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HomeMy WebLinkAbout05 - Amendments to the General Plan Land Use and Noise Elements, the Zoning Code and the Newport Place Planned Community Development Standards (PA2022-110)Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report June 14, 2022 Agenda Item No. 5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Jim Campbell, Deputy Community Development Director jampbell@newportbeachca.gov PHONE: 949-644-3210 TITLE: Resolution No. 2022-35: Initiation of Amendments to the General Plan Land Use and Noise Elements, the Zoning Code and the Newport Place Planned Community Development Standards (PA2022-110) ABSTRACT: For the City Council's consideration is the initiation of amendments to the Land Use and Noise Elements of the General Plan, Title 20 (Planning and Zoning) of the Newport Beach Municipal Code (NBMC) and the Newport Place Planned Community Development Standards. The amendments to the Land Use and Noise Elements, and Title 20 relate only to allowing housing in higher noise areas proximate to John Wayne Airport consistent with the 2021-2029 Housing Element update. The amendment to the Newport Place Planned Community relates to affordable housing requirements. The overall purpose of the amendments is to support implementation of the 2021-2029 Housing Element and City Council Policy K-4 (Reducing Barriers to the Creation of Housing). RECOMMENDATION: a) Determine this action is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3; and b) Adopt Resolution No. 2022-35, A Resolution of the City Council of the City of Newport Beach, California, Initiating Amendments to the General Plan, Title 20 (Planning and Zoning) of the Newport Beach Municipal Code, and Newport Place Planned Community Development Standards Related to Housing (PA2022-110). DISCUSSION: City Council Policy K-1 (General Plan and Local Coastal Program) requires the City Council to initiate amendments to the City of Newport Beach General Plan. 5-1 Resolution No. 2022-35: Initiation of Amendments to the General Plan Land Use and Noise Elements, the Zoning Code and the Newport Place Planned Community Development Standards (PA2022-110) June 14, 2022 Page 2 Section 20.66.020 (Initiation of Amendment) of the NBMC states that the City Council can initiate an amendment to the Zoning Code with or without a recommendation from the Planning Commission. Amendments that affect the general requirements of a planned community district that are adopted by ordinance are initiated and processed in the same manner as a Zoning Code amendment. This agenda item is not a public hearing. Should the City Council choose to initiate these proposed amendments, the specific text changes will be drafted and considered by both the Planning Commission and the City Council at future public hearings. Amendments Proposed for Initiation: Land Use and Noise Elements of the General Plan. On February 11, 2022, the City Council adopted an update to the Housing Element (2021-2029 Housing Element) consistent with applicable State Housing Element requirements in response to the 6t" Cycle Regional Housing Needs Assessment (RHNA) allocation. The City's RHNA allocation is 4,845 units, which is approximately 11 percent of the City's existing housing supply. The significant RHNA allocation and the lack of vacant land in Newport Beach forced the City to consider enhancing housing opportunities in a variety of environments, including those proximate to John Wayne Airport (JWA). As a result, the 2021-2029 Housing Element includes several policy actions to provide zoning overlays to allow residential use on sites within the 65 dBA Community Noise Equivalent Level (CNEL) to 70 dBA CNEL noise contours. In particular, 28 new housing opportunity sites are located within this higher noise area. As such, modifying or eliminating the current prohibition for housing within the higher noise contours is necessary to implement the 2021-2029 Housing Element. Title 20 of the NBMC. Section 20.30.080 (Noise) contains a prohibition for residential and mixed -use residential development within the 65 dBA CNEL or higher noise contours from JWA. Modifying or eliminating the current prohibition for housing within the higher noise contours is necessary to implement the 2021-2029 Housing Element. Newport Place Planned Community Development Standards. The Newport Place Planned Community Development Standards include a Residential Overlay that permits a residential development project on a site, provided the project has an inclusionary housing component of at least 30 percent of the base density for lower income housing. In furtherance of Policy Action 1 K in the adopted 2021-2029 Housing Element, the City commissioned a study to evaluate the feasibility of establishing minimum inclusionary housing requirements throughout the City. The study was prepared by Keyser Marston and Associates (KMA), and it shows a 7 to 15 percent inclusionary requirement for rental housing would not render most projects financially infeasible, and provided that the City offer alternative -to -construction options to comply, including an in -lieu -fee program. The KMA study does not support inclusionary percentages higher than 15 percent as they could render housing development infeasible from a financial perspective. The Residential Overlay of the Newport Place Planned Community should be modified to reduce the inclusionary housing requirement to a standard that is supported by the KMA study. 5-2 Resolution No. 2022-35: Initiation of Amendments to the General Plan Land Use and Noise Elements, the Zoning Code and the Newport Place Planned Community Development Standards (PA2022-110) June 14, 2022 Page 3 The amendments above are consistent with the policy program of the 2021-2029 Housing Element. They are also consistent with City Council Policy K-4 (Reducing Barriers to the Creation of Housing) where the City Council directed City staff to develop, modify as necessary, and aggressively implement various strategies designed to accelerate housing production. FISCAL IMPACT: There is no fiscal impact related to this item. ENVIRONMENTAL REVIEW: The initiation of amendments is exempt from the California Environmental Quality Act (CEQA), pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it involves feasibility or planning studies for possible future actions which the agency, board, or commission has not approved or adopted. NOTICING: The NBMC does not require notice for the initiation of amendments. Notice of this item appeared on the agenda for this meeting, which was posted at City Hall and on the City website (72 hours in advance of the meeting at which the City Council considers the item). Should the City Council initiate the amendment, public notice will be provided for subsequent public hearings before the Planning Commission and the City Council as required by the NBMC. ATTACHMENT: Attachment A — Resolution No. 2022-35 5-3 ATTACHMENT A RESOLUTION NO. 2022-35 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, INITIATING AMENDMENTS TO THE GENERAL PLAN, TITLE 20 (PLANNING AND ZONING) OF THE NEWPORT BEACH MUNICIPAL CODE, AND NEWPORT PLACE PLANNED COMMUNITY DEVELOPMENT STANDARDS RELATED TO HOUSING (PA2022-110) WHEREAS, City Council Policy K-1 (General Plan and Local Coastal Program) requires amendments to the City of Newport Beach General Plan ("General Plan") to be initiated by the City Council; WHEREAS, Section 20.66.020 (Initiation of Amendments) of the Newport Beach Municipal Code ("NBMC") provides that the City Council may initiate an amendment to Title 20 (Planning and Zoning) of the NBMC ("Title 20") with or without a recommendation from the Planning Commission, WHEREAS, amendments to planned communities that were adopted by ordinance are initiated and amended in the same fashion as Title 20; WHEREAS, on March 9, 2021, the Newport Beach City Council ("City Council") adopted City Council Policy K-4 (Reducing Barriers to the Creation of Housing) via Resolution No. 2021-18 ("City Council Policy K-4"), WHEREAS, City Council Policy K-4 directed City staff to develop, modify as necessary, and aggressively implement various strategies designed to accelerate housing production; WHEREAS, on February 11, 2022, the City Council adopted the 2021-2029 Housing Element ("2021-2029 Housing Element") adding over4,845 residential units as required by the 6th Cycle Regional Housing Needs Assessment ("RHNA"); WHEREAS, the excessive RHNA allocation and lack of vacant land in Newport Beach required the City to create housing opportunities in proximity to John Wayne Airport in the 2021-2029 Housing Element; WHEREAS, as a result, modifications to the Land Use and Noise Element policies of the General Plan are required to provide residential overlays on sites within the 65 to 70 dBA Community Noise Equivalent Level ("CNEL") noise contours; 5-4 Resolution No. 2022- Page 2 of 3 WHEREAS, the Newport Place Planned Community Development Standards include a residential overlay so long as the project satisfies a thirty percent inclusionary housing requirement, WHEREAS, in furtherance of Policy Action 1 K of the 2021-2029 Housing Element, the City commissioned a study by Keyser Marston and Associates ("KMA"), to evaluate the feasibility of establishing minimum inclusionary housing requirements throughout the City, that necessitates a revision to the thirty percent inclusionary housing requirement within the Newport Place Planned Community; and WHEREAS, in order to implement City Council Policy K-4, the 2021-2029 Housing Element, and KMA's findings, amendments to the General Plan, Title 20 and Newport Place Planned Community Development Standards are necessary. NOW, THEREFORE, the City Council resolves as follows: Section 1: The City Council hereby initiates amendments to the Land Use and Noise Elements of the General Plan, and Title 20 (Planning and Zoning) of the NBMC related to housing within the 65 to 70 dBA CNEL noise contours. Section 2: The City Council hereby initiates an amendment to the Newport Place Planned Community Development Standards related to affordable housing. Section 3: If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the substantive portion of this resolution. Section 5: The City Council finds the adoption of this resolution is exempt from environmental review under the California Environmental Quality Act ("CEQA"), pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it involves feasibility or planning studies for possible future actions which the agency, board, or commission has not approved or adopted. 5-5 Resolution No. 2022- Page 3 of 3 Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ADOPTED this 14th day of June, 2022. Kevin Muldoon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE a++' Cq..— Aaron C. Harp City Attorney 5-6