HomeMy WebLinkAboutPC2020-026 - RECOMMENDING TO THE CITY COUNCIL APPROVAL OF A FOURTH AMENDMENT TO THE HOAG MEMORIAL HOSPITAL RESBYTARIAN DEVELOPMENT AGREEMENT (DA2020-003) FOR THE PROPERTY LORESOLUTION NO. PC2020-026
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, RECOMMENDING TO THE
CITY COUNCIL APPROVAL OF A FOURTH AMENDMENT TO
THE HOAG MEMORIAL HOSPITAL PRESBYTERIAN
DEVELOPMENT AGREEMENT (DA2020-003) FOR THE
PROPERTY LOCATED AT 1 HOAG DRIVE (PA2020-065)
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 (“Agreement”)
between the City and Hoag Memorial Hospital Presbyterian (“Hoag”). Ordinance No. 94-8
went into effect on March 16, 1994. The Agreement was executed and recorded, as
document number 94-0207276, on March 23, 1994. The term of the 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 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 Agreement extended
the Term of the Agreement for an additional six (6) months.
4. On July 23, 2019, the City Council adopted Ordinance No. 2019-12 approving a third
amendment to the Agreement (“Third Amendment”) that went into effect on August 22,
2019. The Third Amendment was executed and recorded, as document number
2019000318392, on August 27, 2019. The Third Amendment extended the Term of the
Agreement for an additional ten (10) years in exchange for certain community public
benefits provided by Hoag. The existing development regulations and required mitigation
measures as provided in the Agreement and subsequent amendments remained
unchanged by the Third Amendment.
5. Hoag has requested a fourth amendment to extend the Term of the Agreement an additional
one (1) year in light of COVID-19-related impacts that have constrained the ability to plan
for the development allowed by the Agreement as amended (“Fourth Amendment”). The
existing development regulations and required mitigation measures as provided in the
Agreement and subsequent amendments remain unchanged by this Fourth Amendment.
6. Section 15.45.040 (Development Agreements) 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
DocuSign Envelope ID: 48F9FA45-6366-476B-AA08-126D2467C0DB
Planning Commission Resolution No. PC2020-026
Page 2 of 4
provisions for reservation or dedication of land for public purposes. The Fourth Amendment
meets the requirements of Section 15.45.040 (Development Agreements) of the NBMC.
The Agreement, as amended, includes 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 Fourth Amendment. This Fourth Amendment exclusively requests a one (1) year
extension of the Term of the Agreement.
7. The Planning Commission held a telephonic public hearing on July 9, 2020, in the City
Council Chambers, located at 100 Civic Center Drive, Newport Beach, California, due to the
Declaration of a State Emergency and Proclamation of Local Emergency related to COVID-
19, at which time the Planning Commission considered the Fourth Amendment. A notice of
time, place, and purpose of the hearing was given in accordance with California
Government Code Section 54950 et seq. (“Ralph M. Brown Act”), California Government
Code Section 65867 and Section 15.45.050 (Public Hearing-Notice) of 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.
In accordance with the California Environmental Quality Act (“CEQA”) set forth in the California
Public Resources Code Section 21000, et. seq. and its implementing State regulations set forth
in the California Code of Regulations, Title 14, Division 6, Chapter 3 (“CEQA Guidelines”):
1. On May 11, 1992, the Newport Beach City Council certified Final Environmental Impact Report
(“FEIR”) and Supplemental Environmental Report (“SEIR”) No. 142 (SCH No. 1992101159)
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. 1991071003)
(“FEIR”) in accordance with Public Resources Code Section 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 FEIR
and SEIR are incorporated herein by this reference.
3. All significant environmental concerns for the Project are addressed in previously certified
FEIR and SEIR No. 142. The Fourth Amendment does not change the Project but rather only
extends the Term of the Agreement by two (2) years to account for COVID-19 related impacts.
The Fourth 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.
DocuSign Envelope ID: 48F9FA45-6366-476B-AA08-126D2467C0DB
Planning Commission Resolution No. PC2020-026
Page 3 of 4
1. The Planning Commission finds the Fourth Amendment is consistent with the City of Newport
Beach General Plan Policy LU 6.1 and 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 Agreement and subsequent amendments provide appropriate development
assurances to Hoag to plan for the future while also providing appropriate safeguards to
protect the community. The COVID-19 crisis has interrupted and delayed Hoag’s ability to plan
for the development authorized by the Agreement as amended. Extending the term of the
Agreement, as amended, by two (2) years furthers the LU 6.1 and Strategy 6.1.5 priorities by
allowing Hoag additional time to properly plan once the COVID-19 outbreak has been
suppressed.
2. The City Council previously found the Agreement and subsequent amendments consistent
with Section 15.45.040 (Contents) 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 2008-10 in 2008. With the exception of the Term, all of
the other necessary components articulated above, remain unchanged by this Fourth
Amendment.
3. The Planning Commission finds the Fourth Amendment is consistent with provisions of
California Government Code Sections 65864 to 65869.5 and Chapter 15.45 (Development
Agreements) of the NBMC 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. COVID-19 has put a strain on the healthcare system and demands Hoag’s full
attention as a regional provider treating those sick with the virus. Temporary closures in the
development industry resulting from COVID-19 have also effectively reduced the time Hoag
has to act on the by-right development provisions of the Term. If the two (2) year extension is
not granted, Hoag might divert its attention from COVID-19 to plan for future development.
They might also incur increased development costs and needless expenditure of time and
resources because long-term development plans would need to be reconstituted under a
tighter future timeframe. Hoag intends to exercise the development assurances of the Term
completely to invest vital healthcare infrastructure in the community, and needs two (2s)
additional year to account for the unforeseeable complications from COVID-19.
DocuSign Envelope ID: 48F9FA45-6366-476B-AA08-126D2467C0DB
Planning Commission Resolution No. PC2020-026
Page 4 of 4
SECTION 4. DECISION.
NOW, THEREFORE, BE IT RESOLVED:
The Planning Commission of the City of Newport Beach, California hereby recommends to the
City Council:
1. All significant environmental concerns for the Project have been addressed in the Final
Environmental Impact Report (“FEIR”) and Supplemental Environmental Report
(“SEIR”) No. 142 (SCH No. 1992101159) and no new or additional impacts will result
from the Fourth Amendment. The Fourth Amendment does not change the Project but
rather only extends the term of the Agreement by two (2) years to account for COVID-
19 related impacts nor does it amend any development standards, development
requirements, or required mitigation measures identified in FEIR No. 142 and the SEIR.
2. Adopt the Fourth Amendment to 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 two (2) years. Except as modified by this Fourth
Amendment, the Planning Commission recommends the amended Agreement remain
in full force and effect.
PASSED, APPROVED, AND ADOPTED THIS 9th DAY OF JULY, 2020.
AYES: Klaustermeier, Kleiman, Koetting, Lowrey, Rosene, and Weigand
NOES:
ABSTAIN: Ellmore
ABSENT:
BY: _________________________
Erik Weigand, Chair
BY: _________________________
Lauren Kleiman, Secretary
DocuSign Envelope ID: 48F9FA45-6366-476B-AA08-126D2467C0DB