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Home My WebLink About20191001_ApplicationCommunity Development Department Planning Permit Application 1. Check Permits Requested: D Approval-in-Concept -AIC # D Lot Merger D Coastal Development Permit D Limited Term Permit - D Waiver for De Minimis Development D Seasonal D < 90 day 0 >90 days D Coastal Residential Development D Modification Permit D Condomin ium Conversion D Off-Site Parking Agreement D Comprehensive Sign Program D Planned Community Development Plan D Development Agreement D Planned Development Permit ~A~lt-\~lP \Of\ /\.ti. CITY OF NEWPORT BEA< ri ., 100 Civic Center Drive Newport Beach , California 92660 949 644 -3200 newportbeachca.gov/communitydevelopment D Staff Approval D Tract Map D Traffic Study D Use Permit -□Minor □Conditional □ □ D Amendment to existing Use Permit Variance Amendment -□Code □PC □GP OLCP D Development Plan D Site Development Review -D Major D Minor Iii Other: 1 \ A-b (;. tq.v"'~~ ~-D Lot Line Adjustment D Parcel Map 2. Project Address(es)/Assessor's Parcel No(s) 813 E. Balboa Blvd ., Newport Beach, CA 92661 0 -"V'A, ~ <.,: <:.. 3 . Project Description and Justification (Attach additional sheets if necessary): Commercial Abatement for existing non -conforming commercial building in Balboa Village . 4. Applicant/Company Name =~=le=xa=n=d=e=r B=a=tl=ey=========================;------;::::::==========:::I Mailing Address ~j 7 _ 09 _E_._B_a_lb_o_a _B_lv_d _. -----------~---_-_-_-_-_-_-_-::'_S_u_ite/Unit ';:..-=-=========='.I City jNewport Beach State jcA I Zip 192661 Phone 1949-293-4629 Fax 1949-566-9335 I Email ja1ex@gobalboa .com !Balboa Realty I 5 . Contact/Company Name ~, ~========:,----;:::===-1 Mailing Address 709 E. Balboa Blvd. Suite/Unit ';::::::==========-·, City !Newport Beach State ~'C_A_ ~-_-_-_-_-_-_-_-_-_-_--~_I _z_ip_ ~'_9_2_6-=-6-=-1-=--=--=--=--=--=--=-.~' Phone 1 949 - 293 - 4529 / Fax ~-----~' Email ~-------------~ 0 N jAlex Batley, Aaron Batley, Arthur Dorr 6. wner ame ~---;::::=========================;----------;::::======: M .1• Add 1709 E. Balboa Blvd . a1 mg ress City !Newport Beach Phone ~-------~ Suite/Unit '-;:======' State ~lc_A-;:::=======':__:Z=i'.!'.p:.....::1 9=2=6=6 =1 ====: Fax ~-----~' Email ~-------------~ 7. Property Owner's Affidavit *: (I) (We) ~~-le_x _B_a_tle_y_, A_a_r_on_Ba_t_le_y,_A_rt_h_ur_D_o_r_r ------------~ depose and say that (I am) (we are) the owner(s) of the property (ies) involved in this application. (I) (We) further certify, under penalty of perjury , that the foregoing statements and answers herein contained and the information herewith submi~~~~ · II r~~~~~ tr/).nd correct to ~3.~st of (my) (our) knowledge and belie~f _. ____ _ Signature(s): / ,.. ,/'_/,,,. Title : !owner / Date: I ·-:r, 3 u '1 'o o t Mef/Y EAR Signature(s): --''---"---''-----,,;.,c__ ______ Title : ~'ow_n_er ______ ~I Date: rm 3/}q _J *May be signed by the lessee or by an authorized agent if written authorization from the owner of record is filed concurrently w ith the application. Please note , the owner(s)' signature for Parcel/Tract Map and Lot Line Adjustment Application must be notarized. F:\Use rs\COD\Shared\Ad min\Pl annin g_Division\A pplicati ons\Applicati o n_ Guidelines\Planning Permit Appli ca ti on -CDP added .docx Rev: 0 1/24117 PA2019-186 F:\Users\PLN\Shared\Staff_Dir\Garciamay\Ruby\desktop\DESKTOP_\CUT_PASTE_DRAG_COPY\Office Use Only.docx Updated 08/15/17 FOR OFFICE USE ONLY\ Date Filed: _______________________ 2700-5000 Acct. APN No: __________________________ Deposit Acct. No. ________________________ Council District No.: _________________ For Deposit Account: General Plan Designation: ____________ Fee Pd: _______________________________________ Zoning District: _____________________ Receipt No: ____________________________ Coastal Zone: Yes No Check #: __________ Visa MC Amex # ____________ CDM Residents Association and Chamber Community Association(s): _______________________ Development No: __________________________ _____________________________________________ Project No: ________________________________ _____________________________________________ Activity No: _______________________________ Related Permits: ___________________________ APPLICATION Approved Denied Tabled: _________________________ ACTION DATE Planning Commission Meeting Zoning Administrator Hearing Community Development Director Remarks: __________________________________________________________________________________________ __________________________________________________________________________________________ APPLICATION WITHDRAWN: Withdrawal Received (Date): ________________________ APPLICATION CLOSED WITHOUT ACTION: Closeout Date: ________________________ Remarks: __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ 048 132 02 1 RT R-2 BALBOA PENINSULA POINT ASSOCIATION PA2019-186 10.01.19 PA2011-079 D2011-0170 PA2019-186 Extension of Abatement Period Property Address: 813 E. Balboa Blvd., Newport Beach, CA Please find below an answer to the questions posed on the Newport Beach City Extension of Abatement Period Information Sheet. 1 . What is the length of the requested extension of the abatement period? We are seeking an additional extension of 1 O years (previously granted 10 years from 2011-2021) and keeping in conjunction with the historical use of the property as well as the future plans of the Balboa village. Despite the rezoning over the years, the current improvements were built for and continue to be used as a commercial property. 2. What is the length of the abatement period in relation to the owner's investment in the use? The structure was built in 1946 for commercial use, with over $600,0000 from the last renovation, the building was just purchased for $1,120,000 and will need further improvements currently estimated around $250,000 -$300,000. The building has sat vacant due both to an ongoing effort to sell the building, and extreme difficulty in finding a viable tenant. With the property currently located inside the Balboa Village commercial "Village Zone" (west of A street) and being immediately adjacent to a parking lot and bar, the value of the property is severely impacted for prospective future residential usage. This makes the continuation of commercial usage for this space ideal for the site for the foreseeable future. We are planning on moving our company, Balboa Realty to this space due to space constraints in our current location. The requested length of the abatement period is to match the amoritization period of the available loan to the applicants and potential purchasers of the property, Balboa Realty. 3. How long was the use operating prior to the date of nonconformity? Built in 1946 after the end of World War 11, 813 E Balboa was built for commercial use as the Balboa Village had a much larger footprint and had mostly commercial zoning only. In the early 1990's it went through several zoning changes, always retaining some form of commercial zoning. In 2003, the property was rezoned to R-2 residential. That is 57 years of commercial operation prior to the date of nonconformity (1946-2003). The building continued to be used for commercial purposes after being rezoned, and with the granting of a 10 year commercial abatement in 2011, the property continues to be operated commercially through 2021. From Adams to A street, all property along Balboa boulevard is commercial non-conforming or Mixed Use (MU-V) except 813 and 815 E Balboa. See attached Zoning Map. 4. What is the suitability of the structure for an alternative use? PA2019-186 The existing structure is a single story building showing evidence of earthquake retrofitting with over $600,000 of recent improvements for commercial usage. To convert to residential would require extensive remodeling costs to comply with building codes and suitability for occupancy. We estimate based on current remodel construction costs that to convert the existing structure for alternative use would cost roughly $400 - 500,000. At that cost it would maybe make more sense to do a complete demolition and a ground-up rebuild but we estimate this cost at roughly $1.5M. Both scenarios are not economically feasible based on the current sales price for the existing structure/land and the future values of the riew construction. 5. Will there be any harm to the public if the use remains beyond the abatement period? No. There would not be any harm to the public for the intended use by Balboa Realty. Balboa Realty operates a sales, property management, and vacation rentals business office providing a valuable service to both local residents and the general public. Balboa Realty does take occasional commercial supply deliveries in the rear alley of its current location at 709 E Balboa and would continue to do so at 813 E Balboa. (one block over) 6. What is the cost and feasibility of relocating the use to another site? Due to the parking and other building restrictions for new commercial development in the City of Newport Beach coupled with the lack of available land on the Balboa Peninsula, commercial space of any reasonable size is virtually non-existent and the Balboa Village is no exception. 813 E Balboa has one of the last structures remaining built for what the Village was originally intended, a Village to serve the public through commercial services. For Balboa Realty to move out of the Balboa Village, it would be extremely monetarily detrimental to its brands. Acquiring 813 East Balboa for use as office space would fit the site usage very well. The main reason for this is that since the City has continuously shrunk the Village Area in the City Master Plan during the last 30 years, 813 E Balboa gets very little walk-by pedestrian traffic for retail purposes. Commercial office space makes the most sense for long term viability at this location. The last tenant who applied for the current abatement and spent all the money on upgrades did not last much longer than a year. The property has been vacant ever since. 7. Is there any other evidence relevant to the determination of whether an extension of the abatement period is required to avoid an unconstitutional taking of property? We have mentioned several points in the answers to the 6 questions above, but since the City Master Plan has the Village limits from A street to Adams, this building is within those limits and should remain commercial due to both the historical and ongoing usage of the property. Frankly, it fits. Balboa Realty has been located in the Balboa Village since 2007 and the business owners have all been born and raised in Newport Beach and lived and worked here for over 40 years. We not only want to find a permanent home where we don't have to pay rent, we would like to fix up 813 East PA2019-186 Balboa and USE IT as it has been derelict, ugly and unoccupied property for virtually 20 years now. We have a great desire to help the ongoing effort of revitalization of the Balboa Village come to fruition. We truly believe that 813 E Balboa remaining as a commercial business is in the best interest of the public, the Balboa Village, and the City of Newport Beach and below are a few more supporting facts to bolster this position. 1. 500 E. Balboa and 503 and 505 E. Balboa (recently sold) are slated for redevelopment as mixed use projects that will enhance the look and feel of the village and bring new and better business to the village. The old Casino building at the corner of E Balboa and Main is being refurbished and will be beautiful and bring great business to the village. The structure at 813 E Balboa is best suited for commercial use and Balboa Realty will succeed in this location, continuing to provide quality service to the public for decades to come. This fits in with the City and the Balboa Merchant's vision and desire to revitalize Balboa. 2. A residential development of 813 E Balboa not only does nothing to aid in revitalizing the Balboa Village with potential absentee second-home owners as the likely future buyers of a residential use building, it also removes a commercially zoned and operated property of almost 75 years running. 3. Any residential development would be directly adjacent to the neighboring bar, Cruisers, and their parking lot. Cruisers and its parking lot not only has patrons exiting the bar in the early hours of the morning, but is host to live music, daytime festivals, sports games and their boisterous fans, contest nights, special events, etc. This proximity hurts the current owners and any future owner's investment in the property as a residence. Th is is further evidenced by the years of the property going on and off the market for sale without a purchase and the inability to find a tenant that can succeed at the location without failing within one season. 4. Residential Property sold at "land value" on the Balboa Peninsula ranges anywhere from $650 to $950 per square foot depending on location. However, property in the Balboa Village struggles to sell at $400 per square foot. In the case of 813 E. Balboa, the successful rezoning of 813 E Balboa to R-2 did not raise the value of the "land value" to match the $650 to $950 garnered everywhere on the peninsula. This is due to the reasons stated above. Residential values are almost entirely based on location and with the adjacent property being a bar and parking lot, 813 does not command residential prices, but aligns more closely with commercial values. IN CLOSING, Balboa Realty has paid a higher price to the current seller than the most recently recorded commercial sq/ft prices in order to maintain its presence in the Village and provide a necessary and desirable service to the public and the City. Balboa Realty has been in the Village for 12 years and is one of the only commercial uses that can succeed in the Balboa PA2019-186 Village (in its current state) as we dent need to rely on walk-by traffic to survive. However, we do provide real estate services to local property owners as well as vacation guests. In fact, Newport Beach Vacation Properties (the vacation brand of Balboa Realty) collects and pays the City over $200,000 in TOT tax every year. Currently there are 3 business licenses located at 709 East Balboa which would move to the 813 E Balboa location. These are: Bungalow Basics (a vacation services company), Balboa Realty and Newport Beach Vacation Properties. Balboa Realty is requesting an extension of the Abatement period for 1 O more years through 2031, in order to protect its substantial investment in the purchase of 813 E Balboa. PA2019-186