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HomeMy WebLinkAbout4.0_Newport Place Planned Community Amendment_PA2023-0082 CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT June 22, 2023 Agenda Item No. 4 SUBJECT: Newport Place Planned Community Amendment (PA2023-0082) ▪ Newport Place Planned Community Development Plan Amendment SITE LOCATION: Newport Place Planned Community bounded by MacArthur Boulevard, Jamboree Road, Birch Street and Bristol Street North APPLICANT: City of Newport Beach PLANNER: Rosalinh Ung, Principal Planner 949-644-3208 or rung@newportbeachca.gov PROJECT SUMMARY An amendment to Newport Place Planned Community Development Plan (PC-11) to revise the minimum affordability housing percentage for residential development within the Residential Overlay, from thirty percent (30%) to fifteen percent (15%). RECOMMENDATION 1) Conduct a public hearing; 2) Find the Amendment is not subject to the California Environmental Quality Act (“CEQA”) under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA; and 3) Adopt Resolution No. PC2023-025 recommending approval a Planned Community Development Plan Amendment to modify the minimum inclusionary affordable housing percentage to the City Council (PA2023-0082) (Attachment No. PC 1). 1 INTENTIONALLY BLANK PAGE2 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 2 VICINITY MAP Newport Place Planned Community 3 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 3 Newport Place Planned Community - Residential Overlay 4 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 4 INTRODUCTION Project Setting/Background Newport Place is a Planned Community in the Airport Area that was originally designed in the early 1970’s with clusters of office parks and industrial uses. The boundary of PC- 11 begins at MacArthur Boulevard extending westerly bounded by Jamboree Road, Bristol Street North, and Birch Street as depicted on the vicinity map. The 145-acre area has evolved with light industrial uses being replaced overtime with commercial support retail and office uses within the original design. In 2006, the City comprehensively updated its General Plan. At the time, the 3rd cycle Regional Housing Needs Assessment (RHNA) required the City to create additional housing opportunities. The 2006 General Plan included several new mixed use land use categories including the MU-H2 applied to many properties in the Airport Area1. On July 24, 2012, the City amended PC-11 to create the Residential Overlay (Overlay) to implement a Housing Element policy as part of the 4th cycle RHNA. The Overlay allows residential development consistent with the MU-H2 General Plan Land Use category that allows housing or mixed-use development for parcels located within PC-11. The Overlay requires a minimum of thirty percent (30%) of a housing or mixed-use development be restricted to lower income households. At the April 11, 2023, City Council meeting, City Council Member Erik Weigand requested that an item be placed on a future City Council agenda that reduces the inclusionary housing percentage of the Residential Overlay (Overlay) in Newport Place Planned Community from thirty percent (30%) to fifteen percent (15%). On May 9, 2023, the City Council adopted Resolution No. 2023-25 (Attachment No. PC 2), initiating the subject amendment. Amendment Description The proposed amendment would reduce the minimum inclusionary housing percentage of the Overlay, from thirty percent (30%) to fifteen percent (15%). No other changes are proposed, and no development would be directly authorized by the proposed amendment. DISCUSSION Analysis The adoption of Overlay in 2012 was necessary to secure certification of the 4th Cycle Housing Element as it was, at that time, had a greater potential to accommodate the City’s 1 The Airport Area is located near John Wayne Airport bounded by Jamboree Rd., Campus Dr., and State Route 73. 5 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 5 Regional Housing Needs Assessment (RHNA) for lower-income households. The Overlay includes use and development standards for residential projects and requires thirty percent (30%) of the residential units in a development to be made affordable to lower-income households for a minimum of 30 years. Because of this reason, it is the only area in the Airport Area that requires the inclusionary housing and with the highest percentage. As the City is facing with the substantial 6th Cycle RHNA obligation for the 2021-2029 Housing Element, the City must evaluate a variety of policies and regulations to identify impediments and incentives to housing production. Reducing the inclusionary percentage would reduce potential impediment and would also affirmatively further fair housing consistent with Policy Action 4A: Affirmatively Furthering Fair Housing and Housing Policy 4.1: Housing opportunities for as many renter- and owner-occupied households as possible in response to the market demand and RHNA obligation for housing in the City, provided in the certified 6th Cycle Housing Element. The proposed amendment is also supported by the February 17, 2022, Inclusionary Housing: Financial Evaluation, prepared by Keyser Marston Associates for the City of Newport Beach. The study concluded that inclusionary housing percentages higher than fifteen percent (15%) would likely be too high rendering most residential projects financially infeasible. Environmental Review The Amendment is not subject to the California Environmental Quality Act (“CEQA”) under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in a physical change to the environment, directly or indirectly. Public Notice Notice of this hearing was published in the Daily Pilot and mailed to all owners of property within 300 feet of the boundaries of the Newport Place Planned Community (excluding intervening rights-of-way and waterways), consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the city website. 6 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 6 Prepared by: Submitted by: ATTACHMENTS PC 1 Draft Planning Commission Resolution No. 2023-025 PC 2 City Council Resolution No. 2023-25 :\Users\PLN\Shared\PA's\PAs - 2023\PA2023-0082\PC\PA-2023-0082-PC-Staff Report.docx01/18/23 7 INTENTIONALLY BLANK PAGE8 Attachment No. PC 1 Draft Planning Commission Resolution No. 2023-025 9 INTENTIONALLY BLANK PAGE10 RESOLUTION NO. PC2023-025 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA RECOMMENDING CITY COUNCIL APPROVE AN AMENDMENT TO NEWPORT PLACE PLANNED COMMUNITY DEVELOPMENT PLAN (PC-11) TO REVISE THE MINIMUM AFFORDABILITY HOUSING PERCENTAGE OF THE RESIDENTIAL OVERLAY (PA2023-0082) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1.Newport Place is a Planned Community (PC) in the Airport Area, generally bounded by MacArthur Boulevard, Jamboree Road, Birch Street and Bristol Street North, was originally designed in the early 1970’s with clusters of office parks and industrial uses. The 145-acre area has evolved with light industrial uses being replaced over time with the commercial supported retail and office uses within the original design. The introduction of the Mixed Use – Horizontal 2 (MU-H2) General Plan Land Use classification as a part of the 2006 General Plan Land Use Element, created an opportunity for residential uses. 2.On July 24, 2012, the City Council of City of Newport Beach (“City”) amended the Newport Place PC (PC-11) creating the Residential Overlay (Overlay). The Overlay was necessary to secure certification of the 4th Cycle Housing Element as it was, at that time, had a greater potential to accommodate the City’s Regional Housing Needs Assessment (RHNA) for lower-income households. The amendment implemented the Mixed Use – Horizontal 2 (MU-H2) General Plan Land Use category for parcels within PC-11. The Overlay included use and development standards for residential projects, and it requires 30 percent of the residential units in a development to be made affordable to lower-income households for a minimum of 30 years. 3.On September 13, 2022, the City adopted the 6th Cycle Housing Element for the 2021- 2029 housing period, and it was certified by the State Department of Housing and Community Development (“HCD”) on October 5, 2022. The Airport Area is one of the five focus areas where new housing opportunity sites are identified to satisfy the RHNA allocation of 4,845 new housing units. At least 2,577 housing units are planned for the Airport Area, which comprises approximately 25 percent of the City’s planned housing capacity. In addition to the existing residential sites allowed by the 2006 General Plan Land Use Element and the PC-11’s Overlay, a total of 29 new housing opportunity sites have been identified in the PC-11 per the 6th Cycle Housing Element. 4.At the April 11, 2023, City Council meeting, City Council Member Erik Weigand requested that an item be placed on a future City Council agenda that reduced the inclusionary housing percentage for PC-11’s Overlay from thirty to 15 percent. 5.On May 9, 2023, the City adopted Resolution No. 2023-25, initiating an amendment to PC- 11 related to the minimum affordability percentage of the PC-11’s Overlay (“Amendment”), 11 Planning Commission Resolution No. PC2023-025 Page 2 of 4 01-17-23 in accordance with Section 20.56.050(E) (Development Plan Amendments) and Section 20.56.050(B) (Development Plan) of the Newport Beach Municipal Code (“NBMC”). 6. A public hearing was held on June 22, 2023, in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of the time, place, and purpose of the hearing was given in accordance with California Sections 54950 et seq. of the Government Code (“Ralph M. Brown Act”) and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to and considered by the Planning Commission at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. The Amendment is not subject to the California Environmental Quality Act (“CEQA”) under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in a physical change to the environment, directly or indirectly. SECTION 3. REQUIRED FINDINGS. An amendment to PC-11 is a legislative act. Neither PC-11 or Chapter 20.56 (Planning and Zoning, Planned Community District Procedures), or Article 2 (Adoption of Regulations) of Chapter 4 (Zoning Regulations) of Division 1 (Planning and Zoning) of Title 7 (Planning and Land Use) of the California Government Code set forth any required findings for either approval or denial of the Amendment. Notwithstanding the foregoing, the Amendment is consistent with the following City of Newport Beach 6th Cycle Housing Element Policy and Policy Action: Finding and Facts in Support of Findings: Housing Policy 4.1 Housing opportunities for as many renter- and owner-occupied households as possible in response to the market demand and RHNA obligation for housing in the City. The Amendment would be a step in the implementation of the 6th Cycle Housing Element by mitigating potential governmental constraints through the reduction of affordable housing percentage from 30 to 15 percent, to facilitating construction of market-rate housing and affordable for all income groups. According to the February 17, 2022, Inclusionary Housing Financial Evaluation, prepared by Keyser Marston Associates for the City of Newport Beach, inclusionary housing percentages higher than 15 percent would likely be too high rendering most residential projects financially infeasible. Reducing the inclusionary percentage would reduce the potential impediment and would also affirmatively further fair housing consistent with Policy Action 4A: Affirmatively Furthering Fair Housing provided in the 6th Cycle Housing Element. 12 Planning Commission Resolution No. PC2023-025 Page 3 of 4 01-17-23 SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby finds this action is covered under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, in accordance with the recitals under Section 2 of this Resolution. 2. The Planning Commission of the City of Newport Beach hereby recommends the City Council of Newport Beach adopt Newport Place Planned Community (PC-11) Text Amendment, which is attached hereto as Exhibit “A”, and incorporated herein by reference. PASSED, APPROVED, AND ADOPTED THIS 22nd DAY OF JUNE, 2023. AYES: NOES: ABSTAIN: ABSENT: BY:_________________________ Curtis Ellmore, Chair BY:_________________________ Sarah Klaustermeier, Secretary 13 Planning Commission Resolution No. PC2023-025 Page 4 of 4 01-17-23 EXHIBIT “A” Amendment to Newport Place Planned Community (PC11) Amend Part III. Residential Overlay Zone, Section IV.A .3 to read as follows: A minimum of 30 15 percent of the units within the residential development shall be affordable to lower-income households and subject to a 30-year affordability covenant. 14 Attachment No. PC 2 City Council Resolution No. 2023-25 15 INTENTIONALLY BLANK PAGE16 RESOLUTION NO. 2023-25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, INITIATING AN AMENDMENT TO THE NEWPORT PLACE PLANNED COMMUNITY DEVELOPMENT PLAN TO REVISE THE MINIMUM AFFORDABILITY PERCENTAGE OF THE RESIDENTIAL OVERLAY (PA2023-0082) WHEREAS, City Council Policy A-1 ("City Council") allows a member of the City Council to request that an item be placed on a future City Council agenda for consideration; WHEREAS, at the April 11, 2023, City Council meeting, City Council Member Erik Weigand requested that an item be placed on a future City Council agenda that reduced the inclusionary housing percentage for the Newport Place Planned Community Development Plan (PC-11) from thirty to fifteen percent; and WHEREAS, City Council desires to initiate an amendment to the Newport Place Planned Community Development Plan (PC-11) related to the minimum affordability percentage of the Residential Overlay in accordance to Section 20. 56.050(E) Development Plan Amendments) and Section 20.56.050(B) (Development Plan) of the Newport Beach Municipal Code. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby initiates an amendment to Newport Place Planned Community Development Plan to lower the minimum affordability percentage of the Residential Overlay. Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 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. 17 Resolution No. 2023-25 Page 2 of 2 Section 4: 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. Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. Anc)PTFr) thic Ath riav of Mav 7(17 mrrmvvr-uma ivrumm: CITY ATTORNEY'S OFFICE A - - (. Aaron C. Harp City Attorney 18 STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2023-25 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the gth day of May, 2023; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Noah Blom, Council Member Brad Avery, Council Member Robyn Grant, Council Member Lauren Kleiman, Council Member Erik Weigand NAYS: None RECUSED: Mayor Pro Tern Will O'Neill, Council Member Joe Stapleton IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this loth day of May, 2023. Leilani I. Brown City Clerk Newport Beach, California 19 June 22, 2023, Planning Commission Item 4 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. 4. NEWPORT PLACE PLANNED COMMUNITY DEVELOPMENT PLAN AMENDMENT (PA2023-0082) 1. A footnote to the staff report says the “Airport Area is located near John Wayne Airport bounded by Jamboree Rd., Campus Dr., and State Route 73.” The proposed resolution refers to the Airport Area as “one of the five focus areas where new housing opportunity sites are identified” in the recently-adopted 6th Cycle Housing Element, and says “At least 2,577 housing units are planned for the Airport Area.” It should be noted that the new Housing Element sometimes refers to its “Airport Area” as the “Airport Area Environs” and it includes opportunity sites outside the Airport Area described, as above, in the existing General Plan Land Use Element. In other words, not all 2,577 “Airport Area” units are planned for the area bounded by Jamboree Rd., Campus Dr., and State Route 73. It should also be noted the reference is to 2,577 units is in addition to the 2,200 assigned to the smaller, traditional Airport Area in the existing Land Use Element. 2. The proposed resolution asserts that the reduction of required affordable housing percentage in Newport Place from 30 to 15 percent is consistent with Housing Policy 4.1 in the City’s new 6th Cycle Housing Element, “and would also affirmatively further fair housing consistent with Policy Action 4A.” While both those assertions could be correct, it is far from obvious how requiring less affordable housing to be built is consistent with either of them. 3. While the staff report asserts the 30 percent requirement may make projects infeasible, it fails to address how it has been possible to approve two projects in Newport Place that supposedly complied with the requirement (Newport Crossings and 1300 Bristol) 4. The staff report also fails to mention Policy Action 1K (“Inclusionary Housing Policy”) which committed the City to adopting an “interim inclusionary policy within 6 months of Housing Element adoption.” Considering the adoption happened in September, I believe that six-month deadline passed in March. Had the Council followed through on its promise to adopt a policy, I think the Commission would have considerably more guidance as to how the present proposal would fit (or not fit) into a larger picture for how the RHNA requirement to build affordable housing will be met. Until the City has an overall policy, this item seems premature to me. Planning Commission - June 22, 2023 Item No. 4a - Additional Materials Received Newport Place Planned Community Amendment (PA2023-0082) Newport Place Planned Community Amendment (PA2023-0082) Planning Commission Public Hearing June 22, 2023 Rosalinh Ung, Principal Planner Jim Campbell, Deputy Community Development Director Planning Commission - June 22, 2023 Item No. 4b - Additional Materials Presented at the Meeting Newport Place Planned Community Amendment (PA2023-0082) Introduction Newport Place Planned Community (PC-11) •City Council Direction •Amendment to revise minimum affordable housing percentage from 30% to 15% 2Community Development Department Planning Commission - June 22, 2023 Item No. 4b - Additional Materials Presented at the Meeting Newport Place Planned Community Amendment (PA2023-0082) Vicinity Map Planning Commission - June 22, 2023 Item No. 4b - Additional Materials Presented at the Meeting Newport Place Planned Community Amendment (PA2023-0082) •Established in early 1970’s for office parks & industrial uses; and •Uses evolved overtime with general service and retail uses, office uses, restaurants and an auto dealership •Introduction of housing is next Newport Place 4Community Development Department Planning Commission - June 22, 2023 Item No. 4b - Additional Materials Presented at the Meeting Newport Place Planned Community Amendment (PA2023-0082) Residential Overlay •Established in 2012 pursuant to 5th Cycle Housing Element policy; •Requires 30% of residential units restricted to lower income households for 30 years; and •Only inclusionary policy within the City Planning Commission - June 22, 2023 Item No. 4b - Additional Materials Presented at the Meeting Newport Place Planned Community Amendment (PA2023-0082) Residential Overlay Planning Commission - June 22, 2023 Item No. 4b - Additional Materials Presented at the Meeting Newport Place Planned Community Amendment (PA2023-0082) Proposed Amendment would: •Reduce the inclusionary percentage from 30% to 15%, nothing more •Consistent with the Housing Element •Affirmatively further fair housing consistent with Policy Action 4A –reduces potential impediment •Consistent with 2022 Inclusionary Housing Financial Evaluation by Keyser Marston Associates 7Community Development Department Planning Commission - June 22, 2023 Item No. 4b - Additional Materials Presented at the Meeting Newport Place Planned Community Amendment (PA2023-0082) California Environmental Quality Act •Exempt •Not a project as defined by CEQA •No development authorized •No physical change to the environment 8Community Development Department Planning Commission - June 22, 2023 Item No. 4b - Additional Materials Presented at the Meeting Newport Place Planned Community Amendment (PA2023-0082) Recommended Actions •Conduct a public hearing; and •Recommend approval of proposed amendment to City Council 9Community Development Department Next Steps •ALUC for consistency determination –July 20, 2023 •City Council hearing (tentative) –July 25, 2023 Planning Commission - June 22, 2023 Item No. 4b - Additional Materials Presented at the Meeting Newport Place Planned Community Amendment (PA2023-0082) 10 Questions and Discussion Rosalinh Ung, Principal Planner 949-644-3208, rung@newportbachca.gov Jim Campbell, Deputy Community Development Director 949-644-3210, jcampbell@newportbachca.gov Planning Commission Public Hearing June 22, 2023 Planning Commission - June 22, 2023 Item No. 4b - Additional Materials Presented at the Meeting Newport Place Planned Community Amendment (PA2023-0082)