HomeMy WebLinkAboutPC2021-026 - RECOMMENDING THE CITY COUNCIL APPROVE OF A FIFTH AMENDMENT TO THE HOAG MEMORIAL HOSPITAL PRESBYTERIAN DEVELOPMENT AGREEMENT (DEVELOPMENT AGREEMENT NO. DA2021-001) FOR THE PROPERTY LOCATED AT 1 HOAG DRIVE (PA2021-184)RESOLUTION NO. PC2021-026 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, RECOMMENDING THE CITY COUNCIL APPROVE OF A FIFTH AMENDMENT TO THE HOAG MEMORIAL HOSPITAL PRESBYTERIAN DEVELOPMENT AGREEMENT (DEVELOPMENT AGREEMENT NO. DA2021-001) FOR THE PROPERTY LOCATED AT 1 HOAG DRIVE (PA2021-
184)
THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS:
SECTION 1. STATEMENT OF FACTS.
1. On February 14, 1994, the City Council of the City of Newport Beach (“City”) adopted Ordinance No. 94-8 approving Restated Development Agreement No. 5 (“Agreement”) between the City and Hoag Memorial Hospital Presbyterian (“Hoag”). Ordinance No. 94-
8 went into effect on March 16, 1994. The Agreement was executed and recorded, as
document number 94-0207276, on March 23, 1994. The term of the Agreement was twenty-five (25) years. 2. On May 13, 2008, the City Council adopted Ordinance No. 2008-10 approving an
amendment to the Development Agreement (“Amendment”) that went into effect on
June 12, 2008. The Amendment was executed and recorded, as document number 2008000289321, on June 17, 2008. 3. On March 12, 2019, the City Council adopted Ordinance No. 2019-6 approving a second
amendment to the Agreement (“Second Amendment”) that went into effect on April 11,
2019. The Second Amendment was executed and recorded, as document number 2019000188999, on June 3, 2019. The Second Amendment to the Agreement extended the Term of the Agreement for an additional six (6) months.
4. On July 23, 2019, the City Council adopted Ordinance No. 2019-12 approving a third
amendment to the Agreement (“Third Amendment”) that went into effect on August 22, 2019. The Third Amendment was executed and recorded, as document number 2019000318392, on August 27, 2019. The Third Amendment extended the Term of the Agreement for an additional ten (10) years in exchange for certain community public
benefits provided by Hoag. The existing development regulations and required
mitigation measures as provided in the Agreement and subsequent amendments remained unchanged by the Third Amendment. 5. On August 25, 2020, the City Council adopted Ordinance No. 2020-18 approving a
fourth amendment to the Agreement (“Fourth Amendment”) that went into effect on
September 24, 2020. The Fourth Amendment was executed and recorded, as document number 2019000188999, on September 10, 2020. The Fourth Amendment extended the Term of the Agreement for an additional one (1) year to September 15, 2030, in light of COVID-19-related impacts that have constrained their ability to plan for the future
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development of the hospital campus consistent with the amended Agreement. The existing development regulations and required mitigation measures as provided in the
Agreement and subsequent amendments remained unchanged by the Fourth
Amendment. 6. Hoag has requested a fifth amendment to extend the Term of the Agreement an additional ten (10) years in exchange for certain community public benefits (“Fifth
Amendment”). The Fifth Amendment would include a new “milestone” requirement for
Hoag to submit a progress report to the City by September 1, 2030, regarding the project’s construction and timeline. The existing development regulations and required mitigation measures as provided in the Agreement and subsequent amendments remain unchanged by this Fifth Amendment.
7. Section 15.45.040 (Development Agreements) of the Newport Beach Municipal Code (“NBMC”) requires that development agreements include the term, permitted uses, density and intensity of development, maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes. The Fifth
Amendment meets the requirements of Section 15.45.040 (Development Agreements)
of the NBMC. The Agreement, as amended, includes the permitted uses, density and intensity of development, maximum height and size of the proposed buildings and provisions for reservation or dedication of land for public purposes. None of those provisions are changed by this Fifth Amendment. This Fifth Amendment exclusively
requests a ten-year (10) extension of the Term of the Agreement, as amended.
8. The Planning Commission held a public hearing on September 9, 2021, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California, at which time the Planning Commission considered the Fifth Amendment. A notice of time,
place, and purpose of the hearing was given in accordance with California Government
Code Section 54950 et seq. (“Ralph M. Brown Act”), California Government Code Section 65867 and Section 15.45.050 (Public Hearing-Notice) of the NBMC. Evidence, both written and oral, was presented to and considered by the Planning Commission at the hearing.
SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. In accordance with the California Environmental Quality Act (“CEQA”) set forth in the California Public Resources Code Section 21000, et. seq. and its implementing State regulations set forth
in the California Code of Regulations, Title 14, Division 6, Chapter 3 (“CEQA Guidelines”):
1. On May 11, 1992, the Newport Beach City Council certified Final Environmental Impact Report (“FEIR”) and Supplemental Environmental Report (“SEIR”) No. 142 (SCH No.
1992101159) that addressed the potential environmental effects associated with the Hoag
Hospital Master Plan development program (“Project”).
2. On April 16, 2008, the City Council certified a Supplemental FEIR (SCH No. 1991071003) (“FEIR”) in accordance with Public Resources Code Section 21000, et seq. and the State CEQA Guidelines to analyze the potential impacts of the proposed changes to the Hoag
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Hospital Master Plan development program pursuant to Resolution No. 2008-27. The FEIR and SEIR are incorporated herein by this reference.
3. All significant environmental concerns for the Project are addressed in previously certified FEIR and SEIR No. 142. The Fifth Amendment does not change the Project but rather only extends the Term of the Agreement by ten (10) years. The Fifth Amendment does not amend any development standards, development requirements, or required mitigation
measures identified in FEIR No. 142 and the SEIR.
The Planning Commission finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, Project opponents often seek an award of attorneys' fees in such challenges. As Project applicants are the primary
beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of
defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger. SECTION 3. FINDINGS.
1. The Planning Commission finds the Fifth Amendment is consistent with the City of Newport Beach General Plan Policy LU 6.1 and Strategy LU 6.1.5 by supporting Hoag in its mission to provide adequate facilities to meet the needs of area residents and by working with Hoag to ensure that future development plans consider its relationship to and assure
compatibility with adjoining residential neighborhoods and mitigate impacts on local and
regional transportation systems. The Agreement and subsequent amendments provide appropriate development assurances to Hoag to plan for the future while also providing appropriate safeguards and benefits for the community. The amended Agreement’s new “milestone” requires Hoag to submit a progress report to the City by September 1, 2030,
regarding the project’s construction and timeline. Extending the term of the Agreement, as
amended, by ten (10) years furthers the General Plan Policy LU 6.1 and Strategy LU 6.1.5 priorities by allowing Hoag additional time to properly plan development. 2. The City Council previously found the Agreement and subsequent amendments consistent
with Section 15.45.040 (Contents) of the NBMC as it included all the necessary
components including the term, permitted uses, density and intensity of development, maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes when it adopted Ordinance No. 2008-10 in 2008. Except for the Term extension and progress report requirement, all the other necessary
components articulated above, remain unchanged by this Fifth Amendment.
3. The Planning Commission finds the Fifth Amendment is consistent with provisions of California Government Code Sections 65864 to 65869.5 and Chapter 15.45 (Development Agreements) of the NBMC that authorize binding agreements that: (i) encourage
investment in, and commitment to, comprehensive planning and public facilities financing;
(ii) strengthen the public planning process and encourage private implementation of the local general plan; (iii) provide certainty in the approval of projects in order to avoid waste of time and resources; and (iv) reduce the economic costs of development by providing
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assurance to the property owners that they may proceed with projects consistent with existing policies, rules, and regulations.
a. The Fifth Amendment to the Development Agreement specifies a term of ten (10) additional years, consistent with the requirement of NBMC Chapter 15.45 to specify a duration of the agreement.
b. Section 5 of the Agreement requires annual review of Hoag' s good faith substantial
compliance with the Agreement pursuant to California Government Code Sections 65864-65869.5 and NBMC Section 15.45.080 (Periodic Review). c. On or before September 1, 2030, Hoag agrees to submit a progress report on final
completion of the Project for review and approval by the City Council. The progress
report shall include, but not be limited to, schedule and phasing for submittal of all plans and completion of construction of the Project along with all proposed uses on the Property. In the event the City Council finds the progress report does not adequately demonstrate the Project will be completed by September 15, 2040, the City may
exercise its rights under Section 9 (Default, Remedies and Termination) of the
Agreement. d. The City and Hoag acknowledge and agree that this Fifth Amendment and the Amended Agreement confer private benefits on Hoag that should be balanced by
commensurate public benefits to the community of Newport Beach. Based thereon,
Hoag agrees to pay a total of Six Million Dollars ($6,000,000.00) in equal annual installments of Three Hundred Thousand Dollars ($300,000.00) to the City to provide services to person(s) experiencing homelessness at the City’s discretion. Hoag has already paid Six Hundred Thousand Dollars ($600,000.00) of the Six Million Dollars
($6,000,000.00) owed to the City. The first annual installment for the remaining Five
Million Four Hundred Thousand Dollars ($5,400,000.00) owed is due and payable by Hoag to the City within thirty (30) calendar days of the Effective Date of this Fifth Amendment. Thereafter, subsequent installments of Three Hundred Thousand Dollars ($300,000.00) shall be paid by Hoag to the City on the anniversary of the Effective Date
of this Fifth Amendment.
e. The Agreement specifies permitted uses of the property, the density and intensity of use and the maximum height and size of proposed buildings through the Hoag Memorial Hospital Presbyterian Planned Community Development Criteria and District
Regulations (“PC Text”).
f. The Agreement requires that Hoag comply with Existing General Regulations and Future General Regulations that do not impair Hoag' s ability to develop the property in accordance with the density, intensity, height and location of development specified in
PC Text consistent with NBMC § 15.45.040 (Contents).
SECTION 4. DECISION.
NOW, THEREFORE, BE IT RESOLVED:
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The Planning Commission of the City of Newport Beach, California hereby recommends to the
City Council:
1. All significant environmental concerns for the Project have been addressed in the Final
Environmental Impact Report ("FEIR") and Supplemental Environmental Report ("SEIR")
No. 142 (SCH No. 1992101159) and no new or additional impacts will result from the Fifth
Amendment. The Fifth Amendment does not change the Project but rather only extends
the term of the Agreement by ten (10) years in exchange for certain community public
benefits. The Fifth Amendment does not amend any development standards, development
requirements, or required mitigation measures identified in FEIR No . 142 and the SEIR.
2. Adopt the Fifth Amendment to Restated Development Agreement No. 5 between the City
of Newport Beach and Hoag Memorial Hospital Presbyterian to extend the term of the
amended Agreement by ten (10) years . Except as modified by this Fifth Amendment, the
Planning Commission recommends the amended Agreement remain in full force and
effect.
PASSED, APPROVED, AND ADOPTED THIS 9th DAY OF SEPTEMBER, 2021.
AYES: Ellmore, Kleiman, Koetting, Lowrey, Rosene, and Weigand
NOES:
ABSTAIN :
ABSENT:
Curtis Ellmore, Secretary