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Home My WebLink AboutPC2023-025 - 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)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 Environs (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”), DocuSign Envelope ID: 23A974E3-E32D-4068-94E1-F13D54E51B16 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. DocuSign Envelope ID: 23A974E3-E32D-4068-94E1-F13D54E51B16 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: Barto, Ellmore, Klaustermeier, Langford, and Rosene NOES: None RECUSED: Harris and Lowrey ABSENT: None BY:_________________________ Curtis Ellmore, Chair BY:_________________________ Sarah Klaustermeier, Secretary DocuSign Envelope ID: 23A974E3-E32D-4068-94E1-F13D54E51B16 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. DocuSign Envelope ID: 23A974E3-E32D-4068-94E1-F13D54E51B16