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NEWPORT BEACH PLANNING COMMISSION MINUTES CITY COUNCIL CHAMBERS – 100 CIVIC CENTER DRIVE THURSDAY, MARCH 23, 2023 REGULAR MEETING – 6:30 P.M. I. CALL TO ORDER – 6:30 p.m. II. PLEDGE OF ALLEGIANCE – Commissioner Langford III. ROLL CALL PRESENT: Chair Curtis Ellmore, Vice Chair Mark Rosene, Secretary Sarah Klaustermeier, Commissioner
Jonathan Langford, Commissioner Lee Lowrey, Commissioner Tristan Harris
ABSENT: Commissioner Brady Barto
Staff Present: Deputy Community Development Director Jim Campbell, Assistant City Attorney Yolanda
Summerhill, Senior Planner David Lee, and Administrative Assistant Clarivel Rodriguez IV. PUBLIC COMMENTS None V. REQUEST FOR CONTINUANCES None VI. CONSENT ITEMS ITEM NO. 1 MINUTES OF MARCH 9, 2023 Recommended Action: Approve and file Motion made by Secretary Klaustermeier and seconded by Commissioner Langford to approve the minutes
of the March 9, 2023 meeting with Mr. Mosher’s edits.
AYES: Ellmore, Klaustermeier, Langford, Lowrey, and Rosene NOES: None ABSTAIN: Harris ABSENT: Barto VII. PUBLIC HEARING ITEMS ITEM NO. 2 TENNIS AND PICKLEBALL CLUB AT NEWPORT BEACH PROJECT AMENDMENT (PA2021-260) Site Location: 1602 East Coast Highway Summary: A legislative amendment to the 2012-approved Tennis Club at Newport Beach project to: 1) reduce the number of future tennis courts from seven (7) to four (4) courts and add 14 pickleball courts, 2) increase the number of future hotel rooms from 27 to 41 rooms, 3) increase the gross floor area of the ancillary hotel uses by 4,686 square feet, and 4) provide three (3) attached condominium units and two (2) detached single-family residences in-lieu of five (5) detached single-family residences. The proposed changes to the 2012-approved project requires the considerations of the following:
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Planning Commission Regular Meeting Agenda March 23, 2023
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• General Plan Amendment: An amendment to Anomaly No. 46 of Table LU2 of the 2006 Newport Beach General Plan Land Use Element to amend the allowable development limits for the tennis club site;
• Local Coastal Program Amendment: An amendment to Local Coastal Program Implementation Plan Section 21.26.055.S.2 (Newport Beach Country Club Planned Community Coastal Zoning District Development Standards) to amend land use regulations for the tennis club site;
• Planned Community Development Plan Amendment: An amendment to Planned Community Development Plan No. 47 (Newport Beach Country Club Planned Community) to amend land use
regulations and development standards on the tennis club site;
• Development Agreement: A Development Agreement between the applicant and the City pursuant to Section 15.45 of the Municipal Code, which would provide vested right to develop the proposed project while also providing negotiated public benefits and extend the term of Agreement for an additional 10 (ten) years; and
• Addendum to the 2010 Mitigated Negative Declaration: Pursuant to the California Environmental Quality Act (“CEQA”), the addendum addresses reasonably foreseeable environmental impacts resulting from the proposed development. Recommended Action: 1. Conduct a public hearing; 2. Find that the Proposed Project will not result in any new significant impacts that were not previously analyzed in the adopted Mitigated Negative Declaration No. ND2010-008 (SCH 2010091052) for the Approved Project, and the addendum has been prepared to address reasonably foreseeable environmental impacts resulting from the Proposed Project; and 3. Adopt Resolution PC2023-014, recommending the City Council approval of PA2021-260, which includes adoption of a Mitigated Negative Declaration Addendum, and approval of a General Plan Amendment, Local Coastal Program Amendment, Planned Community Development Plan Amendment, and Development Agreement for The Tennis and Pickleball Club at Newport Beach Project located at 1602 East Coast Highway. Commissioner Langford recused himself and left the chambers due to the location being owned in part by his employer. Deputy Community Development Director Campbell noted the project was presented to the Planning Commission in September 2022, and after City Council review, it was remanded back to the Planning Commission for lacking pickleball in the project. He indicated that the applicant has retooled the project to include pickleball, which is the primary difference from the presentation in September 2022. Senior Planner Lee used a presentation to review the project amendment for The Tennis and Pickleball Club at Newport Beach, project location, land use, project background, proposed amendment, site plan, comparison of the 2012 approved project and current proposed project, project entitlements, Charter 423 Analysis, CEQA review, findings, L1 tracking table correction to the PM peak hour trip change, and recommended action. In response to Vice Chair Rosene’s question, Senior Planner Lee relayed that the applicant would need a site development permit, tract map amendment, coastal development permit, and limited term permit after the legislative entitlements are granted. Deputy Community Development Director Campbell noted there is a development agreement. Building permits would be subject to the building code at the time of issuance, however changes in the General Plan or Zoning Code would not be applicable because the development agreement will supersede them. In response to Commissioner Harris’ questions, staff confirmed that the current development agreement ends in September 2023, and Senior Planner Lee confirmed that the proposal is a new development agreement.
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In response Chair Ellmore’s questions, Deputy Community Development Director Campbell confirmed that the development agreement was negotiated and approved in 2012 as well as the Public Benefit Fee, the existing agreement has a CPI escalator that adjusts yearly on January 1, and the CPI escalator from 2012 to present time
is not reflected in the draft of the new development agreement. Vice Chair Ellmore opened the public hearing. Vice Chair Rosene, and Commissioners Harris, and Lowrey disclosed conversations with the operator of The Tennis Club. Secretary Klaustermeier and Chair Ellmore reported no ex parte communications.
Jonathan Bailey, applicant, utilized a presentation to review the NBCC Bungalows and Lofts – Plan B Amendment, revised master site plan, golf course view rendering, close up elevation and first floor plan of the Bungalow Loft building, close up elevation and first floor plan of the Fairway Loft building, site plan of the spa, fitness center,
tennis clubhouse, and pool, pool attendant area, fitness desk area, locker room areas, new court configuration site plan, rendering of the sound mitigation measures, Plan B Amendment, and to ask the Planning Commission for
project approval. Commissioner Harris thanked the applicant for the clear presentation and, in response to his questions, the applicant indicated that the condos and villas will be for sale, a parking agreement easement is being negotiated
for 30 additional spots, and groundbreaking will begin in 2032.
Brett Feuerstein and Ryan Chase, co-owners with Mr. O Hill, noted they do not believe Mr. O Hill has the legal authority to submit the application without their consent and are in arbitration regarding the matter. Mr. Feuerstein
also disclosed a lease presented to Mr. O Hill to keep the pickleball and tennis court as is, and confirmed they have no plans to add apartments.
Jim Mosher thought that the new location of the pickleball courts is a positive development. He relayed the
uncertainty of whether the ancillary uses such as the clubhouse and fitness center were part of the tennis club or hotel component. He suggested that staff's analysis of Charter 423 was incorrect, explained the project
history and stated that the voters approved the clubhouse and 24 tennis courts in 2006, and placed the property under the MU-H3 land use category of the General Plan. Mr. Mosher stated that the golf club expansion,
adjacent to the tennis club, included a General Plan Amendment, where the tennis club site did not. Mr. Mosher stated that since there was no previous General Plan Amendment, the previous approval of the 27 hotel rooms
were not tracked towards Greenlight. Mr. Mosher stated that the project could include 40 hotel rooms without a vote, but that 41 rooms is one room over the limit.
Deputy Community Development Director Campbell believed that staff completed the Greenlight analysis correctly
and no vote of the electorate is required if the project is approved by the City Council.
Chair Ellmore closed the public hearing.
Commissioner Harris expressed concern for the timeline and suggested the Council review the development agreement for potential impacts from the time spanned until groundbreaking.
Assistant City Attorney Summerhill noted that the last three development agreements have been for ten years and the effective date is tolled based on litigation, a referendum, and the coastal development permit approval.
Commissioner Lowrey recognized a clear pickleball count in the new development agreement, assumed the pickleball membership is satisfied no building will take place until 2032, based on low membership attendance at
the meeting, thought that the new development agreement is an improvement, and expressed his support. Chair Ellmore concurred with Commissioner Lowrey and recommended the project for approval, but that the development agreement reflect a CPI increase up until the extension when it is redrafted in 2023 and then use the
new net number to apply CPI adjustments again on a go-forward basis to compound the development agreement from the approximately $500,000 from 2012 to current dollars.
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In response to Commissioner Lowrey’s question, Deputy Community Development Director Campbell stated that fees are effective from the development agreement date, escalate every January 1, and pay the amount that matches at the time of pulling the project building permits up through the term of the agreement. He recommended
that the original agreement escalator continue in the new development agreement. In response to Secretary Klaustermeier’s question, Deputy Community Development Director Campbell clarified that the Public Benefit Fee is in addition to all other applicable fees. Secretary Klaustermeier supported the recommendation.
Motion made by Vice Chair Rosene and seconded by Commissioner Lowrey to approve the item with the additional recommendation to adjust the development impact fees of the new development agreement to include CPI adjustments from the previous development agreement effective date that was approved in 2012. AYES: Ellmore, Harris, Klaustermeier, Lowrey, and Rosene NOES: None RECUSED: Langford ABSENT: Barto VIII. STAFF AND COMMISSIONER ITEMS ITEM NO. 3 MOTION FOR RECONSIDERATION None ITEM NO. 4 REPORT BY THE COMMUNITY DEVELOPMENT DIRECTOR OR REQUEST FOR MATTERS WHICH A PLANNING COMMISSION MEMBER WOULD LIKE PLACED ON A FUTURE AGENDA Deputy Community Development Director Campbell announced the next Planning Commission meeting on April 6 to review noise related amendments related to implementation of the Housing Element implementation and April 20 with four items scheduled. ITEM NO. 5 REQUESTS FOR EXCUSED ABSENCES Chair Ellmore requested an excused absence at the next meeting on April 6. IX. ADJOURNMENT - The meeting adjourned at 7:07 p.m. The agenda for the March 23, 2023, Planning Commission meeting was posted on Thursday, March 16, 2023, at 05:19 p.m. in the Chambers binder, on the digital display board located inside the vestibule of the Council Chambers at 100 Civic Center Drive, and on the City’s website on Thursday, March 16, 2023, at 05:04 p.m. _______________________________ Mark Rosene, Vice Chair _______________________________ Sarah Klaustermeier, Secretary
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