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Home My WebLink AboutPC2019-019 - APPROVAL OF A THIRD AMENDMENT TO THE HOAG MEMORIAL HOSPITAL PRESBYTERIAN DEVELOPMENT AGREEMENT NO. DA2018-004 LOCATED AT 1 HOAG DRIVERESOLUTION NO. PC2019-019 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA, RECOMMENDING APPROVAL OF A THIRD AMENDMENT TO THE HOAG MEMORIAL HOSPITAL PRESBYTERIAN DEVELOPMENT AGREEMENT NO. DA2018-004 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. 1. 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"). Ordinance No. 94-8 went into effect on March 16, 1994. The Development Agreement was executed and recorded, as document number 94-0207276, on March 23, 1994. The term of the Development Agreement was twenty-five (25) years. 2. On May 13, 2008, the City Council adopted Ordinance No. 2008-10 approving an amendment to the Development Agreement ("Amendment') that went into effect on June 12, 2008. The Amendment was executed and recorded, as document number 2008000289321, on June 17, 2008. 3. On March 12, 2019, the City Council adopted Ordinance No. 2019-6 approving a second amendment to the Development Agreement ("Second Amendment') that went into effect on April 11, 2019. The Second Amendment was executed and recorded, as document number 2019000188999, on June 3, 2019. The Second Amendment to the Development Agreement extended the Term of the Development Agreement for an additional six (6) months. 4. Hoag has requested a third amendment to extend the Term an additional ten (10) years and includes certain public benefits to the community provided by Hoag ('Third Amendment'). The existing development regulations and required mitigation measures as provided in the Development Agreement and subsequent amendments remain unchanged by this Third Amendment. 5. Section 15.45.040 of the Newport Beach Municipal Code ("NBMC") 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. The Third Amendment meets the requirements of Section 15.45.040 of the NBMC. The Development Agreement and Third Amendment include the permitted uses, density and intensity of development, maximum height and size of the proposed buildings and provisions for reservation or dedication of land for public purposes. None of those provisions are changed by this Third Amendment. This Third Amendment includes the term Planning Commission Resolution No. PC2019-019 Page 2 of 4 and certain public benefits in exchange for vested rights to develop over the Term of the Development Agreement. 6. The Planning Commission held a public hearing on June 20, 2019, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California, at which time the Planning Commission considered the Third Amendment. A notice of time, place, and purpose of the hearing 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 the hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. In accordance with the California Environmental Quality Act ("CEQA") setforth in the California Public Resources Code §§21000, et. seq.) and its implementing State regulations set forth in the California Code of Regulations, Title 14, Division 6, Chapter 3 ("CEQA Guidelines"), the Newport Beach City Council certified Final Environmental Impact Report ("FEIR") No. 142 in 1992 that addressed the potential environmental effects associated with the Hoag Hospital Master Plan development program ("Project"). 2. On April 16, 2008, the City Council certified a Supplemental FEIR (SCH No. 19910071003) ("SEIR") in accordance with Public Resources Code §§21000, et seq. and the State CEQA Guidelines to analyze the potential impacts of the proposed changes to the Hoag Hospital Master Plan development program pursuant to Resolution No. 2008-27. The FOR and SEIR are incorporated herein by this reference. 3. All significant environmental concerns for the Project are addressed in the previously certified FEIR No. 142 and its SEIR. The Third Amendment does not change the Project but rather only extends the term of the Development Agreement and provides for additional public benefits to the community. The Third Amendment does not amend any development standards, development requirements, or required mitigation measures identified in FEIR No. 142 and the SEIR. 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 Third 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 Development Agreement and Amendment provide appropriate development assurances to Hoag to plan for the future while also providing appropriate safeguards to protect the Planning Commission Resolution No. PC2019-019 Page 3 of 4 community. Extending the terms of the existing Development Agreement, which includes additional public benefits, furthers these priorities. 2. The City Council previously found the Amendment and Second Amendment consistent with Section 15.45.040 of the NBMC 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 No. 2008-10 in 2008. With the exception of the term, all of the other necessary components articulated above, remain unchanged by this Third Amendment. 3. The Planning Commission finds the Third 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). a. The Third Amendment to the Development Agreement specifies a term of 10 additional years, consistent with the requirement of NBMC Chapter 15.45 to specify a duration of the agreement. b. Section 5 Agreement requires annual review of Hoag's good faith substantial compliance with the Agreement pursuant to California Government Code Sections 65864-65869.5 and NBMC Section 15.45.080 (Periodic Review). c. The Agreement specifies permitted uses of the property, the density and intensity of use and the maximum height and size of proposed buildings through the Hoag Memorial Hospital Presbyterian Planned Community Development Criteria and District Regulations (PC Text). d. The Agreement requires that Hoag comply with Existing General Regulations and Future General Regulations that do not impair Hoag's ability to develop the property in accordance with the density, intensity, height and location of development specified in PC Text consistent with NBMC §15.45.040 (Contents). SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby recommends City Council adoption of a Third Amendment to Amended and Restated Development Agreement No. 5 between the City of Newport Beach and Hoag Memorial Hospital Presbyterian to extend the term of the amended Agreement by ten (10) years and provide additional public benefits. Except as modified by this Third Amendment, the Planning Commission recommends the Development Agreement, Amendment and Second Amendment remain in full force and effect. Planning Commission Resolution No. PC2019-019 Page 4 of 4 PASSED, APPROVED, AND ADOPTED THIS 20"' DAY OF JUNE, 2019. AYES: Kleiman, Koetting, Kramer, Lowrey, Weigand, Zak NOES: ABSTAIN: Ellmore