Loading...
HomeMy WebLinkAbout5.0_The Ritz-Carlton Residences_PA2021-296 CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT May 12, 2022 Agenda Item No. 5 SUBJECT: The Ritz-Carlton Residences (PA2021-296)  Major Site Development Review No. SD2021-005  Modification Permit No. MD2022-001  Conditional Use Permit No. UP2021-053  Coastal Development Permit No. CD2021-077  Vesting Tentative Tract Map No. NT2021-003 SITE LOCATION: 900 Newport Center Drive (VEA Newport Beach, A Marriott Resort and Spa) APPLICANT & OWNER: Newport Center Hotel, LLC PLANNER: Jim Campbell, Deputy Community Development Director 949-644-3210 or jcampbell@newportbeachca.gov PROJECT SUMMARY The Ritz-Carlton Residences involves the conversion of up to 30 percent of the existing 532-room hotel at VEA Newport Beach, A Marriott Resort and Spa (formerly known as the Newport Beach Marriott) into hotel-branded residences pursuant to City Council Policy K-4 (Reducing the Barriers to the Creation of Housing) and Director’s Determination No. DD2021-001 (“Project”). The Project is conditioned to require the payment of a public benefit fee of $100,000 that will be assessed upon each hotel-branded residence. A portion of this public benefit fee is comprised of an in-lieu affordable housing fee, which will be deposited into a City controlled account and used at the City’s discretion for the future acquisition and construction of affordable housing units. The Project is located at 900 Newport Center Drive, which is currently occupied by VEA Newport Beach, A Marriott Resort and Spa. RECOMMENDATION 1) Conduct a public hearing; 2) Find that potential environmental impacts have been previously mitigated through the implementation of the policies of the General Plan as evaluated in Program Environmental Impact Report for the 2006 General Plan Update (SCH No. 2006011119) (“PEIR”); therefore, in accordance with Section 15164 of the California 1 INTENTIONALLY BLANK PAGE2 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 2 Environmental Quality Act (“CEQA”) Guidelines, an addendum to the previously certified PEIR is the appropriate environmental documentation for the project; and 3) Approve The Ritz-Carlton Residences Project (PA2021-296) finding that the Project is eligible for accessory residential uses pursuant to Director’s Determination No. DD2021-001 and City Council Policy K-4, and adopt Resolution No. PC2022-011 (Attachment No. PC 1) approving Environmental Impact Report Addendum No. 6 (ER2022-002), Major Site Development Review No. SD2021-005, Modification Permit No. MD2022-001, Conditional Use Permit No. UP2021-053, Coastal Development Permit No. CD2021-077, and Vesting Tentative Tract Map No. NT2021-003 (PA2021-296). 3 INTENTIONALLY BLANK PAGE4 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 3 VICINITY MAP GENERAL PLAN ZONING LOCATION GENERAL PLAN ZONING CURRENT USE ON-SITE Visitor Serving Commercial (CV) Commercial Visitor Serving (CV) VEA Newport Beach, A Marriott Resort and Spa NORTH Multiple Residential (RM) PC54 Santa Barbara Residential The Meridian Condominium Community SOUTH Multiple Residential (RM) Multiple Residential (RM) Granville Condominium Community EAST Regional Commercial (CR) PC56 North Newport Center Fashion Island Regional Commercial Retail Shopping Center WEST Parks and Recreation (PR) PC47 Newport Beach Country Club The Newport Beach Country Club 5 INTENTIONALLY BLANK PAGE6 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 4 INTRODUCTION Project Setting The subject property is 2.775 acres located at 900 Newport Center Drive, in the 9.53-acre VEA Newport Beach, A Marriott Resort and Spa, immediately southwest of Fashion Island, within the Newport Center-Fashion Island subarea. The development footprint of the proposed building and the subterranean parking garage are approximately 25,023 square feet and 44,860 square feet, respectively. The site is located in a largely mixed-use area of the City, surrounded by MacArthur Boulevard to the east, San Joaquin Road to the north, Jamboree Road to the west, and Pacific Coast Highway to the south. The Project site can be accessed from Newport Center Drive and Santa Barbara Drive. Fashion Island is located to the east and the Newport Beach Country Club golf course to the west. The VEA Newport Beach hotel is located to the north and the Granville community to the south. Project Description The applicant, Newport Center Hotel, LLC, proposes to convert up to 30 percent of the existing 532 hotel rooms into hotel branded residences pursuant to City Council Policy K- 4 and Director’s Determination No. DD2021-001. The existing southernmost VEA Newport Beach building, Harbor Landing, would be demolished to accommodate construction of the proposed residential building. The project would result in the conversion of up to 159 hotel rooms (i.e., conversion of 133 hotel rooms from Harbor Landing and conversion of 26 hotel rooms of the 153 hotel rooms from Harbor Point), and the construction of related amenities and parking facilities to support the hotel branded residences. The application conforms with all zoning and land use requirements and consists of the following components: Major Site Development Review No. SD2021-005: A site development review in accordance with Newport Beach Municipal Code (“NBMC”) Section 20.52.080 to allow for the construction of the Project; Modification Permit No. MD2022-001: A modification permit in accordance with NBMC Section 20.52.050 to allow for the tandem parking spaces. Conditional Use Permit No. UP2021-053: A conditional use permit in accordance with NBMC Section 20.52.020 consistent with the requirement of Director's Determination No. DD2021- 001. Coastal Development Permit No. CD2021-077: A coastal development permit in accordance with NBMC Section 21.52.015 authorizing the construction of the project within the Coastal Zone. 7 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 5 Vesting Tentative Tract Map No. NT2021-003: A vesting tentative tract map for condominium purposes in accordance with NBMC Section 19.20.040. Addendum to the 2006 General Plan Update Program Environmental Impact Report: Pursuant to CEQA, the addendum addresses reasonably foreseeable environmental impacts resulting from the proposed development. Project Components: Accessory Hotel Branded Residences The proposed new 22-story building would include up to 159 hotel branded residences and the total number of hotel rooms at the VEA Newport Beach would be reduced from 532 currently existing to 373. The new building is proposed to be up to approximately 279 feet above ground level to the penthouse, with additional accessory improvements and rooftop appurtenances such as elevator overruns and screened mechanical equipment. The rooftop improvements would project up to 295 feet in height, consistent with the existing high-rise height limitation zone that allows a building height of 300 feet. The new building would include the building lobby area on level 1, which would also provide space for administrative offices, a lounge, amenities, restrooms, and back of house facilities. Residential units would start on level 2 with a range of sizes. Levels 2 through 22 will provide residential units, with the units getting larger on the upper floors. Levels 16 and 17 will include indoor and outdoor common recreational spaces, in additional to residential units. The building rooftop would include accessory improvements, and house screened rooftop appurtenances. Eight elevators and two stairwells will serve the building. The design for the residential building draws inspiration from the California Post Modernism architectural style which is embedded in the original vision of Fashion Island as set forth by Master Architect William Pereira. William Pereira’s nautical inspired building forms, most prevalent in Pereira’s work at the Pacific Life Building at Block 700 in Newport Center, combined with the vision from the original vessels of The Ritz-Carlton Yacht Collection influenced the design of the Residences. Authentic Yacht inspired detailing is integrated into the architecture through the abundant use of natural materials and the emphasis on indoor/outdoor spaces. The building architecture respects the design pillars rooted in the formation of Fashion Island, while showcasing a modern interpretation that exemplifies the qualities of The Ritz-Carlton brand. The residential building would be constructed using Glass Fiber Reinforced Concrete (GFRC) natural stone, metal, wood, steel, and glass glazing accents. Operations for the hotel branded residences will be managed by professionally trained Ritz-Carlton staff. While dedication of staff for the hotel and the hotel branded residences 8 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 6 will be separate, the hotel and residences will remain under the same Marriott umbrella under common leadership of the General Manager. Project Amenities The existing hotel amenities include a lounge, a fitness center, a full-service spa, pools, event lawns, bike rentals, a conference center, ballrooms, and restaurants that will remain available for VEA hotel guests and resident use. The Project proposes a new resort style pool and spa with lounge seating, a gym and fitness facility, locker rooms, spa treatment rooms, meeting rooms, concierge services, on-site private storage, an owners room featuring billiards and a library, and other uses including food service amenities for exclusive use of the residents. In addition to the pool and spa area, outdoor amenities would include a private garden, a dog relief area, and walking paths through the property connecting to Newport Center Drive and the VEA property. Common indoor amenities totaling approximately 32,000 square feet will be located at the ground floor, basement level (B2), and on floors 16 and 17. Common outdoor amenities totaling approximately 9,500 square feet will be located on the ground level and on floor 16. In addition to outdoor amenity areas, there will be approximately 65,000 square feet of hardscape and landscape area. Each unit will contain private open space via a balcony. There is approximately 143,000 square feet of private open space, which averages 899 square feet per unit. Parking and Vehicular Access The main arrival area includes a new 44-foot wide entry driveway with two entry and exit lanes. The entry will have a guard house and privacy rolling type gates. All guests and visitors will be required to use the left lane leading to the guard house for authorization to enter the site. A turnaround will be located directly behind the guardhouse in advance of the entry gate. Residents will use the right lane to bypass the guard house and enter the site through use of a gate transponder. A new 5-level, 408-space subterranean parking structure would be constructed beneath the new building under the porte cochere and entry drive area. Each subterranean level (1 through 5) would be constructed with ADA accessible, standard, and tandem parking spaces. The new residential building and the parking structure would be accessed via Newport Center Drive where residents and guests would be directed to valet services located at the porte cochere. All parking would be valet-served. In addition to parking, level 1 would provide facilities such as a mailroom, employee breakroom, trash enclosure, storage, security office, and kitchen. The loading dock would also be located on subterranean level 1 and accessed by the service driveway from the proposed fire access driveway on the southern boundary of the property. Subterranean level 2 would house amenities for the building as well as electrical, engineering, utility, and maintenance facilities. Subterranean levels 3, 4 and 5 would have storage facilities and parking. 9 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 7 A new driveway is proposed along the southwesterly boundary of the property for use as a service drive. The service road will have an access control gate, regulated by on-site staff. The service drive will be 24 feet in width and provide access for all moving vans, delivery vehicles (e.g., Amazon, FedEx, etc.), scheduled service deliveries and refuse collection, and for emergency vehicle access. The service drive will provide direct access to a service deck located below the building on the first basement level, to allow for loading and unloading of large service, delivery and moving vans. Maintenance vehicle parking spaces are provided adjacent to the service drive, out of the path of travel. Hotel Parking Structure The Project includes a new parking structure including four levels below ground and 2 levels above ground to serve the existing hotel. The new parking structure will replace the existing parking structure in substantially the same location and provide 400 parking spaces in a reduced footprint. A total of 808 parking spaces (408 for hotel-branded residence and 400 for hotel use) are proposed for the Project in excess of the Zoning Code (Title 20) and Coastal Implementation Plan (Title 21parking requirements. Landscape and Hardscape Improvements The proposed Project site would include extensive landscape and hardscape areas with pedestrian circulation. The proposed conceptual landscape plan would include a hierarchy of plant materials including trees, vines, shrubs, and turf throughout the Project site and in open space areas. The landscape plan meets drought tolerant and non- invasive species requirements of the Municipal Code and Coastal Implementation Plan. Along Newport Center Drive, at the frontage of the Project site, several existing palm trees in the right-of-way (ROW) may be temporarily removed during construction and or relocated as a result on construction in compliance with the City’s Retention, Removal and Maintenance of City Trees policy (City Council Policy G-1. Evergreen specimen trees (Pinus species or similar) would be located towards the outer portions of the Project site, near the boundary, while canopy shade trees would be located around the motorcourt and event lawn. Smaller accent trees (such as Olea europea or similar) would be located around the pool area. A layered landscape concept along the Project site boundaries of the Project site would provide a buffer between the Project site and the existing adjacent residential development to the west, and the hotel uses to the north, and the public ROW to the west. Landscape screening is also proposed for the parking structure, which includes developing mature vines to cover the stucco-finished areas. Marriott maintenance and groundskeeping staff would service both the hotel and the hotel branded residences. Additionally, a new 8,000-square-foot event lawn would be located along the southern boundary of the property near the new residential building and hotel pool area. The new 10 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 8 event lawn would be used for outdoor events by the VEA hotel with the added function as a terminus for the fire access road. Affordable Housing In-Lieu Fees City Council Policy K-4 requires property owners “converting permitted hotel…rooms into residential units to mitigate impacts as a result of the conversion…through a contribution of in-lieu fees.” This Project has been conditioned to include the payment of an in-lieu affordable housing fee set at $65,000 per hotel branded residence (which is included in the overall $100,000 per door public benefit fee for this Project discussed later in this report). The fee will be placed into an affordable housing fund maintained by the City and will be used for the acquisition and construction of future affordable housing units. DISCUSSION General Plan, Coastal Land Use Plan, and Zoning Code Consistency The proposed Project site has a General Plan designation of Visitor Serving Commercial (CV); a Coastal Land Use Plan designation of Visitor Serving Commercial (CV-B); and a Zoning designation of Commercial Visitor-Serving (CV). General Plan Land Use Element anomaly #43 allows 611 hotel rooms at the subject property. In 2012, the City approved a conversion of 79 hotel rooms to residential units leaving 532 hotel rooms as the maximum number of hotel rooms at the project site. There will be no net change with the proposed conversion of up to 30 percent of the existing approved 532 hotel rooms into residential units. All CV designations allow for overnight accommodations and accessory land uses. The proposed hotel branded residences are an allowable accessory land use within City Council Policy K-4 and Director’s Determination No. DD2021-001 and VEA Newport Beach was one of the resort hotel properties specifically contemplated for accessory residential uses in that Director’s Determination. As such, the proposed Project is consistent with the applicable CV land use designations in the General Plan, Coastal Land Use Plan, and Zoning Code. City Council Policy K-4 and Director’s Determination No. DD2021-001 On March 9, 2021, the City Council adopted Resolution No. 2021-18 Reducing Barriers to the Creation of Housing (City Council Policy K-4). City Council Policy K-4 directed City staff to develop, modify as necessary, and aggressively implement various strategies designed to accelerate housing production consistent with the policy, including encouraging the development of mixed-use hotels. The goals of City Council Policy K-4 include interpreting ambiguities in the City’s General Plan, Coastal Land Use Plan, Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the NBMC to allow hotels and motels, located outside the Coastal Commission Appeal Jurisdiction, to convert up to 30 percent of their approved hotel rooms into residential units on a one-for-one basis. Such interpretation allows residential units to be deemed an accessory use to the principal use of a hotel and find that such residential uses are 11 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 9 consistent with the hotel and motel’s underlying General Plan, Zoning Code, and Local Coastal Plan Program land use and zoning designations. On April 30, 2021, the Community Development Director issued Director’s Determination No. DD2021-001. The Director’s Determination was considered on appeal by the Planning Commission on July 8, 2021, and was considered by the City Council on appeal on August 24, 2021. Both the Planning Commission and the City Council denied the appeal and upheld the Director’s Determination. The time to challenge the Director’s Determination has lapsed, the statute of limitations has run, and the Director’s Determination is now final. Director’s Determination No. DD2021-001 implemented City Council Policy K-4 and found that residential uses are allowable as an accessory use within resort hotels under certain parameters including the following: Considerations for Accessory Residential Use – City Requirements Proposed Project Applicable only to resort hotels, a self-contained destination that provides for most travel accommodation needs in one location, including but not limited to restaurants, bars, shopping, and recreational facilities. VEA Newport Beach, A Marriott Resort and Spa is a self-contained destination resort hotel including restaurants, bars, shopping, and recreational facilities. Must be located outside the appeal area identified in California Public Resources Code Section 30603(a) as generally depicted on the Post-LCP Certification Permit and Appeal Jurisdiction Map. VEA Newport Beach, A Marriott Resort and Spa is located outside of the appeal area identified in California Public Resources Code Section 30603(a). Approved hotel rooms may be converted to residential units, but only on a one-for-one basis. Up to 159 existing, approved hotel rooms are proposed for conversion to accessory hotel residential branded units on one-to-one basis. The residential use shall at all times be accessory to the hotel use, and the residential units shall comprise no more than 30 percent of the approved hotel rooms. Residential uses will be accessory to hotel and will be comprised of no more than 30 percent of the approved hotel rooms (532 existing hotel rooms: 373 remaining hotel rooms + 159 hotel rooms converted to residential units = 532 approved rooms.) The residential units may be located within a repurposed hotel or in a new residential structure. A new residential building is proposed. A property owner that desires to have an accessory residential use at their hotel shall process a conditional use permit and coastal development permit (if applicable). In reviewing said permits, the review A conditional use permit and coastal development permit application are included for this Project, in addition to a site development review permit. The hotel Hotels require 1 parking space per room 12 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 10 authority shall ensure adequate parking is provided to accommodate the residential units through surplus parking, shared parking, or the adoption of a parking management plan. and the project will provide over 373 parking spaces. New accessory hotel branded residence parking will be provided at 2.5 parking spaces per residential unit, resulting in an overall increase in parking. Potential impacts to public access, affordable housing, and the loss of transient occupancy tax must be mitigated by entering into a Development Agreement with the City or by some other means deemed appropriate. The Project will not result in impacts to public access because there is no public access on, or immediately surrounding the Project site. This Project is conditioned to require the payment of an affordable housing in-lieu fee, and as explained in the attached TOT Analysis, the loss of any TOT is more than offset by the gains in property tax attributable to the new hotel branded residences when combined with the TOT generated by the 373 remaining hotel rooms. The proposed application for the conversion of hotel rooms to hotel branded residences as an accessory use at the existing VEA Newport Beach, a Marriott Report and Spa is consistent with and implements City Council Policy K-4 and Director’s Determination No. DD2021-001. The City has identified the VEA Resort property as a qualifying resort hotel offering destination accommodations including restaurant and recreation facilities. The proposed conversion of 159 hotel rooms to hotel branded residences is a 30 percent conversion of the approved 532-room resort hotel and the site is located outside of the appeal area identified in California Public resources Code Section 30603(a). The Project has been conditioned to require the payment of $100,000 per unit fee as the means determined appropriate by the Community Development Director to address potential impacts to public services, public safety, public access, and affordable housing. The $100,000 per unit fee will be utilized in the following manner: $22,300 per unit for general public benefit to be used at City Council’s discretion; $2,000 per unit for public safety; $10,700 per unit for future improvements to public coastal access; and $65,000 per unit for a future senior affordable housing project. Fiscal impact studies show that residential units generally require more public services than commercial uses hence the need for a general public benefit contribution. Residences also generate an increased volume of emergency medical calls for services. The fee will partially fund new fire life safety equipment addressing the needs for high rise structures. The City has conducted a study for future inclusionary housing in-lieu fees. No in-lieu fee has been adopted at this time but the proposed fee per unit for senior affordable housing project is commensurate to the results of the study. The funds used for general public benefit may be used to support recreational or public safety facilities. The reduction of high-cost hotel rooms, while not an impact to lower cost accommodations, reduces general access to the 13 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 11 coastal zone. The fee will support improvements to public access within the coastal zone to offset the reduction of hotel rooms. The improvements have not been identified at this time. Lastly, the housing crisis has led to an unprecedented housing need as expressed by the City’s Regional Housing Need Assessment (RHNA) allocation of 4,845 units with approximately 50 percent for low and very low-income households. The funds allocated for affordable housing supports the City’s housing goals as expressed in the 2022 Housing Element update. Each of these fees address the factors identified in Director’s Determination No. DD2021-001 ensuring a conversion project does not impact municipal resources, public access and contributes toward the City’s affordable housing needs. Major Site Development Review Pursuant to NBMC Section 20.52.080 (Site Development Review), residential developments of five or more units that are processed in conjunction with a tentative tract map require a major site development review by the Planning Commission. The required findings for approval of a site development review must identify that: the project is allowed within the subject Zoning District, that the project will not be detrimental to the harmonious and orderly growth of the City, and that the project is in compliance with applicable criteria including compliance with the General Plan, the Zoning Code, and any applicable specific plan, the efficient arrangement of structures on-site, the compatibility in terms of bulk, scale, and aesthetic treatment, the safety of pedestrian and vehicular access, the adequacy of landscaping and open space area, and the projection of significant public views. The draft resolution provided in Attachment No. PC 1 provides a detailed discussion of the facts in support of findings for the Major Site Development Review. A summary of the facts has been provided below. • The project is in compliance with the General Plan and Zoning Code. The proposed hotel branded residences are an allowable accessory land use within City Council Policy K-4 and Director’s Determination No. DD2021-001. As such, the proposed Project is consistent with the applicable CV zoning district. The Project will convert up to 30 percent of existing approved hotel rooms to accessory residential dwellings and will not result in an increase in allowable intensity or additional units beyond the General Plan development limit. • The building’s material palate consists of Glass Fiber Reinforced Concrete (GFRC) and glass for the building façade along with metal railings, steel, wood and natural stone accents will be compatible with the surrounding development in Newport Center. The design will complement, enhance, and be compatible with the adjacent hotel, retail and office properties. Massing offsets, curved and undulating design and high-quality design accents on the elevation are integrated to enhance the expression of a contemporary architectural style. The site design includes substantial setbacks and landscaping, and will create visual interest in a high-quality design, which is consistent with other high-rise buildings in Newport Center. 14 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 12 • The Project will provide adequate parking, will provide safe pedestrian access via an accessible path of travel from the sidewalk along Newport Center Drive, to the entrance of the lobby. Vehicular access will be provided via a primary access drive to the porte cochere area for residents and guests. A separate entry drive will be provided for all service-related vehicles including deliveries, moving vans, emergency vehicles and refuse collection. The parking structure for the existing hotel will be reconstructed in a similar location but with a consolidated footprint, in order to enhance use of the property and improve vehicular circulation. The City Traffic Engineer has reviewed the draft plans and determined that the proposed project provides adequate sight distance at each driveway, access through parking structures and separate service drive, and would not impact vehicular traffic along Newport Center Drive. In summary, Staff believes facts support each of the required findings, with the adoption of the recommended conditions of approval. Draft findings are provided in the resolution recommending Project approval (Attachment No. PC 1). The Project provides housing in response to the City Council Policy K-4 and Director’s Determination No. DD2021-001 will provide hotel branded residences as an accessory use to the existing VEA Newport Beach, A Marriott Resort and Spa. The Project provides harmonious site design with ample landscaping, setbacks, parking, includes safe vehicle access related to service and emergency vehicles, and provides for a net reduction in vehicular trips compared to the existing hotel. Modification Permit Consistent with NBMC Code Section 20.52.050(E), a Modification Permit may be approved or conditionally approved if, on the basis of the application, materials, plans, and testimony (orally and/or in writing) submitted, if all of the following findings first can be made. The required findings include neighborhood compatibility, granting of the modification permit is necessary because of the unique physical characteristics of the property or of the use, practical difficulties associated with the property and the strict application of the Zoning Code, there are no alternatives that could provide similar benefits with less detriment to surrounding owners and occupants; and is not detrimental to public health, safety or welfare of owners and occupants. The draft resolution provided in Attachment No. PC 1 provides a detailed discussion of the facts in support of findings for the Modification Permit. A summary of the facts has been provided below. • The modification permit is required to allow for tandem parking spaces. The Project is required to provide 398 parking spaces, and 408 parking spaces are proposed. Tandem spaces reduce the footprint and depth of the subterranean garage, making it a more efficient use of land and it reduces excavation and grading. The Project will provide all required parking on-site and will be managed by 100 percent 15 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 13 valet operations, which is compatible with the existing development in the neighborhood. • The tandem parking spaces will be consistent with the characteristics of the hotel branded residential use, where valet parking will be utilized to access tandem parking spaces. • The Project will provide parking in excess of the residential parking requirements to ensure that all residents, guests and employees have adequate access to parking. The request meets the intent of the Code by providing the required number of parking spaces on-site. • The inclusion of tandem parking stalls will not be a detriment to the surrounding neighborhood or general public because the number of parking spaces will exceed the code requirement. Valet operations will manage all resident and guest parking, thereby eliminating any impact to the general public or surrounding owners, occupants and the neighborhood. The subterranean parking structure takes up the majority of the property to the east of the building and allows for the above grade surface to contain substantial setbacks, open space, and landscape treatments. Conditional Use Permit Pursuant to NBMC Section 20.52.020(E) (Findings and Decision), the City must make findings to approve a conditional use permit including that the use is consistent with the General Plan, allowed within the applicable zoning district and complies with the Zoning Code and Municipal Code, that the design, location, size and operating characteristics of the use are compatible with allowed uses in the vicinity, the site physically suitable in terms of design, location, shape, operating characteristics, and the provision of public and emergency access, public services and utilities, and the operation would not be detrimental to the harmonious growth of the City of otherwise constitute a hazard to public health and safety. The draft resolution provided in Attachment No. PC 1 provides a detailed discussion of the facts in support of findings for the Conditional Use Permit. A summary of the facts has been provided below. • The proposal to convert up to 159-hotel branded residences is consistent with General Plan designation of Visitor Serving Commercial (CV); a Coastal Land Use Plan designation of Visitor Serving Commercial (CV-B); and a Zoning designation of Commercial Visitor-Serving (CV), which allows for the Project site to provide overnight accommodations and accessory land uses. City Council Policy K-4 and Directors Determination No. DD2021-001 permit residential dwellings as an accessory use to the primary use of the site as a resort hotel. The Director’s Determination contains regulations and restrictions that are implemented through 16 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 14 this permit to ensure the allowance of residential accessory units within a hotel property does not change the primary land use, which remains resort hotel. • The design, location, size and operating characteristics of the Project are compatible with allowed uses in the vicinity, including existing residential, hotel, retail and office uses. The site will be located within the City’s High-Rise Height Limitation Zone and part of an existing resort hotel property. • The Project will provide improved emergency access to the property including via a new 24’ wide service drive and fire lane located along the southwesterly property line. • A trip generation analysis was prepared for the Ritz-Carlton Residences project. The trip calculation is based on the conversion of 532 hotel rooms to a project consisting of 373 hotel rooms and 159 high rise housing units. Using the trip generation rates from the Institute of Transportation Engineers (ITE), the existing 532 hotel rooms generate 4,251 daily trips. The project with 373 hotel rooms and 159 high rise units generates 3,702 daily trips. The project will generate 30 less AM peak hour trips, 43 less PM peak hour trips, and 549 fewer daily trips. The Traffic Phasing Ordinance states that any project that generates no more than three hundred (300) additional daily trips is exempt from preparing a TPO traffic study. • Parking management plans were submitted and reviewed by the Public Works Department. The valet operation procedures, employee parking, and drop-off in the porte cocheres were outlined in the plans and the implementation of the management plans promotes efficient operations. In summary, Staff believes facts support each of the required findings, with the adoption of the recommended conditions of approval, to approve the Conditional Use Permit. Draft findings are provided in the resolution recommending Project approval. Coastal Development Permit The subject property is located within the Coastal Zone. Therefore, the proposed Project requires a coastal development permit. Per NBMC Section 21.52.015(F), the required findings to approve a coastal development permit (“CDP”) are that the Project conforms to all applicable sections of the certified Local Coastal Program, and that the Project conforms with the public access and public recreation policies of Chapter 3 of the Coastal Act if the Project is located between the nearest public road and the sea or shoreline of any body of water located within the coastal zone. 17 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 15 The draft resolution provided in Attachment No. PC 1 provides a detailed discussion of the facts in support of each of the findings for the approval of the proposed CDP. A summary of the facts has been provided below: ● The hotel branded residences are consistent with the Coastal Land Use Plan designation of Visitor Serving Commercial (CV-B); and a Zoning designation of Commercial Visitor-Serving (CV), which allows for the Project site to provide overnight accommodations and accessory residential uses as part of a resort hotel land use. City Council Policy K-4 and Director’s Determination No. DD2021-001, which allows for accessory residential uses within resort hotels. The Project complies with the CV zoning district design standards including setback, height, parking and open space. The Project complies with the restrictions contained in Director’s Determination No. DD2021-001 including, but not limited to, the Project site is located outside of the Coastal Commission appeal jurisdiction, the Project will not result in more than 30 percent of the approved hotel rooms being converted to residential use, the residential use will remain accessory to the resort hotel, and adequate parking will be provided. ● The Project is not located between the nearest public road and the sea or shoreline of any body of water located within the coastal zone. The Project site is located approximately 3,300 feet from Newport Harbor. As such, it is not necessary to assess the consistency with the public access and public recreation policies of Chapter 3 of the Coastal Act. ● The existing hotel does not provide lower cost accommodations and therefore will not impact the availability of lower cost accommodations due to the conversion of existing hotel rooms as detailed in the Feasibility and Impact Analysis (Exhibit I of Attachment No. PC 1) completed for the project. The Feasibility and Impact Analysis further concluded that the project is consistent with Section 21.48.025 (Visitor Accommodations). Potential impacts from the reduction in market rate hotel room accommodations is mitigated through the payment a $10,700 per unit fee to the City to be used to improve public access. For the reasons noted above, staff believes the required findings for the CDP can be made. Vesting Tentative Tract Map The proposed Project includes a request to establish up to a 159-unit hotel branded residential condominium tract. NBMC Section 19.12.070 (Required Findings for Action on Tentative Maps) provides required findings for approval of a tentative tract map. These findings include: consistency with the General Plan and any applicable specific plan, that the site is physically suitable for development, that proposed improvements are not likely to cause substantial environmental damage to fish, wildlife, or their habitat, or cause serious health problems, that the project will not conflict with easements, a “land project,” 18 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 16 solar access and passive heating requirements, the City’s share of the regional housing need, or the discharge of waste into the sewer system, and finally, that the project will conform with the public access and recreation policies of the Coastal Act, if applicable. The draft resolution provided in Attachment No. PC 1 provides a detailed discussion of the facts in support of each of the findings for the approval of the proposed Vesting Tentative Tract Map. A summary of the facts has been provided below. • The Project site and surrounding land area is fully developed with an existing resort hotel and accessory support uses. The Project site and the surrounding area do not contain any sensitive biological resources. • The site is currently developed and is suitable for redevelopment. • The vesting tentative tract map will maintain the existing 15-foot utility easement along Newport Center Drive. The design of the development will not conflict with any easements acquired by the public at large for access through or use of property within the proposed development. • Public Works staff has reviewed the proposed vesting tentative tract map and believes it is consistent with the Newport Beach Subdivision Code (Title 19) and applicable requirements of the Subdivision Map Act. Public improvements, consisting of the reconstruction of disturbed curb, gutter, and sidewalks, two new driveways along Newport Center Drive. • The Project will contribute to the City’s share of regional housing need and will provide funds to the City related to affordable housing. • The site is located within the coastal zone, outside of the appeal jurisdiction. The subdivision conforms with the certified Local Coastal Program as detailed in the Findings for the Coastal Development Permit. For the reasons noted above, staff believes the required findings for the Vesting Tentative Tract Map can be made. Additionally, pursuant to NBMC Section 19.16.010(A) an approved tentative tract map expires 24 months after the date of its approval or conditional approval. Under NBMC Section 19.16.020(A), the subdivider shall have the right to request an extension of the map for up to 5 years. The subdivider has submitted an application for an extension of Vesting Tentative Tract Map No. NT2021-003 and has requested that the extension be granted after the Planning Commission adopts Resolution No. PC2022-011; thus, providing for an initial term of the vesting tentative tract map of 24 months, followed by extension of 5 years, for a total term of 7 years from the date of approval of Resolution No. PC2022-011. Environmental Review On July 25, 2006, the City Council adopted Resolution No. 2006-75, certifying the adequacy and completeness of the Environmental Impact Report (“EIR”) for the General 19 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 17 Plan 2006 Update (SCH No. 2006011119). The EIR was prepared in compliance with CEQA as set forth in 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”) and City Council Policy K-3. Additionally, in accordance with Section 15168(a) of the CEQA Guidelines, the City prepared the EIR as a Program Environmental Impact Report (“PEIR”). This PEIR analyzed the potential impacts of a citywide land use plan, and the goals and policies of 10 general plan elements. Pursuant to Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, when an EIR has been certified for a project, no subsequent EIR is required unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following: 1. Substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2. Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or 3. New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete, shows any of the following: a. The project will have one or more significant effects not discussed in the previous EIR; b. Significant effects previously examined will be substantially more severe than shown in the previous EIR; c. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or d. Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. The City contracted with an environmental consultant (Psomas) to prepare an Addendum to the PEIR for the proposed Project. The entire Addendum and its technical appendixes 20 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 18 are available online at the City’s website at: www.newportbeachca.gov/ceqa. The conclusion of the Addendum supports the finding under Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines that no additional environmental document is required by CEQA. On the basis of the entire environmental review record, the Project will not result in any new significant impacts that were not previously analyzed in the PEIR for the General Plan 2006 Update (SCH No. 2006011119). All potential impacts associated with this Project would either be the same or less than those described in the PEIR that have been appropriately mitigated. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in the PEIR, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, an addendum to the previously adopted PEIR is the appropriate environmental document for the Project. Summary In summary, staff believes the findings for Project approval can be made, with specific conditions of approval. The proposed Project site has a General Plan designation of Visitor Serving Commercial (CV); a Coastal Land Use Plan designation of Visitor Serving Commercial (CV-B); and a Zoning designation of Commercial Visitor-Serving (CV). All CV designations allow for overnight accommodations and accessory land uses. The proposed hotel branded residences are an allowable accessory land use. As such, the proposed Project is consistent with the applicable CV land use designations. The site development review will ensure the Project will be implemented consistent with the approved development standards. The applicant proposes to convert up to 30 percent of the hotel rooms into hotel branded residences on a one-to-one basis as allowed by City Council Policy K-4 and Director’s Determination No. DD2021-001. The proposed development with on-site recreation amenities and adequate provisions of parking will create a resort complex for the City’s visitors and residents. The payment of an in-lieu affordable housing fee will assist the City in its goal of acquiring or constructing affordable housing units. The lack of an impact to lower cost accommodations and the payment of an in-lieu fee to improve public access supports a finding of consistency with the City’s certified Local Coastal Program. Lastly, the prepared Addendum is the appropriate environmental document for the Project. The technical reports prepare for this Project have demonstrated that the proposed Project would not result in new or increased significant impacts to the studied areas, so no subsequent EIR is required. 21 The Ritz-Carlton Residences (PA2021-296) Planning Commission, May 12, 2022 Page 19 Public Notice Notice of this hearing 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 meeting, consistent with the provisions of the NBMC. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City’s website. Prepared and submitted by: ATTACHMENTS PC 1 Draft Resolution with Findings and Conditions PC 2 CEQA Addendum PC 3 Relevant Materials/Studies PC 4 Project Plans 22 Attachment No. PC 1 Draft Resolution with Findings and Conditions 23 INTENTIONALLY BLANK PAGE24 RESOLUTION NO. PC2022-011 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA ADOPTING ENVIRONMENTAL IMPACT REPORT ADDENDUM NO. 6 (ER2022-002), MAJOR SITE DEVELOPMENT REVIEW NO. SD2021-005, MODIFICATION PERMIT NO. 2022-001, CONDITIONAL USE PERMIT NO. UP2021-053, COASTAL DEVELOPMENT PERMIT NO. CD2021-077, AND VESTING TENTATIVE TRACT MAP NO. NT2021-003 AND MAKING FINDINGS OF CONSISTENCY WITH COUNCIL POLICY K-4 AND DIRECTOR’S DETERMINATION NO. DD2021-001 FOR THE RITZ-CARLTON RESIDENCES PROJECT LOCATED AT 900 NEWPORT CENTER DRIVE (PA2021-296) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Newport Center Hotel, LLC, (“Applicant”) with respect to the Vea Newport Beach, a Marriott Resort and Spa, property located at 900 Newport Center Drive, and legally described as Parcel 2 in the City of Newport Beach, County of Orange, State of California. As per Map 2004-225 filed in Book 361, Pages 1, 2, and 3 of Parcel Maps, in the Office of the Orange County Recorder, as modified by the Parcel Map Certificate of Correction recorded April 23, 2008, as instrument No. 2008000190230 of the official records (“Property”). 2. The Applicant proposes the conversion of up to 159 hotel units to residential units; construction of a new building to accommodate the residential units, as well as a spa, pool, gym/fitness center and other amenities; 408-space subterranean parking structure; and 6-level (4-levels below ground and 2-levels above ground) 400-parking space parking structure to replace the existing hotel parking structure in substantially the same location which require the following land use approvals (“Project”): • Major Site Development Review No. SD2021-005: A site development review in accordance with Newport Beach Municipal Code (“NBMC”) Section 20.52.080 to allow for the construction of the Project. • Modification Permit No. MD2022-001: A modification permit to allow for the tandem parking spaces in conjunction with a parking management plan. • Conditional Use Permit No. UP2021-053: A conditional use permit to allow residential use as an allowed use at a resort hotel in conjunction with a parking management program consistent with the requirement of Director's Determination No. DD2021-001 and NBMC Section 20.52.020 (Conditional Use Permits and Minor Use Permits). 25 Planning Commission Resolution No. PC2022-011 Page 2 of 72 • Coastal Development Permit No. CD2021-077: A coastal development permit in authorizing the construction of the project within the Coastal Zone, consistent with the requirement of Director's Determination No. DD2021-001. • Vesting Tentative Tract Map No. NT2021-003: A vesting tentative tract map for the creation of a condominium map. • Addendum No. 6 (ER2022-002) to the 2006 General Plan Update Program Environmental Impact Report: Pursuant to the California Environmental Quality Act (“CEQA”), the addendum determined there are no new significant environmental impacts resulting from the Project. 3. The Property is designated Visitor Serving Commercial (CV) by the General Plan Land Use Element and is located within the Commercial Visitor-Serving (CV) Zoning District. 4. The Property is located within the coastal zone, but outside of the California Coastal Commission Appeal Areas. The Coastal Commission does not have jurisdiction over the Project because it is outside the Appeal Area and because prior development on the Property (e.g., Santa Barbara Condos, CDP No. 5-07-085) has been processed under a new Coastal Development Permit rather than an amendment to the original Marriott Coastal Development Permit (CDP No. 5-83-139). The subject property’s Coastal Land Use Plan category is Visitor Serving Commercial (CV-B) and it is located within the Coastal Zone Commercial Visitor-Serving (CV) Coastal Zone District. 5. A public hearing was held on May 12, 2022, in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 54950 et seq. (“Ralph M. Brown Act”), and NBMC Chapters 20.62 (Public Hearings) and 21.62 (Public Hearings). Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. All potential environmental impacts for this Project have been previously addressed and mitigated through the implementation of the policies of the General Plan as evaluated in Program Environmental Impact Report for the 2006 General Plan Update (SCH No. 2006011119) (“PEIR”); therefore, in accordance with Section 15164 of the CEQA Guidelines, an addendum to the previously certified PEIR is the appropriate environmental documentation for the Project. Pursuant to Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, when an environmental impact report has been certified for a Project, no subsequent EIR is required unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following: 1. Substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 26 Planning Commission Resolution No. PC2022-011 Page 3 of 72 2. Substantial changes occur with respect to the circumstances under which the Project is undertaken, which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or 3. New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete, shows any of the following: a. The Project will have one or more significant effects not discussed in the previous EIR; b. Significant effects previously examined will be substantially more severe than shown in the previous EIR; c. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the Project, but the Project proponents decline to adopt the mitigation measure or alternative; or d. Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the Project proponents decline to adopt the mitigation measure or alternative. On the basis of the entire environmental review record, the Project will not result in any new significant impacts that were not previously analyzed in the PEIR for the General Plan 2006 Update (SCH No. 2006011119). All potential impacts associated with this Project would either be the same or less than those described in the PEIR. In addition, there are no substantial increases in the severity of any previously identified significant environmental impacts and no new mitigation measures are required for the implementation of the proposed Project; there are no changes in circumstances under which the proposed Project would be undertaken that would result in new or more severe significant environmental impacts; and there is no new information of substantial importance that would result in one or more new or substantially more severe significant impacts. Therefore, in accordance with Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, an addendum to the previously adopted PEIR is the appropriate environmental document for the Project. SECTION 3. REQUIRED FINDINGS. In accordance with the NBMC, City Council Policy K-4, and Director’s Determination No. DD2021-001, the following findings and facts in support of such findings for each of the required approvals is set forth below. 27 Planning Commission Resolution No. PC2022-011 Page 4 of 72 I. Major Site Development Review In accordance with NBMC Section 20.52.080(F) (Site Development Reviews), the Planning Commission may approve or conditionally approve a site development review application, only after first finding that the Project is: Finding: A. Allowed within the subject zoning district; Facts in Support of Finding: 1. The Property has a General Plan designation of Visitor Serving Commercial (CV), a Coastal Land Use Plan designation of Visitor Serving Commercial (CV-B), and a zoning designation of Commercial Visitor-Serving (CV). General Plan Anomaly Number 43 allows for 611 hotel rooms at the Property. In 2012, 79 of the 611 rooms were converted to residential dwelling units leaving approved 532 allowed hotel rooms in General Plan Anomaly Number 43. 2. On March 9, 2021, the City Council adopted City Council Policy K-4 (Reducing the Barriers to the Creation of Housing) by way of Resolution No. 2021-18. City Council Policy K-4 directed City staff to develop, modify as necessary, and aggressively implement strategies and action plans designed to accelerate housing production consistent with the policy, including encouraging the development of mixed-use hotels. 3. The goals of City Council Policy K-4 include interpreting ambiguities in the City’s General Plan, Coastal Land Use Plan, Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the NBMC to allow hotels and motels, located outside the Coastal Commission Appeal Areas, to convert up to 30% of their approved hotel rooms into residential units on a one-for-one basis. 4. On April 30, 2021, the Community Development Director issued Director’s Determination No. DD2021-001. The Director’s Determination implemented City Council Policy K-4 and found that residential uses are allowable accessory use within four resort hotels, including the Newport Beach Marriott Resort Hotel. The Director’s Determination also found that such residential uses are consistent with a hotel’s and motel’s underlying General Plan, Zoning Code, and Local Coastal Plan Program land use and zoning designations. Director’s Determination No. DD2021-001 was considered on appeal by the Planning Commission on July 8, 2021 and was considered by the City Council on appeal on August 24, 2021. Both the Planning Commission and the City Council denied the appeal and upheld the Director’s Determination. The time to challenge the Director’s Determination has lapsed, all applicable statutes of limitations has run, and the Director’s Determination is now final. 5. Project is located within the Newport Beach Marriot Resort Hotel which was identified in Director’s Determination No. DD2021-001 as one of the properties where conversion of hotel rooms to residential units is allowable in order to spur housing. 28 Planning Commission Resolution No. PC2022-011 Page 5 of 72 6. The primary use of the Property will remain a hotel which is identified as an allowable use within the Commercial Visitor-Serving (CV) zone. 7. Additionally, the Project is allowed as an accessory use within the zoning district in that it would allow a maximum of 30% (up to 159 hotel units) of the 532 existing units to be converted to residential units at the Property. As such, the Project, as an accessory use to the primary use as a hotel, is consistent with the applicable Commercial Visitor-Serving (CV) zoning district. Finding: B. In compliance with all of the following applicable criteria: a. Compliance with this Section, the General Plan, this Zoning Code, any applicable specific plan, and other applicable criteria and policies related to the use or structure; b. The efficient arrangement of structures on the site and the harmonious relationship of the structures to one another and to other adjacent developments; and whether the relationship is based on standards of good design; c. The compatibility in terms of bulk, scale, and aesthetic treatment of structures on the site and adjacent developments and public areas; d. The adequacy, efficiency, and safety of pedestrian and vehicular access, including drive aisles, driveways, and parking and loading spaces; e. The adequacy and efficiency of landscaping and open space areas and the use of water efficient plant and irrigation materials; and f. The protection of significant views from public right(s)-of-way and compliance with Section 20.30.100 (Public View Protection). Facts in Support of Finding: 1. The Property has a General Plan designation of Visitor Serving Commercial (CV), a Coastal Land Use Plan designation of Visitor Serving Commercial (CV-B), and a zoning designation of Commercial Visitor-Serving (CV). All CV designations allow for overnight accommodations and accessory land uses. 2. The Project is an allowable accessory land use to the primary use as a hotel based upon the facts and findings set forth in finding I.A above. As such, the Project is consistent with the applicable CV land use designations. 3. The Project is designed so as to be harmonious with the existing hotel and other adjacent developments. 4. The residential building will be setback 15 feet from Newport Center Drive and 5 feet from the westerly (interior) property line, in excess of City development standards. The height of the 22-story building would be 279 feet with additional accessory improvements and rooftop appurtenances such as elevator overruns and screened mechanical equipment up to 295 feet consistent with the existing high-rise 300 ft height limitation zone. Lastly, although there 29 Planning Commission Resolution No. PC2022-011 Page 6 of 72 is no minimum standard for open space, the proposed site plan provides approximately 42% of the site as open space consisting of hardscape and landscaping. 5. The Project is compatible with surrounding development and public spaces in terms of bulk, scale and aesthetic treatments. The existing buildings at the Property range from 30 feet to 151 feet in height and overlook the Newport Beach Country Club golf course. The Project is located in Newport Center which is characterized by high- and mid-rise office buildings surrounding Fashion Island. The majority of the high-rise buildings are located nearby in Blocks 400-600, with building heights exceeding 300 feet above ground level. Low- and mid-rise buildings are concentrated in the southeastern portion of Newport Center closest to MacArthur Boulevard and Pacific Coast Highway. Several other residential communities, including Meridian, Granville, the Colony Apartment Homes, Villas at Fashion Island, Vivante Senior Housing (currently under construction), and other approved projects, are located in Newport Center. The residential building will be constructed using high-quality materials including stone, metal, wood, steel, and glass glazing accents. 6. The Project draws inspiration from the California Post Modernism architectural style which is embedded in the original vision of Fashion Island as set forth by Master Architect William Pereira. William Pereira’s nautical inspired building forms, most prevalent in Pereira’s work at the Pacific Life Building at Block 700 in Newport Center, combined with the vision from the original vessels of The Ritz-Carlton Yacht Collection helped form the design of the Residences. Authentic Yacht inspired detailing is integrated into the architecture through the abundant use of natural materials and the emphasis on indoor and outdoor spaces. The building architecture respects the design pillars rooted in the formation of Fashion Island, while showcasing a modern interpretation that exemplifies the enduring qualities of The Ritz -Carlton brand. 7. The Project has been designed as a 22-story building structure constructed to include a range of indoor and outdoor common space and amenities. The indoor open space amenities will include gym and fitness facilities, locker rooms, spa treatment rooms, on-site private storage, concierge services, an owners room featuring billiards, a library and other uses. The outdoor amenities will include a resort style pool and spa, lounge seating, tranquil gardens, and a dog relief area. Common indoor amenities totaling 32,424 square feet will be located at the ground floor, basement level (B2), and on floors 16 and 17. Common outdoor amenities totaling 9,496 square feet will be located on the ground level and on floor 16. In addition to outdoor amenity areas, there will be 65,534 square feet of hardscape and landscape area. Each unit will contain private open space via a balcony. There is 143,038 square feet of private open space, which averages 899 square feet per unit. 8. The Project is integrated as a unified development through the use of similar architectural style and design elements, on-site parking, and adequate vehicular and pedestrian circulation with adjacent properties. The residential building will replace an existing building at the Property where setbacks along each street frontage are appropriate to support pedestrian connectivity within Newport Center and reduce the appearance of bulk. The street setbacks are consistent with surrounding zoning districts and afford a greater interface with the adjacent rights-of-way to ensure compatibility with the pedestrian environment. 30 Planning Commission Resolution No. PC2022-011 Page 7 of 72 9. The Project includes extensive landscape and hardscape areas with pedestrian circulation throughout the Property with a variety of plant materials including trees, vines, shrubs, and turf throughout the site and in open space areas. Evergreen specimen trees (Pinus species or similar) will be planted at the outer portions of the site while canopy shade trees will be planted around the motorcourt and event lawn. Smaller accent trees (such as Olea europea or similar) are proposed around the pool area. 10. The height, bulk, and scale of the Project buildings are comparable to heights of existing buildings within Newport Center. The Property is located within the City’s High-Rise Height Limitation Zone, which in Newport Center includes the Property, and the seven surrounding blocks to the north and east. Building heights in these blocks range from approximately 100 feet to 315 feet above ground level. The Property was originally contemplated to have buildings with a height of 375 feet; however, this height limit was reduced in 2010 to the current height limit of 300 feet above ground level. 11. Mechanical equipment for the residential units has been located within the parking garage as well as enclosures at the roof level to reduce noise impacts and minimize aesthetic impacts. The rooftop equipment, stairways, and elevator overrun will be screened from street view. 12. The Project has been designed to avoid conflicts among uses, such as noise, vibration, lighting, odors, and similar impacts. The Project’s new residential building will replace an existing hotel building and is designed to maintain privacy and protection for the surrounding residential and commercial uses as well as its residential tenants. Walkways and egress are sufficient throughout the Project as reviewed by the Building Division and the City Traffic Engineer. Existing pedestrian easements will be maintained at an appropriate width along the eastern property line and along Newport Center Drive to ensure adequate access across the site. 13. Pursuant to Title 20 (Planning and Zoning) of the NBMC, the Project exceeds the minimum standard requirements for parking. All of the parking is provided on-site via a subterranean valet-served parking structure with tandem parking approved by Modification Permit 2022- 001 and the Ritz-Carlton Residences Parking Management Plan dated April 13, 2022 (“Parking Management Plan”) that was prepared for the Project. 14. Access to the site, on-site circulation, and parking areas are designed to comply with City standards. Vehicle traffic will be directed to an entrance on the south side of the Property along Newport Center Drive (separate from the hotel entrance). The new access will align with the existing intersection and direct vehicles to the new porte cochere to valet services. Service and fire access will be maintained by a new secondary driveway constructed along the southern boundary of the site. All parking will be valet-served with a new 5-level, 408- space subterranean parking structure constructed under the porte cochere and entry drive area. 15. On-site circulation, project access, and parking areas are designed to provide standard sized parking spaces (with the exception of a number of tandem parking spaces), a 31 Planning Commission Resolution No. PC2022-011 Page 8 of 72 minimum 44’ wide driveway, 26’ wide drive aisles, and the minimum vehicle turning radius to provide adequate access for residents and guests, including a new secondary drive for emergency vehicles, delivery trucks, and refuse collections vehicles, as determined by the City Traffic Engineer. 16. The site design provides a new curb cut for emergency access along Newport Center Drive. The Project provides adequate sight distance at each driveway, as determined by the City Traffic Engineer. 17. The Project’s material palate consists of a neutral stone and glass building façade compatible with the surrounding development in Newport Center. The design will complement, enhance, and be compatible with the adjacent retail and office properties. The exterior will be comprised predominantly of concrete, metal finishes and glass; design accents at the ground elevation such as finished wood coverings and other stone and metal accents are integrated to enhance the expression of a modern architectural style. 18. The Project is subject to the City's Water-Efficient Landscape Ordinance (Chapter 14.17 of NBMC) and compliance will be confirmed at plan check prior to issuing building permits. 19. Addendum No. 6 prepared for the Project analyzed whether the Project would conflict with applicable zoning and other regulations governing scenic quality. The Project uses would be consistent with the CV zoning designation. The PEIR emphasizes that the General Plan Update would concentrate infill development and redevelopment in several specific subareas, including Newport Center/Fashion Island (i.e., high-density residential uses are proposed in the Newport Center/Fashion Island area). The Project will demolish a 1970s building and replace it with new hotel branded residences, and remove the existing structured parking on-site to develop a new parking structure and subterranean parking for the hotel branded residences. The Project’s new residential building will be aesthetically compatible with existing surroundings and will not have a material impact on visual character or public views. 20. The Project will be visible from SR-1, which is designated a Coastal View Road, and also from several public view points within the City. The majority of these view points feature views of the Newport Back Bay, and Newport Harbor, and are generally oriented in a westerly orientation. The Project is located more than 3,000 feet from the water, and will not block views from a Coastal View Road or public viewpoints because the predominate view from SR-1 is to the coastline, which is in the opposite direction compared to the Project. When the Project is developed as proposed, it would be of a comparable height to other nearby structures in Newport Center with no potential impact to scenic resources visible from SR-1. The photo simulations provided in Section 3.2 of Addendum No. 6 depict the new structure from several view points and demonstrate that Project will not impact or degrade coastal views. Finding: C. The proposed development is not detrimental to the harmonious and orderly growth of the City, nor endanger, jeopardize, or otherwise constitute a hazard to the public convenience, 32 Planning Commission Resolution No. PC2022-011 Page 9 of 72 health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed development. Facts in Support of Finding: 1. The Project has been designed to ensure that potential conflicts with surrounding land uses are minimized to the extent possible to maintain a healthy environment for both businesses and residents by providing an architecturally pleasing Project with articulation and building modulations to enhance the urban environment consistent with development in Newport Center. 2. The Project provides an architecturally pleasing nautical/contemporary design theme, which is consistent with the original master plan design for Newport Center, and features articulation and building modulation to enhance the urban environment consistent with existing buildings in Newport Center. The Project provides pedestrian paths and landscape areas that will create connectivity to surrounding uses. 3. The Property is located in a developed commercial area with limited sensitive land uses located nearby. The overall height of the Project is consistent with the High-Rise Height Limitation Zone and will not materially impact any public views from General Plan designated vantages or significantly shade surrounding properties as demonstrated in Section 3.1, Aesthetics, of Addendum No. 6. a. The Property is located in close proximity to the Granville Condominiums and will introduce a new high-rise residential building where existing low-rise hotel rooms are developed. Section 20.20.030 of the NBMC requires a 5-foot setback in the CV zone when adjacent to residential development. The property line is located within a sloped landscape area between the hotel and the Granville Condominiums. The nearest point of the residential structure will be setback approximately 35 feet from the property line. There will be a 5-foot setback from the internal property line to a 24’ to 30’ wide emergency access and service drive. The service drive will gradually slope downward and provide access to the subterranean parking structure. The service drive will provide a buffer between the development at grade level. b. A shade and shadow analysis was prepared to assess the impacts of the new residential building on the Granville Condominiums and the Meridian condominium complex. The Project would cast shadow on the garage portion of one residence at the Grandville community at 9:00 a.m. during Midsummer Solstice (June 21), and over some residences at the Meridian condominium complex at 9:00 a.m. during Midwinter Solstice (December 21), as shown in Section 3.1.C, Aesthetics of Addendum No. 6 Exhibit 3.1-1b and 3.1-1d, respectively. By 10:00 a.m., the shadows would not cover these residences and there would be no impact from shade/shadow to people residing in the area. Due to the short duration of anticipated shadows on off-site properties, Addendum No. 6 concluded that the Project would result in less than significant shade and shadow impacts and that no mitigation is required. 33 Planning Commission Resolution No. PC2022-011 Page 10 of 72 4. The proposed subterranean parking structure provides 408 parking spaces including ADA accessible spaces, standard spaces and tandem parking spaces, and through the use of valet parking will accommodate 100% of the Project's anticipated parking demand based upon the Parking Management Plan. Additionally, the parking lot and vehicular access thereto has been designed to accommodate and provide safe access for passenger vehicles, emergency vehicles, delivery trucks, and refuse collection vehicles, as analyzed in Section 3.17 (Transportation) of Addendum No. 6. 5. The Project includes a new parking structure including four levels below ground and 2 levels above ground to serve the existing hotel. The new parking structure will replace the existing parking structure in substantially the same location and provide 400 parking spaces. A total of 808 parking spaces (408 for hotel-branded residence and 400 for hotel use) are proposed for the Project which will adequately serve the Property. The Project will not result in any changes in vehicular circulation for the hotel. 6. Direct vehicular access to the Project will be provided from an existing driveway on Newport Center Drive along the south side of the Property. Vehicles will be directed along a new access drive to the new porte cochere where valet service will deliver cars into a new subterranean parking structure. A new secondary driveway will be constructed along the southern boundary of the Property to provide service and fire access from Newport Center Drive along the western boundary of the Property to the Event Lawn. 7. Emergency vehicles would access the Property along Newport Center Drive and onto the new service drive. The staging area will be marked for exclusive use by the Fire Department. 8. The Project has been designed to accommodate and provide access for delivery trucks, moving trucks, and refuse collections vehicles, as determined by the City Traffic Engineer. Delivery trucks will utilize the entry off of Newport Center Drive, while refuse collections vehicles will load trash along the service driveway. The Project includes the provision of freight elevators to ensure that residents can safely move in and staff can adequately service the building. 9. The Project is subject to the City's Outdoor Lighting requirements contained within NBMC Section 20.30.070 (Outdoor Lighting) of the Zoning Code. Condition No. 14 requires the preparation of a photometric study based on the final lighting plans to ensure that site and architectural lighting conforms with lighting requirements that the project is not excessively illuminated. Condition No. 15 also provides additional protection where the Community Development Director can order the diming of lighting should it be necessary. 10. The construction will comply with all Building, Public Works, and Fire Codes. All ordinances of the City and all conditions of approval shall be complied with. The Project includes a Fire Master Plan to ensure enhanced public safety and fire access to the property. II. Modification Permit 34 Planning Commission Resolution No. PC2022-011 Page 11 of 72 This Project requires a modification permit, consistent with Section 20.52.050 (Modification Permits) of the NBMC. In accordance with Section 20.52.050(E), the Planning Commission may approve or conditionally approve a modification permit if on the basis of the application, materials, plans, and testimony (orally and/or in writing) submitted, the Planning Commission first finds all of the following: Finding: A. The requested modification will be compatible with existing development in the neighborhood; Facts in Support of Finding: 1. The Project requires the demolition of an existing hotel building and parking structure, and construction of a new residential building, a new 408-space subterranean parking structure and new 400-space above grade parking structure. 2. The residents will be served by valet service that will deliver vehicles into a new 408-space subterranean parking structure that includes tandem parking. The Project is required to provide 398 parking spaces, and 408 will be provided. 3. Tandem spaces reduce the footprint and depth of the subterranean garage, making it a more efficient use of land. The Project will be adequately served by the new subterranean parking structure. At grade, parking features include a porte cochere where residents and guests will be met by a valet for vehicle drop off. Tandem parking in a subterranean parking garage is compatible with the existing commercial, retail, residential, and hotel uses in Newport Center. 4. Valet and tandem parking arrangements for hotel, commercial, and high-end residential building operations are used within the City. When operated according to an approved valet plan and by a professional valet service, valet parking has proven a proficient way to maximize parking efficiency and on-site parking demand. 5. Access to the Property and valet-services is from Newport Center Drive and has been determined to be adequate for the use and is compatible with the other commercial lots in the area. Finding: B. The granting of the modification is necessary due to the unique physical characteristic(s) of the property and/or structure, and/or characteristics of the use; Facts in Support of Finding: 1. The Project is located in Newport Center which is characterized by high- and mid-rise office buildings surrounding Fashion Island. The Property was originally developed in 1975 and the existing parking garage was built in 1984. Because Newport Center Drive is circular, 35 Planning Commission Resolution No. PC2022-011 Page 12 of 72 many of the properties fronting it are not a precise square or rectangular shape. However, the Property’s shape is even more unique in that it is elongated and can be characterized as a cross between rhombus and trapezium shaped. 2. Due to the lot size, width and depth of the site, subterranean parking with tandem parking spaces is necessary to accommodate the parking. 3. The Project’s 100% valet service for all residents and guests is consistent with the use of the Property as a Ritz-Carlton Residence. Finding: C. The granting of the modification is necessary due to practical difficulties associated with the property and that the strict application of the Zoning Code results in physical hardships that are inconsistent with the purpose and intent of the Zoning Code; Facts in Support of Finding: 1. The Project is located in Newport Center which is characterized by high- and mid-rise office buildings surrounding Fashion Island. The Project will provide parking in excess of the City’s residential parking requirements to ensure that all residents, guests and employees will have adequate access to parking. 2. However, as indicated above, the shape of the Property is unique. Given its unique shape of the property combined with the building setback requirements, landscaping, vehicular access and open space requirements at the Property, tandem parking is appropriate. 3. The available on-site area to provide parking has been maximized and can accommodate a maximum of 408 parking spaces in the Project’s subterranean parking structure while still providing landscaping, adequate vehicular access, and open space at the Property. 4. Granting Modification Permit No. 2022-001 meets the intent of the NBMC by providing the required number of parking spaces on-site without the need to use off-site parking spaces. Finding: D. There are no alternatives to the Modification Permit, that could provide similar benefits to the applicant with less potential detriment to surrounding owners and occupants, the neighborhood, or to the general public; and Facts in Support of Finding: 1. An alternate solution would be to expand the footprint of the subterranean residential parking structure or increase the size of the hotel parking structure. Both of those options would require a significant change to the scope of work and may result in a structure with undesirable bulk, or scale. 36 Planning Commission Resolution No. PC2022-011 Page 13 of 72 2. Vehicles for the Project will access the property from an existing driveway on Newport Center Drive that will take residents and guests to the porte cochere where valet services will park vehicles in the subterranean parking garage. On-site circulation is not expected to be impacted by the use of tandem spaces for valet parking 3. The inclusion of tandem parking stalls will not be a detriment to the surrounding neighborhood or general public because the number of parking spaces will exceed the code requirement. Valet operations will manage all resident and guest parking, thereby eliminating any impact to the general public or surrounding owners, occupants and the neighborhood. The subterranean parking structure takes up the majority of the property to the east of the building and allows for the above grade surface to contain substantial setbacks, open space, and landscape treatments. Because the parking will be managed by valet operations, as is standard for a Ritz-Carlton Residence, there is no alternative to the tandem parking that would provide similar benefits of increased open space and landscape treatments. Finding: E. The granting of the modification would not be detrimental to public health, safety, or welfare to the occupants of the property, nearby properties, the neighborhood, or the City, or result in a change in density or intensity that would be inconsistent with the provisions of this Zoning Code. Facts in Support of Finding: 1. The parking lot has been reviewed for adequate access and circulation for use by residents, guests, employees, and access by emergency vehicles. 2. Prior to implementation of the Project a final valet parking management plan is required to be reviewed and approved by the Public Works Department and Community Development. 3. The inclusion of tandem parking will not be a detriment to public health, safety, or welfare to the occupants of the property or nearby properties, the neighborhood or the City because the parking will be managed by valet operation, and will exceed the required number of parking spaces which will ensure that there is adequate parking on-site and that off-site parking will not be required by residents, guests or employees. Tandem parking is allowed by the zoning code, subject to a modification permit. The addresses the provision of valet parking for the Project. III. Conditional Use Permit This Project requires a conditional use permit, consistent with NBMC Section 20.52.020 (Conditional Use Permits and Minor Use Permits) and the requirements of Director’s Determination No. DD2021-001. In accordance with Section 20.52.020(F), the Planning Commission may approve or conditionally approve a conditional use permit, only after first finding all of the following: 37 Planning Commission Resolution No. PC2022-011 Page 14 of 72 Finding: A. The use is consistent with the General Plan and any applicable specific plan; Facts in Support of Finding: 1. The conversion of up to 159-hotel branded residences is consistent with General Plan designation of Visitor Serving Commercial (CV); a Coastal Land Use Plan designation of Visitor Serving Commercial (CV-B); and a Zoning designation of Commercial Visitor-Serving (CV), which allows for the Project site to provide overnight accommodations and accessory land uses. City Council Policy K-4 and Directors Determination No. DD2021-001 permit residential dwellings as an accessory use to the primary use of the Property as a resort hotel. The Director’s Determination contains regulations and restrictions to ensure the allowance of residential accessory units within a hotel property does not change the primary land use, which remains resort hotel. 2. The Project site is not located within a Specific Plan area. Finding: B. The use is allowed within the applicable zoning district and complies with all other applicable provisions of this Zoning Code and the Municipal Code; Facts in Support of Finding: 1. On March 9, 2021, the City Council adopted Resolution No. 2021-18 Reducing the Barriers to the Creation of Housing (City Council Policy K-4). City Council Policy K-4 directed City staff to develop, modify as necessary, and aggressively implement strategies and action plans designed to accelerate housing production consistent with the policy, including encouraging the development of mixed-use hotels. 2. The goals of City Council Policy K-4 include interpreting ambiguities in the City’s General Plan, Coastal Land Use Plan, Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the NBMC. City Council Policy K-4 allows hotels and motels, located outside the Coastal Commission Appeal Areas, to convert up to 30% of their approved hotel rooms into residential units on a one-for-one basis. 3. On April 30, 2021, the Community Development Director issued Director’s Determination No. DD2021-001. The Director’s Determination implemented City Council Policy K-4 and found that residential uses are allowable as an accessory use within four resort hotels, including the Newport Beach Marriott Resort Hotel. The Director’s Determination also found that such residential uses are consistent with a hotel’s and motel’s underlying General Plan, Zoning Code, and Local Coastal Plan Program land use and zoning designations. Director’s Determination No. DD2021-001 was considered on appeal by the Planning Commission on July 8, 2021, and was considered by the City Council on appeal on August 24, 2021. Both the Planning Commission and the City Council denied the appeal and upheld 38 Planning Commission Resolution No. PC2022-011 Page 15 of 72 the Director’s Determination. The time to challenge the Director’s Determination has lapsed, the statute of limitations has run, and the Director’s Determination is now final. 4. The conversion of hotel units to residential as an accessory use is consistent with City Council Policy K-4 and Director’s Determination No. DD2021-001. The City has already identified the Property as a qualifying resort hotel offering destination accommodations, including restaurant and recreation facilities. 5. The Project complies with City Council Policy K-4 and Director’s Determination No. DD2021-001 for a conversion of up to 30% (up to 159 hotel units) of the 532 existing units to hotel branded residences. The conversion will result in a 30% decrease in number of hotel rooms. The total number of units at the property will remain the same, at 532 units. The VEA Newport Beach, A Marriott Resort and Spa is located outside the California Coastal Commission Appeal Areas, identified in California Public Resources Code Section 30603(a). 6. The new hotel-branded residence building complies with the CV zoning district design standards. The proposed building will be setback 15 feet from Newport Center Drive and 5 feet from the southerly (interior) property line all in excess of the standards. The height of the 22-story building would be 279 feet with additional accessory improvements and rooftop appurtenances such as elevator overruns and screened mechanical equipment up to 295 feet consistent with the existing high-rise 300 ft height limitation zone. Lastly, although there is no minimum standard for open space, the proposed site plan provides approximately 42% of the site as open space consisting of hardscape and landscaping. Finding: C. The design, location, size, and operating characteristics of the use are compatible with the allowed uses in the vicinity; Facts in Support of Finding: 1. The Project is located in Newport Center which is an area characterized by high- and mid- rise office buildings surrounding Fashion Island. The majority of the high-rise buildings are located nearby in Blocks 400-600, with building heights exceeding 300 feet above ground level. Low- and mid-rise buildings are concentrated in the southeastern portion of Newport Center closest to MacArthur Boulevard and Pacific Coast Highway. The Project height is consistent with the City’s High-Rise Height Limitation Zone established in the Zoning Code. 2. The design of the structure will include high-quality materials including wood, stone, steel and metal accents, and glass fiber reinforced concrete (GFRC), and expansive openings, which is consistent with the high-quality design in Newport Center. The new hotel-branded residence building will be oriented on the site in such a manner as to reduce the bulk and scale as viewed from Newport Center Drive, and from surrounding properties. 3. The Project is compatible with the existing resort hotel, and the surrounding area. There are several other residential communities, including Meridian, the Colony, Villas at Fashion 39 Planning Commission Resolution No. PC2022-011 Page 16 of 72 Island, Vivante Senior Housing (currently under construction), and other approved residential projects, located in Newport Center. 4. The Project will provide residents the opportunity to access the shopping, dining and other resident-serving amenities within the Fashion Island/Newport Center area. Finding: D. The site is physically suitable in terms of design, location, shape, size, operating characteristics, and the provision of public and vehicle (e.g., fire and medical) access and public services and utilities; and Facts in Support of Finding: 1. The proposed improvement area consists of 2.775 acres within the 9.53-acre VEA Newport Beach, A Marriott Resort and Spa property. The new hotel-branded residence building will replace an existing hotel building. The site can accommodate the new hotel-branded residence building and provide adequate parking. The Project would result in less traffic compared to the existing 532 room hotel. The hotel branded residences would generate 43 AM peak hour trips, 51 PM peak hour trips, and 722 average daily trips (ADTs). Combined, the existing hotel and new hotel branded residences would generate 215 AM peak hour trips and 271 PM peak hour trips, while the existing hotel generates 245 AM peak hour trips and 314 PM peak hour trips. The ADT generation for the combined existing hotel and new hotel branded residences is 3,702, and the ADT for the existing hotel is 4,251. The anticipated trip generation for the combined existing hotel and the proposed hotel branded residences would result in a trip reduction of 549 ADTs. 2. The Project is compatible with surrounding development and public spaces in terms of bulk, scale and aesthetic treatments. The existing buildings at the Project site range from 30 feet to 151 feet in height and overlook the Newport Beach Country Club golf course. The Project is located in Newport Center which is characterized by high- and mid-rise office buildings surrounding Fashion Island. The majority of the high-rise buildings are located nearby in Blocks 400-600, with building heights exceeding 300 feet above ground level. Low- and mid-rise buildings are concentrated in the southeastern portion of Newport Center closest to MacArthur Boulevard and Pacific Coast Highway. Several other residential communities, including Meridian, Villas at Fashion Island, Vivante Senior Housing (currently under construction), and other approved projects, are located in Newport Center. The residential building will be constructed using the highest quality materials including stone, metal, wood, steel, and glass glazing accents. 3. Service and fire access will be maintained by a new secondary driveway from Newport Center Drive and drive aisle along the southern boundary of the site. All parking will be valet-served with a new 5-level, 408-space subterranean parking structure constructed under the porte cochere and entry drive area. 4. The Project includes a new parking structure (4-levels below ground, 2-levels above ground) to serve the existing hotel. The new parking structure will replace the existing 40 Planning Commission Resolution No. PC2022-011 Page 17 of 72 parking structure in substantially the same location and provide 400 parking spaces via four subterranean levels and two above ground levels. A total of 808 parking spaces (408 for hotel-branded residence and 400 for hotel use) are proposed for the Project which will adequately serve the site. The Project will not result in any changes in vehicular circulation for the hotel. Finding: E. Operation of the use at the location proposed would not be detrimental to the harmonious and orderly growth of the City, or endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. Facts in Support of Finding: 1. The Project provides an architecturally pleasing theme with articulation and building modulation to enhance the urban environment consistent with existing buildings in Newport Center. The Project provides pedestrian paths and landscape areas that will create connectivity to surrounding uses. 2. The Project will redevelop an old building with high-density hotel branded residences and remove the existing surface parking on-site to develop a parking structure and subterranean parking for the hotel branded residences. 3. The Project includes extensive landscape and hardscape areas with pedestrian circulation throughout the site with a variety of plant materials including trees, vines, shrubs, and turf throughout the site and in open space areas. Evergreen specimen trees (Pinus species or similar) will be planted at the outer portions of the site while canopy shade trees will be planted around the motorcourt and event lawn. Smaller accent trees (such as Olea europea or similar) will be planted around the pool area. 4. Access to the site, on- site circulation, and parking areas are designed to comply with City standards. Vehicle traffic will be directed to an entrance on the south side of the property along Newport Center Drive (separate from the hotel entrance). The new access will align with the existing intersection and direct vehicles to the new porte cochere to valet services. Service and fire access will be maintained by a new secondary driveway constructed along the southern boundary of the site. All parking will be valet-served with a new 5-level, 408- space subterranean parking structure constructed under the porte cochere and entry drive area. 5. The Project provides parking in excess of the parking requirements via the inclusion of tandem parking spaces. The use of valet parking will allow for the active management of tandem parking without resident or guests facing the task of tandem parking themselves. The tandem parking combined with the valet parking program will accommodate 100% of the Project' s anticipated parking for residents, guests and employees. Additionally, a service drive is included to provide safe and separate access for emergency vehicles, 41 Planning Commission Resolution No. PC2022-011 Page 18 of 72 service and delivery trucks, moving vans, and refuse collection vehicles as detailed in the Parking Management Plan. IV. Coastal Development Permit This Project requires a coastal development permit, consistent with NBMC Section 21.52.015 (Coastal Development Permits) and the requirement of Director's Determination No. DD2021- 001. In accordance with Section 21.52.015(F), the Planning Commission may approve or conditionally approve a coastal development permit, only after first finding that the proposed development: Finding: A. Conforms to all applicable sections of the certified Local Coastal Program (e.g. development standards, no impacts to public views, natural resources, etc.); and Facts in Support of Finding: 1. The hotel branded residences are consistent with the General Plan designation of Visitor Serving Commercial (CV); a Coastal Land Use Plan designation of Visitor Serving Commercial (CV-B); and a Zoning designation of Commercial Visitor-Serving (CV), which allows for the Project site to provide overnight accommodations and accessory residential uses as part of a resort hotel land use. 2. The proposed Project is consistent with City Council Policy K-4 (Reducing the Barriers to the Creation of Housing) and Director’s Determination No. DD2021-001, which allows for accessory residential uses within resort hotels subject to seven separate requirements including the following: a. Accessory residential is only allowed within resort hotels, a self-contained destination that provides for all needs in one location. The Project is part of the VEA Newport Beach, A Marriott Resort and Spa, which is a self-contained destination providing restaurant, bar, recreational facilities including a pool, spa, and a variety of other guest-serving uses. b. Must be located outside the appeal area identified in California Public Resource Code Section 30603(a). The Project is located outside the appeal area identified in California Public Resources Code Section 30603(a) as depicted on the Post-LCP Certification Permit and Appeal Jurisdiction Map, and is located at the northeastern most boundary of the coastal zone. c. Approved hotel rooms may be converted to residential units but only on a one-for-one basis. PA2012-020 set the General Plan limit for hotel rooms at 532 in Anomaly 43 where the Project is located, which is consistent with the Coastal Implementation Plan. The proposed hotel branded residences would include up to 159 hotel branded residences with a corresponding reduction in the number of hotel rooms. No new intensity would be created, rather the units would be converted on a one-to-one basis 42 Planning Commission Resolution No. PC2022-011 Page 19 of 72 via the reduction in the existing number of approved hotel rooms. The total units at the VEA Newport Beach, A Marriott Resort and Spa would remain at 532. Of the 532 units, 373 would be traditional hotel rooms and up to 159 would be hotel branded residences. d. The residential use shall at all times be accessory to the hotel use, and the residential units shall comprise no more than 30% of the approved hotel rooms. The hotel branded residences will be part of the resort hotel campus and are accessory to the hotel use. The Project will result in up to 159 hotel branded residences which represents the conversion of up to 30% of the existing 532 hotel rooms. e. The residential units may be located within a repurposed hotel or in a new residential structure. The proposed hotel branded residences will be located within a new hotel- branded residential structure. f. A conditional use permit and coastal development permit is required to ensure adequate parking through surplus parking, shard parking, or the adoption of a parking management plan. The Project exceeds the parking requirements for both the project itself and the hotel. The parking will be managed via valet operations as detailed in the Parking Management Plan, and the Parking Management Plan for the VEA Newport Beach, A Marriott Resort and Spa, dated April 13, 2022. g. Potential impacts to public access, affordable housing, and the loss of transient occupancy tax must be mitigated by entering into a Development Agreement with the City of by some other means deemed appropriate. (1) The Project does not result in impacts to public access insomuch as the property is an existing resort hotel which is available to paying guests. The property does not provide public access to the coast or public access to other recreational opportunities. In addition, the existing resort hotel does not provide low-cost accommodations, and the Project will not result in an impact to existing low-cost accommodations as analyzed in NBMC Section 21.48.025 Feasibility and Impact Analyses for The Ritz-Carlton Residences dated March 18, 2022, and attached as Exhibit I. (2) The Project will result in the creation of new housing consistent with the purpose and intent of City Council Policy K-4 and Director’s Determination No. DD2021-001. The City does not have an Inclusionary Housing Ordinance or an Affordable Housing Implementation Plan. Nevertheless, it is recognized that affordable housing is an important component of any new residential housing project, and the proposed Project will provide an in-lieu fee related to affordable housing as a condition of approval to the Vesting Tentative Tract Map as detailed in those findings. (3) The Transient Occupancy Taxes (TOT) Analysis Consistent with Newport Beach City Council Policy K-4 for Conversion of Hotel Rooms to Project dated March 18, 2022 and attached as Exhibit J analyzed the potential loss of TOT associated with the reduction of up to 159 hotel rooms. The analysis concludes that although the reduction in hotel rooms associated with Project implementation would affect TOT 43 Planning Commission Resolution No. PC2022-011 Page 20 of 72 receipts to the City, this reduction in TOT would be fully mitigated because the 373 remaining hotel rooms would be significantly upgraded compared to the existing 532 hotel rooms, and each upgraded room is expected to rent for a higher room rate – and thus, generate higher TOT- than would the existing unrenovated rooms. The analysis concludes that the projected 20-Year combined TOT and property taxes to be generated by the Project would result in total tax receipts to the City of approximately $136,413,736, which is $7,694,975 more than the City would otherwise receive if the Project was not built. This represents a net increase in revenue for the City compared to the hotel alone. As such, no mitigation is necessary because the overall assessment of TOT and property taxes will result in a net financial benefit to the City. 3. The proposed Project complies with the CV zoning district design standards including setback, height, parking, open space as further detailed in the Site Development Review findings. The proposed hotel-branded residence building will exceed all required setbacks. The height of the 22-story building would be 279 feet with additional accessory improvements and rooftop appurtenances such as elevator overruns and screened mechanical equipment up to 295 feet which is within the existing high-rise height limitation zone of 300 feet. Parking for the hotel branded residences will be subterranean, and the Project will provide parking in excess of the code requirement. Although there is no minimum standard for open space, the proposed site plan provides approximately 42% of the site as open space consisting of hardscape and landscaping and provides parking in excess of the parking requirements. The Project will include the construction of a new parking structure to replace the existing hotel parking structure in a similar location but with a smaller footprint and enhanced vehicular circulation. The hotel parking structure will include four subterranean levels and two above ground levels and be setback from Newport Center Drive approximately 15 feet. 4. The Project is compatible with surrounding development and public spaces in terms of bulk, scale and aesthetic treatments. The property is within the High-Rise Height Limitation Zone, allow for buildings up to 300 feet. The existing buildings at the Project site range from 30 feet to 151 feet in height and overlook the Newport Beach Country Club golf course. The Project is located in Newport Center which is characterized by high- and mid-rise office buildings surrounding Fashion Island. The majority of the high-rise buildings are located nearby in Blocks 400-600, with building heights exceeding 300 feet above ground level. Low- and mid-rise buildings are concentrated in the southeastern portion of Newport Center closest to MacArthur Boulevard and Pacific Coast Highway. Several other residential communities, including Meridian, Villas at Fashion Island, Vivante Senior Housing (currently under construction), and other pending projects, are located in Newport Center. The residential building will be constructed using high quality materials including stone, metal, wood, steel, and glass glazing accents. 5. The Project site is not abutting a coastal view road, public access way, or Coastal Viewpoint as identified in the Coastal Land Use Plan. Extensive photo simulations were prepared to depict the proposed Project from more than 10 locations throughout the City, from vantage points near and far. These photo simulations depict the proposed Project within the broader context of large buildings in Newport Center. Public views and viewpoints were assessed 44 Planning Commission Resolution No. PC2022-011 Page 21 of 72 including views from Newport Harbor, Castaways Park, Back Bay View Park, and many other prominent locations. The proposed Project does not inhibit public views of the bay nor do they inhibit views from public viewpoints or parks. 6. The Project includes extensive landscape and hardscape areas with pedestrian circulation throughout the site with a variety of plant materials including trees, vines, shrubs, and turf throughout the site and in open space areas. Evergreen specimen trees (Pinus species or similar) will be planted at the outer portions of the site while canopy shade trees will be planted around the motorcourt and event lawn. Smaller accent trees (such as Olea europea or similar) will be planted around the pool area. 7. Access to the site, on- site circulation, and parking areas are designed to comply with City standards. Vehicle traffic will be directed to an entrance on the south side of the property along Newport Center Drive (separate from the hotel entrance). The new access will align with the existing intersection and direct vehicles to the new porte cochere to valet services. Service and fire access will be maintained by a new secondary driveway constructed along the southern boundary of the site. All parking will be valet-served with a new 5-level, 408- space subterranean parking structure constructed under the porte cochere and entry drive area. 8. The Project includes the replacement of the existing hotel parking structure with a new parking structure to serve the hotel. The new parking structure will replace the existing parking structure in substantially the same location but with a smaller footprint and increased internal circulation. The parking structure will include four levels subterranean and two levels above ground, with a total of 408 parking spaces. A total of 808 parking spaces (408 for hotel-branded residence and 400 for hotel use) are proposed for the Project which will exceed the parking requirements. The Project will not result in any changes in vehicular circulation for the hotel. 9. The Project is subject to the City's Water-Efficient Landscape Ordinance (Chapter 14.17 of NBMC) and compliance will be confirmed at plan check prior to issuing building permits. 10. Addendum No. 6 analyzed whether the Project would conflict with applicable zoning and other regulations governing scenic quality. The Project uses would be consistent with the CV zoning designation. The 2006 EIR emphasizes that the General Plan Update would concentrate infill development and redevelopment in several specific subareas, including Newport Center/Fashion Island (i.e., high-density residential uses are proposed in the Newport Center/Fashion Island area). The Project will redevelop an old building façade with new hotel branded residences and remove the existing surface parking on-site to develop a parking structure and subterranean parking for the hotel branded residences. The new building will be aesthetically compatible with existing surrounding and will not have a material impact on visual character or public views 45 Planning Commission Resolution No. PC2022-011 Page 22 of 72 Finding: B. Conforms with the public access and public recreation policies of Chapter 3 of the Coastal Act if the project is located between the nearest public road and the sea or shoreline of any body of water located within the coastal zone. Facts in Support of Finding: 1. The Project is not located between the nearest public road and the sea or shoreline of any body of water located within the coastal zone. The Project site is located approximately 3,300 feet from Newport Harbor. As such, it is not necessary to assess the consistency with the public access and public recreation policies of Chapter 3 of the Coastal Act. The Project site does not provide public access or public recreation opportunities and will not impact any public access or public recreational opportunities as detailed in Chapter 3 of the Coastal Act. V. Vesting Tentative Tract Map This Project requires a vesting tentative tract map, consistent with NBMC Section 19.20.040 (Filing and Review). In accordance with Section 19.12.070(A), the Planning Commission may approve a vesting tentative tract map, only after first making the following findings: Finding: A. That the proposed map and the design or improvements of the subdivision are consistent with the General Plan and any applicable specific plan, and with applicable provisions of the Subdivision Map Act and this Subdivision Code; Facts in Support of Finding: 1. Refer to Facts A. 1-2 and B. 1-2 under Site Development Review that discuss the Project’s consistency with the Commercial Visitor (CV) General Plan land use designation. 2. The Tentative Tract Map (for condominium purposes) provides a cohesive development with a pattern of dwelling unit orientations and vehicle circulation that provides a pedestrian-friendly environment with strong connectivity to adjacent commercial and office areas. 3. The Public Works Department has reviewed the proposed tentative map and found it consistent with Title 19 (Subdivisions) of the NBMC and applicable requirements of the Subdivision Map Act as set forth in California Government Code Section 66410 et seq. 4. Conditions of approval have been included to ensure compliance with Title 19 (Subdivisions) of the NBMC. Finding: B. That the site is physically suitable for the type and density of development; 46 Planning Commission Resolution No. PC2022-011 Page 23 of 72 Facts in Support of Finding: 1. The site is not located in a flood zone. The geotechnical feasibility study and geotechnical report will provide additional recommendations for construction of the Project to ensure the suitability for the proposed development that will be required for construction prior to the issuance of building permits. 2. The 2.775-acre site is large enough to accommodate the proposed new residential building while providing sufficient landscape setbacks, open space areas, as well as vehicle access and guest parking areas that meet applicable standards. The existing developed site is devoid of natural resources and it is located in an area that provides adequate access to roadways and utilities. 3. Noise levels at the Project site are up to 58.3 dBA CNEL. Per the City’s General Plan Noise Element, noise levels of up to 60 dBA CNEL are considered clearly compatible. Additionally, the outdoor activity/amenity area including the proposed pools, lounge, and deck would be set back from the adjacent roadways. With appropriate noise control measures under conventional construction and design of the Project (e.g., closed windows, fresh air supply systems or air conditioning), the interior noise levels will be well below the City and State interior noise standard of 45 dB CNEL for residential units. Finding: C. That the design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage nor substantially and avoidably injure fish or wildlife or their habitat. However, notwithstanding the foregoing, the decision making body may nevertheless approve such a subdivision if an environmental impact report was prepared for the project and a finding was made pursuant to Section 21081 of the California Environmental Quality Act that specific economic, social or other considerations make infeasible the mitigation measures or project alternatives identified in the environmental impact report; Facts in Support of Finding: 1. Under existing conditions, the Property and surrounding land areas are fully developed with urban uses and do not contain sensitive biological resources. The vegetation that occurs on-site is ornamental in nature, including trees and ornamental shrubs, groundcover, and vines growing on the existing building’s facades and screen walls. A Mitigation Measure is provided by the 2006 EIR to ensure adequate protection of nesting birds during the construction process. The Project will have no substantial change from the previous EIR analysis, as documented in the EIR Addendum. 2. No drainages traverse the property and no potential jurisdictional waters or wetlands areas are present on or immediately adjacent to the Property. 47 Planning Commission Resolution No. PC2022-011 Page 24 of 72 3. Addendum No. 6 to the City of Newport Beach General Plan Update Environmental Impact Report (SCH No. 2006011119) was prepared for the Project. On the basis of the entire environmental review record, Addendum No. 6 concludes that the Project will have no substantial change to biological resources, cultural resources, geology and soils, and tribal cultural resources from the previous EIR analysis, as documented in the EIR Addendum. Finding: D. That the design of the subdivision or the type of improvements is not likely to cause serious public health problems; Facts in Support of Finding: 1. At full build-out, air quality and Green House Gas (“GHG”) emissions associated with construction of the Project will have no substantial change from the previous EIR analysis, as documented in the EIR Addendum. 2. Potential impacts associated with biological resources, cultural resources, geology and soils, and tribal cultural resources will have no substantial change from the previous EIR analysis, as documented in the EIR Addendum. 3. No evidence is known to exist that would indicate that the planned subdivision pattern will generate any serious public health problems. 4. All construction for the Project complies with Building, Public Works, and Fire Codes. Public improvements will be required of the developer per NBMC Section 19.28.010 and Sections 66410 et seq. of the Subdivision Map Act. All ordinances of the City and all conditions of approval will be complied with. The anticipated trip generation for the combined existing hotel and the proposed hotel branded residences would result in a trip reduction of 549 ADTs relative to the existing uses on site. Finding: E. That the design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of property within the proposed subdivision. In this connection, the decision-making body may approve a map if it finds that alternate easements, for access or for use, will be provided and that these easements will be substantially equivalent to ones previously acquired by the public. This finding shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to the City Council to determine that the public at large has acquired easements for access through or use of property within a subdivision; 48 Planning Commission Resolution No. PC2022-011 Page 25 of 72 Facts in Support of Finding: 1. Public improvements, consisting of the reconstruction of the curb, gutter, and sidewalks, one (1) new driveway along the Newport Center Drive frontage, and street trees along Newport Center Drive will be required of the applicant per Title 19 (Subdivisions) and the Subdivision Map Act. A common sewer and water connection will be provided for the Project as approved by the Public Works Department that will connect to an existing main that serves the existing hotel. 2. There are no easements that will be impacted by this Project. Finding: That, subject to the detailed provisions of Section 66474.4 of the Subdivision Map Act, if the land is subject to a contract entered into pursuant to the California Land Conservation Act of 1965 (Williamson Act), the resulting parcels following a subdivision of the land would not be too small to sustain their agricultural use or the subdivision will result in residential development incidental to the commercial agricultural use of the land; Fact in Support of Finding: The Property does not contain prime farmland, unique farmland, or farmland of statewide importance and no portion of the Property is covered by a Williamson Act contract. Finding: F. That, in the case of a “land project” as defined in Section 11000.5 of the California Business and Professions Code: (1) There is an adopted specific plan for the area to be included within the land project; and (2) the decision-making body finds that the proposed land project is consistent with the specific plan for the area; Facts in Support of Finding: 1. California Business and Professions Code Section 11000.5 has been repealed by the Legislature. However, this Property is not considered a “land project” as previously defined in Section 11000.5 of the California Business and Professions Code because the Property does not contain 50 or more parcels of land nor is it located within the boundaries of a specific plan. Finding: G. That solar access and passive heating and cooling design requirements have been satisfied in accordance with Sections 66473.1 and 66475.3 of the Subdivision Map Act; 49 Planning Commission Resolution No. PC2022-011 Page 26 of 72 Fact in Support of Finding: Tentative Tract Map No. 19222 and improvements are subject to Title 24 of the California Code of Regulations, referred to as the California Building Code or CBC, which requires new construction to meet minimum heating and cooling efficiency standards depending on location and climate. The Newport Beach Community Development Department ensures compliance with the CBC through the plan check and inspection process. Finding: H. That the subdivision is consistent with Section 66412.3 of the Subdivision Map Act and Section 65584 of the California Government Code regarding the City’s share of the regional housing need and that it balances the housing needs of the region against the public service needs of the City’s residents and available fiscal and environmental resources; Facts in Support of Finding: 1. The Property is improved with hotel uses, and there are no residential units on the Property. The Project includes the construction of up to 159 hotel-branded residence units to contribute to the City’s population needs consistent with City Council Policy K-4, Reducing the Barriers to the Creation of Housing and Director’s Determination No. DD2021-001 which allows for accessory residential uses within resort hotels subject to seven separate requirements including the following: a. Accessory residential is only allowed within resort hotels, a self-contained destination that provides for all needs in one location. The Project is part of the VEA Newport Beach, A Marriott Resort and Spa, which is a self-contained destination providing restaurant, bar, recreational facilities including a pool, spa, and a variety of other guest-serving uses. b. Must be located outside the appeal area identified in California Public Resource Code Section 30603(a) as depicted on the Post-LCP Certification Permit and Appeal Areas Map. The Project is located outside the appeal jurisdiction, at the northeastern most boundary of the coastal zone. c. Approved hotel rooms may be converted to residential units on a one-for-one basis. The existing resort hotel is allowed a maximum of 532 rooms in the Coastal Implementation Plan. The proposed hotel branded residences would include up to 159 hotel branded residences with a corresponding reduction in the number of hotel rooms. No new intensity would be created, rather the units would be converted on a one-to-one basis via the reduction in the existing number of approved hotel rooms. The total units at the VEA Newport Beach, A Marriott Resort and Spa would remain at 532. Of the 532 units, 373 would be traditional hotel rooms and up to 159 would be hotel branded residences. d. The residential use shall at all times be accessory to the hotel use, and the residential units shall comprise no more than 30% of the approved hotel rooms. The hotel branded residences will be part of the resort hotel campus and are accessory to the hotel use. 50 Planning Commission Resolution No. PC2022-011 Page 27 of 72 The Project will result in up to 159 hotel branded residences which represents the conversion of 30% of the existing 532 hotel rooms. e. The residential units may be located within a repurposed hotel or in a new residential structure. The proposed hotel branded residences will be located within the existing resort hotel property, within a new residential structure. f. A conditional use permit and coastal development permit is required to ensure adequate parking through surplus parking, shard parking, or the adoption of a parking management plan. The proposed Project exceeds the parking requirements for both the hotel branded residences and the hotel. The parking will be managed via valet operations as detailed in the Parking Management Plan, and the Parking Management Plan for the VEA Newport Beach, A Marriott Resort and Spa, dated April 13, 2022. g. Potential impacts to public access, affordable housing, and the loss of transient occupancy tax must be mitigated by entering into a Development Agreement with the City of by some other means deemed appropriate. (1) Any reduction in public access is limited to the reduction of hotel rooms available to the general public to paying guests. The property does not provide public access to the coast or public access to other recreational opportunities in the area. The existing resort hotel does not provide low-cost accommodations, and the Project will not result in an impact to existing low-cost accommodations as analyzed in NBMC Section 21.48.025 Feasibility and Impact Analyses for The Ritz-Carlton Residences dated March 18, 2022, and attached as Exhibit I. The general decrease of access associated with the reduction of up to 159 high-cost hotel rooms is mitigated through the payment of $10,700 per unit fee to the City that will be used a condition of approval of the Vesting Tentative Tract Map. (2) The Project will result in the creation of new housing consistent with the purpose and intent of City Council Policy K-1 and Director’s Determination No. DD2021-001. The City Council is considering adoption of an inclusionary housing ordinance in light of the City’s RHNA allocation and State mandated housing requirements. As a result, the Project will provide an in-lieu fee related to affordable housing as a condition of approval to the Vesting Tentative Tract Map as detailed in those findings. (3) The Transient Occupancy Taxes (TOT) Analysis Consistent with Newport Beach City Council Policy K-4 for Conversion of Hotel Rooms to Residential dated March 18, 2022, and attached as Exhibit J analyzed the potential loss of TOT associated with the reduction of up to 159 hotel rooms. The analysis concludes that although the reduction in hotel rooms associated with Project implementation would affect TOT receipts to the City, this reduction in TOT would be fully mitigated because the 373 remaining hotel rooms would be significantly upgraded compared to the existing 532 hotel rooms, and each upgraded room is expected to rent for a higher room rate – and thus, generate higher TOT- than would the existing unrenovated rooms. The analysis concludes that the projected 20-Year combined TOT and property taxes to be generated by the Project would result in total tax receipts to the City of 51 Planning Commission Resolution No. PC2022-011 Page 28 of 72 approximately $136,413,736. This represents a net increase in revenue for the City compared to the hotel alone. As such, no mitigation is necessary because the overall assessment of TOT and property taxes will result in a net financial benefit to the City. Finding: I. That the discharge of waste from the proposed subdivision into the existing sewer system will not result in a violation of existing requirements prescribed by the Regional Water Quality Control Board; and Facts in Support of Finding: 1. A National Pollutant Discharge Elimination System (“NPDES”) permit is required from the Regional Water Quality Control Board (“RWQCB”) for the proposed construction activities. A permit is required for all construction activities that include clearing, grading, and/or excavation that disturb at least 1 acre of total land area. Additionally, a Preliminary Water Quality Management Plan (“WQMP”) has been prepared, pursuant to the requirements of the NPDES permit. 2. Compliance with the NPDES permit and the Santa Ana River Basin Water Quality Control Program involves the preparation and implementation of a stormwater pollution prevention plan (“SWPPP”) for construction-related activities, which would specify the Best Management Practices (“BMP”) that the Project would be required to implement during construction activities to ensure that all potential pollutants of concern (including sediment) are prevented, minimized, and/or otherwise appropriately treated prior to being discharged from the Property. 3. Sewer connections will be installed per City Standards, the applicable provisions of NBMC Chapter 14.24 (Sewer Connection, Permits), and the latest revision of the Uniform Plumbing Code. 4. There is adequate sewer system capacity to serve the requirements of the Project. The Project is served by existing sewer service. The Project will not adversely affect the system, or cause any water quality affects, or violate existing requirements prescribed by the Regional Water Quality Control Board. 5. NBMC Section 14.24.020 (Dwelling Unit and Business Structure Sewer Connection Required) requires each dwelling unit to maintain individual water meter and sewer connections. The Project has received a waiver of this requirement from the Utilities Director since the units are located in one building and will together connect to the existing water and sewer systems. Finding: J. For subdivisions lying partly or wholly within the Coastal Zone, that the subdivision conforms with the certified Local Coastal Program and, where applicable, with public access and recreation policies of Chapter Three of the Coastal Act. 52 Planning Commission Resolution No. PC2022-011 Page 29 of 72 Facts in Support of Finding: The Property is located in the Coastal Zone but outside of the California Coastal Commission appeal jurisdiction. The subdivision conforms with the certified Local Coastal Program as detailed in the Findings for the Coastal Development Permit. Public access and recreation policies of Chapter Three of the Coastal Act are not applicable to the Project. Additionally, pursuant to Section 19.16.010(A) of the NBMC, an approved tentative tract map expires 24 months after the date of its approval or conditional approval. Under Section 19.16.020(A), the subdivider shall have the right to request an extension of the map for up to 5 years. The subdivider has submitted an application for an extension of Vesting Tentative Tract Map No. NT2021-003 and has requested that the extension be granted after the Planning Commission adopts Resolution No. PC2022-011; thus, providing for an initial term of the vesting tentative tract map of 24 months, followed by extension of 5 years, for a total term of 7 years from the date of approval of Resolution No. PC2022-011. VI. Consistency with Council Policy K-4 and Director’s Determination No. DD2021-001 The Project is consistent with City Council Policy K-4 (Reducing the Barriers to the Creation of Housing) and Director’s Determination No. DD2021-001, which allows for accessory residential uses within resort hotels subject to seven separate requirements including the following: 1. Accessory residential is only allowed within resort hotels, a self-contained destination that provides for all needs in one location. The Project is part of the VEA Newport Beach, A Marriott Resort and Spa, which is a self-contained destination providing restaurant, bar, recreational facilities including a pool, spa, and a variety of other guest-serving uses. 2. Must be located outside the appeal area identified in California Public Resource Code Section 30603(a). The Project is located outside the appeal area identified in California Public Resources Code Section 30603(a) as depicted on the Post-LCP Certification Permit and Appeal Jurisdiction Map, and is located at the northeastern most boundary of the coastal zone. 3. Approved hotel rooms may be converted to residential units but only on a one-for-one basis. PA2012-020 set the General Plan limit for hotel rooms at 532 in Anomaly 43 where the Project is located, which is consistent with the Coastal Implementation Plan. The Project would include up to 159 hotel branded residences with a corresponding reduction in the number of hotel rooms. No new intensity would be created, rather the units would be converted on a one-to-one basis via the reduction in the existing number of approved hotel rooms. The total units at the VEA Newport Beach, A Marriott Resort and Spa would remain at 532. Of the 532 units, 373 would be traditional hotel rooms and up to 159 would be hotel branded residences. 4. The residential use shall at all times be accessory to the hotel use, and the residential units shall comprise no more than 30% of the approved hotel rooms. The hotel residential units will be part of the resort hotel campus and are accessory to the hotel use. The Project will 53 Planning Commission Resolution No. PC2022-011 Page 30 of 72 result in up to 159 hotel branded residences which represents the conversion of up to 30% of the existing 532 hotel rooms. 5. The residential units may be located within a repurposed hotel or in a new residential structure. The proposed hotel branded residences will be located within a new hotel-branded residential structure. 6. A conditional use permit and coastal development permit is required to ensure adequate parking through surplus parking, shard parking, or the adoption of a parking management plan. The Project exceeds the parking requirements for both the project itself and the hotel. The parking will be managed via valet operations as detailed in the Parking Management Plan, and the Parking Management Plan for the VEA Newport Beach, A Marriott Resort and Spa, dated April 13, 2022. 7. Potential impacts to public access, affordable housing, and the loss of transient occupancy tax must be mitigated by entering into a Development Agreement with the City of by some other means deemed appropriate. (1) Any reduction in public access is limited to the reduction of hotel rooms available to the general public to paying guests. The property does not provide public access to the coast or public access to other recreational opportunities in the area. The existing resort hotel does not provide low-cost accommodations, and the Project will not result in an impact to existing low-cost accommodations as analyzed in NBMC Section 21.48.025 Feasibility and Impact Analyses for The Ritz-Carlton Residences dated March 18, 2022, and attached as Exhibit I. The general decrease of access associated with the reduction of up to 159 high-cost hotel rooms is mitigated through the payment of $10,700 per unit fee to the City that will be used a condition of approval of the Vesting Tentative Tract Map. (2) The Project will result in the creation of new housing consistent with the purpose and intent of City Council Policy K-4 and Director’s Determination No. DD2021-001. The City is consideration adoption of an Inclusionary Housing Ordinance or an Affordable Housing Implementation Plan. Council Policy K-4 recognized that affordable housing is an important component of any new residential housing project, and the Project will provide an in-lieu fee related to affordable housing as a condition of approval to the Vesting Tentative Tract Map as detailed in those findings. (3) The Transient Occupancy Taxes (TOT) Analysis Consistent with Newport Beach City Council Policy K-4 for Conversion of Hotel Rooms to Project dated March 18, 2022, and attached as Exhibit J analyzed the potential loss of TOT associated with the reduction of up to 159 hotel rooms. The analysis concludes that although the reduction in hotel rooms associated with Project implementation would affect TOT receipts to the City, this reduction in TOT would be fully mitigated because the 373 remaining hotel rooms would be significantly upgraded compared to the existing 532 hotel rooms, and each upgraded room is expected to rent for a higher room rate – and thus, generate higher TOT- than would the existing unrenovated rooms. The analysis concludes that the projected 20-Year combined TOT and property taxes to be generated by the Project would result in 54 Planning Commission Resolution No. PC2022-011 Page 31 of 72 total tax receipts to the City of approximately $136,413,736, which is $7,694,975 more than the City would otherwise receive if the Project was not built. This represents a net increase in revenue for the City compared to the hotel alone. As such, no mitigation is necessary because the overall assessment of TOT and property taxes will result in a net financial benefit to the City. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission finds that potential environmental impacts for this Project have been previously mitigated through the implementation of the policies of the General Plan as evaluated in Program Environmental Impact Report for the 2006 General Plan Update (SCH No. 2006011119) (“PEIR”); therefore, in accordance with Section 15164 of the California Environmental Quality Act (“CEQA”) Guidelines, an addendum to the previously adopted PEIR is the appropriate environmental documentation for the Project. 2. The Planning Commission of the City of Newport Beach hereby approves Project (PA2021-296), which includes a finding that the Project is eligible for accessory residential uses under Director’s Determination No. DD2021-001 and City Council Policy K-4, and approval of Environmental Impact Report Addendum No. 6, Major Site Development Review No. SD2021-005, Modification Permit No. 2022-0001, Conditional Use Permit No. UP2021-053, Coastal Development Permit No. CD2021-077, and Vesting Tentative Tract Map No. NT2021-003, subject to the conditions set forth in Exhibit “A,” which is attached hereto and incorporated by reference. 3. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal is filed with the City Clerk in accordance with the provisions of Title 20 (Planning and Zoning) of the Newport Beach Municipal Code. PASSED, APPROVED, AND ADOPTED THIS 12th DAY OF MAY, 2022. AYES: NOES: ABSTAIN: ABSENT: BY:_________________________ Lee Lowrey, Chairman BY:_________________________ Curtis Ellmore, Secretary 55 Planning Commission Resolution No. PC2022-011 Page 32 of 72 Attachments: Exhibit A – Conditions of Approval Exhibit B – 2006 General Plan Update EIR Exhibit C – Addendum No. 1 (North Newport Center) Exhibit D – Addendum No. 2 (North Newport Center Planned Community Amendment – ER2020-002) Exhibit E – Addendum No. 3 (Newport Airport Village) Exhibit F – Addendum No. 4 (Residences at Von Karman – ER2020-003) Exhibit G – Addendum No. 5 (Residences at 1300 Bristol – ER2022-001) Exhibit H – Addendum No. 6 (Ritz-Carlton Residences – ER2022-002) Exhibit I - Newport Beach Municipal Code Section 21.48.025 Feasibility and Impact Analyses for The Ritz-Carlton Residences dated March 18, 2022 Exhibit J - Transient Occupancy Taxes (TOT) Analysis Consistent with Newport Beach City Council Policy K-4 for Conversion of Hotel Rooms to Hotel-Branded Residences dated March 18, 2022 56 Planning Commission Resolution No. PC2022-011 Page 33 of 72 EXHIBIT “A” CONDITIONS OF APPROVAL (Project-specific conditions are in italics) Planning Division 1. The development shall be in substantial conformance with the approved site plan, floor plans and building elevations stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2. The project is subject to all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 3. The applicant shall comply with all federal, state, and local laws. Material violation of any of those laws in connection with the use may be cause for revocation of this Use Permit. 4. All proposed signs shall be in conformance with an approved Comprehensive Sign Program for the project site and provisions of Chapter 20.42 (Signs) of the Newport Beach Municipal Code. 5. Major Site Development Review No. SD2021-005, Conditional Use Permit No. UP2021- 053, Modification Permit No. 2022-001, Coastal Development Permit No. CD2021-077, and Vesting Tentative Tract Map No. NT2021-003 shall expire unless exercised within 24 months from the date of approval as specified in Section 20.91.050 of the Newport Beach Municipal Code, unless an extension is otherwise granted. Demolition of the existing Harbor Landing building shall deem the approvals in this resolution exercised. 6. Vesting Tentative Tract Map No. NT2021-003 shall expire 7 years from the date of approval of Resolution No. PC2022-011. Pursuant to NBMC Section 19.16.010(A) an approved tentative tract map expires 24 months after the date of its approval or conditional approval. Under NBMC Section 19.16.020(A), the subdivider shall have the right to request an extension of the map for up to 5 years. The subdivider has submitted an application for an extension of Vesting Tentative Tract Map No. NT2021-003 and has requested that the extension be granted after the Planning Commission adopts Resolution No. PC2022-011; thus, providing for an initial term of the vesting tentative tract map of 24 months, followed by extension of 5 years, for a total term of 7 years from the date of approval of Resolution No. PC2022-011. 7. The applicant shall pay a public benefit fee of one hundred thousand dollars $100,000 per unit to be paid prior to the issuance of a certificate of occupancy for the hotel-branded residences. The $100,000 per unit fee will be utilized in the following manner: $22,300 per unit for general public benefit to be used at City Council’s discretion; $2,000 per unit for public safety; $10,700 per unit for future improvements to public coastal access; and 57 Planning Commission Resolution No. PC2022-011 Page 34 of 72 $65,000 of this shall be used at the City’s discretion for the future acquisition and construction of senior affordable housing units. 8. Major Site Development Review No. SD2021-005, Conditional Use Permit No. UP2021-053, Modification Permit No. 2022-001, and Coastal Development Permit No. CD2021-077 may be modified or revoked by the Planning Commission should they determine that the proposed uses or conditions under which it is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity or if the property is operated or maintained so as to constitute a public nuisance. 9. Any substantial change in operational characteristics, expansion in area, or other modification to the approved plans, shall require an amendment to said plans or processing of new approvals. 10. A copy of the Resolution, including conditions of approval Exhibit “A” shall be incorporated into the Building Division and field sets of plans prior to issuance of the building permits. 11. Prior to the issuance of a building permit, the applicant shall submit to the Planning Division an additional copy of the approved architectural plans for inclusion in the Site Development Review/Modification Permit file. The plans shall be identical to those approved by all City departments for building permit issuance. The approved copy shall include architectural sheets only and shall be reduced in size to 11 inches by 17 inches. The plans shall accurately depict the elements approved by this Site Development Review/Modification Permit file and shall highlight the approved elements such that they are readily discernible from other elements of the plans. 12. Prior to the issuance of a building permit, the applicant shall submit a landscape and irrigation plan prepared by a licensed landscape architect. These plans shall incorporate drought tolerant plantings and water efficient irrigation practices, and the plans shall be approved by the Planning Division. 13. All landscape materials and irrigation systems shall be maintained in accordance with the approved landscape plan. All landscaped areas shall be maintained in a healthy and growing condition and shall receive regular pruning, fertilizing, mowing and trimming. All landscaped areas shall be kept free of weeds and debris. All irrigation systems shall be kept operable, including adjustments, replacements, repairs, and cleaning as part of regular maintenance. 14. Prior to the issuance of a building permit, the applicant shall prepare photometric study based on the final site and architectural lighting plans for approval by the Planning Division. The study shall show that lighting values are “1” or less at all property lines and the site and buildings are not excessively lighted. 15. The site shall not be excessively illuminated based on the luminance recommendations of the Illuminating Engineering Society of North America, or, if in the opinion of the 58 Planning Commission Resolution No. PC2022-011 Page 35 of 72 Director of Community Development, the illumination creates an unacceptable negative impact on surrounding land uses or environmental resources. The Director may order the dimming of light sources or other remediation upon finding that the site is excessively illuminated. 16. Prior to the issuance of a building permit, the applicant shall pay any unpaid administrative costs associated with the processing of this application to the Planning Division. 17. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 and other applicable noise control requirements of the Newport Beach Municipal Code. The maximum noise shall be limited to no more than depicted below for the specified time periods unless the ambient noise level is higher: Between the hours of 7:00AM and 10:00PM Between the hours of 10:00PM and 7:00AM Location Interior Exterior Interior Exterior Residential Property 45dBA 55dBA 40dBA 50dBA Residential Property located within 100 feet of a commercial property 45dBA 60dBA 45dBA 50dBA Mixed Use Property 45dBA 60dBA 45dBA 50dBA Commercial Property N/A 65dBA N/A 60dBA 18. Should the property be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by either the current business owner, property owner or the leasing agent. 19. Construction activities shall comply with Section 10.28.040 of the Newport Beach Municipal Code, which restricts hours of noise-generating construction activities that produce noise to between the hours of 7:00 a.m. and 6:30 p.m., Monday through Friday, and 8:00 a.m. and 6:00 p.m. on Saturday. Noise-generating construction activities are not allowed on Sundays or Holidays. 20. No outside paging system shall be utilized in conjunction with this establishment. 21. All trash shall be stored within the building or within dumpsters stored in the trash enclosure (three walls and a self-latching gate) or otherwise screened from view of neighboring properties, except when placed for pick-up by refuse collection agencies. The trash enclosure shall have a decorative solid roof for aesthetic and screening purposes. 22. Trash receptacles for patrons shall be conveniently located both inside and outside of the establishment, however, not located on or within any public property or right-of-way. 23. The exterior of the business shall be maintained free of litter and graffiti at all times. The owner or operator shall provide for daily removal of trash, litter debris and graffiti from the premises and on all abutting sidewalks within 20 feet of the premises. 59 Planning Commission Resolution No. PC2022-011 Page 36 of 72 24. The applicant shall ensure that the trash dumpsters and/or receptacles are maintained to control odors. This may include the provision of either fully self-contained dumpsters or periodic steam cleaning of the dumpsters, if deemed necessary by the Planning Division. Cleaning and maintenance of trash dumpsters shall be done in compliance with the provisions of Title 14, including all future amendments (including Water Quality related requirements). 25. Deliveries and refuse collection for the facility shall be prohibited between the hours of 10:00 p.m. and 7:00 a.m. on weekdays and Saturdays and between the hours of 10:00 p.m. and 9:00 a.m. on Sundays and Federal holidays, unless otherwise approved by the Director of Community Development, and may require an amendment to this Use Permit. 26. Storage outside of the building in the front or at the rear of the property shall be prohibited, with the exception of the required trash container enclosure. 27. A Special Events Permit is required for any event or promotional activity outside the normal operational characteristics of the approved use, as conditioned, or that would attract large crowds, involve the sale of alcoholic beverages, include any form of on-site media broadcast, or any other activities as specified in the Newport Beach Municipal Code to require such permits. 28. To the fullest extent permitted by law, applicant shall indemnify, defend and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney’s fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to City’s approval of The Ritz-Carlton Residences including, but not limited to, Environmental Impact Report Addendum No. 6 (ER2022-002), Major Site Development Review No. SD2021-005, Modification Permit No. 2022-001, Conditional Use Permit No. UP2021-053, Coastal Development Permit No. CD2021-077, and Vesting Tentative Tract Map No. NT2021-003 (PA2021-296). This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by applicant, City, and/or the parties initiating or bringing such proceeding. The applicant shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. The applicant shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this condition. Fire Department 29. The high-rise building shall be constructed with fire and life safety systems and construction features as required for high-rise buildings per applicable California fire and building codes as adopted by the City of Newport Beach. This includes but is not limited to the following systems: an automatic fire sprinkler system, a stand pipe system, fire 60 Planning Commission Resolution No. PC2022-011 Page 37 of 72 pump system, a fire alarm system, an emergency responder radio system, a 2-way communication system and a smoke control system. 30. A fire command center (fire control room) shall be constructed as part of the high-rise building. 31. A generator (gas or diesel only) shall be installed to provide emergency power for the high-rise building. 32. A fire master plan shall be submitted and approved prior to issuance of any grading or building permit. The fire master plan shall indicate fire department access for the high-rise building; however, the fire department access shall not include any turf block or other vegetative materials. 33. The developer/property owner shall record a reciprocal fire department access easement for both parcels proposed with the tentative map. The “event lawn” is considered part of the fire department access providing protection to both the existing hotel complex and the proposed high-rise building. Building Division 34. The applicant is required to obtain all applicable permits from the City’s Building Division and Fire Department. The construction plans must comply with the most recent, City- adopted version of the California Building Code. The construction plans must meet all applicable State Disabilities Access requirements. Approval from the Orange County Health Department is required prior to the issuance of a building permit. 35. The applicant shall employ the following best available control measures (“BACMs”) to reduce construction-related air quality impacts: Dust Control • Water all active construction areas at least twice daily. • Cover all haul trucks or maintain at least two feet of freeboard. • Pave or apply water four times daily to all unpaved parking or staging areas. • Sweep or wash any site access points within two hours of any visible dirt deposits on any public roadway. • Cover or water twice daily any on-site stockpiles of debris, dirt or other dusty material. • Suspend all operations on any unpaved surface if winds exceed 25 mph. Emissions • Require 90-day low-NOx tune-ups for off road equipment. • Limit allowable idling to 30 minutes for trucks and heavy equipment Off-Site Impacts • Encourage carpooling for construction workers. • Limit lane closures to off-peak travel periods. • Park construction vehicles off traveled roadways. • Wet down or cover dirt hauled off-site. 61 Planning Commission Resolution No. PC2022-011 Page 38 of 72 • Sweep access points daily. • Encourage receipt of materials during non-peak traffic hours. • Sandbag construction sites for erosion control. Fill Placement • The number and type of equipment for dirt pushing will be limited on any day to ensure that SCAQMD significance thresholds are not exceeded. • Maintain and utilize a continuous water application system during earth placement and compaction to achieve a 10 percent soil moisture content in the top six-inch surface layer, subject to review/discretion of the geotechnical engineer. 36. Prior to the issuance of a grading permit, a Storm Water Pollution Prevention Plan (SWPPP) and Notice of Intent (NOI) to comply with the General Permit for Construction Activities shall be prepared, submitted to the State Water Quality Control Board for approval and made part of the construction program. The project applicant will provide the City with a copy of the NOI and their application check as proof of filing with the State Water Quality Control Board. This plan will detail measures and practices that will be in effect during construction to minimize the project’s impact on water quality. 37. Prior to the issuance of a grading permit, the applicant shall prepare and submit a Water Quality Management Plan (WQMP) for the proposed project, subject to the approval of the Building Division and Code and Water Quality Enforcement Division. The WQMP shall provide appropriate Best Management Practices (BMPs) to ensure that no violations of water quality standards or waste discharge requirements occur. 38. A list of “good housekeeping” practices will be incorporated into the long-term post-construction operation of the site to minimize the likelihood that pollutants will be used, stored or spilled on the site that could impair water quality. These may include frequent parking area vacuum truck sweeping, removal of wastes or spills, limited use of harmful fertilizers or pesticides, and the diversion of storm water away from potential sources of pollution (e.g., trash receptacles and parking structures). The Stage 2 WQMP shall list and describe all structural and non-structural BMPs. In addition, the WQMP must also identify the entity responsible for the long-term inspection, maintenance, and funding for all structural (and if applicable Treatment Control) BMPs. Public Works Department 39. The Ritz-Carlton Residences and the VEA Newport Beach Resort and Spa shall implement City-approved parking management plan(s) that include a valet operations plan(s). The parking management plans, and valet operations plans, shall be reviewed and approved by both the Public Works and Community Development Departments prior to the issuance of certificated of occupancy. The parking management plans shall be in substantial conformance with the Ritz-Carlton Residences and the VEA Newport Beach Resort and Spa parking management plans, dated April 13, 2022. 40. Overhead utilities serving the site shall be undergrounded to the nearest appropriate pole in accordance with Section 19.24.140 of the Municipal Code. 62 Planning Commission Resolution No. PC2022-011 Page 39 of 72 41. County Sanitation District fees shall be paid prior to the issuance of any building permits. 42. Prior to the commencement of demolition and grading of the project, the applicant shall submit a construction management and delivery plan for the project to be reviewed and approved by the Public Works Department. The plan shall include a discussion of project phasing; parking arrangements for both the VEA Resort and Ritz-Carlton Residences sites during demolition and construction; anticipated haul routes and construction mitigation to ensure the orderly demolition and construction of the project. Parking arrangements shall address construction worker parking as well as all operations occurring at the VEA Resort during construction. Upon approval of the plan, the applicant and their contractors and employees shall be responsible for implementing and complying with the plan and all conditions set forth in the approved plan. Demolition permits shall be issued once project approvals are final provided said permits are deemed compliant with all applicable construction regulations and applicable conditions of approval. 43. Traffic control and truck route plans shall be reviewed and approved by the Public Works Department before their implementation. Large construction vehicles shall not be permitted to travel narrow streets as determined by the Public Works Department. Disruption caused by construction work along roadways and by movement of construction vehicles shall be minimized by proper use of traffic control equipment and flagman. 44. A Tract Map shall be recorded prior to the sale of any residential units. The Map shall be prepared on the California coordinate system (NAD83). Prior to recordation of the Map, the surveyor/engineer preparing the Map shall submit to the County Surveyor and the City of Newport Beach a digital-graphic file of said map in a manner described in Section 7-9-330 and 7-9-337 of the Orange County Subdivision Code and Orange County Subdivision Manual, Sub article 18. The Map to be submitted to the City of Newport Beach shall comply with the City’s CADD Standards. Scanned images will not be accepted. 45. Prior to recordation of the tract map, the surveyor/engineer preparing the map shall tie the boundary of the map into the Horizontal Control System established by the County Surveyor in a manner described in Section s 7-9-330 and 7-9-337 of the Orange County Subdivision Code and Orange County Subdivision Manual, Sub article 18. Monuments (one-inch iron pipe with tag) shall be set On Each Lot Corner unless otherwise approved by the Subdivision Engineer. Monuments shall be protected in place if installed prior to completion of construction project. 46. Prior to the recordation of the Tract Map, a Subdivision Agreement shall be obtained and approved by the City Council consistent with subdivision Code Section 19.36.010. 47. Prior to Final Map approval, the applicant shall provide a Faithful Performance Bond and a Labor and Materials Bond, each for 100 percent of the estimated improvement cost for improvements in the public right of way, as prepared by a Registered Civil Engineer 63 Planning Commission Resolution No. PC2022-011 Page 40 of 72 and approved by the Public Works Director, for each of the following, but not limited to, public and private improvements, street improvements, monumentation, sidewalks, striping, signage, street lights, sewer system, water system, storm drain system, water quality management system, erosion control, landscaping and irrigation within public right of way, common open spaces areas accessible by the public, fire access and off-site improvements required as part of the project. 48. Warranty bond for a minimum of 10 percent of the engineers cost estimate (final percentage to be determined by the Public Works Director) to be released 1-year after improvements have been accepted. 49. All improvements shall be constructed as required by Ordinance and the Public Works Department. 50. An encroachment permit is required for all work activities within the public right-of-way. 51. Reconstruct the existing broken and/or otherwise damaged concrete curb, gutter, sidewalk along the Newport Center Drive frontage per City Standard. 52. All improvements shall comply with the City’s sight distance requirement. See City Standard 110. 53. In case of damage done to public improvements surrounding the development site by the private construction, additional reconstruction within the public right-of-way could be required at the discretion of the Public Works Inspector. 54. Install a manhole per City Standard at the proposed sewer lateral within the sidewalk area along the Newport Center Drive frontage. 55. Parking layout and ramp slopes shall comply with City Standard 805. All dead-end drive aisle shall have a dedicated turn around space and 5-foot minimum drive aisle extension to accommodate vehicular maneuvering. 56. A temporary bus stop shall be provided throughout the duration of project construction. The location of the permanent post-construction bus stop shall be evaluated during construction and coordinated and approved by the Public Works Department prior to installation. 57. The ultimate dimensions of the landscape median at the center of the Ritz Carlton Residences project’s porte cochere shall be reevaluated prior to issue of building permits to ensure adequate vehicle circulation subject to the approval of the Public Works Department. 64 Planning Commission Resolution No. PC2022-011 Page 41 of 72 Exhibit “B” The 2006 General Update EIR (PEIR) Available separately due to bulk at: https://www.newportbeachca.gov/government/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 65 Planning Commission Resolution No. PC2022-011 Page 42 of 72 Exhibit “C” Addendum No. 1 (North Newport Center) Available separately due to bulk at: https://www.newportbeachca.gov/government/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 66 Planning Commission Resolution No. PC2022-011 Page 43 of 72 Exhibit “D” Addendum No. 2 (North Newport Center Planned Community Amendment) Available separately due to bulk at: https://www.newportbeachca.gov/government/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 67 Planning Commission Resolution No. PC2022-011 Page 44 of 72 Exhibit “E” Addendum No. 3 (Newport Airport Village – ER2020-002) Available separately due to bulk at: https://www.newportbeachca.gov/government/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 68 Planning Commission Resolution No. PC2022-011 Page 45 of 72 Exhibit “F” Addendum No. 4 (Residences at 4400 Von Karman – ER2020-003) Available separately due to bulk at: https://www.newportbeachca.gov/government/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 69 Planning Commission Resolution No. PC2022-011 Page 46 of 72 Exhibit “G” Addendum No. 5 (Residences at 1300 Bristol – ER2022-001) Available separately due to bulk at: https://www.newportbeachca.gov/government/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 70 Planning Commission Resolution No. PC2022-011 Page 47 of 72 Exhibit “H” Addendum No. 6 (Ritz-Carlton Residences – ER2022-002) Available separately due to bulk at: https://www.newportbeachca.gov/government/departments/community- development/planning-division/general-plan-codes-and-regulations/general-plan/general-plan-environmental-impact-repor 71 Planning Commission Resolution No. PC2022-011 Page 48 of 72 Exhibit “I” Newport Beach Municipal Code Section 21.48.025 Feasibility and Impact Analyses for The Ritz-Carlton Residences dated March 18, 2022 72 Planning Commission Resolution No. PC2022-011 Page 49 of 72 73 Planning Commission Resolution No. PC2022-011 Page 50 of 72 74 Planning Commission Resolution No. PC2022-011 Page 51 of 72 75 Planning Commission Resolution No. PC2022-011 Page 52 of 72 76 Planning Commission Resolution No. PC2022-011 Page 53 of 72 77 Planning Commission Resolution No. PC2022-011 Page 54 of 72 78 Planning Commission Resolution No. PC2022-011 Page 55 of 72 79 Planning Commission Resolution No. PC2022-011 Page 56 of 72 80 Planning Commission Resolution No. PC2022-011 Page 57 of 72 81 Planning Commission Resolution No. PC2022-011 Page 58 of 72 82 Planning Commission Resolution No. PC2022-011 Page 59 of 72 83 Planning Commission Resolution No. PC2022-011 Page 60 of 72 84 Planning Commission Resolution No. PC2022-011 Page 61 of 72 Exhibit J Transient Occupancy Taxes (TOT) Analysis Consistent with Newport Beach City Council Policy K-4 for Conversion of Hotel Rooms to Hotel-Branded Residences dated March 18, 2022 85 Planning Commission Resolution No. PC2022-011 Page 62 of 72 86 Planning Commission Resolution No. PC2022-011 Page 63 of 72 87 Planning Commission Resolution No. PC2022-011 Page 64 of 72 88 Planning Commission Resolution No. PC2022-011 Page 65 of 72 89 Planning Commission Resolution No. PC2022-011 Page 66 of 72 90 Planning Commission Resolution No. PC2022-011 Page 67 of 72 91 Planning Commission Resolution No. PC2022-011 Page 68 of 72 92 Planning Commission Resolution No. PC2022-011 Page 69 of 72 93 Planning Commission Resolution No. PC2022-011 Page 70 of 72 94 Planning Commission Resolution No. PC2022-011 Page 71 of 72 95 Planning Commission Resolution No. PC2022-011 Page 72 of 72 96 Attachment No. PC 2 CEQA Addendum 97 INTENTIONALLY BLANK PAGE98 Attachment No. PC 3 Relevant Materials/Studies 99 INTENTIONALLY BLANK PAGE100 Maurice Robinson & Associates LLC 28 Dover Place Manhattan Beach., CA 90266 March 18, 2022 Mr. Kevin Martin Vice President, Development Newport Center Hotel, LLC 4901 Birch Street Newport Beach, CA 92660 Subject: Transient Occupancy Taxes (TOT) Analysis Consistent with Newport Beach City Council Policy K-4 for Conversion of Hotel Rooms to Hotel-Branded Residences Dear Mr. Martin: Maurice Robinson & Associates LLC (“MR&A”) has prepared this TOT analysis for Newport Center Hotel, LLC (“Client”) with respect to your proposed project in Newport Beach, CA (the “Project”). The Project would involve the reduction of 159 existing hotel rooms at the VEA Newport Beach, A Marriott Resort and Spa (the “Hotel”), and the construction of 159 Ritz-Carlton Residences. Client proposes to replace 159 hotel rooms with the same number of hotel-branded residences, which would reduce the number of hotel rooms on the property from 532 to 373. City Council Policy K-4, Reducing the Barriers to the Creation of Housing, requires a fiscal impact analysis to disclose and mitigate any reduction in TOT due to the conversion of hotel rooms to residences. This analysis has been prepared consistent with Policy K-4. The reduction in hotel rooms would affect TOT receipts to the City of Newport Beach. The reduction in TOT due to the replacement of 159 hotel rooms with hotel-branded residences would be fully mitigated, however, because the 373 remaining hotel rooms would be significantly upgraded from their current condition, and each upgraded room is expected to rent for a higher room rate – and thus, coupled with a reduction in hotel supply, would collectively generate higher TOT- than would the existing unrenovated rooms. The following analysis concludes that the projected TOT and property taxes to be generated by the Project would, together, result in a net increase in revenue for the City of Newport Beach. It is important to note that this analysis does not consider the anticipated increase in sales taxes generated by the property’s food and beverage operations as a result of the Project. It also does not account for the additional retail food and beverage sales in the area surrounding the property as a result of the project, which would be expected to have a positive economic benefit for the City. If you have any questions, please do not hesitate to call us at 310-640-9656 or email us at Maurice@MauriceRobinson.com. My CV is attached at the end of this report. Sincerely, R. Maurice Robinson, ISHC President 101 1 | Page Transient Occupancy Tax (TOT) Analysis Consistent with City Council Policy K-4, Reducing the Barriers to the Creation of Housing We have prepared an analysis of the potential future TOT from the Hotel under three scenarios: Scenario 1: The Proposed Project, with 373 upgraded rooms (and 159 hotel-branded residences); Scenario 2: No Project, with 532 unrenovated rooms (and no residential units); and Scenario 3: The Hybrid Hotel Project, with 373 upgraded rooms and 159 unrenovated rooms for a total of 532 rooms (and no hotel-branded residences). Summary of Findings: The table below summarizes the projected TOT only for each Scenario for the next twenty years: As shown in the following table, combining the projected TOT and property taxes generated for the City of Newport by the Project under each Scenario results in the following estimates of City tax receipts over the next twenty years: Year Scenario 1 Scenario 2 Scenario 3 2022 2,130,503$ 3,093,560$ 3,055,082$ 2023 3,328,113$ 3,333,381$ 4,324,368$ 2024 3,564,769$ 3,476,945$ 4,603,931$ 2025 3,730,373$ 3,595,476$ 4,804,961$ 2026 3,842,284$ 3,703,341$ 4,949,110$ 2027 3,957,553$ 3,814,441$ 5,097,583$ 2028 4,076,279$ 3,928,874$ 5,250,510$ 2029 4,198,568$ 4,046,740$ 5,408,026$ 2030 4,324,525$ 4,168,143$ 5,570,267$ 2031 4,454,260$ 4,293,187$ 5,737,375$ 2032 4,587,888$ 4,421,982$ 5,909,496$ 2033 4,725,525$ 4,554,642$ 6,086,781$ 2034 4,867,291$ 4,691,281$ 6,269,384$ 2035 5,013,309$ 4,832,020$ 6,457,466$ 2036 5,163,709$ 4,976,980$ 6,651,190$ 2037 5,318,620$ 5,126,290$ 6,850,725$ 2038 5,478,179$ 5,280,078$ 7,056,247$ 2039 5,642,524$ 5,438,481$ 7,267,934$ 2040 5,811,800$ 5,601,635$ 7,485,972$ 2041 5,986,154$ 5,769,684$ 7,710,552$ 20-yr total 90,202,225$ 88,147,162$ 116,546,960$ 1. Applied STR recovery projections for US Hotels for 2022 through 2025; then 3% inflation through 2041. Twenty-Year TOT projections (1) 102 2 | Page In summary, the inclusion of property taxes in the analysis would result in Scenario 1’s projected City tax receipts exceeding those of Scenario 2 (the No Project) by almost $38 million (~38%), and Scenario 3 (the Hybrid Hotel Project) by almost $8 million, or ~6%. Methodology and Sources of Data We started with the Hotel’s most recent four years of historical performance, when it was operated as the Newport Beach Marriott Hotel and Spa. 2018 and 2019 were the peak years in the previous economic cycle, while 2020 and 2021 were negatively impacted by Covid-19. Additionally, the Hotel’s 2021 performance was further impacted by an ongoing renovation at the Hotel. The table below summarizes the actual historical annual occupancy levels, ADRs1, RevPars2, total room revenues, and TOT realized/generated by the Hotel from 2018 through 2021: 1 ADR = Average Daily Room rate. 2 RevPar = Room Revenue Per Available Room; also, daily occupancy rate times ADR. Year Scenario 1 Scenario 2 Scenario 3 2022 2,531,847$ 3,523,529$ 3,556,034$ 2023 4,051,334$ 3,771,949$ 4,835,339$ 2024 4,610,028$ 3,924,284$ 5,125,121$ 2025 5,097,832$ 4,051,762$ 5,336,574$ 2026 5,465,578$ 4,168,752$ 5,491,356$ 2027 5,998,798$ 4,289,161$ 5,650,674$ 2028 6,422,092$ 4,413,088$ 5,814,663$ 2029 6,696,051$ 4,540,639$ 5,983,461$ 2030 6,871,957$ 4,671,919$ 6,157,211$ 2031 7,052,642$ 4,807,039$ 6,336,058$ 2032 7,238,237$ 4,946,111$ 6,520,153$ 2033 7,428,881$ 5,089,254$ 6,709,651$ 2034 7,624,714$ 5,236,585$ 6,904,712$ 2035 7,825,881$ 5,388,230$ 7,105,500$ 2036 8,032,531$ 5,544,314$ 7,312,184$ 2037 8,244,819$ 5,704,970$ 7,524,940$ 2038 8,462,902$ 5,870,333$ 7,743,946$ 2039 8,686,942$ 6,040,540$ 7,969,387$ 2040 8,917,106$ 6,215,736$ 8,201,454$ 2041 9,153,566$ 6,396,067$ 8,440,343$ 20-year total 136,413,736$ 98,594,261$ 128,718,761$ 20-year total of TOT + Property Taxes for the City 103 3 | Page For the projected TOT for Scenario 1 (the Proposed Project), we reviewed Marriott’s proforma for the proposed Project, and accepted their projections, on a per-room basis.3 In Scenario 1, the upgraded rooms are forecast to achieve ADRs that are 47% more than would the unrenovated rooms, which translates into an increase of approximately $100 per night by 2023. The table below summarizes the proposed Project’s forecast occupancy levels, ADRs, RevPars, total room revenues, and TOT by year for 2022 through 2025: For the forecast TOT for Scenario 2 (the No Project Alternative), we obtained the current forecast by STR for the U.S. hotel market’s recovery, using 2019 performance levels as the base Again, 2019 was used as the base year due to the anomalous impacts on the lodging market and the Hotel in the years 2020 and 2021. As an example, room revenues per available hotel room (RevPar) are expected to reach 99% of 2019 levels in 2022; 107% of 2019 levels in 2023; 112% in 2024; and 116% in 2025. The table below summarizes the STR US Hotel Recovery Forecast, as of January, 2022: 3 The Marriott proforma assumed a 400-room upgraded hotel at the completion of the renovation, and the current estimate is 373 rooms. Since this analysis is based on 373 rooms, we used a pro-rata share of the Marriott proforma. Year # of rooms Occ ADR RevPar Room Revenues TOT @ 10% 2018 532 80.7%198.76$ 160.40$ 31,145,978$ 3,114,598$ 2019 532 78.9%203.11$ 160.25$ 31,126,378$ 3,112,638$ 2020 532 29.0%186.23$ 54.01$ 10,531,213$ 1,053,121$ 2021 532 33.0%196.85$ 64.96$ 12,606,113$ 1,260,611$ Source: Marriott annual P&Ls Historical Performance of the Newport Beach Marriott Hotel (2018 - 2021) Year # of rooms Occ ADR RevPar Room Revenues TOT @ 10% 2022 373 55.5%281.96$ 156.49$ 21,305,032$ 2,130,503$ 2023 373 76.6%319.13$ 244.45$ 33,281,133$ 3,328,113$ 2024 373 79.6%328.94$ 261.84$ 35,647,695$ 3,564,769$ 2025 373 80.8%339.11$ 274.00$ 37,303,730$ 3,730,373$ Source: Marriott budget & proformas Scenario 1: 373 upgraded rooms (The Project) Year Occ ADR RevPar Occ ADR RevPar 2019 65.9% 131.30$ 86.53$ 100% 100% 100% 2020 41.8% 130.90$ 54.74$ 63% 100% 63% 2021 57.6% 125.00$ 72.00$ 87% 95% 83% 2022 63.8% 134.00$ 86.00$ 97% 103% 99% 2023 66.1% 140.00$ 92.00$ 100% 107% 107% 2024 66.8% 145.00$ 97.00$ 101% 110% 112% 2025 67.1% 149.03$ 99.94$ 102% 114% 116% Source: STR 1/2022 forecast for US Hotel Market recovery Summary of STR US Hotel Recovery Forecast 1/2022 as a % of 2019 levels 104 4 | Page We applied these forecasted recovery factors to the actual 2019 performance levels achieved by the existing Hotel to generate estimates of how the unrenovated hotel would perform in 2022 through 2025, if no renovations were undertaken. The table below summarizes the unrenovated hotel’s forecasted performance, and its resulting TOT receipts, for these years: For the forecasted TOT under Scenario 3 (the Hybrid Hotel Project), we used the forecasted performance levels under Scenario 1 above, which reflects 373 upgraded rooms added to Scenario 2’s forecasted performance for the remaining 159 unrenovated rooms, to forecast room revenues under the hypothetical 532-room Scenario 3, as shown in the table below: In summary, Scenario 1 (the Proposed Project) is forecast to generate slightly more TOT than Scenario 2 (the No Project Alternative) over the next twenty years, while Scenario 3 (the Hybrid Hotel Project) would generate approximately 30% more TOT than either of the other two Scenarios during this period, as shown in the table below. Year # of rooms Occ ADR RevPar Room Revenues TOT @ 10% 2022 532 76.4%208.59$ 159.31$ 30,935,605$ 3,093,560$ 2023 532 79.1%216.92$ 171.66$ 33,333,813$ 3,333,381$ 2024 532 79.9%224.03$ 179.06$ 34,769,445$ 3,476,945$ 2025 532 80.3%230.53$ 185.16$ 35,954,764$ 3,595,476$ Source: Growth rates from STR forecast applied to 2019 actuals Scenario 2: 532 unrenovated rooms (No Project) Year # of rooms Occ ADR RevPar Room Revenues TOT @ 10% 2022 532 61.7%254.83$ 157.33$ 30,550,823$ 3,055,082$ 2023 532 77.4%287.88$ 222.70$ 43,243,682$ 4,324,368$ 2024 532 79.7%297.50$ 237.10$ 46,039,315$ 4,603,931$ 2025 532 80.7%306.79$ 247.45$ 48,049,609$ 4,804,961$ Source: MR&A calculations based on blended Scenarios Scenario 3: 373 upgraded rooms & 159 unrenovated rooms (Hybrid Hotel Project) 105 5 | Page Comparison of Scenarios With the Addition of Property Taxes Although not required as part of the TOT comparison analysis, it is clear that the City would receive additional tax revenues from Scenario 1 that would not accrue under Scenarios 2 and 3, specifically an increase of about $2 million per year in property taxes once the sell-out of the 159 hotel-branded residences under Scenario 1 is projected to be completed. We have prepared an analysis of the property taxes that would be expected to accrue to the City for each of the Scenarios, assuming the sale of the residences during the 2026 through 2029 period. Property taxes in Orange County are estimated at 1.05% of the sales price of each residence, and the City receives approximately 17.15% of the property taxes paid each year to the County. The sales of the proposed 159 hotel-branded residences under Scenario 1 are projected to occur during the years 2026 through 2029, and once sold, would generate an estimated approximately $10.5 million of property taxes for the County, with approximately $1.8 million (17.15%) of those monies flowing directly to the City of Newport Beach’s general fund. There would be no such additional property taxes generated under Scenarios 2 or 3. Year Scenario 1 Scenario 2 Scenario 3 2022 2,130,503$ 3,093,560$ 3,055,082$ 2023 3,328,113$ 3,333,381$ 4,324,368$ 2024 3,564,769$ 3,476,945$ 4,603,931$ 2025 3,730,373$ 3,595,476$ 4,804,961$ 2026 3,842,284$ 3,703,341$ 4,949,110$ 2027 3,957,553$ 3,814,441$ 5,097,583$ 2028 4,076,279$ 3,928,874$ 5,250,510$ 2029 4,198,568$ 4,046,740$ 5,408,026$ 2030 4,324,525$ 4,168,143$ 5,570,267$ 2031 4,454,260$ 4,293,187$ 5,737,375$ 2032 4,587,888$ 4,421,982$ 5,909,496$ 2033 4,725,525$ 4,554,642$ 6,086,781$ 2034 4,867,291$ 4,691,281$ 6,269,384$ 2035 5,013,309$ 4,832,020$ 6,457,466$ 2036 5,163,709$ 4,976,980$ 6,651,190$ 2037 5,318,620$ 5,126,290$ 6,850,725$ 2038 5,478,179$ 5,280,078$ 7,056,247$ 2039 5,642,524$ 5,438,481$ 7,267,934$ 2040 5,811,800$ 5,601,635$ 7,485,972$ 2041 5,986,154$ 5,769,684$ 7,710,552$ 20-yr total 90,202,225$ 88,147,162$ 116,546,960$ 1. Applied STR recovery projections for US Hotels for 2022 through 2025; then 3% inflation through 2041. Twenty-Year TOT projections (1) 106 6 | Page Thus, for the twenty-year projection period, the Project would be expected to generate well over $30 million more in property taxes for the City than either of the other Scenarios, as shown in the table below: Combining the projected TOT and the property taxes for each Scenario would, correspondingly, be expected to result in the following amounts of these tax receipts for the City of Newport Beach for the next twenty years, as shown in the following table: Year Scenario 1 Scenario 2 Scenario 3 2022 401,344$ 429,968$ 500,951$ 2023 723,221$ 438,568$ 510,970$ 2024 1,045,258$ 447,339$ 521,190$ 2025 1,367,459$ 456,286$ 531,614$ 2026 1,623,294$ 465,412$ 542,246$ 2027 2,041,246$ 474,720$ 553,091$ 2028 2,345,812$ 484,214$ 564,153$ 2029 2,497,483$ 493,898$ 575,436$ 2030 2,547,432$ 503,776$ 586,944$ 2031 2,598,381$ 513,852$ 598,683$ 2032 2,650,349$ 524,129$ 610,657$ 2033 2,703,356$ 534,612$ 622,870$ 2034 2,757,423$ 545,304$ 635,327$ 2035 2,812,571$ 556,210$ 648,034$ 2036 2,868,823$ 567,334$ 660,995$ 2037 2,926,199$ 578,681$ 674,215$ 2038 2,984,723$ 590,254$ 687,699$ 2039 3,044,418$ 602,059$ 701,453$ 2040 3,105,306$ 614,101$ 715,482$ 2041 3,167,412$ 626,383$ 729,792$ 20-yr total 46,211,510$ 10,447,099$ 12,171,801$ Twenty-Year Newport Beach Prop Tax Projections 107 7 | Page The total tax receipts to the City would be greatest in Scenario 3 for the early years, but because the property taxes associated with the residences would reset with each sale of a residential unit, eventually the total taxes generated by Scenario 1 would overtake those of Scenario 3. In this instance, the lines cross in 2027, after which the projected annual taxes generated by the Project under Scenario 1 exceed those of Scenario 3. In summary, the inclusion of property taxes in the analysis would result in Scenario 1’s projected City tax receipts exceeding those of Scenario 2 by almost $38 million (~38%), and Scenario 3 by almost $8 million, or~6%. Additional tables showing the assumptions and calculations for our analysis are presented in the Excel workbook entitled “MRA model NB Ritz-Carlton 3.18.22”. Year Scenario 1 Scenario 2 Scenario 3 2022 2,531,847$ 3,523,529$ 3,556,034$ 2023 4,051,334$ 3,771,949$ 4,835,339$ 2024 4,610,028$ 3,924,284$ 5,125,121$ 2025 5,097,832$ 4,051,762$ 5,336,574$ 2026 5,465,578$ 4,168,752$ 5,491,356$ 2027 5,998,798$ 4,289,161$ 5,650,674$ 2028 6,422,092$ 4,413,088$ 5,814,663$ 2029 6,696,051$ 4,540,639$ 5,983,461$ 2030 6,871,957$ 4,671,919$ 6,157,211$ 2031 7,052,642$ 4,807,039$ 6,336,058$ 2032 7,238,237$ 4,946,111$ 6,520,153$ 2033 7,428,881$ 5,089,254$ 6,709,651$ 2034 7,624,714$ 5,236,585$ 6,904,712$ 2035 7,825,881$ 5,388,230$ 7,105,500$ 2036 8,032,531$ 5,544,314$ 7,312,184$ 2037 8,244,819$ 5,704,970$ 7,524,940$ 2038 8,462,902$ 5,870,333$ 7,743,946$ 2039 8,686,942$ 6,040,540$ 7,969,387$ 2040 8,917,106$ 6,215,736$ 8,201,454$ 2041 9,153,566$ 6,396,067$ 8,440,343$ 20-year total 136,413,736$ 98,594,261$ 128,718,761$ 20-year total of TOT + Property Taxes for the City 108 8 | Page Statement of Qualifications R. Maurice Robinson, ISHC Mr. Robinson has over 40 years of experience as a consultant in the real estate and hospitality development industry. He is an expert in the field of facilitating full-service hotel development, ground leases, concession contracts, market and financial feasibility analysis, fiscal and economic benefit studies, structuring public subsidies for new hotel development, and public/private development partnerships. He specializes in public sector counseling, and typically assists California and Federal agencies in: • facilitating hotel, commercial and residential development on public properties • structuring hospitality development deals using public financing vehicles • negotiating ground and building leases for new hospitality developments • identifying and soliciting hospitality brands, operators, and developers • Performing economic feasibility and fiscal impact studies for hotel projects • valuing private investment on public lands • providing expert witness testimony in disputes; and • analyzing and structuring development and management agreements. A partial list of his public-sector clients in California follows: • Alameda • California Coastal Commission • Cathedral City • Crescent City • Del Mar • Department of State Parks and Recreation • Escondido • Fresno • Glendale • Golden Gate Bridge District • Healdsburg • Inglewood • Laguna Beach • Long Beach • Los Angeles, Community Redevelopment Agency • Los Angeles, Department of Airports • Los Angeles, Department of City Planning • Los Angeles, Grand Ave JPA • Manhattan Beach • Metropolitan Water District • Monterey County • Mountain View 109 9 | Page • Napa • National Park Service • Oceanside • Orange County • Palm Desert • Poway • Richmond • Riverside • Riverside County Transportation Commission • San Diego City • San Diego County • San Diego Metropolitan Transit System • San Diego Unified Port District • San Jose, Redevelopment Agency • San Mateo County • San Mateo County Harbor District • Santa Clara Valley Transportation Authority • Santa Monica • Solano County • South Coast Air Quality Management District • Southern California Association of Governments • U.S. Department of Justice • West Sacramento Public clients and the hotels that have been developed, or are now being developed: • City of San Diego’s 170-room 5-diamond Lodge at Torrey Pines • City of Manhattan Beach’s 400-room Westdrift Autograph Hotel and Golf Course • City of San Jose’s downtown 506-room Marriott Hotel • City of Beverly Hills’s 201-room Montage Hotel & 25 Branded Residences • City of Laguna Beach’s 258-room Montage Resort and 27 Branded Residences • National Park Service’s 252-room Argonaut Hotel in San Francisco (conversion of the historic Haslett Warehouse on Fisherman’s Wharf) • National Park Service’s 142-room Lodge at Cavallo Point in Golden Gate Park (conversion of the historic Fort Baker Army post near Sausalito). • City of San Diego’s Liberty Station 200-room Courtyard and 150-unit Homewood Suites (conversion of the ex-Naval Training Center adjacent to the airport) • Port of San Diego’s 253-room Springhill Suites and 147-unit Residence Inn • Port of San Diego’s 400-room InterContinental Hotel • City of Mountain View’s 255-room Ameswell Hotel • City of Oceanside’s 161-room Mission Pacific hotel and 226-room Seabird hotel • City of Mountain View’s proposed 180-room Joie de Vivre hotel (to be developed) 110 10 | Page • City of Santa Monica’s Fairmont Miramar Hotel and 60 Branded Residences (to be redeveloped) Affiliations: Mr. Robinson is a member of the prestigious International Society of Hospitality Consultants (ISHC), where he served for nine years on the Board of Directors and as Chairman of the Professional Conduct Committee. Other professional memberships include the American Society of Appraisers (ASA), and the Forensic Expert Witness Association (FEWA). He is also a member of the Board of Arbitrators for the Financial Industry National Regulatory Authority (FINRA). Background: Mr. Robinson is President of Maurice Robinson & Associates LLC, providing advisory services to investors and developers in the Hospitality and Real Estate industries. Prior to founding his current firm in 1999, he was a Principal with KPMG Peat Marwick LLP, leading their western region Hospitality and Real Estate consulting practice for twelve years (1986-1998). Prior to KPMG, he was a Senior Consultant and Manager in the real estate and hospitality consulting practice of Pannell Kerr Forster (now PKF Consulting) for five years (1982-1986). His previous work experience also includes three years as Senior Economist with the real estate consulting firm of Williams- Kuebelbeck and Associates (1979-1982), and a year as an independent consultant (1978). Education: Mr. Robinson holds a General Real Estate Appraisal certificate from the State of California; a Master of Public Administration degree from the University of Southern California; a Bachelor of Arts degree in economics from Macalester College in St. Paul, Minnesota; a certificate of environmental management with a specialty in public/private partnerships from the Environmental Management Institute in Los Angeles; and a professional designation in financial planning from UCLA. Speeches, Teaching and Writing: Mr. Robinson is a frequent lecturer, having spoken more than two dozen times at various real estate and hospitality industry-related seminars and conferences across the United States, and was an annual guest lecturer at the UC Berkeley MBA program. He is the author of numerous articles, book chapters, and was the editor of KPMG’s Hospitality Update newsletter. He has co-authored an article entitled “How to Value Commercial Improvements in a National Park” in the Winter 2000/Spring 2001 edition of Real Estate Issues; a chapter entitled “Alternative Dispute Resolution in the Hospitality Industry” in the textbook Hotel Investments: Issues and Perspectives, 4th edition (2006); a chapter entitled “Converting Existing Historic Buildings into Hotels” in the textbook Hotel Sustainable Development: Principals and Best Practices, 1st edition (2011); and an article entitled “Issue Review Boards™ – The Next Wave of Alternative Dispute Resolution for the Hospitality Industry”. Awards: Mr. Robinson received the coveted James Felt Creative Counselor Award from his peers in the real estate counseling community for his ground-breaking work appraising the Grand Canyon for the National Park Service. He is also the recipient of the Member of the Year award by his peers in the ISHC for his efforts in establishing an Alternative Dispute Resolution training program. In 2016, he facilitated the acquisition by the NPS of the final parcel of land to complete the 67-mile Backbone Trail in the Santa Monica Mountains. Contact info: 28 Dover Place, Manhattan Beach, CA 90266. Tel: 310-640-9656. Fax: 310-640- 9276. Cell: 310-713-3220. E-mail: Maurice@MauriceRobinson.com; Web site: www.MauriceRobinson.com. 111 INTENTIONALLY BLANK PAGE112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 INTENTIONALLY BLANK PAGE134 135 136 137 1 Maurice Robinson & Associates LLC 28 Dover Place Manhattan Beach., CA 90266 March 18, 2022 Mr. Kevin Martin Vice President, Development Newport Center Hotel. LLC 4901 Birch Street Newport Beach, CA 92660 Re: Newport Beach Municipal Code Section 21.48.025 Feasibility and Impact Analyses for The Ritz-Carlton Residences Dear Mr. Martin: Maurice Robinson & Associates LLC (“MR&A”) has prepared a Feasibility and Impact Analysis for Newport Center Hotel, LLC (“Client”) with respect to its proposed development and sale of up to 159 hotel branded residences at 900 Newport Center Drive (“Project”). In this report, we present our findings of the two requested analyses, as follows: 1) The feasibility of the Project to include lower-cost visitor accommodations; and 2) The impact of the Project on the existing lower-cost visitor accommodations in the City of Newport Beach (“City”). The following analyses conclude that it is not feasible to provide lower-cost visitor accommodations as part of the Project, and the Project would not impact the availability of lower- cost visitor accommodations in the City. If you have any questions, please do not hesitate to call us at 310-640-9656 or email us at Maurice@MauriceRobinson.com. My CV is attached at the end of this report. Sincerely, R. Maurice Robinson, ISHC President 138 2 I. Feasibility Analysis Newport Beach Municipal Code (“NBMC”) Section 21.48.025(C)(2) requires “an analysis of the feasibility of providing lower-cost visitor accommodations…for any application involving the…conversion…of…visitor accommodations.” This analysis is required regardless of whether the accommodations to be converted are “lower-cost.” The Project proposes to convert up to 159 high-cost visitor accommodations into hotel-branded residences. Thus, the NBMC requires the preparation of this feasibility analysis, at the Client’s expense, to determine if the Project could provide lower-cost visitor accommodations on the Project site. As explained below, it is not feasible to include lower-cost visitor accommodations on the Project site. This infeasibility is due to the site’s high land value, the Project’s high development costs, the lack of annual operating revenue given the type of for-sale product created by the Project, and other constraints related to the Ritz-Carlton brand. Summary of Findings Location The Project is located on a 2.775-acre development footprint at 900 Newport Center Drive within Newport Center (see map below). Newport Center is a mixed-use area of the City that is home to Fashion Island, commercial office developments, residential developments, and the Newport Beach Country Club. The location of the property makes it an inappropriate designation for lower- cost accommodations. The property is within the urban nucleus of Newport Center, which is on the inland side of Pacific Coast Highway, and does not allow for suitable access to public coastal recreational resources or amenities. The property’s location is not suitable for lower-cost accommodations to encourage coastal access. Land Value Land in Newport Beach is extremely valuable, and Newport Center is known to have some of the most expensive real estate in the entire City. Land in Newport Center can typically trade for $20,000,000 per acre, as supported by the purchase of the Newport Beach Marriott in 2020. This high land value acquisition cost renders the property financially impractical and unsuitable for 139 3 lower-cost visitor accommodations. Additionally, given the relatively small size of the project, there is no physical area to construct lower-cost visitor accommodations at the Project site. High Development Costs The estimated construction costs for the Project are nearly $1,200 per square foot. Additionally, the project is burdened by nearly $400,000 per branded residence in design, financing and permitting costs. Assuming 65% debt financing; 4 more years of design and construction costs; and nearly 3 years of sales; the overall leveraged internal rate of return (“IRR”) of the Project is projected at 20.0%. Inclusion of lowercost visitor accommodations would reduce the IRR to a level that would dissuade investors from investing in the Project, and would ultimately have the effect of preventing the Project from being developed. Lack of Annual Operating Income The Project is developing up to 159 hotel-branded residences. The Project does not include the development of visitor accommodations. As a consequence, the Project will not generate any annual operating income that could be used to develop, operate, or service lower-cost visitor accommodations. Therefore, the lack of annual operating income further renders the Project infeasible for lower-cost visitor accommodations. Ritz-Carlton Brand The contract with Ritz-Carlton to brand and service the Project does not allow for the on-site operation of lower-cost visitor accommodations. The Ritz-Carlton brand is dependent on our Client’s ability to provide operational exclusivity on the proposed 2.775-acre property. Ritz- Carlton does not operate any lower-cost accommodations, and by including them on-site, the Client will be unable to adhere to the terms of their agreement with Ritz-Carlton. Without the Ritz-Carlton brand, the sales prices of the hotel-branded residential units would be severely reduced. The pricing premium generated by a luxury hotel brand is typically 25% or more, compared to comparably located and finished non-branded residential product. The RCLCO market analysis dated 12/14/2020 concluded the premium was 35% for the Ritz-Carlton residences studied.1 Without Ritz-Carlton and its associated premium pricing, the Project’s ability to be financed would suffer, resulting in a reduction of the amount of debt that could be sourced, and an offsetting requirement for additional, higher-cost equity. It would also be much more difficult to attract a lender for the Project if there were lower-cost visitor accommodations at the property. Thus, it is infeasible to include lower-cost visitor accommodations, because their inclusion would effectively terminate the Project. 1 See “Market Analysis and Strategic Development Recommendations, Proposed Hotel-Branded Condominiums, Newport Beach, California”, dated 12/12/2020, by RCLCO, pages 21 and 64. 140 4 Methodology and Assumptions This section, along with the tables in our model2, discusses the key assumptions used in our analysis of both scenarios, and the results of the analyses. The Project as proposed is depicted in the architectural renderings document prepared by MVE + Partners, dated 1/21/20223. The proposed 22-story tower would contain 421,973 gross square feet of space, excluding 5 levels of underground parking. The up to 159 residences would be located on floors 2 through 22, and contain a total of 341,766 square feet of saleable residential space. The hotel rooms would be considered “lower-cost” rooms, per the definition of the California Coastal Commission and the definition provided in NBMC Section 21.48.025(C)(1)(a), and their average daily rental rate (“ADR”) would be limited to $135 (stated in 2021 dollars), plus inflation. For the duration of the projections, inflation has been assumed to average 3% per year for development and operating costs, as well as for the pricing of the residences. The price per square foot for the sale of the residential units with the Ritz-Carlton branding has been estimated to be $2,500 per square foot, stated in 2021 dollars. This was derived from both actual sales and current listings of several hotel-branded residential projects in Southern California, and supported by an RCLCO market analysis dated 12/14/20204. The Project development budget and timetable were prepared by the Client and seem reasonable. The absorption period for the sale of the residential units is projected to be 20 units pre-sold, then 4 units per month until sold. The proposed capital stack, interest rates, cap rates, and the various costs and fees are our estimates, and are based on our observations of the current real estate development and investment environment. The hotel occupancy levels and operating ratios are our estimates, based upon our understanding of lower-cost visitor accommodation operating metrics and our professional judgment as to how such an operation would fit into the proposed Project, within the context of the Orange County hotel market. 2 See Excel Workbook entitled “MRA model Newport Beach Ritz”. 3 See “The Ritz-Carlton Residences, Newport Beach, Site Development Review”, dated 1/21/2022. 4 See “Market Analysis and Strategic Development Recommendations, Proposed Hotel-Branded Condominiums, Newport Beach, California”, dated 12/12/2020, by RCLCO, pages 9 and 32. 141 5 II. Impact Analysis NBMC Section 21.48.025(C)(3)(a) provides that “an analysis of a development’s impact on the availability of lower-cost visitor accommodations in the City shall be required for any application involving…the…conversion…of…visitor accommodations….” The Project proposes to convert up to 159 high-cost visitor accommodations into hotel-branded residences. There have never been lower-cost visitor accommodations at the Project site. Thus, the NBMC requires the preparation of this impact analysis, at the Client’s expense, to determine if the Project impacts the availability of lower-cost visitor accommodations in the City. As explained below, this Project does not impact the City’s existing lower-cost visitor accommodations. The number of lower-cost visitor accommodations in the City will remain the same, and both the supply and demand for them will be unchanged by this Project. Summary of Findings Existing Supply of Visitor Accommodations There are a variety of visitor accommodations within the City, as depicted on the table below. The majority of hotels within the City are located in the Coastal Zone. These hotels offer a range of costs from economy class to luxury class, as further detailed below. # Hotel Name Address Cost Coastal Zone 1 Balboa Bay Resort 1221 W Coast Hwy $579 X 2 Balboa Inn 105 Main St $299 X 3 Bay Shores Peninsula 1800 W Newport Blvd $399 X 4 Bayview Marriott 500 Bayview Circle $389 X 5 Dorymans 2102 West Oceanfront $499 X 6 Extended Stay America Suites 4881 Birch St $128 7 Holiday Inn Express 2300 W Coast Hwy $256 X 8 Hyatt JWA 4545 MacArthur Blvd $167 9 Hyatt Newport Beach 1107 Jamboree Rd $332 X 10 Lido House 3300 Newport Blvd $769 X 11 Little Inn by the Bay 2627 Newport Blvd $250 X 12 Marriott Newport Coast Villas 23000 Newport Coast Dr. $549 X 13 Newport Beach Hotel 2306 W Oceanfront $313 X 14 VEA Newport Beach Marriott 900 Newport Center Dr $319 X 15 Newport Channel Inn 6030 W Coast Hwy $259 X 16 Pelican Hill 22701 Pelican Hill Rd South $1,625 X 17 Renaissance Newport Beach 4500 MacArthur $161 18 Sonder Solarena 6208 W Coast Hwy $201 X Source: Booking.com, March 17, 2021 142 6 143 7 Existing Supply of Lower-Cost Visitor Accommodations NBMC Section 21.48.025(C)(1)(a) defines lower-cost visitor accommodations as the “average daily room rate for all economy hotels and motels in the City that have room rates that are below the Statewide average daily room rate or lower. Economy hotels and motels are AAA-rated one or two diamond hotels, or equivalent.” Based upon our research, the City only has one lower-cost visitor accommodation facility, the 164-room Extended Stay America motel, located at 4881 Birch Street. As depicted below, this motel is located adjacent to John Wayne Airport and is sandwiched between the 405 and 73 freeways. The Project is not located anywhere near this lower-cost visitor accommodation facility, and the Project will have no impact on the lower-cost visitor accommodations provided at this facility. Future Supply of Lower-Cost Visitor Accommodations Based upon our research, there are no proposed lower-cost visitor accommodation developments in the City. This is likely due to the high cost of land in the City, which discourages investors from developing any lodging facilities in the lowest-priced segment, as it is financially infeasible. High land costs force investors to develop higher-priced lodging. This Project will not impact the proposed development of lower-cost visitor accommodations. Demand for Lower Cost Visitor Accommodations Since there would be no loss to the supply of existing lower cost visitor accommodations due to the Project, the question is whether the Project would cause an increase in the demand for lower- cost visitor accommodations in the City. We are of the opinion that it would not. There has never been any correlation between the demand for lower-cost visitor accommodation and providing either high-cost visitor accommodations or hotel-branded residences. Similarly, the conversion of the existing high-cost visitor accommodations at the Project’s site, which rented for an average of $197 per night in 2021, will not generate demand for additional lower-cost visitor accommodation, which has been defined by the California Coastal Commission 144 8 as hotels with pricing under $135 per night. STR categorizes hotels into six different levels by their average daily room rates, as follows:  Luxury Class  Upper-Upscale Class  Upscale Class  Upper-Midscale Class  Midscale Class  Economy Class. The existing high-cost hotel rooms at the Project’s site are currently in the Upper-Upscale class, which is four levels above the Economy class of lodging, which covers the lower-cost visitor accommodations segment. Hotel guests who would have stayed at the existing high-cost hotel rooms have plenty of options for alternative lodging choices in the Upper-Upscale, Upscale, Upper-Midscale and Midscale classes, and would not likely end up staying in an Economy hotel. Virtually every other hotel in the City falls into these middle four classes, and the supply of these alternative hotel choices is unchanged by the Project. Thus, the conversion of up to 159 Upper- Upscale hotel rooms into hotel-branded residence would not create any new demand for the Extended Stay America, the single lower-cost visitor accommodation in the City. In summary, since neither the supply of, nor demand for existing lower-cost visitor accommodations is impacted by the Project, we conclude the Project will not have any impact on the City’s existing lower-cost visitor accommodations, and no mitigation measures are required. 145 9 Statement of Qualifications R. Maurice Robinson, ISHC Mr. Robinson has over 40 years of experience as a consultant in the real estate and hospitality development industry. He is an expert in the field of facilitating full-service hotel development, ground leases, concession contracts, market and financial feasibility analysis, fiscal and economic benefit studies, structuring public subsidies for new hotel development, and public/private development partnerships. He specializes in public sector counseling, and typically assists California and Federal agencies in:  facilitating hotel, commercial and residential development on public properties  structuring hospitality development deals using public financing vehicles  negotiating ground and building leases for new hospitality developments  identifying and soliciting hospitality brands, operators and developers  Performing economic feasibility and fiscal impact studies for hotel projects  valuing private investment on public lands  providing expert witness testimony in disputes; and  analyzing and structuring development and management agreements. A partial list of his public-sector clients in California follows:  Alameda  California Coastal Commission  Cathedral City  Crescent City  Del Mar  Department of State Parks and Recreation  Escondido  Fresno  Glendale  Golden Gate Bridge District  Healdsburg  Inglewood  Laguna Beach  Long Beach  Los Angeles, Community Redevelopment Agency  Los Angeles, Department of Airports  Los Angeles, Department of City Planning  Los Angeles, Grand Ave JPA  Manhattan Beach  Metropolitan Water District  Monterey County 146 10  Mountain View  Napa  National Park Service  Oceanside  Orange County  Palm Desert  Poway  Richmond  Riverside  Riverside County Transportation Commission  San Diego City  San Diego County  San Diego Metropolitan Transit System  San Diego Unified Port District  San Jose, Redevelopment Agency  San Mateo County  San Mateo County Harbor District  Santa Clara Valley Transportation Authority  Santa Monica  Solano County  South Coast Air Quality Management District  Southern California Association of Governments  U.S. Department of Justice  West Sacramento Public clients and the hotels that have been developed, or are now being developed:  City of San Diego’s 170-room 5-diamond Lodge at Torrey Pines  City of Manhattan Beach’s 400-room Westdrift Autograph Hotel and Golf Course  City of San Jose’s downtown 506-room Marriott Hotel  City of Beverly Hills’s 201-room Montage Hotel & 25 Branded Residences  City of Laguna Beach’s 258-room Montage Resort and 27 Branded Residences  National Park Service’s 252-room Argonaut Hotel in San Francisco (conversion of the historic Haslett Warehouse on Fisherman’s Wharf)  National Park Service’s 142-room Lodge at Cavallo Point in Golden Gate Park (conversion of the historic Fort Baker Army post near Sausalito).  City of San Diego’s Liberty Station 200-room Courtyard and 150-unit Homewood Suites (conversion of the ex-Naval Training Center adjacent to the airport)  Port of San Diego’s 253-room Springhill Suites and 147-unit Residence Inn  Port of San Diego’s 400-room InterContinental Hotel 147 11  City of Mountain View’s 255-room Ameswell Hotel  City of Oceanside’s 161-room Mission Pacific hotel and 226-room Seabird hotel  City of Mountain View’s proposed 180-room Joie de Vivre hotel (to be developed)  City of Santa Monica’s Fairmont Miramar Hotel and 60 Branded Residences (to be redeveloped) Affiliations: Mr. Robinson is a member of the prestigious International Society of Hospitality Consultants (ISHC), where he served for nine years on the Board of Directors and as Chairman of the Professional Conduct Committee. Other professional memberships include the American Society of Appraisers (ASA), and the Forensic Expert Witness Association (FEWA). He is also a member of the Board of Arbitrators for the Financial Industry National Regulatory Authority (FINRA). Background: Mr. Robinson is President of Maurice Robinson & Associates LLC, providing advisory services to investors and developers in the Hospitality and Real Estate industries. Prior to founding his current firm in 1999, he was a Principal with KPMG Peat Marwick LLP, leading their western region Hospitality and Real Estate consulting practice for twelve years (1986-1998). Prior to KPMG, he was a Senior Consultant and Manager in the real estate and hospitality consulting practice of Pannell Kerr Forster (now PKF Consulting) for five years (1982-1986). His previous work experience also includes three years as Senior Economist with the real estate consulting firm of Williams-Kuebelbeck and Associates (1979-1982), and a year as an independent consultant (1978). Education: Mr. Robinson holds a General Real Estate Appraisal certificate from the State of California; a Master of Public Administration degree from the University of Southern California; a Bachelor of Arts degree in economics from Macalester College in St. Paul, Minnesota; a certificate of environmental management with a specialty in public/private partnerships from the Environmental Management Institute in Los Angeles; and a professional designation in financial planning from UCLA. Speeches, Teaching and Writing: Mr. Robinson is a frequent lecturer, having spoken more than two dozen times at various real estate and hospitality industry-related seminars and conferences across the United States, and was an annual guest lecturer at the UC Berkeley MBA program. He is the author of numerous articles, book chapters, and was the editor of KPMG’s Hospitality Update newsletter. He has co-authored an article entitled “How to Value Commercial Improvements in a National Park” in the Winter 2000/Spring 2001 edition of Real Estate Issues; a chapter entitled “Alternative Dispute Resolution in the Hospitality Industry” in the textbook Hotel Investments: Issues and Perspectives, 4th edition (2006); a chapter entitled “Converting Existing Historic Buildings into Hotels” in the textbook Hotel Sustainable Development: Principals and Best Practices, 1st edition (2011); and an article entitled “Issue Review Boards™ – The Next Wave of Alternative Dispute Resolution for the Hospitality Industry”. Awards: Mr. Robinson received the coveted James Felt Creative Counselor Award from his peers in the real estate counseling community for his ground-breaking work appraising the Grand Canyon for the National Park Service. He is also the recipient of the Member of the Year award 148 12 by his peers in the ISHC for his efforts in establishing an Alternative Dispute Resolution training program. In 2016, he facilitated the acquisition by the NPS of the final parcel of land to complete the 67-mile Backbone Trail in the Santa Monica Mountains. Contact info: 28 Dover Place, Manhattan Beach, CA 90266. Tel: 310-640-9656. Fax: 310-640- 9276. Cell: 310-713-3220. E-mail: Maurice@MauriceRobinson.com; Web site: www.MauriceRobinson.com. 149 INTENTIONALLY BLANK PAGE150 Attachment No. PC 4 Project Plans are available at the City's Websiteat the following URL: 151 INTENTIONALLY BLANK PAGE152 From:Matt Holder To:Planning Commissioners Subject:SUPPORT for Ritz-Carlton Residences Date:May 07, 2022 5:09:50 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Mr. Jim Campbell and The Newport Beach Planning Commission, My name is Matt Holder and I have been a resident in the City of Newport Beach forover 30 years. I've lived in different parts of the city - the Peninsula where mygrandparents built our house in 1957, Newport North and Newport Coast. I have seenthe city grow from a relatively small beach town into one of the most desirable placeson the coast. The city has grown the right way. It has been able to keep its character of villages andhas welcomed more people into our community. I believe the agenda item, Ritz-Carlton Residences (PA2021-296) will continue toallow the city to grow the right way. Fashion Island is the right place for this building and this project is consistent with theintent of the area. The project does not require a General Plan Amendment or achange of use through a Zoning Change or Planned Community amendment. Theproposed height is permitted under the revised General Plan resulting in no heightvariance being needed. I am also supportive of the Ritz-Carlton Residences because the owners are NewportBeach residents and they have taken time to speak to our community to ensure theproject includes public input. The owners care as much about the future of NewportBeach as I do. The owners' love for Newport Beach and respect for residents is soapparent, that SPON is supportive of this project. For all of these reasons, I hope the Planning Commission will agree with city staff andour community by supporting Ritz-Carlton Residences. Thank you, Matt Holder Newport Coast Planning Commission - May 12, 2022 Item No. 5a - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) Community Development Department CITY OF NEWPORT BEACH COMMUNITY DEVELOPMENT DEPARTMENT 100 Civic Center Drive Newport Beach, California 92660 949 644-3200 newportbeachca.gov/communitydevelopment Memorandum To: Planning Commissioners From: James Campbell, Deputy Community Development Director Date: May 10, 2022 Re: Ritz-Carlton Residences; File PA2021-296 ________________________________________________________________ Psomas, the City’s environmental consultant for the referenced project, has prepared the attached summary memorandum. The summary describes how the proposed project furthers the City’s housing policy goals. It also provides a comparative summary of the environmental impacts of the project as more fully examined in Addendum No. 6 to the 2006 General Plan Update Program EIR. The summary also makes clear that the proposed project would not result in additional intensity of use that would generate new significant impacts. If you have any questions, please do not hesitate to contact me at 949-644-3210 or by email at jcampbell@newportbeachca.gov. Thank you. Planning Commission - May 12, 2022 Item No. 5b - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) 5 Hutton Centre Drive, Suite 300 • Santa Ana, CA 92707 • T: 714.751.7373 • F: 714.545.8883 MEMORANDUM May 10, 2022 To: From: James Campbell Deputy Community Development Director City of Newport Beach Alia Hokuki, AICP Senior Project Manager Psomas Subject: Ritz-Carlton Residences Project – Summary Memorandum 1. SUMMARY REGARDING HOW THE PROJECT FURTHERS CITY’S HOUSING POLICY GOALS • On February 8, 2022, the Newport Beach City Council adopted an update to its Housing Element for the 2021-2028 planning cycle in response to the 6th Cycle Regional Housing Needs Assessment (RHNA) allocation of 4,845 new housing units for Newport Beach. On February 11, 2022, the City submitted the adopted update to the State Department of Housing and Community Development for a mandatory 60-day review. The City hereby incorporates the 2021-2028 Housing Element, including its public drafts, staff reports, and approving resolutions into the PA2021-296 record. o The proposed Ritz-Carlton Residences Project would produce essential housing; contribute toward the City’s housing supply; and assist the City with meeting its obligations in both the current Housing Element (2013) and the pending Housing Element and RHNA cycles. o The City relies on this Project, among others, in the proposed Housing Element to meet its housing allocation (see 2021-2028 Housing Element, Table B-2, Projects in the Pipeline). • The Project falls within the development envelope contemplated in the General Plan and analyzed in the certified Environmental Impact Report for the General Plan 2006 Update (“EIR”) for the Newport Center/Fashion Island area, including the Project site. o The General Plan when adopted in 2006 allocated 611 hotel rooms to the Project site. o In 2012, the City approved a transfer of 79 hotel rooms from the Project site to Anomaly 48, resulting in a current allocation of 532 hotel rooms to the Project site. o 532 hotel rooms exist today on the Project site. o The Project proposes up to 159 hotel-branded housing units, replacing up to 159 traditional hotel rooms, such that the total would remain at 532 combined rooms and units. (Per Council Policy K-4 and Director’s Interpretation No. DD2021-001, up to 30 percent of hotel rooms on a site may be converted to residential units on a one-for-one basis.) Planning Commission - May 12, 2022 Item No. 5b - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) James Campbell May 10, 2022 Page 2 Psomas • The Project will be conditioned to require the payment of a public benefit fee of $100,000 upon each converted hotel-branded residence. Of that $100,000 per unit, $65,000 will be used to acquire and construct affordable senior housing units. Assuming 159 hotel-branded housing units, $65,000 per unit totals $10,335,000. • In addition to the 2006 City of Newport Beach General Plan Update Draft EIR, the 2021- 2028 Housing Element (including its public drafts, staff reports, and approving resolutions, the 2014-2021 Housing Element and its associated Initial Study/Mitigated Negative Declaration, and the North Newport Center Planned Community Development Plan are all hereby incorporated by reference into the City’s record for PA2021-296. 2. COMPARATIVE ENVIRONMENTAL IMPACTS OF HOTEL ROOMS AND HOTEL BRANDED RESIDENCES The California Environmental Quality Act (CEQA) allows for the preparation of an Addendum to a certified EIR (Section 15164 of the CEQA Guidelines) to document minor changes in the project characteristics or environmental conditions under which the project will be developed. Based on this premise, an Addendum to the Certified 2006 EIR for the proposed Ritz-Carlton Residences Project has been prepared in accordance with the provisions of CEQA (PRC, Sections 21000 et seq.); the State CEQA Guidelines (Title 14, California Code of Regulations, Sections 15000 et seq.); and the rules, regulations, and procedures for implementing CEQA as adopted by the City of Newport Beach. The Addendum concludes that all potential impacts associated with the Project would either be the same or less than those described in the EIR and have been appropriately mitigated. For purposes of comparing the requirements for “hotel” versus “hotel branded residences” and resulting impacts, the following table provides a summary of CEQA topics, as applicable. CEQA TOPICS EXISTING HOTEL ROOMS PROPOSED RESIDENCES Aesthetics No differences identified Agricultural and Forestry Resources No differences identified Air Quality - No differences identified with respect to construction activities. With respect to Project operation, the proposed Project would not lead to new or substantially more severe significant impacts associated with operation-related air quality beyond those identified in the 2006 EIR. Biological Resources No differences identified Cultural Resources No differences identified Energy - The Project would not lead to new or substantially more severe significant impacts associated with energy demand beyond those identified in the 2006 EIR. Geology and Soils No differences identified Planning Commission - May 12, 2022 Item No. 5b - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) James Campbell May 10, 2022 Page 3 Psomas CEQA TOPICS EXISTING HOTEL ROOMS PROPOSED RESIDENCES Greenhouse Gas Emissions - The Project’s total net annual emissions are 156 MTCO2e/yr less than the existing hotel. Hazards and Hazardous Materials No differences identified Hydrology and Water Quality - Existing hotel peak flow for the 100-year storm of 37.7 cfs - Proposed residences - reduced peak flow of 32.6 cfs Land Use and Planning - Hotel rooms allowable land use for the Project site - Would not contribute to the City’s obligations to provide new housing units in both the current Housing Element (2013) and the pending Housing Element and RHNA cycles - Would not provide funding for affordable housing - Residential use allowable accessory land use within City Council Policy K-4 and Director’s Determination No. DD2021-001 - Would assist the City in meeting obligations in both the current Housing Element (2013) and the pending Housing Element and RHNA cycles - Would provide $10,335,000 in funding for affordable housing alone Mineral Resources No differences identified Noise - Exterior noise level of up to 58.3 dBA CNEL Composite noise levels at nearest receptor (residential condominium uses south of Project) - Reduced traffic noise levels due to reduction in ADTs - Reduction of 23 dBA, interior noise levels = 39 dBA CNEL, less than 45 dBA CNEL limit Population and Housing - No existing residential uses located on- site. - Proposed residences – net population increase of 361 based on US Census data generation factor (i.e., 5 percent of SCAG’s projected population growth for City from 2016 to 2045 of 7,100 residents) Public Services - The Project would not lead to new or substantially more severe significant impacts associated with public services demand beyond those identified in the 2006 EIR. Recreation - Existing on-site amenities - Existing hotel – no demand for parks - On-site amenities and open space (private and common open space) Transportation - Existing hotel - 245 AM peak hour trips - Existing hotel - 314 PM peak hour trips - Existing hotel - 4,251 average daily trips - Proposed residences - 43 AM peak hour trips - Proposed residences - 51 PM peak hour trips - Proposed residences - 722 average daily trips Tribal Cultural Resources No differences identified Utilities and Service Systems - Existing hotel peak wastewater flow – 0.337 cfs - Proposed residences peak wastewater flow – 0.161 cfs Planning Commission - May 12, 2022 Item No. 5b - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) James Campbell May 10, 2022 Page 4 Psomas CEQA TOPICS EXISTING HOTEL ROOMS PROPOSED RESIDENCES - Existing hotel wastewater generated – 79,800 gpd/room (150 gpd/room) - Existing hotel solid waste generated – 1,330 lbs/room/day (2.5 lbs/room/day) - Existing hotel water demand – 136 afy - Proposed residences wastewater generated – 33,867 gpd/du (213 gpd/du) - Proposed residences solid waste to be generated - 1,019 lbs/day (6.41 lbs/unit/day) - Proposed residences water demand – 187 afy Wildfire No differences identified MTCO2e/yr: metric tons of carbon dioxide equivalent per year; cfs: cubic feet per second; RHNA: Regional Housing Needs Allocation; dBA: A-weighted decibels; CNEL: Community Noise Equivalent Level; ADT: average daily trip; gpd/du: gallons per day per dwelling unit; lbs: pounds; afy: acre-feet per year 3. THE PROJECT DOES NOT RESULT IN NET NEW INTENSITY OF USE • As discussed in the Addendum, the Project replaces up to 159 of the existing 532 hotel rooms with 159 hotel branded residences. o This is achieved by demolishing an existing structure (i.e., Harbor Landing) and interior reconfiguration of the Harbor Point building. o As a result, the total combined number of rooms and residences (532) would remain, and the Project would not exceed this number, which is allocated to the Project site in the 2006 General Plan, through a transfer of 79 hotel rooms from the 611 total rooms. o Thus, the Project does not result in “net” new intensity of use and associated “net” new impacts that were not previously analyzed in the certified EIR. • On March 9, 2021, the City Council adopted Resolution No. 2021-18 Reducing the Barriers to the Creation of Housing (Council Policy K-4) and resulting strategies, including development of mixed-use hotels. o City Policy K-4 allows hotels and motels, outside the Coastal Commission Appeal Jurisdiction, to convert up to 30 percent of their approved hotel rooms to residential units on a one-for-one basis. o This allows residential units to be deemed an accessory use to the principal use of a hotel and that such residential uses are consistent with the hotel and motel’s underlying General Plan, Zoning Code, and Local Coastal Plan Program land use and zoning designations. o Director’s Determination No. DD2021-001 implemented City Council Policy K-4 and found that residential uses are allowable as an accessory use within four resort hotels, including the VEA Newport Beach, A Marriott Resort and Spa. Planning Commission - May 12, 2022 Item No. 5b - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) James Campbell May 10, 2022 Page 5 Psomas o The conversion of up to 159 hotel rooms to hotel 159 branded residences represents a 30 percent conversion of the 532 existing rooms and would result in a decrease in the corresponding number of hotel rooms. Planning Commission - May 12, 2022 Item No. 5b - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) From:Mario Marovic To:Planning Commissioners Subject:Support for Ritz Residences Date:May 09, 2022 9:46:56 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Chairman Lowrey and Members of the Newport Beach Planning Commission, Thank you for your service to the city of Newport Beach. I am a resident and business owner in this city. I am writing to urge your support for Agenda Item 5, Ritz-Carlton Residences (PA2021-296).I own a number of properties in this city, including Muldoon's Irish Pub, which is in very closeproximity to this site. The applicants are from Newport Beach and I have known them for many years. Wheneverpossible, we should welcome good operators/builders with a proven track record to invest inNewport Beach. Please vote yes on Thursday evening and continue to support good projects with provenapplicants in our city. Sincerely, Mario Marovic Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Denise PauckTo:Planning CommissionersSubject:Support of Newport Beach Ritz CarltonDate:May 09, 2022 9:26:32 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. >>  >> >> >> Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Gregg Miller To:Planning Commissioners Subject:Support of the Ritz Carlton Residences Date:May 09, 2022 8:04:29 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Members of the Newport Beach Planning Commission, My name is Gregg Miller and my wife Celin and I live at the Meridian Newport Beach. Unfortunately, we will not be able to attend and speak at the upcoming planning commission meeting. Because of it, I wanted to write a letter explaining ourstrong support of the Ritz-Carlton residences at the VEA Newport Beach property. As you probably know, the “Meridian at Newport Beach” is one of the closest residential communities to this site. I really enjoy living here. In fact, I moved to the community because of its close proximity to all that Fashion Island has to offer. After learning about the proposed project, I can tell the improvements to the VEA hotel will only increase this experience. Furthermore, I know the future residents of the Ritz-Carlton building will also get to share the same luxuries that my community enjoys by living in such a great location. In addition to what this project brings to my community, the benefit fees from the project will help the entire city of Newport Beach. These funds can be used to provide more housing, improve our parks, roads, etc… And finally (maybe most importantly), my neighbors and I appreciate that the owners are from Newport Beach. And without being asked, they reached out to our community and we have developed a trust with them that gives us even greater comfort with this project. For all these reasons, I hope you vote yes. Sincerely, Gregg Miller Miller Environmental, Inc. 1130 W. Trenton Ave Orange, CA 92867 (714) 385-0099 main office (714) 912-1300 direct line (714) 606-1193 cell Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) (714) 912-1460 e fax For Immediate Assistance contact Mindy at mindy@millerenvironmental.com at 714-912-1306. www.millerenvironmental.com Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Sean Stanfield To:Planning Commissioners Subject:Ritz Carlton Date:May 10, 2022 7:00:40 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. My name is Sean Stanfield and I am a business owner and live in the City of Newport Beach. I sellreal estate in Newport Beach and work with a number of high net worth clients. Everybody I speakto are excited about the Ritz Carlton project and they believe it is something the city needs and thatit will be great for investors and property owners. The owners of the project are from Newport Beach, and they are willing to invest significant capital to improve our city and they understand the unique qualities that make Newport Beach great. It is my understanding that the projected 20-Year TOT and property taxes to be generated by thisproject will be over $130 Million! The city would benefit from these funds and it can beaccomplished without any amendments to the general plan or heights variances that might disruptneighbors. I hope you will approve this project and more projects like it that attract local investors that will benefit the entire city. Thank you for your time. SEAN STANFIELD Global Real Estate Advisor 949-244-9057|714-421-3377 sean@stanfieldrealestate.com | stanfieldrealestate.com Each Office is Independently Owned and Operated. CalBRE 01024996 Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Kevin Conklin To:Planning Commissioners Subject:Ritz Carlton Project Date:May 10, 2022 9:58:30 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Commissioners: I have been a resident of Newport Beach during the 1990s and again as a homeowner with my family since 2004. Through my own company and industry experience, I am acutely aware of the challenges regarding housing across California and learned of this potential project associated with the Ritz-Carlton. The owners of this project provided education on their concept and I am in full support. Some of the issues that I believe will be beneficial to the City and our community is the reduction in traffic from the current transitory use, the general benefit of significant investment being brought into the City, the appeal to a buyer demographic that will patronize our City vendors and businesses at a high level, and the significant building and permitting fees that will be generated for the City. It just makes good sense, especially given the current use and vision for the future. Thank you for your consideration, Kevin P. Conklin Managing Member Back Bay Development, LLC 415 Redlands Ave, Newport Beach CA 92663 Direct: 562-726-1226 Fax: 562-726-1162 Cell 714-401-2911 Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Thompson, Jenna To:Planning Commissioners Subject:Letter of Support for Ritz Project Date:May 10, 2022 8:58:37 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To the Newport Beach Planning Commission, My name is Jenna Thompson and I am fortunate enough to live in the City of Newport Beach. One of the reasons why this city is such an incredible place to live is because of the major investments that property owners are willing to make in our city. The Ritz-Carlton residences are a shining example of this. The owners of the project are from Newport Beach, willing to invest significant capital to improve our city and understand the unique qualities that make this city the best. It is my understanding that the projected 20-Year TOT and property taxes to be generated by this project is over $130 Million! The city would benefit from these funds and it can be accomplished without any amendments to the general plan or heights variances that might disrupts their neighbors. I hope you will approve this project and more projects like it that attract local investors that will benefit the entire city. Thank you for your time. Jenna Thompson DISCLAIMER: This email (including any attachments) is intended solely for the person or entity to whom it is addressed and may contain confidential, proprietary or privileged material.If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution or copying of this communication is strictly prohibited. If you have received thisemail in error, please notify the sender immediately then permanently delete the email and all copies (including any attachments). This email (including any attachments) is not intended asan offer to buy or sell, or a recommendation to buy or sell, any security. All email sent to or from the Leonard Green & Partners, L.P. (“LGP”) email system is subject to archiving,monitoring, and/or review by LGP personnel. Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) May 10, 2022 James Campbell Deputy Community Development Director City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Re: The Ritz-Carlton Residences Mr. Campell, NEWPORT BEACH COU~TRY C"'Ll'B Newport Beach Country Club strongly supports The Ritz-Carlton Residences, Newport Beach project. We believe the project is world-class project that will benefit our community. We request the City and its Planning Commission enthusiastically approve the hotel branded residences. It's a great project for Newport Beach. Being a neighbor to VEA Newport Beach (the former Marriott Newport Beach), we are keenly aware of the hotel's need to reposition itself. Since being acquired by local Newport Beach-based ownership, the hotel is completing a major up-branding to VEA and a luxury repositioning which includes a major hotel renovation and the creation of the Ritz-Carlton Residences. The Ritz- Carlton will be one of the premier hotel branded residences in California. I'm aware of numerous Newport Beach Country Club members and local residents who desire to live at the Ritz-Carlton Residences here in Newport Beach. Once again, Newport Beach Country Club strongly supports The Ritz-Carlton Residences project and requests the City provide all approvals. Sincerely, Robin Shelton General Manager Newport Beach Country Club I One Clubhouse Drive, Newport Beach, CA 92660 J 949.644.9550 Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Malis Family To:Planning Commissioners Subject:Support for Ritz Carlton Newport Beach Project Date:May 10, 2022 11:39:32 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To the Newport Beach Planning Commission, My name is Andrea Malis and I am fortunate enough to live in the City of Newport Beach. One of the reasons why this city is such an incredible place to live is because of the major investments that property owners are willing to make in our city. The Ritz-Carlton residences are a shining example of this. The owners of the project are from Newport Beach, willing to invest significant capital to improve our city and understand the unique qualities that make this city the best. It is my understanding that the projected 20-Year TOT and property taxes to be generated by this project is over $130 Million! The city would benefit from these funds and it can be accomplished without any amendments to the general plan or heights variances that might disrupt their neighbors. I hope you will approve this project and more projects like it that attract local investors that will benefit the entire city. Thank you for your time. Andrea Malis 1-520-360-7843 1700 Galaxy Drive Newport Beach, CA 92660 Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Craig To:Planning Commissioners Subject:Please Approve Ritz-Carlton Residences Date:May 10, 2022 12:31:27 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Hi City of Newport Beach and Planning Commission, My wife and I live in the City of Newport Beachwith our two children on University Drive. I hope you will support for Agenda Item 5 at the upcoming Planning Commission meeting to approve the Ritz-Carlton Residences (PA2021-296). The owners of VEA are significantly improving this property and we cannot wait to visit the hotel once it is remodeled. The campus will be a wonderful place to visit during the day and have friends stay while they are in town. With your approval of the Ritz- Carlton residences, the city will gain a gorgeous building to the Fashion Island area. It is refreshing to have a governing body that keeps our community safe, respect property rights and is constantly making improvements. Because of projects like the Ritz-Carlton residences, our property values continue to increase and the city is able to make improvements to our infrastructure without ever raising our taxes. Please vote yes on Thursday evening. Best, Craig Miller Sent from my iPhone Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Cortland Lioi To:Planning Commissioners Subject:Ritz-Carlton Residences Support Date:May 10, 2022 1:25:46 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. City of Newport Beach Planning Commission, My name is Cortland Lioi and I live in the upper Newport bay area. I moved to the city of Newport Beach a few years ago. As a young professional, one of the many reasons why I loveNewport Beach is because it is a place where you can live, work and play. The improvements to the hotel campus of the VEA Newport Beach with the construction of the Ritz-Carlton residences exemplifies this. I am writing to ask that you support this project. For years, the site has looked “tired” and in desperate need of a makeover. In this short periodthat the new owners have taken over, we can already see they are transforming the location into a site that is worthy of our great city. My colleagues and I are anxious to visit the revitalized property. VEA will be a fun new placewhere we can meet with friends and enjoy the incredible views that overlook the pacific. The revitalization of the entire hotel campus will make our city an even more desirable place to live and I ask that you please approve it. Best Regards, Cortland Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Debbie Millar To:Planning Commissioners Subject:Please approve Ritz-Carlton Residences Date:May 10, 2022 2:28:04 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Newport Beach Planning Commissioners, My husband and I are residents, business owners and property owners in the City of Newport Beach. We have lived on the peninsula, Lido Isle and currently reside in Corona del Mar. We moved here in 1990 and raised our six children, who were all born at Hoag Hospital! When I am not enjoying time with my family, I have the privilege of selling homes in this incredible community. I get to help families find the perfect home and neighborhood to raise their families and create lasting memories. It is priceless to help people become a part of this wonderful community that we are fortunate enough to call home. I am writing to express my support for Agenda Item 5, Ritz-Carlton Residences (PA2021-296). The project is exactly what our city needs. The building is spectacular and the perfect location for this type of residential development. An investment of this type will undoubtedly increase property values for all homeowners in the city and make Newport Beach an even more desirable place to live. For instance, the public benefit fees the city will receive can be used to improve parks, libraries and streets of neighborhoods to ensure every resident is positively impacted. With your approval and construction of this project, it will bring a beautiful building to the Fashion Island area and increase property values throughout the city. Thank you for your time and please vote yes. My best, Debbie Millar Corona del Mar (949) 933-7393 Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) Jean H. Watt 4 Harbor Island, Newport Beach, CA 92660 Jwatt4@aol.com 949/673-8164 May 10, 2022 City of Newport Beach Planning Commission planningcommission@newportbeachca.gov Lee Lowrey, Chair llowrey@newportbeachca.gov Lauren Kleiman, Vice Chair lkleiman@newportbeachca.gov Curtis Elmore, Secretary celmore@newportbeachca.gov Sarah Klaustermeier, Commissioner sklaustermeier@newportbeachca.gov Peter Koeting, Commissioner pkoeting@newportbeachca.gov Mark Rosene, Commissioner mrosene@newportbeachca.gov Eric Weigand, Commissioner eweigand@newportbeachca.gov cc to: Leilani Brown, City Clerk lbrown@newportbeachca.gov Grace Leung, City Manager gleung@newportbeachca.gov Seimone Jurjis, Community Development Director sjurjis@newportbeachca.gov Jim Campbell, Planning Director jcampbell@newportbeachca.gov RE: Ritz Carlton Residences (PA 2021-296) Dear Chairman Lowrey and members of the Commission: My comments align with those of SPON as I am a Board member of SPON. I do not want to comment on the building itself, but rather what I see as benefits that this project can bring to the City. I understand that much of what I have to say is not under the direct purview of the Planning Commission but believe it is relevant to your discussion and interest. I keep in mind SPON’s mission which is “to protect and preserve the environmental and residential qualities of Newport Beach”. Opportunities arise for us to oppose projects that are detrimental, try to mitigate negative impacts and look for ways to initiate or support projects that further the mission. I believe he latter is true in this case – that the project can bring benefits such as development fees aimed at provision of affordable housing and, even more importantly, a working relationship leading to a local housing trust fund. I have in mind the problems stemming from RHNA and am more and more of the belief that a local, Newport Beach affordable housing trust fund can be a solution to RHNNA and provide housing to accommodate our workforce, senior citizens and young people who have grown up here and wish to work and live here. While discussing the Ritz Carlton project with the applicants, Kory Kramer and Peter Zak, the subject of forming a local Housing Trust Fund became of interest to all of us and we have Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) formed a group including three from SPON and three from the developers to work on how best to proceed and make this happen. Our discussions have revolved around the benefits of a local Housing Trust Fund. Several of these stand out and are of interest to the Planning Commission: 1. By subsidizing affordable developments we can avoid the increased density and unwanted impacts on our neighborhoods from thousands of market rate and luxury units which otherwise would be needed to provide the necessary financing for builders. 2. By putting our best foot forward and providing matching funds, we can receive some grants which would otherwise not be available. Many of the government grants require that the application include both the City and a non-profit trust and matching funds from the community. 3. By having an organization which has substantial community input, we can provide for projects that meet our standards of livability, aesthetics and balanced villages. 4. With this much interest and effort from both citizens and the City, we should be able to successfully work with the State to accommodate RHNA as it unfolds. We appreciate the time that the Ritz Carlton project applicants, Kory Kramer for Eagle Four and Peter Zac for Lyon Living, have spent with us in discussing and planning for a local housing trust fund and appreciate their personal commitment to make it happen. They have the genuine interest, expertise, willingness and where-with-all that provides a unique opportunity. This has arisen because of the Ritz Carlton application but has evolved into something that has is on its own track. However, it can be a win/win situation where-by they have an approved project and the City has a beneficial public/private partnership for affordable housing. Hopefully we can develop a good working relationship with the Planning Commission as this goes forward. As always, thank you for your work and concern for our City. Sincerely, Jean Watt 949-673-8164 Jwatt4@aol.co Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:janjetton To:Planning Commissioners Date:May 10, 2022 3:11:14 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To Whom It May Concern, As citizen of Newport BeachI strongly oppose the building of the massive Ritz Carlton residencial building that is slated to be reviewed by the N. B. Planning Department. This proposal presents a blythto the region and poses an environmental nightmare and a burden to the existing infrastructure and traffic. Please consider all input from the local citizens.Sincerely, Janice Jetton1915 Yacht Maria Newport Beach, CA 92660 Sent from my T-Mobile 4G LTE Device Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) To: planningcommissioners@newportbeachca.gov Subject: A Great Model for Hotel Campuses To whom it may concern: The city of Newport Beach should support the residential building on the hotel campus of the VEA Newport Beach at Fashion Island. This project recognizes a trend in the resort hotel industry to provide onsite residences alongside hotel amenities in a single resort campus. The Balboa Bay Resort shows this model works in our city and is a great example of how successful this trend has become. Not only will this reduce traffic, but it will also generate an extreme amount of money to the city in public benefit fees. Please support this project. Best, Amy McLarand Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) To: planningcommissioners@newportbeachca.gov Subject: A Great Model for Hotel Campuses Chair Lowrey and Fellow Members of the Planning Commission My name is Robert Stewart. I have been a resident in the city of Newport Beach for over 55 years. I hope you will approve the Ritz-Carlton branded residence project in Fashion Island at 900 Newport Center Drive. We need to approve projects that will reduce traffic and you have an opportunity to do so by voting yes! Currently, the developers can construct a hotel building without any public hearing and that would generate far more traffic than the hotel-branded residences! When opportunities arise to slow down the increase of traffic, we should seize them. Please vote in favor of this project. Thank you, Robert Stewart 5' /10 / ,z, 2- Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Meredith Curci To:Planning Commissioners Subject:Support of Ritz-Carlton Residences Date:May 10, 2022 4:13:56 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Newport Beach Planning Commissioners, My family and I have lived in this city of Newport Beach for 45 years. While I typically do not write letters to the city because your planning commission, city staff and city council always does a fine job of running our city, I felt compelled this time to encourage your commission to support the upcoming agendaitem of the Ritz-Carlton residences at the VEA site. I want to applaud you, the owners/applicants, the city council and city staff for finding creative ways to bring more revenue and housing into the city. This project is a great example of “out-of-the box” thinking that can bring more funds to the cityand help solve our state’s housing crisis. It is my understanding that an approval would bring Newport Beach a public benefit fee of $100,000 for EACH unit that is built. By voting yes, all residents in NewportBeach would benefit from these funds, regardless of where they live in the city. Also, while I respect all property owner’s rights to do what they would like on their property, I would much rather see residential built instead of more hotel rooms. Wecurrently have plenty of hotel rooms and as you know, more hotel rooms would mean more traffic! By voting in support of the project, you will bring more revenue to the city, allowfor a beautiful project to be built and reduce the amount of potential traffic in this area. Please vote yes! Sincerely, Meredith F Curci Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Ruth Kobayashi To:Planning Commissioners Subject:Approval-The Ritz-Carlton Residences Project Date:May 10, 2022 4:35:48 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Good afternoon! The purpose of this email is to encourage your approval of the The Ritz-Carlton Residences Project (PA2021-296). I live in Harbor Cove, across Jamboree from the project, and I look forward to the VEA Hotel and Ritz-Carlton Residences-great additions to Newport Center. Thank you for the important work that you do for our city. Sincerely, Ruth Digital Enthusiast Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:jackie nuccio To:Planning Commissioners Subject:Vote NO on Proposed High Rise!!! Date:May 10, 2022 4:43:41 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Newport Beach Planning Commissioners, As a long time Newport Beach resident I strongly OPPOSE the idea of building the Ritz Carlton/Marriott's view-blocking highrise to include 22 stories and up to 159 residential units. This proposal will certainly not enhance our beautiful city of Newport Beach. I ask that this email be read and placed on the record at the meeting on May 12, 2022. Sincerely, Jackylyne Nuccio 2025 Yacht DefenderNewport Beach Planning Commission - May 12, 2022 Item No. 5c - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:David To:Planning Commissioners Subject:Please build high rise Date:May 10, 2022 5:55:15 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Please build new high-rise in Newport Beach. As the population gets older and we want to move out of large homes in Newport Beach, we also want to stay in Newport Beach, and need more high rise buildings. Seniors are not going to create more traffic unless it is to spend their money at local restaurants and shopping. Thank you David King Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Carl McLarand To:Planning Commissioners Subject:A great model for hotel Campuses Date:May 10, 2022 6:32:57 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Members of the Planning Newport Beach Commission My name is Carl McLarand I have lived in Newport Beach for over 40 years and have had the great pleasure as an architect to design a significant amount of the built environment in this great city, especially in and around the Newport Center area. It is my fervent hope that this Commission will approve the design and construction of the Ritz-Carlton residence project located at 900Newport Center Drive. This proposed project meets the needs of an increasingly growing segment of the local population that is aging. These residents are anxious to remain in Newport Beach while down scaling their existing residences and desire to relocate to a smaller, but very high quality and attractive residence that matches their lifestyle requirements. Security, very high quality hotel like amenities and service as well as, outstanding outward views, are highly desired by this group. The project itself will.be visually stunning, provide significant view corridors and become a prized residential asset for the City. In addition, it will have very little impact on traffic and other infrastructure issues within the City. Newport Beach needs this product and I sincerely hope you will vote favorably for its approval. Thank you in advance, Carl McLarand,Architect Chairman Emeritus, MVE Architects Sent from my iPad Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Kelly Lombardo To:Planning Commissioners Cc:sean@stanfieldrealestate.com Subject:Ritz Carlton Newport Beach Date:May 10, 2022 8:36:36 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. My name is Kelly Lombardo, I am a homeowner of Newport Beach, and I am in full support of the Ritz Carlton Residences. Not only will the project contributemillions of dollars to the city in the form of property taxes, but fulfill a need forhigh end luxury housing. Newport Beach needs to be associated with a luxury brand, and what better than the Ritz Carlton. The property owners will patronize Newport Beach businesses and provide more revenue to keep our city as pristine asit is. Thank you Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Phil Lombardo To:Planning Commissioners Cc:Sean Stanfield Subject:Planned Ritz-Carlton Residences, Newport Beach Date:May 10, 2022 8:59:02 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. My name is Phil Lombardo and I'm fortunate enough live in the City of Newport Beach. One of the reasons why this city is such an incredible place to live is because of the majorinvestments property owners are willing to make in our city. The Ritz-Carlton Residences are a shining example of this. The owners of the planned project are from Newport Beach, willingto invest significant capital to improve our city, and understand the unique qualities that make this city the best. It is my understanding that the projected 20-Year TO Tax and property taxes to be generatedby this project exceed $130 Million. The city would greatly benefit from these funds, and the project can be realized without any amendments to the general plan, or height variances thatmight disrupt its neighbors. I hope you will approve this project and more projects like it that attract local investors, benefitting the entire city. Thank you for your time. Phil Lombardo Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Susan Skinner To:Planning Commissioners; Harp, Aaron; Campbell, Jim Subject:The proposed Marriott tower is in violation of the General Plan and our LCP Date:May 11, 2022 7:33:50 AM Attachments:CD2021-077 (Ritz Carlton Residences) Coastal Commission Staff Comments 5.10.22 (3).pdf MarriotSite3-22.docx [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Planning Commissioners: We are either a city that follows the rule of law or we are not. If you approve the proposedluxury condo tower at the Marriott site (PA2021-296) as planned, you will be violating multiple laws and we will NOT be a city that follows the rule of law. Your responsibility is to the residentsof our city and not to the developers who bring interesting projects in front of you. I approached the Coastal Commission about this project and they submitted the letter attached below yesterday. Interestingly, the city has not yet posted this letter on line. I think it is important that you read it prior to your decision. The Coastal Commission lays out in detail why this project is in violation of our LCP in a much more eloquent way than I ever could. In order to maintain standing, I will thus incorporate their letter and include a letter of my own to be entered into the record. Thank you, Susan Skinner Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) May 11, 2022 Dear Planning Commission: It appears to me that the residential towers on the Marriott site will be in violation of the General Plan as well as the LCP if approved as planned on May 12. As such, the city will be in violation of their own processes. We are either a city that follows the rule of law or we are not. If the city approves this project, Planning Commission and the City Council members will have violated their oath to uphold the law, a reprehensible act for a city official to take. In discussion with the city regarding this project, much is being made of the Planning Director Determination approved last year. That action was taken without a stated plan being associated with it and while the Director’s Determination may have been legally appropriate without a specific project attached to it, it is clearly NOT legal under the Municipal Code for the Marriott project and per the Coastal Commission letter, it is also in violation of the LCP. It appears to me that the residential towers on the Marriott site will require a General Plan Amendment. My primary reason for believing this is that the current General Plan only allows hotel rooms at that site (initially 611 rooms, now 532 rooms). Because the General Plan is so specific at this site, I don’t believe that a Director’s Determination can effect a change in the entitlements at that location since the zoning code notes that the General Plan take precedence if there is a conflict. As you know, in 2021 the city accepted a Planning Director’s Determination that allowed the Planning Director to add residential units to land zoned Visitor Serving Commercial (CV) in the General Plan. The Director’s Determination also stated that up to 30% of the hotel rooms allowed at a site could be changed into dwelling units. This determination was appealed but was upheld by the city. However, the zoning code sections under which the Director’s Determination was made has some restrictions and although they were not accepted on appeal, they may be able to be utilized in the specific case of the Marriott property. Code section 20.12.020(D)(1) states that: Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) 1. Zoning Code and Municipal Code provisions. If conflicts occur between requirements of this Zoning Code, or between this Zoning Code and the Newport Beach Municipal Code, or other regulations of the City, the more restrictive shall prevail. Code section 20.12.020(E)(1)(a) states that: 1. The characteristics of, and activities associated with, the proposed use are equivalent to those of one or more of the uses listed in the zoning district as allowable, and will not involve a greater level of activity, population density, intensity, traffic generation, parking, dust, odor, noise, or similar impacts than the uses listed in the zoning district. It appears to me that both of these sections could be used to oppose the specific project at the Marriott since the General Plan doesn’t allow dwelling units there and so is more restrictive as well as the fact that the parking, intensity and population density will be increased by the dwelling units. The preliminary info on the Planning Commission’s website indicates that whereas the hotel had 1.3 parking unit per room, the condos will have 2.7 parking units per space. The square footage of the proposed condo tower appears to be far in excess of the current square footage of the hotel, thus increasing the intensity of the use. On page 3-20 of the Housing Element of the General Plan is policy LU 4.2, which states: Prohibition of New Residential Subdivisions: Prohibit new residential subdivisions that would result in additional dwelling units unless authorized by an amendment of the General Plan (GPA). Lots that have been legally merged through the Subdivision Map Act and City Subdivision Code approvals are exempt from the GPA requirements and may be re- subdivided to the original underlying legal lots. This policy is applicable to all Single Unit, Two Unit, and Multiple Unit Residential land use categories. (Imp 6.1) I did point this out to the city, whose response was that LU 4.2 exclusively covers the Single Unit, Two Unit and Multiple Unit Residential categories and was thus not applicable to the Visitor Serving Commercial category. Since residential has never been allowed in CV before, there could be an argument that this policy was intended to cover any additional residential units. It could also be argued that the Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) language stating that it is applicable to “all … land use categories” creates a broader rather than a more restrictive intent to cover anything that allows residential use. In other words, although it does call out those three land use categories, that this policy would apply to any land use category that allowed single, two unit or multi-unit residential. In the general plan update that failed in the mid 2010s, this policy had been updated to include multi use categories as well, indicating an intent to cover all residential categories. The Marriot project does meet the criteria for a residential subdivision under state and municipal code. Finally, I will add that although Newport is a charter city, the Municipal Code requires consistency between the Zoning Code and the General Plan. Thank you, Susan Skinner Planning Director’s Determination: https://ecms.newportbeachca.gov/Web/DocView.aspx?dbid=0&id=2746591&pag e=10&cr=1 Zoning code 20.12.020: https://www.newportbeachca.gov/Home/ShowDocument?id=662 Housing Element of the General Plan: https://www.newportbeachca.gov/PLN/General_Plan/04_Ch3_LandUse_web.pdf Criteria for residential subdivision: https://www.newportbeachca.gov/pln/LCP/LCP_Zoning/37_Chapter%2021.70%2 0-%20Definitions.pdf Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) Page 1 of 2 STATE OF CALIFORNIA - NATURAL RESOURCES AGENCY GAVIN NEWSOM, Governor CALIFORNIA COASTAL COMMISSION South Coast Area Office 301 E Ocean Blvd. #300 Long Beach, CA 90802 (562) 590-5071 Date: May 10, 2022 Re: Coastal Development Permit Application CD2021-077 (Ritz Carlton Residences) To: The Honorable Newport Beach Planning Commission Coastal Commission staff received a Notice of Public Hearing for the referenced item on the Planning Commission’s agenda of May 12, 2022. Thank you for the invitation to comment. The notice may contain an error and a material inconsistency. First, the notice states that “the project site is located within the appeal area of the coastal zone; therefore, final action by the City may be appealed to the California Coastal Commission.” Staff would note that maps identifying geographic appeals areas in the City identify the project site as being in a non-appealable area.1 There may be other reasons the proposed development is appealable (e.g. proximity to wetlands, streams, and/or components of the project that would qualify as a major public works project). The City should determine whether the development is appealable and update its notifications accordingly. Second, the notice identifies the zoning and land use for the project site as Visitor Serving Commercial (CV), which is consistent with the LCP designations; however, the proposed project (conversion of 159 hotel units to residential units) is plainly inconsistent with that zoning and land use and with the LCP, which is the standard of review for the Coastal Development Permit application.2 This inconsistency appears to be related to Director’s Determination No. DD2021-01 (Accessory Residential Uses Within Resort Hotels) reported to the City Council on August 24, 2021. Coastal Commission staff provided a letter dated August 20, 2021, noting that the appropriate process for changes to land use regulation in the coastal zone is an LCP Amendment, which may be initiated by the City Council subject to certification by the Coastal Commission. In fact, such a process was initiated for development of 79 townhome units on the subject site in 2007, when the City Council directed City staff to submit LCP Amendment Application NPB-MAJ-1-06, Part A, in conjunction with Coastal Development Permit Application 5-07-085.3 The LCP Amendment was approved by the Coastal Commission and changed the land use designation of a 4.25-acre area (occupied by tennis courts) at the Marriott Hotel from Visitor Serving Commercial to Medium Density 1 Locally issued coastal development permits authorizing development in the non-appealable area are not appealable to the Coastal Commission unless they are appealable for some other reason. They may be challenged in a court of law. 2 The LCP includes a Land Use Map which identifies development that may be authorized subject to a Coastal Development Permit in specific areas of the City. Land Use Policy 2.1.1-1 includes a table that identifies where hotels may be authorized (and prioritized) and where housing may be authorized. 3 The project applicant initially submitted Coastal Development Permit Application 5-06-168, but withdrew that application and waited to file the subsequent permit application because it was agreed that an LCP Amendment was required before the permit could be approved. Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) Coastal Development Permit Application CD2021-077 (Ritz Carlton Residences) Page 2 of 2 Residential. The Commission approved the permit application for the physical housing development after approving the LCP Amendment to change the land use. Additionally, the approved permit included a special condition requiring that: “the permittee shall undertake development in accordance with the approved plan. Any proposed changes to the approved final plan shall be reported to the Executive Director. No changes to the approved final plans shall occur without a Commission amendment to this coastal development permit unless the Executive Director determines that no amendment is legally required.” The subject proposal to change 30% of the rooms on the site from hotel use to residential use requires an LCP Amendment before a permit may be approved, and may require a Commission-approved amendment to Coastal Development Permit 5-07-085 or another Commission-approved permit. Construction of residential units in a location designated for Visitor Serving Commercial uses is inconsistent with the LCP, and a permit for such a use cannot be approved without changing the land use designation in the LCP. If the project, which is inconsistent with the LCP as currently proposed, proceeds without the City first processing an LCP amendment with the Commission, the Commission is authorized pursuant to Section 30810 of the Coastal Act, in certain circumstances, to issue a cease and desist order to the applicant to enforce the provisions of the LCP. That said, we prefer to resolve this matter in a cooperative manner with the City, as described in this letter. When the City submits an LCP Amendment request for the subject site (or for multiple sites in the coastal zone), Coastal Commission staff will also review the permit history for the site(s) in greater detail and identify other issues that need to be analyzed aside from proposed changes in land use (e.g. provision of public access and recreational opportunities, visual resources, water quality) and impacts that may need to be mitigated. The subject site is governed not only by the referenced LCP Amendment and permit, but by Coastal Development Permits 5-89-1006, 5-83-139, 5-83-139A, and possibly earlier permits, as the hotel site appears to have been developed in the mid 1970s. Coastal Commission staff are available to discuss the LCP Amendment process and other matters related to the provision of housing in the coastal zone. As noted in our previous letter, the Coastal Commission supports State and City goals of increasing housing in existing developed areas with the appropriate land use and zoning designations authorized by the Commission. Thank you for your collaboration. Karl Schwing Deputy Director, CCC cc: Seimone Jurjis, Community Development Director, City of Newport Beach Jim Campbell, Deputy Community Development Director, City of Newport Beach Alex Helperin, Assistant Chief Counsel, CCC Claire Wilkins, Attorney, CCC Andrew Willis, Enforcement Manager, CCC Zach Rehm, District Supervisor, CCC Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Margi Murray To:Planning Commissioners Subject:high rise construction at marriott/fashion island Date:May 11, 2022 8:00:06 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. dear fellow newport beach residents, a twenty two story building is out of proportion to the surrounding neighborhood. while this is not the first attempt to build high rise housing in this part of the town, i don’t agree to it at all.true, we have housing numbers to work toward for the state mandate, but this is not the right answer to that question. greed and vanity are common human traits and in the interest of community sometimes needto be reined in. this is one of those times. don’t allow this. marjorie murray corona del mar As societies grow decadent, the language grows decadent, too. Words are used to disguise, notto illuminate, action: you liberate a city by destroying it. Words are to confuse, so that at election time people will solemnly vote against their own interests. --Gore Vidal, writer (3Oct 1925-2012) Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Judy perry To:planningcommissioners@newportbeachca.gov. Subject:Proposed Fashion Island Ritz Carlton Date:May 11, 2022 9:39:43 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. As a resident of Granville Drive I wish to express my opposition to the proposed Ritz Carlton project. 22 stories would loom over our serene, private enclave like the Queen Mary. The attraction that Granville has is that it feels far removed from the city. The Ritz Carlton edifice would end that treasured privacy. Judy Perry 1071 Granville Drive Newport Beach CA 92660 Sent from my iPad Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) May 10, 2022 Delivered Via Email: planningcommissioners@newportbeachca.gov Chair Lee Lowrey & Planning Commissioners City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Re: Support for Ritz-Carlton Residences (PA2021-296) Dear Chair Lowrey & Planning Commissioners: I am the President of the Meridian at Newport Beach Association, which is a residential community in Newport Center located next door to the Vea Newport Beach, a Marriott Resort and Spa. We are submitting this letter in support of Newport Center Hotel, LLC’s application for the Ritz- Carlton Residences, which is on the Newport Beach Planning Commission’s May 12, 2022 agenda. Our Association appreciates the outreach, communication, and neighborliness that folks from the project have extended to our community. We are appreciative for the meetings and telephone calls they have had with members of our community, and we share their desire to improve and beautify Newport Beach. We are particularly impressed by this project because it complies with the General Plan, Zoning Code, and Local Coastal Program. Also, this project complies with the height limits for the area, and will positively enhance the community’s lifestyle, commerce, and social status in the area. We strongly believe this project will bring value to the community and the much-needed revenue to our local businesses and the City of Newport Beach which will result in continuous and imperative revitalization and improvement within our immediate city life and its infrastructure. We ask you and your fellow Planning Commissioners to join our Association in supporting the Ritz-Carlton Residences. Sincerely, Dion Emami Dion Emami President Meridian at Newport Beach Association cc: Jim Campbell, Deputy CDD Director (JCampbell@newportbeachca.gov) Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) PO Box 102 | Balboa Island, CA  92662 | 949.864.6616     A 501(c)(3) non‐profit public education organization working to protect and preserve the residential and  environmental qualities of Newport Beach.    SPONNB.org | Info@SPON‐NewportBeach.org  Social Media @SPONNB & @SPONNewport    May 11th, 2022 Newport Beach Planning Commission RE: VEA Hotel & Ritz Carlton Residences Project PA2021-217 Dear Chairman Lowrey and Members of the Commission: Thank you for the opportunity to comment on this project. We appreciate the time that the project applicants, Kory Kramer for Eagle Four, Peter Zak for Lyon Living, and Ed Selich who has served as both Planning Commissioner and Mayor, have invested in public outreach. In meeting to discuss the application for the VEA & Ritz Carlton Residences project, we have had some very interesting and informative sessions. Because SPON has been concerned about the RHNA mandate and probability that between 11,000 and 20,000 unneeded market rate housing units would be built to make affordable units viable, the idea of a Housing Trust Fund has been of interest to us. The discussion about a Housing Trust Fund came about at the time of meeting with the project applicants to learn more about the details of the project. The result of our meetings is reminiscent of an earlier agreement that was formed with project applicant, The Irvine Company in 1987. That agreement, the amicable settlement of a lawsuit, called for a win/win situation whereby the applicant built the cinema wing at Newport Center and with traffic as the basic issue and nexus, the Company relinquished its plan to build residential units on the 80-acre property in Upper Newport Bay. A deed restriction was included allowing the construction of the 10,000 square foot Muth Interpretive Center. The similarity in this case is that we are agreeing to support the VEA & Ritz Carlton Residences project while we work together with the applicant toward the formation of a local Housing Trust Fund. The basis and nexus in this case for us is the ability of a Housing Trust Fund to limit the unneeded market rate housing and the density that could come without a means to subsidize affordable housing opportunities. Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) PO Box 102 | Balboa Island, CA  92662 | 949.864.6616     A 501(c)(3) non‐profit public education organization working to protect and preserve the residential and  environmental qualities of Newport Beach.    SPONNB.org | Info@SPON‐NewportBeach.org  Social Media @SPONNB & @SPONNewport    When a Housing Trust Fund is formed, we hope the Planning Commission will join us in seeking affordable housing projects that serve the city well including in location and character. Thank you for your service. Sincerely, Charles Klobe, President SPON Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) PO Box 102 | Balboa Island, CA  92662 | 949.864.6616     A 501(c)(3) non‐profit public education organization working to protect and preserve the residential and  environmental qualities of Newport Beach.    SPONNB.org | Info@SPON‐NewportBeach.org  Social Media @SPONNB & @SPONNewport     OFFICERS    PRESIDENT  Charles Klobe    VICE PRESIDENT  Susan Dvorak    TREASURER  Dennis Baker    SECRETARY  Jeff Herdman  ___    BOARD MEMBERS    Dennis Baker  Tom Baker  Bruce Bartram  Susan Dvorak  Jeff Herdman  Jo Carol Hunter  Max Johnson  Charles Klobe  Donald Krotee  Andrea Lingle  Bobby Lovell  Marko Popovich  Jeanne Price  Sharon Ray  Nancy Scarbrough  Melinda Seely  Nancy Skinner  Jean Watt  Portia Weiss  Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) PO Box 102 | Balboa Island, CA  92662 | 949.864.6616     A 501(c)(3) non‐profit public education organization working to protect and preserve the residential and  environmental qualities of Newport Beach.    SPONNB.org | Info@SPON‐NewportBeach.org  Social Media @SPONNB & @SPONNewport      Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Alex Borrego To:Planning Commissioners Subject:New Marriot/Ritz Carlton highrise in Newport Beach Date:May 11, 2022 12:58:50 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To whom it may concern: I live in the Seaview community in Newport Beach. We paid significant monies to purchase this property primarily because of the view. This new proposed high rise will significantly negatively impact our view. This is extremely upsetting and I am strongly opposed to it. I have been a proud home owner in the city of Newport for over 10 years and in addition to this building blocking all of our views it will bring with it more traffic, trash and pollution. One of the greatest things about living in Newport is how clean and green it is compared to other parts of LA or even Orange county. Thank you, ABF Alexandra Borrego Firm Administrator ABorrrego@fwcllp.com 818.649.3577 DD 818.543.1389 F 100 West Broadway, Suite 650 Glendale, CA 91210 THIS ELECTRONIC MESSAGE IS INTENDED FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED AND CONFIDENTIAL. IF YOU ARE NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS TRANSMISSION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY REPLY E-MAIL OR BY TELEPHONE AT (818) 543-1380, AND DESTROY THE ORIGINAL TRANSMISSION AND ITS ATTACHMENTS WITHOUT READING OR SAVING THEM TO DISK. NO WAIVER OF PRIVILEGE OR CONFIDENTIALITY SHOULD BE INFERRED FROM ANY ERROR IN TRANSMITTAL. Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:BGW To:Planning Commissioners Subject:Marriott/Ritz-Carlton proposed skyscraper Date:May 11, 2022 1:10:40 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Hello, Obviously, I am AGAINST the Marriott/Ritz-Carlton proposed skyscraper in Newport Beach. The reasons are obvious as well, with the scar to the landscape, the traffic which is already very problematic and the added noise and air pollution of dramatically more high-rise living units. Please do not approve this project if you have the slightest consideration about the quality of life in Newport/CdM. Brian Wall Corona del Mar Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:John Curry To:Planning Commissioners Subject:Marriott/Ritz-Carlton proposed skycraper Date:May 11, 2022 1:22:29 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. I do not understand why this is needed. I only see downside for our community. Newport is vibrant, based around homeowners, we do not need a large hotel. It would be a terriblemistake to continue to build out a cityscape/skyline of building. John T. Curry Jr. 1921 Yacht ColiniaNewport Beach CA Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Harry Myers To:Planning Commissioners Subject:Marriott/Ritz-Carlton proposed skyscraper in Newport Beach Date:May 11, 2022 1:29:29 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Planning Commissioners, As residents of the city of Newport Beach for nearly 45 years, my wife and I place a high value on this city’s low key, open space ambiance. In my opinion this proposed project, because of its size, will have a negative impact on the city’s livability and am therefor requesting that, due to its size, the Commissioners reject this proposed project. Sincerely Harry W. and Susan A. Myers Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:janjetton To:Planning Commissioners Date:May 11, 2022 1:37:35 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To Whom it May Concern, As a resident of Newport Beach, I would like to express my opposition to the NB Planning Commission approving the building of the proposed Ritz Carlton residences inNewportBeach. The 22 stories and 159 residences would pose a risk to existing infrastructures, water and other utilities, traffic congestion, parking as well as otherenvironmental impacts. Please consider declining this proposal.Sincerely, Janice Jetton1915 Yacht Maria Newport Beach, CA 92660Janjetton@aol.com Sent from my T-Mobile 4G LTE Device Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Robert Henry MD To:Planning Commissioners Subject:Ritz Carlton Residences Date:May 11, 2022 2:19:09 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Members, I am a resident of Newport Beach (1710 Port Barmouth Pl) and would like to share my thoughts on the proposed project. I grew up in Miami and saw firsthand how a verynegotiable, comfortable mid-sized city can transform into a metropolis with gridlock in a brief period if the public does not have the will to oppose unbridled development. I know we are along way from Miami but as the ancient Chinese proverb says, a journey of a thousand miles begins with the first step. I would be most appreciative if you are able to read my email at thepublic hearing. Thank you. Respectfully, Robert P. Henry, M.D. Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Scott Burnham To:Planning Commissioners Subject:Ritz-Carlton Residences SUPPORT Date:May 11, 2022 2:29:07 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Chair Lowrey and Members of the Newport Beach Planning Commission, I respectfully ask that you support the city’s recommendation and approve Agenda Item 5, The Ritz-Carlton Residences (PA2021-296) at your upcoming public hearing on Thursday, 12 May. As the founder of Burnham USA and a substantial commercial property owner of in Newport Center and the greater Newport Beach area, I have had the opportunity to work with and review countless projects in our city. Your commission, city staff and city council have consistently done a fine job in working with applicants to approve quality projects in Newport Beach. The Ritz-Carlton residences is another fine example of a top-notch project that provides benefits to our community and will positively impact it’s surrounding area. As the staff report explains, “The projected 20-Year combined TOT and property taxes to be generated by the Project would result in total tax receipts to the City of approximately $136,413,736, which is $7,694,975 more than the City would otherwise receive if the Project was not built”. Furthermore, as a resident and member of the community, I believe the applicants are excellent partners for our community. The owners are from Newport Beach and they understand its unique characteristics with its best interest at heart. This is evident in the location they picked and the style building they are proposing to build. Thank you for taking the time to read my letter and please support staff’s recommendation by approving the Ritz-Carlton residences. Sincerely, Scott Burnham Scott T. Burnham, Founder | CEO BURNHAM USA EQUITIES, INC. 1100 Newport Center Drive, Suite 200 Newport Beach, California 92660 Phone (949) 760-9150 Fax (949) 760-0430 sburnham@burnhamusa.com www.burnhamusa.com Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) This electronic transmission, and any documents attached hereto, (a) are protected by the Electronic Communications Privacy Act (18 USC §§ 2510-2521), (b) may contain confidential information, and (c)are for the sole use of the intended recipient named above. If you have received this electronic messagein error, please notify the sender and delete the electronic message. Any disclosure, copying, distribution,or use of the contents of the information received in error is strictly prohibited. It is understood that this email and any response hereto or any oral or written communication or anydocument which may be sent by or on behalf of either party to the other shall not have any binding effecton either party. Further, such understanding shall nullify any claim that either party or its representativesor agents is obligated to perform any act or expend time, money or effort based on this communication. Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Kevin Kaltenbach To:Planning Commissioners Cc:kevin.kaltenbach@sbcglobal.com Subject:Marriott/Ritz-Carlton proposed skyscraper in Newport Beach Date:May 11, 2022 2:24:25 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear planning commission, My wife and I oppose the construction of a skyscraper in Newport Beach. I believe if this proposal passes, the city of Newport Beach will never see the end of this type of construction. We live in Corona Del Mar but my office is located in Irvine, look what has happened to the Irvine skyline and it seems to never end. Please read my email at the meeting so it will be on record. Thank you for your time and consideration, Kevin Kaltenbach kevin.kaltenbach@sbcglobal.net 949-910-0932 Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Jeffrey Harty To:Planning Commissioners Subject:Fw: City of Newport Beach: CORRECTED NOTICE OF PUBLIC HEARING FOR RITZ-CARLTON RESIDENCES (PA 2021-296) Date:May 11, 2022 2:43:07 PM Attachments:NEWPORT BEACH RITZ-CARLTON RESIDENCES 900 Newport Center Dr..pdf image011.png image007.png image006.png image012.png image008.png image003.png image005.png image013.png image004.png image010.png image001.png image014.png image009.png image002.png [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. HARLO WHOLESALE LIGHTING, INC., 60 PERRY STREET WHIPPANY, NEW JERSEY 07981, Office Phone: 973-922-1774 "BRIGHT IDEAS FOR ALL YOUR LIGHTING NEEDS" Jeffrey M. Harty, President of Client Relations, Email: jeffreyharty02@yahoo.com May 11, 2022 ___________________________________________________________________________________ Good Afternoon CITY OF NEWPORT BEACH PLANNING DIVISION,100 Civic Center Drive, Newport Beach CA, 92660. Re; RITZ-CARLTON RESIDENCES (PA2021-296) Site Location: 900Newport Center Drive Commissioners, I would like to have this opportunity on introducing HARLO WHOLESALE LIGHTING, INC. to you regarding the possibility of attending this board meeting for tomorrow night. Please forward me a link tothe meeting. If you are not having this meeting broadcast, can I receive the transcripts? Please contactme at the information being provided In the meantime, please see our introduction in addition to the PDF file below consisting of the agenda. HARLO WHOLESALE LIGHTING, INC., supplies lighting material to the construction industry of the Hospitality - Commercial – Mixed Use Development – Residential Properties - Theatrical sector, all through Architects, General Contractors along with Electrical Contractors in addition to Interior Designers. Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) HARLO WHOLESALE LIGHTING, INC. has been in business since 2002 partnering with General Contractors / Electrical Contractors and Interior Designers, through the distribution of lighting material partnering with lighting design and home automation. “CORE PRINCIPALS" Perseverance: We will be better today than we were yesterday. Respect: We treat others the way we would like to be treated. Service: We deliver the best customer service and knowledgeable salesperson We are an architecturallighting design and distribution firm that prides itself on excellent communication with our clients. And weare charged with making them feel secure and satisfied on doing business with Harlo Wholesale LightingInc. Teamwork: Our associates are our family…. PORTFOLIO 1. ACCOR, PARIS FRANCE PARENT COMPANY to SOFITEL HOTELS, PULMAN HOTELS, NOVITEL HOTELS 2. SOFITEL HOTEL NYC, 44th STREET, NEW YORK CITY Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) 3. SOFITEL HOTEL CHICAGO MAGNIFICENT MILE, 20 E CHESTNUT ST, CHICAGO IL. 4. JAY Z 40/40 SPORTS BAR, WEST 25th STREET, NEW YORK CITY 5. MIKAIL BARYSHNIKOV, BAC THEATRE WEST 37th STREET, NEW YORK CITY, Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) 6 QUEENS PUBLIC LIBRARY, QUEENS NY 7. ESSEX COUNTY 911 MEMORIAL, WEST ORANGE NEW JERSEY, ESSEX COUNTY EXECUTIVE and COUNTY FREEHOLDERS 8. PARKER MERIDIAN HOTEL WEST 56 STREET, NEW YORK CITY 9. TRUMP INTERNATIONAL GOLF CLUB, BEDMINSTER NEW JERSEY, threw CRYSTAL CHANDELIERS that was requested for a renovation of a reception room Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) 10. PARK LAKE, Rockaway Township, Rockaway Borough, NEW JERSEY, Decorative Streetscape Lighting 11. VILLA ENTERPRISE, MORRISTOWN NEW JERSEY – VILLA PIZZERIA CHATHAM NJ 12. FIRST BAPTIST CHURCH, NUTLEY NJ Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) 13. CRYSTAL SPRINGS BUILDERS, VERNON, NJ HARLO WHOLESALE LIGHTING, INC. value comes into play at the beginning of the construction of any HOSPITALITY - COMMERCIAL or RESIDENTIAL PROPERTY through design applications fromLED LIGHTING to COLOR CHANGING EFFECTS to Indirect Direct Lighting Systems to CustomApplications to PROJECT MANAGEMENT to the DISTRIBUTION. Thank You, Jeffrey M. Harty, President of Client RelationsHARLO WHOLESALE LIGHTING, INC. Office; 973-922-1774 Email; jeffreyharty02@yahoo.com ----- Forwarded Message -----From: Jeffrey Harty <jeffreyharty02@yahoo.com>To: Jeffrey Harty <jeffreyharty02@yahoo.com>Sent: Wednesday, May 11, 2022, 05:27:43 PM EDTSubject: Fw: City of Newport Beach: CORRECTED NOTICE OF PUBLIC HEARING FOR RITZ-CARLTON RESIDENCES (PA 2021-296) RITZ-CARLTON RESIDENCES (PA2021-296) Site Location: 900 Newport CenterDrive Summary: Request for a coastal development permit, vesting tentative tract map, modification permit, conditional use permit and site development review toconvert up to 30% of the hotel rooms at the VEA Newport Beach, (formerly the Marriott Resort and Spa) into hotel branded residences pursuant to City Council Policy K-4 and Director’s Determination No. DD2021-001. The new 22-story building would include up to 159 units andprovide amenities including a spa, pool, event lawn and gym/fitness center. A new 5-level, 408-space subterranean parking structure would be constructed beneath the new residential building. A new 6-level (4-levels below ground & 2-levels above ground) 400-parking space parkingstructure will replace the existing hotel parking structure in substantially the same location and continue to serve the VEA Newport Beach hotel. This item may not be appealed to the California Coastal Commission and is only appealable to the City Council. Recommended Action: 1. Conduct apublic hearing; 2. Find that potential environmental impacts have been previously mitigated through the implementation of the policies of the General Plan as evaluated in Program Environmental Impact Report for the 2006 General Plan Update (SCH No. 2006011119) (“PEIR”); therefore, inaccordance with Section 15164 of the California Environmental Quality Act (“CEQA”) Guidelines, an addendum to the previously certified PEIR is the appropriate environmental documentation for the project; and 3. Approve The Ritz-Carlton Residences Project (PA2021-296) finding that the Projectis eligible for accessory residential uses pursuant to Director’s Determination No. DD2021-001 and City Council Policy K-4, and adopt Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) Resolution No. PC2022-011 (Attachment No. PC 1) approvingEnvironmental Impact Report Addendum No. 6 (ER2022-002), Major Site Development Review No. SD2021-005, Modification Permit No. MD2022- 001, Conditional Use Permit No. UP2021-053, Coastal Development Permit No. CD2021-077, and Vesting Tentative Tract Map No. NT2021-003(PA2021-296). ----- Forwarded Message ----- From: City of Newport Beach News <noreply@newportbeachca.gov> To: "jeffreyharty02@yahoo.com" <jeffreyharty02@yahoo.com> Sent: Wednesday, May 11, 2022, 04:56:03 PM EDT Subject: City of Newport Beach: CORRECTED NOTICE OF PUBLIC HEARING FOR RITZ-CARLTON RESIDENCES (PA 2021-296) CORRECTED NOTICE OF PUBLIC HEARING FOR RITZ-CARLTON RESIDENCES (PA 2021-296) Post Date: 05/11/2022 8:00 am The Planning Commission will be conducting a Public Hearing concerning The Ritz-CarltonResidences project in the City Council Chambers located at 100 Civic Center Drive starting at 6:30p.m. on May 12, 2022. The original notice incorrectly indicated the project is located in an area where a final action by the City could be appealed to the California Coastal Commission. The project site is not located within the appeal area of the coastal zone; therefore, final action by the City may not be appealed to the California Coastal Commission and is only appealable to the Newport Beach City Council. The corrected notice can be found at the City website here. For more information about the project, the Planning Commission agenda and staff report can be accessed at the City’s website - https://www.newportbeachca.gov/PLN/planning_commission/current_agenda.pdf. Having trouble viewing this email? View on the website instead. Change your eNotification preference. Unsubscribe from all City of Newport Beach eNotifications. Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Sharon Naidus To:Planning Commissioners Subject:High rise project in Fashion Island Date:May 11, 2022 3:04:17 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To whom it may concern: This email is to voice our concerns and objections to this massive high rise project being planned in Fashion Island. We have lived and worked in Corona Del Mar for almost 50 years and are not anti-growth; however the size of this development will definitely impact and add to the congestion we are already presently experiencing. If this were allowed to go forward it would definitely set a precedent for future gigantic projects which are inappropriate for our beautiful community. We hope our city government has not been corrupted by development money. We would like to have this email read at the planning commission meeting scheduled for tomorrow May 12, 2022. Thank you, George and Sharon Naidus 311 Goldenrod Ave CDM Sent from my iPhone Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) May 11, 2022 Newport Beach Planning Commission 100 Civic Center Drive Newport Beach, CA 92660 Dear Chairman Lowry and Members of the Planning Commission: As Newport Beach tourism emerges from the ravages of the pandemic, a period of tremendous volatility, a new opportunity has been created that is transforming the city’s hospitality industry. With the soon to be open VEA Newport Beach, formerly the Marriott, the city has the chance to elevate its profile in the luxury travel market. A critical companion to this project will be the adjacent Ritz Carlton Residences. This project will be an essential ingredient for this new luxury campus and Visit Newport Beach strongly urges your support. The 22-story Ritz Carlton will be residential only, meaning it won’t be used for visitor stays. But that point doesn’t negate the importance of the development, which is incredibly significant. First is the fact that the posh brand Ritz Carlton will have a presence in our community. Just seeing that famous logo on a sign as you drive by adds to the upscale nature of Newport Beach and will attract affluent new residents. But perhaps even more importantly, this project is connected to VEA with a vision to become one integrated campus. That means that the Ritz Carlton will drive business to VEA as residents dine, drink, and use the hotel facilities. Maybe the residents will also bring a meeting here. VEA was built with the expectation that the Ritz would be built at some point, so the hotel’s design, amenities and service standards will be fully complementary to the Ritz Carlton. Instead of just getting a refreshed hotel, Eagle Four and Lyon Living, the property’s owners, went the extra mile to create a much better experience than what would have created without the Ritz. However, the positive impact of this project goes far beyond the development of the residences. As part of the agreement, Eagle Four and Lyon Living will create a private, non-profit housing fund. Ask almost anyone at City Hall, and you’ll hear that perhaps the city’s biggest current challenge is to fulfil the new state mandated dwelling units for affordable housing. Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) Much of the talk locally has been to chop up residential lots to accommodate them or build another 11,000 to 25,000 new homes to pay for the affordable units. The great news is that the creation of this private non-profit housing trust fund will allow the city to focus on affordable housing only and not building so many new units that we could meet the mandated 4,845-unit number. Not only is the scope and design of the project beautiful and will add to the luxury atmosphere of the city as well as drive business, this agreement on housing will also solve a problem that have been perplexing city leaders for a couple of years. This project goes far beyond the hospitality industry and will benefit every citizen in the city. The Ritz Carlton Residences will be a transformative project for the city, and we strongly encourage your support. With Regards, Gary C. Sherwin President/CEO Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:ipostini1@mac.com To:Planning Commissioners Subject:Marriot International - Ritz Carlton Residences permit hearing Date:May 11, 2022 11:25:26 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. I’d like to voice my objection to the proposed Marriot international development permit for Fashion Island. This is a horrible idea and will have immeasurable negative impact to the area. We already have large number of new residential units, commercial office units and Highrise hotels in the Fashion Island center. This project will add another layer of traffic congestion and destroy the pristine view of Fashion Island. As nice as Marriot International says this will be for the city of Newport Beach, this will only bring nothing but unwanted traffic to the area. Thank you. Tim King Resident Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Susan Skinner To:Planning Commissioners; Harp, Aaron; Campbell, Jim Subject:Re: The proposed Marriott tower is in violation of the General Plan and our LCP Date:May 11, 2022 3:29:57 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Planning Commissioners: Please add the following comments to my prior comments of 7:33 AM today: 1) The corrected public notice posted today (5/11/22) on the project hearing for the 5/12/22 Planning Commission meeting was done outside of the 72 hour cutoff, thereby not allowingthe public adequate time to be aware of and address the issues as well as creating a Brown Act violation in the process. 2) The Coastal Commission permitting process was not adhered to by the city as they did notupdate the Local Coastal Permit (LCP) ahead of processing the project application. 3) The Newport Beach Planning Director issued a zoning interpretation not directly addressing the project specifically, but instead made a comparative declaration that ADUs described inthe proposed project were similar enough to hotel guest rooms to forgo any General Plan or zoning changes. 4) The Planning Director’s zoning determination allowed the project to then avoid having toabide by the city’s voter approved “Greenlight Initiative,” thereby denying the electorate their voice. Please confirm that you have received this EMail. Thank you, Susan Skinner On May 11, 2022, at 7:33 AM, Susan Skinner <seskinner@me.com> wrote: Dear Planning Commissioners: We are either a city that follows the rule of law or we are not. If you approve theproposed luxury condo tower at the Marriott site (PA2021-296) as planned, you will be violating multiple laws and we will NOT be a city that follows the rule of law. Yourresponsibility is to the residents of our city and not to the developers who bringinteresting projects in front of you. I approached the Coastal Commission about this project and they submitted the letter attached below yesterday. Interestingly, the city has not yet posted this letter on line. I think it is important that you read it prior to your decision. Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) The Coastal Commission lays out in detail why this project is in violation of our LCP in a much more eloquent way than I ever could. In order to maintain standing, I will thus incorporate their letter and include a letter of myown to be entered into the record. Thank you, Susan Skinner <CD2021-077 (Ritz Carlton Residences) Coastal Commission Staff Comments5.10.22 (3).pdf> <MarriotSite3-22.docx> Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) May 12, 2022, Planning Commission Item 5 Comments These comments on a Newport Beach Planning Commission agenda item are submitted by: Jim Mosher ( jimmosher@yahoo.com ), 2210 Private Road, Newport Beach 92660 (949-548-6229). Item No. 5. RITZ-CARLTON RESIDENCES (PA2021-296)  It seems very unusual for a proposal of this scope and complexity to come forward for approval at a single hearing, with no prior public discussion at as much as a study session.  It seems at least as unusual for the Planning Commission to be the final of approver of staff-negotiated monetary exactions from an applicant, such as those in Condition of Approval 7 (handwritten page 57). Normally, those are part of a development agreement, and the City Council has the final word on them. o Did the City Council designate someone to review the amounts and purposes? o Has the full Council approved them? o Will those for specific purposes be put in restricted funds? o Will they be subject to California’s Mitigation Fee Act, such that they must be refunded if not used for the stated purpose in a certain time? o Will this new housing be subject to park in lieu fees, as well?  If so, where is that mentioned in the approval?  If not, why not?  The purported Director’s Determination notwithstanding, I do not believe this proposal is consistent with the City’s General Plan, Zoning and Local Coastal Program, or, by implication, exempt from Greenlight (Charter Section 423) analysis and vote. o The City’s voters clearly never contemplated nor approved such a land use at this site, nor has the Coastal Commission ever certified it as consistent with the Coastal Act. o Indeed, to the contrary, as recently as 2009, the Coastal Commission considered the City’s request to include “condo-hotels” as an allowed use at this and other CV-designated sites in the City’s Coastal Zone, and quite explicitly rejected it (see their Item Th18d-2-2009). o I do not believe the Community Development Director or the City Council is free to substitute their judgement. o What is the “statute of limitations” that the staff report claims to have “run” (handwritten page 12)?  There is a clear and proper path for approving this project, which involves first changing the land use designation in the General Plan (with voter approval, if required) and simultaneously seeking Coastal Commission certification of corresponding changes to our Coastal Land Use Plan. After which the zoning can be implemented and then the application considered. Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) May 12, 2022, PC agenda Item 5 comments - Jim Mosher Page 2 of 2 o The City followed those procedures when faced with a very similar proposal for a smaller residential project (now called “Meridian”) on this same hotel’s property (see, for example, the CCC’s Item W15e-9-2007). o Why is the City ignoring those procedures now?  As to comments on some random details of what I believe to be a wholly improper staff recommendation: o Am I to believe “The development footprint of the proposed building and the subterranean parking garage are approximately 25,023 square feet and 44,860 square feet, respectively” (handwritten page 7)?  Is the 22-story building above ground really smaller than the 4 levels of parking below?  Are the proposed 159 luxury condos really less than 200 square feet each? o Should I believe anything else about this? o Should I believe handwritten page 141 (found with a PDF text search), which says “The proposed 22-story tower would contain 421,973 gross square feet of space, excluding 5 levels of underground parking. The up to 159 residences would be located on floors 2 through 22, and contain a total of 341,766 square feet of saleable residential space.”  Isn’t that a heck of a lot more development than voters would have expected when they approved hotel rooms in the 2006 General Plan at an estimated 1,000 sf of development per room?  Isn’t this a lot more than the 40,000 sf of new commercial development that, if added to the General Plan, would trigger a Greenlight vote?  Of the 100 new residences that would do so?  How much floor area do the remaining hotel rooms occupy?  If these residences are thought of as “accessories” to the hotel rooms, will the “accessories” now be larger than the rooms?  And by what stretch of the imagination is a private residence inaccessible to the hotel guest an “accessory” to their room?  It appears to me they are an accessory to someone’s business model, not to the hotel. o Why is there no rendering (or even schematic) of what the proposed building would look like in the printed agenda packet? o Why does handwritten page 55 suggest there is no path for appeal of the CDP (to be granted under Title 21) or the tract map (to be granted under Title 19), but only one for Title 20 issues? Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:Charles ordahl To:Planning Commissioners Subject:High rise building Date:May 11, 2022 4:19:11 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Please register my strong opinion against the proposed tall building at Newport Fashion Island Charles Ordahl Sent from my iPhone Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:suzie brierley To:Planning Commissioners Subject:Marriott High-rise Date:May 11, 2022 4:37:26 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Please read my statement before the Planning Commission when they take up the issue of the Marriott Hotel’s plan to add all those additional floors: “Hello, my name is Suzanne Brierley and I have lived ‘a stone’s throw’ from Newport Center for 30 years, since 1992. I have seen many changes over the years, including the development of Newport Coast, which drastically increased traffic. I am totally against this planned development at the Marriott Hotel next to Fashion Island. It will ruin the views of many residents who paid a fortune for homes, so they could enjoy ocean views. The traffic congestion is already bad, especially during summer months. This will make it worse. If you truly love Newport Beach and the lifestyle it offers residents please do NOT approve this expansion. Thank you for listening, Suzanne Brierley Sent from my iPhone Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:mimi newport To:Planning Commissioners Subject:High rise Date:May 11, 2022 4:41:28 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Sent from my iPhone Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) From:mimi newport To:Planning Commissioners Subject:High rise Date:May 11, 2022 5:02:55 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Sent from my iPhone Increasing the density population in Newport Beach by putting such high rise will bring more traffic problems on our Roads. Yes it will bring more revenue to the city but at a very highprice to our citizens who will be more stressed on the roads and cause more accidents. Let’s keep Newport Beach a destination for tourist toeenjoy our beaches and first class shoppingdestination. Don’t turn it into a Los Angeles Planning Commission - May 12, 2022 Item No. 5d - Additional Materials Received The Ritz-Carlton Residences (PA2021-296) Community Development Department CITY OF NEWPORT BEACH 100 Civic Center Drive Newport Beach, California 92660 949 644-3200 newportbeachca.gov/communitydevelopment May 12, 2022 Mr. Karl Schwing, Deputy Director California Coastal Commission South Coast Area Office 301 E. Ocean Blvd., #300 Long Beach, CA 90802 RE: Coastal Development Permit Application CD2021-077 (Ritz Carlton Residences) Dear Mr. Schwing: This letter is sent in response to your May 10, 2022, correspondence regarding Coastal Development Permit Application CD2021-077 (Ritz Carlton Residences) (“Project”), which is on the Planning Commission’s May 12, 2022, agenda. A number of the items contained within your correspondence are a retreading of grounds that have already been answered in the City’s August 23, 2021, response letter to District Supervisor Zach Rehm (attached hereto); however, given the importance of this Project in providing new housing in our community, we will address each of the points raised in your correspondence again. As we address the points in your correspondence, we want you to know that the City Council shares Governor Newsom’s, and the Governor’s top housing advisor Jason Elliott’s goal, to remove barriers and focus “the whole government, in terms of housing, wildfire, environment…toward building more downtown-oriented housing.” This Project is located in Newport Center, which is close to City Hall, adjacent to Fashion Island, and serves as the central or “downtown” area of our City. Our City’s prior actions to adopt City Council Policy K-4 (Reducing the Barriers to the Creation of Housing) and Director’s Determination No. DD2021-01 (Accessory Residential Uses Within Resort Hotels) were focused on removing barriers and increasing the City’s housing supply for current and Planning Commission - May 12, 2022 Item No. 5e - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) 2 future residents. This Project is the first application the City has received that seeks to rely upon these prior City actions to create more housing. We also want the California Coastal Commission’s staff to understand that the City is, and has been, focused on securing an approved, certified, 2021-2029 General Plan Housing Element as required by State law. The Project site was identified in the City’s draft 2021-2029 Housing Element sites inventory as a location where the City will accommodate a portion of its regional housing needs assessment (“RHNA”). The Housing Element has not yet received final certification from the California Department of Housing and Community Development (“HCD”). The City is cognizant that its disapproval of a proposed housing project on an identified housing opportunity site might be viewed unfavorably by HCD with respect to the City’s compliance with Housing Element Law. Scrivener’s Error in the Public Notice Thank you for bringing the scrivener’s error in the Project’s public notice to our attention. We had already caught this scrivener’s error and were in the process of correcting the record prior to receiving your correspondence. Specifically, the public notice inadvertently had a carry-over line from a prior public notice that incorrectly stated: “The project site is located within the appeal area of the coastal zone; therefore, final action by the City may be appealed to the California Coastal Commission.” As you correctly observed in your correspondence, this Project is not located within the California Coastal Commission’s appeal jurisdiction, and it is not located in proximity to wetlands, streams or have components that would qualify this Project as a major public works project. This minor scrivener’s error was not prejudicial, and the Staff Report and Addendum correctly note that this Project is not located in the appeal area. The Project site’s location outside the appeal area was also well documented by the City in the administrative records for Director’s Determination No. DD2021-01 and City Council Policy K-4. The City has already updated our website to correct this scrivener’s error, has hand delivered updated notices to all properties within 300 feet of the Project site, and has sent updated notices via e-mail to interested parties. We will also make a public announcement correcting this scrivener’s error at the Planning Commission’s public hearing on May 12, 2022. CCC Allegation: Proposed Project is Inconsistent with the Zoning, Land Use, and the LCP and Requires an LCP Amendment In your correspondence, you attribute this alleged inconsistency to Director’s Determination No. DD2021-01. The City notes the California Coastal Commission’s staff’s renewal of its objections to Director’s Determination No. DD2021-01; however, for Planning Commission - May 12, 2022 Item No. 5e - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) 3 reasons already set forth in the City’s August 23, 2021 response letter to District Supervisor Zach Rehm (attached hereto), the City has properly exercised its interpretive discretion in concluding that resort residential accessory dwelling units are authorized for this property without the need for a zoning, land use, or LCP amendment. The City’s interpretation of its own land use plans, policies, and ordinances is entitled to deference under state law. The courts have consistently determined that judicial review is highly deferential to City interpretations because “policies in a general plan reflect a range of competing interests” and the City “must be allowed to weigh and balance the plan’s policies when applying them, and [the City] has broad discretion to construe its policies in light of the plan’s purpose.” (Friends of Lagoon Valley v. City of Vacaville (2007) 154 Cal. App. 4th 807, 816). And the City is the primary interpreter of the Zoning Code. The City’s “view of the meaning and scope of its own [zoning] ordinance is entitled to great weight….” (Anderson First Coalition v. City of Anderson (2005) 130 Cal.App.4th 1173, 1193). As you know, LCP Implementation Plan (“IP”) Section 21.12.020 grants the Community Development Director the authority to interpret the LCP in a way that expands the permitted uses, provided certain findings are made. Additionally, Newport Beach Municipal Code (“NBMC”) Section 20.12.020(E) and LCP IP Section 21.12.020(E), allow the Community Development Director to determine that an unlisted land use may be allowed, again provided that certain findings are made. The Director’s Determination made the required findings and interpreted the existing LCP and related regulations to allow accessory residential uses at certain hotels. Both the Director’s Determination and City Council Policy K-4 restrict these accessory residential uses to certain resort hotel properties located outside of the California Coastal Commission’s Appeal Jurisdiction, and limit the number of accessory residential uses to no more than 30% of the approved hotel rooms. As provided in the LCP hotel definition, hotels are allowed to have related accessory uses and those uses “may include conference rooms and meeting rooms, restaurants, bars, and recreational facilities.” This listing of accessory hotel uses is meant to be illustrative in nature and not exhaustive. In this manner, the City is allowed discretion under the LCP to make interpretations about other uses which may be appropriately classified within the hotel use category, which the Director’s Determination and City Council Policy K-4 both do with regards to accessory residential uses that are no more than 30% of the approved hotel rooms at a resort hotel property. The Director’s Determination is an appropriate use of the Community Development Director’s authority under the LCP, and is consistent with past practice. Most notably, Director’s Determination No. DD2017-002/PA2017-207 was issued on October 13, 2017 for an expansion of permitted uses in the Title 20 CV Zoning District and Title 21 CV Coastal Zoning District related to the fire station located at 2708 Newport Boulevard, Planning Commission - May 12, 2022 Item No. 5e - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) 4 which is within the Coastal Zone. This interpretation occurred following certification of the City’s LCP and expressly added a use that was not previously listed as a permitted use in the CV Zoning District or the CV Coastal Zoning District. The Director’s Determination was the final City action as of the City Council’s denial of the appeal, and the statute of limitations has long since expired. The California Coastal Commission staff’s disagreement with the Director’s Determination was noted in its first letter on this topic, was considered during the course of the City’s resolution of the appeal, and was found not to have merit for reasons set forth in the City’s August 23, 2021 response letter to District Supervisor Zach Rehm. Thus, the Director’s Determination is now final, all applicable statutes of limitation have lapsed, and this Project is consistent with the zoning, land use, and the LCP and does not require an LCP amendment. CCC Allegation: The Project May Require a Commission-Approved Amendment to Coastal Development Permit 5-07-085 The City has a certified LCP and this Project is not located in an appeal area or an area of original jurisdiction. The suggestion that the California Coastal Commission has some type of permitting jurisdiction over this Project is not supported by the existing CDP, statutes, case law and deviates from your prior practice. First and foremost, CDP 5-07- 085 was an entirely new CDP for the adjacent Meridian Project, which was a 100% residential project. CDP 5-07-085 was not an amendment to the 1983 CDP for the Marriott Hotel (5-83-139 & 5-83-139A), which currently regulates the site. The 1983 CDP does not include any language or condition requiring a future project to amend the 1983 CDP or to submit to California Coastal Commission jurisdiction. In fact, Section IV(B) of that 1983 CDP notes that the California Coastal Commission certified the City’s LCP (Land Use Plan) in May 1982 and the City is in the process of preparing the zoning and implementation phase of its LCP. It states that after full certification of the City’s LCP, the City will be the agency responsible for the issuance of coastal permits and that the California Coastal Commission will be responsible for the review of appeals and the issuance of coastal permits only in areas of original jurisdiction. This line of reasoning is supported by the courts, which held in an unpublished appellate opinion from the Sierra Club v. California Coastal Commission (2019, CA2/3) that the California Coastal Commission’s “jurisdiction cannot be created by consent, waiver, estoppel or fiat. (See Norman I. Krug Real Estate Investments, Inc. v. Praszker (1990) 220 Cal.App.3d 35, 47.) Such an inquiry presents a question of law for resolution by the court. (See Harrington v. Superior Court (1924) 194 Cal.185, 188; Marlow v. Campbell (1992) 7 Cal.App.4th 921, 928.) The obligation to address the issue is of such importance that we do so sua sponte. (E.g., Jennings v. Marralle (1994) 8 Cal.4th 121, 128; Four Point Entertainment, Inc. v. New World Entertainment, Ltd. (1997) 60 Cal.App.4th 79, 81, fn. 1; see Wilson v. Southern California Edison Co. (2015) 234 Cal.App.4th 123, 143 [subject matter jurisdiction may be raised for the first time on appeal].) As we now explain, Planning Commission - May 12, 2022 Item No. 5e - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) 5 the Legislature allocated jurisdiction to consider CDP applications in the first instance based on whether a LCP had been certified. [California Public Resources Code] Section 30519, subdivision (a) provides: “. . . after a local coastal program, or any portion thereof, has been certified and all implementing actions within the area affected have become effective, the development review authority provided for in Chapter 7 (commencing with Section 30660) shall no longer be exercised by the commission over any new development proposed . . . and shall at that time be delegated to the local government that is implementing the local coastal program or any portion thereof.” A similar mandate is set out in [California Public Resources Code] section 30604, subdivision (b), which additionally indicates Commission’s jurisdiction after certification is appellate only. This section provides: “After certification of the local coastal program, a coastal development permit shall be issued if the issuing agency, or the commission on appeal, finds that the proposed development is in conformity with the certified local coastal plan.” The words of [California Public Resources Code] sections 30519, subdivision (a) and of 30604, subdivision (b) are clear and unambiguous: Upon certification of the elements of a local coastal program, authority for issuance of coastal development permits no longer rests with the Commission, but becomes the responsibility of the local agency…. The word used to convey this transfer of jurisdiction is mandatory: “shall.” No exception to this transfer of permitting jurisdiction appears in the cited statutes; nor does either statute suggest there is a gap in timing of the transfer once its condition precedent—Commission certification—is satisfied. Rather, whether read together or separately, the two statutes establish that upon certification of a local coastal plan, Commission’s jurisdiction is thereafter limited to consideration of appeals from determinations made by the local jurisdiction in applying the certified local coastal plan.” (Emphasis added.) Thus, the California Coastal Commission does not have permitting jurisdiction over this Project. The City has a certified LCP, and the City will review this Project under its LCP and determine whether to issue a new CDP or not. CCC Allegation: Potential Cease and Desist Issuance Under Section 30810 of the Coastal Act We do not believe this section is applicable to the present circumstances, and it is unfortunate that California Coastal Commission’s staff felt the need to raise this issue at all. The City is processing this Project consistent with its certified LCP. As previously stated, this Project does not require a CDP from the California Coastal Commission because it is not located in the appeal area or the original jurisdiction area. Nor is this Project inconsistent with any previously issued CDP from the California Coastal Planning Commission - May 12, 2022 Item No. 5e - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) 6 Commission. This Project is moving forward under the City’s certified LCP, and, if approved, this Project will be conditioned to ensure on-going compliance with the City’s certified LCP. We appreciate your stated preference to resolve this matter in a cooperative manner. We share that preference, and we trust that this letter responds to the concerns raised in your correspondence and brings this matter to a close. Given the urgency of the housing crisis and state law mandates such as RHNA and commercial and residential “as of right” accessory dwelling units, the California Coastal Commission’s staff should refrain from taking any action in this matter that would impede the City’s fulfillment of its legal and policy obligations to support the production of new housing. Sincerely, ___________________________ Seimone Jurjis, PE, CBO Community Development Director cc: Chair Lee Lowrey Planning Commissioners Deputy CDD Director Jim Campbell Assistant City Attorney Yolanda Summerhill Planning Commission - May 12, 2022 Item No. 5e - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) Community Development Department CITY OF NEWPORT BEACH 100 Civic Center Drive Newport Beach, California 92660 949 644-3200 newportbeachca.gov/communitydevelopment August 23, 2021 Mr. Zach Rehm, District Supervisor California Coastal Commission South Coast Area Office 301 Ocean Blvd., #301 Long Beach, CA 90802 RE: Director’s Determination No. DD2021-01 (Accessory Residential Uses Within Resort Hotels) Dear Mr. Rehm: This letter is sent in response to your August 20, 2021 correspondence regarding the upcoming appeal of Director’s Determination No. DD2021-01 (“Director’s Determination”), which is on the City Council’s August 24, 2021 agenda. We appreciate the support you expressed for the City of Newport Beach’s (“City”) City Council Policy K-4, Reducing the Barriers to the Creation of Housing, and its stated goal to increase the City’s housing supply for current and future residents. We would like to take this opportunity to address the questions raised in your correspondence: This [Director’s Determination], however, is not supported by the plain language of the Local Coastal Program (LCP)…which defines [a] hotel use….” The Director’s Determination and City Council Policy K-4 interpret the existing LCP and related regulations to allow accessory residential uses at certain hotels. Both the Director’s Determination and City Council Policy K-4 restrict these accessory residential uses to certain resort hotel properties located outside of the Coastal Commission’s Appeal Jurisdiction, and limit the number of accessory residential uses to no more than 30% of the approved hotel rooms. As provided in the LCP hotel definition, hotels are allowed to have related accessory uses and those uses “may include conference rooms and meeting rooms, restaurants, bars, and recreational facilities.” This listing of accessory hotel uses is meant to be illustrative in nature and not exhaustive. In this Planning Commission - May 12, 2022 Item No. 5e - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) 2 manner, the City is allowed discretion under the LCP to make interpretations about other uses which may be appropriately classified within the hotel use category, which the Director’s Determination and City Council Policy K-4 both do with regards to accessory residential uses that are no more than 30% of the approved hotel rooms at a hotel property. The Community Development Director does not have the authority to change land uses or interpret the LCP differently from the plain language and designated uses. The appropriate process for changes to land use regulation in the coastal zone is an LCP amendment…. LCP Implementation Plan (“IP”) Section 21.12.020 grants the Community Development Director the authority to interpret the LCP in a way that expands the permitted uses, provided that certain findings are made. The Community Development Director made said findings, which are included in the Staff Report for the City Council’s agenda. Additionally, Newport Beach Municipal Code (“NBMC”) Section 20.12.020(E) and LCP IP Section 21.12.020(E), clearly allow the Community Development Director to determine that an unlisted land use may be allowed, again provided that certain findings are made. The Director’s Determination is an appropriate use of the Community Development Director’s authority under the LCP, and is consistent with past practice. Most notably, Director’s Determination No. DD2017-002/PA2017-207 was issued on October 13, 2017 for an expansion of permitted uses in the Title 20 CV Zoning District and Title 21 CV Coastal Zoning District related to the fire station located at 2708 Newport Boulevard, which is within the Coastal Zone. This interpretation occurred following certification of the City’s LCP and expressly added a use that was not previously permitted in the CV Zoning District or the CV Coastal Zoning District. …[W]e can schedule a Dispute Resolution hearing before the Coastal Commission consistent with Section 21.50.050(B)(4) of the LCP. As clearly explained in Footnote 8, Table 21.50-1 (Review Authority) of LCP Section 21.50.020(A), “Appeal procedure for interpretations shall only apply to interpretations made by the Director on the determination of whether a development is categorically excluded, exempt, non-appealable or appealable to the Coastal Commission according to the dispute resolution process in compliance with Section 21.50.50(B).” First and foremost, there is no coastal development permit application or project before the City at this time; therefore, LCP Section 21.50.050(B)(4) is not applicable in this instance. Instead, the Director’s Determination is contemplated by, consistent with, and in furtherance of, City Council Policy K-4. Both City Council Policy K-4 and the Director’s Determination require any project located within the coastal zone to obtain a coastal development permit. Thus, there is no question as to whether a future project is subject to a coastal development permit. If a project is located in the coastal zone, it requires a new coastal development permit, period. Similarly, both City Council Policy K-4 and the Director’s Determination exclude properties that are located within the Coastal Planning Commission - May 12, 2022 Item No. 5e - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) 3 Commission’s Appealable Jurisdiction. Thus, there is no question as to whether a future project is appealable to the Coastal Commission. If a project is located within the Coastal Commission’s Appealable Jurisdiction it is not eligible for consideration under City Council Policy K-4 or the Director’s Determination. Again, thank you for supporting City Council Policy K-4 and sharing your thoughts about the Director’s Determination. The clarifications provided above should bring this matter to a close. We share the California Coastal Commission’s goals of increasing the State’s housing supply, and we believe the Director’s Determination is an important first step towards this worthy and critical goal. Sincerely, cc: Mayor Brad Avery City Council Members Grace Leung, City Manager Planning Commission - May 12, 2022 Item No. 5e - Additional Materials Received from Staff The Ritz-Carlton Residences (PA2021-296) From:Trisha Sanchez To:Planning Commissioners Subject:New Fashion Island Highrise Date:May 11, 2022 5:11:15 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Opposed Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:John French To:Planning Commissioners Cc:Campbell, Jim Subject:FW: Ritz-Carlton Residences Date:May 11, 2022 5:37:19 PM Attachments:CCF_000005.pdf [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Newport Beach Planning Commissioners: I just noticed that this email and attachment may not have gone through due to a typo in the email address below. Original email was sent with attachment at 4:32pm today. Jim Campbell was copied on the original email and attachment. John French French Asset Management, Inc. 949.300.3803 john@frenchassetmanagement.com From: Phoebe Loos <stayloos@cox.net> Sent: Wednesday, May 11, 2022 4:32 PM To: planningcommissioners@newporbeachca.gov; jcampbell@newportbeachca.gov; mark@sussonlaw.com; 'Denise Mitchell' <denise@vintagegroupre.com>; John French <john@frenchassetmanagement.com> Subject: Ritz-Carlton Residences Phoebe LoosPresident, Granville Homeowners Association Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) The Granville Community Association May 10, 2022 City of Newport Beach ATT: Newport Beach Planning Commission 100 Civic Center Drive Newport Beach, CA 92660 Re: The Granville Community Association's Support for Ritz-Carlton Residences (PA2021-296) Dear Chairman Lowrey & Planning Commissioners: On behalf of The Granville Community Association , we would like to express our support for the Ritz-Carlton Residences, which is listed as public hearing item 5 on the Newport Beach Planning Commission's upcoming agenda. Granville is a residential community consisting of 68 units bounded by Newport Center Drive, the Newport Beach Country Club, and the Vea Newport Beach , a Marriott Resort and Spa. The Granville has been working collaboratively with the managing partners at Newport Center Hotel, LLC to support and improve each other's community, with a recognition that both communities will benefit from the increased property values and improvements created by the Ritz-Carlton Residences. For instance, the landscape enhancements will beautify the site and their investment in security operations will make the area safer for our neighborhood and all those around us. We have been kept informed about the project through every step along the way. The project is already located on an existing resort site and as a result it is a winning project for our community. We welcome this great addition to Newport Center Drive and we ask you to approve this project when it comes before the Planning Commission. Sin£~~ Phoebe Loos, President On behalf of The Granville Community Association Delivered Via Email: planningcommissioners@newportbeachca.gov cc: Jim Campbell, Deputy COD Director (JCampbell@newportbeachca.gov) C/O Vintage Group 24422 Avenida de La Carlota, Suite 450, Laguna Hills, CA 92653 Phone: 855-403-3852 Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:Sandy Dahlin To:Planning Commissioners Subject:High rise in Newport Beach Date:May 11, 2022 5:54:35 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To whom it may concern, We are extremely concerned regarding the proposed building of a tall high rise in Newport Beach. It is already congested and the additional traffic will add much more. Also, there will be loss of views. Please consider the concerns of those who live here and will be impacted by this. Thanks, Sandy and Larry Dahlin Newport Coast Sent from my iPad Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:Marge Romberg To:Planning Commissioners Subject:Another (& Massive) High-Rise in Newport Beach! NO!NO!NO! Date:May 11, 2022 5:56:41 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. The large, high-rise building being considered for construction in Newport Beach should definitely NOT be allowed. The traffic is bad enough & already has become worse with the fairly new structures already built in & near Fashion Island. PLEASE, do not allow any more large structures to be built within our city, especially one as large as is being considered!!! The massive traffic is already too dangerous!!!!!! A very concerned resident of Newport Beach, Margaret Romberg Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:Frank Freitas To:Planning Commissioners Subject:New High Rise Date:May 11, 2022 11:27:54 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Honorable Planning Commissioners, I only just received the information of a planned hotel being built by Marriott/Ritz-Carlton here in Newport Beach. I recognize I’m several hours late in presenting my views to the Commission and I apologize for that. I believe that with the ongoing problems we’re having with traffic, parking, and view blocking and other high density issues, that this has not been well thought out. An even greater problem may be the water shortages that are upon us with no end in sight. I respectfully suggest this subject be tabled for now so that more public input may be considered. Yours truly, Frank Freitas 2027 Yacht Defender Newport Beach, CA 92660 Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:Peter Kazin To:Planning Commissioners Subject:Ritz Carlton Residences Date:May 11, 2022 9:39:32 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To Whom it May Concern: I have lived in Newport Beach for several years. It has come to my attention that a very reputable developer with a strong track record of success in our community wants to helpbring a world class facility to Newport Beach. This will make us all proud, provide an outstanding housing option and generate both income and jobs. The site is located across the street from Fashion Island at 900 Newport Center Drive, on thehotel campus of the Vea Newport Beach, A Marriott Resort and Spa (formerly known as the Marriott Fashion Island). This property was purchased by local owners during the height of the global COVID-19pandemic in 2020. The Marriott Fashion Island has been languishing in disrepair for some time. The local owners live in Newport Beach, are raising their families in our community,reinvesting in our City, and they intend to improve and hold this property for the long-term. This project recognizes a trend in the resort hotel industry to provide onsite residences alongside hotel amenities in a single resort campus. In 2021, the Newport Beach City Councilacknowledged this trend and our City’s resort destination status by adopting City Council Policy K-4 and by upholding Director’s Determination No. DD2021-001, which allows selectresort properties to convert up to 30% of their existing hotel rooms into hotel branded residences on a one-for-one basis. This project is seeking approval to convert up to 159 hotel rooms into hotel brandedresidences, which is 30% of the currently entitled 532 hotel rooms. The total number of units at the property will remain at 532 following the conversion. As part of this conversion theexisting Harbor Landing hotel building will be removed and replaced with a new residential building. This project also includes the following: - A 22-story residential building consisting of up to 159 hotel branded residences. Thisresidential building is within the height limits for the area and complies with all General Plan, Local Coastal Plan, and Zoning Code requirements. - A reduction in traffic because residential uses generate less traffic than hotel uses. - An increase in property values for surrounding communities and the City generally. - A public benefit fee of $100,000 paid to the City for each converted hotel room, of which$65,000 of each fee will be allocated to the creation of affordable housing. - A resort style pool and spa with lounge seating, a gym and fitness facility, locker rooms, spa treatment rooms, meeting rooms, concierge services, on-site private storage, an owners room Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) featuring billiards and a library, and other uses including food service amenities for exclusiveuse of the residents. - A private garden, an event lawn, a dog relief area, and walking paths throughout the hotel campus. A new subterranean parking structure, and a layered landscape buffer that separatesthe hotel branded residences from existing residential development. I could not more strongly support the project and I hope the planning commission approves it without delay. As the stock market continues to implode and interest rates rise, as a city, wewill be courting successful developers to take on large and impactful projects like this one. It would be a mistake to waste this opportunity. Regards, Pete Kazin Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:AMD To:Planning Commissioners Cc:Andrew DiNuzzo Subject:Ritz-Carlton Residences approval Date:May 12, 2022 6:05:56 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Members of the Newport Beach Planning Commission, To begin, thank you for your service to our community. My name is Andrew DiNuzzo and I live inIrvine Terrace with my wife and three young boys. I am respectfully writing to request theCommission approve Item 5 on your Agenda, the Ritz-Carlton residences (PA2021-296). The applicants are proposing a beautiful 22-story building that will attract more great residents to Newport Beach. The developers have thoughtfully considered an architectural look that is befitting of our community, and I believe the building will be looked upon very favorably in years to come - much like our City Hall structure. There are very few, maybe no other places, that could accommodate a building like this in NewportBeach. I am a strong believer in property rights, so long as property owners are complying withregulations. This building is within the height limits for the area and complies with all General Plan,Local Coastal Plan, and Zoning Code requirements. Please support the land owner’s property rights and approve this project. Respectfully yours, Andrew M. DiNuzzo Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:DJ Countess To:Planning Commissioners Subject:The Ritz Residences Newport Beach CA Date:May 12, 2022 7:10:07 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Planning Commissioners, My family and I live in the Dover Shores community and we excited to see the potential Ritz-Carlton residences in Fashion Island. Put simply, this project makes sense for the city of Newport Beach. And I ask that you vote in favor of it at your public hearing. It makes sense because the city will receive an enormous amount of funding that can be used to better our community. It makes sense because residential units will create far less traffic than a hotel use. It makes sense because there is no better location for a building like this. It makes sense because it will beautify the entire property. Please support this project because it makes perfect sense! Best regards, DJ Countess President | Inklogic Direct: (949) 922-6364 dj@inklogic360.com www.inklogic360.com Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:Sara Bryan To:Planning Commissioners Subject:Ritz-Carlton Residences Date:May 12, 2022 7:38:27 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Members of the Newport Beach Planning Commission, My name is Sara Weber and unfortunately, I will not be able to attend the Planning Commission hearing. Nevertheless, as a concerned Newport Beach resident, I wanted to write to you my strong support for your agenda item #5, Ritz Carlton Residence project. Our city will benefit immensely from the public benefit fees generated from this project and we should not pass this up! Thank you for your service to our community and please vote in favor of the Ritz-Carlton residences. Best, Sara Weber Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:Keith Frankel To:Planning Commissioners Subject:Support - the Ritz-Carlton Residences Date:May 12, 2022 9:06:47 AM Attachments:image578860.png image929944.png image356094.png [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Newport Planning Commission, My name is Keith Frankel. I live in the Port Streets with my wifeand three children. I plan to attend your upcoming meeting, butalso wanted put in writing my strong support for the Ritz-CarltonResidences. I am grateful to this commission for having a history of supportingproperty rights in our city. My wife and I welcome more housing in the city of NewportBeach and believe this project is a great opportunity to show thestate that Newport Beach is pro-housing. As you know, our stateis currently in a housing crisis and I commend the city staff forapproving this project, which will bring more housing units intothe city and more importantly, provide a lot more funding foraffordable housing units. I feel this project is a great opportunity for older clientele who arelooking for single story living. As it stands, my Newport based75-year-old parents are struggling to find single level housing inNewport Beach. This project would provide an opportunity forthat buyer demographic. Please support staff’s recommendation and approve this project. Thank you again for your time. Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) Keith Frankel 949.500.9548 Keith Frankel​ PROJECT MANAGER E Keith.Frankel@TriPointeHomes.com O 949.478.8665 M 949.500.9548 W TriPointeHomes.com A 5 Peters Canyon Road, Suite 100 Irvine, CA 92606 2021‑2022 GREAT PLACE TO WORK‑CERTIFIED™ COMPANY Hiring Greatness at Every Level 2019 BUILDER OF THE YEAR This message contains confidential information and is intended only for the individualnamed. If you are not the named addressee you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have receivedthis e-mail by mistake and delete this e-mail from your system. E-mail transmissioncannot be guaranteed to be secure or error-free as information could be intercepted,corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. The sender therefore does not accept liability for any errors or omissions in the contents of thismessage, which arise as a result of e-mail transmission. Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:Jamie McConnell To:Planning Commissioners Subject:Support - Agenda Item 5 Date:May 12, 2022 9:25:39 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Newport Beach Planning Commission, I am writing to express my support of the Ritz-Carlton residences. Agenda Item 5 at 900 NewportCenter Drive. My family and I live in Corona Del Mar and we wouldlove to see this project approved. The proposed building is stunning and will offer somuch to those who wish to live there. The residentswill have a resort style pool, fitness center, spatreatment rooms, concierge services, ungroundparking, private garden/lawn area and so much more!Not to mention, the breathtaking views of our harborand the Pacific Ocean. This will be a dream place to live and we shouldencourage property owners that are willing to makethis type of investment into our city. Please vote in favor of this project because it isEXACTLY what this area needs! Thank you, Jamie McConnell Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:Mark McConnell To:Planning Commissioners Subject:Ritz Carlton Residences Date:May 12, 2022 11:32:07 AM Attachments:image361697.png image339871.png image097036.png image619731.png [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Newport Beach Planning Commission, My name is Mark McConnell, and over a year ago, my family moved to Spy Glass Hill in Corona DealMar. Before that, we lived in the EastBluff community for five years. One of the reasons we loveNewport Beach is because of the unique villages, variety, and characteristics it holds. I am emailing you today because I was delighted to see that city staff is recommending approval of theRitz-Carlton residence building at 900 Newport Center Drive, on the Vea Newport Beach hotelcampus, A Marriott Resort and Spa. Our city should continue to grow responsibly and welcome projects that allow for more housingwithout losing the unique charm of Newport Beach. This location is the right area for this type of project. The proposed building will not exceed any heightlimits and is consistent with our General Plan. Please vote in favor of the project. Thank you, Mark McConnell + ​Mark McConnell SENIOR MANAGING DIRECTOR McDermott + Bull Interim Leaders office: 949.529.2675 mobile: 949.402.4002 2 Venture, Suite 100, Irvine CA 92618 mbexec.com WE'RE PRO YOU. Learn more about our team > The contents of this email are privileged and confidential. McDermott + Bull strictly complies with all applicable regulations regarding candidate history to combat intentional and unintentional compensation discrimination. ​ ​If you do not wish to receive e-mail messages from McDermott + Bull, please click here to email us, with the subject line "Unsubscribe". v6.2020 ​I understand that McDermott + Bull will protect my data as outlined in their Privacy Policy and California Privacy Policy. Planning Commission - May 12, 2022 Item No. 5f - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:Fitz Ollison To:Planning Commissioners Subject:The Ritz-Carlton Residences Date:May 12, 2022 2:46:26 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. May 12, 2022 The City of Newport Beach Planning Commission 100 Civic Center DriveNewport Beach, CA 92660 Dear Newport Beach Planning Commission, My name is Patrick Ollison and I reside in the city of Newport Beach with my wife andfamily. I do not write letters to the city regarding development projects. Ever. HOWEVER, I felt compelled to do so after receiving too many unsolicited, misleading email messages regardingthe Ritz-Carlton Residences project. Among other things, I was told this project was low-income housing, and it included a skyscraper, would require approval of the Coastal Commission, it would destroy my propertyvalue and it would turn our city into ‘tacky Miami’! After reading the staff report, it is obvious that the author of the messages was usingdisinformation, fear-mongering and intimidation tactics to try and rile up our community. It is very concerning that this disinformation is originating from ‘100 Civic Center Drive’,especially the threats made to those companies that are willing to invest in our community and that help local small businesses thrive with the customers they attract. The Ritz-Carlton residences building is magnificent addition and brings a trend in the resorthotel industry by providing onsite residences alongside hotel amenities in a single resort campus. A project of this caliber will not only increase property values throughout the entirecity but also continue to elevate and showcase our wonderful city and it’s residents to the world by offering ‘luxury living in many of the world's most vibrant cities and stunning resortdestinations.’ Please do not believe these lies and vote in favor of this amazing project that will help our entire city thrive! Thank you for your time. Patrick Ollison Patrick ‘Fitz’ Ollison Planning Commission - May 12, 2022 Item No. 5g - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) pfollison@gmail.com (408) 595-4917 www.linkedin.com/in/fitzollison Planning Commission - May 12, 2022 Item No. 5g - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:Michael Schreiber To:Planning Commissioners Subject:Ritz-Carlton Residences - Don"t believe the lies Date:May 12, 2022 2:21:19 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To: The City of Newport Beach and Planning Commissioners, I have lived in the city for over fifteen years and we would like to send this email stating my clear support for the “RITZ-CARLTON RESIDENCES (PA2021-296)” at 900 Newport Center Drive. Over the last week, there has been misinformation about this project. The rumors are being sent from an anonymous account with the sole focus of scaring residents into thinking this project will change the character of our city. These types of misinformation campaigns should not be stood for in NewportBeach and our community will see through them. My understanding is the project is consistent with the General Plan, it will reduce traffic and we will all benefit from the public benefit fees that are collected. Please do not believe the lies about this project. Michael Schreiber949-910-0513 - cell Planning Commission - May 12, 2022 Item No. 5g - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) From:Andy Keif To:Planning Commissioners Subject:Ritz Carlton Residences in Newport Beach Date:May 12, 2022 1:32:09 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Chairman Lowrey and Fellow Planning Commissioners in Newport Beach: I’m writing to you in regards to the upcoming Planning Commission agenda item tonight regarding the proposed Ritz Carlton Residences in Newport Beach. This city has been my home for over 30 years. It’s where I live and where I’ve built a successful business. I love Newport Beach, and have seen you and the City grow and make many great improvements. I think the proposed Ritz Carlton residences would be another great project and improvement to the city. I also think that 900 Newport Center Drive and Fashion Island is an excellent location for this project. Ritz Carlton and Marriott are both world class, well recognized names in the hospitality industry. And a perfect fit for our world class city!! Please support this item and thank you for your commitment to serving Newport Beach. Andy Keif Crystal Cove Resident Planning Commission - May 12, 2022 Item No. 5g - Additional Materials Received After Deadline The Ritz-Carlton Residences (PA2021-296) Ritz-Carlton Residences Planning Commission Public Hearing May 12, 2022 Jim Campbell, Deputy Community Development Director Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) Vicinity Map 900 Newport Center Drive VEA Newport Beach, A Marriott Resort and Spa Newport Beach Country Club Fashion Island Meridian Granville Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) Ritz-Carlton Residences •Project involves ~2.78 acres of the 9.53-acre VEA Newport Beach, A Marriott Resort & Spa •Demolition of pre-coastal act portion of hotel •Convert up to 159 existing hotel rooms to hotel-branded residences (30% of existing 532 room hotel) •Construction of a 22-story, 295-foot-tall residential condominium tower •No affordable Housing Included •408-space subterranean parking garage •Re-construction of existing VEA Newport Beach parking structure creating a 400-spaces for the hotel 3Community Development Department Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) Site Plan 4 Existing Hotel Complex Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) Entry Plan 5 Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) Amenity Plan 6 Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) •Major Site Development Permit No. SD2021-005 •Modification Permit No. MD2022-001 •Conditional Use Permit No. UP2021-053 •Coastal Development Permit No. CD2021-077 •Vesting Tentative Tract Map No. NT2021-003 Applications Environmental Review •Addendum No. 6 to the 2006 General Plan Update Program Environmental Impact Report Community Development Department 7 Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) •Notice was provided pursuant to the Municipal Code •Mailed, posted, newspaper, agenda posting, website •Scrivener’s Error •Site is not within the CCC appeal jurisdiction •Corrected Notice provided •Hand delivered yesterday to all addresses within 300 feet •Mailed to entire mailing list •Agenda updated for meeting and on website •Correction emailed to each interested party that submitted a comment by email •Notice not legally deficient Notice Community Development Department 8 Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) Accessory Residential Use March 2021, City Council adopts Policy K-4 •Reducing the Barriers to the Creation of Housing •Directs Staff to develop/modify strategies to accelerate housing including mixed-use hotels •Limits conversion to 30% of existing hotel rooms at resorts to residential units on a one for one basis •Not located in Coastal Commission appeal area 9Community Development Department Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) Director’s Determination No. DD2021-001 •Residential use up to 30% of resort hotel is accessory to the hotel –conversion on a one for one basis •Reviewed by the Planning Commission on two occasions •Reviewed by the City Council on appeal, determination upheld •No legal challenge, statute of limitations expired •Director Interpretations or Determinations of allowed unlisted uses is common •New Fire station on the peninsula in the CV Zone with no Coastal Commission concern voiced Accessory Residential Use Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) General Plan Consistency •Consistent with Visitor Serving Land Use Category •Residential use no more than 30% of resort hotel rooms •Land Use Element limits site to 611 hotel rooms –79 transferred rooms = 532 rooms •Combined residences and rooms will not exceed 532 •Project Assists the City to Achieve Housing Goals •Produces of up to 159 new units•Project contribution -$65,000 per unit for affordable housing •History of Conversions of Use •2012 -City Council approved tennis courts to hotel rooms and Coastal Commission endorsed by issuing a subsequent CDP•2012 -City Council approved hotel rooms to residential units 11Community Development Department Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) Zoning Consistency •Consistent with CV -Visitor Serving Zoning District •Residential use no more than 30% of resort hotel rooms •Project Complies With Development Standards •Height Below Highrise Height Limitation of 300 feet •Parking exceeds residential and hotel requirements •Exceeds minimum required setbacks 12Community Development Department Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) High Rise Zone 13Community Development Department Implements General Plan Policy LU 6.14.4 to locate taller buildings closer to San Joaquin Hills Road Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) Local Coastal Program Consistency •Consistent with Visitor Serving Land Use Category •Residential use no more than 30% of resort hotel rooms •No Impact to Coastal Resources •No impact to public coastal views •No impact to the visual quality of the coastal zone •No Impact to Lower Cost Accommodations •Impact to General Public Access by reduction of hotel rooms to paying guests addressed•Payment of $10,700 per unit for public access or recreational improvement •Site Not in Coastal Commission’s Appeal Jurisdiction 14Community Development Department Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) Local Coastal Program Consistency •Received letter dated 5/10/2022 from California Coastal Commission staff •Response •No potential violation of City’s LCP or the Coastal Act •No permit is required from the Coastal Commission •New Development is reviewed by the City •Site is not appealable to the Coastal Commission •Section 30810 of the Coastal Act is inapplicable because not permit from the CCC is required •No LCP amendment is required 15Community Development Department Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) CEQA •Psomas prepared Addendum No. 6 to the 2006 General Plan Update Environmental Impact Report •No New Significant Effects from the Project relative to the 2006 General Plan PEIR •Development will be visible, but no Public Views Obstructed •Shading does not affect sensitive uses •Traffic Trips Reduced •Average Daily•AM and PM Traffic Trips Reduced •Helps City to meet housing policy goals 16Community Development Department Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) Fiscal Benefits Development Fees •$65,000 –Senior Affordable Housing •$10,700 -Public Coastal Access •$22,300 -Public Benefit •$2,000 -Public Safety •$100,000 -Total per unit Tax Increases •TOT & Property tax analyzed ~ $7.7 million increase over next 20 years($128.7 million to $136.4 million) 17Community Development Department Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) Recommended Actions •Conduct a Public Hearing •Find Addendum No. 6 appropriate •Adopt Resolution No. PC2022-011 approving the project and all applications listed 18Community Development Department Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) 19 Questions and Discussion Jim Campbell, Deputy Community Development Director jcampbell@newportbeachca.gov 949-644-3210 Planning Commission Public Hearing May 12, 2022 Planning Commission - May 12, 2022 Item No. 5h - Additonal Materials Presented at the Meeting by Staff The Ritz-Carlton Residences (PA2021-296) Ritz-Carlton ResidencesPA2021-296 Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Project Summary •Hotel-branded residences key component to thriving hospitality campus •Conversion of up to 30% of existing approved hotel rooms to accessory residences –no net increase in intensity •Demolition of pre-Coastal Act Harbor Landing building and existing hotel parking structure •Construction of new accessory residences with subterranean parking and new hotel parking structure in consolidated footprint Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Project Team •Property Owner: Newport Center Hotel, LLC •Eagle Four Partners •Lyon Living •MVE Architects •Burton Studios -Landscape Architect •Fuscoe Engineering Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) •Transformational revitalization to the former Newport Beach Marriott –now VEA Newport Beach, a Marriott Resort and Spa •VEA is all about local community engagement which is critical to the success of the resort hotel •There are three target guests:•Enjoy •Stay •Live •Ritz-Carlton Residences is an accessory use which compliments the incredible renovation at VEA Newport Beach Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Hotel-Branded Residences Operated Under Marriott Campus Marriott Management Team GM –Debbie Snavely Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Hotel-Branded Residences Chronology City Council adoption of Policy K-4, Reducing the Barriers to the Creation of Housing, March 9, 2021 Policy K-4 directed staff to aggressively implement various strategies designed to accelerate housing production including encouraging the development of mixed-use hotels Planning Commission reviewed and upheld DD upon appeal July 8, 2021 Director’s Determination DD2021-001, Interpreting Accessory Residential as an Allowed Use within Resort Hotels, April 30, 2021 City Council reviewed and upheld the DD on appeal from the Planning Commission action August 24, 2021 In 2020, hotel industry devastated by COVID -19 pandemic, hotel business plans destroyed. HCD provides RHNA allocation revealing the need to plan for thousands of housing units in Newport Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Entitlement Application 1.Major Site Development Review 2.Modification Permit (Tandem Parking) 3.Conditional Use Permit (Required by DD2021-001) 4.Coastal Development Permit 5.Vesting Tentative Tract Map Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Project Site Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Project Site Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Completed Site Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) •Consistent with all City design standards •Exceeds parking requirement •Main residential entry aligned with existing intersection at Cucina Enoteca in Fashion Island •Fire/Service drive ensures access - no impact to Newport Center Drive •Substantial increase in open space/landscaping •High-quality building materials consistent with Newport Center Site Development Review Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) No Net Increase in Intensity 532x30%= 373 hotel rooms and 159 accessory residential 611-79=532 Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Reduction in Traffic Trips Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Building Height High Rise Height Area Original Master Plan Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) East Elevation Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Site Section Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Residential Structure Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Fire Access and Service Drive Section Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Hotel Parking Structure Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Building Materials Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Building Architecture Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Compatibility with Newport Center Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Castaways Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Yacht Streets Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Spy Glass Hill Rd Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Granville Entry Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Modification Permit –Tandem Parking Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Conditional Use Permit Required to ensure adequate parking and to analyze potential financial impact associated with loss of Transient Occupancy Tax (TOT) •Project exceeds parking requirement for both the hotel and accessory residential •TOT from VEA and Property Tax combined will result in $136 million in revenues to the City over 20 years, which is $40 million more than without this reinvestment and hotel branded residences Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) City Issued Coastal Development Permit •Project site at outermost boundary of Coastal Zone within City’s Certified LCP •Located outside of Coastal Commission appeal jurisdiction •Harbor Landing Building pre-Coastal Act, not subject to Coastal Commission authority or prior Commission issued CDPs •No impacts to coastal resources or low-cost accommodations Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Public Benefit Fee -$100,000 Per Unit •General Public Benefit -$22,300 per unit •Public Safety -$2,000 per unit •Future Improvement to Public Coastal Access -$10,700 per unit •Future Acquisition and Construction of Affordable Housing - $65,000 per unit Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Public Outreach •Outreach initiated prior to application submittal •Conducted more than 25 formal outreach meetings •Met with the following groups: •SPON •Interested land-owners •Neighbors •City leaders •Community members; and •Business leaders •Written acknowledgement/supported by: SPON, Granville HOA, Meridian HOA, Newport Beach Country Club, Tennis Club Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Project Conclusions •Consistent with all City development standards •No plan amendments or variances required •No new intensity –consistent with prior conversions •No new environmental impacts, reduction in traffic trips •Consistent with City Council Policy K-4 and DD2021-001 •TOT from VEA and Property Tax combined will result in $136 million in revenues to the City over 20 years Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296) Requested Action •Approve the proposed project consistent with the Staff Recommendation including: •Major Site Development Review, •Modification Permit, •Conditional Use Permit, •Coastal Development Permit, and •Vesting Tentative Tract Map Planning Commission - May 12, 2022 Item No. 5i - Additional Materials Presented at the Meeting by Applicant The Ritz-Carlton Residences (PA2021-296)