HomeMy WebLinkAbout08_Annual Review of Uptown Newport Development Agreement_PA2014-039
CITY OF NEWPORT BEACH
ZONING ADMINISTRATOR STAFF REPORT
October 15, 2020
Agenda Item No. 8
SUBJECT: Annual Review of Uptown Newport Development Agreement
(PA2014-039)
▪ Development Agreement No. DA2012-003
SITE LOCATION: 4311-4321 Jamboree Road
APPLICANT/OWNER: Uptown Newport, LP (TSG-Parcel 1, LLC)
PLANNER: Chelsea Crager, Associate Planner
949-644-3227, ccrager@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, Division
6, 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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BACKGROUND
On March 12, 2013, the 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 1-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 Master Site Development
Review (MSDR) No. SD2013-002 (PA2013-129) for the Uptown Newport project. The
Planning 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 25-acre planned 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 the 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 (PA2015-141) 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 proposed by the Picerne Group.
The South Building was approved to provide 222 apartment units with approximately
10,700 square feet 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, and it will provide public access from Jamboree Road
through to the internal street. These two buildings include 92 units for very-low income
households.
On September 2, 2016, the Community Development Director approved Staff Approval
No. SA2016-010 (PA2016-125), an amendment to Condition of Approval 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.
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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
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 Major Site Development Review
No. SD2017-001 (PA2017-031), 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 o f retail use on Lot 2. 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 (PA2017-040), 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 was permitted to be developed with seven additional residential units
for a total of 229 units within the South Building. 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 consistent with the
General Plan and Municipal Code. The park in-lieu fee payment for Phase 1 was set in
the amount of $2,895,686.54.
On July 13, 2018, the Community Development Director approved Minor Site
Development Review No. SD2018-002 (PA2018-107) for the construction of Phase 1’s
1-acre neighborhood park. The park’s construction began late December 2018 and is
nearly complete.
At the last annual review on May 16, 2019, 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.
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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.
Annual Review
The annual review covers the period of May 2019 to September 2020.
A summary of construction-related activities within Phase 1 performed by the property
owner, its agents and affiliates during the past year are listed below:
1. Building permits for the construction of the Picerne Group’s (One Uptown Newport)
apartment project in Phase 1 were issued on May 18, 2017. A total payment of
$18,985,299, which includes a park fee of $2,895,687, was submitted consistent
with the terms of the DA and its First Amendment. The South Building was
completed in July 2019, and the North Building was completed in November 2019.
Certificates of Occupancy were issued in December 2019.
Due to the COVID-19 global pandemic, the affordable housing implementation
process was temporarily delayed. The interest list for affordable housing selection
was open from July 30 to August 31, 2020. The first occupancy of the affordable
apartments is anticipated by the end of October 2020. It is anticipated that 46
affordable units will be leased by the end of 2020.
2. 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. A
CFD (Community Facilities District) for the financing of the power line
undergrounding was formed on March 12, 2019. The first phase, which included
the installation of the underground vaults and ducts, was completed in December
2018. It is anticipated that the completion of the line extension will take place near
the end of 2020 with removal of the power poles and line in early 2021.
3. Phase 1 site improvements, on-site and Jamboree Road median landscaping, on-
site street lights, and traffic signal modifications at main entry, are completed.
4. Construction of the 1-acre park is substantially complete, with park signage
remaining to be installed. This is expected to be completed by the end of 2020.
5. An EIR Addendum was prepared for the enclosure of the existing ammonia tank
serving the TowerJazz Semiconductor operation. TowerJazz is currently located
where future development of Phase 2 is to take place, which is to be implemented
after 2027. The EIR Addendum was adopted in July 2020 and construction is
anticipated to be completed in October 2020.
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The applicant has prepared a report with a complete list of accomplishments within the
past year (Attachment No. ZA 2).
After reviewing the attached annual report and applicable documents, staff finds the
applicant to be in good faith compliance with the terms and conditions of the DA and its
First Amendment.
As to the remaining construction of Phase 1 development, the applicant has expressed
interests in two condominium residential developments for the remaining portion of Lot 1
(located to the east and north of Phase 1 Park). City approval has not been granted for
either of the projects at this time. Lot 2 is anticipated to be developed with an upper scale
restaurant and coffee shop; however, plans have been suspended due to the COVID -19
global pandemic.
The following table identifies the Phase 1 residential development summary as to-date.
Phase 1 Residential Development
Implemented Remaining
Total Number of Units: 680 458 222
Park Area: 1.03 acre 1.03 N/A
The development of Phase 2 will be initiated after TowerJazz Semiconductor’s lease
concludes either in 2022 or 2027. This phase consists of a 1-acre park, the remaining
564 residential units, and any remaining unbuilt commercial square footage from Phase
1.
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, Division 6, 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 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.
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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:
RU/cc
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 of Uptown Newport Development
Agreement No. DA2012-003 (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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September 30, 2020
Ms. Chelsea Crager
City of Newport Beach
Planning Department
100 Civic Center Drive
Newport Beach, California 92660
RE: 2019 Annual Report for Uptown Newport
Development Agreement No. DA2012-003
Dear Ms. Crager,
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 continuing with development of Phase I of the Uptown Newport
Planned Community, with site development completed. The current plan for Phase I is to
develop approximately 458 apartment units in two buildings on the Lots 3 and 4 that front along
Jamboree Road; for-sale condominiums on Lot 1 that surrounds the Phase I Park, and;
approximately 6,500 square foot of retail /commercial on Lot 2 at the Jamboree/Uptown
Newport Drive entry. The number of for-sale units will be 30 units on the east half of lot 1 and
approximately 66 units on the west half of lot 1. A Preliminary Development review plan was
submitted to the city mid-year 2019 for Lot 1. Comments and recommendations provided by
the city staff have been being addressed at the design level. The apartment buildings include
approximately 92 affordable apartment units that will be incorporated into the same apartment
buildings as the market rate apartments.
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1. The first phase of the 66KV undergrounding on Jamboree Road fronting the Uptown
Newport project was completed in December 2018. This included the installation of the
underground vaults and ducts. Due to some local effects of a power shutdown on
adjacent properties, we have been working with the city staff and SCE to find alternate
solutions to avoid or minimize power interruptions. With the collaborative efforts of
SCE and the city engineering staff we have arrived at a solution that will be beneficial to
the affected business where-in, a power shutdown can be avoided with an extension of
the line undergrounding. It is anticipated that the completion of the line extension will
take place the near the end of 2020 with the removal of the power poles and line later
in early 2021.
2. Construction of the two apartment buildings began May 2017. The two building were
completed in July 2019 (south building) and November 2019 (north building).
Certificates of occupancy was issued in December 2019.
3. Phase I site improvements are completed. The project landscape is complete. The city
has since accepted the Jamboree median.
4. Construction of the 1 acre public park is substantially complete with the park signage
remaining to be installed. This will be completed in the next 45-60 days.
5. Plans are currently in design to construct five condominium buildings on a portion of lot
1. City review is anticipated to be completed by October 2020 with permits issued late
2020 early 2021.
6. Plans were in design to construct two commercial/retail buildings on Lot 2. It is
anticipated that the site will include an upper scale restaurant and a boutique coffee
shop. Plans to construct have been temporarily suspended due to the Covid-19
Pandemic
7. The ammonia tank relocation on Tower Jazz site has taken a slightly different direction.
While being a condition of the project mitigations measures to relocate the ammonia
tank, new discussions with city staff and city fire department have found an alternate
way to satisfy the condition by enclosing the existing ammonia tank facility. This
revision will be processed as an EIR addendum and will meet the mitigation
requirements. This is anticipated to be completed by October 2020.
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8. One Uptown Affordable Leasing Plan:
In mid-August, the ”Notice of Intent to Lease Affordable Units” was sent to the City of
Newport Beach, providing for a list of affordable apartments and their respective rent limits
in accordance with the regulatory agreement. The Interest List for affordable housing at
One Uptown Newport was opened on July 30, 2020 and closed on August 31, 2020. Over
700+ multi-city subscribers joined the interest list. The Picerne Group has engaged
Affordable Housing Consultants, LLC. (AHC) to initiate the qualifying and leasing
process. Currently, AHS is contacting the interest list applicants and conducting the tenant
file screening process. We anticipate the first Occupancy of the affordable apartments to be
by month-end in October, and we will lease and occupy the 46 affordable units in the South
building by the end of 2020.
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.
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
brupp@shopoff.com. Should you have any questions or require additional information.
Sincerely,
Brian Rupp
Executive Vice President – Development
Cc: Gregory Powers, Jackson Tidus
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