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HomeMy WebLinkAbout2.0_The Champions Club Staff Approval Appeal_PA2023-0138CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT September 21, 2023 Agenda Item No. 2 SUBJECT: The Champions Club Staff Approval Appeal (PA2023-0138) ▪Staff Approval SITE LOCATION: 1107 and 1171 Jamboree Road APPLICANT: Champion Management Group, Inc. OWNER: JK Kallins Investments Newport LLC APPELANT Thomas Duddy PLANNER: David Lee, Senior Planner 949-644-3225, dlee@newportbeachca.gov PROJECT SUMMARY An appeal of the Community Development Director’s August 3, 2023, Staff Approval, authorizing Champion Management Group, Inc. to separately operate six of sixteen (16) existing tennis courts previously operated by the Palisades Tennis Club and finding said change to be minor and in substantial conformance with Use Permit No. UP1697 approved in 1973. There are no physical improvements proposed for the continued tennis operations, and pickleball activities are not proposed at this time. The Palisades Tennis Club will continue to operate the remaining ten existing tennis courts and clubhouse adjacent to the proposed use. RECOMMENDATION 1)Conduct a public hearing; 2)Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; and 3)Adopt Resolution No. PC2023-034 upholding the action of the Community Development Director and approving with modifications the Staff Approval (PA2023- 0138) with the attached Findings and Conditions (Attachment No. PC 1). 1 INTENTIONALLY BLANK PAGE2 The Champions Club Staff Approval Appeal Planning Commission, September 21, 2023 Page 2 VICINITY MAP GENERAL PLAN ZONING LOCATION GENERAL PLAN ZONING CURRENT USE ON-SITE Parks and Recreation (PR) Parks and Recreation (PR) Recreation, Tennis Courts NORTH PR PR Recreation, Palisades Tennis Club SOUTH Visitor Serving Commercial (CV) Commercial Visitor- Serving (CV) Hyatt Hotel EAST Multiple Residential (RM) Sea Island Apartments (PC21) Sea Island Apartments WEST CV CV Hyatt Hotel Champions Club (Parcel 2) Palisades Club (Parcel 1) 3 The Champions Club Staff Approval Appeal Planning Commission, September 21, 2023 Page 3 INTRODUCTION Project Setting The subject property is developed with six tennis courts and a 72-space surface parking lot, and is located on Jamboree Road between Back Bay Drive and San Joaquin Hills Road. Previously, the Palisades Tennis Club operated 16 total tennis courts between Parcel 1 and Parcel 2 of Resubdivision No. 413 (see Vicinity Map on Page 2), which are owned separately. The lease between the Palisades Club and the property owner of Parcel 2 was recently discontinued and a separate operator, the Champions Club, has subsequently entered into a lease agreement to operate the existing 6 tennis courts on Parcel 2. The Palisades Tennis Club will continue to operate the remaining 10 courts and clubhouse on Parcel 1. The property is adjacent to the Hyatt Hotel to the west and south, the Palisades Tennis Club and the Harbor Cove residential community to the north, and the Sea Island residential apartments to the east across Jamboree Road. Although the original tennis club was approved with 78 on-site spaces, subsequent re-striping of the parking lot to accommodate disable parking spaces as well as other changes has resulted in a 72-space parking lot that exists today. Background On October 4, 1973, Use Permit No. UP1697 was approved by the Planning Commission, authorizing the construction of a private tennis club with lighted tennis courts, known as the John Wayne Tennis Club at the time. At the time of the approval, the tennis club consisted of two separate parcels, Parcel 1 and Parcel 2 of Resubdivision No. 413, but jointly owned by The Irvine Company. In addition to the Vicinity Map on Page 2, the parcel map for Resubdivision No. 413 (Attachment No. PC 5) also demonstrates the layout of the parcels. The approval included a total of 16 lighted tennis courts (15 regular courts and one (1) tennis ball machine court), and an approximately 8,100-square-foot, two (2)-level clubhouse consisting of restrooms and locker rooms, lounges, offices, and snack and apparel shops. Hours of operation for the club were limited to between 7 a.m. to midnight, daily. A total of 78 on-site surface parking spaces were provided for the tennis club use and located on Parcel 2. Parcel 1 does not include any parking. Since both parcels were solely operated by the John Wayne Tennis Club, the parking was intended to be provided for all 16 courts. Ingress and egress to both clubs are provided by easement through the Hyatt Hotel overflow parking lots on the eastern side of the hotel near Jamboree Road. As conditioned by UP1697, overflow parking during tournaments was provided through an off-site parking agreement at the hotel property. In 1992, the Irvine Company sold the two parcels to separate owners. Although there were two separate property owners, the courts had remained under a single operator, which was renamed the Palisades Tennis Club. The Palisades Club operated the courts under two separate leases until the lease with Parcel 2, which is now owned in common with the 4 The Champions Club Staff Approval Appeal Planning Commission, September 21, 2023 Page 4 adjacent Hyatt Hotel, was recently discontinued. Subsequently in August of 2023, the Champions Club entered into a lease agreement to operate a tennis club on the 6 courts of Parcel 2. Use of the 6 courts for tennis play and instruction has not commenced pending resolution of the subject appeal. Staff Approval and Subsequent Appeal On August 3, 2023, the Community Development Director approved Staff Approval No. PA2023-0138 authorizing a new operator, Champion Management Group, Inc. to operate the six existing tennis courts located on Parcel 2 under the name “The Champions Club” (Attachment No. PC 2). The staff approval included conditions of approval which ensured that there would be adequate parking for the Palisades Tennis Club within the Hyatt Regency Hotel property. It also ensured that any special events for the Champions Club would be coordinated with the Hyatt Hotel to avoid parking issues. As conditioned, members of the Champions Club would have access to restroom facilities at the Hyatt because the new club would not have access to the existing Palisades clubhouse facilities. The staff approval also specifically conditioned that no pickleball activities of any kind were permitted at the Champions Club. Hotel guests will have fee-based access to the club facilities. Members of the club will have access to the Hyatt hotel’s restroom facilities as they will not have access to the Palisades clubhouse. The operation is separate from the Palisades Tennis Club, which will remain in operation on Parcel 1 with ten (10) existing courts and clubhouse. The applicant is proposing hours of operation between 8 a.m. to 8:30 p.m., daily, which is within the allowed hours of operation per UP1697. No physical improvements are proposed for the request to continue tennis operations. Any future changes or improvements to the project site will require further review by City staff and may require additional entitlements and/or building permits. Pickleball would also require additional analysis due to the intensification of use, and as such, pickleball at the project site is not allowed. On August 14, 2023, an appeal of Staff Approval No. PA2023-0138 was filed by Thomas Duddy. The appeal application, which include the appellant’s grounds for appeal, are included in Attachment No. PC 3. Further discussion of the appeal is addressed on Page 7 of this report. Conduct of Hearing Pursuant to Municipal Code Section 20.64.030.C.3 (Filing and Processing of Appeals and Calls for Review - Conduct of Hearing), a public hearing on an appeal is conducted “de novo,” meaning that it is a new hearing and the prior action of the Community Development Director has no force or effect. The Planning Commission is not bound by the Community Development Director’s prior decision or limited to the issues raised by the appeal. 5 The Champions Club Staff Approval Appeal Planning Commission, September 21, 2023 Page 5 DISCUSSION Analysis General Plan, Zoning Code, and Local Coastal Plan The property is categorized as Parks and Recreation (PR) by the General Plan Land Use Element and located in the PR Zoning District. Additionally, the property is located PR coastal land use and coastal zoning district. These designations are intended to provide for areas appropriate for land used or proposed for active public or private recreational use. A tennis club is a listed example of an allowed use within the PR Zoning District. The six (6) existing tennis courts on Parcel 2 are part of the tennis club originally authorized by UP1697. A new operator on Parcel 2 does not conflict with the allowances of UP1697, as the courts will continue to be used for tennis play and instruction. As conditioned, no pickleball is permitted on any courts as a part of the new operation. Adequate and available parking for both Champions Club and Palisades is also included and all activities are subject to all conditions of UP1697. Modified Parking Use Permit UP1697 requires 78 parking spaces for all tennis operations. As noted, the lot was restriped to improve the layout. As a result, the parking lot on Parcel 2 accommodates 72 spaces. The staff approval authorized parking for the Champions Club tennis uses in both the on-site parking lot (14 spaces) as well as the off-site parking lot of the Hyatt Hotel (43 spaces). An additional 53 parking spaces on-site were designated as hotel parking on Parcel 2 and did not disclose the location of parking for the Palisade Tennis Club. After the appeal, the applicant submitted a modified site plan, showing all 72 existing parking spaces on Parcel 2 as dedicated to the use of both tennis clubs, as well as an additional 6 parking spaces located in the adjacent Hyatt parking lot proximate to the courts. Overall, the site plan demonstrates that a minimum of 78 parking spaces, a majority which are Parcel 2, are provided for both tennis club operators. Staff believes this is substantially conforming to UP1697, which requires 78 parking spaces for the tennis use. As previously stated, Parcel 2 is owned in common with the Hyatt Regency Hotel. Therefore, the Champions Club will have affiliation with the hotel. In addition to the on-site parking lot, the tennis club uses will have the exclusive use of the 6 aforementioned parking spaces located on the adjacent hotel parking lot, as well as access to overflow parking spaces for special events on an as-needed basis. The larger hotel parcel accommodates approximately 700 spaces well over the minimum parking for the 402-room hotel, so dedicating the 6 spaces to the tennis uses as well as continued use of the Hyatt parking lot for special events and tournaments as allowed by UP1697 will continue. 6 The Champions Club Staff Approval Appeal Planning Commission, September 21, 2023 Page 6 Staff Approval Findings Pursuant to Section 20.54.070 (Changes to an Approved Project) of the Newport Beach Municipal Code (NBMC), the Community Development Director may authorize minor changes to an approved site plan, architecture, or the nature of the approved use without a public hearing, and waive the requirement for a new use permit application. In this case, since the Community Development Director has been appealed, the Planning Commission must determine that the new club operator is in substantial conformance with UP1697 because the project’s changes: a. Are consistent with all applicable provisions of this Zoning Code; b. Do not involve a feature of the project that was a basis for or subject of findings or exemptions in a negative declaration or Environmental Impact Report for the project; c. Do not involve a feature of the project that was specifically addressed or was the subject of a condition(s) of approval for the project or that was a specific consideration by the applicable review authority in the project approval; and d. Do not result in an expansion or change in operational characteristics of the use. As previously discussed, the continuation of a tennis club use on Parcel 2 with a new operator is consistent with the PR zone, as the purpose of the zone is to provide for areas of land used for active public or private recreational use. The operator is proposing tennis instruction and play, consistent with UP1697, which authorized a private tennis club with 78 parking spaces on-site. The project will include all existing 72 parking spaces on-site to tennis club uses, which include both the Champions Club and Palisades operations. An additional 6 off-site spaces at minimum will be provided on the adjacent Hyatt hotel parking lot. UP1697 included an Environmental Impact Report (EIR) which discussed the construction of the tennis club, clubhouse, associated parking, etc. and its potential impact on human resources, geologic hazards, flooding, ground water, noise, air resources, vegetation and animal life, traffic, and public recreational facilities. The report concludes that the tennis club does not have a significant effect on the environment. Since there is no change in use of the tennis courts and no new construction, there are no features of the project that can potentially affect the environment. The proposed change of operator on Parcel 2 does not involve a feature that was specifically conditioned or addressed by UP1697. The Champions Club is proposing to operate within the conditioned hours of operation (7 a.m. to midnight, daily). Additional conditions of approval for the club have been included as a part of this Staff Approval to ensure adequate parking is provided for both operators and that there is no pickleball use allowed. 7 The Champions Club Staff Approval Appeal Planning Commission, September 21, 2023 Page 7 The Appeal As previously stated, an appeal of Staff Approval No. PA2023-0138 was filed by Thomas Duddy on August 14, 2023 (Attachment No. PC 3). The appellant is requesting that the Planning Commission reverse the decision based on the following: 1.The Director’s decision did not proceed in the manner required by law. 2.The Director’s decision was an abuse of discretion and was not supported by the findings and the findings are not supported by the evidence. 3.The Director’s decision violated the California Environmental Quality Act (Pub. Resources Code § 21000, et seq.) because it did not consider the “whole of an action,” as required by CEQA Guidelines section 15378. 4.The Director’s decision did not properly consider the relevant provisions of the Coastal Act (Pub. Resources Code, §§30000, et seq.) as it did not properly consider the whole of the action. Pursuant to Section 20.54.070 (Changes to an Approved Project) of the NBMC, the Director may authorize minor changes to an approved site plan, architecture, or the nature of the approved use, without a public hearing, if the required findings could be made. Staff believes that the issuance of a staff approval was appropriate for the request of a different operator for six of the existing tennis courts. The findings required by Section 20.54.070 (Changes to an Approved Project) were addressed in the Staff Approval and are reiterated in the attached draft resolution (Attachment No. PC 1). The request does not authorize a new use, new development, or a change of the existing use; instead, it allows a new and separate operator to continue the existing use authorized by UP1697 given the changed lease arrangements. The additional modification that the applicant has made which provides a majority of the parking for the tennis uses onto Parcel 2 further improves the substantial compliance finding. In summary, staff believes there are not facts that suggest that a new or amended use permit would be required. Staff believes that the Class 1 (Existing Facilities) exemption of the California Environmental Quality Act (CEQA) is appropriate since Class 1 exempts the operation or leasing of existing private facilities. No new development or change in the existing intensity of use is authorized. What is authorized is a continuation of the existing use only and the Coastal Act requirement for a Coastal Development permit is not justified as no new development will occur. Staff believes the appellant is concerned the applicant will convert the courts to accommodate pickleball and that the City has not adequately examined the whole of what the applicant intends. The applicant has not filed an application to change the existing use, the applicant simply wants to continue the existing authorized use. The staff approval preserves existing rights to continue tennis use consistent with UP1697. Should the applicant or other party intend to modify the allowed tennis use of the site in the future to potentially accommodate pickleball, a Conditional Use permit and Coastal Development permit would be required. 8 The Champions Club Staff Approval Appeal Planning Commission, September 21, 2023 Page 8 Summary The site has been utilized as a tennis club since the Planning Commission originally authorized the use in 1973. Although it has been historically been run by one operator, the club is located on two parcels which now has two separate property owners. Parking is exclusively located on the lot proposed to be operated by the Champions Club, whereas Palisades does not have any on-site parking. Aside from clarifying that the new operator has a vested land use right for the tennis operation through the existing use permit, the Community Development Director’s staff approval includes conditions of approval which ensured that parking would be made available to the Palisades Club. It also includes conditions which prohibit pickleball and ensures that restrooms are available for Champions Club members at the Hyatt Hotel. Environmental Review This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3 because it has no potential to have a significant effect on the environment. The Class 1 exemption allows for the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The Staff Approval authorizes a new operator for six existing tennis courts for tennis play and instruction. Public Notice Notice of this hearing was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights-of-way and waterways) including the applicant, and posted on the subject property at least 10 days before the scheduled meeting, 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. Prepared by: Submitted by: _____________________ David Lee, Senior Planner 9 The Champions Club Staff Approval Appeal Planning Commission, September 21, 2023 Page 9 ATTACHMENTS PC 1 Draft Resolution with Findings and Conditions PC 2 Director’s Staff Approval PA2023-0138 (No Attachments) PC 3 Appeal Application PC 4 Correspondence from Property Owner Regarding Parking PC 5 Parcel Map for Subdivision No. 413 PC 6 Use Permit No. UP1697 PC 7 Project Plans 10 Attachment No. PC 1 Draft Resolution with Findings and Conditions 11 INTENTIONALLY BLANK PAGE12 RESOLUTION NO. PC2023-034 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA UPHOLDING THE COMMUNITY DEVELOPMENT DIRECTOR’S APPROVAL AUTHORIZING A NEW OPERATOR FOR SIX EXISTING TENNIS COURTS AND FINDING SUBSTANTIAL CONFORMANCE WITH USE PERMIT NO. UP1697 FOR THE PROPERTY LOCATED AT 1107 AND 1171 JAMBOREE ROAD (PA2023-0138) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Sean Matsler of Cox, Castle, & Nicholson LLP (“Applicant”), concerning property located at 1107 and 1171 Jamboree Road, and legally described as Parcel 2 of Resubdivision No. 413 (“Property”). 2. On October 4, 1973, Use Permit No. UP1697 was approved by the Planning Commission, authorizing the construction of a private tennis club with lighted tennis courts, known as the John Wayne Tennis Club at the time. At the time of the approval, both Parcel 1 and Parcel 2 were owned by The Irvine Company. The approval included a total of 16 tennis courts (15 regular courts and one tennis ball machine court), an approximately 8,100- square-foot, two-level tennis clubhouse consisting of restrooms and locker rooms, lounges, offices, and snack and apparel shops. Additionally, 78 parking spaces were provided in an on-site surface parking lot located on Parcel 2, which accommodated the clubhouse and all tennis courts. Parcel 1 does not include on-site parking. Since both parcels were solely operated by the John Wayne Tennis Club, the parking was intended to be provided for all 16 courts. Use Permit No. UP1697 limited the hours of operation for the club to the hours of 7 a.m. to midnight, daily. Subsequent to the approval of Use Permit No. UP1697, the John Wayne Tennis Club began operations in 1974. In 1992, the Irvine Company sold the two parcels to two separate owners. Although there were two separate property owners, the courts had remained under a single operator, which was renamed the Palisades Tennis Club. The Palisades Club operated the courts under two separate leases until the lease with Parcel 2, which is now owned in common with the adjacent Hyatt Hotel, was recently discontinued. Subsequently in August of 2023, the Champions Club began a lease agreement to operate a tennis club for the six courts of Parcel 2. 3. The Applicant proposes to operate the six existing tennis courts on Parcel 2 for tennis play and instruction, under the name “The Champions Club,” independent of The Palisades Tennis Club, but in substantial conformance with Use Permit No. UP1697 (“Project”). The operation is separate from the Palisades Tennis Club, which will remain in operation on Parcel 1 of Resubdivision No. 413 with ten existing courts. 4. The Property is designated Parks and Recreation (PR) by the General Plan Land Use Element and is located within the Parks and Recreation (PR) Zoning District. 13 Planning Commission Resolution No. PC2023-034 Page 2 of 7 5. The Property is located within the coastal zone. The Coastal Land Use Plan category is Parks and Recreation (PR) and it is located within the Parks and Recreation (PR) coastal zoning district. Since the Project is to change the operator of the existing six tennis courts, there is no physical change to the Property and therefore no intensification of use, a coastal development permit is not required for the Project. 6. The Community Development Director approved a Staff Approval for the Project on August 3, 2023. The proposed change of operator on Parcel 2 is considered minor and does not involve a feature that was specifically conditioned or addressed by Use Permit No. UP1697. Additionally, the proposed hours of operation between the hours of 8:00 am and 8:00 pm are within the hours of operation authorized by Use Permit No. UP1697. The Staff Approval included additional conditions of approval to ensure adequate parking for the existing Palisades Tennis Club of Parcel 1 and that there would be no pickleball activities of any kind on the Property. 7. On August 14, 2023, Thomas Duddy filed an appeal of the Community Development Director’s decision, objecting to the facts in support of the findings in the Staff Approval, compliance with the California Environmental Quality Act, and consistency with the Coastal Act. 8. A public hearing was held on September 21, 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 Government Code Section 65950 et seq. (“Ralph M. Brown Act”) and Chapter 20.62 (Public Hearings) of the Newport Beach Municipal Code (“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. Environmental Impact Report No. EIR038 analyzed all environmental impact associated with Use Permit No. UP1697 and was certified with the original project. The Project does not result in any physical changes to the original project. Rather, the Project would authorize a different operator on Parcel 2 than what was originally approved, therefore, all impacts of the operation of a tennis club were fully analyzed by EIR038. 2. Additionally, this Project is exempt from the California Environmental Quality Act (“CEQA”) under Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 because it has no potential to have a significant effect on the environment. 3. The Class 1 exemption allows for the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Use Permit No. UP1697 was approved by the Planning Commission, authorizing the construction of total of 16 tennis courts (15 regular courts and one tennis ball machine court), an approximately 8,100-square-foot, two-level tennis 14 Planning Commission Resolution No. PC2023-034 Page 3 of 7 clubhouse consisting of restrooms and locker rooms, lounges, offices, and snack and apparel shops on Parcel 1 and Parcel 2. Additionally, 78 parking spaces were provided in an on-site surface parking lot located on Parcel 2, which accommodated the clubhouse and all tennis courts. on Parcel 1 and Parcel 2 were owned by The Irvine Company. The Staff Approval authorizes a new operator for six existing tennis courts for tennis play and instruction with hours of operation within the time frames authorized by Use Permit No. 1693. Therefore, the Project is also categorically exempt under Section 15301. SECTION 3. REQUIRED FINDINGS. Pursuant to Section 20.54.070 (Changes to an Approved Project) of the NBMC, the Community Development Director may authorize minor changes to an approved site plan, architecture, or the nature of the approved use without a public hearing, and waive the requirement for a new use permit application. In this case, the Community Development Director has determined that the new club operator is in substantial conformance with Use Permit No. UP1697 based upon the following findings and facts in support of such findings: Finding: A. Are consistent with all applicable provisions of this Zoning Code. Facts in Support of Finding: 1. The Property is located in the Parks and Recreation (PR) Zoning District, which is intended to provide for areas appropriate for land used or proposed for active public or private recreational use. A tennis club is a listed example of an allowed use within the PR Zoning District. The six existing tennis courts on Parcel 2 are part of the tennis club originally authorized by Use Permit No. UP1697. 2. A new operator on Parcel 2 does not conflict with the allowances of Use Permit No. UP1697, as the courts will continue to be used for tennis play and instruction. As conditioned, no pickleball is permitted on any courts as a part of the new operation. Adequate and available parking for both the Project and Palisades is also included as a condition of approval. 3. Although the original tennis club was approved with 78 on-site spaces, subsequent re- striping of the parking lot has resulted in a 72-space parking lot which exists today. The Applicant is proposing for all 72 on-site parking spaces to be dedicated to the use of both tennis clubs, as well as an additional six parking spaces minimum located on the Hyatt parking lot. Overall, the Applicant is proposing a minimum of 78 parking spaces, a majority which are Parcel 2, to be provided for both tennis club operators, which is in substantial conformance to Use Permit No. UP1697. Finding: B. Do not involve a feature of the project that was a basis for or subject of findings or exemptions in a negative declaration or Environmental Impact Report for the project. 15 Planning Commission Resolution No. PC2023-034 Page 4 of 7 Facts in Support of Finding: 1. Environmental Impact Report No. EIR038, fully analyzed environmental impacts associated with the construction of the tennis club, clubhouse, associated parking, etc. and its potential impact on human resources, geologic hazards, flooding, ground water, noise, air resources, vegetation and animal life, traffic, and public recreational facilities. The EIR was certified contemporaneous with approval of Use Permit No. UP1697 and concluded that the tennis club did not have a significant effect on the environment. 2. There are no physical changes proposed by the Project. The Project proposes a new operator for six of the existing 16 tennis courts on Parcel 2, separately from the existing Palisades Tennis Club on Parcel 1. Since there is no change in use of the tennis courts, the hours of operation are consistent with the original approval, and parking would still be provided to both Parcel 1 and Parcel 2, there are no features of the project that can potentially affect the environment. 3. The findings set forth in SECTION 2 (CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION) are incorporated herein by reference. Finding: C. Do not involve a feature of the project that was specifically addressed or was the subject of a condition(s) of approval for the project or that was a specific consideration by the applicable review authority in the project approval. Facts in Support of Finding: 1. The proposed change of operator on Parcel 2 does not involve a feature that was specifically conditioned or addressed by Use Permit No. UP1697. The Champions Club is proposing to operate between 8 a.m. to 8:30 p.m., daily, which are within the conditioned hours of operation (7 a.m. to midnight, daily). 2. There are no physical changes proposed by the Project. Any future changes are subject to building permits and a potential amendment to Use Permit No. UP1697. 3. Additional conditions of approval for the club have been included as a part of this Staff Approval to ensure that the existing tennis use does not expand or change where it would become inconsistent with Use Permit No. UP1697. Finding: D. Do not result in an expansion or change in operational characteristics of the use. Facts in Support of Finding: 1. Fact A.2 is hereby incorporated by reference. 16 Planning Commission Resolution No. PC2023-034 Page 5 of 7 2. Fact C.2 is hereby incorporated by reference. The following facts in support of findings support that the Director’s decision proceeded in the manner required by law, was not an abuse of discretion and was supported by the findings and the findings are not supported by the evidence, did not violate the California Environmental Quality Act, and considered the relevant provisions of the Coastal Act: Finding: E. The Staff Approval Proceeded in a Manner Required by Law. Facts in Support of Finding: 1. A staff approval by the Community Development Director was appropriate for the request of a different operator on six of the existing tennis courts. The findings required by Section 20.54.070 (Changes to an Approved Project) were addressed in the approved Staff Approval. Section 20.54.070 does not require a public hearing. Therefore, the Staff Approval was not noticed to the public. 2. The request does not authorize a new use, new development, or a change of the existing use; instead, it allows a new and separate operator to continue the existing use given the changed lease agreements. Finding: F. The Staff Approval was not abuse of discretion and are supported by the evidence. Fact in Support of Finding: 1. The recitals above and facts in support of findings A through D above are incorporated herein by reference. Finding: G. The Staff Approval complies with CEQA. Fact in Support of Finding: 1. SECTION 2 (CALIFORNIA ENVIORNMENTAL QUALITY ACT DETERMINATION) and Finding B are incorporated herein by reference. Finding: H. The Staff Approval complies with the California Coastal Act. 17 Planning Commission Resolution No. PC2023-034 Page 6 of 7 Fact in Support of Finding: 1. No new development or change in the existing intensity of use is authorized. Instead, a continuation of the existing use is authorized. The Coastal Act requirement for a Coastal Development Permit is not justified as no new development will occur. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby finds this project is categorically exempt from the California Environmental Quality Act under Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 because it has no potential to have a significant effect on the environment. 2. The Planning Commission of the City of Newport Beach hereby upholds the Community Development Director’s approval of the Staff Approval (PA2023-0138), subject to the conditions outlined in Exhibit “A,” which is attached hereto and incorporated by reference. The conditions of approval in Exhibit “A” are in addition to the conditions of approval set forth in Use Permit No. UP1697. 3. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal is filed with the City Clerk by the provisions of Title 20 Planning and Zoning, of the Newport Beach Municipal Code. PASSED, APPROVED, AND ADOPTED THIS 21ST DAY OF SEPTEMBER, 2023. AYES: NOES: ABSTAIN: ABSENT: BY:_________________________ Curtis Ellmore, Chair BY:_________________________ Tristan Harris, Secretary 18 Planning Commission Resolution No. PC2023-034 Page 7 of 7 EXHIBIT “A” CONDITIONS OF APPROVAL (Project-specific conditions are in italics) 1.The development shall be in substantial conformance with the approved site plan and floor plan stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2.All applicable conditions of approval for Use Permit No. UP1697 shall remain in effect. 3.All parking located within Parcel 2 of Resubdivision No. 413 shall available for tennis club use per the approved plans. A minimum of 78 spaces shall be available for use within Parcel 2 of Resubdivision No. 413 and the adjacent hotel property per the approved plans. 4.Any special events for the tennis clubs shall be coordinated with the Hyatt Regency Hotel to avoid potential issues with parking. 5.Members of the Tennis Club on Parcel 2 shall have access to restroom facilities at the Hyatt Regency Hotel. 6.There shall be no pickleball activities of any kind within the tennis clubs unless an amendment to the use permit is approved. 7.The Community Development Director may add to or modify conditions to this staff approval, or revoke this staff approval upon determination that the operations, which is the subject of this staff approval, causes injury, or is detrimental to the public health, safety, peace, or general welfare of the community or if the property is operated or maintained so as to constitute a public nuisance. 8.To the fullest extent permitted by law, Applicant shall indemnify, defend and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney’s fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to City’s approval of The Champions Club including, but not limited to, a staff approval under PA2023-0138. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorney’s fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by Applicant, City, and/or the parties initiating or bringing such proceeding. The Applicant shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. The Applicant shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this condition. 19 INTENTIONALLY BLANK PAGE20 Attachment No. PC 2 Director’s Staff Approval PA2023-0138 (No Attachments) 21 INTENTIONALLY BLANK PAGE22 COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION 100 Civic Center Drive, P.O. Box 1768, Newport Beach, CA 92658-8915 949-644-3200 www.newportbeachca.gov COMMUNITY DEVELOPMENT DIRECTOR ACTION LETTER Subject: The Champions Club (PA2023-0138) ▪ Staff Approval Site Location 1107 Jamboree Road Applicant Champion Management Group, Inc. Legal Description Parcel 2 of Resubdivision No. 413 On August 3, 2023, the Community Development Director approved a staff approval authorizing a new operator, Champion Management Group Inc. (“Applicant”), to operate six existing tennis courts located on Parcel 2 of Resubdivision No. 413 (“Property”) under the name “The Champions Club”. These six (6) courts were previously a part of the Palisades Tennis Club, which will continue to separately operate the ten (10) existing tennis courts and clubhouse located on Parcel 1 of Resubdivision No. 413. The Community Development Director finds that the change in operator for the six (6) courts on Parcel 2 to be in substantial conformance with the previously approved Use Permit No. UP1697. LAND USE AND ZONING • General Plan Land Use Plan Category: PR (Parks and Recreation) • Zoning District: PR (Parks and Recreation) • Coastal Land Use Category: PR (Parks and Recreation) • Coastal Zoning District: PR (Parks and Recreation) BACKGROUND On October 4, 1973, Use Permit No. UP1697 was approved by the Planning Commission, authorizing the construction of a private tennis club with lighted tennis courts, known as the John Wayne Tennis Club at the time. At the time of the approval, both Parcel 1 and Parcel 2 were owned by The Irvine Company. A vicinity map (Attachment No. CD 1) and the parcel map for Resubdivision No. 413 (Attachment No. CD 2) has been to demonstrate the layout of the parcels. The approval included a total of 16 tennis courts (15 regular courts and one (1) tennis ball machine court), an approximately 8,100-square-foot, two (2)-level tennis clubhouse consisting of restrooms and locker rooms, lounges, offices, and snack and apparel shops. Additionally, 78 parking spaces were provided in an on-site surface parking lot located on Parcel 2, which accommodated the clubhouse and all tennis courts. Parcel 1 does not include parking. Since both parcels were solely operated by the John Wayne Tennis Club, 23 The Champions Club (PA2023-0138) August 4, 2023 Page 2 Tmplt: 07/25/19 the parking was intended to be provided for all 16 courts. UP1697 limited the hours of operation for the club to the hours of 7 a.m. to midnight, daily. All conditions of approval are included in Attachment No. CD 3. Subsequent to the approval of UP1697, the John Wayne Tennis Club began operations in 1974. In 1995, the change of ownership led to the change of name to the Palisades Tennis Club. Parcel 1 and Parcel 2 have become separately owned, with Parcel 2 being owned in common with the Hyatt Regency Hotel. PROPOSED CHANGES The Applicant is proposing to operate the six (6) existing tennis courts on Parcel 2 for tennis play and instruction, under the name “The Champions Club.” The operation is separate from the Palisades Tennis Club, which will remain in operation on Parcel 1 with ten (10) existing courts. The Applicant is proposing hours of operation between 8 a.m. to 8:30 p.m., daily. Pickleball of any form is strictly prohibited at the club unless an amendment is filed for a new use permit (Condition of Approval No. 6). Since the on-site parking lot is located on Parcel 2, the property owner has provided confirmation that parking will continue to be provided to members of the Palisades Tennis Club (Attachment No. CD 5). This has been included as Condition of Approval No. 3 as a part of this Staff Approval. As previously stated, Parcel 2 is owned in common with the Hyatt Regency Hotel. Therefore, the Champions Club will have affiliation with the hotel. In addition to the on-site parking lot, the club will have the exclusive use of 43 parking spaces located on the adjacent hotel parking lot, as well as access to overflow parking spaces for special events on an as-needed basis. Hotel members will have fee-based access to the club facilities. Members of the club will have access to the hotel’s restroom facilities. Since the clubhouse and restrooms are located within the Palisade’s property, members of the Champions Club will not have access to Palisade’s facilities. No physical improvements are proposed for the Applicant’s request to continue tennis operations. Any future changes or improvements to the club will require further review by City staff and may require additional entitlements and/or building permits. FINDINGS Pursuant to Section 20.54.070 (Changes to an Approved Project) of the Newport Beach Municipal Code (NBMC), the Community Development Director may authorize minor changes to an approved site plan, architecture, or the nature of the approved use without a public hearing, and waive the requirement for a new use permit application. In this case, the Community Development Director has determined that the new club operator is in substantial conformance with UP1697 because the project’s changes: 24 The Champions Club (PA2023-0138) August 4, 2023 Page 3 Tmplt: 07/25/19 Finding: A. Are consistent with all applicable provisions of this Zoning Code. Facts in Support of Finding: 1. The Property is located in the Parks and Recreation (PR) Zoning District, which is intended to provide for areas appropriate for land used or proposed for active public or private recreational use. A tennis club is a listed example of an allowed use within the PR Zoning District. The six (6) existing tennis courts on Parcel 2 are part of the tennis club originally authorized by UP1697. 2. A new operator on Parcel 2 does not conflict with the allowances of UP1697, as the courts will continue to be used for tennis play and instruction. As conditioned, no pickleball is permitted on any courts as a part of the new operation. Adequate and available parking for both the Project and Palisades is also included as a condition of approval. Finding: B. Do not involve a feature of the project that was a basis for or subject of findings or exemptions in a negative declaration or Environmental Impact Report for the project. Fact in Support of Finding: 1. UP1697 included an Environmental Impact Report which discussed the construction of the tennis club, clubhouse, associated parking, etc. and its potential impact on human resources, geologic hazards, flooding, ground water, noise, air resources, vegetation and animal life, traffic, and public recreational facilities. The report concludes that the tennis club does not have a significant effect on the environment. 2. There are no physical changes proposed. The Applicant is proposing to operate the six (6) existing courts on Parcel 2, separately from the existing Palisades Tennis Club on Parcel 1. Since there is no change in use of the tennis courts, there are no features of the project that can potentially affect the environment, Finding: C. Do not involve a feature of the project that was specifically addressed or was the subject of a condition(s) of approval for the project or that was a specific consideration by the applicable review authority in the project approval. Facts in Support of Finding: 1. The proposed change of operator on Parcel 2 does not involve a feature that was specifically conditioned or addressed by UP1697. The Champions Club is 25 The Champions Club (PA2023-0138) August 4, 2023 Page 4 Tmplt: 07/25/19 proposing to operate within the conditioned hours of operation (7 a.m. to midnight, daily). 2.There are no physical changes proposed. Any future changes are subject to building permits and a potential amendment to UP1697. 3.Additional conditions of approval for the club have been included as a part of this Staff Approval to provide zoning clearance for the new use. Finding: D.Do not result in an expansion or change in operational characteristics of the use. Facts in Support of Finding: 1.Fact A.2 is hereby incorporated as reference. 2.Fact C.2 is hereby incorporated as reference. CONDITIONS 1.The development shall be in substantial conformance with the approved site plan and floor plan stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2.All applicable conditions of approval for Use Permit No. UP1697 shall remain in effect. 3.Adequate parking for the Palisades Tennis Club of Parcel 1 shall be provided on the Hyatt Regency Hotel property. 4.Any special events for the Tennis Club on Parcel 2 shall be coordinated with the Hyatt Regency Hotel to avoid potential issues with parking. 5.Members of the Tennis Club on Parcel 2 shall have access to restroom facilities at the Hyatt Regency Hotel. 6.There shall be no pickleball activities of any kind within the Tennis Club on Parcel 2. 7.The Community Development Director may add to or modify conditions to this staff approval, or revoke this staff approval upon determination that the operations, which is the subject of this staff approval, causes injury, or is detrimental to the public health, safety, peace, or general welfare of the community or if the property is operated or maintained so as to constitute a public nuisance. 8.To the fullest extent permitted by law, Applicant shall indemnify, defend and hold harmless City, its City Council, its boards and commissions, officials, officers, 26 The Champions Club (PA2023-0138) August 4, 2023 Page 5 Tmplt: 07/25/19 employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney’s fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to City’s approval of the The Champions Club including, but not limited to, a staff approval under PA2023- 0138. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorney’s fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by Applicant, City, and/or the parties initiating or bringing such proceeding. The Applicant shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. The Applicant shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this condition. APPEAL PERIOD: An appeal or call for review may be filed with the Director of Community Development or City Clerk, as applicable, within fourteen (14) days following the date the action or decision was rendered. For additional information on filing an appeal, contact the Planning Division at 949-644-3200. Prepared by: ____________________ David S. Lee Senior Planner Approved by: Assistant City Manager JM/dl Attachments: CD 1 Vicinity Map CD 2 Parcel Map for Subdivision No. 413 CD 3 Use Permit No. UP1697 CD 4 Applicant’s Project Description CD 5 Correspondence from Property Owner Regarding Parking CD 6 Project Plans 27 INTENTIONALLY BLANK PAGE28 Attachment No. PC 3 Appeal Application 29 INTENTIONALLY BLANK PAGE30 31 32 Attachment No. PC 4 Correspondence from Property Owner Regarding Parking 33 INTENTIONALLY BLANK PAGE34 From: Murillo, Jaime Sent: August 01, 2023 7:55 AM To: Lee, David Subject: FW: Hyatt Regency Newport Beach - Tennis Court Sublease From: Gary Stougaard <gstougaard@chelseahp.com> Sent: August 01, 2023 2:14 AM To: Murillo, Jaime <JMurillo@newportbeachca.gov> Cc: Matsler, Sean <SMatsler@coxcastle.com> Subject: Hyatt Regency Newport Beach - Tennis Court Sublease [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Mr. Murillo – My name is Gary Stougaard and I am the Owners Representative for WCP Newport LLC, the owner of the Hyatt Regency Newport Beach Hotel. As you are aware, we are currently finalizing a sublease agreement with Champion Management Group (“CMG”) for the use of the six tennis courts located on the land which WCP Newport LLC leases from JGKallins Investments Newport, LLC. CMG plans to covert these courts for future Pickleball use, but have applied to the City of Newport Beach for an interim use agreement for their continued use as tennis courts. While we finalize the terms of this agreement and related parking facilities with CMG, the purpose of this correspondence is to confirm that we will also provide interim access to on-site parking to Palisades Tennis Club members while negotiations proceed on a new parking lease with the Palisades Tennis Club. Please contact me directly if you have any questions or I can provide any additional information relative to our agreement with CMG and the status of our negotiations with Palisades for future parking for Club members. I can be reached anytime at (619) 709-4461. Thank you, Gary Stougaard Authorized Representative WRC Newport LLC. Gary A. Stougaard 35 INTENTIONALLY BLANK PAGE36 Attachment No. PC 5 Parcel Map for Subdivision No. 413 37 INTENTIONALLY BLANK PAGE38 39 INTENTIONALLY BLANK PAGE40 Attachment No. PC 6 Use Permit No. UP1697 41 INTENTIONALLY BLANK PAGE42 43 44 45 46 47 48 49 50 51 52 53 INTENTIONALLY BLANK PAGE54 Attachment No. PC 7 Project Plans 55 INTENTIONALLY BLANK PAGE56 10'-1/2"Planted Area Planted Area Planted Area 59'-11 1/2"60'-1/2"59'-11 3/4"130'-1"Drive Aisle 120'-0" Tennis Parking (35 Angled Stalls)Hyatt Regency DrivePlanted Area Hyatt ValetParking Area Planted AreaHyatt ValetParking AreaHyatt Regency Drive Planted AreaSidewalkSidewalk TennisParking(3 Stalls)Golf Parking (7 Stalls) Tennis Parking (4 Stalls)NExhibit A Parking Tennis Parking Hyatt Valet Parking Golf Parking ValetONLY Entrance Drive Aisle N.T.S.Hyatt Valet Parking28'-3"Tennis Parking (37 Stalls) Drive Aisle Drive Aisle Hyatt Valet Parking AreaHyatt Valet Parking(Tennis parking area to serve Champion Tennis Club and, subject to negotiation of a lease, Palisades Tennis Club) 57 From:Matsler, Sean To:Planning Commission Cc:Lee, David; Murillo, Jaime; Campbell, Jim Subject:Continuance Request - The Champions Club Staff Approval (PA2023-0138) Date:September 20, 2023 2:30:30 PM Attachments:image001.png [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Chair Ellmore and Commissioners, Champion Management Group respectfully requests that the Planning Commission proceed with its vote on Item #2 (Champions Club Staff Approval / PA2023-0138) as scheduled on September 21, notwithstanding appellant’s continuance request. The passage of another month before resolution of this appeal presents a needless hardship for Champion. Champion took possession of the six tennis courts that are the subject of the appeal hearing on August 24th. However, under NBMC Section 20.64.030.C.1, Champion has not been able to operate those courts for tennis due to the pending appeal. So they sit empty today. I understand that the appellant’s attorney requested a continuance of the September 21 Planning Commission hearing because the appellant cannot be personally present at the hearing. This request arrived via e-mail just over 48 hours before tomorrow’s hearing. Since the Commission is dark on October 5, the soonest available continued hearing date would be October 19. In other words, another month would pass during which these six courts would sit fallow. Although I can understand why the appellant would personally want to be present at the hearing, the appellant is represented by sophisticated legal counsel who can ably present his client’s case to this Commission. I also note that members of Champion’s team rearranged their own travel schedules to attend in person tomorrow, given the importance of the hearing. Thank you for your consideration. Best, Sean Sean Matsler Cox, Castle & Nicholson LLP Planning Commission - September 21, 2023 Item No. 2a - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) 3121 Michelson Drive | Ste 200 | Irvine, CA 92612 direct: 949.260.4652 | mobile: 714.330.0797 main: 949.260.4600 smatsler@coxcastle.com | vcard | bio | website This communication is intended only for the exclusive use of the addressee and may contain information that is privileged or confidential. If you are not the addressee, or someone responsible for delivering this document to the addressee, you may not read, copy or distribute it. Any unauthorized dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please call us promptly and securely dispose of it. Thank you. Planning Commission - September 21, 2023 Item No. 2a - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) From:Campbell, Jim Subject:Request for Continuance - Appeal: The Champions Club Staff Approval (PA2023-0138) Date:September 20, 2023 8:25:28 AM Attachments:image003.pngimage004.pngimage005.pngimage002.png Importance:High Chair Elmore and Commissioners, I wanted to share the email below from the appellant’s legal counsel requesting a continuance of Item 2 on this week’s agenda. Apparently the appellant is unable to attend. Staff is ready to conduct the hearing and we anticipate multiple speakers given the interest in this application on both sides. Staff will support a Commission decision to continue if that is the desire of the Commission. The applicant has been informed of the request. I willannounce this request for a continuance at that point in the agenda, and then the Commission can consider it granting the request. See you Thursday evening. Jim Campbell Deputy Community Development Director From: Michael W. Shonafelt <Michael.Shonafelt@ndlf.com> Sent: September 19, 2023 1:54 PM To: Lee, David <dlee@newportbeachca.gov> Cc: Tom Duddy <tomeduddy@gmail.com> Subject: Request for Continuance - Appeal: The Champions Club Staff Approval (PA2023-0138) Importance: High [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. David, Further to our telephone discussion earlier today and my voicemail to Jaime Murillo, Principal Planner, we hereby request a continuance of Item 2 on the September 21, 2023, Planning Commission agenda, specifically, appeal of the The Champions Club Staff Approval (PA2023-0138). Appellant, Tom Duddy (here copied) has been out of town and cannot be present for the September 21, 2023, meeting. Both Mr. Duddy, and I as his counsel, believe it is imperative for him to be present as he is the appellant in the case. Please confirm that our request will be submitted to the Planning Commission. Otherwise please feel free to call me at the number below if you have any questions. Michael W. Shonafelt​​​​ Partner Planning Commission - September 21, 2023 Item No. 2b - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) 949.271.7196 | Michael.Shonafelt@ndlf.com Newmeyer & Dillion LLP 895 Dove Street, 2nd Floor Newport Beach, CA 92660 newmeyerdillion.com | View my bio Planning Commission - September 21, 2023 Item No. 2b - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138)