HomeMy WebLinkAbout04_Annual Review of the North Newport Center DA_PA2009-023CITY OF NEWPORT BEACH
ZONING ADMINISTRATOR STAFF REPORT
September 30, 2021
Agenda Item No. 4
SUBJECT: Annual Review of the North Newport Center Development Agreement
(PA2009-023)
▪Development Agreement No. DA2007-002
SITE LOCATION: Fashion Island; Block 100, Block 400, Block 500, Block 600, and
Block 800 of Newport Center Drive; and San Joaquin Plaza
APPLICANT/OWNER: Irvine Company
PLANNER: Joselyn Perez, Assistant Planner
949-644-3312, jperez@newportbeachca.gov
LAND USE AND ZONING
•General Plan: Regional Commercial (CR), Regional Commercial Office (CO-R),
Medical Commercial Office (CO-M), Multiple Unit Residential (RM), and Mixed-Use
Horizontal (MU-H3)
•Zoning District: North Newport Center Planned Community (PC-56)
PROJECT SUMMARY
An annual review of the Zoning Implementation and Public Benefit Agreement for North
Newport Center, pursuant to Newport Beach Municipal Code (NBMC) Section 15.45.080
(Periodic Review) and Section 65865.1 of the California Government Code.
RECOMMENDATION
1)Conduct a public hearing;
2)Find the review 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 the
Zoning Implementation and Public Benefit Agreement; and
4)Receive and file the North Newport Center Zoning Implementation and Public Benefit
Agreement Annual Report Year 2020 (Attachment No. ZA 2).
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DISCUSSION
NBMC Section 15.45.080 (Periodic Review) 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. The
applicant is required to demonstrate good faith compliance with the terms of the
agreement, and should the Zoning Administrator believe the applicant has not complied
in good faith with the agreement, the Zoning Administrator should refer the matter to the
City Council.
Background
On December 18, 2007, the City Council adopted Ordinance No. 2007-21 approving
Development Agreement No. DA2007-002 (“DA”) between the City and Irvine Company.
The DA granted Irvine Company entitlement and transfer rights within the North Newport
Center Planned Community (NNCPC). At the time the DA was approved, NNCPC
consisted of Fashion Island, Block 600, portions of Block 500 and San Joaquin Plaza.
Since then, portions of Block 100, Block 400, and the entirety of Block 800 have been
incorporated into the NNCPC. On June 6, 2012, the City Council approved an amendment
to the DA, which incorporated these additional remaining sub-areas into the NNCPC. On
November 10, 2015, the North Newport Center Planned Community was expanded to
include two existing buildings within the 500 block of Newport Center Drive; however, the
DA was not amended to include the expanded area.
The DA specifies the permitted uses, density and intensity of development through the
application of the NNCPC text, circulation improvements, public benefits, and dedication
of street rights-of-way and open space. The DA vests Irvine Company’s right to develop
regional commercial, office, mixed-use, and residential uses in North Newport Center as
depicted in Table 1. The term of the DA is 25 years, and it expires in 2032.
The DA is available online at http://www.newportbeachca.gov/developmentagreements.
The last annual review, conducted on May 14, 2020, covered activities occurring in 2019,
and the Zoning Administrator found Irvine Company to be in good faith compliance with
the agreement. This review is for activities occurring during the 2020 calendar year.
2020 Development Activity
Table 1 summarizes the entitlement and building activity for the NNCPC that occurred in
2020. Several projects are under construction within the NNCPC, but only completed
activities with certificates of occupancy are included in Table 1. In total, 36 building
permits for tenant improvements or landlord work were issued in 2020. Nineteen building
permits originally issued in 2019 were finalized in 2020. None of the building permits
issued or finalized in 2020 resulted in changes to gross floor area.
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Development Discrepancies
On June 22, 2021, CAA Planning sent a letter to City staff on behalf of the Irvine Company
(Attachment No. ZA 2) requesting to reconcile differences in reported building area and
gross floor area (GFA), as defined in the NNCPC development plan. The request
included the following properties: 450 Newport Center Drive (NCD), Block 800 NCD, 101
NCD (Macy’s), 601 NCD (Neiman Marcus), and 701 NCD (Bloomingdale’s).
Research by CAA Planning suggested certain building areas that do not meet the
definition of GFA were mistakenly included in the reported building area totals for the
specified buildings. The areas in question include mechanical penthouses, repeating
stairways, repeating elevators, and unenclosed covered areas.
City staff reviewed each building in detail and agreed with CAA Planning’s research on
all requests with exception of Block 800 NCD (Attachment No. ZA 3). The reported floor
area totals are reflected in the table below and in Attachment No. ZA 4.
2020 Development Activity Summary
Sub-Area Entitlement
Existing
Development
(as of 12/31/2020)
Remaining
Entitlement
(as of 12/31/2020)
Fashion Island
1,523,416 sq. ft.
of regional commercial 1,470,097 sq. ft.1 53,319 sq. ft.
680 theater seats 450 theater seats 230 theater seats
Block 100 121,114 sq. ft.
of office/commercial 121,114 sq. ft. 0 sq. ft.
Block 400 91,727 sq. ft.
of office/commercial 88,173 sq. ft.2 3,554 sq. ft.
Block 500 623,525 sq. ft.
of mixed use 622,622 sq. ft. 903 sq. ft.
Block 600
1,310,899 sq. ft.
of office only 1,310,899 sq. ft. 0 sq. ft.
295 hotel rooms 295 hotel rooms 0 hotel rooms
Block 800
286,166 sq. ft.
of office/commercial 286,166 sq. ft. 0 sq. ft.
245 residential units 245 residential units 0 residential units
San Joaquin
Plaza
95,550 sq. ft.
of office/commercial 95,550 sq. ft. 0 sq. ft.
524 residential units 524 residential units 0 residential units
1 29,523 sq. ft. removed from Macy’s, 4,669 sq. ft. removed from Neiman Marcus, and 14,934 sq. ft.
removed from Bloomingdale’s for a total of 49,126 square feet removed from the existing development
total as it did not meet the definition of gross floor area (GFA).
2 3,554 square feet removed from the existing development total as it did not meet the definition of GFA.
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Future Activities
Any remaining terms and conditions shall be completed pursuant to the timing or
milestone requirements depicted in the Annual Report. After reviewing the Annual Report
and applicable documents, staff believes that Irvine Company has complied in good faith
with terms and conditions of the DA.
ENVIRONMENTAL REVIEW
This project 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.
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 City Clerk 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:
BMZ/jp
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Attachments: ZA 1 Vicinity Map
ZA 2 North Newport Center Planned Community Development
Plan, Annual Monitoring Report – Square Footage
Reconciliation Request Letter
ZA 3 City Response Letter Dated August 27, 2021
ZA 4 Annual Report (January 2020 – December 2020)
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Attachment No. ZA 1
Vicinity Map
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0 500 1,000FeetIPA2009-023DA2007-002 - North Newport CenterDevelopment Agreement Annual ReviewMailing Radius Map
Date: 05/12/2015Document Name: PA2009-023_North_Newport_PC
PA2009-023
7
Attachment No. ZA 2
North Newport Center Planned Community
Development Plan, Annual Monitoring Report –
Square Footage Reconciliation Request Letter
8
30900 Rancho Viejo Road, Suite 285 San Juan Capistrano, CA 92675 (949) 581-2888 Fax (949) 581-3599
June 22, 2021
Mr. Jim Campbell
Deputy Community Development Director
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
Subject: North Newport Center Planned Community Development Plan,
Annual Monitoring Report – Additional Building Permit Research
Dear Mr. Campbell:
On behalf of Irvine Company, CAA Planning, Inc. (CAA) has prepared an annual monitoring
report (AMR) in compliance with the North Newport Center Planned Community Development
Plan (PC). The 2020 AMR was submitted in January 2021, for the 2020 annual review in
compliance with the requirements of the PC. CAA has prepared these AMRs annually following
approval of the PC in 2007. The AMR is the method for tracking ongoing development within the
PC boundary and for reporting on ongoing obligations, fee payments, etc. as required by the
development agreement.
Following submittal of the 2020 AMR, CAA conducted research on the existing gross floor area
(GFA) for certain large buildings within Fashion Island, Block 400, and Block 800. This ongoing
research has identified discrepancies between the GFA identified on the City’s building inventory
for Newport Center, and that identified on City-approved building plans and building permits.
Generally, it appears that area that is not considered GFA, such as mechanical penthouses, loading
docks, and unenclosed covered areas, has in fact been counted as GFA. Similar square footage
reconciliations were conducted in association with the 2012 and 2015 AMRs (included as
Attachment 1). Consistent with these prior AMR reconciliations, CAA requests that the City
conduct an additional review of building intensity within Fashion Island, Block 400, and Block
800.
Historically, the City’s building permit and plan records were on microfiche and the review of
them on the microfiche reader was cumbersome and tedious. However, the City’s plan records
have now been digitized and the ability to review the plans is much easier and less time consuming,
which is why we have continued to review historic plans and update our records. This year, we
conducted a preliminary review of Fashion Island, Block 400, and Block 800. In Fashion Island,
we reviewed only three large anchor buildings including Bloomingdale’s, Niemann Marcus, and
Macy’s. For these three buildings, we found that the GFA is less than the numbers assigned to
them in the City’s Newport Center building intensity worksheet. The following table summarizes
the difference between the City’s summary and the as-built GFA.
9
Mr. Jim Campbell
June 22, 2021
Page 2 of 3
Store
City Summary Table
(square feet)
As-Built Plan
(square feet)
Difference
(square feet)
Bloomingdale’s 1 187,534 172,600 14,934
Nieman Marcus 158,929 154,260 4,669
Macy’s 234,314 204,791 29,523
TOTAL 49,126
1 Bloomingdale’s total does not include the loading dock area identified in Attachment 2. This area will be determined
by field measurement.
A detailed breakdown of these buildings is included as Attachment 2, Fashion Island
Reconciliation. The difference between the City’s summary and the as-built plans is generally
attributable to including areas that are not considered GFA, such as a basement loading dock and
large unenclosed overhangs. There also appears to be discrepancies in how building additions were
tracked over time, resulting in an overstatement of the actual GFA. Based on review of these
buildings, there is 49,126 square feet currently identified as GFA that does not meet the definition
of GFA.
During our review of the Block 400 sub-area, we found the GFA identified in the PC for 450
Newport Center Drive is 91,727 square feet (page 12). This includes 3,554 square feet of
mechanical penthouse located on the roof, as shown on the construction drawing for 450 Newport
Center Drive, included as Attachment 3. We note that according to the PC text, “Mechanical
spaces on roofs, which are inaccessible to tenants, are not counted as square footage” (page 13);
and therefore, it is appropriate to remove the 3,554 square feet of mechanical area from the total
GFA for 450 Newport Center Drive.
Similarly, for the Block 800 sub-area, the same issue was identified related to mechanical
penthouses. The as-built GFA shown on the construction drawing for 800 and 840 Newport Center
Drive includes the mechanical rooms on the roofs, which are approximately 7,270 square feet.
Pages from these drawings are included as Attachment 4. Because the PC specifically excludes
mechanical spaces on roofs, these areas should not be included in the square footage calculation
for Block 800. However, only 4,174 square feet of the 7,270 square feet of GFA is eligible to be
recovered because a restaurant building located 880 Newport Center Drive, and which was
included in the construction of 800 and 840 Newport Center Drive was overbuilt by 3,096 square
feet as shown on Attachment 5. That restaurant has now been replaced by an office use. The
following table summarizes our findings regarding the commercial sub-areas of Block 400 and
Block 800.
Commercial Office
City Summary
Table
(square feet)
As-Built Plan
(square feet)
Difference
(square feet)
450 Newport Center 91,727 88,173 3,554
800, 840, and 880
Newport Center 286,166 281,992 4,174
TOTAL 7,728
10
Mr. Jim Campbell
June 22, 2021
Page 3 of 3
Based on review of these buildings, there is 7,728 square feet currently identified as GFA within
Blocks 400 and 800 that does not meet the definition of GFA. Together with Fashion Island, there
is 56,854 square feet that should not be counted as development intensity within the PC boundary.
The 2020 AMR has been updated for your review, to reflect this reconciliation. The updated AMR
is provided as Attachment 6.
We appreciate your review of our preliminary findings and look forward to reconciling our 2021
research with the City’s records for the purpose of accurately tracking GFA within the AMR. As
detailed above, the AMR is the method by which square footage has been reconciled in the past.
We look forward to the City’s review of this reconciliation effort.
Please do not hesitate to contact me with any questions.
Sincerely,
CAA PLANNING, INC.
Shawna L. Schaffner
Chief Executive Officer
c: Joselyn Perez, City Newport Beach
Chase Gilmore, Irvine Company
Attachments:
1. Pages from 2012, 2015 AMR
2. Fashion Island Reconciliation
3. Drawing for 450 Newport Center Drive
4. Drawings for 800-840 Newport Center Drive
5. Building Permits for 880 Newport Center Drive
6. 2020 AMR - Updated
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Attachment No. ZA 3
City Response Letter Dated August 27, 2021
12
COMMUNITY DEVELOPMENT DEPARTMENT
PLANNING DIVISION
100 Civic Center Drive, Newport Beach, CA 92660
(949) 644-3200 Fax: (949) 644-3229
www.newportbeachca.gov
VIA EMAIL
August 27, 2021
Chase Gilmore
Director, Development & Acquisitions
Irvine Company Retail Properties
cgilmore@irvinecompany.com
Re: North Newport Center Planned Community Development Plan, Annual
Monitoring Report – Square Footage Reconciliation
Dear Mr. Gilmore,
This letter is in response to CAA Planning’s June 22, 2021 letter sent on behalf of the
Irvine Company to reconcile the differences in reported building area and gross floor area
(GFA) as defined by the North Newport Center Planned Community (PC56) development
plan. The request includes the following properties: 450 Newport Center Drive (NCD),
Block 800 NCD, 101 NCD (Macy’s), 601 NCD (Neiman Marcus), and 701 NCD
(Bloomingdale’s).
Research by CAA Planning suggests certain areas within these buildings such as
mechanical penthouses, repeating stairways, repeating elevators, and unenclosed
covered areas have been included in reported building area totals whereas they should
not be as they do not meet the definition of GFA.
City staff reviewed each building in detail and the research findings are summarized
below:
450 Newport Center Drive
Irvine Company has requested to reduce the reported building area from 91,727 square
feet to 88,173 square feet by excluding 3,554 square feet of mechanical penthouse area.
The reported building area is taken from plan check number 204-74. Plan check number
204-74 provides a breakdown of square footage for each floor as well as the overall
building area. A 3,554-square-foot mechanical penthouse space appears to be
erroneously included in the City’s reported building area of 91,727 square feet.
13
North Newport Center Planned Community
Square Footage Reconciliation
August 27, 2021
Because the penthouse is for the purpose of housing mechanical equipment only, it does
not count toward GFA and should be excluded.
Staff agrees with CAA Planning’s finding that the GFA of 450 Newport Center Drive should
be 88,173 square feet.
Block 800 Newport Center Drive
Irvine Company has requested to reduce the reported building area of Block 800 NCD
from 286,166 square feet to 281,992 based on the assertion that mechanical penthouse
space was erroneously included in the total.
The 800 block of NCD consists of three buildings with the addresses 800, 840, and 880
NCD. 800 NCD and 840 NCD have been referred to as Tower 1 and Tower 2 in historic
plan check documents. The original reported building area for these three buildings is
286,166 square feet and taken from the gross floor areas listed in Plan Check No. 676-
80. City staff performed an area takeoff for Tower 1 and found that the mechanical
penthouse was in fact already excluded from the floor area tabulations.
Staff disagrees with CAA Planning’s finding and the GFA of Block 800 Newport Center
Drive remains at 286,166 square feet.
Macy’s (101 Newport Center Drive)
Irvine Company has requested to reduce the reported building area of Macy’s from
234,314 square feet to 204,791 square feet based on Plan Check No. 1921-2018.
It is unclear where the reported building area for Macy’s originated from, as this number
does not appear on City-approved plan checks. Staff reviewed historic plan checks
including Plan Check Nos. 451-97, 0743-2006, 0195-2017, and 1921-2018. Staff found
no significant alterations to the Macy’s floor plan to explain the discrepancy in reported
building areas. Staff performed area takeoffs to exclude repeating staircases, mechanical
rooms, and covered entryways, and determined it is likely these covered areas were
erroneously included in the reported building area.
Staff agrees with CAA Planning’s finding that the GFA of 101 Newport Center Drive should
be 204,791 square feet.
Neiman Marcus (601 Newport Center Drive)
Irvine Company has requested to reduce the reported building area of Neiman Marcus
from 158,929 square feet to 154,260 square feet based off the original 1977 building
permit (B9302978) listing the original floor area as 120,000 square feet and a subsequent
addition in 2001 of 34,260 square feet, totaling 154,260 square feet for the building.
14
North Newport Center Planned Community
Square Footage Reconciliation
August 27, 2021
The reported building area for Neiman Marcus of 158,929 square feet is taken from Plan
Check No. 0065-2001. Staff performed area takeoffs of said plan check and found
sufficient evidence to support CAA Planning’s request.
Staff agrees with CAA Planning’s finding that the GFA of 601 Newport Center Drive should
be 154,260 square feet.
Bloomingdale’s (701 Newport Center Drive)
Irvine Company has requested to reduce the reported building area of Bloomingdale’s
from 187,534 square feet to 172,600 square feet. The record is not clear where the
reported building area originated from as there are no historic plan checks utilizing this
number.
A tenant improvement for the building was submitted in 1996 under Plan Check No. 607-
96. This plan check provides a breakdown of floor area for each level of the building. The
total floor area listed is 172,600 square feet, which supports CAA Planning’s research.
Staff agrees with CAA Planning’s finding that the GFA of 701 Newport Center drive should
be 172,600 square feet.
Conclusion
In the above cases where Staff agrees with CAA’s square footage determination, the record
should be reconciled in the 2020 Annual Monitoring Report to reflect the correct square
figures. This practice is consistent with cases in 2012 and 2015 that dealt with record
discrepancies.
For additional information on this matter, please do not hesitate to contact Joselyn Perez,
Assistant Planer, at jperez@newportbeachca.gov or 949-644-3312.
Sincerely,
On behalf of Seimone Jurjis, PE, CBO, Community Development Director
By:
15
North Newport Center Planned Community
Square Footage Reconciliation
August 27, 2021
Attachments:
1) CAA Planning Letter dated June 22, 2021
cc:
Shawna L. Schaffner
CEO of CAA Planning
sschaffner@caaplanning.com
16
Tmplt: 07/25/19
Attachment No. ZA 4
Annual Report (January 2020 – December 2020)
17
January 2021
North Newport Center
Zoning Implementation and Public Benefit Agreement
Annual Report
Year 2020 (January 2020-December 2020)
Prepared for:
City of Newport Beach
Planning Division
Contact: Jim Campbell
(949) 644-3210
Submitted by:
Irvine Company
550 Newport Center Drive
Newport Beach, CA 92660
Contact: Jeff Davis
(949) 720-2409
Prepared by:
CAA Planning, Inc.
30900 Rancho Viejo Road, Suite 285
San Juan Capistrano, CA 92675
Contact: Shawna Schaffner
(949) 581-2888
18
Annual Report – 2020 (January 2021) iii
North Newport Center Zoning Implementation and Public Benefit Agreement – Expires August 2032
Contents
Introduction ............................................................................................................................................... 1
Figure 1 – Sub-Areas in North Newport Center Planned Community ............................................. 1
Summary Table – North Newport Center as of December 31, 2019 ............................................... 2
Development Summary ............................................................................................................................. 2
Fashion Island .................................................................................................................................. 5
Block 100 .......................................................................................................................................... 5
Block 400 .......................................................................................................................................... 5
Block 500 .......................................................................................................................................... 5
Block 600 .......................................................................................................................................... 5
Block 800 .......................................................................................................................................... 5
San Joaquin Plaza ............................................................................................................................. 6
Public Benefits ........................................................................................................................................... 7
Public Benefits Table ........................................................................................................................ 7
Ongoing Obligations and Public Benefits ................................................................................................ 15
City Concurrence ..................................................................................................................................... 17
Annual Report Distribution ...................................................................................................................... 17
4.4 Circulation Enhancements to Public Right of Way – Completed 2013 .............................................. 18
4.9 B. Fashion Island Water Quality Enhancements – Fashion Island Parking Areas .............................. 19
Fashion Island Non-Development Water Quality Treatment – Completed 2014 ......................... 19
Compliance to Date, Section 4.9, Paragraph B – Development Agreement ................................. 19
19
Annual Report – 2020 (January 2021) 1
North Newport Center Zoning Implementation and Public Benefit Agreement – Expires August 2032
Introduction
The purpose of the 2020 Annual Report (AR) for North Newport Center is to provide an accurate record of the
development that has occurred within North Newport Center during 2020. The North Newport Center Planned
Community Development Plan (NNCPC) as approved in 2007 included the following sub-areas: Fashion Island,
Block 500, Block 600 and San Joaquin Plaza. The NNCPC was subsequently amended in November 2009 to include
portions of Blocks 100, 400, 800 and an open space parcel from the Newport Village Planned Community. The
NNCPC was amended again in 2011 to expand Block 800 to include the Pacific Mutual Financial Center.
Subsequently in 2012, the NNCPC was amended to increase the allowable residential development intensity by
a total of 94 units and allocating the 94 units plus the 430 residential units already allocated to the MU-H3
portions of the NNCPC solely to San Joaquin Plaza. In connection with the amendment to the NNCPC, an amend-
ment to the Zoning Implementation and Public Benefit Agreement DA2007-002 (Development Agreement) was
approved. The Development Agreement amendment included the incorporation of portions of Blocks 100, 400,
the open space parcel in Newport Village, Block 800 in its entirety, as well as the additional 94 residential units.
In 2015, the NNCPC was amended for a fourth time to allow for a transfer of development intensity from outside
the NNCPC, to include a portion of Block 500, and to update various regulations. This AR contains several tables
that show development within North Newport Center as a whole and development by sub-area. The tables
provide a comprehensive review of the development within North Newport Center in terms of existing
development, maximum development (allowed by the General Plan) and development that has occurred during
2020. The tables break down each sub-area of North Newport Center individually and track the area developed
by land use, as applicable. A map that depicts the sub-areas within the NNCPC covered by this AR is shown as
Figure 1.
Figure 1 – Sub-Areas in North Newport Center Planned Community
20
Annual Report – 2020 (January 2021) 2
North Newport Center Zoning Implementation and Public Benefit Agreement – Expires August 2032
Summary Table – North Newport Center as of December 31, 2020
Sub-Area Entitlement Existing Development
Development
during 2020 Remaining Entitlement
Fashion Island
1,523,416
1,470,097
–
53,319
680 theater seats 450 theater seats – 230 theater seats
or 3,720 s.f. 1
Block 100 121,114 121,114 – 0
Block 400 91,727
88,173
– 3,554
Block 500 623,525 622,622 – 903
Block 600 1,605,899 2 1,310,899 – 0
295 hotel rooms 295 hotel rooms – 0
Block 800 286,166
245 residential units
286,166
245 residential units
– 0
San Joaquin Plaza 95,550 95,550 – 0
524 residential units 524 residential units – 0
All numbers in this table are shown in square feet (s.f.) unless otherwise indicated.
1 The remaining entitlement is 230 seats, which has a gross floor area equivalent of 3,720 s.f. (16.1765 s.f./seat x 230 seats). 2 The General Plan entitlement figure includes allocations for hotel square footage, which is not represented in the Existing Development or
Remaining Entitlement columns.
Development Summary
Annual monitoring of development is required by Development Agreement 2007-002 between the City of
Newport Beach and Irvine Company as part of the North Newport Center Project which is in effect until 2032.
Below is a list of permits that were issued within North Newport Center between January and December 2020.
Not included in the list are accessory permits such as those for signs, cell sites, ADA upgrades, mechanical
equipment or elevator repairs, or repairs and upgrades within the Villas at Fashion Island and The Colony
residential developments. Note that the City bases the building permit gross floor area (g.f.a.) calculations on
the Building Code definition and not the entitlement g.f.a. on the definition contained in the NNCPC,
4th Amendment, which is slightly different from the Building Code and excludes support uses (Section II.3). There
were no permits issued or finalized in 2020 that resulted in changes to the gross floor area entitlement.
A review the g.f.a. of some of the older buildings in Fashion Island and Block 400 identified discrepancies
between the g.f.a. identified on the City’s building inventory for North Newport Center, and that identified on
the City-approved building plans and building permits. The difference between the City’s building inventory for
North Newport Center and the as-built plans is generally attributable to areas that are not considered g.f.a., such
as mechanical penthouses and large unenclosed overhangs. However, there are also discrepancies in how
building additions were tracked over time, resulting in an overstatement of the actual g.f.a.
The subject buildings in Fashion Island are 101, 601, and 701 Newport Center Drive and in the subject building
in Block 400 is 450 Newport Center Drive. Based on the review of these buildings, 52,680 square feet was
identified as g.f.a. that does not meet the definition of g.f.a. and has been shown as recovered in the Summary
Table (Page 2) and the Development Summary (Page 4). The City has conducted its own analysis and is in
concurrence with these g.f.a. numbers as being recoverable. Similar square footage reconciliations were
conducted in association with the 2012 and 2015 AMRs.
21
Annual Report – 2020 (January 2021) 3
North Newport Center Zoning Implementation and Public Benefit Agreement – Expires August 2032
Date Sub-Area Summary of Action
Feb 2019
Nov 2019
Jan 2020
Feb 2020
Jun 2020
Jun 2020
Aug 2020
Sept 2020
Sept 2020
Sept 2020
Oct 2020
Oct 2020
Dec 2020
Fashion Island
(Issued)
(Issued)
(Final)
(Issued)
(Final)
(Final)
(Final)
(Issued)
(Issued)
(Issued)
(Issued)
(Final)
(Issued)
811 Newport Center Drive (X2019-0035)
957/953 Newport Center Drive (X2019-3700)
807 Newport Center Drive (X2019-2510)
957 Newport Center Drive (X2019-4026)
809 Newport Center Drive (X2019-0769)
907 Newport Center Drive (X2020-0292)
143 Newport Center Drive (X2020-0521)
579 Newport Center Drive (X2019-3235)
579 Newport Center Drive (X2019-3236)
517 Newport Center Drive (X2019-3237)
415 Newport Center Drive (X2020-2061)
1085 Newport Center Drive (X2020-1467)
1065 Newport Center Drive (X2020-0413)
Jan 2020
May 2020
Jul 2020
Jul 2020
Aug 2020
Sept 2020
Block 400
(Issued)
(Final)
(Final)
(Final)
(Final)
(Final)
450 Newport Center Drive (X2019-2818)
450 Newport Center Drive (X2019-1015)
450 Newport Center Drive (X2020-0496)
450 Newport Center Drive (X2020-1043)
450 Newport Center Drive X2020-0961)
450 Newport Center Drive X2020-0957)
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North Newport Center Zoning Implementation and Public Benefit Agreement – Expires August 2032
Date Sub-Area Summary of Action
Mar 2020
Jul 2020
Sept 2020
Oct 2020
Oct 2020
Dec 2020
Dec 2020
Block 500
(Final)
(Final)
(Final)
(Issued)
(Final)
(Issued)
(Issued)
520 Newport Center Drive (X2019-3427)
520 Newport Center Drive (X2020-0313)
520 Newport Center Drive (X2020-1270)
520 Newport Center Drive (X2020-1998)
520 Newport Center Drive (X2020-1332)
2071 San Joaquin Hills Road (X2020-2556)
2071 San Joaquin Hills Road (X2020-2542)
Jan 2020
Jan 2020
Jan 2020
Mar 2020
Apr 2020
Apr 2020
Apr 2020
Apr 2020
Jun 2020
Jun 2020
Jun 2020
Jun 2020
Jul 2020
Jul 2020
Aug 2020
Aug 2020
Aug 2020
Aug 2020
Sept 2020
Sept 2020
Oct 2020
Oct 2020
Oct 2020
Oct 2020
Oct 2020
Nov 2020
Block 600
(Final)
(Issued)
(Issued)
(Final)
(Final)
(Issued)
(Final)
(Issued)
(Issued)
(Issued)
(Issued)
(Issued)
(Issued)
(Final)
(Final)
(Final)
(Issued)
(Issued)
(Issued)
(Issued)
(Final)
(Issued)
(Issued)
(Issued)
(Issued)
(Issued)
610 Newport Center Drive (X2019-1651)
610 Newport Center Drive (X2019-3833)
660 Newport Center Drive (X2019-4140)
610 Newport Center Drive (X2019-1649)
610 Newport Center Drive (X2020-0504)
610 Newport Center Drive (X2020-0675)
610 Newport Center Drive (X2019-1547)
660 Newport Center Drive (X2019-3900)
620 Newport Center Drive (X2020-1070)
610 Newport Center Drive (X2020-0743)
610 Newport Center Drive (X2020-0382)
610 Newport Center Drive (X2020-0561)
660 Newport Center Drive (X2019-4107)
660 Newport Center Drive (X2020-0890)
610 Newport Center Drive (X2020-0573)
660 Newport Center Drive (X2020-0726)
660 Newport Center Drive (X2020-1519)
660 Newport Center Drive (X2020-1520)
610 Newport Center Drive (X2020-1838)
610 Newport Center Drive (X2020-1997)
660 Newport Center Drive (X2020-0164)
650 Newport Center Drive (X2020-1333)
650 Newport Center Drive (X2020-1334)
650 Newport Center Drive (X2020-1335)
620 Newport Center Drive (X2020-1946)
620 Newport Center Drive (X2020-0456)
Aug 2020
Aug 2020
Block 800
(Final)
(Final)
840 Newport Center Drive (X2020-0155)
840 Newport Center Drive (X2020-0443)
Dec 2019
San Joaquin Plaza
(Issued)
888 San Clemente Drive (X2019-3920)
The tables below show development within North Newport Center by sub-area. All numbers are shown in gross
square feet unless otherwise indicated. The tables are intended to track development annually and provide a
comprehensive listing of development by land use. The “Demolished” column reflects the final square footage
demolished, not the square footage stated in a demolition permit. Similarly, the “Built” column reflects the
square footage provided in a Certificate of Use and Occupancy and not the square footage stated in a building
permit. There were no permits issued or finalized in 2020 that resulted in changes to the gross floor area
entitlement.
23
Annual Report – 2020 (January 2021) 5
North Newport Center Zoning Implementation and Public Benefit Agreement – Expires August 2032
Fashion Island
Entitlement
January 2020
Existing
Development
January 2020
Recovered Demolished
Permitted
(Demo/New) Built
Tracking
Number
Existing
Development
December 2020
Entitlement
December 2020
Land Use
Regional Commercial 1,523,416 1,519,223 49,126
1,470,097
1,523,416
Theater Seats 680 450 450 680
Block 100
Entitlement
January 2020
Existing
Development
January 2020
Transferred/
Converted Demolished
Permitted
(Demo/New) Built
Tracking
Number
Existing
Development
December 2020
Entitlement
December
2020
Land Use
Office/Commercial 121,114 121,114 121,114 121,114
Block 400
Entitlement
January 2020
Existing
Development
January 2020
Recovered Demolished
Permitted
(Demo/New) Built
Tracking
Number
Existing
Development
December 2020
Entitlement
December 2020
Land Use
Office/Commercial 91,727 91,727 3,554
88,173
91,727
Block 500
Entitlement
January
2020
Existing
Development
January 2020
Transferred/
Converted Demolished
Permitted
(Demo/New) Built
Tracking
Number
Existing
Development
December 2020
Entitlement
December 2020
Land Use
Mixed Use Horizontal
3 (MU-H3) 623,525 622,622 622,622 623,525
Residential Units 0 0 0 0
Block 600
Entitlement
January 2020
Existing
Development
January 200
Transferred/
Recovered Demolished
Permitted
(Demo/New)
Built/
C of O
Tracking
Number
Existing
Development
December 2020
Entitlement
December 2020
Land Use
Mixed Use Horizontal
3 (MU-H3) 1,310,8993 1,310,899 1,310,899 1,310,899*
Residential Units 0 0 0 0
Hotel Rooms 295 295 295 295
3 Reflects only Office Entitlement.
Block 800
Entitlement
January 2020
Existing
Development
January 2020
Transferred
/Converted Demolished
Permitted
(Demo/New) Built
Tracking
Number
Existing
Development
December 2020
Entitlement
December
2020
Land Use
Office/Commercial 286,166 286,166 286,166 286,166
Residential Units 245 245 245 245
24
Annual Report – 2020 (January 2021) 6
North Newport Center Zoning Implementation and Public Benefit Agreement – Expires August 2032
San Joaquin Plaza
Entitlement
January
2020
Existing
Development
January 2020
Transferred/
Converted Demolished
Permitted
(Demo/New) Built
Tracking
Number
Existing
Development
December 2020
Entitlement
December 2020
Land Use
Mixed Use Horizontal
3 (MU-H3) 95,550 95,550 95,550 95,550
Residential Units 524 524 524 524
25
Annual Report – 2020 (January 2021) 7
North Newport Center Zoning Implementation and Public Benefit Agreement – Expires August 2032
Public Benefits
The Public Benefits Table below lists all of the public benefits resulting from Development Agreement No. DA2007-002 entitled The Zoning Implementation
and Public Benefit Agreement (Agreement) between the City of Newport Beach and Irvine Company Concerning North Newport Center and the Amendment
to the Agreement approved in August 2012 (herein referred to as the Development Agreement). Public benefits are listed in Section 4 of the development
agreement. Items that have been completed in previous reporting years are shown as Year Complete. Items completed in the current year are shaded.
Traffic fair-share fees and in-lieu park fees are the sole remaining Development Agreement obligations.
Public Benefits Table
Type of Fee,
Contribution or
Dedication
Development
Agreement
Reference Timing/Milestone Payment/Contribution/Dedication Status
In-Lieu Park Fees for Renovation of Oasis
Senior Center and
for Park Uses
Section 4.1 Paragraphs 1-2 Regardless of whether a subdivision map is approved for any or all of the residential units,
and prior to and as a condition to City’s
issuance of the First Residential Building Permit (but in no event earlier than the Effective Date)
Landowner shall pay to City the greater of (i) the sum of $3,733,333.33 (which is 1/3 of the total Park Fees to be
paid to City under this Agreement) (the “Initial Park Fee”)
or (ii) the applicable Per Unit Park Fees (if the First Residential Building Permit includes more than one
hundred forty-three (143) residential units).
Landowner’s payment of the Initial Park Fee shall entitle Landowner to a credit against payment of the Per Unit
Park Fees for the first one hundred forty-three (143) residential units to be developed on the Property.
Total payment as of December 31, 2014: $3,733,333.33
Responsible party:
Irvine Company
Completed
Date: November 3, 2014
Section 4.1
Paragraph 2
Prior to and as a condition to City’s issuance of
a building permit for development of the one
hundred forty-fourth (144th) residential unit on any portion of the Property located in Newport
Center Block 500, Newport Center Block 600,
or San Joaquin Plaza
Landowner shall pay to City the sum of $17,364.11 (the
difference between the Initial Park Fee and the total Per
Unit Park Fees for 144 residential units)
Total payment as of
December 31, 2014: $17,364.11
Responsible party: Irvine Company
Completed
Date: November 3, 2014
In-Lieu Park Fees for
Renovation of Oasis Senior Center and for Park Uses
Section 4.1
Paragraph 2
Prior to and as a condition to City’s issuance of
each subsequent building permit for residential development within that portion of the Property
Landowner shall pay to City the sum of $26,046.51 per
unit (“Per Unit Park Fees”)
* Less $5,600,000.00 paid on 3/10/09 per Section 4.1, Paragraph 4 (See Page 6 of Annual Report)
Number of units as of
December 31, 2014: 286
Per unit: $26,046.51 *
Total payment: $1,849,302.56
Responsible party: Irvine Company
Completed
Date: November 3, 2014
26
Annual Report – 2020 (January 2021) 8
North Newport Center Zoning Implementation and Public Benefit Agreement – Expires August 2032
Type of Fee,
Contribution or
Dedication
Development
Agreement
Reference Timing/Milestone Payment/Contribution/Dedication Status
In-Lieu Park Fees for Renovation of Oasis
Senior Center and for Park Uses
Section 4.1 Paragraph 3 If Landowner sells any residential unit developed within the Property to a third-party
purchaser in other than a bulk sale of all of the units in a single residential building
Landowner shall pay to City at the time of such sale of an individual residential unit the then-applicable park fee for
such unit as may be in effect at that time within the City of Newport Beach, less a credit for the amount of the Per Unit Park Fee paid prior to that time.
Please see Section 4.1, paragraph 3 for additional information regarding Landowner’s obligation to pay fees
and memorandums to be recorded against the title of
each unit.
Number of units sold as of December 31, 2020: (units) 0
Park fee per unit: $
Total payment: $ 0
Responsible party:
Irvine Company
Completed
In-Lieu Park Fees for
Renovation of Oasis
Senior Center and for Park Uses
Section 4.1
Paragraph 4
If, on the date that City awards a contract for
renovation of the Oasis Senior Center, the total
sum of both the Initial Park Fee and the Per Unit Park Fees paid by Landowner to City to
date is less than the sum of $5,600,000
Within five (5) days after City’s award of the contract,
Landowner shall pay to City the difference (“Park Fee
Advancement”). Landowner’s payment of the Park Fee Advancement shall entitle Landowner to a credit against
the Initial Park Fee (if not paid by the time the Park Fee
Advancement is paid) and against the next Per Unit Park Fees that otherwise would be due and payable to City
until the entire credit is exhausted. After such credit is
exhausted, prior to and as a condition to City’s issuance of each subsequent building permit for residential
development of any portion of the Property located in Newport Center Block 500, Newport Center Block 600, or San Joaquin Plaza, Landowner shall continue to pay the
Per Unit Park Fees as residential building permits are issued.
Date that City awards a contract
for renovation of the Oasis Senior Center
3/10/2009
Check below if answer is “yes.”
The total sum of both the Initial Park Fee
and the Per Unit Park Fees paid by Landowner to City is less than the sum of
$5,600,000 (as of date above)
If box above is checked, then Landowner shall pay to City
“Park Fee Advancement” in the amount of: $5,600,000
No initial park fees paid.
Lump sum payment to City: $5,600,000
Responsible party:
Irvine Company
Completed
Date: 3/10/ 2009
In-Lieu Park Fees for Renovation of Oasis
Senior Center and
for Park Uses
Section 4.1 Paragraph 5 Not specified City shall earmark $5,600,000 of the Park Fees to be paid by Landowner (one-half of the total Park Fees) as a
matching challenge grant to apply toward contributions to
the renovation of the Oasis Senior Center.
Responsible party: City of Newport Beach
Completed date: Early 2009
(prior to construction)
In-Lieu Park Fees for
Renovation of Oasis
Senior Center and for Park Uses
Section 4.1
Paragraph 5
Not Specified City shall apply any Park Fees not spent by City on the
renovation of the Oasis Senior Center to any park use as
determined by City. Landowner acknowledges that the actual amount of funds raised through the matching
challenge may be less than $5,600,000 and that the
amount raised shall not affect the amount of Park Fees payable by Landowner to City.
Responsible party:
City of Newport Beach
Completed date: Early 2009 (prior to construction)
27
Annual Report – 2020 (January 2021) 9
North Newport Center Zoning Implementation and Public Benefit Agreement – Expires August 2032
Type of Fee,
Contribution or
Dedication
Development
Agreement
Reference Timing/Milestone Payment/Contribution/Dedication Status
Public Benefit Fee Section 4.2 Paragraph 1 Not specified Landowner shall pay to City the sum of $27,090,000 as set forth in Section 4.2 (“Public Benefit Fee”), of the
Development Agreement.
Payment in the sum of $27,090,000 paid in full as of November 3, 2014
Responsible party: Irvine Company
Completed (7/26/11 and 11/3/14 as indicated below)
Section 4.2 Paragraph 1 Prior to and as a condition to the issuance of the First Building Permit – 650 Newport Center Drive
Landowner shall pay to City the sum of $13,545,000, which is one-half of the Public Benefit Fee (“Initial Public Benefit Fee”).
Payment: as of July 26, 2011 $13,545,000
Responsible party:
Irvine Company
Completed
Section 4.2
Paragraph 1
Upon the issuance of building permits for the
430 residential units authorized for development within the Property.
The balance of the Public Benefit Fee shall be paid to
City. The amount payable by Landowner to City for each such residential unit shall be the sum of $31,500.
Building permits have been issued for 430
residential units as of November 3, 2014
Total payment (balance of the Public Benefit Fee): $13,545,000
This equates to $31,500 per unit for 430 units.
Total payment as of November 3, 2014
Responsible party: Irvine Company
Completed
Fair Share Traffic Fees Section 4.3 Paragraph 1 The Property is subject to City’s Fair Share Traffic Contribution Ordinance, which requires
the payment of certain fair share traffic fees for
development (“Fair Share Traffic Fees”).
The City is in the process of considering updates and amendments to its Fair Share Traffic Contribution
Ordinance and its Fair Share Traffic Fees and that as a
result of such updates and amendments the Fair Share Traffic Fee charged by City may be increased (the “Initial
Fee Increase”).
Notwithstanding any other provision set forth in the Development Agreement to the contrary, Landowner
agrees that Landowner and the Property shall be subject to the modified Fair Share Traffic Contribution Ordinance including the increased fees payable pursuant to the Initial
Fee Increase. This applies to square footage that was newly entitled under this agreement.
Please see Section 4.3 of the Development Agreement
for additional detailed information pertaining to fees.
Fair Share Traffic Fees paid for 2020: $ None Required
Responsible party:
Irvine Company
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Type of Fee,
Contribution or
Dedication
Development
Agreement
Reference Timing/Milestone Payment/Contribution/Dedication Status
Circulation Enhancements to
Public Right of Way
Section 4.4 Paragraph 1 “Circulation Enhancement Contribution” to reimburse City for City’s expenses incurred for
the design and construction of one or more of the circulation improvements listed in Section 4.4 of the Development Agreement, as
determined by the City’s Director of Public Works, should City choose to approve the
circulation enhancements after its
environmental review and approval process and in compliance with CEQA.
Please refer to Section 4.4, paragraph 1 of the Development Agreement for the list of
circulation enhancements.
Landowner shall contribute to City the sum of Two Million Five Hundred Thousand Dollars ($2,500,000.00)
(“Circulation Enhancement Contribution”).
Check below if answer is “yes.” The City choses to approve, design and
construct one or more of the circulation enhancements listed in Section 4.4 of the Development Agreement
Date: See note below Note: See page 18 for additional information.
If box above is checked, then Landowner
shall contribute up to $2,500,000.00 based on actual costs requested by the City and
the amount spent by Irvine Company on those projects the City agreed could be built by Irvine Company.
Responsible party: Irvine Company
Completed
Date: 12/31/13
Circulation Enhancements to
Public Right of Way
Section 4.4 Paragraph 2 Landowner shall pay the Circulation Enhancement Contribution to City from time to
time after the Effective Date, within thirty (30) days after receipt of written request for reimbursement from City, with any balance to
be paid to City on the date that is sixty (60) months after the Effective Date (the Effective
Date is January 18, 2008) regardless of
whether City has incurred the cost for the foregoing improvements.
Alternatively, Landowner and City may mutually agree upon arrangements for Landowner to
use the Circulation Enhancement Contribution to construct the foregoing improvements subject to City’s approval.
Landowner shall pay the Circulation Enhancement Contribution to City from time to time after the Effective
Date and Landowner will pay any balance to the City up to a maximum contribution of $2,500,000.00 less the cost for any improvements constructed by Landowner.
Contributions shall be paid by Landowner upon receipt of invoices from the City.
Indicate payment(s) below (if applicable): Amount paid by Landowner to City
for Circulation Enhancement Contribution as of December 31, 2013 $1,905,803
Date that is 60 months after the Effective Date: January 18, 2013
Amount of balance paid by
Landowner to City as of ___________ (date)
Responsible party:
Irvine Company
Completed
or
Check this box if Landowner and City mutually agree for Landowner to use
contribution to construct improvements.
Date: ________________ Amount used to construct
improvements as of December 31, 2013: $676,222
Responsible party:
Irvine Company
Completed
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Type of Fee,
Contribution or
Dedication
Development
Agreement
Reference Timing/Milestone Payment/Contribution/Dedication Status
Dedication of Public
Rights of Way
Section 4.5
Paragraph 1
At such time as City provides legal descriptions
for the public rights of way, which descriptions
shall be consistent with the design of the
circulation improvements for said public right of
way.
Landowner shall provide an offer of dedication to City for
the additional public rights of way necessary for
circulation improvements on the north side of San Miguel
Drive between MacArthur Boulevard and Avocado
Avenue and on Avocado Avenue between San Nicolas
Drive and San Miguel Drive.
Please see Section 4.5 of the Development Agreement
for additional information.
Responsible party: Irvine Company
Completed
No longer applicable due to dedication of Avocado parcel on October 17, 2008, as
described in Section 4.6 Paragraph 1 below. Avocado parcel dedication documented in
2008 Annual Report.
Dedication of Public Rights of Way Section 4.5 Paragraph 1 At such time as City provides legal descriptions for the public rights of way, which descriptions shall be consistent with the design of the
circulation improvements for said public right of way.
Landowner shall convey the public right of way to City (through the recordation of an offer of dedication without any restrictions or qualifications) free and clear of all
recorded and unrecorded monetary liens, any delinquent property taxes or assessments, and all tenancies,
lessees, occupants, licensees, and all possessory rights
of any kind or nature.
In addition, upon the conveyance, there shall not be any
violation of any law, rule, or regulation affecting the public right of way or its use, including any environmental law or regulation, and Landowner shall be responsible for
causing said condition to be satisfied.
Check this box if the Landowner has recorded an offer of dedication to the City without any restrictions or qualifications.
Responsible party: Irvine Company
Completed
No longer applicable due to dedication of Avocado parcel on October 17, 2008, as
described in Section 4.6 Paragraph 1 below.
Avocado parcel dedication documented in 2008 Annual Report.
Open Space Dedication Section 4.6 Paragraph 1 Landowner shall dedicate to City (through the recordation of a grant deed) the open space
parcel in Newport Center comprised of approximately 3.18 acres of land area, bounded on the north by the Orange County
Transportation Authority site, the east by MacArthur Boulevard, the south by San Miguel
Drive, and the west by Avocado Avenue
(“Open Space Parcel”),within thirty (30) days after the earliest of the following: (i) City has
awarded a construction contract for the
construction of City Hall at any location within the City or (ii) the option to purchase the Option
Site has terminated as provided in Section 4.8.1 of Development Agreement No. DA2007-002.
Landowner shall convey the Open Space Parcel for open space or public facilities purposes, to City free and clear
of all recorded and unrecorded monetary liens, any delinquent property taxes or assessments, and all tenancies, lessees, occupants, licensees, and all
possessory rights of any kind or nature.
Check below if the answer to (i) or (ii) is “yes.”
(i) City has awarded a construction
contract for the construction of City Hall at any location within the City
Date: Not Applicable
(ii) the option to purchase the Option Site has terminated as provided in Section
4.8.1 of Development Agreement No.
DA2007-002.
Date: May 27, 2008
Within 30 days after the earliest of one of the
two events listed above, Landowner shall dedicate to City (through the recordation of a
grant deed) the open space parcel in Newport Center comprised of approximately 3.18 acres of land area
Check this box once the grant deed has been recorded.
Date: October 17, 2008
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Type of Fee,
Contribution or
Dedication
Development
Agreement
Reference Timing/Milestone Payment/Contribution/Dedication Status
Open Space Dedication Section 4.6 Paragraph 1 Not specified Landowner shall, at its sole cost and expense, cause a title company selected by City to issue to City an owner’s
policy of title insurance for the Open Space Parcel with liability in an amount reasonably determined by City (but not exceeding the fair market value of the Open Space
Parcel) showing fee title to the Open Space Parcel vested in City, free and clear of the liens, rights, and
encumbrances referred to in Section 4.6 of Development
Agreement No. DA2007-002.
Check this box once Landowner, at its sole cost and expense, has caused a title
company selected by City to issue to City an owner’s policy of title insurance for the Open Space Parcel
Date: October 17, 2008
Responsible party:
Irvine Company
Retrofit Sprinkler
Systems
Section 4.9
Paragraph A
The Newport Center Drive system retrofit shall
be completed by June 2008.
Landowner shall retrofit the existing sprinkler systems in
the Newport Center Drive parkways and medians to low
flow technology with the following specifications:
(1) The control system must monitor and adjust itself not
less than daily, using either evapotranspiration rates for
the Corona del Mar microclimate or soil moisture levels monitored at enough locations in the irrigation area as to
cover each soil and slope type in Newport Center.
(2) The control system must adjust to rain conditions to
limit or eliminate watering during rain events.
(3) The sprinkler heads must eliminate overspray onto roads, sidewalks, and other hardscape either by using highly targeted heads that only water the plant material or
by using a sprinkler-like wicking system, such as the Jardinière system
(4) The performance of the sprinkler systems must be
monitored on a regular basis. Landowner agrees to install flow meters to detect line and/or sprinkler head breaks
when wireless flow meter technology is proven and
commercially available.
Check each box below upon implementation
of the corresponding low flow technology
listed to the left.
(1)
(2)
(3)
(4)
Check this box once the Newport Center Drive system retrofit is completed.
Date: November 1, 2008
Responsible party: Irvine Company
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Type of Fee,
Contribution or
Dedication
Development
Agreement
Reference Timing/Milestone Payment/Contribution/Dedication Status
Retrofit Sprinkler Systems Section 4.9 Paragraph A The Fashion Island retrofit shall be completed in phases in conjunction with the water quality
enhancements in Section 4.9B of the Development Agreement.
Landowner shall retrofit the existing sprinkler systems in the landscape areas within Fashion Island to low flow
technology with the following specifications:
(1) The control system must monitor and adjust itself not less than daily, using either evapotranspiration rates for
the Corona del Mar microclimate or soil moisture levels monitored at enough locations in the irrigation area as to
cover each soil and slope type in Newport Center.
(2) The control system must adjust to rain conditions to limit or eliminate watering during rain events.
(3) The sprinkler heads must eliminate overspray onto roads, sidewalks, and other hardscape either by using highly targeted heads that only water the plant material or
by using a sprinkler-like wicking system, such as the Jardinière system
(4) The performance of the sprinkler systems must be
monitored on a regular basis. Landowner agrees to install flow meters to detect line and/or sprinkler head breaks when wireless flow meter technology is proven and
commercially available.
Check each box below upon implementation of the corresponding low flow technology
specification listed to the left.
(1)
(2)
(3)
(4)
Check this box once the Fashion Island retrofit is completed
Date: December 2009
Sprinkler retrofit is 100% complete.
Responsible party:
Irvine Company
Fashion Island Water Quality
Enhancements
Section 4.9 Paragraph B Not specified Landowner commits to expend a minimum of $1 million to enhance the water quality treatment (which could include
bio-filtration, media filtration or other technology) of those surface parking areas of Fashion Island which are not otherwise included within the new development or
redevelopment projects.
Landowner has full discretion as to the treatment methods
utilized and improvement phasing, to ensure that the
improvements integrate with the water quality treatment plans of the new development areas.
For the year 2014, indicate the amount expended to enhance the water quality
treatment of those surface parking areas in Fashion Island:
For 2014 $47,300
Cumulative Total – see page 19 for additional information $1,030,674
Completed
The amount spent above is as of December 31, 2014.
Responsible party: Irvine Company
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Type of Fee,
Contribution or
Dedication
Development
Agreement
Reference Timing/Milestone Payment/Contribution/Dedication Status
Fashion Island Water Quality
Enhancements
Section 4.9 Paragraph B Annually. The first report is due by January 18, 2009 (one year after the Effective Date of
January 18, 2008).
Landowner agrees to make annual reports to the City regarding the progress of these enhancements including
the work performed and the amount expended.
Check this box when the 2014 Annual Report is submitted to the City.
Date: January 16, 2015
Maintenance was conducted on the water quality treatment systems. See page 19 for
additional information for year 2014.
Responsible party:
Irvine Company
Cooperation of Landowner if City
Hall Constructed on
Property North of Library
Section 4.10 Paragraph 1 If City elects to construct a new City Hall on the property located on the east side of Avocado
Avenue, north of the Central Library
Landowner shall cooperate in good faith with City to implement any necessary land use regulations, including
zoning amendments, and to release and terminate the
use restrictions contained in the deed for the property to allow for and accommodate construction of a new City
Hall on that site.
Check this box if the City elects to construct a new City Hall on the site north
of the Central Library.
Check this box once Landowner has cooperated in good faith with the City and
has released and terminated the use
restrictions contained in the deed for the property.
Date: May 20, 2008
Responsible party: Irvine Company
Dedication of Lower
Castaways
Section 4.11
Paragraph 1
Upon issuance of the First Building Permit Landowner shall dedicate to City the Lower Castaways
site for municipal or municipally sponsored uses allowed under the General Plan’s Recreational Marine
Commercial designation, such as park, marine educational facility, marine research and conservation facility, or marine and harbor dependent service and
support uses and other similar uses in furtherance of the Tidelands Trust.
Check this box once the first building
permit has been issued. Date: Not Applicable
Check this box once the Lower Castaways site has been dedicated to the City
Date: October 17, 2008
Responsible party: Irvine Company
Dedication of Lower Castaways Section 4.11 Paragraph 1 Not specified The property shall have a deed restriction in favor of Landowner which shall restrict the City’s use of the property to such uses (listed in the row above), and allow
the City to contract with a for profit or non-profit entity to operate certain municipal facilities or to use the property
in furtherance of such uses; provided that the City may
not transfer the property, by sale or long-term lease to any private, for-profit company for any commercial boat
marina.
Check this box once a deed restriction has been issued in favor of the Land-owner for the Lower Castaways site
Date: October 17, 2008
Responsible parties:
Irvine Company and the City of Newport
Beach
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Ongoing Obligations and Public Benefits
The table below lists ongoing obligations from Irvine Company and additional public benefits resulting from Development Agreement No. DA2007-002
referenced above and as amended in August 2012. Ongoing obligations and public benefits listed in the table below are from various sections of the
Development Agreement, not including Section 4, Public Benefits.
Type of Fee,
Contribution or
Dedication
Development
Agreement
Reference Timing/Milestone Payment/Contribution/Dedication Status
Implement and
Document Compliance with
AHIP
Section 3 Implementation schedule:
* Certificate of use and occupancy for 100th market rate unit / one-third of required units.
* Certificate of use and occupancy for 200th
market rate unit / one-third of required units. * Certificate of use and occupancy for 300th
market rate unit / one-third of required units.
Affordable housing agreement will be executed and recorded for designated affordable units in The Bays
apartment complex before the point where a certificate of use and occupancy is issued for the related market rate units.
TIC must implement and document compliance with
the Affordable Housing Implementation Plan (“AHIP”) as amended and adopted in August 2012.
Check the appropriate box once an
affordable housing agreement has been executed and recorded for each phase
below.
Affordable Housing Agreement Executed: August 5, 2015
Recorded: September 15, 2015
100th market rate unit Date: October 6, 2017
200th market rate unit Date: October 6, 2017
300th market rate unit
Date: October 6, 2017
Responsible party:
Irvine Company
Pubic Benefit Fee Section 6
(Amendment)
A fee shall be paid for the 431st unit and all
subsequent units at the time the building permit is issued
A total of $63,000.00 per unit for the additional 94
units approved in 2012 shall be paid. The total payment is $5,922,000.00
Building permit issuance for units
431 through 524.
Date: November 3, 2014
Payment: $5,922,000.000
Responsible party: Irvine Company
Public Benefit Fee for Parks Section 7 (Amendment) Prior to issuance of each building permit a Public Benefit Fee for parks shall be paid on or before July 1, 2013.
TIC shall pay $26,046.51 per unit for each of the additional 94 residential units added to the NNCPC. Amount paid by TIC to City for Public Benefit Fee for Parks: $2,448,371.94
Date: July 1, 2013
Responsible party:
Irvine Company
Complete*
*Amount was paid on or before July 1, 2013
but not reported in the 2013 Annual Report
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Type of Fee,
Contribution or
Dedication
Development
Agreement
Reference Timing/Milestone Payment/Contribution/Dedication Status
Development of
Option Site with 72,000 Square Feet of office use
Sections 6.7 and
7.1
TPO approval and compliance with the fair share
traffic fee requirements must occur before TIC can develop the Option Site.
Since the City will not be developing the Option Site
with 72,000 square feet:
TIC must conduct a traffic analysis, provide traffic mitigation in compliance with the Traffic Phasing
Ordinance (“TPO”), pay the applicable Fair Share Traffic Fees, and obtain TPO approval from the Planning Commission (appeal goes to City Council)
before it can develop the Option Site with 72,000 square feet of office use.
Check this box when TPO approval
and compliance is attainted
Date: August 7, 2008
Responsible party:
Irvine Company
Complete Construction of a
Third Eastbound
Left Turn Lane at the Intersection of
MacArthur Blvd. and San Joaquin Hills Road
Section 7.3 No later than the earlier of: (1) the date the City issues the certificate of occupancy for any new
development under the First Building Permit (but
specifically excluding the building permit for the Parking Structure), or (2) the date that is 60 months
after the Effective Date.
60 months after the Effective Date is January 18, 2013 (60 months after January 18, 2008).
Complete construction of a third eastbound left turn lane at the intersection of MacArthur Boulevard and
San Joaquin Hills Road (within the existing right of
way except for any needed dedication at the southwest corner).
Check this box once lane construction is complete
Date: October 2012
Responsible party: Irvine Company
Reimbursement for
Bayside Walkway
Connection
Section 8
(Amendment)
Payment by Landowner to City within 90 days after
receipt of written notice that contract for project
construction has been awarded.
No more than $200,000.00 reimbursement for actual
costs for plans, specifications, permits and/or
construction.
Amount paid by Landowner
to City: $152,257.22
Date: July 5, 2014
Responsible party:
Irvine Company
Complete
Annual Review of Compliance with Code Sections
Section 14 First annual review (including an updated tracking chart of built intensity and provision of public benefits) must take place by January 18, 2009 (one
year after the Effective Date of January 18, 2008).
The parties must conduct annual review of compliance with California Government Code sections 65865 and 65865.1 and City of Newport
Beach Municipal Code §15.45.070.
TIC must document the current status of its entitlement use (i.e., a tracking chart of built intensity)
and its provision of the public benefits identified in Section 4 of the Development Agreement.
Check this box once the first annual review has taken place
Date: January 16, 2009
(City Council approval February 24, 2009)
Responsible party:
Irvine Company
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City Concurrence
By signing below, the City acknowledges its concurrence with the information presented in the Annual Report.
City Acknowledgement
Signature Date
Title
Annual Report Distribution
A complete Annual Report for North Newport Center shall be completed and distributed no later than January
18 following each prior year to the individuals listed below.
City of Newport Beach
100 Civic Center Drive
Post Office Box 1768
Newport Beach, California 92658-8915
Attn: City Manager
City of Newport Beach
100 Civic Center Drive
Post Office Box 1768
Newport Beach, California 92658-8915
Attn: City Attorney
Irvine Company
550 Newport Center Drive
Newport Beach, California 92660-0015
Attn: Jeff Davis
Latham & Watkins LLP
600 West Broadway, Suite 1800
San Diego, California 92101-3375
Attn: Christopher W. Garrett
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4.4 Circulation Enhancements to Public Right of Way – Completed 2013
Section 4.4 of the North Newport Center Zoning Implementation and public Benefit Agreement requires that individual enhancement projects be established through
discussion with the City of Newport Beach Director of Public Works. The table below lists the individual projects resulting from those discussions and the actual or estimated
cost for individual project components as of December 31, 2013. Projects 1-4 were completed in 2012. Project 5 was completed in 2013. As shown in the table, the total
Irvine Company contribution through a combination of direct construction costs and reimbursement to the city exceeded the established maximum requirement of
$2,500,000.
North Newport Center – Circulation Enhancements to Public Right of Way
Transportation Improvements Program
Completed December 31, 2013
Project Estimated Project Cost1
Potential CEC
Contribution
Cumulative CEC Total
Potential Contribution
(Maximum Contribution
Limited To $2,500,000)2
Remaining CEC
Commitment
1. San Miguel Widening and Intersection Improvements (MacArthur to west of Avocado)
including:
- Signal modifications at MacArthur and Avocado
- Relocation of NW corner entry monument and pine tree replacement
(Complete 2012)
Contract Cost = $ 1,355,6503
CIOSA Funding = $ 450,330
Remaining Cost = $ 905,320
City Reimbursement = $ 905,320
Additional Costs = $ 42,8884
Total Contribution = $ 948,208 $948,208 $1,551,792
2. Upgrade Existing Newport Center Traffic Signals (City Project No. C3002009)
including:
- Interconnection of Signals
- Traffic Signal @ Anacapa/Newport Center Drive (Partial)
- Signal Modifications @ San Miguel/Newport Center Drive (Complete)
(Complete 2012) $920,9645 $910,4836 $1,858,691 $641,309
3. Newport Center Drive Parking Revisions
(Complete 2012) $90,000 $90,0007 $1,948,691 $551,309
4. Add fourth leg to Center Drive intersection with Newport Center Drive and signalize
(Complete 2012) $300,0008 $354,4969 $2,303,187 $196,813
5. Operational Improvements to streets adjacent to Blocks 500 and 600 of Newport
Center Drive (Santa Rosa Revisions - Built by Irvine Company) (Complete 2013) $240,828 $278,83810 $2,582,02511 -0-
1 As established in Section 4.4 of the 2011 North Newport Center Annual Report
2 Per North Newport Center, “Zoning Implementation and Public Benefit Agreement” – Section 4.4 (December 18, 2007)
3 Excluding City contributions of $125,000 (City Hall costs for Farallon City Hall site entry)
4 Direct costs to Irvine Company incurred outside of City Contract
5 Based on Contract awarded (6/14/11) including $51,000 of contingencies
6 Per Tony Brine’s September 13, 2013 e-mail
7 Per $90,000 final cost, consisting of $51,200 in contractor costs (per 9/13/13 e-mail from Tony Brine) and $38,800 spent by Irvine Company on project development and design
8 Per Irvine Company documentation
9 Per final contract costs provided by Irvine Company
10 Per Irvine Company’s final project cost for design and construction
11 The total amount paid/contribute by Irvine Company, therefore, exceeds the Maximum Contribution by $85,025.
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4.9 B. Fashion Island Water Quality Enhancements – Fashion Island Parking Areas
Fashion Island WQMP Master Plan and Treatment - A master treatment plan has been created for all parking
lot surface areas in Fashion Island, taking into consideration timing of development phasing, maximizing
treatment potential for non-development areas and implementing construction efficiencies for cost
minimization.
Technical oversight on treatment design and selection to meet State Water Quality Treatment requirements
utilizing bio-retention, media filtration and other technology was provided by Stantec Civil Engineering, NMG
Soil Engineering and Geosyntec Engineering, a leading bio-retention engineering company.
The proposed treatment plan when fully implemented would treat 95% of the parking lot surface areas and 95%
of building and hardscape areas. The treatment design will include four bio-retention systems and six media
cartridge vault systems designed to treat a total tributary area of 1,687,617 square feet of surface parking area,
including 1,539,099 square feet of Non-Development area. An additional 1,283,180 square feet of retail building
area, including 1,096,658 square feet of Non-Development area, will be treated as a result of utilization of
existing storm line systems. Nineteen percent of non-development tributary area will be treated by bio-retention
systems with the remaining 81% treated by media cartridge vault. Additional water quality improvements will
occur in future years.
The following tables identify the Non-Development Water Quality Treatment from 2008 through December 31,
2014, and the compliance to date with Section 4.9, Paragraph B of the Development Agreement. Water quality
treatment costs in 2014 include maintenance of the water quality treatment systems.
Fashion Island Non-Development Water Quality Treatment – Completed 2014
Location/Name
Tributary
Area (sf)1
Non-
Development
Area (sf)2
Installation
Cost
Operational
Cost Total Cost
Total Cost
2008
Total Cost
2009
Total Cost
2010
Total Cost
2011
Total Cost
2012
Total Cost
2013
Total Cost
2014
1 Bldg. B
and C 299,623 174,240 $121,709 - $121,709 - - - - $121,709 -
3 PS2
Frontage 324,251 16,273 $10,932 - $10,932 - $10,932 - - - -
3 Bldg. D 58,735 4,000 $88,748 - $88,748 - - - - $88,748
4 PS2 160,453 102,727 $99,020 - $99,020 - $99,020 - - - -
5,6 Center
Drive 406,642 349,787 $217,957 - $217,957 - - - - $217,957 -
7,8 Eastside 871,133 432,234 $282,158 $250 $282,408 $112,961 $169,447 - - - -
Maintenance - - - - - - - $34,000 $34,000 $47,300 $47,300 $47,300
Total $731,776 $250 $732,026 $112,961 $279,399 $34,000 $34,000 $386,966 $136,048 $47,300
1 This figure represents the total area treated and includes Development and Non-Development areas.
2 This figure represents only the Non-Development parking lot surface areas treated.
Compliance to Date, Section 4.9, Paragraph B – Development Agreement
Commitment Existing Enhancement
2014
Enhancement
Commitment
To-Date Remaining Commitment
$1,000,000 $983,374 $47,300 $1,030,674 $0
38