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NEWPORT BEACH PLANNING COMMISSION <br />12/06/2018 <br />Senior Planner Jaime Murillo reported the project site is located in the Airport Area, with John Wayne Airport to <br />the west and the City of Irvine to the north and east. The Airport Area is predominantly developed with office uses <br />and commercial and industrial uses. The General Plan Update, in 2006, identified the Airport Area as an area for <br />potential redevelopment of underutilized sites for mixed-use residential development. The project site is located <br />within the Newport Place Planned Community, which was developed in the early 1970s for office, retail, and hotel <br />uses. In 2012, the Planned Community was amended to include a residential development overlay that allows the <br />development of residential projects with a component of affordable housing. Projects with 30 percent of the units <br />reserved for low-income households can be developed within the Newport Place Planned Community. <br />The Uptown Newport mixed-use project is the first residential project approved in the Airport Area and is under <br />construction. The project site is currently developed as MacArthur Square Shopping Center and contains three <br />parcels totaling 5.69 acres. MacArthur Square Shopping Center contains 58,277 square feet of retail and <br />commercial uses in eight single -story buildings. The project proposes the shopping center be demolished and <br />replaced with a mixed-use development. The development consists of 350 rental residential units, of which 259 <br />are considered base units and 91 are considered density bonus units; 7,500 square feet of nonresidential <br />development, of which 2,000 square feet will be used for a casual restaurant use and 5,500 square feet for general <br />commercial and retail uses; and a half -acre public park. The General Plan and the Planned Community limit the <br />density to be trip neutral and cannot exceed a maximum density of 50 dwelling units per acre. After deducting the <br />half acre for the park, the remaining project site contains 5.19 acres. Multiplying 5.19 acres by 50 units (the <br />maximum density) results in 259 dwelling units. However, because the project contains 78 affordable units, <br />consistent with the residential overlay of the Planned Community, the project is eligible for a density bonus under <br />the Newport Beach Municipal Code and the State Density Bonus Law. The project is eligible for the maximum <br />density bonus, which is 35 percent of the number of base units or 91 bonus units. The residential units will wrap <br />around a central parking structure comprised of six levels and up to 740 parking spaces. The commercial <br />component of the project is located at the intersection of Martingale Way and Corinthian Way. Vehicular access <br />will be through two driveways, one off Martingale Way and one off Scott Drive. The public park will be located on <br />the southern portion of the site. The park will be dedicated to the City and be improved and maintained by the <br />developer. Park amenities include a dog park, a bocce ball court, a pickleball court, a play lawn and playground <br />structure, a fitness terrace, a dining terrace, and seating walls. The Recreation and Senior Services Department <br />has reviewed and supports the plan. Staff will present the park design to the Parks, Beaches and Recreation <br />Commission for review and recommendations on February 5, 2019, and return to the Planning Commission in <br />February or March 2019. The residential buildings will have four and five -level facades that screen the central <br />parking structure. For the Planning Commission's future consideration are applications for site development <br />review, lot line adjustment, and Affordable Housing Implementation Plan (AHIP). The Newport Place Planned <br />Community Residential Overlay is required by the City's Housing Element, provides zoning, and is intended to <br />eliminate development constraints to affordable housing. The standards allow development of up to 50 dwelling <br />units per acre plus any additional units allowed through a density bonus; require a minimum 30 -foot setback from <br />streets and 10 -foot setbacks from interior property lines; establishes a 55 -foot height limit; allows a greater height <br />limit through site development review; requires a higher level of amenities; and ensures neighborhood integration. <br />The mixed-use development site will be divided into two parcels, one for the development and one for emergency <br />access and parking for the public park. The third parcel consisting of 0.5 acre will be the public park. The AHIP <br />will ensure development includes the minimum 30 -percent (78 units) allocation for low-income units. By providing <br />affordable housing, the project is eligible for the 91 unit density bonus and entitled to reduced residential parking <br />ratios, two development incentives, and a development waiver. Using the density bonus standard, the total number <br />of required parking spaces is 474; however, the project proposes 661 parking spaces. The applicant requests <br />only one development incentive to modify an overlay requirement such that the project could have a higher <br />allocation of studio and one -bedroom units. The applicant requests a waiver of the 55 -foot height limit to allow <br />rooftop features consisting of elevator shafts, stair towers, mechanical equipment, the highest level of the parking <br />deck, and a rooftop amenity. PlaceWorks has prepared a Draft Environmental Impact Report (DEIR) for the <br />project, and the DEIR was released for public review on November 30, 2018. Potential significant impacts were <br />identified in the DEIR areas of air quality, biological resources, cultural resources, hazards and hazardous <br />materials, and public services; however, mitigation measures can reduce the potential impacts to less than <br />significant levels. The public comment period for the DEIR ends on January 14, 2019. <br />Dan Vittone of Starboard Realty Partners, the applicant, advised that the prior owner of the site submitted an <br />application to develop a mixed-use project, and the Planning Commission denied the application in 2016. With <br />respect to concerns raised regarding the prior application, the Newport Crossings project will adhere to and exceed <br />setback requirements; comply with the 55 -foot height limit in all livable areas; have approximately 50 -percent more <br />2of12 <br />