. The City is a municipal corporation duly organized and validly existing under the
laws of the State of California with the power to carry on its business as it is now
being conducted under the statutes of the State of California and the Charter of
City.
B. The Commission is a California public agency created and validly existing under
the authority of California Public Resources Code Sections 30300 et seq.
C. On February 17, 2016, the Commission issued to Olson Real Estate Group, Inc.,
d.b.a. R.D. Olson Development ("R.D. Olson"), a corrected Coastal Development
Permit, (Permit Application No. 5-14-1785) ("Permit") attached hereto and
incorporated herein by reference as Exhibit "A," regarding the development
taking place within the coastal zone at 3300 Newport Boulevard, Newport Beach,
California, County of Orange, Assessor's Parcel Number 423-111-02.
D. Pursuant to the Permit's Special Condition Number 6, Lower Cost Overnight
Accommodations Mitigation ("Special Condition No. 6"), the Parties desire to
enter into this MOU to memorialize the Commission's acceptance of the City's
intent to use the in -lieu mitigation fee, for the purposes of providing lower-cost
overnight accommodation opportunities in conjunction with an outdoor youth
educational program in the vicinity of Newport Beach or greater Orange County
("Fostering interest in Nature'FiiN' Program").
NOW, THEREFORE, it is mutually agreed by and between the undersigned
Parties as follows:
1. FiiN PROGRAM FUNDS
1.1 On November 24, 2015, the City created a restricted and interest-bearing
special revenue fund for the FiiN Program with an initial deposit of Nine Hundred
Seventy -Five Thousand Dollars ($975,000). The interest-bearing special revenue fund
is restricted by the terms of Special Condition No. 6 and this MOU. On February 4,
2016, R.D. Olson deposited Four Hundred Forty Thousand Two Hundred and Thirty-
M
Two Dollars ($440,232) into the interest-bearing special revenue fund for a total of One
Million Four Hundred Fifteen Thousand Two Hundred Thirty -Two Dollars ($1,415,232)
("Funds"). Prior to the issuance of the Permit, the Commission's Executive Director
("Executive Director') approved the City to manage the Funds in support of the FiiN
Program.
1.2 The Funds, and any accrued interest attributable to the Funds, shall be
used solely for the FiiN Program in consultation with the Executive Director pursuant to
this MOU. Any development paid for by the Funds requires review and approval of the
Executive Director and a coastal development permit ("CDP"), if a CDP is required.
1.3 The Funds, and any accrued interest attributable to the Funds, shall be
used in their entirety within ten (10) years of February 4, 2016, the day when the
balance of the Funds were deposited into the interest-bearing special revenue fund
established and managed by the City. If any portion of the Funds or accrued interest
therefrom remain in the account after ten (10) years and the Executive Director
determines the Funds and accrued interest should be reassigned, those Funds and
interest shall be donated to an agency or non-profit entity, to be selected by the
Executive Director, providing lower cost overnight accommodations in the Southern
California coastal zone to be used for purposes allowed in the Permit.
1.4 Six (6) months prior to the RN Program's commencement, the City shall
submit to the Executive Director the FiiN Program's budget, which will include the
proposed schedule, programming, and costs for review and approval. The approved
FiiN Program term may be for one (1) year or multiple years. All Funds expenditures
shall be consistent with the approved FiiN Program. Following budget approval by the
Executive Director, unforeseen or unbudgeted expenditures exceeding One Thousand
Dollars ($1,000) arising in a single year shall be submitted to the Executive Director for
review and approval. The Executive Director shall determine in writing whether or not
the proposed use of the Funds is consistent with the terms, intent and purpose of
Special Condition No. 6, prior to the expenditure of Funds by the City.
2. FUN Program Components
2.1 Consistent with Special Condition No. 6 the FiiN Program includes, but is
not necessarily limited to, the following:
2.1.1 Overnight accommodations and educational and recreational
opportunities for disadvantaged youth from Title 1 schools, as defined in
the Elementary and Secondary Education Act, as amended, by providing
an outdoor camp -like experience during the academic school year;
2.1.2 The Funds for the FiiN Program will provide for the expenses
directly related to the overnight stays and coastal -dependent educational,
and recreational opportunities, including but not limited to, environmental
California Coastal Commission MOU
education activities, transportation, food, lodging, kayaking, boating,
swimming, or surfing, etc.;
2.1.3 The City shall expend no more than five percent (5%) of the
Funds for City staff administration costs (i.e., accounting of Funds, legal
support, staff oversight of FiiN Program vendors, etc.) to manage the FiiN
Program annually. This five percent (5%) limitation does not apply to
direct HN Program operation costs;
2.1.4 The FiiN Program will serve a minimum of three hundred fifty
(350) students per year, provide a minimum of three (3) night stays, and
will operate a minimum of ten (10) years from the commencement of the
FiiN Program based upon the initial Funds;
2.1.5 The outdoor educational component will focus on ocean
safety, coastal and marine ecology, coastal hazards, and/or other coastal -
related topics and the HN Program will include water -oriented
recreational activities such as kayaking, boating, swimming or surfing,
etc.;
2.1.6 An annual report, submitted on the anniversary of the first
day of FiiN Program's commencement (when students show up for the
first day of the first program offered), on the FON Program's
accomplishments and finances, as well as any recommended changes
and/or expansions to the FiiN Program, shall be transmitted to the
Executive Director for the first ten (10) years of the FiiN Program, or for as
long as the Funds last, whichever is longer; and
2.1.7 The FiiN Program may be expanded to accommodate more
students, and/or more camp sites, and/or more seasons of the year, and
may be extended past the initial ten (10) years if existing Funds allow or
additional funding is available. Expansion and/or other changes to the
FiiN Program are subject to the review and approval of the Executive
Director, or the Coastal Commission itself if the Executive Director
determines an amendment or a new CDP is required.
2.2 The FiiN Program will be administered by the City's Recreation and Senior
Services Department.
California Coastal Commission MOU
2.3 The City shall obtain all necessary regulatory permits and approvals for
the FiiN Program, including but not limited to a CDP if required by the California Coastal
Act.
2.4 The City shall commence and operate the FiiN Program within thirty-six
(36) months of the Effective Date of this MOU, defined as the date on which the last
signatory has signed the MOU.
2.5 The Executive Director may extend any of the deadlines in Sections 1 or 2
of this MOU, in writing, for good cause.
3. NOTICES
All notices, demands, requests or approvals to be given under the terms of this
MOU shall be given in writin
`�q and conclusively shall be deemed served when delivered
personally, or on the third (3 business business day after the deposit thereof in the United States
mail, postage prepaid, first-class mail, addressed as hereinafter provided. All notices,
demands, requests or approvals from Commission to City shall be addressed to City at:
Attention: Recreation & Senior Services Director
City of Newport Beach
100 Civic Center Drive
PO Box 1768
Newport Beach, CA 92658
WITH A COPY TO:
Attention: Community Development Director
City of Newport Beach
100 Civic Center Drive
P.O. Box 1768
Newport Beach, CA 92658
All notices, demands, requests or approvals from City to Commission shall be addressed
to Commission at:
Attention: Executive Director
California Coastal Commission
South Coast District Office
200 Oceangate, 10th Floor
Long Beach, CA 90802
4. STANDARD PROVISIONS
4.1 Recitals. The Parties acknowledge the Recitals in this MOU are true and
correct and are hereby incorporated by reference into this MOU.
California Coastal Commission MOU
4.2 Compliance with all Laws. The Parties shall, at their own cost and
expense, comply with all statutes, ordinances, regulations and requirements of all
governmental entities, including federal, state, county or municipal, whether now in
force or hereinafter enacted.
4.3 Waiver. A waiver by either Party of any breach, of any term, covenant or
condition contained herein shall not be deemed to be a waiver of any subsequent
breach of the same or any other term, covenant or condition contained herein, whether
of the same or a different character.
4.4 Integrated Contract. This MOU represents the full and complete
understanding of every kind or nature whatsoever between the Parties hereto, and all
preliminary negotiations and agreements of whatsoever kind or nature are merged
herein. No verbal agreement or implied covenant shall be held to vary the provisions
herein.
4.5 Conflicts or Inconsistencies. In the event there are any conflicts or
inconsistencies between this MOU and any Exhibit to this MOU, the terms of this MOU
shall govern.
4.6 Interpretation. The terms of this MOU shall be construed in accordance
with the meaning of the language used and shall not be construed for or against either
Party by reason of the authorship of the MOU or any other rule of construction which
might otherwise apply.
4.7 Amendments. This MOU may be modified or amended only by a written
document executed by both Parties and approved as to form by the City Attorney.
4.8 Severability. If any term or portion of this MOU is held to be invalid, illegal,
or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions of this MOU shall continue in full force and effect.
4.9 Controlling Law and Venue. The laws of the State of California shall
govern this MOU and all matters relating to it and any action brought relating to this
MOU shall be adjudicated in a court of competent jurisdiction in the County of Orange,
State of California.
4.10 No Attorneys' Fees. In the event of any dispute or legal action arising
under this MOU, the prevailing Party shall not be entitled to attorneys' fees.
4.11 Counterparts. This MOU may be executed in two (2) or more
counterparts, each of which shall be deemed an original and all of which together shall
constitute one (1) and the same instrument.
4.12 Authority to Enter Into Agreement. The Parties warrant that they are duly
authorized to enter into this MOU and perform their obligations hereunder, and have
received all necessary third party consents and approvals to perform such obligations.
California Coastal Commission MOU
IN WITNESS WHEREOF, the Parties have caused this MOU to be executed on
the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: t
By:.
Aaron C. Harp
City Attorney
ATTEST:
Date: �.
By:. Q& 1t
Leilani I. Brown
City Clerk
Attachment:
CITY OF NEWPORT BEACH,
A California municipal corporation
and charter city
Date: a'-1 F 14
By:
Da iff
City Manager
CALIFORNIA COASTAL
COMMISSION,
A California public resources agency
Date: 741 S/.Z 016--
xecutive Director - /f c .tib
j o /(,V 4 i.✓S zr o., 7/f
Exhibit A - Corrected Coastal Development Permit No. 5-14-
1785
[END OF SIGNATURES]
California Coastal Commission MOU
EXHIBIT A
CORRECTED COASTAL DEVELOPMENT PERMIT NO. 5-14-1785
California Coastal Commission Page A-1
Intentionally Blank
California Coastal Commission MOU
1 STATE OF CA ORMA-NANML RCSOURCES AGQ Cy EDMUND G BROWN, IR., GOY OR
CALIFORNIA COASTAL COMMISSION
som COAST DISTRICT Mla
200 OCEAHGATE, 10TH MOM
LONG BEACH, MWOR2.TA 90/024416
PH (562)590.1071 FA% (562)590-5094
WWW C5Ml CA -MY
Page i
February 17, 2016
Permit Application No.: 5-14-1785
Corrected
COASTAL DEVELOPMENT PERMIT
On October 7, 2015, the California Coastal Commission granted to Olson Real Estate Group,
Inc., Dba R. D. Olson Development this permit subject to the attached Standard and Special
conditions, for development consisting of Demolish the existing public facilities structure
(former City Hall) and construct a new 4 -story (up to 65 feet high), 130 -room hotel, with 85E
sq. ft. of retail and 148 parking spaces. Reconfigure the public street parking on 32nd street.
6,640 cubic yards of grading, more specifically described in the application filed in the
Commission offices.
The development is within the coastal zone at: 3300 Newport Blvd, Newport Beach (Orange
County) (APN(s): 423-111-02)
Issued on behalf of the California Coastal Commission by
Charles Lester
Executive Director
Amber Dobson
Coastal Program Analyst
ACKNOWLEDGMENT:
The undersigned permittee acknowledges receipt of this permit and agrees to abide by all terms and
conditions thereof.
The undersigned permittee acknowledges that Government Code Section 818.4 which states in
pertinent part of that: "A Public entity is not liable for injury caused by the issuance... of any
permit..." applies to the issuance of this permit.
IMPORTANT: THIS PERMIT IS NOT VALID UNLESS AND UNTIL A COPY OF THE
PERMIT WITH THE SIGNED ACKNOWLEDGEMENT HAS BEEN RETURNED TO THE
COMMISSION OFFICE. 14 Cal. Admin. Code Section 13158(a).
Page 2 W.
February 17, 2016
Permit Application No.: 5-14-1785
COASTAL DEVELOPMENT PERMIT
Date: Signature
STANDARD CONDITIONS:
Notice of Receipt and Acknowledgment. The permit is not valid and development shall not
commence until a copy of the permit, signed by the permittee or authorized agent,
acknowledging receipt of the permit and acceptance of the terms and conditions, is returned
to the Commission office.
Expiration. If development has not commenced, the permit will expire two years from the
date on which the Commission voted on the application. Development shall be pursued in a
diligent manner and completed in a reasonable period of time. Application for extension of
the permit must be made prior to the expiration date.
Interpretation. Any questions of intent or interpretation of any condition will he resolved
by the Executive Director or the Commission.
4. Assignment. The permit may be assigned to any qualified person, provided assignee files
with the Commission an affidavit accepting all terms and conditions of the permit.
5. Terms and Conditions Run with the Land. These terms and conditions shall be perpetual,
and it is the intention of the Commission and the permittee to bind all future owners and
possessors of the subject property to the terms and conditions.
SPECIAL CONDITIONS:
This permit is granted subject to the following special conditions:
1. FUTURE DEVELOPMENT
This permit is only for the development described in Coastal Development Permit 5-14-1785: a
130 -room hotel with a maximum gross floor area of 98,725 square feet, including meeting space,
retail floor area, restaurants, and a roof top bar. Pursuant to Title 14 California Code of
Regulations section 13253(b)(6), the exemptions otherwise provided in Public Resources Code
section 30610 (b) shall not apply to the development governed by the coastal development
permit No. 5-14-1785. Accordingly, any future improvements to the structure authorized by this
permit, including but not limited to changes in square footage or height of the hotel, conversion
of common space, lobbies, or storage areas to guest rooms and vice versa, number of guest
rooms, number of on-site parking spaces, and repair and maintenance identified as requiring a
permit in Public Resources section 30610(d) and Title 14 California Code of Regulations
sections 13252(a) -(b), shall require an amendment to Permit 5-14-1785 from the Commission or
Page 3
February 17, 2016
Permit Application No.: 5-14-1785
COASTAL DEVELOPMENT PERMIT
shall require an additional coastal development permit from the Commission or from the
applicable certified local government.
2. PARKING AND TRANSPORTATION PLANS
A. PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, the applicant
shall provide for review and approval by the Executive Director, a transportation demand
management program as follows:
(1) The applicant shall provide and maintain a minimum of 148 parking stalls on the site to
serve the approved development. Valet parking service is allowed in order to increase
the number of vehicles that can be stored on the site. All available parking shall be
shared among and equally available to all of the patrons, employees, and other users of
the buildings, and no parking spaces shall be assigned for exclusive use, with exception
of required ADA parking, including valet service.
(2) The applicant shall actively encourage employee participation in a Ride
Sharing/Carpooling program and shall offer coordination services free of charge.
(2) A public transit fare reimbursement program shall be implemented by the applicant. The
system shall be in effect for at least a 30 -year period. The applicant shall provide for a
minimum of 50% reimbursement to 100% of the employees of the development for
public transit fare to and from work. Posters, brochures and registration materials of the
program shall be available to employees at all times. Employees shall be informed of the
program upon orientation and annually thereafter.
(3) The applicant shall provide a bicycle parking area for a minimum of 30 bicycles, free of
charge, on the property. All bicycle parking spaces shall be shared among and equally
available to all of the patrons, employees, and other users of the buildings.
(4) The applicant shall implement a publicity program, the contents (posters, brochures and
registration materials, etc.) of which is subject to the review and approval of the
Executive Director, that indicates how the future occupants of the development will be
made aware of the provisions of this special condition. The publicity program shall be
implemented during the first month of occupancy of the new development and annually
thereafter.
(5) The applicant shall provide shuttle service between John Wayne Airport and the project
site for all guests of the hotel.
(6) If the onsite parking lot is not free of charge, a validation program for members of the
public utilizing onsite commercial uses shall be provided, offering a discounted parking
rate.
The permittee shall undertake the development in accordance with the approved program. Any
proposed changes to the approved program shall be reported to the Executive Director. No
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February 17, 2016
Permit Application No.: 5-14-1785
COASTAL DEVELOPMENT PERMIT
changes to the program shall occur without a Coastal Commission approved amendment to this
coastal development permit unless the Executive Director determines that no amendment is
required.
3. CONSTRUCTION AND DEMOLITION PLAN
PRIOR TO THE ISSUANCE OF A COASTAL DEVELOPMENT PERMIT, the applicant shall
submit a Construction and Demolition Plan to the Executive Director for review and approval.
The plan shall identify the specific location of all construction areas, all staging areas, and all
construction access corridors in site plan view. Construction and demolition staging zones shall
be limited to the minimum area required to implement that approved project, and to minimize
construction encroachment on public areas. The plan shall also identify the type and location of
erosion control/water quality best management practices that will be implemented during
construction to protect coastal water quality, including the following:
a) No construction materials, debris, or waste shall be placed or stored where it may enter a
storm drain or be subject to wave erosion and dispersion;
b) Any and all debris resulting from construction activities shall be removed from the project
site within 24 hours of completion of construction;
c) Best Management Practices (BMPs) and Good Housekeeping Practices (GHPs) designed to
prevent spillage and/or runoff of construction -related materials, and to contain sediment or
contaminants associated with construction activity, shall be implemented prior to the on -set
of such activity. BMPs and GHPs which shall be implemented include, but are not limited
to: stormdrain inlets must be protected with sandbags or berms, all stockpiles must be
covered, and a pre -construction meeting should be held for all personnel to review procedural
and BMP/GHP guidelines. Selected BMPs shall be maintained in a functional condition
throughout the duration of the project.
d) Construction debris and sediment shall be properly contained and secured on site with BMPs,
to prevent the unintended transport of sediment and other debris into coastal waters by wind,
rain or tracking. Construction debris and sediment shall be removed from construction areas
as necessary to prevent the accumulation of sediment and other debris which may be
discharged into coastal waters. Debris shall be disposed at a debris disposal site outside the
coastal zone.
e) Silt fences, or the equivalent, shall be installed at the perimeter of the construction site to
prevent construction related runoff and/or sediment from discharging onto the nearby
waterways.
f) Equipment washing, refueling, and/or servicing shall not take place on the project site. All
construction equipment shall be inspected and maintained at an off0site location to prevent
leaks and spills of hazardous materials at the project site.
Page 5
February 17, 2016
Permit Application No.: 5-14-1785
COASTAL DEVELOPMENT PERMIT
g) The construction site shall maintain good construction housekeeping controls and procedures
(for example, clean up all leaks, drips, and other spills immediately; keep materials covered
and out of the rain, including covering exposed piles of soil and waste; dispose of all waste
properly, place trash in receptacles onsite for that purpose and cover open trash cans when
not in use).
h) All erosion and sediment controls shall be in place prior to the commencement of
construction as well as at the end of each work day.
i) Any required dewatering of the site due to groundwater intrusion, or percolating surface
water, during construction or post -construction will require filters to be installed on all
dewatering pumps and sump pumps. Such dewatering shall comply with the State of
California Regional Water Quality Control Board or the Sanitary District discharge
requirements.
A copy of the approved Construction and Demolition Plan shall be kept at the construction job
site at all times and all persons involved with the construction shall be briefed of its content and
meaning prior to the commencement of demolition/construction. The permittee shall notify
Commission staff at least 3 working days in advance of commencement of the demolition and
construction, and immediately upon completion of construction. The permittee shall undertake
the approved development in accordance with the approved Construction and Demolition Plan.
Any proposed changes to the approved plan shall not occur without a Commission amendment
this coastal development permit unless the Executive Director determines that no amendment is
necessary.
4. WATER QUALITY MANAGEMENT PLAN
PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, the applicant shall
submit for the review and approval of the Executive Director, a Water Quality Management Plan
(WQMP) for the post -construction project site, prepared by a licensed water quality professional,
and shall include plans, descriptions, and supporting calculations. The WQMP shall incorporate
structural and non-structural Best Management Practices (BMPs) designed to reduce, to the
maximum extent practicable, the volume, velocity and pollutant load of stormwater and dry
weather flows leaving the developed site. In addition to the specifications above, the plan shall
be in substantial conformance with the following requirements:
a) Post -development peak runoff rates and average volumes shall not exceed pre -
development conditions.
b) Appropriate structural and non-structural BMPs shall be designed to treat or filter the
runoff from all surfaces and activities on the development site.
c) Post -construction structural BMPs (or suites of BMPs) should be designed to treat or
filter the amount of stormwater runoff produced by all storms up to and including the
85th percentile, 24-hour storm event for volume -based BMPs, and/or the 85th percentile,
1 -hour storm event, with an appropriate safety factor (i.e., 2 or greater), for flow -based
BMPs.
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February 17, 2016
Permit Application No.: 5-14-1785
COASTAL DEVELOPMENT PERMIT
d) Runoff from all roofs and parking areas shall be collected and directed through a system
structural BMPs of vegetated areas and/or gravel filter strips or other vegetated or media
filter devices. The filter elements shall be designed to 1) trap sediment, particulates and
other solids and 2) remove or mitigate contaminants through infiltration and/or biological
uptake. The drainage system shall also be designed to convey and discharge runoff in
excess of this standard from the building site in a non-erosive manner.
e) The WQMP shall provide for the treatment of runoff from the parking surfaces using
appropriate structural and non-structural BMPs. At a minimum this must include a filter
designed specifically to minimize vehicular contaminants (oil, grease, automotive fluids,
heavy metals), sediments, and floatabies and particulate debris.
f) The applicant shall regularly sweep the parking surfaces on a weekly basis, in order to
prevent dispersal of pollutants that might collect on those surfaces.
g) The detergents and cleaning components used on site shall comply with the following
criteria: they shall be phosphate -free, biodegradable, and non-toxic to marine wildlife;
amounts used shall be minimized to the maximum extent practicable; no fluids containing
ammonia, sodium hypochlorite, chlorinated solvents, petroleum distillates, or lye shall be
used;
h) The applicant shall not spray down or wash down the parking lot or surrounding
sidewalks unless the water used is directed through the sanitary sewer system or a filtered
drain. No car washing shall be permitted in the parking lot.
i) All BMPs shall be operated, monitored, and maintained for the life of the project and at a
minimum, all structural BMPs shall be inspected, cleaned -out, and where necessary,
repaired at the following minimum frequencies: (1) prior to October 15th each year; (2)
during each month between October 15'h and April 15 1h of each year and, (3) at least
twice during the dry season.
j) Debris and other water pollutants removed from structural BMP(s) during clean-out shall
be contained and disposed of in a proper manner;
k) It is the applicant's responsibility to maintain the drainage system and the associated
structures and BMPs according to manufacturer's specification.
1) Water from the pool and spa shall not enter any stormdrains without proper treatment.
m) Provide a detailed description and flows of the "Flow Through" system in the parking lot
area.
n) Provide clarification of the Fire Station parking lot permeability.
o) Adequate curb cut size, number, and placement called out on the plans.
p) The center of the parking areas and graded areas shall be constructed to adequately drain
toward infiltration zones.
q) Finished grade of landscaping areas should be at a lower elevation than the surrounding
impermeable areas.
The permittee shall undertake development in accordance with the final plan. Any proposed
changes to the final plan shall be reported to the Executive Director. No changes to the final
plan shall occur without a Commission amendment to this coastal development permit unless the
Executive Director determines that no amendment is legally required.
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February 17, 2016
Permit Application No.: 5-14-1785
COASTAL DEVELOPMENT PERMIT
GENERAL OCCUPANCY REQUIREMENT
By acceptance of this permit, all hotel facilities shall be open to the general public, except for the
pool and spa which may be restricted to hotel guests. The hotel shall be operated as a bon fide
hotel. No timeshare or other fractional ownership or long-term occupancy of units is permitted
without an amendment to this permit. Rooms may not be rented to any individual, family, or
other related group for more than 29 consecutive days or in accordance with any local
government limitations on length of hotel stay.
6. LOWER COST OVERNIGHT ACCOMMODATIONS MITIGATION
PRIOR TO THE ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, the applicant
shall provide evidence, in a form and content acceptable to the Executive Director, that a fee of
$42,120 per unit for 25% (32 units) of the total number of high cost overnight accommodations
(130 high cost hotel rooms) in the approved project, plus a 5% administrative fee, has been paid
to an accepting entity as described further below, in lieu of providing lower cost overnight
accommodations on site.
A. The required in -lieu mitigation fee of $1,415,232.00 (herein 'fee') shall be deposited into an
interest-bearing account, to be established and managed by one of the following entities
approved by the Executive Director of the Coastal Commission (herein 'ED'): the City of
Newport Beach, the California Coastal Conservancy, Hostelling International USA, California
Department of Parks and Recreation, or a similar ED -approved entity, in support of providing
lower cost overnight visitor -serving accommodations such as RV park sites, hostel beds, tent
campsites, cabins or campground units, and/or lower cost overnight accommodation
opportunities in conjunction with an outdoor youth educational program (further described in
subsection B of this condition), within the vicinity of Newport Beach or greater Orange County.
The entire fee and accrued interest (herein 'funds') shall be used for the above stated purpose in
consultation with the ED. All development funded by this account will require review and
approval by the ED and a coastal development permit, if a permit is required. The funds shall be
used in their entirety within ten years of the fee being deposited into the interest-bearing account
established and managed by the accepting entity (or entities). If any portion of the funds remain
in the account after ten years and the ED determines the funds should be reassigned, those funds
shall be donated to an agency or non-profit entity, to be selected by the ED, providing lower cost
overnight accommodations in the Southern California coastal zone to be used for the above
stated purpose.
B. Subject to review and approval of the ED, the City of Newport Beach (herein 'City') may
receive some or all of the funds if the City establishes a program to utilize the funds to provide
lower cost overnight accommodation opportunities (in new or existing facilities) in conjunction
with an outdoor youth educational program (herein 'Program'), in a content and form acceptable
to the ED. The Program shall provide overnight accommodations and educational and
recreational opportunities for disadvantaged youth from Title 1 schools, as defined in the
Elementary and Secondary Education Act, as amended, by providing an outdoor camp -like
experience during the academic school year. The funds for the Program will provide for the
expenses directly related to the overnight stays and coastal -dependent recreational opportunities
such as kayaking, boating, etc. If the City receives some or all of the funds, then the additional
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February 17, 2016
Permit Application No.: 5-14-1785
COASTAL DEVELOPMENT PERMIT
5% administrative fee to the mitigation funds will provide for City staff costs to manage the
program annually. The Program will serve a minimum of 350 students per year, provide a
minimum of 3 -night stays, and will operate a minimum of 10 years from the commencement of
the Program based upon an initial funding. The educational component will focus on ocean
safety, coastal and marine ecology, coastal hazards, and/or other coastal -related topics and the
Program will include water -oriented recreational activities such as kayaking, boating, swimming
or surfing, etc. An annual report on Program accomplishments and finances, as well as any
recommended changes and/or expansions to the Program, shall be transmitted to the ED for the
first 10 years of the Program, or for as long as the funds last, whichever is longer. The Program
may be expanded to accommodate more students, and/or more camp sites, and/or more seasons
of the year, and can be extended past the initial 10 years if existing funds allow or additional
funding is available. Expansion and/or other changes to the program are subject to the review
and approval of the ED, or the Commission itself if the ED determines an amendment or new
permit is required.
C. If the City does not enter into a memorandum of understanding (MOU) with the Coastal
Commission as required in subsection D and implement the above outlined Program within 24
months of issuance of this permit 5-14-1785 all funds shall be assigned to another entity
approved by the ED, in order to be used for the purposes stated in subsection A above.
D. Prior to expenditure of any funds required pursuant to this condition, the ED shall review and
approve in writing, the proposed use of the funds as being consistent with the intent and purpose
of this condition. In addition the entity accepting the funds required by this condition shall enter
into a MOU with the Commission, which shall include, but not be limited to, the following: 1) a
description of how the funds will be used to provide lower cost overnight accommodations
and/or the Program identified in subsection B, above, in the coastal zone; 2) the terms provided
in subsection A, and/or B, if applicable, of this condition; and 3) an agreement that the entity
accepting the funds will obtain all necessary regulatory permits and approvals, including but not
limited to, a coastal development permit; 4) the entity accepting the funds will commence
development of the lower cost overnight accommodations and/or Program identified in
subsection B, above, within 36 months of the MOU date of effectiveness. The ED may extend
the above -identified deadlines, in writing, for good cause.
LANDSCAPING: DROUGHT TOLERANT, NON-INVASIVE PLANTS
By acceptance of this permit, newly landscaped areas onsite shall only consist of drought tolerant
plants native to coastal Orange County and appropriate to the habitat type. Native plants shall be
from local stock wherever possible. No plant species listed as problematic and/or invasive by the
California Native Plant Society (http://www.CNPS.org/), the California Invasive Plant Council
(formerly the California Exotic Pest Plant Council) (htp://www.cal-ipc.orsJ1, or as may be
identified from time to time by the State of California shall be employed or allowed to naturalize
or persist on the site. No plant species listed as a "noxious weed" by the State of California or
the U.S. Federal Government shall be utilized within the property. All plants shall be low -water -
use plants as identified by California Department of Water Resources
(http://www.water.ca.gov/wateruseefficiency/docs/w-ucolsOO.pd .
Page 9
February 17, 2016
Permit Application No.: 5-14-1785
COASTAL DEVELOPMENT PERMIT
8. DEED RESTRICTION
PRIOR TO ANY CONVEYANCE OF THE PROPERTY THAT IS THE SUBJECT OF THIS
COASTAL DEVELOPMENT PERMIT, the landowner shall execute and record a deed
restriction, in a form and content acceptable to the Executive Director: (1) indicating that,
pursuant to this permit, the California Coastal Commission has authorized development on the
subject property, subject to terms and conditions that restrict the use and enjoyment of that
property (hereinafter referred to as the "Standard and Special Conditions"); and (2) imposing all
Standard and Special Conditions of this permit as covenants, conditions and restrictions on the
use and enjoyment of the Property. The restriction shall include a legal description of the
landowner's entire parcel or parcels. It shall also indicate that, in the event of an extinguishment
or termination of the deed restriction for any reason, the terms and conditions of this permit shall
continue to restrict the use and enjoyment of the subject property so long as either this permit or
the development it authorizes — or any part, modification, or amendment thereof — remains in
existence on or with respect to the subject property.
RECEIVED
South Coast Region
SEP 12 2016
CALIFORNIA
COASTAL COMMISSION