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HomeMy WebLinkAboutPC2019-003 - AMENDMENT TO EXTEND THE TERM OF THE HOAG MEMORIAL HOSPITAL PRESBYTERIAN DEVELOPMENT AGREEMENT (DA2018-001) - 1 HOAG DRIVERESOLUTION NO. PC2019-003 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH RECOMMENDING APPROVAL OF AN AMENDMENT TO EXTEND THE TERM OF THE HOAG MEMORIAL HOSPITAL PRESBYTERIAN DEVELOPMENT AGREEMENT (DA2018-001) LOCATED AT 1 HOAG DRIVE (PA2018-024) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. On February 14, 1994, the City Council of the City of Newport Beach ("City') adopted Ordinance No. 94-8 approving Restated Development Agreement No. 5 (`Development Agreement') between the City and Hoag Memorial Hospital Presbyterian (`Hoag"). The adopting ordinance became effective on March 16, 1994. 2. On May 13, 2008, the City Council adopted Ordinance No. 2008-10 approving an amendment to the Development Agreement (`Amendment') and this ordinance became effective on June 12. 2008. 3. Section 6.3, "Term of Agreement," of the Development Agreement provides a twenty five (25) -year term from the effective date of the original adopting ordinance, and therefore, the Development Agreement as amended expires on March 15, 2019. 4. Hoag applied for a second amendment to the Development Agreement ('Second Amendment') to extend the twenty five (25) -year term an additional twenty five (25) years. The application requests no other changes to the Development Agreement, as amended, or to existing development regulations. 5. Newport Beach Municipal Code ("NBMC") Section 15.45.040 requires that development agreements include the term, permitted uses, density and intensity of development, maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes. 6. The Development Agreement provides the necessary considerations of Section 15.45.040 and it includes certain public benefits in exchange for vested rights to develop over the initial twenty five (25) -year term of the agreement, as amended. 7. The Planning Commission held a public hearing on January 17, 2019, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California, at which time the Planning Commission considered the Second Amendment. A notice of time, place, and purpose of the hearing was given in accordance with the NBMC. Evidence, both written and oral, was presented to and considered by the Planning Commission at the hearing. Planning Commission Resolution No. 2019-003 Pape 2 of 3 SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. In accordance with the California Environmental Quality Act ("CEQA") (Cal. Pub. Res. Code §§21000, et seq.) and its implementing State regulations (CEQA Guidelines) (14 Cal. Reg. §§15000, et seq.), the City of Newport Beach (`City") prepared Final EIR No. 142 which was certified by the City of Newport Beach in 1992. Final EIR No. 142 was prepared to address the potential environmental effects associated with the Hoag Hospital Master Plan development program ("Project"). Final EIR No. 142 addressed potential environmental effects associated with the phased reconstruction and development of the property's Upper Campus and Lower Campus. Final EIR No. 142 includes a supplemental EIR volume (Final EIR No. 142, Volume V), which was prepared in accordance with CEQA Guidelines §15163, to provide clarifications to the EIR and project, and was distributed before Final EIR No. 142 was certified. 2. A Supplemental Final Environmental Impact Report (SCH No. 19910071003) ("SEIR") was prepared in accordance with the provisions of CEQA, Public Resources Code §§21000, et seq., and the State CEQA Guidelines, California Code of Regulations §§15000, et seq. The purpose of the SEIR was to analyze the potential impacts of the proposed changes to the Hoag Hospital Master Plan development program. The City Council considered and certified the Supplemental Final Environmental Impact Report on April 16, 2008, by adopting certain CEQA Findings of Facts and a Statement of Overriding Considerations contained within Resolution No. 2008-27, which are hereby incorporated herein by this reference. 3. All significant environmental concerns for the Project have been addressed in the previously certified Final Environmental Impact Report No. 142 (certified 1992) and its Supplemental Final Environmental Impact Report (certified 2008). The proposed Second Amendment only extends the term of the Development Agreement and does not amend any development standards, development requirements, or required mitigation measures identified in FEIR No. 142 and the Supplemental FEIR (SCH No. 19910071003). 4. The Planning Commission finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, Project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger. SECTION 3. FINDINGS. 1. The Planning Commission finds the Second Amendment is consistent with the General Plan Policy LU 6.1 Strategy 6.1.5 by supporting Hoag in its mission to provide adequate facilities to meet the needs of area residents and by working with Hoag to ensure that future development plans consider its relationship to and assure compatibility with adjoining residential neighborhoods and mitigate impacts on local and regional transportation systems. The existing Amended Development Agreement provides appropriate development assurances to Hoag to plan for the future while it provides appropriate safeguards to protect the community. Extending the terms of the existing agreement furthers these priorities. Planning Commission Resolution No. 2019-003 Paae 3 of 3 2. The City Council previously found the existing Amendment consistent with NBMC Section 15.45.040 as it included all the necessary components including the term, permitted uses, density and intensity of development, maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes when it adopted Ordinance 2008-10 in 2008. The Planning Commission finds the Second Amendment to the Development Agreement is consistent with provisions of state law (California Government Code Sections 65864-65869.5) and local law (NBMC §15.45) that authorize binding agreements that: (i) encourage investment in, and commitment to, comprehensive planning and public facilities financing; (ii) strengthen the public planning process and encourage private implementation of the local general plan; (iii) provide certainty in the approval of projects in order to avoid waste of time and resources; and (iv) reduce the economic costs of development by providing assurance to the property owners that they may proceed with projects consistent with existing policies, rules, and regulations. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: The Planning Commission of the City of Newport Beach, California hereby recommends City Council adoption of a Second Amendment to the Amended and Restated Development Agreement to extend the term of the agreement by six (6) months. PASSED, APPROVED, AND ADOPTED THIS 17th DAY OF JANUARY DAY 2019. AYES: Kleiman, Koetting, Kramer, Lowrey, Weigand and Zak NOES: ABSTAIN: Ellmore ABSENT: