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HomeMy WebLinkAbout20210114_ZA_Staff ReportCITY OF NEWPORT BEACH ZONING ADMINISTRATOR STAFF REPORT January 14, 2021 Agenda Item No. 2 SUBJECT: Annual Review of Newport Beach Country Club – Tennis Club Site Development Agreement (PA2016-196) •Development Agreement No. DA2008-001SITE LOCATION: 1602 East Coast Highway APPLICANT: Roy Roberson of Land Strategies, LLC, applicant’s representative OWNER: Golf Realty Fund, O Hill Properties PLANNER: Makana Nova, Associate Planner 949-644-3249, mnova@newportbeachca.gov ZONING DISTRICT/GENERAL PLAN •Coastal Land Use Category: MU-H/PR (Mixed-Use Horizontal/Parks and Recreation) •Coastal Zoning District: PC-47 (Newport Beach Country Club Planned Community) •General Plan: MU-H3/PR (Mixed-Use Horizontal 3/Parks and Recreation) •Zoning District: PC-47 (Newport Beach Country Club Planned Community) PROJECT SUMMARY Annual review of Development Agreement No. DA2008-001 for the Newport Beach Country Club – Tennis Club Site pursuant to Section 15.45.080 (Development Agreements, Periodic Review) of the Municipal Code and Section 65865.1 of the California Government Code. The Development Agreement was executed in 2012, and it provides for the construction and operation of 27 hotel units with a 2,170-square-foot concierge and guest meeting facility, five single-unit residential dwellings, a 3,725-square-foot tennis clubhouse, 7,490-square-foot spa/fitness center, retaining six existing tennis courts, and one lighted stadium-center tennis court. The Zoning Administrator will review Golf Realty Fund's good faith compliance with the provisions of the Development Agreement 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; 1 NBCC Annual Review of Development Agreement (PA2016-196) Zoning Administrator, January 14, 2021 Page 2 Tmplt: 01/12/18 3) Receive and file the Annual Report of the Development Agreement for Newport Beach Country Club – Tennis Club Site (Attachment No. ZA 2); and 4) Find that the applicant has demonstrated good faith compliance with the terms of Development Agreement No. DA2008-001. BACKGROUND On March 27, 2012, the City Council adopted Ordinance No. 2012-3, approving the Development Agreement (DA) for the redevelopment of an existing tennis facility. Construction includes 27 hotel units with a 2,170-square-foot concierge and guest meeting facility, five single-unit residential dwellings, a 3,725-square-foot tennis clubhouse and a 7,490-square-foot spa/fitness center, retaining six exisitng tennis courts, and the construction of one lighted stadium-center tennis court. The City Council also adopted a Planned Community Development Plan for the site as part of the overall development of the Newport Beach Country Club (NBCC) that includes the adjacent NBCC Golf Club Site. The DA became effective on September 27, 2012. The term of the DA is ten years, or upon completion of the project in accordance with the terms and conditions of the DA, whichever comes first. The DA is available online at: http://www.newportbeachca.gov/developmentagreements On January 26, 2017, the Zoning Administrator approved Tentative Parcel Map No. NP2016-013 dividing the project site for future financing and conveyance purposes. No development or improvements were proposed as a part of the tentative parcel map application. The subject property is located in a coastal zone. The California Coastal Commission conducted a hearing and approved the project in 2013. A notice of intent to issue a coastal development permit was issued that subsequently expired. Since the City’s Local Coastal Program was certified in 2016 by the Coastal Commission, the applicant was required to obtain a coastal development permit (CDP) with the City. On November 20, 2018, the Zoning Administrator approved Coastal Development Permit No. CD2017-039 (PA2017-091) to allow demolition of existing structures on-site, redevelopment of the tennis club site, and associated subdivisions within the Coastal Zone. Building and grading plans for the construction of the single-family homes, tennis clubhouse, spa, and stadium-center tennis court were submitted in December of 2016. The plan check expired in May of 2020 because the applicant did not complete the review process in a timely manner and the applicant has not completed all the necessary steps for the City to schedule the final tract map for City Council acceptance. The applicant intends to submit new plans updated to the current building code requirements with new plan check fees. The final map has been submitted to the City for review and the applicant is finalizing the approved parcel map for signatures and recordation. 2 NBCC Annual Review of Development Agreement (PA2016-196) Zoning Administrator, January 14, 2021 Page 3 Tmplt: 01/12/18 DISCUSSION Section 15.45.080 (Periodic Review) 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. 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 remained in good faith with the terms of the agreement; the Zoning Administrator should refer the matter to the City Council. This DA review covers the Tennis Club Site from February 2019 to December 2020. In accordance with Section 3 (Public Benefits) of the DA, the applicant is required to pay the following public benefit fees at the issuance of applicable building permits: • Ninety-three thousand dollars ($93,000) per residential dwelling unit; and • Ten dollars ($10) per square foot of new construction to the existing tennis clubhouse. Each of these fees is subject to the Consumer Price Index adjustments. There have been no physical development-related activities on the subject site since the approvals of land use entitlements including the DA, financing parcel map, and coastal development permit. To date, no public benefit fees have been paid. After reviewing the attached annual report and applicable documents, staff believes that the applicant has been proceeding and continues to be in good faith compliance with the terms and conditions of the Development Agreement. 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, 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. 3 NBCC Annual Review of Development Agreement (PA2016-196) Zoning Administrator, January 14, 2021 Page 4 Tmplt: 01/12/18 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. 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: Attachments: ZA 1 Vicinity Map ZA 2 Annual Report ZA 3 Development Agreement 4 Attachment No. ZA 1 Vicinity Map 5 VICINITY MAP Annual Development Agreement Review No. DA2008-001 (PA2016-196) 1602 East Coast Highway Subject Property 6 Attachment No. ZA 2 Annual Report 7 9241 Irvine Boulevard, Suite 100 – Irvine, California 92618 (949) 580-3000 E:\Land Strategies, LLC\Accounting\14-116 -- Newport Beach Country Club, O Hill\300 Correspondence\320 Letters and Communiques\LETTER 147 - Development Agreement Report 2020.doc Page 1 of 3 LAND STRATEGIES, LLC Makana Novoa October 28, 2020 City of Newport Beach – Community Development 100 Civic Drive Newport Beach, CA 92660 via e-mail Subject Annual Report for Development Agreement DA 2008-001 Newport Beach Country Club Tennis Club, Spa, Villas and Bungalows - Tract 15347, PM 2016-151 Dear Makana, Pursuant to Section 7 of Development Agreement DA2008-001, this letter is intended to serve as the Annual Report required for the Newport Beach Country Club Planned Community (PC) to provide a record of the progress of development that has been approved for the Tennis Club Site, consisting of The Villas Sub-Area, The Tennis Club Sub-Area and The Bungalows. This Annual Report documents Golf Realty Fund’s (GRF) compliance with the Development Agreement from January 2019 to November 2020. Entitlement Approvals On March 27, 2012, the City Council approved the redevelopment of Tennis Club Site which consisted of removal of some existing tennis facilities, construction of new site infrastructure, parking, clubhouse buildings, pool, tennis stadium court, residential villas and bungalows as depicted on Tentative Tract Map 15347. On November 20, 2018 the City Approved Coastal Development Permit CD 2017-039 for this project. That CDP is scheduled to expire 24 months after it became effective unless extended. On October 15, 2020, prior to the scheduled expiration, a request for an extension was made and is currently being processed. Development Agreement Obligations Section 3 of the Development Agreement for the NBCC required the payment of a Public Benefit Fee as follows: 1. Ninety-three thousand dollars ($93,000) per each residential dwelling unit; 2. Ten dollars ($10) per square foot of new construction to the existing tennis clubhouse. Each of these fees is subject to the Consumer Price Index adjustments No Change to Project Since Entitlement There has been no significant change in the project planning or details since Tentative Map 15347 and the related support documents were approved. Subdivision Mapping A Final Tract Map for Tract 15347 has been submitted to the City and County for final review, approval and recordation. 8 9241 Irvine Boulevard, Suite 100 – Irvine, California 92618 (949) 580-3000 E:\Land Strategies, LLC\Accounting\14-116 -- Newport Beach Country Club, O Hill\300 Correspondence\320 Letters and Communiques\LETTER 147 - Development Agreement Report 2020.doc Page 2 of 3 The County Survey Department has “called for mylars” indicating that they are ready to sign the final map. The City’s final review and approval is subject to their verification of compliance with the Conditions of Approval of the Tentative Tract Map. A Final Parcel Map 2016-151 was approved and recorded on December 24, 2019. This map established separate parcels for each land use (Tennis Club, Villas and Bungalows) and it created a Public Easement for the main roadway (Clubhouse Drive) for emergency access and installation and maintenance of the utilities serving the parcels fronting on this roadway. Site Improvements Site Improvement Plans have been completed, submitted to the City and reviewed 4 times for the entire site infrastructure inclusive of Demolition, Grading, Erosion Control, Drainage, Water Quality, Water, Sewer, Street and Parking and the Precise Grading of the decorative hardscape and landscaping around the tennis club and spa plus Dry Utilities and Landscaping. The City’s Comments from the 4th review have been incorporated and the plans have been submitted for the 5th Review on October 28, 2020. It is the Owners Intent to permit and construct the Site Improvements in their entirety before building permits are issued. New Plan Check Fees have been paid at the request of the City’s Building Official for Improvement Plan Review and Grading Plan Review in the amounts of $11,189.94 and $4,904,19 respectively. Building Plans and Permits Building plans are being processed for the 5 villas (as separate permits) and for the buildings in the Tennis Club and Spa area. Various applications and permits are being processed simultaneously for this property including the following: PA2016-124 X2016-4268 X2016-4269 PA2016-4268 X2016-4266 X2016-4267 PA2005-140 X2016-4211 X2016-4212 X2016-4213 X2016-4214 RCP0007407 2016-2876 2016-2877 2016-2878 2106-2879 2016-2880 2016-2889 2016-2927 2016-2928 Each of these generates plan check comments from as many as 12 different departments/staff at the City plus several outside agencies. 9 9241 Irvine Boulevard, Suite 100 – Irvine, California 92618 (949) 580-3000 E:\Land Strategies, LLC\Accounting\14-116 -- Newport Beach Country Club, O Hill\300 Correspondence\320 Letters and Communiques\LETTER 147 - Development Agreement Report 2020.doc Page 3 of 3 Construction It is anticipated that the construction of the temporary club facility, demolition, grading and infrastructure will be commenced as soon as plans are approved subject to the Owner’s determination that the market conditions are favorable for the construction of buildings that will use the infrastructure. Please contact me at (949) 580-3000 x 701 with any questions or comments. Sincerely LAND STRATEGIES, LLC Roy Roberson, P.E. Managing Member 10 Tmplt: 01/12/18 Attachment No. ZA 3 Development Agreement 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43