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HomeMy WebLinkAbout10/25/1999 - Study Session0 CITY OF NEWPORT BEACH City Council Minutes Study Session October 25, 1999 - 4:00 p.m. ROLL CALL INDEX Present: Adams, Glover, Ridgeway, Noyes, Mayor O'Neil Absent: Debay & Thomson (excused) 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR. Council Member Glover asked for clarification on Item 3, Santiago Drive Speed Limit. She noted the list of key actions in the Expanded Santiago Drive Implementation Plan, which included the development of a comprehensive traffic calming program to be used throughout the City. Council Member Glover stated that such a program would take four to five years to develop and she did not remember it being a part of the Council's action at the previous meeting. Public Works Director Webb stated that the • concept of the program was to put together a list of the items that could be used for traffic calming, including the criteria that would be used to evaluate various neighborhoods, if the need arose. He clarified that this would provide Citywide criteria and would not include actual studies of individual neighborhoods. City Manager Bludau read from Volume 53, Page 19 of the September 27, 1999, minutes, and stated that the motion does include direction to proceed with the Santiago Drive Implementation Plan. Council Member Glover confirmed with City Manager Bludau that the Citywide program would not interfere with the Santiago process. Council Member Adams stated his intent in making the motion was to develop a comprehensive list of traffic calming measures, including when and where they are appropriate. He stated that this would provide criteria for when other parts of the City are looking for traffic calming measures. He added that the most important part of the motion was to enact measures in the Santiago Drive area that would be appropriate for other similar streets in the City, and not give the area special treatment. Referring to Item 10, Agreement for Construction of Improvements at 3619 Ocean Boulevard, Council Member Ridgeway asked why only 50% of the estimated cost of the improvements is being set -aside in sureties. Public Works Director Webb stated that the improvements are not entirely offsite, and that the retaining wall is being built in order to allow the structure to be occupied. City Clerk Harkless clarified for the City Council that for Item 15, • Appointments to the Harbor Quality Citizens Advisory Committee, the District 1 appointment is Nancy Gardner, not Susan Gardner as indicated on Volume 53 - Page 33 • • City of Newport Beach Study Session Minutes October 25, 1999 the agenda. 2. MARINAPARK HOTEL PROPOSAL. City Manager Bludau stated that the item is before the City Council because the City received a development proposal from Sutherland Talla Hospitality, and he felt that a Study Session would be the appropriate way to introduce it. City Manager Bludau stated that his intent is for the City Council to focus on the policy issues and the process for looking at the proposal, rather than the details of the proposal itself. He stated that, for this reason, the staff report includes information on the background and use of the property, as well as the status of the current leases. City Manager Bludau referred to the information in the staff report about the mobile home park, the American Legion, City Council Policy F -7 (Income Property), the Marinapark Revenue Study, and the history of the prior Council authorizations and action by the City regarding the property site. He also noted the six possible alternatives listed in the staff report that the Council might want to consider. Stephen Sutherland, Principal Partner, Sutherland Talla Hospitality, stated that he has spent ten months looking at options for resort development on the Marinapark site. He stated that the proposal submitted to the City describes a redevelopment of the property into a 156 -room five star resort to be operated by Regent International Hotels. Mr. Sutherland stated that he was available to answer any questions. Tom Hyans, Central Newport Beach Community Association ( CNBCA), stated that he spoke with Mr. Sutherland regarding the proposal in July. He stated that the CNBCA has, for years, supported the long -term renewal of the American Legion and mobile home park leases. He stated that the CNBCA has reviewed and discussed the conversion of the property to public use for recreation, such as described in the Marinapark Planning Study dated June 20, 1972, but has never adopted a policy to support the conversion of the property to full recreational use. The CNBCA also opposes the increase of hotel capacities and new hotel construction within its boundaries or near the beach or other recreational areas of the Peninsula. Mr. Hyans added that the CNBCA also opposes any change in use in the City -owned area between 15th and 19tb Streets, on the bayside of Balboa Boulevard. He stated that he personally remembers that Sections D and E in the mobile home park leases, as mentioned in the staff report, were included only to circumvent liability for compensation to the lessees. He concluded by stating that he feels that the proposed project location would upset the fragile balance of the residential and public neighborhoods in a negative way. Paul Curtis, Commander, American Legion Newport Harbor Post 291, stated that many years ago, the American Legion traded a piece of property with the City for the lease they currently have. He stated that, although he recognizes that the current City Council may not be legally bound by the terms and conditions of the original transaction, he wanted to present the American Legion's position. Mr. Curtis stated that Post 291 has 2,000 Volume 53 - Page 34 INDEX Marinapark Hotel Proposal (73) City of Newport Beach Study Session Minutes October 25, 1999 INDEX • members, a ladies auxiliary with 503 members, the Sons of the American Legion with 350 members, and the American Legion Yacht Club with 766 members. He stated that the Post attracts quality members and is the second largest post in the State of California. He stated that the Post was recently honored as being the most generous Post in giving to the needs of disabled veterans, and that they strive to be a good neighbor in a number of ways. Mr. Curtis mentioned the fundraisers held at the facility, the sharing of the use of the facility, the hosting of disabled veterans who are otherwise bedridden, the Old Glory Character Boat Parade, the law and order program, and the sailing program for the visually impaired. Mr. Curtis asked that the City Council commence negotiations for the long -term renewal of the American Legion lease at the current location. He concluded by stating that Post 291 is ready to work with the City in creating a more desirable community. Val Skoro, 1601 Bayadere Terrace, Vice Chairman, Parks, Beaches & Recreation Commission (PB &R Commission), stated that in October of 1997, the PB &R Commission voted to recommend to the City Council that the area, including Marinapark but excluding the American Legion, be used for recreational purposes at the expiration of the leases on the site. He said he understands that the City needs to generate revenue, but he wanted to point out that the PB &R Commission has provided its recommendation on the matter. Peter Tarr, P. O. Box 2231, Newport Beach, stated that the Peninsula and • the West Newport areas are already crowded areas and difficult to access. He stated that the upcoming lease expirations provide the City with the opportunity to provide additional public access to the bay and the recreational facilities. He stated that he believes that the Girl Scout House and the American Legion should be left at the site. He added that he does not feel that a hotel is an appropriate use of the site due to the present traffic situation, and could be placed elsewhere on the Peninsula. Mr. Tarr concluded by stating that eliminating public access to the area would be a poor decision. Cary Lowe, Attorney, Jenkens & Gilchrist, 12100 Wilshire Blvd., representing the Marinapark Homeowners Association, stated that the Association recognizes that the City will consider other uses for the site. He stated, however, that he's surprised with the process that is taking place. Mr. Lowe stated that until there is a resolution of the possible tidelands status, it's questionable about what uses will be permitted. He said that the policies of the State Lands Commission and the Coastal Commission would disallow an exclusive luxury hotel on the site with beach access limited to guests of the hotel, if any of the site is determined to be tidelands. Mr. Lowe stated that, in the meantime, it does not justify consideration of the current proposal, which is only showing pretty pictures and no backup regarding financial commitment. He added that the City's own policy provides for a competitive open bid process when looking at a proposal for leasing City property. He stated that he also foresees strong environmental opposition to • the hotel proposal. He said that it is critical to decide what to do with the current tenants, regardless of what use of the site is decided upon. He Volume 53 - Page 35 City of Newport Beach Study Session Minutes October 25, 1999 INDEX • suggested extending the leases for the current users of the property. Mr. Lowe concluded by stating that the City can certainly continue looking at alternatives for the site, but it should table any particular focus on the hotel proposal. Council Member Ridgeway confirmed that the City cannot take any definite action for the site until the determination is made by the State Lands Commission, but he asked Mr. Lowe why the City wouldn't want to request proposals from all of the current lessees. Mr. Lowe responded that a broader evaluation of future uses for the site is not a waste of time, but it must be recognized that it all depends upon what the State Lands Commission decides. He additionally disagreed with the staff report's reference to residential use not being allowed at the site if it is determined to be tidelands, and said there are other locations in the state that have mobile home parks on similar trust properties. He said the issue is how the public access is maximized on these lease trust lands. Council Member Ridgeway stated that he had hoped the current meeting would only consist of a presentation on the historical and current status of the property. He confirmed with Mr. Lowe that he feels the City should look at proposals from the current lessees. Council Member Ridgeway said that considering proposals while the State Lands Commission is making its determination helps to reduce the uncertainty of what will happen to the property in the future. Mr. Lowe agreed and suggested that the current leases be extended for that reason. He said that the Association will want to • participate in the broader look at uses for the site. Joanne Walker, 307 Balboa Island, stated her concern for any project that would bring more people from outside the City onto the Peninsula when it is already so overcrowded. She stated that Newport Beach is a beautiful place and should be more residential - friendly. She said that she would be willing to pay higher taxes to save her privacy and to keep the streets and beaches from being overcrowded. Ms. Walker stated that the current uses at the site should remain and increased revenues should be looked for elsewhere. John McDaniel, 1770 W. Balboa Blvd., stated his opposition to a hotel being built on the American Legion site. He said there is a lot of history at the American Legion and it honors the people who served our country in war. He said the location includes a memorial hating all the members who have been given the Congressional Medal of Honor. He said the site also includes the American Legion Yacht Club, which is the only one in the world and has been recognized by the Southern California Yachting Association as the Yacht Club of the Year, four of the last five years. He said the American Legion has been a good neighbor and prior City Councils have recognized its importance. He said it is unacceptable to move the American Legion from its current site. Martha Durkee, Balboa, stated that if the proposed hotel is constructed, it will be at a cost to the Newport Beach taxpayers and residents. She stated • that the playground, the tennis courts and the bay beach would become unavailable to the public. She said that the mobile home park tenants have Volume 53 - Page 36 • City of Newport Beach Study Session Minutes October 25, 1999 INDEX offered to pay higher rent, while keeping the area clean, welcoming the public's use of the beach, having a low crime rate and adding few car trips to the area's roadways. She said that the American Legion has offered their site for public meetings and has been a good member of the community. Ms. Durkee expressed her frustration with the traffic complaints in the City and the need to welcome the visitor to the City, while forgetting the residents. She concluded by saying that facilities that serve the citizens should be considered as being the best use of the site. She said that a hotel won't honor our veterans or provide any service to the residents. Stewart Berkshire, 1770 W. Balboa Blvd., stated that he has been involved with the issue since 1992 or 1993, when the renewal of the mobile home park lease was discussed. He said that the lease negotiated in 1985 was at fair market value, with provisions for increases each year in connection with the cost of living. He stated that, two years ago, the residents offered to enter into a new lease with the City. And, the residents, at their own expense, conducted an analysis of rental properties of mobile home parks around the bay and determined fair market value. He said that nothing has been done since, pending the decision of the State Lands Commission. He said that the Keyser Marston study concluded that a hotel would produce the most revenue to the City for the site, per square foot. Mr. Berkshire stated that using square feet is misleading and a statistical lie. He concluded by stating that the income to the City from the mobile home park lease is guaranteed, and not dependent on the economic success of an individual enterprise. • Council Member Noyes asked about the rate increase offered by the mobile home park residents. Mr. Berkshire explained that he personally offered the City $5,000 in August or September of 1997, if the City would start negotiations. He said that the fair market study done by the residents concluded that $5,000 was the additional rent the City would realize per year if the mobile home park rents were brought up to fair market value. He further confirmed that the rent offered by the residents at the time would've brought the City $1 million per year. Mildred Litke, Harbor Island Drive, stated that she sees several problems with a hotel being built at the site. She said that the number one issue is traffic and parking, which would be made worse by a hotel. She said that a hotel is not a viable economic option, and cited the four properties that she'd contacted earlier in the day and their high rate of vacancies, including some which were half empty. She said that the mobile home park revenue is guaranteed. Ms. Litke stated that there is also the philosophical issue in deciding if the City wants to cater to its residents or become a commercial entity. She said that she would like to continue enjoying the bay beach. Mr. Sutherland responded to several of the statements made by the speakers. He stated that he also contacted several hotels in the area, and said that the Four Seasons, with room rates beginning at $390 per night, was 100% occupied for the upcoming weekend. He stated that the Ritz Carlton, which he considers would be the proposed hotel's main competition • and charges $650 per night for a standard room with ocean view, is also 100% occupied for the upcoming weekend. He said that the Hyatt Regency Volume 53 - Page 37 City of Newport Beach Study Session Minutes October 25, 1999 INDEX • was also nearly full the weekend prior. Mr. Sutherland stated that he has met with representatives of the American Legion and is very understanding of their situation. He has offered to negotiate with them in moving them to a different location, which would provide a structure, either existing or new, of at least the same size as the current structure and would also be located on the waterfront. Mr. Sutherland stated that the mobile home park has only fifteen Newport Beach residents that live there fulltime. He said that the property has the ability to generate at least $2.8 million, annually. He said a hotel could provide funds that could be used to enhance the services offered by the City. Mr. Sutherland also clarified that the proposed project would rebuild the tennis courts, double their number and that they would remain available for free use to all residents of Newport Beach. He said that the existing playground would be moved to a site adjacent to the Girl Scout House, and it also would be improved, enlarged and remain open to the public. He concluded that the proposal does benefit the residents of Newport Beach, it maintains access to the property and provides revenue to the City. He asked that the City Council approve Option #2 in the staff report, analyzing and considering the Sutherland Talla proposal. Virginia Herberts, Balboa Peninsula Point Association, stated that the Association's board supports the continuation of the current leases and uses • of the property. She stated that they are opposed to the use of the property for a hotel. Council Member Ridgeway clarified with City Manager Bludau that the City Council is only being asked to provide direction at the current meeting, and not take formal action. City Manager Bludau stated that the City Council could decide to take more definite action, if it desired. Council Member Ridgeway expressed his concern regarding prior City Council discussions and the decision to not take action at study sessions. Council Member Adams stated that he did not see any problem with the City Council providing staff with guidance, but that he would be concerned with making policy decisions at study sessions. He added that he was uncomfortable considering the current proposal on its own, and that the State Lands Commission ruling needs to comes first. Council Member Adams said that the issue is one of land use, not just of revenue. He stated that he thinks the City should first decide what land use would be appropriate for the site and then solicit proposals for that type of use. He said the process should include the Planning Commission, and hearing its recommendation for the land use, or uses, on the site. Council Member Noyes stated that everything will still be held up until the State Lands Commission makes its ruling. He suggested that maybe the City should focus on receiving that ruling first. • Council Member Ridgeway disagreed with Council Member Adams that the Volume 53 - Page 38 City of Newport Beach Study Session Minutes October 25, 1999 IIJ1 • issue is one of land use. He stated that he sees it as a policy decision issue, and disagrees that the Planning Commission should make the land use recommendation. Council Member Ridgeway stated that he has been attempting to clean up the Peninsula while, at the same time, rejuvenating it. He said that he doesn't feel that a hotel in that location would generate the kind of income suggested in the proposal. Council Member Ridgeway thinks that proposals from all lessees should be requested and more than revenue should be considered, although he also understands that the City needs to look at ways to create income. He said the City Council will eventually have to make the tough decision of what to do with the property, and he has had several people ask that the City Council do what's best for the Peninsula. He added that since there is resistance to two -story mobile home parks, the residents of Marinapark should make their proposal on the basis of a single story mobile home park. He said that all of the various land use options need to be looked at, and the people who will be affected by the decision need to be considered. He concluded by stating that it is a very complicated issue. Council Member Glover agreed with Council Member Ridgeway's comments about putting the issue into local context and how it affects the residents on the Peninsula. She stated that the Coast Highway /Newport Boulevard intersection is the heaviest traveled intersection in the County and in her district. She stated that for this reason, her interest in the Peninsula and the type of traffic that it attracts has increased. Council Member Glover said that everyone always complains about too much traffic and not enough • parking, but that she won't know what impact a hotel would have until all of the facts are presented. She said that the City Council must consider revenue when making these types of decisions. She suggested that the City Council direct staff to proceed with Options 2, 3, 4 and 5 in the staff report. She said this will give everyone the right to bring forward a proposal, and give the City an opportunity to see what the effects of the various options would be. She said that she's not certain that the decision by the State Lands Commission will greatly affect what is decided for the property and that the Coastal Commission is concerned about public access to the beaches, which a hotel property could provide. Mayor O'Neil stated his support for Options 2, 3, 4 and 5; which would direct staff to analyze and consider the Sutherland Talla proposal, request proposals from other lessees, request proposals from other potential developers, and consider them all together. Mayor O'Neil also agreed that the State Lands Commission issue should possibly be agendized, but pointed out that the City has already gone on record to support the uplands interpretation. He agreed further that residential uses have been allowed on tidelands and could be done. Mayor O'Neil concluded by stating that there is a lot of flexibility in what can be done and the City should look at all the various options, and then make the decision based on what is best for the community and what is best for the City in the future. He said it may be determined that what is currently at the site may remain, but the City won't know if that's the best choice until all of the possible uses have been looked • at. He said that if the State Lands Commission determines that the site is tidelands, it may end up in court. He said the issue is very confusing and he Volume 53 - Page 39 City of Newport Beach Study Session Minutes October 25, 1999 • is totally open minded about what happens at the site, whether it is public open space or providing more revenue to the City. Mayor O'Neil stated that while the various proposals are being looked at, he feels that the mobile home park lease should be extended for one year as is being proposed for the American Legion at the evening meeting (Item 13). He knows the final decision on the property will be a tough one, as it always is when trying to balance economic interests with quality of life. City Manager Bludau confirmed with Mayor O'Neil that the Sutherland Talla proposal would be analyzed and considered with all of the other proposals, after they come in. He continued by stating that staff will request proposals from other lessees, as well as other potential developers. 3. BALBOA PIER PARKING LOT REDESIGN Public Works Director Webb introduced Tony Brine, Senior Civil Engineer, to give the presentation on the process that the City has gone through in looking at the Balboa Pier parking lot area. Mr. Brine stated that he would provide a summary of the report that was prepared by Austin -Foust Associates. He stated that the goals of the study were to look at the existing parking lot and determine if a redesign could be done to improve vehicle circulation and pedestrian access. He stated that the goals also included determining if the number of parking spaces could be increased, if a bus layover area could be provided, and if the landscaping • could be improved. Mr. Brine stated that the process incorporated three public workshops to solicit input from residents and business owners in the Balboa area. He stated that seven alternative plans were developed and reviewed, and that he would go through each of the alternatives. Mr. Brine provided an overhead illustration of the existing parking lot plan, and pointed out the inefficient use of space. He then showed Alternative 1, which was recommended as a result of a study done in 1991. He said there is a net gain of 84 parking spaces with Alternative 1. Council Member Glover confirmed with Mr. Brine that one of the goals of the study was to look at potential ways to increase the number of parking spaces in the lot. It was further confirmed that the parking spaces, both inside and outside the lot, would be available to visitors of both the beach and the village area. Council Member Ridgeway stated that he has read the staff report, that the matter has been reviewed by PROP (Ad Hoc Committee to Promote the Revitalization of the Balboa Peninsula) and that he favors looking more closely at Alternatives 1 and 6A. He stated that unless any of the council members disagree, he did not need to hear the history of Alternatives 2, 3, 4 or 5 at the current meeting. • Council Member Noyes agreed and stated that it has been a thorough two- Volume 53 - Page 40 INDEX C- 3209(A) Balboa Pier Parking Lot Redesign (38) • City of Newport Beach Study Session Minutes October 25, 1999 INDEX year process in developing the alternatives. Assistant City Manager Wood stated that the BPPAC (Balboa Peninsula Planning Advisory Committee) study resulted in recommendations to increase the parking spaces in the Balboa lot to offset the spaces that may be lost in other nearby locations to accommodate landscaping improvements. She said this would assist the City in its presentations to the Coastal Commission. Council Member Glover stated that nothing is accomplished by merely increasing parking spaces on the Peninsula, but can understand the Coastal Commission reason. Council Member Noyes confirmed that PROP has been sensitive to just increasing parking on the Peninsula. Mr. Brine stated that an issue that did come out of the public workshops was if landscaping opportunities in the Balboa lot should be replaced with additional parking spaces. He said that the Parking Summary information in the Alternative 1 diagram shows a net gain of 49 parking spaces but an additional 35 could be obtained, for a total of 84 as mentioned earlier, if the landscaping opportunities were not chosen. Mr. Brine said that the consensus in the public workshops was to include the landscaping opportunities. He said that Alternative 1 was one of the alternatives favored • in the workshops. He said it provides for bus layover, which would include space for tour buses as well as OCTA (Orange County Transportation Authority) buses. He said the space would be outside of the pay lot and large enough for four to six buses. Mr. Brine then displayed Alternative 6A and stated that it was another alternative favored in the public workshops. He said it was developed as part of a concept submitted by the Theatre Arts Center and increases the metered parking lot area to provide for more parking outside of the pay lot, which would service the village more. He said the alternative also provides a bus layover area. Mr. Brine stated that the cost of Alternative 6A would be $663,000. He said that existing funding in the budget for the project is $430,000, and that additional funds may be available in the offstreet parking fund. He added that the net gain in parking spaces with the alternative is 40 spaces, if the landscaping opportunities were not chosen. Council Member Noyes asked what the timeframe would be for completing the project if Alternative 6A is chosen. Public Works Director Webb stated that the design process and Coastal permit process would have to be done first. He said that construction could begin in the Fall of 2000, with completion prior to the following summer. Council Member Noyes stated his concurrence with Council Member Ridgeway's choice of Alternative 6A. • Council Member Adams confirmed with Mr. Brine the location of the pay booth in the lot. Mr. Brine stated that Alternative 6A currently provides for Volume 53 - Page 41 • is • City of Newport Beach Study Session Minutes October 25, 1999 a single exit lane, but that a traffic queuing study was not done. He said that there is room to add a second exit lane, if desired. Council Member Adams suggested that two exit lanes be provided. Council Member Adams inquired about the absence of a stop light at Washington Street and the reason for having a stop light at Palm Street. Transportation)Development Services Manager Rich Edmonston explained that the signal at Palm Street was put in because of the high rate of pedestrian accidents in the area. He added that the stop light at Main Street was put in due to the high pedestrian traffic, which had previously limited vehicle movement. Council Member Adams asked if the buses in the bus layover area would be allowed to idle. Mr. Brine stated that the intent would be to disallow idling, and is one of the reasons for adding the bus layover area. Council Member Adams asked if the City could prohibit the idling. He cited examples of how obnoxious the noise and smell can be, and said he could not support the plan if it allowed the buses to idle. City Manager Bludau said that he knows of other cities that do cite for idling buses. Mr. Brine stated that the residents favored adding the bus layover area because it may stop the buses from parking in front of their homes. Council Member Noyes added that the idling is currently done because the buses are parked illegally. Mr. Brine said the buses also idle to keep the air conditioning going. Mayor O'Neil summarized by stating that the direction from the City Council is for staff to proceed with Alternative 6A. City Manager Bludau confirmed that the City Council was recommending that the alternative be with the additional 40 spaces option. Council Member Ridgeway pointed out for Council Member Adams that all of the alternatives include a bus layover area. Virginia Herberts, Balboa Peninsula Point Association, stated that the Association favored Alternative 6A because it provided more parking closer to the village and it moved the buses away from the condominiums and storefronts. Council Member Noyes requested that staff also include some type of action in the plan to deter the buses from idling. Mayor O'Neil confirmed with the members of the City Council that there was concurrence in directing staff to proceed with the preparation of plans, specifications and engineer's final estimate for redesigning the Balboa Pier parking lot in general conformance with Alternative 6A. PUBLIC COMMENTS - None ADJOURNMENT - 6:00 p.m. Volume 53 - Page 42 INDEX City of Newport Beach Study Session Minutes October 25, 1999 • *+ + +t� + *x *xx + + +r,trttxx *a +,trrtt* The agenda for the Study Session was posted on October 20, 1999, at 3:10 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk • • t 01 = Recording Secretar 2 0 Mayor Volume 53 - Page 43 INDEX