HomeMy WebLinkAbout11_Annual Review of the Uptown Newport DA_PA2014-039
CITY OF NEWPORT BEACH
ZONING ADMINISTRATOR STAFF REPORT
May 10, 2018
Agenda Item No. 11
SUBJECT: Annual Review of Uptown Newport Development Agreement
(PA2014-039)
SITE LOCATION: 4311-4321 Jamboree Road
APPLICANT/OWNER: Uptown Newport, LP (TSG-Parcel 1, LLC)
PLANNER: Rosalinh Ung, Senior Planner
(949) 644-3208, rung@newportbeachca.gov
ZONING DISTRICT/GENERAL PLAN
General Plan: MU-H2 (Mixed-Use Horizontal 2)
Zoning District: PC 58 (Uptown Newport)
PROJECT SUMMARY
An annual review of Development Agreement No. DA2012-003 (DA) for Uptown Newport
Planned Community, pursuant to Section 15.45.080 of the Newport Beach Municipal Code
and Section 65865.1 of the California Government Code .
RECOMMENDATION
1) Conduct a public hearing;
2) Find the annual review is exempt from the California Environmental Quality Act
(“CEQA”) pursuant to Section 15321, Class 21 (Enforcement Actions by Regulatory
Agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter
3, because it has no potential to have a significant effect on the environment;
3) Find that the applicant has demonstrated good faith compliance with the terms of
Development Agreement No. DA2012-003; and
4) Receive and file the Annual Report of Development Agreement for Uptown Newport
Planned Community (Attachment No. ZA 2).
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Annual Review of Development Agreement No. DA2012-003
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BACKGROUND
On March 12, 2013, City Council adopted Ordinance No. 2013 -6, approving the DA for
the development of a 25-acre, mixed-use residential project consisting of 1,244 residential
units, two one-acre public parks, and 11,500 square feet of retail uses. The DA became
effective on April 22, 2013. The term of the DA is 15 years, and has two, 5-year extension
options. The earliest expiration could be in 2028.
On April 28, 2015, the City Council approved the First Amendment to the DA that delayed
the timing of payment of public benefit fees and park in-lieu fees.
The DA and its First Amendment are available online at:
http://www.newportbeachca.gov/developmentagreements.
On September 5, 2013, the Planning Commission approved the Master Site Development
Review (MSDR) application for the Uptown Newport project. The Plann ing Commission
also approved prototypical architectural building elevations, master landscape plan and
plant palette, preliminary public parks and paseo plans, preliminary master wall/fence
plans, master signage plans, and preliminary site improvement plans for the entire
development. The purpose of this approval is to ensure that the project will be developed
in a cohesive manner in phases consistent with the Planned Community Development
Plan, Development Agreement, environmental mitigation measures required by
Environmental Impact Report (EIR), and applicable City codes and standards.
On October 1, 2013, the Parks, Beaches & Recreation Commission reviewed and
approved park amenities on the two public park concepts for the Uptown Newport project.
On January 24, 2016, the Community Development Director approved Minor Site
Development Review No. SD2015-004 for the construction of 455 residential apartment
units in two separate buildings, approximately 10,700 square feet of retail use, and a 50-
foot wide paseo within Phase 1 of Uptown Newport Planned Community proposed by the
Picerne Group. The South Building was approved to provide 222 apartment units with
approximately 10,700 square f eet of commercial space on the ground floor. The North
Building was approved to provide 233 units. A 50-foot wide paseo will be developed on
an easement area between the two buildings.
On September 2, 2016, the Community Development Director approved Staff Approval
No. SA2016-010, an amendment to Condition No. 34 of Uptown Newport Tentative Tract
Map No. NT2012-002 (TTM No. 17763), to delay completion of the public sidewalk
reconstruction along the Jamboree Road frontage of the Uptown Newport Planned
Community until occupancy of the Picerne Group’s first residential building or July 31,
2018, whichever comes first.
On January 24, 2017, the City Council approved the issuance of up to $192,000,000 of
multi-family housing bonds by the California Statewide Communities Development
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Authority (CSCDA) to finance the project. The City does not incur any liability for the
CSCDA financing.
On March 23, 2017, the Planning Commission approved Site Development Review No.
SD2017-001, an amendment to the previously approved Master Site Development
Review application to allow alternative locations and phasing of the commercial
component (up to 11,500 square feet). Specifically, the amendment allows Lot 3 (the
Picerne Group’s South Building) to be developed without commercial uses while Lot 2,
located at the intersection of Jamboree Road and Fairchild Road, to be developed with
commercial uses rather than residential uses. The preliminary plans proposed an
approximately 6,500 square feet of retail. Additional commercial uses will be developed
on other lots within the Uptown Newport Planned Community.
On March 24, 2017, the Community Development Director approved Minor Site
Development Review No. SD2017-002 amending Minor Site Development Review No.
SD2015-004 to eliminate the 10,700 square foot commercial component and associated
parking from the South Building. The area formerly planned for commercial use would be
developed with seven additional residential units, for a total of 229 units located in the
South Building of the previously approved apartment project by the Picerne Group. With
the approval of the proposed amendment, a total of 462 apartment units would be
developed, inclusive of the 92 low-income units.
On April 11, 2017, the City Council approved park in -lieu fee credits and payment
requirement for Phase 1 of the Uptown Newport project in the amount of $2,895,686.54.
At the last annual review on May 11, 2017, the Zoning Administrator found that Uptown
Newport demonstrated good faith compliance with the terms of the DA and its First
Amendment.
DISCUSSION
Section 15.45.080 of the Municipal Code requires the City to periodically review
development agreements to determine if the applicant has complied with the terms of the
agreement. This review should be conducted at least once every 12 months.
The applicant is required to demonstrate good faith compliance with the terms of the
agreement, and should the Zoning Administrator find that the applicant has not complied
in good faith with the terms of the agreement; the Zoning Administrator should refer the
matter to City Council.
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Annual Review
The annual review covers the period of May 2017 to April 2018. A summary of
construction-related activities performed by the property owner, its agents and affiliates
during the past year are listed below:
1. Phase I site improvements which include dry utilities, curb and gutter, and street
paving are 90 percent installed with the anticipated completion by November 2018.
Street lights and Phase I landscaping will commence near the completion of the
Picerne Group’s apartment buildings together with the median improvements, median
landscaping, and traffic signal modifications. All this work is anticipated to begin in
July 2018 and conclude by December 2018.
2. Phase 1 perimeter wall is under construction with the anticipated completion by
December 2018.
3. Building permits for the construction of the Picerne Group’s apartment project in
Phase 1 were issued on May 18, 2017. It is anticipated that the South building will be
completed by December 2018, and the North building to be completed by April 2019.
4. The DA provides a statement where the City and the landowner may cooperate in the
undergrounding of the 66KV high voltage power line along Jamboree Road. The City
has participated in design discussions with the applicant and Southern California
Edison (SCE). The plan is currently in the pre-design stage with SCE and a completed
design plan is expected by June 2018. A CFD (Community Facilities District) is being
considered for the funding of the power line and anticipated to be formed by
September 2018.
A total payment of $18,985,299, which includes a park fee of $2,895,687 and a public
benefit fee of $16,089,612 ($32,500 + adjustment for inflation per unit) was submitted for
the Picerne Group’s apartment project. These fees are consistent with the terms of the
DA and its First Amendment.
The applicant has prepared a report with a complete list of accomplishments within the
past year (Attachment ZA 2). After reviewing the attached annual report and applicable
documents, staff believes that the applicant is in good faith compliance with the terms
and conditions of the DA and First Amendment.
ENVIRONMENTAL REVIEW
This annual review is exempt from the California Environmental Quality Act (“CEQA”)
pursuant to Section 15321, Class 21 (Enforcement Actions by Regulatory Agencies) of
the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has
no potential to have a significant effect on the environment. This section exempts actions
by regulatory agencies to enforce or revoke a lease, permit, license, certificate, or other
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entitlement for use issued, adopted, or prescribed by the regulatory agency or
enforcement of a law, general rule, standard, or objective, administered or adopted by the
regulatory agency.
PUBLIC NOTICE
Notice of this review 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 hearing, 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.
APPEAL PERIOD:
An appeal or call for review may be filed with the Director of Community Development within
14 days following the date of action. For additional information on filing an appeal, contact
the Planning Division at 949-644-3200.
Prepared by:
JC/ru
Attachments: ZA 1 Vicinity Map
ZA 2 Uptown Newport Development Agreement Annual Report
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Attachment No. ZA 1
Vicinity Map
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VICINITY MAP
Annual Review Uptown Newport Development
Agreement (PA2014-039)
4311-4321 Jamboree Road
Subject Property
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Attachment No. ZA 2
Uptown Newport Development
Agreement Annual Report
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February 28, 2018
City of Newport Beach
Ms. Rosalinh Ung
100 Civic Center Drive
Newport Beach, California 92660
RE: 2017 Annual Report for Uptown Newport
Development Agreement No. DA2012-003
Dear Ms. Ung,
This Annual Report for the Uptown Newport Development Agreement DA2012-003 (the
“Agreement”) is being provided to the City pursuant to Section 7 of the Agreement , and
is intended to satisfy the annual reporting requirement for Development Agreements
under section 65865.1 of the Government Code. Uptown Newport is a mixed use
development consisting of: 1,244 residential units, 11,500 square feet of retail uses, and
two 1-acre public parks on approximately 25.05 acres of real property located at 4311-
4321 Jamboree Road, Newport Beach, California.
On March 23, 2013 (the “Agreement Date”), the City Council adopted Ordinance No.
2013-6 (the “Adopting Ordinance”), finding the Agreement to be consistent with the
City of Newport Beach General Plan, and approving the Agreement. Because the
Agreement was approved by Ordinance as required under Government Code section
65867.5, and no appeals or lawsuits challenging the validity of the Adopting Ordinance
were filed, the Agreement became effective thirty days after the Agreement Date, or
April 22, 2013.
The Uptown Newport project is proceeding with development of Phase 1 of the Uptown
Newport Planned Community, with site development in process. The current plan for
Phase 1 is to develop approximately 458 apartment units in two buildings on the parcels
that front Jamboree Road and for-sale townhomes or condominiums on the parcels that
surround the Phase 1 Park and approximately 6,500 square foot of retail /commercial at
the Jamboree/Uptown Newport Drive entry. The number of for-sale units has not yet
been determined. The apartment buildings will include approximately 92 affordable
apartment units that will be incorporated into the same buildings a s the market rate
apartments. An updated schedule of development activities planned for Phase 1
development is provided below for your reference. Please note that this is a tentative
schedule and subject to change:
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1. Design of the 66KV undergrounding on Jamboree Road fronting the Uptown
Newport project was initiated between the City of Newport Beach and Southern
California Edison in September, 2015 and is currently in the pre-design stage
with SCE with completed design expected by the end of end of the second
quarter of 2018. Formation of the CFD (Community Facilities District) is
anticipated to be formed by Third quarter -2018.
2. Construction of the two apartment buildings began May 2017. It is anticipated
that the south building will be completed by the end of 2018 with the north
building in the 1st quarter of 2019.
3. Phase I site improvements are anticipated to be completed by the end of
November 2018, which includes the remainder of the dry utilities, street lights
and electrical energizing. Also includes the remainder of the streets, curb and
gutter, perimeter walls, and final cap street paving and street striping. Phase I
landscaping will commence near the completion of the apartment buildings
together with the median improvements, median landscaping, and traffic signal
modifications. All this work is anticipated to begin by mid-summer 2018 and
conclude by December 2018.
4. The city approved an amendment to the Uptown Master Site Development Plan
in March 2017. The amendment included the relocation of a portion of the
11,500 sq. foot of the commercial/retail (approximately 6,500 sq. ft.) area from
Lot 3 (apartment lot ) to Lot 2 of the Uptown Newport Phase I development plan.
Plans are currently in design to construct two commercial/retail buildings on Lot
two.
5. The ammonia tank relocation on Tower Jazz site is all but complete. The
contractor is in the final phase working on control panel tie-ins for emergency
notification and obtaining Fire Department inspection approvals.
TSG-Parcel 1, LLC, as the Assignee of Uptown Newport, LP, and has complied in good
faith with the terms and conditions of the Agreement. A summary of the activities
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performed by the Landowner, its agents and affiliates during the past year are provided
below for the City’s review:
Phase I site grading was completed July 2016.
Phase I underground utilities were 90% completed September 2016
Street improvements were installed to the 90% completion level, which included
approximately 80% of the curb and gutter installed and first lift of AC pavement in
September 2017.
Construction of the apartments began May 2017 beginning with the two levels down of
subterranean garage. The apartment buildings are now vertical, working on the second
level up above ground level.
Started perimeter wall construction December 2017.
It should be noted that the issuance of building permits for the two apartment buildings
generated the payment of $20,833,103 in city fees, which included the public benefit
fee, park fees, and building permit issuance fees.
We look forward to continuing our development efforts for Uptown Newport, and
appreciate the City’s cooperation in our efforts. Please contact me at (949) 417-1867 or
at jsantry@shopoff.com. Should you have any questions or require additional
information.
Sincerely,
John Santry
Executive Vice President – Acquisitions and Development
Cc: Gregory Powers, Jackson Tidus
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