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HomeMy WebLinkAbout2023-13 - Approving an Amendment to the Newport Place Planned Community Development Plan to Revise the Minimum Affordability Housing Percentage of the Residential Overlay (PA2023-0082)ORDINANCE NO. 2023-13 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING AN AMENDMENT TO NEWPORT PLACE PLANNED COMMUNITY DEVELOPMENT PLAN TO REVISE THE MINIMUM AFFORDABILITY HOUSING PERCENTAGE OF THE RESIDENTIAL OVERLAY (PA2023-0082) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, Newport Place is a Planned Community (PC), generally bounded by MacArthur Boulevard, Jamboree Road, Birch Street and Bristol Street North, and was originally designed in the early 1970's with clusters of office parks and industrial uses; WHEREAS, 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; WHEREAS, 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; WHEREAS, 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"); WHEREAS, the Overlay was necessary to secure certification of the 4th Cycle Housing Element because, at that time, it had a greater potential to accommodate the City's Regional Housing Needs Assessment ("RHNA") for affordable housing; WHEREAS, the Overlay implemented the Mixed Use — Horizontal 2 (MU-H2) General Plan Land Use category for parcels within PC-11; Ordinance No. 2023-13 Page 2of5 WHEREAS, the Overlay included use and development standards for residential projects, including an inclusionary housing requirement that 30% of the residential units in a development be made affordable to lower -income households for a minimum of 30 years; WHEREAS, on September 13, 2022, the City Council adopted the 6th Cycle Housing Element for the 2021-2029 period, which was certified by the State Department of Housing and Community Development ("HCD") on October 5, 2022; WHEREAS, the Airport Area Environs is one of the five focus areas where new housing opportunity sites are identified to satisfy the 6th Cycle Housing Element's RHNA allocation of 4,845 new housing units; WHEREAS, at least 2,577 housing units are planned within the Airport Area Environs, which comprises approximately 25% of the City's planned housing capacity; WHEREAS, 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 in the 6th Cycle Housing Element; 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 PC-11's Overlay from 30% to 15%; WHEREAS, on May 9, 2023, the City Council adopted Resolution No. 2023-25, initiating an amendment to PC-11 related to the minimum affordability percentage of the PC-11's Overlay ("Amendment"), in accordance with Section 20.56.050(B) (Development Plan Amendments) and Section 20.56.050(E) (Development Plan) of the Newport Beach Municipal Code ("NBMC"); WHEREAS, a public hearing was held by the Planning Commission on June 22, 2023, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the public hearing was given in accordance with Government Code Section 54950 et seq. ("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 public hearing; Ordinance No. 2023-13 Page 3 of 5 WHEREAS, at the public hearing, the Planning Commission adopted Resolution No. PC2023-025 by a majority vote (5 ayes, 0 nays, 2 recusals), recommending the City Council approve the Amendment; WHEREAS, due to the proposed Amendment, California Public Utilities Code Section 21676(b) requires the City to refer Amendment to the Orange County Airport Land Use Commission ("ALUC") for a determination that the Amendment is consistent with the Airport Environs Land Use Plan ("AELUP") for John Wayne Airport; WHEREAS, on July 20, 2023, the ALUC found the Amendment is consistent with the AELUP; and WHEREAS, the City Council held a public hearing on July 25, 2023, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the public hearing was given in accordance with California Public Utilities Code Section 21676(b), the 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 City Council at this public meeting. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council hereby approves the amendment to the Newport Place Planned Community Development Plan (PC-11)which is attached hereto as Exhibit "A" and incorporated herein by reference with all other provisions of the Newport Place Planned Community (PC-11)and supporting maps remaining unchanged and in full force and effect. Section 2: Newport Place Planned Community Development Plan Amendment 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 6t" Cycle Housing Element Policy and Policy Action: Ordinance No. 2023-13 Page 4 of 5 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%, facilitating construction of market -rate housing and affordable housing 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% 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 6tn Cycle Housing Element. Section 3: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 4: If any section, subsection, sentence, clause or phrase of this ordinance 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 ordinance. The City Council hereby declares that it would have passed this ordinance 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 5: The City Council finds the introduction and adoption of this ordinance 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. Ordinance No. 2023-13 Page 5 of 5 Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty calendar days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 25th day of July, 2023, and adopted on the 22nd day of August, 2023, by the following vote, to -wit: AYES: Mayor Blom, Council Member Avery, Council Member Grant, Council Member Kleiman, Council Member Weigand NAYS: ABSENT: Mayor Pro Tern O'Neill RECUSED: Council Member Stapl ATTEST: ,:��'k/pC> LEILANI I. BROWNI CITY CLERK; . _ )41 APPROVED AS TO FORM: CITY TORNEY'S OFFICE. R N C. HARP, CITY ATTORNEY Attachment(s): Exhibit A- Amendment to Newport Place Planned Community (PC-11) Exhibit "A" Newport Place Planned Community (PC11) Amendment Amend Part III. Residential Overlay Zone, Section IV.A .3 to read as follows: A minimum of 38 15 percent of the units within the residential development shall be affordable to lower -income households and subject to a 30-year affordability covenant. 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; that the foregoing ordinance, being Ordinance No. 2023-13 was duly introduced on the 251h day of July, 2023, at a regular meeting, and adopted by the City Council at a regular meeting duly held on the 22nd day of August, 2023, and that 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: Council Member Joe Stapleton ABSENT: Mayor Pro Tern Will O'Neill IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 23rd day of August, 2023. STATE OF CALIFORNIA } COUNTY OF ORANGE } CITY OF NEWPORT BEACH } Vim'kkfi�- Leilani I. Brown, MMC City Clerk City of Newport Beach, California CERTIFICATE OF PUBLICATION ss. I, LEILANI I. BROWN, City Clerk of the City of Newport Beach, California, do hereby certify that Ordinance No. 2023-13 has been duly and regularly published according to law and the order of the City Council of said City and that same was so published in The Daily Pilot, a newspaper of general circulation on the following dates: Introduced Ordinance: July 29, 2023 Adopted Ordinance: August 26, 2023 �'i�tr✓MI0E�-- In witness whereof, I have hereunto subscribed my name this kh day of Ai-g t, 2023. �S, 1p _ Leilani I. Brown, MM - X City Clerk City of Newport Beach, California �LlFO