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Home My WebLink About03_Pine Knot Motel CDP_PA2023-0027CITY OF NEWPORT BEACH ZONING ADMINISTRATOR STAFF REPORT September 28, 2023 Agenda Item No. 3 SUBJECT: Pine Knot Motel (PA2023-0027) ▪Coastal Development Permit SITE LOCATION: 6302 West Coast Highway APPLICANT: Eric Aust, Architect OWNER: 6302 INVESTMENT LLC PLANNER: Joselyn Perez, Associate Planner 949-644-3312, jperez@newportbeachca.gov LAND USE AND ZONING •General Plan Land Use Plan Category: Visitor Serving Commercial (CV) •Zoning District: Commercial Visitor-Serving (CV) •Coastal Land Use Plan Category: Visitor Serving Commercial (0.0 – 0.75 FAR) (CV- A) •Coastal Zoning District: Commercial Visitor-Serving (CV) PROJECT SUMMARY The Applicant proposes to rehabilitate a 12-room motel that was significantly damaged by fire in 2018 and partially demolished pursuant to Emergency Coastal Development Permit No. ECD2018-150. The project involves replacing the demolished portions of the structure, repairing the uninhabitable portions of the structure, the addition of a partial second story at the front of the property, construction of a commercial trash enclosure, and site improvements. Those improvements include but are not limited to, hardscaping, drainage, and restriping of the existing parking lot. Approximately 306 square feet will be added to the total gross floor area of the structure to modernize and enhance the usability of the motel. The rehabilitated motel will maintain a relatively similar footprint to the damaged structure and will maintain the same number of guest rooms. RECOMMENDATION 1)Conduct a public hearing; 2)Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 under Class 2 (Replacement or Reconstruction) 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; and 1 Tmplt: 07/25/19 3)Adopt Draft Zoning Administrator Resolution No. _ approving the Coastal Development Permit filed as PA2023-0027 (Attachment No. ZA 1). 2 Tmplt: 07/25/19 DISCUSSION Background •Pine Knot Motel previously operated as a low cost overnight visitor accommodations (LCOVA) as defined in Section 21.48.025(C) (Visitor Accommodations, Protection of Low Cost Visitor Accommodations) of the Newport Beach Municipal Code (NBMC). It provided 12 guest rooms, caretaker quarters, lobby, central courtyard, rooftop deck, and surface parking. •On April 10, 2018, a structure fire occurred within the southwestern corner of the subject project and significantly damaged the motel. The Chief Building Official red-tagged (unsafe to enter) rooms 1 through 4 with the remainder of rooms yellow-tagged (given limited access to retrieve personal items only). •Rooms 1 through 4 were demolished pursuant to Emergency Coastal Development Permit No. ECD2018-150 with the remaining units left uninhabitable. A copy of ECD2018-150 is included as Attachment no. ZA 2. •The fire significantly damaged the units and ended the availability of visitor accommodations at the site. Land Use and Permitting Requirements •The subject property is located within the Commercial Visitor-Serving (CV) Coastal Zoning District. The CV Coastal Zone provides areas appropriate for the development of accommodations, goods, and services that primarily serve. A motel provides a service that will primarily be used by visitors and is consistent with the City’s Coastal Land Use Plan, General Plan, and Zoning Code. •While Section 21.52.035 (Projects Exempt from Coastal Development Permit Requirements) of the NBMC exempts the replacement of structures destroyed by disaster, the rehabilitation includes the construction of an additional story that increases the existing structure’s height by more than ten (10) percent and a coastal development permit (CDP) is required. •The subject property is located within the coastal zone, but outside of the California Coastal Commission (CCC) Appeal Area. The Coastal Commission does not have jurisdiction over the project because it is outside the Appeal Area and because prior development was not subject to a coastal development permit issued by the CCC. The project is not eligible for a waiver for de minimis development as the project requires deviations from Local Coastal Program Implementation Plan standards. •A certificate of compliance was recently recorded establishing the subject property as one legal parcel. The parcel is developed with a partially demolished and uninhabitable motel. 3 Tmplt: 07/25/19 • As shown in Attachment No. ZA 3, the surrounding neighborhood is predominantly developed with either single or two (2)-story single-unit and two (2)-unit dwellings. Properties fronting West Coast Highway are nonresidential and are typically one (1) to two (2) stories tall. The notable exception being the three (3)-story hotel to the immediate east of the project site. The proposed design, bulk, and scale of the rehabilitated motel is consistent with the existing neighborhood pattern of development. • The motel previously operated without a conditional use permit (CUP) and prior to the current NBMC use regulations requiring motels obtain a CUP to operate within the CV zone. Pursuant to Section 20.38.030 (Determination of Nonconformity) of the NBMC, Pine Knot Motel is considered a nonconforming use due to its lack of a CUP. Section 20.38.080 (Repair of Damaged or Partially Destroyed Nonconformities) of the NBMC allows for a nonconforming use that was involuntarily damaged or destroyed to be reestablished by right if restoration work is commenced within twelve (12) months of the date of damage, unless otherwise allowed by the Director, is diligently pursued to completion, and is not subject to an abatement period. The previous owners diligently pursued a viable rehabilitation plan after the fire and through the COVID-19 pandemic and ultimately sold the property. Current ownership is now seeking CDP approval to implement the rehabilitation plan. The property is not subject to an abatement period. As the project meets the requirements to reestablish the nonconforming use, no CUP is required pursuant to NBMC Section 20.38.080 (Repair of Damaged or Partially Destroyed Nonconformities). • Section 20.38.050 (Nonconforming Uses) restricts the ways in which a nonconforming use may be changed, expanded, increased, or intensified. It provides that an intensification is allowed subject to approval of a CUP. An increase in floor area, lot area, or in occupancy load are provided as examples of what constitutes an intensification. Section 20.12.020 (Rules of Interpretation) however clarifies that the headings of the chapters, sections, and subsections of this Zoning Code, together with the accompanying examples and explanatory notes, are inserted as a matter of convenience and are not intended to define, limit, or enlarge the scope or meaning of this Zoning Code or its provisions. Given the parking requirements for motels is set by number of guest rooms rather than gross floor area, the appropriate measure of intensification is the required parking for the project. The nominal addition of 306 square feet of gross floor area helps modernize and enhance usability of the motel, thereby supporting feasibility of the rehabilitation work. The addition is not an intensification of use, and no CUP is required pursuant to NBMC Section 20.38.050 (Nonconforming Uses). Project and Development Standards • The motel will be rehabilitated to provide 12 boutique guest rooms, a lobby with coffee bar, a courtyard with bocce ball and fire pit, lounge, storage lockers, second- floor deck space, laundry facilities, and beach friendly amenities such as bicycles, towels, and chairs. 4 Tmplt: 07/25/19 •The rehabilitated motel and accessory structures conform to applicable development standards, including floor area limit, setbacks, and height, apart from parking, as evidenced by the project plans and illustrated in Table 1 below. Table 1 – Development Standards Development Standard Standard Proposed Setbacks (min.) Front 0 0 feet Side – Prospect Street 0 3 feet, 3 inches Side – Alley 0 19 feet, 5 inches Rear 0 2 feet, 10 inches Maximum Gross Floor Area 4,406.5 square feet 4,406 square feet Maximum Allowable Floor Area Ratio .5 FAR .5 FAR Parking (min.) 12 spaces 7 spaces Height (max.) 26-foot flat roof 31-foot sloped roof 26-foot top of guardrail 31-foot sloped roof •A motel use requires one (1) parking space per guest room. The 12-room motel requires 12 off-street parking spaces. The most recent parking lot configuration provided nine (9) parking spaces, resulting in the structure being nonconforming due to parking. The proposed project will further reduce the total number of parking spaces to seven (7) due to the required restriping of the parking lot to comply with current parking lot and Americans with Disabilities Act (ADA) standards. Section 20.40.110 (Adjustments to Off-Street Parking Requirements) of the NBMC, allows the Director to administratively reduce parking requirements when the loss of parking space is related to required ADA upgrades that accompany tenant improvements however Title 21 (Local Coastal Program Implementation Plan) of the NBMC lacks this provision. While there is an LCP amendment in progress to allow for this ADA related reduction, the amendment is still pending approval by the California Coastal Commission (CCC). Instead, the loss of two (2) existing spaces is requested pursuant to Section 21.40.110 (Adjustments to Off-Street Parking Requirements) of the NBMC. Adjustment to Off-Street Parking •Section 21.40.110 (Adjustments to Off-Street Parking Requirements) of the NBMC allows the number of parking spaces to be reduced subject to demonstrating a reduced parking demand and a lack of impact to coastal access. •Given the motel is a visitor serving use, it is reasonable to assume not all guests will arrive by personal vehicle. Some guests are likely to arrive via rideshare or carpool and will not need on-site parking. •The site is served by regular bus service, with an Orange County Transit Authority (OCTA) bus stop approximately one (1) block to the east. 5 Tmplt: 07/25/19 •There is on-street parking available along West Coast Highway, Seashore Drive, and there are multiple municipal lots along Seashore Drive. Two (2) of the municipal lots are located less than 300 feet from the project site. •The motel will provide bicycles and on-site bike parking for use by guests. •The motel is small in scale and will operate with a limited number of employees at any given time. •The project will ultimately increase coastal access for disabled individuals. The most recent parking lot layout did not provide an ADA compliant space or ADA compliant guest rooms. The restriping of the parking lot will provide one (1) ADA compliant space and the rehabilitated motel will provide two (2) ADA compliant guest rooms. •While Section 21.40.070 (Development Standards for Parking Areas) of the NBMC does not contain standard vehicle space requirements for parking provided at a 49- degree angle, the parking lot layout has been reviewed and accepted by the Public Works Department. •Section 21.38.060 (Nonconforming Parking) of the NBMC allows for a nonconforming structure or use to be enlarged by up to ten (10) percent of its existing gross floor area if the required parking for the additional square footage is provided. As the required parking for a motel use is based on number of guest rooms rather than gross floor area of the structure, no additional parking is required. Visitor Accommodations •Pursuant to Section 21.48.025 (Visitor Accommodations) of the NBMC, applications involving the development of new visitor accommodations require the review authority to consider the development’s ability to otherwise protect, encourage, or provide low cost visitor-serving and recreational facilities on the project site or in the immediately adjacent area; the impact to, and ability to provide, public recreational opportunities; the feasibility to rehabilitate existing low cost accommodations to meet a minimum acceptable level of comfort and hospitality while maintaining the ability to provide low cost visitor accommodations; and the range of room types and room rates Citywide. •A feasibility and impact assessment report was prepared by PKF Hospitality Group, dated July 2023, and is included as Attachment No. ZA 4. The report found that the motel would need to charge an Average Daily Rate (ADR) of $325 to achieve a 75% occupancy rate and operate successfully. •Section 21.48.025 (Visitor Accommodations) of the NBMC defines a low-cost visitor accommodation as the average daily room rate of all economy hotels and motels in the City that have room rates that are below the Statewide average daily 6 Tmplt: 07/25/19 room rate or lower. The report presents the statewide ADR as $188 with only one (1)hotel, the 164-room Extended Stay America located at 4881 Birch Street, as providing LCOVA. While the project does not reduce the availability of LCOVA, the new accommodations would fail to provide a range of affordability, including at least twenty-five (25) percent of the rooms as LCOVA as required by NBMC Section 21.48.025.C.4 (Visitor Accommodations, Protection of Low Cost Visitor Accommodations). The report also details how high land values within the City generally render sites unsuitable for the development of LCOVA. •As the project fails to provide low-cost visitor-serving and recreational facilities, mitigation commensurate with the impact is required. Condition of Approval No. 2 requires that the Applicant pay an in-lieu fee for the failure to provide 25 percent of new accommodations (i.e., 3 rooms) as LCOVA. Prior to the issuance of a building permit, the applicant will pay an in-lieu fee in the amount of $25,000 per room not provided as LCOVA, for a total of $75,000. •The in-lieu fee paid by the applicant will benefit the Fostering interest in Nature (FiiN) program and fulfill the provision of lower-cost overnight opportunities. •The FiiN program operates as a 3-day, 2-night program for sixteen (16) sessions over eight (8) weeks and reaches a minimum of 560 students per year. FiiN partners with Newport Dunes to provide student and teacher accommodations, meals, and amenities to the program. FiiN also partners with Newport Bay Conservancy (NBC), who has served as the primary program operator since it started in 2019. FiiN provides students with a diverse environmental education experience and highlights the importance of coastal and estuarine environments. Lessons and activities take place at the Back Bay Science Center and within the natural settings of Upper Newport Bay and Big Canyon. The program helps foster increased awareness and need for environmental conservation and stewardship of the natural world. The curriculum also begins to stimulate and encourage interest in scientific inquiry and research involving natural environments and ecosystems. Many FiiN attendees have had limited exposure to nature-based recreation activities and experience riding on a boat, viewing wildlife, kayaking, camping in a tent, and roasting a marshmallow over a campfire for the first time. Hazards •The development is located on an inland property, in a developed area, approximately 600 feet from Semeniuk Slough and 800 feet from the mean high- water line of the Pacific Ocean. The site is separated from Semeniuk Slough by multiple blocks of residential properties. The site is separated by the Pacific Ocean by multiple blocks of residential properties and West Coast Highway. The lowest finished floor elevation of the first floor of the structure is 9.67 feet based on the North American Vertical Datum of 1988 (NAVD88) which complies with the minimum 9.0-foot (NAVD 88) elevation standard for interior livable areas within new structures/new development. The identified distances from the coastal hazard areas, coupled with the 9.67-foot NAVD88 finish floor elevation, help ensure the project is reasonably safe for the economic life of the structure. 7 Tmplt: 07/25/19 • The property is located in an area known for the potential of seismic activity and liquefaction. All projects are required to comply with the California Building Code (CBC) and Building Division standards and policies. Geotechnical investigations specifically addressing liquefaction are required to be reviewed and approved prior to the issuance of a building permit. Permit issuance is also contingent on the inclusion of design mitigation identified in the investigations. Construction plans are reviewed for compliance with approved investigations and CBC prior to building permit issuance. Water Quality • Pursuant to Section 21.35.030 (Construction Pollution Prevention Plan) of the Municipal Code, a Construction Pollution Prevention Plan (CPPP) is required to implement temporary Best Management Practices (BMPs) during construction to minimize erosion and sedimentation and to minimize pollution of runoff and coastal waters derived from construction chemicals and materials. A CPPP has been provided and construction plans and activities will be required to adhere to the CPPP. • Pursuant to Municipal Code Section 21.35.050 (Water Quality and Hydrology Plan), a preliminary Water Quality and Hydrology Plan (WQHP) is required. The preliminary WQHP has been reviewed and approved by the City’s Engineer Geologist. The WQHP includes a polluted runoff and hydrologic site characterization, a sizing standard for BMPs, use of an LID approach to retain the design storm runoff volume on site, and documentation of the expected effectiveness of the proposed BMPs. Construction plans will be reviewed for compliance with the approved WQHP prior to building permit issuance. Public Access and Views • The project site is not located between the nearest public road and the sea or shoreline. As such, it is not necessary to assess the consistency with the public access and public recreation policies of Chapter 3 of the Coastal Act. However, vertical access to the beach is available in proximity to the site, along Prospect Street. Lateral access to the coast begins at the Prospect Street end and is available along the beach. The project does not include any features that would obstruct access along these routes. • The project site is not located adjacent to a coastal view road, public access way, or Coastal Viewpoint as identified in the Coastal Land Use Plan. The nearest designated public viewpoint is located at Newport Shores Park and overlooks the Semeniuk Slough. The viewpoint is approximately 600 feet to the east of the site and the site is not within the viewshed of the slough from that point. The nearest coastal view road is a portion of West Coast Highway that begins at the Santa Ana River, approximately 2,500 feet to the west of the site. The motel is not within the viewshed of the ocean from this roadway. Additionally, the motel has been shuttered and fenced off since the structure fire. The rehabilitation of the motel will remedy a blighted condition and provide a significant aesthetic improvement to the 8 Tmplt: 07/25/19 neighborhood. The building complies with applicable height limitations and maintains a building envelope consistent with the existing neighborhood pattern of development. The project does not contain any unique features that would degrade the visual quality of the coastal zone. ENVIRONMENTAL REVIEW This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 under Class 2 (Replacement or Reconstruction) 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. PUBLIC NOTICE Notice of this public hearing was published in the Daily Pilot, mailed to all owners and residential occupants 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 hearing, 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. APPEAL PERIOD: This action shall become final and effective 14 days following the date the Resolution is adopted unless within such time an appeal or call for review is filed with the Community Development Director in accordance with the provisions of Title 21 (Local Coastal Implementation Plan) of the Newport Beach Municipal Code. For additional information on filing an appeal, contact the Planning Division at 949-644-3200. Prepared by: JM/jp Attachments: ZA 1 ZA 2 ZA 3 ZA 4 ZA 5 Draft Resolution Emergency Coastal Development Permit No. ECD2018-150 Vicinity Map Feasibility and Impact Assessment, prepared by PKF Hospitality Group Project Plans 9 Attachment No. ZA 1 Draft Resolution 10 10-18-2021 RESOLUTION NO. ZA2023-### A RESOLUTION OF THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A COASTAL DEVELOPMENT PERMIT TO ALLOW THE ADDITION OF A PARTIAL SECOND STORY AND THE REHABILITATION OF A 12-ROOM MOTEL LOCATED AT 6302 WEST COAST HIGHWAY (PA2023-0027) THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Eric Aust, Architect (Applicant), with respect to property located at 6302 West Coast Highway and legally described as a portion of Lots 3, 4, 5, and 6, Block 3, Seashore Colony Tract, requesting approval of a coastal development permit (CDP). 2. The applicant proposes to rehabilitate a 12-room motel that was significantly damaged by fire in 2018 and partially demolished pursuant to Emergency Coastal Development Permit No. ECD2018-150. The project involves replacing the demolished portions of the structure, repairing the uninhabitable portions of the structure, the addition of a partial second story at the front of the property, construction of a commercial trash enclosure, and site improvements. Those improvements include but are not limited to, hardscaping, drainage, and restriping of the existing parking lot. Approximately 306 square feet will be added to the total gross floor area of the structure as part of the rehabilitation. The motel will maintain a relatively similar footprint to the damaged structure and will maintain the same number of guest rooms. 3. The subject property is categorized as Visitor Serving Commercial (CV) by the General Plan Land Use Element and is located within the Commercial Visitor-Serving (CV) Zoning District. 4. The subject property is located within the coastal zone, but outside of the California Coastal Commission (CCC) Appeal Area. The Coastal Commission does not have jurisdiction over the project because it is outside the Appeal Area and because prior development was not subject to a coastal development permit issued by the CCC. The Coastal Land Use Plan category is Visitor Serving Commercial (0.0 – 0.75 FAR) (CV-A) and it is located within the Commercial Visitor-Serving (CV) Coastal Zone District. 5. The motel previously operated without a conditional use permit (CUP) and prior to the current NBMC use regulations requiring motels obtain a CUP to operate within the CV zone. Pursuant to Section 20.38.030 (Determination of Nonconformity) of the NBMC, Pine Knot Motel is considered a nonconforming use due to its lack of a CUP. Section 20.38.080 (Repair of Damaged or Partially Destroyed Nonconformities) of the NBMC allows for a nonconforming use that was involuntarily damaged or destroyed to be reestablished by right if restoration work is commenced within twelve (12) months of the date of damage, unless otherwise allowed by the Director, is diligently pursued to completion, and is not 11 Zoning Administrator Resolution No. ZA2023-### Page 2 of 11 10-05-2021 subject to an abatement period. The previous owners diligently pursued a viable rehabilitation plan after the fire and through the COVID-19 pandemic and ultimately sold the property. Current ownership is now seeking CDP approval to implement the rehabilitation plan. The property is not subject to an abatement period. As the project meets the requirements to reestablish the nonconforming use, no CUP is required pursuant to NBMC Section 20.38.080. 6. Section 20.38.050 (Nonconforming Uses) restricts the ways in which a nonconforming use may be changed, expanded, increased, or intensified. It provides that an intensification is allowed subject to approval of a CUP. An increase in floor area, lot area, or in occupancy load are provided as examples of what constitutes an intensification. Section 20.12.020 (Rules of Interpretation) however clarifies that the headings of the chapters, sections, and subsections of this Zoning Code, together with the accompanying examples and explanatory notes, are inserted as a matter of convenience and are not intended to define, limit, or enlarge the scope or meaning of this Zoning Code or its provisions. Given the parking requirements for motels is set by number of guest rooms rather than gross floor area, the appropriate measure of intensification is the required parking for the project. The nominal addition of 306 square feet of gross floor area helps modernize and enhance usability of the motel, thereby supporting feasibility of the rehabilitation work. The addition is not an intensification of use, and no CUP is required pursuant to NBMC Section 20.38.050 (Nonconforming Uses). 7. A public hearing was held on September 28, 2023, online via Zoom. A notice of time, place and purpose of the hearing was given in accordance with the Newport Beach Municipal Code (NBMC). Evidence, both written and oral, was presented to, and considered by, the Zoning Administrator at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. This project is categorically exempt pursuant to Title 14 of the California Code of Regulations Section 15302, Division 6, Chapter 3, Guidelines for Implementation of the California Environmental Quality Act (CEQA) under Class 2 (Replacement or Reconstruction), because it has no potential to have a significant effect on the environment. 2. Class 2 exempts the replacement or reconstruction of existing structures where the new structure will be located on the same site as the replaced structure and the replacement will have substantially the same purpose and capacity as the replaced structure. The proposed project will rehabilitate a partially destroyed motel. The motel will maintain the same number of guest rooms and a similar footprint on the same site as the existing structure. SECTION 3. REQUIRED FINDINGS. In accordance with Section 21.52.015. F. (Coastal Development Permits, Findings and Decision) of the Newport Beach Municipal Code, the following findings and facts in support of such findings are set forth: 12 Zoning Administrator Resolution No. ZA2023-### Page 3 of 11 10-05-2021 Finding: A.Conforms to all applicable sections of the certified Local Coastal Program. Facts in Support of Finding: 1)The proposed development complies with applicable development standards including, but not limited to, floor area limitation, setbacks, and height. a)The maximum gross floor area limitation is 4,406.5 square feet (0.50 FAR) and the proposed floor area of the motel is 4,406 square feet. b)The CV Coastal Zoning District only requires a side setback when a property abuts a residential use and only requires a rear setback when the property abuts either an alley or a residential use. No front setback is required. As the subject property does not abut any residentially zoned properties and is abutted to the rear by a commercially zoned property, no building setbacks are required. c)The base height limit of the zoning district is 26 feet for flat elements and 31 feet for sloping roofs (minimum 3:12 slope). The highest guardrail is approximately 26 feet from established grade (9.56 feet NAVD88) and the highest ridge is no more than 31 feet from established grade, which comply with the maximum height requirements. d)Pursuant to Table 21.40-1 (Off-Street Parking Requirements) of the NBMC, a motel use requires one parking space per guest room. The 12-room motel requires 12 off-street parking spaces. The most recent parking lot configuration provided nine (9)parking spaces, resulting in the structure being nonconforming due to parking. The proposed project will further reduce the total number of parking spaces to seven due to the required restriping of the parking lot to comply with current parking lot and Americans with Disabilities Act (ADA) standards. The loss of two existing spaces is requested pursuant to Section 21.40.110 (Adjustments to Off-Street Parking Requirements) of the NBMC. 2)The project site is located within the West Newport neighborhood known as Newport Shores. The neighborhood was developed prior to the existence of minimum parking requirements and many properties do not provide the code required minimums. Section 21.40.110 (Adjustments to Off-Street Parking Requirements) of the NBMC allows the number of parking spaces to be reduced subject to demonstrating a reduced parking demand and a lack of impact to coastal access. The following site and operational characteristics support the reduction of required off-street parking: a.As the motel is a visitor serving use, it is reasonable to assume not all guests will arrive by vehicle. Some guests are likely to arrive via rideshare and will not need on- site parking. 13 Zoning Administrator Resolution No. ZA2023-### Page 4 of 11 10-05-2021 b. Some guests, especially families traveling with children, are likely to book more than one (1) room without arriving in more than one (1) vehicle. Likewise, groups staying at the motel are likely to carpool and will not arrive individually. c. The site is served by regular bus service, with an Orange County Transit Authority (OCTA) bus stop approximately one (1) block to the east. d. There is on-street parking available along West Coast Highway, Seashore Drive, and there are multiple municipal lots along Seashore Drive. Two (2) of the municipal lots are located less than 300 feet from the project site. e. The project site is within walking distance of coastal resources that guests will be able to access. For example, the site is less than 400 feet from a large, sandy, beach. Beach volleyball courts are available off of the Grant Street end, less than .33 miles from the site. Additionally, the motel will have bicycles and on-site bicycle parking available for use by guests that wish to visit destinations beyond walking distance, such as the Balboa Peninsula, the Newport Pier, or popular surfing locations within the area. f. The motel is small in scale and will operate with a limited number of employees at any given time. g. The project will ultimately increase coastal access for disabled individuals. The prior parking lot layout did not provide an ADA compliant space. The restriping of the parking lot will provide one (1) ADA compliant space and the rehabilitated motel will provide two (2) ADA compliant guest rooms. 3) While Section 21.40.070 (Development Standards for Parking Areas) of the NBMC does not contain standard vehicle space requirements for parking provided at a 49-degree angle, the parking lot layout has been reviewed and accepted by the Public Works Department. 4) The motel does not provide the required number of parking spaces and is considered nonconforming pursuant to Section 21.38.060 (Nonconforming Parking) of the NBMC. Section 21.38.060 (Nonconforming Parking) of the NBMC allows for a nonconforming structure or use to be enlarged by up to ten (10) percent of its existing gross floor area if the required parking for the additional square footage is provided. As the required parking for a motel use is based on number of guest rooms provided rather than gross floor area of the structure, no additional parking is required. 5) The surrounding neighborhood is predominantly developed with either single or two (2)- story duplexes. Properties fronting West Coast Highway are nonresidential and typical one (1) to two (2) stories tall. The notable exception being the three (3)-story hotel to the immediate east of the project site. The proposed design, bulk, and scale of the rehabilitated motel is consistent with the existing neighborhood pattern of development. 6) While the motel previously operated as a low cost overnight visitor accommodations (LCOVA) as defined in Section 21.48.025(C) of the NBMC, the April 10, 2018, structure 14 Zoning Administrator Resolution No. ZA2023-### Page 5 of 11 10-05-2021 fire that occurred at the subject project left guest rooms 1 through 4 red-tagged (unsafe to enter) with the remainder of guest rooms were yellow-tagged (given limited access to retrieve personal items only). Rooms 1 through 4 were demolished pursuant to Emergency Coastal Development Permit No. ECD2018-150 with the remaining rooms left uninhabitable. The fire significantly damaged the units and ended the availability of visitor accommodations at the site. 7)Pursuant to Section 21.48.025 (Visitor Accommodations) of the NBMC, applications involving the development of new visitor accommodations require the review authority to consider the development’s ability to otherwise protect, encourage, or provide low cost visitor-serving and recreational facilities on the project site or in the immediately adjacent area; the impact to, and ability to provide, public recreational opportunities; the feasibility to rehabilitate existing low cost accommodations to meet a minimum acceptable level of comfort and hospitality while maintaining the ability to provide low cost visitor accommodations; the range of room types and room rates Citywide. 8)A feasibility and impact assessment report was prepared by PKF Hospitality Group, dated July 2023. The report found that the motel would need to charge an Average Daily Rate (ADR) of $325 to achieve a 75% occupancy rate and operate successfully. 9)The report presents the statewide ADR as $188 with only one (1) hotel, Extended Stay America located at 4881 Birch Street, as providing LCOVA. The report concludes that while the project does not reduce the availability of LCOVA, the new accommodations fail to provide a range of affordability, including at least twenty-five (25) percent of the rooms as LCOVA as required by NBMC Section 21.48.025.C.4. The report also adds that high land values within the City generally render sites unsuitable for the development of LCOVA. 10)As the project fails to provide low cost visitor-serving and recreational facilities, the project impacts the availability of LCOVA. Pursuant to NBMC Section 21.48.025.C.5 (Visitor Accommodations, Protection of Low Cost Visitor Accommodations), mitigation commensurate with the impact is required. Condition of Approval No. 2 requires that the applicant pay an in-lieu fee for inability to provide 25 percent of new accommodations as low cost. The applicant will pay an in-lieu fee in the amount of $25,000 per room not provided as LCOVA, for a total of $75,000. 11)The development is located on an inland property in a developed area approximately 600 feet from Semeniuk Slough and 800 feet from mean high water line of the Pacific Ocean. The site is separated from Semeniuk Slough by multiple blocks of residential development. The site is separated by the Pacific Ocean by multiple blocks of residential development, a park, and West Coast Highway. The lowest finished floor elevation of the first floor of the structure is 9.67 feet based on the North American Vertical Datum of 1988 (NAVD88), which complies with the minimum 9.0-foot (NAVD 88) elevation standard for interior livable areas within new structures and/or new development. The identified distances from the coastal hazard areas, coupled with the 9.67-foot NAVD88 finish floor elevation, will help to ensure the project is reasonably safe for the economic life of the structure. 15 Zoning Administrator Resolution No. ZA2023-### Page 6 of 11 10-05-2021 12) The property is located in an area known for the potential of seismic activity and liquefaction. All projects are required to comply with the California Building Code (CBC) and Building Division standards and policies. Geotechnical investigations specifically addressing liquefaction are required to be reviewed and approved prior to the issuance of building permits. Permit issuance is also contingent on the inclusion of design mitigation identified in the investigations. Construction plans are reviewed for compliance with approved investigations and CBC prior to building permit issuance. 13) A Construction Erosion Control Plan was provided to implement temporary Best Management Practices (BMPs) during construction to minimize erosion and sedimentation and to minimize pollution of runoff and coastal waters derived by construction chemicals and materials. The project design also addresses water quality through the inclusion of a post-construction drainage system that includes drainage and percolation features designed to retain dry weather and minor rain event runoff on-site. Any water not retained on-site is directed to the City’s storm drain system. 14) Pursuant to Municipal Code Section 21.35.050 (Water Quality and Hydrology Plan), due to the proximity of the development to the shoreline and the development containing more than 75 percent of impervious surface area, a Water Quality and Hydrology Plan (WQHP) is required. A preliminary WQHP has been prepared for the project by Toal Engineering Inc., dated, January 25, 2023. The WQHP includes a polluted runoff and hydrologic site characterization, a sizing standard for BMPs, use of an LID approach to retain the design storm runoff volume on site, and documentation of the expected effectiveness of the proposed BMPs. 15) The project site is not located adjacent to a coastal view road, public access way, or Coastal Viewpoint as identified in the Coastal Land Use Plan. The nearest designated public viewpoint is located at Newport Shores Park and overlooks the Semeniuk Slough. The viewpoint is approximately 600 feet to the east of the site and the site is not within the viewshed of the slough from that point. The nearest coastal view road is a portion of West Coast Highway that begins at the Santa Ana River, approximately 2,500 feet to the west of the site. The motel is not within the viewshed of the ocean from this roadway. Additionally, the motel has been shuttered and fenced off since the structure fire. The rehabilitation of the motel will remedy a blighted condition and provide a significant aesthetic improvement to the neighborhood. The building complies with applicable height limitations and maintains a building envelope consistent with the existing neighborhood pattern of development. The project does not contain any unique features that would degrade the visual quality of the coastal zone. 16 Zoning Administrator Resolution No. ZA2023-### Page 7 of 11 10-05-2021 Finding: B. Conforms with the public access and public recreation policies of Chapter 3 of the Coastal Act if the project is located between the nearest public road and the sea or shoreline of any body of water located within the coastal zone. Fact in Support of Finding: The project site is not located between the nearest public road and the sea or shoreline. As such, it is not necessary to assess the consistency with the public access and public recreation policies of Chapter 3 of the Coastal Act. However, vertical access to the beach is available in proximity to the site, along Prospect Street. Lateral access to the coast begins at the Prospect Street end and is available along the beach. The project does not include any features that would obstruct access along these routes. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Zoning Administrator of the City of Newport Beach hereby finds this project is categorically exempt from the California Environmental Quality Act pursuant to Section 15302 under Class 2 (Replacement or Reconstruction) 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 Zoning Administrator of the City of Newport Beach hereby approves the Coastal Development Permit, subject to the conditions set forth in Exhibit “A,” which is attached hereto and incorporated by reference. 3. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal or call for review is filed with the Community Development Director in accordance with the provisions of Title 21 Local Coastal Program (LCP) Implementation Plan, of the Newport Beach Municipal Code. PASSED, APPROVED, AND ADOPTED THIS 28TH DAY OF SEPTEMBER, 2023. _____________________________________ Benjamin M. Zdeba, Zoning Administrator 17 Zoning Administrator Resolution No. ZA2023-### Page 8 of 11 10-05-2021 EXHIBIT “A” CONDITIONS OF APPROVAL 1.The development shall be in substantial conformance with the approved site plan, floor plans and building elevations stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2.Prior to the issuance of a building permit, the applicant shall pay an in-lieu fee in the amount of $75,000 for inability to provide 25 percent of new accommodations as low cost. 3.Bicycles and on-site bicycle parking shall be provided for guest use. 4.No demolition or construction materials, equipment debris, or waste, shall be placed or stored in a location that would enter sensitive habitat, receiving waters, or a storm drain or result in impacts to environmentally sensitive habitat areas, streams, the beach, wetlands or their buffers. No demolition or construction materials shall be stored on public property. 5.The applicant is responsible for compliance with the Migratory Bird Treaty Act (MBTA). In compliance with the MBTA, grading, brush removal, building demolition, tree trimming, and similar construction activities shall occur between August 16 and January 31, outside of the peak nesting period. If such activities must occur inside the peak nesting season from February 1 to August 15, compliance with the following is required to prevent the taking of native birds pursuant to MBTA: A.The construction area shall be inspected for active nests. If birds are observed flying from a nest or sitting on a nest, it can be assumed that the nest is active. Construction activity within 300 feet of an active nest shall be delayed until the nest is no longer active. Continue to observe the nest until the chicks have left the nest and activity is no longer observed. When the nest is no longer active, construction activity can continue in the nest area. B.It is a violation of state and federal law to kill or harm a native bird. To ensure compliance, consider hiring a biologist to assist with the survey for nesting birds, and to determine when it is safe to commence construction activities. If an active nest is found, one (1) or two (2) short follow-up surveys will be necessary to check on the nest and determine when the nest is no longer active. 6.Best Management Practices (BMPs) and Good Housekeeping Practices (GHPs) shall be implemented prior to and throughout the duration of construction activity as designated in the Construction Erosion Control Plan. 7.The discharge of any hazardous materials into storm sewer systems or receiving waters shall be prohibited. Machinery and equipment shall be maintained and washed in confined areas specifically designed to control runoff. A designated fueling and vehicle 18 Zoning Administrator Resolution No. ZA2023-### Page 9 of 11 10-05-2021 maintenance area with appropriate berms and protection to prevent spillage shall be provided as far away from storm drain systems or receiving waters as possible. 8.Debris from demolition shall be removed from work areas each day and removed from the project site within 24 hours of the completion of the project. Stock piles and construction materials shall be covered, enclosed on all sites, not stored in contact with the soil, and located as far away as possible from drain inlets and any waterway. 9.Trash and debris shall be disposed in proper trash and recycling receptacles at the end of each construction day. Solid waste, including excess concrete, shall be disposed in adequate disposal facilities at a legal disposal site or recycled at a recycling facility. 10.Revisions to the approved plans may require an amendment to this coastal development permit or the processing of a new coastal development permit. 11.The project is subject to all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 12.The applicant shall comply with all federal, state, and local laws. Material violation of any of those laws in connection with the use may be cause for revocation of this coastal development permit. 13.This coastal development permit may be modified or revoked by the Zoning Administrator if determined that the proposed uses or conditions under which it is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity or if the property is operated or maintained so as to constitute a public nuisance. 14.Prior to the issuance of a building permit, the applicant shall submit a final construction erosion control plan. The plan shall be subject to the review and approval by the Building Division. 15.Prior to the issuance of a building permit, the applicant shall submit a final drainage and grading plan. The plan shall be subject to the review and approval by the Building Division. 16.Prior to the issuance of a building permit, a copy of the Resolution, including conditions of approval Exhibit “A” shall be incorporated into the Building Division and field sets of plans. 17.Prior to the issuance of a building permit, the final WQHP/WQMP shall be reviewed and approved by the Building Division. Implementation shall be in compliance with the approved CPPP and WQHP/WQMP and any changes could require separate review and approval by the Building Division. 18.Construction activities shall comply with Section 10.28.040 (Construction Activity – Noise Regulations) of the Newport Beach Municipal Code, which restricts hours of noise-generating construction activities that produce noise to between the hours of 7:00 19 Zoning Administrator Resolution No. ZA2023-### Page 10 of 11 10-05-2021 a.m. and 6:30 p.m., Monday through Friday, and 8:00 a.m. and 6:00 p.m. on Saturday. Noise-generating construction activities are not allowed on Saturdays, Sundays or Holidays. 19. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 and other applicable noise control requirements of the Newport Beach Municipal Code. The maximum noise shall be limited to no more than depicted below for the specified time periods unless the ambient noise level is higher: Between the hours of 7:00AM and 10:00PM Between the hours of 10:00PM and 7:00AM Location Interior Exterior Interior Exterior Residential Property 45dBA 55dBA 40dBA 50dBA Residential Property located within 100 feet of a commercial property 45dBA 60dBA 45dBA 50dBA Mixed Use Property 45dBA 60dBA 45dBA 50dBA Commercial Property N/A 65dBA N/A 60dBA 20. Prior to the issuance of a building permit, the applicant shall pay any unpaid administrative costs associated with the processing of this application to the Planning Division. 21. Should the property be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by the current property owner or agent. 22. This coastal development permit shall expire unless exercised within 24 months from the date of approval as specified in Section 21.54.060 (Time Limits and Extensions) of the Newport Beach Municipal Code, unless an extension is otherwise granted. 23. 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 Pine Knot Motel including, but not limited to, Coastal Development Permit (PA2023-0027). This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' 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. 20 Zoning Administrator Resolution No. ZA2023-### Page 11 of 11 10-05-2021 Building Division 24. Exterior walls and walls between onsite buildings shall comply with CBC 705 regarding fire rating and allowable openings. 25. Newly constructed buildings shall comply with Chapter 11B & 11B-24 transient lodging of the 2022 CBC. 26. Guest rooms and common areas on the second floor shall provide the same experience as accommodations on the first floor. 27. Exterior walls and walls between onsite buildings shall comply with CBC 705 regarding fire rating and allowable openings. Fire/Life Safety 28. NFPA 13 fire sprinklers shall be required. 29. A fire alarm in compliance with NFPA 72 and Chapter 9 of 2022 CFC shall be required. Public Works Department 30. The parking lot layout shall comply with layout stamped and dated with the date of this approval. 31. No encroachments, including but not limited to, foundation of structure is permitted with the West Coast Highway or Prospect Street Right of Way. 32. A new sewer clean out shall be installed on all existing sewer laterals in accordance with City Standard 406. 21 Attachment No. ZA 2 Emergency Coastal Development Permit No. ECD2018-150 22 COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION 100 Civic Center Drive, P.O. Box 1768, Newport Beach, CA 92658-8915 (949) 644-3200 www.newportbeachca.gov EMERGENCY COASTAL DEVELOPMENT PERMIT APPLICATION: Coastal Development Permit No. CD2018-050 (PA2018-115) APPLICANT: Duane Wengier LOCATION: 6302 West Coast Highway, Newport Beach, CA On July 30, 2018, the Community Development Director (Director) authorized an emergency coastal development permit (CDP), Coastal Development Permit No. CD2018- 050.The Director’s determination is final and based on the facts and findings, and subject to the conditions, listed below. WORK AUTHORIZED Demolition of four (4) motel units destroyed by fire. COASTAL ZONING DISTRICT/COASTAL LAND USE PLAN Zone: CV (Commercial Visitor-Serving) CLUP: CV (Commercial Visitor-Serving) I.NATURE OR CAUSE OF THE EMERGENCY On April 10, 2018, a structure fire occurred at the subject address. The structure was declared unsafe to enter for Units 1 through 5, and no occupancy posted for the remainder of the units. On April 10, 2018, a City of Newport Beach (City) building inspector posted an "Unsafe Do Not Enter" placard on the project. On May 3, 2018, the Chief Building Official declared that the subject structure was an attractive nuisance and unsafe structure pursuant to California Building Code (CBC) § [A] 116.1. The Chief Building Official required the property owner to obtain a permit to demolish the unsafe structure or submit plans to the City for the reconstruction, within 30 days. II.FINDINGS Pursuant to Section 21.52.025 of the certified Local Coastal Program (LCP) Implementation Plan, in the event of a verified emergency, the Community Development Director may authorize temporary permits to proceed with remedial measures. This authorization is based on the following facts. 23 Emergency CDP No. CD2018-050 Page 2 1. The authorized work is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, it involves the demolition and removal of a portion of a motel designed for an occupant load of 30 persons or less in an urbanized area. 2. An emergency exists that requires action more quickly than permitted by the procedures for regular permits administered pursuant to the provisions of Chapter 21.50 (Permit Application Filing and Processing) of the certified LCP Implementation Plan. The situation meets the definition of an emergency per Section 21.52.025 of the certified LCP Implementation Plan because the Chief Building Official declared the subject structure an attractive nuisance and unsafe structure pursuant to California Building Code (CBC) § [A] 116.1. 3. The work can and will be completed within thirty (30) days unless otherwise specified by the terms of the permit; 4. Public comment on the proposed emergency action has been reviewed, if time allows; 5. The work proposed is conditioned to be consistent with the requirements of the City’s certified LCP. The work is not subject to Section 21.48.025(C) (Protection of Low Cost Visitor Accommodations) of the certified LCP Implementation Plan. The work proposed does not meet the definition of impact to low cost overnight visitor accommodations (LCOVA) provided in Section 21.48.025(C)(4). The structures that will be demolished previously contained LCOVA units destroyed by fire. Therefore, the work proposed will not result in the decrease in the available supply of existing LCOVA units, as the units no longer exist due to a disaster. The proposed work is for demolition of existing structures destroyed by fire only and no new overnight visitor accommodations are proposed. 6. The work proposed under the emergency permit shall be the minimum amount necessary to address the emergency; and 7. The development is not located in an area in which the California Coastal Commission retains direct permit review authority. III. CONDITIONS OF APPROVAL 1. Only the work specifically described above and as more specifically described in the Community Development Department’s file for this emergency CDP application is authorized for the specific property listed above, subject to the conditions set forth below. Any additional work requires separate authorization from the Director. 2. Any spills of construction equipment fluids or other hazardous materials shall be immediately contained on-site and disposed of in an environmentally safe manner as soon as possible. 24 Emergency CDP No. CD2018-050 Page 3 3. Coastal Development Permit No. CD2018-050 shall expire 30 days from the date of authorization. The Director may extend an emergency CDP for an additional 30 days for good cause including, but not limited to, a CDP application on file with the Community Development Department. 4. The project is subject to all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 5. The applicant shall comply with all federal, state, and local laws. Material violation of any of those laws in connection with the use may be cause for revocation of this emergency CDP. 6. The applicant is required to obtain all applicable permits from the City and other agencies. On behalf of Seimone Jurjis, Community Development Director By: Patrick J. Alford, Planning Program Manager KB/pja Attachments: CD 1 Vicinity Map CD 2 Plans CD 3 2018-05-03 Declaration by the Chief Building Official CD 4 Photos 25 Attachment No. CD 1 Vicinity Map 26 Emergency CDP No. CD2018-050 Page 5 VICINITY MAP Coastal Development Permit No. CD2018-050 PA2018-115 6302 West Coast Highway Newport Beach, CA Project Site 27 Attachment No. CD 2 Plans 28 83 3$&,),&&2$67 + : < 35263(&767 $//(< 1(:32576+25(6'5 6)72%('(02 ((/(&75,&$/3$1(/ ('(&.(/$1'6&$3,1* ()/2:/,1( /(*(1' (&21&5(7( 3URSHUW\OLQH 3URSHUW\OLQH 3URSHUW\OLQH 3URSHUW\OLQH 3URSHUW\OLQH 6,7(72%()(1&('$7$+(,*+7%(7:((1 &+$,1/,1.29(5/$,'217+((;7(5,25:,7+$123$48(9,1</)(1&( 3('(675,$1&$123<3527(&7,21 6FDOH 3URMHFWQXPEHU 'DWH 'UDZQE\ &KHFNHGE\ $5&+,7(&785('(6,*1 $OO S O D Q V G H V L J Q V D U U D Q J H P H Q W V D Q G L G H D V L Q G L F D W H G R U U H S U H V H QWH G R Q W K L V G U D Z L Q J V K H H W D U H , Q V W U X P H Q W V R I 6 H U Y L F H D Q G S U RS H U W \ R I 0 $ $ U F K L W H F W V $ V V X F K 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F R U S R U D W L R Q I R U D Q \ S X U S R V H Z K D W V R H Y H U Z L W K R X W ZULW W H Q S H U P L V V L R Q R I 0 $ $ U F K L W H F W V 3 0 $ (; , 6 7 , 1 * '( 0 2 3 / $ 1 /% :( 6 7 & 2 $ 6 7 + : < ,VVXH'DWH -* : ( 6 7 & 2 $ 6 7 + : < 1( : 3 2 5 7 % ( $ & + & $ :$//7<3(/(*(1' 1R 'HVFULSWLRQ 'DWH '(023/$1 32 Attachment No. CD 3 2018-05-03 Declaration by the Chief Building Official 33 34 Emergency CDP No. CD2018-050 Page 8 Attachment No. CD 4 Photos 35 Emergency CDP No. CD2018-050 Page 9 36 Attachment No. ZA 3 Vicinity Map 37 Tmplt: 07/25/19 VICINITY MAP Coastal Development Permit (PA2023-0027) 6302 West Coast Highway Newport Beach, CA Subject Property Subject Property 38 Attachment No. ZA 4 Feasibility and Impact Assessment 39 draft 1 PKF hotelexperts Newport Beach Municipal Code Section 21.48.025 Feasibility and Impact Analysis for 6302 W. Coast Highway Hotel Development in Newport Beach, California July 2023 PKF hotelexperts GmbH I Schubertring 3 l 1010 Vienna l Austria www.pkfhotels.com T: +43 (1) 5120707 E: vienna@pkfhotels.com managing directors Michael Widmann Christian Walter l commercial register FN 245617 b PKF hotelexperts GmbH is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. 40 draft 2  executive summary ▪In this report, we present our findings of the two requested analyses, as follows: The feasibility of the hotel development at 6302 W. Coast Highway (“Project”) to include lower-cost visitor accommodations; and The impact of the Project on the existing lower-cost visitor accommodations in the City of Newport Beach (“City”). ▪The following analyses conclude that it is not feasible to provide lower-cost visitor accommodations as part of the Project, and the Project would not impact the availability of lower- cost visitor accommodations in the City. ▪The Project is currently contemplated to be a three to four-star 12-key boutique hotel in Newport Beach, California within a small community on the Pacific Coast Highway and a minute walk from the beach. ▪Newport Beach is located in Southern California and is known for its tourism and hospitality, which attracts million of visitors each year, as well as for it finance, investment, retail and healthcare industry sectors. Its proximity to the beach makes it a wonderful place to visit if you are an avid beachgoer and enjoy outdoor activities. ▪The Project site is located near the Balboa Peninsula, driving distance to the downtown ares of Newport Beach, Huntington Beach and Costa Mesa. There is good visibility from the streets, and it is easily accessible by car and bike. The direct surroundings are characterized by the beach across the Pacific Coast Highway, and smaller buildings occupied by older cafes and residential projects, such as Sonder next door. ▪The subject property suffered damage from a fire and ceased operating as a hotel. The Project would establish a new hotel at the property. The area has a number of buildings in disrepair, and the renovation of this property will add notable improvements to the PCH and the general area building supply. ▪The property has 12 rooms and is approved for 12 rooms, albeit in an upgraded configuration from the existing footprint and layout. The owner plans to create 8 standard rooms and 4 suites, all with semi-private outdoor seating areas and access to a central courtyard with firepit and many beach-friendly amenities, such as lockers with beach chairs and umbrellas, and high-end dedicated beach bikes. ▪In the period from 2018 to 2023, the number of hotel rooms in Newport Beach increased due to the growing demand as a popular tourist destination, and there has been growing demand for accommodations in the area. ▪Currently, a large number of branded hotels are present in the market. Given the fact that there is a limited number of hotel projects specifically in the boutique hotel space currently being planned and developed in the Newport Beach market (in particular in the midscale and upscale segments); only a slight growth of supply can be expected in the upcoming years 41 draft 3 ▪As a result of our site and market analyses, we consider the project site to be well suited for a hotel of the upscale boutique market targeting leisure travelers. The project can garner an ADR upwards of $300. ▪The property will be designed by a renowned local designer who specializes in beachy designs, and who designed Kelly Slater’s surf wave property. 42 draft 4 table of contents chapter heading page 1 Introduction 6-10 2 Location 12-16 3 Market 17-23 4 Concluding Remarks 24 43 draft 5 charts/illustrations # title page Chart 1 typical brands per segment 10 Chart 2 location of Orange County within Southern California 11 Chart 3 location of Newport Beach within Orange County 12 Chart 4 capacity of relevant hotels 17 Chart 5 published rates of geographic hotels 22 44 draft 6 Introduction Feasibility Analysis Newport Beach Municipal Code (“NBMC”) Section 21.48.025(C)(2) requires “an analysis of the feasibility of providing lower-cost visitor accommodations…for any application involving the…redevelopment…of…visitor accommodations.” This analysis is required regardless of whether the accommodations to be converted are “lower-cost.” The Project proposes to redevelop a vacant and abandoned property with 12 high-cost visitor accommodations. Thus, the NBMC requires the preparation of this feasibility analysis to determine if the Project could provide lower-cost visitor accommodations on the Project site. As explained below, it is not feasible to include lower-cost visitor accommodations on the Project site. This infeasibility is due to the site’s high land value, the Project’s high development costs, and the small site size. Project The Project proposes to reonovate and redevelop a vacant and abandoned boutique hotel/motel in Newport Beach, California. The Project site is to be located walking distance from the beach and detailed architectural plans have been produced and are under review with the city. The following uses are planned for the project: ▪lodging facilities with 12 keys ▪café and coffee bar ▪courtyard for small events with bocce ball and fire pit ▪other facilities (amongst others parking, staff area, guest storage and BOH and ▪We conducted the assignment from February 2023 to March 2023. The study is based on the site and market conditions at the time of the site and market research as well as the relevant supply and demand at that time. The audit of the legal terms, in particular the ownership, building, corporate and fiscal terms, is not subject of this assignment. We have prepared the feasibility study on the basis of the General Terms and Conditions of Doing Business. When preparing the study, we have acted in our position as a neutral expert to the best of our knowledge. However, we cannot guarantee the actual occurrence of any forecasted results. The study was exclusively prepared for the client’s use. If it is forwarded to any third party, the above-mentioned General Terms and Conditions of Doing Business shall also apply vis-à-vis this third party. The report (or parts of it) may only be published after the consultant’s prior written approval. 45 draft 7 New York, 19 July 2023 PKF hotelexperts LLC Channing Henry, Managing Director 46 draft 8 Methodology General The quality and significance of studies relies to a great extent on detailed re- search. In order to provide an insight into the applied methodology, we have listed selected aspects of our work: The following people have worked on the assignment: ▪project controller: Channing Henry (Managing Director), Bruce Baltin (Director) ▪project manager: Ryan Swanson (Consultant) In case of questions regarding the content and structure of this feasibility report, the project controller and the project manager are at your disposal. You can reach them under: PKF hotelexperts 245 Park Avenue New York, NY 10167 telephone +1 917-270-3140 e-mail channing.henry@pkfhospitality.com internet www.pkfhospitality.com The individual steps of the assignment were done in the following order: ▪date when assignment was given: February 2023 ▪preparation of site and market analysis: February 2023 – March 2023 ▪collection/analysis of data and writing of the report: February 2023 ▪delivery of draft report: March 2023 ▪delivery of final report: July 2023 Analyses In the course of the collection of information, the project team interviewed – either personally or by telephone – several experts. A list of those people as well as of collected documents and other information can be obtained from PKF hotelexperts. The information was collected by using – amongst others – the following means: ▪visit to Newport Beach, California ▪market research in Newport Beach, California 47 draft 9 ▪ personal interviews and interviews by telephone with representatives from the City of Newport Beach, California ▪ analyses of data and statistics provided by various statistical offices ▪ analysis of various publications ▪ internet research ▪ use of various databases (including databases by PKF hotelexperts) The collected information and data was analysed in the following way: ▪ analysis and evaluation of the collected market data and results of the interviews ▪ derivation and assessment of the development of the relevant hotel market ▪ assessment of the hotel site for various guest segments based on the current and probable future site and market situation ▪ remarks on the optimal positioning of the hotel ▪ derivation of the estimated achievable occupancy based on data of relevant com- petitors respectively hotels of regional importance taking into consideration the most probable market development in particular with regards to the development of the estimated market shares ▪ derivation of the estimated achievable average net room rate per hotel based on data of relevant competitors – respectively hotels of regional importance – and taking into consideration figures based on our international experience Ratios The following ratios are used throughout the reports:  occupancy occupied rooms divided by the number of available rooms per period  multiple occupancy factor number of guests divided by the number of occupied rooms per period  published room rate (= rack rate) published room rate including VAT and – if applicable – breakfast  net room rate rooms revenue (after deduction of breakfast, VAT and allowances/discounts) di- vided by the number of occupied rooms in each period 48 draft 10 =x revenue per available room/revpar (= rooms yield) occupancy multiplied by the average net room rate respectively rooms revenue (excluding VAT, breakfast and allowances/discounts) divided by the number of available rooms per period Impact Analysis NBMC Section 21.48.025(C)(3)(a) provides that “an analysis of a development’s impact on the availability of lower-cost visitor accommodations in the City shall be required for any application involving…the…redevelopment…of…visitor accommodations….” The Project proposes to reonovate and redevelop a vacant and abandoned boutique hotel/motel in Newport Beach, California. Thus, the NBMC requires the preparation of this impact analysis, at the Client’s expense, to determine if the Project impacts the availability of lower-cost visitor accommodations in the City. As explained below, this Project does not impact the City’s existing lower-cost visitor accommodations. The number of lower-cost visitor accommodations in the City will remain the same, and both the supply and demand for them will be unchanged by this Project. Classification The classification of hotels in this study is based on the internal hotel classifica- tion of PKF hotelexperts, which is orientated towards the strict international pa- rameters for the classification of hotels (maximum of five stars):  outstanding standard; extraordinarily good service, extraordinarily large (mini- mum of 34 sq m) and luxuriously equipped rooms; excellent food & beverage facilities; extensive and outstanding sports, leisure and spa facilities (for resort hotels) or high-quality fitness & spa facilities (for city hotels)  very high standard; very good service; large (minimum of 28 sq m) and very com- fortably equipped rooms; very good food & beverage facilities; sports, leisure and spa facilities, which are adequate to the type and the site of the hotel  high standard; good service; spacious (minimum of 22 sq m) and comfortably equipped rooms; good food & beverage facilities; sports, leisure and spa facili- ties, which are adequate to the type and the site of the hotel  simple standard; limited service; relatively small (minimum of 16 sq m) and basic rooms; no or only simple food & beverage facilities; no or only simple sports, leisure and spa facilities  very simple standard; no or very limited service; very small and very simply equipped rooms; no food & beverage facilities; no sports, leisure and spa facilities 49 draft 11 Typical brands of the various market segments and their respective positioning as seen by PKF hotelexperts are illustrated in the following chart: Chart 1 typical brands per segment Days Inn aloft Radisson Blu Ibis Budget Ibis Indigo Marriott Holiday Inn Expr.Hilton Four Seasons Sleep Inn Ramada Encore Sofitel Super 8 Best Western Crowne Plaza Ritz-Carlton Courtyard by M. Canopy by H. Park Hyatt Easyhotel Hilton Garden Inn Wyndham Première Classe Hampton by H. Novotel Grand Hyatt Campanile Mercure InterContinental Star Inn Holiday Inn Hyatt Regency B&B Hyatt Place Hyatt Park Inn by Radisson Sheraton Motel One Andaz Premier Inn Ramada Conrad Moxy DoubleTree by H.Waldorf Astoria Clarion Renaissance JW Marriott St. Regis notes 1)stars according to classification by PKF ©PKF hotelexperts; status: 1 January 2017 2)per segment (dark grey:core positioning; light grey: range of existing properties) 3)size of standard room in sq m  -++- 34 42 50 +- 32 -+  -+seg.2) stars 1) size3)10 12 14 16 18 20 22 24 26 28 30  Please note that national or regional classification systems ² as well as the hotel groups themselves ² often are more generous in attributing stars to hotels. 50 draft 12 Location County General Orange County is in Southern California, United States. It is situated along the coast of the Pacific Ocean and is part of the Los Angeles metropolitan area. Orange County covers an area of approximately 948 square miles (2,455 square kilometers). It is bordered by Los Angeles County to the north, San Bernardino County to the northeast, Riverside County to the east, and San Diego to the south. As of the 2020 United states Census, the population of Orange County was estimated to be around 3.2 million people, making it the sixth most populous county in California and the third most populous county in the Greater Los Angeles Area. Land Value Land in Newport Beach is extremely valuable, and land near the ocean in West Newport is known to have some of the most expensive real estate in the entire City. Land in West Newport can typically trade for tens of millions of dollars per acre. This high land value acquisition cost renders the property financially impractical and unsuitable for lower-cost visitor accommodations. Additionally, given the small size of the project, there is no physical area to construct lower- cost visitor accommodations at the Project site. High Development Costs The estimated construction costs for the Project are nearly $1,000 per square foot. Inclusion of lowercost visitor accommodations would reduce the the overall leveraged internal rate of return (“IRR”) to a level that would dissuade investors from investing in the Project, and would ultimately have the effect of preventing the Project from being developed. 51 draft 13 Chart 2 location of Orange County in Southern California Economy The economy of Orange County, California is one of the largest and most diverse in the United States. The county is home to a wide range of industries, including technology healthcare, tourism, aerospace and defense, financial services, manufacturing and retail. In terms of GDP, Orange County is one of the top ten counties in the United States. The county’s economy is estimated to have a gross metropolitan product of over $300 billion in 2020, according to the Bureau of Economic Analysis. Orange County’s technology industry is particularly strong, with companies such as Broadcom, Western Digital, and Blizzard Entertainment operating in the region. The healthcare industry is also a significant contributor to the economy, with major hospitals and medical centers in the county. These key industries contributed $56.2 billion to the county’s GMP (Gross Metropolitan Product) in 2020. The top employer includes the County of Orange, Disneyland Resort, UC Irvine and Boeing. As of December 2021, the unemployment rate in Orange County was 4.0%, compared to the national average of 3.9%. Median household income in Orange County was $93,36 in 2019. The cost of living is much higher than the national average. The county’s economy has been growing steadily over the past few years, with an increase of 2.2% in GMP between 2019 and 2020, obviously stunted by COVID-19, the economy is rebounding. Location and expanse Newport Beach is a coastal city in Orange County, Southern California, United States. It is situated on the Pacific Coast, about 10 miles (16 kilometers) south 52 draft 14 of the city of Huntington Beach and 10 miles (16 kilometers) north of the city of Laguna Beach. Newport Beach is bordered by the Pacific Ocean to the west and by several other cities in Orange County to the north, east and south. According to the United States Census Bureau, the estimated population of Newport Beach, California, as of 2020, is approximately 85,236 people. Newport Beach is a relatively small city compared to other cities in Orange County, however it is known for its beautiful beaches, affluent neighborhoods, and a vibrant harbor area. The following map shows the location of Newport Beach within Orange County: Chart 3 location of Newport Beach within Orange County Economy and demographics The economy of Newport Beach is distinguished by its location in Orange County, along with its proximity to other key institutions and areas. Newport Beach is within driving distance to University of California, Irvine, California State University, Fullerton and Orange Coast College, benefitting from an educated workforce. According to the US Census Bureau's American Community Survey 5- year estimates from 2015-2019, approximately 72.9% of the population aged 25 years and older in Newport Beach, California has a bachelor's degree or higher. This is significantly higher than the national average of 33.1%. Furthermore, 31.8% of Newport Beach residents aged 25 years and older have a graduate or professional degree. These statistics suggest that Newport Beach has a highly educated population. As per the US Census Bureau's American Community Survey 5-year estimates from 2015-2019, the total civilian labor force in Newport 53 draft 15 Beach, California, was approximately 45,935 people. This includes individuals who are employed or actively seeking employment and are aged 16 years and older. The labor force participation rate for Newport Beach was estimated to be around 68.3%, which is higher than the national average of 62.7%. Newport Beach, California is home to several companies across a variety of industries, including finance, healthcare, and technology. Some of the largest and most well-known companies in Newport Beach include Pacific Life Insurance Company: This is a large insurance and investment management company that has its headquarters in Newport Beach. PIMCO: This is a global investment management firm that was founded in Newport Beach in 1971. Hoag Memorial Hospital Presbyterian: This is a non-profit hospital system that is based in Newport Beach and serves the Orange County area. Clean Energy Fuels: This is a company that provides natural gas as an alternative fuel for vehicles and has its headquarters in Newport Beach. Acacia Research Corporation: This is a patent licensing and enforcement company that is based in Newport Beach. Lastly, Jazz Semiconductor: This is a company that designs and manufactures semiconductor products for a variety of applications and has its headquarters in Newport Beach. The top five industries in Newport Beach, California, by the number of people employed, were: professional, scientific, and technical services, health care and social assistance, retail trade, accommodation and food services, and finance and insurance. The median household income in Newport Beach according to the US Census Bureaus’ American Community Survey 5-year estimates from 2015-2019, the median household income in Newport Beach, California, was approximately $126,728. This is significantly higher than the national median household income of $65,712. It is worth noting that median household income can vary based on a variety of factors, including the size and composition of the household, the age and education level of the household members, and the local economy. Newport Beach is known to have a relatively high cost of living due to its affluent population and high-end amenities. Housing costs tend to be very high in Newport Beach, with many homes and properties being priced well above the national average. Other expenses such as dining out, entertainment, and shopping may also be relatively expensive in Newport Beach due to its reputation as a luxury destination. Approximately 69.2% of households in Newport Beach, California is occupied by their owners. This suggests that most residents in Newport Beach own the property they live in. Culture and tourism Newport Beach, California is known for its vibrant culture and thriving tourism industry. Newport Beach is home to some of Southern California's most beautiful beaches, including Balboa Peninsula, Newport Beach Pier, Corona del Mar State Beach, and Crystal Cove State Park. These beaches attract millions of tourists each year, making them a key part of Newport Beach's tourism industry. Newport Beach also has a thriving arts and culture scene, with several galleries, museums, and theaters in the area. Some of the most popular cultural attractions in Newport Beach include the Newport Theatre Arts Center, the Newport Harbor Art Museum, and the Newport Beach Film Festival. In addition to its beaches, Newport Beach offers plenty of opportunities for outdoor recreation, including hiking, biking, kayaking, and paddleboarding. The Back Bay Nature Preserve and Newport Bay Conservancy are popular spots for outdoor enthusiasts. 54 draft 16 Furthermore, Newport Beach is known for its high-end shopping and dining options, with several luxury retail centers and fine dining establishments in the area. Known for its beautiful outdoor setting, which includes fountains, gardens, and a koi pond. Some of the most popular stores at Fashion Island include Neiman Marcus, Bloomingdale's, Nordstrom, and Chanel. South Coast Plaza is a large, upscale shopping center located in nearby Costa Mesa. It features over 250 stores, including many high-end designer boutiques, as well as a range of restaurants and entertainment options. South Coast Plaza is known for its extensive collection of art and sculptures, including works by artists such as Henry Moore and Joan Miró. Some of the most popular stores at South Coast Plaza include Gucci, Louis Vuitton, Chanel, and Prada. Lastly, Newport Beach hosts a variety of events and festivals throughout the year, including the Newport Beach Film Festival, the Newport Beach Boat Show, and the Newport Beach Jazz Festival. These events draw visitors from all over the world and contribute to the city's vibrant culture and tourism industry. Traffic a)air traffic Newport Beach Airport, also known as John Wayne Airport (SNA), is a commercial airport located in Orange County, California, serving the cities of Newport Beach, Costa Mesa, and Santa Ana. John Wayne Airport is served by several major airlines, including American Airlines, Delta Air Lines, United Airlines, and Southwest Airlines. The airport has two terminals, Terminal A and Terminal B, which are connected by a pedestrian bridge. Facilities at John Wayne Airport include several restaurants, shops, and lounges, as well as car rental services and parking options. The airport is located approximately 10 miles from Disneyland and the Anaheim Convention Center and is a popular gateway for visitors to Southern California. In 2019, the airport served over 10 million passengers. The airport offers both domestic and international flights and is a popular gateway for visitors to Southern California. According to data from the Federal Aviation Administration (FAA), John Wayne Airport (SNA) had a total of 117,031 aircraft operations (takeoffs and landings) in 2019. Of those, 107,704 were commercial operations and 9,327 were general aviation operations. b)other transportation The most common mode of transportation in Newport Beach is by car. Visitors can rent a car at the John Wayne Airport or from several rental agencies throughout the city. The city has many public parking options, including metered street parking and public parking lots. Orange County also has public transportation options, including the Transportation Authority (OCTA), which provides bus services throughout Newport Beach and the surrounding areas. Bus routes include local, express, and commuter services, and most routes run seven days a week. Bus fares vary depending on the route and distance traveled. The Newport Beach Free Trolley is a free shuttle service that operates from May through September. The trolley runs a fixed route and stops at several popular attractions, including Balboa Pier, the Fun Zone, and the Newport Beach Civic Center. The Metrolink commuter rail service provides transportation to Newport Beach from other parts 55 draft 17 of Southern California, including Los Angeles and San Diego. The Newport Beach station is located on Industrial Way and serves the Orange County Line. Project site Location and expansion The hotel site is located in Newport Beach, California, on the western portion of Balboa’s beachfront. The Pacific Coast Highway runs right in front of the property, with easy access to the beach. The area attracts many surfers, bikers and beachgoers. The existing site area is a motel, which was sold by its original owners after a fire destroyed four of the rooms. The site is 8,813 sq ft with 4,406 sq ft of allowable floor area per code. The proposed development includes an extension of the first floor, which will include four hotel rooms, a café, lobby and storage space. The existing remaing floor area is comprised of 2,702 sq ft. The owner intends to perform a full renovation of the existing rooms within the hotel and build the new two-story structure fronting PCH. In total, there will be 12 guest rooms, 4 of which will be larger suites. Each room will have access to complimentary beach bikes, umbrellas and beach chairs in order for those to enjoy the beach in comfort, and the freedom to bike to neighboring attractions such as the Newport Pier, areas along the Balboa Peninsula and downtown Newport Beach. Each room has a full wet bar and mini- fridge, and one large suite, room 9, has a full kitchen as it was the prior owners’ home. This is the only kitchen on the property. All rooms have semi-private outdoor seating areas. The café will be another addition to the bottom floor of the new two-story structure. The café will provide a wide range of coffee drinks, as well as a selection of pastries in the morning for guests to enjoy to start their day.The space within the café will also serve as a “lobby” for guests to check-in, however the hotel will mainly serve as a self-service property. The lobby/coffee bar will be 392 sq ft., which is part of the 664 sq ft that will comprise less than half of the new 1st floor development. The coffee bar will be open to the general public as well. On the east side of the property, 8 new parking lots will be made available to guests, free of charge. These spots will roughly be around 100 sq ft each. Demand generators Newport Beach, California has several key demand generators that contribute to its vibrant economy and tourism industry. Newport Beach is known for its beautiful beaches, which are a major draw for tourists and locals alike. The beaches offer a range of activities, including swimming, surfing, sunbathing, and beach volleyball. In addition to its beaches, Newport Beach has a thriving tourism industry, which is supported by a range of attractions, including museums, theaters, parks, and shopping centers. Popular tourist destinations in the area include Balboa Island, the Newport Beach Pier, and the Fashion Island shopping center. Newport Beach is home to a range of businesses and industries, including finance, healthcare, and technology. The city's high-income population and 56 draft 18 proximity to major business centers in Los Angeles and Orange County make it an attractive location for businesses. The city is also home to several prestigious universities and colleges, including the University of California, Irvine and Chapman University. These institutions contribute to the local economy by providing jobs and attracting students and faculty to the area. Lastly, Newport Beach offers a wide range of recreational opportunities, including hiking, biking, kayaking, and paddleboarding. The city's parks and nature preserves, such as the Back Bay Nature Preserve and Crystal Cove State Park, are popular destinations for outdoor enthusiasts. These demand generators, along with the city's high quality of life, contribute to Newport Beach's strong economy and make it an attractive destination for both businesses and visitors. Legal aspects Legal aspects, especially the analysis of property rights, building laws, and fiscal laws, were not subject of this study. Public utilities and services According to information provided to us, the site is connected to all necessary supply and disposal lines, or has the potential to be. 57 draft 19 Market To draw conclusions regarding the positioning and financial viability of the client’s proposed hotel, we carried out a comprehensive analysis of the local hotel market with a focus on the current and likely future competitors (existing capacities, amenities, etc). Within the scope of our market analysis, we looked at the existing relevant hotel supply in the Newport Beach area to assess overall market positioning and product offering. These hotels include smaller boutique hotels and large resorts ranging anywhere from 10 to 500 keys, with a positioning in the three to four-star segment (according to national standards). Furthermore, a location in the beach market, the range of facilities available and the quality level with regard to service, amenities and style were further criteria in identifying the hotels in the competitive set. We provide descriptions, as well as a rack rate analysis, on the following pages. Existing Supply of Lower-Cost Visitor Accommodations NBMC Section 21.48.025(C)(1)(a) defines lower-cost visitor accommodations as the “average daily room rate for all economy hotels and motels in the City that have room rates that are below the Statewide average daily room rate or lower. Economy hotels and motels are AAA-rated one or two diamond hotels, or equivalent.” Based upon our research, the City only has one lower-cost visitor accommodation facility, the 164-room Extended Stay America motel, located at 4881 Birch Street. This motel is located adjacent to John Wayne Airport and is sandwiched between the 405 and 73 freeways. The Project is not located anywhere near this lower-cost visitor accommodation facility, and the Project will have no impact on the lower-cost visitor accommodations provided at this facility. Geographic Competitive Set The following table provides an overview of the room supply of the geographic competitive set: Chart 4 capacity of relevant hotels hotel brand rooms f&b event spaces name name # # sq. ft. Balboa Bay Resort Independent 159 4 30,000 Newport Beach Marriot Bayview Marriott 254 1 3,000 Vea Newport Beach Marriott 532 3 68,102 Hyatt Regency Newport Beach Hyatt 407 2 26,000 Lido House Autograph Marriott 130 3 15,137 Balboa Inn, On the Beach Independent 45 2 3,000 Sonder Solarena Sonder 32 0 0 Ramada by Wyndham Wyndham 137 2 840 Doryman's Oceanfront Inn Independent 11 2 0 Newport Beach Hotel Independent 20 0 486 Average x 173 2 14,657 58 draft 20 Balboa Bay Resort: This 4-star resort is comprised of 159 keys with a mix of guest rooms and suites, all with private balconies overlooking the bay or gardens. The resort offers a range of amenities, including a full-service spa, a fitness center, a marina, and two waterfront restaurants. Additional amenities include a heated outdoor pool, as well as a variety of outdoor activities such as paddleboarding, kayaking and bike rentals. For events and meetings, the resort offers 20,000 sq ft of indoor and outdoor event space. Newport Beach Marriot Bayview: This 4-star hotel is comprised of 254 keys with spacious guest rooms and suites, all with modern décor and comfortable furnishings. The hotel offers a range of amenities, including a fitness center, outdoor pool and whirlpool. For dining, the hotel has an on-site California inspired menu curated for breakfast, lunch and dinner. The hotel has 3,000 sq ft of flexible event space, including a ballroom. 59 draft 21 VEA Newport Beach, A Marriot Resort & Spa: This 4-star resort is comprised of 397 guest rooms and suites, each with modern furnishings. The resort offers a wide range of amenities, including a full-service spa, fitness center, outdoor pool and multiple on-site restaurants and bars. The resort has 68,102 sq ft of event space, including a grand ballroom, outdoor venues, and smaller meeting rooms. It is situated steps from the beach, near Balboa/Fashion Island, and Newport Harbor. Hyatt Regency Newport Beach: This 4-star hotel is comprised of 407 keys, with a mix of guest rooms and 55 suites offering modern décor and furnishings. The hotel offers various amenities, including a fitness center, outdoor pool, and a hot tub. For dining, there are several on-site restaurants and bars with ocean views. The resort is built on 26-acres of property where there is over 32,000 sq ft of flexible event space, including a grand ballroom, meeting rooms and outdoor venues with garden views. Lido House Autograph Collection: This 4-star boutique hotel is comprised of 130 keys, with a mix of guest rooms and suites. Many of the suites feature private balconies or patios with views of the marina. The amenities on the property include a fitness center, outdoor pool and hot tub, and a full-service spa. They also provide activities/experiences such as sailing, paddleboarding and bike rentals. There is over 15,000 sq ft of indoor and outdoor event space, a grand ballroom and meeting rooms 60 draft 22 Sonder Solarena: This 3-star boutique hotel is comprised of 32 fully furnished guest rooms and suites with fully equipped kitchens, offering privates balconies with ocean views. This self-service hotel offers few amenities including a fitness center and a limited concierge service. The hotel also offers beach amenities, such as towels, chairs, and umbrellas. For dining, the hotel offers a rooftop bar and lounge where guests can enjoy craft cocktails and small plates. There are also communal BBQ grills and fire pits. It is a good option for extend stays or travelers looking for a more independent experience, and is located next door to the subject property. Newport Beach Hotel, Four Sisters Inn Collection: This 3-star boutique hotel is comprised of 20 keys, each with a unique décor, and some rooms featuring private balconies with ocean or city views. The hotel offers a daily breakfast buffet, and a communal living room with a fireplace and a selection of books and games. Other amenities include a rooftop deck with ocean views, and chairs and umbrellas for the beach. The hotel is situated a short walk away from the beach, harbor, and local attractions. 61 draft 23 Balboa Inn, On the Beach: This historic 3-star inn is comprised of 45 keys each with a classic beach house décor, with some of the rooms featuring private balconies with ocean views. The hotel offers several an on-site restaurant and a rooftop bar with panoramic views of the ocean and a beachside café. Other amenities include a fitness center, business center, and beach amenities such as towels, chairs, and umbrellas. The hotel is situated on the beachfront, which makes it easy for travelers to participate in water activities. Wyndham Costa Mesa/Newport Beach: This budget friendly 3-star hotel is comprised of 137 keys. The hotel offers a range of amenities including a fitness center, a business center, and an outdoor pool/hot tub. For dining, the hotel offers a daily complimentary breakfast buffet and an on-site restaurant which serves seafood. It borders between Costa Mesa and Newport Beach and is a short drive from the beach and attractions such as Disneyland, Knott’s Berry Farm, and South Coast Plaza shopping center. Doryman’s Oceanfront Inn: This 3-star boutique hotel is comprised of 11 rooms each furnished with a unique décor. Some of the rooms also feature private balconies with ocean front views. For dining, the hotel offers a complimentary continental breakfast and an on-site restaurant which serves seafood and American cuisine. Other amenities include beach amenities, such as chairs and umbrellas, as well as a communal living room with a fireplace. The hotel is situated on the Balboa Peninsula steps away from the beach. 62 draft 24 Demand for Lower-Cost Visitor Accommodations Based upon our research, there are no proposed lower-cost visitor accommodation developments in the City. This is likely due to the high cost of land in the City, which discourages investors from developing any lodging facilities in the lowest-priced segment, as it is financially infeasible. High land costs force investors to develop higher-priced lodging. This Project will not impact the proposed development of lower-cost visitor accommodations. Since there would be no loss to the supply of existing lower cost visitor accommodations due to the Project, the question is whether the Project would cause an increase in the demand for lower- cost visitor accommodations in the City. We are of the opinion that it would not. There has never been any correlation between the demand for lower-cost visitor accommodation and providing high- cost visitor accommodations. Similarly, redevelopment of a vacant and abandoned hotel site into a new high- cost visitor accommodations will not generate demand for additional lower-cost visitor accommodation. Newport Beach Municipal Code Section 21.48.025(C) categorizes hotels into three different levels by their average daily room rates, as follows: • High Cost • Moderate Cost • Low Cost The proposed high-cost hotel rooms at the Project’s site will be above the low cost visitor accommodations segment. Hotel guests staying in this range of accommodation have plenty of options for alternative lodging choices in the high cost classes, and would not likely end up staying in a low cost hotel. Virtually every other hotel in the City falls above the low cost category, and the supply of these alternative hotel choices is unchanged by the Project. Thus, the development of a 12 room boutique hotel would not create any new demand for the Extended Stay America, the single lower-cost visitor accommodation in the City. In summary, since neither the supply of, nor demand for existing lower-cost visitor accommodations is impacted by the Project, we conclude the Project will not have any impact on the City’s existing lower-cost visitor accommodations, and no mitigation measures are required. Occupancy and ADR According to the Visit California Monthly Research Dashboard for May 2023, the Average Daily Rate (ADR) for a hotel room in California was $188.00. The Pine Knot Motel Rate is projected to be $325.00, which is much higher than the average ADR. PKF also studied the pubished rates from the hotel sites within the market for an overall assessment of the price point and positioning. Based on our experience in the Southern Califiornia beach markets over the last decades, 63 draft 25 PKF is confident that demand for the rooms at the subject property will be strong, if positioned well amidst the competing options in the market. Rates The following table gives an overview of the published rates of the selected geographic comp hotels at specific dates (please note that the reservation requests were made online through each hotel’s respective website): Chart 5 published rates of geographic hotels – standard rooms, not suites The table above shows that the published rates of the competitive set hotels during peak demand season are in the range of $152 (Ramada by Wyndham) and $639 (Lido House Autograph Collection) for a standard room on a November weekend. During the low demand period, rates range between $144 (Ramada by Wyndham) and $549 (Lido House Autograph) for a standard room on a January weekday. The average published rate of the analyzed hotels for a January weekend is $351 and for a November weekday is $326. Rack rate to ADR ratio: Rack rates are the rates published by hotels, most easily found on their respective websites, often expressed in terms of standard, prepay, or package prices for different room types. The rack rate is the highest price a hotel will charge for a room, without any discounts or premiums. ADR (average daily rate) is a metric used to measure the average revenue a hotel receives for each occupied guest room per day. ADR differs from a rack rate in that it accounts for discounts and corporate rates, ultimately presenting a lower actual price based on revenue generated compared to the published rack rates. 64 draft 26 Fiscal Impact The renovation of the subject property, according to the owner’s new architectural plans, will require between $5.5 MM and $6 MM in total costs, including acquisition of the existing motel. Assuming standard market financing assumptions, these costs will require that the property achieve a healthy EBITDA. PKF has projected a 10-year operating proforma, based on our assessment of the market and the subject property plans. We have arrived at an ADR of $325 in today’s dollars and an occupancy of 75% in stabilized year 4. Including minimal additional income from the café’s F&B operations, the total revenues in year 4 are projected to be $1.657 milion. Assuming a limited-service model that relies on very few staff members, the projected EBITDA in year 4 is approximately $593,000, and, after a 3% replacement reserve, approximately $543,000, representing a 33% EBITDA margin. With a 50% LTC ratio for the construction financing, at a 10% interest rate, and an exit in year 10 with an 8% cap rate, the project IRR is below 14%. A lower cap rate of 7% yields an IRR of 15.5%. PKF believes that the property must operate at the projected revenue and cost targets in order to be a viable development for its investors. This does not include any suggested reductions in ADR on the property, as the rooms represent 74% of the property’s revenue. We arrived at the ADR based on the assessment of the comparable properties in the market: Balboa, Four Sisters and Dorymans. Properties in the area offer amenities elsewhere so the hotel needs to be well positioned in order to be competitive against the existing supply. We felt that these three properties were most similar in terms of occupancy and ADR rates, however in most cases, these three properties offered amenities including: an on-site restaurant or bar and limited event space. The Four Sisters generally reflects the ADR PKF believes could be achieved at the subject property, based on the number of keys, décor and the size of the property. PKF, based on a thorough site visit with first-hand market and industry intel, desktop research, and a review of similar domestic markets, concludes that the optimal positioning for a hotel product on the beach area site in Newport Beach, California is an upscale 12-key self service hotel. Given the nature of the market, the site’s location within an affluent residential community, proximity to the beach and various attractions (Newport Harbor, Balboa Peninsula and Newport Downtown. As a boutique hotel, the property will cater to a variety of guest segments including mainly leisure and smaller group business. The management of the small courtyard which is in the middle of the property will allow the hotel to cater to wedding parties, corporate events and conferences, and private parties. The site is within close driving distance to downtown Newport Beach, Huntington Beach and Cost Mesa, providing a well situated destination for leisure guests. 65 draft 27 The hotel’s positioning would sit in the middle of the 3-4-star supply of hotels in Newport Beach in terms of ADR. Within the supply of hotels we deemed most comparable, and ADR of $325 will stay competitive within the market and attract a wide range of travelers. Within the set of hotels in Newport Beach, an occupancy of 75% in stabilized year is in line with the citiy’s hotel supply. Total Rooms Rooms Available Rooms Sold Occupancy (%) ADR Room RevPAROperating Revenue Room 1,010 73%1,081 73%1,155 74%1,219 74%1,249 73%1,266 73%1,338 74%1,361 73%1,395 73%1,397 73% F&B 287 21%299 20%312 20%328 20%338 20%348 20%359 20%370 20%381 20%392 20% Outlets / Other F&B 155 11%160 11%169 11%174 10%179 11%184 11%190 10%196 11%201 11%208 11% Banquet/Conference/Catering 131 9%139 9%144 9%155 9%159 9%164 9%169 9%174 9%179 9%185 10% Other Operated Departments 32 2%34 2%37 2%38 2%40 2%40 2%43 2%44 2%45 2%45 2% Retail 10 1%10 1%11 1%12 1%12 1%12 1%13 1%13 1%14 1%14 1% Minor Operated Department 22 2%24 2%26 2%27 2%28 2%28 2%30 2%31 2%32 2%32 2% Miscellaneous Income 58 4%62 4%66 4%72 4%74 4%75 4%80 4%82 4%84 4%85 4% Total Operating Revenue 1,386 100%1,477 100%1,571 100%1,657 100%1,701 100%1,729 100%1,820 100%1,856 100%1,905 100%1,919 100% Departmental Expenses Room 254 25%262 24%270 23%279 23%286 23%292 23%301 22%308 23%316 23%322 23% F&B 163 57%169 57%175 56%182 55%187 55%193 55%198 55%204 55%210 55%216 55% Other Operated Departments 13 40%14 40%15 40%15 40%16 40%16 40%17 40%18 40%18 40%18 40% Retail 7 75%8 75%8 75%9 75%9 75%9 75%10 75%10 75%10 75%10 75% Minor Operated Department 6 25%6 25%6 25%7 25%7 25%7 25%8 25%8 25%8 25%8 25%Total Departmental Expenses 429 31%445 30%461 29%476 29%489 29%501 29%516 28%530 29%544 29%556 29% Departmental Profit Room 756 55%819 55%885 56%940 57%964 57%973 56%1,037 57%1,053 57%1,079 57%1,075 56% F&B 124 9%130 9%137 9%146 9%151 9%156 9%161 9%166 9%171 9%176 9% Other Operated Departments 19 1%21 1%22 1%23 1%24 1%24 1%26 1%26 1%27 1%27 1% Minor Operated Department 17 1%18 1%19 1%20 1%21 1%21 1%23 1%23 1%24 1%24 1% Miscellaneous Income 58 4%62 4%66 4%72 4%74 4%75 4%80 4%82 4%84 4%85 4% Total Departmental Profit 957 69%1,032 70%1,110 71%1,181 71%1,212 71%1,228 71%1,304 72%1,326 71%1,361 71%1,363 71% Undistributed Operating Expenses Administrative & General 251 18%259 18%252 16%260 16%267 16%273 16%281 15%288 16%295 16%302 16% Information & Telecommunication Services 28 2%30 2%31 2%33 2%34 2%35 2%36 2%37 2%38 2%38 2% Sales & Marketing 92 7%98 7%105 7%111 7%113 7%115 7%122 7%124 7%127 7%127 7% Property Operation & Maintenance 63 5%65 4%66 4%68 4%70 4%71 4%73 4%75 4%77 4%79 4% Utilities 42 3%44 3%47 3%50 3%51 3%52 3%55 3%56 3%57 3%58 3% Total Undistributed Expenses 475 34%496 34%502 32%522 31%535 31%546 32%567 31%580 31%594 31%604 31% Gross Operating Profit 482 35%535 36%608 39%659 40%677 40%682 39%737 40%747 40%767 40%759 40% Income Before Non-Operating Income and Expenses 482 35%535 36%608 39%659 40%677 40%682 39%737 40%747 40%767 40%759 40% Non-Operating Income and Expenses Property and Other Taxes 52 4%52 4%52 3%52 3%52 3%52 3%52 3%52 3%52 3%52 3% Insurance 12 1%13 1%13 1%14 1%14 1%15 1%15 1%16 1%16 1%16 1% Total Non-Operating Income and Expenses 64 5% 65 4%66 4%66 4%67 4%67 4%68 4%68 4%69 4%69 4% EBITDA 417 30%471 32%542 35% 593 36%610 36%615 36% 669 37% 679 37% 698 37% 690 36% Repalcement Reserve 36 3% 44 3% 47 3% 50 3% 51 3% 52 3% 55 3% 56 3% 57 3% 58 3% EBITDA less Replacement Reserve 382 28%426 29%495 32%543 33% 559 33% 563 33%614 34%623 34% 641 34%633 33% $423 4,380 4,380 4,392 3,343 3,343 3,272 $341 $323 12 75% $435 $324 4 Year 2 20275 Year 3 20286 Year 4 20297 Year 5 2030 203189 Year 6 Year 7 Year 8 $377 $284 12 75% $387 $288 $398 $307 12 76% $410 $313 4,380 4,392 4,380 3,303 3,272 3,373 $230 12 70% $349 $246 $358 $263 12 75% $368 $277 4,380 2,953 4,392 4,380 4,380 3,093 3,216 3,303 6320 WCH Hotel Proforma - Full Year P&L ('000) 12 67% 12 73% 12 75%77% 12 12 76% 20253 Year 1 2026 2033 2034 Year 9 Year 10 203210 11 12 66 draft 28 Concluding Remarks In summary, it is not feasible to include lower-cost visitor accommodations on the Project site. This infeasibility is due to the site’s high land value, the Project’s high development costs, and the small site size. Additionally, since neither the supply of, nor demand for existing lower-cost visitor accommodations is impacted by the Project, we conclude the Project will not have any impact on the City’s existing lower-cost visitor accommodations, and no mitigation measures are required under Newport Beach Municipal Code Section 21.48.Based on the assessment of the hotel supply in the market and broader Orange County area, the proposed hotel should perform well with a $325 ADR, achieving 75% occupancy overall. The seasonality will drive these up and down, but the hotel benefits from being a 7-days a week operation, not a resort-only or business-only market. Guests who enjoy self service with the ease of checking in and checking out, and appreciate the freedom that this hotel will offer will provide a well positioned hotel within the Newport area market. Family and group stays can be a draw, as there are a handful of larger rooms which can accommodate families and larger parties of friends or retreats. nenewThe financial performance of the hotel rests almost entirely on the room rentals, and therefore rate is critical to maintain the property’s viability. PKF believes the hotel will have to push as much on rate as it can, without offering the on-site amenities that many of its competitors offer. A forced cap on room rates would therefore be very damaging to the overall returns. PKF remains available to comment on the analysis provided. Thank you, Channing Henry 67 Attachment No. ZA 5 Project Plans 68 SDUNLQJ 123$5.,1* F R D V W K L J K Z D \ SURVSHFWVWUHHW S 34°21'00" W 90.00' N 79°21'0 0" E 2 1.21' N 34°21'00" E 105.00' DOOH\ S 55°39'00" E 70.00' N 55°39'00" W 85.00' H[LVWLQJEXLOGLQJ H[LVWLQJEXLOGLQJ DDDD VLWHSODQSURMHFWGDWD FRS\ULJKW MRE DXJXVW F ZFRDVWKLJKZD\ QHZSRUWEHDFKFDOLIRUQLD SLQHNQRW DUFKLWHFW LQYHVWPHQW//& FOLHQW QHZSRUWEHDFKFDOLIRUQLD SURGXFWLRQSODFH QHZSRUWEHDFKFDOLIRUQLD EDOERDFRYHV WHO PRWHO WHO VLWHURRISODQ VKHHWLQGH[ SURMHFWFRQVXOWDQWV ; V\PEROVOHJHQG ; GHIHUUHGVXEPLWWDOV SXEOLFZRUNVQRWHV YLFLQLW\PDSQR U W K SURMHFWGDWDSURMHFWGDWDJHQHUDOQRWHV JHQHUDOQRWHV SURMHFWGDWD UHIQRUWK QRUWK 69 DDDD IORRUDUHDDQDO\VLV FRS\ULJKW MRE DXJXVW F ZFRDVWKLJKZD\ QHZSRUWEHDFKFDOLIRUQLD SLQHNQRW DUFKLWHFW LQYHVWPHQW//& FOLHQW QHZSRUWEHDFKFDOLIRUQLD SURGXFWLRQSODFH QHZSRUWEHDFKFDOLIRUQLD EDOERDFRYHV WHO PRWHO WHO VWIORRUDUHDDQDO\VLV QGIORRUDUHDDQDO\VLV VIOREE\FRIIHHEDU VIH[LVWLQJUHPDLQLQJIORRUDUHD SURMHFWDUHDDQDO\VLV VIVWIORRUQHZEXLOGLQJ VIQGIORRUQHZEXLOGLQJ VI727$/IORRUDUHD VIDOORZDEOHIORRUDUHD)$5 VIH[LVWLQJVLWHDUHD SURMHFWDUHDDQDO\VLV UHIQRUWK QRUWK 70 DESCRIPTION LEGEND XX 123.45 P.P. WM F.F. G.F. CONC. F.S. M.H. P A.C. T.G. MEAS. ELEVATIONS TOP-GRATE ASPHALT PLANTER MAN-HOLE FINISHED SURFACE CONCRETE GARAGE FLOOR FINISH FLOOR WATER METER POWER POLE FENCE PROPERTY LINE BUILDING WALL DECK BRICK REC. BRG. & DIST. NATURAL GRADEN.G. SCALE 1"=8’ 0’ 8’ 16’ N A L DESNECIL R OYEVRUS D L I FORNIASTATEOF C A RON MIEDEMA No. 4653EXP. 9/30/23 C.F. CURB FACE C.P. CONTROL POINT FL FLOWLINE LEAD & TAGL&T TC TOP OF CURB T.O.R. TOP OF ROOF S&W SPIKE & WASHER NOTE: RECORD EASEMENTS ARE NOT PLOTTED IF ANY. SURVEYOR OR ENGINEER SHALL PERMANENTLY MONUMENT PROPERTY CORNERS OR OFFSETS BEFORE STARTING GRADING. G.M. GAS METER E.P. EDGE OF PAVEMENT BENCH MARK #1J-58-80 DATUM: NAVD88 ELEVATION: 9.274 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF NEWPORT BEACH, IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: THE NORTHEAST ONE-HALF OF LOT 3, AND ALL OF LOTS 4, 5 AND 6 IN BLOCK 3 OF THE SEASHORE COLONY TRACT AS RECORDED IN BOOK 7, PAGE 25 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THAT PORTION OF AND LOT 3 AS SHOWN ON THE MAP RECORDED IN BOOK 7, PAGE 25 OF MISCELLANEOUS MAPS. BEGINNING AT THE EAST CORNER OF SAID LOT 3; THENCE ALONG THE SOUTHEASTERLY LINE OF SAID LOT 3, SOUTH 35 20’ 17" WEST, 15.00 FEET TO THE EAST CORNER OF THE SOUTHWESTERLY 15.00 FEET OF LOT 3 AS DESCRIBED IN BOOK 377, PAGE 29 OFFICIAL RECORDS OF ORANGE COUNTY; THENCE ALONG THE NORTHEASTERLY LINE OF SAID SOUTHWESTERLY 15.00 FEET OF LOT 3, NORTH 54 38’ 04" WEST, 15.00 FEET; THENCE NORTH 80 21’ 07" EAST, 21.21 FEET TO THE EAST CORNER OF SAID LOT 3, SAID CORNER BEING THE POINT OF BEGINNING PER DEED TO THE CITY OF NEWPORT BEACH, RECORDED MARCH 30, 1992 AS INSTRUMENT NO. 1992-196782 OFFICIAL RECORDS . ALSO EXCEPT THEREFROM ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES LYING BELOW A DEPTH OF 100 FEET WITHOUT ANY RIGHT TO ENTER UPON THE SURFACE OF SAID LAND, AS PROVIDED IN INSTRUMENTS OF RECORD. APN 045-084-09 JOB: 82-63 DATE: 11/19/21 RdM SURVEYING INC. RON MIEDEMA L.S. 4653 23016 LAKE FOREST DRIVE #409 LAGUNA HILLS, CA 92653 949 858-2924 OFFICE 949 422-1869 CELLRDMSURVEYING@COX.NET ADDRESS OF PROJECT LEGAL DESCRIPTION BENCH MARK TOPOGRAPHIC SURVEY OWNER VICINITY MAP NOT TO SCALE 6302 W. COAST HIGHWAY NEWPORT BEACH, CA N 55 39’00" W 85.00’ N 3 4 2 1 ’ 0 0 " E 1 0 5 . 0 0 ’ S 3 4 2 1 ’ 0 0 " W 9 0 . 0 0 ’ N 79 21’00" E 21.21’S 5539’00" E 70.00’ PROJECTSITE PR O S P E C T S T R E E T COAST HIGHWAY 20.30 RIDGE 22 . 3 8 RID G E 22 . 1 6 RID G E 10.16FS 10.40FS 10.31FS 10.06FS 10.39FS 10.39FS 10.13FS 10.32FS 10.23FS 9.98FS 9.86FS 9.78FS 9.52FS 9.34FS 9.76FS 9.41FS 9.61FS 9.6FS 9.32FS 9.23FS 9.16FS 9.30FS 9.41FS 9.70FS 9.71FS 9.61FS 9.67FS 9.57FS 9.55NG 9.53FS 9.65FS 9.62FS 9.53FS 9.59FS 9.75FS 9.76FS 9.73FS 9.75FS 9. 6 8 F S 9.53FS 9.75FS 9.6 8 F S 9.71FS 9.61FS 9.69FS 9.67FS 9.66 F S 9.78FS 9.63FS 9.79FS 9.43FS 9.29FS 9.48FS 9.43FS 9.57FS 9.56FS 9.6 2 F S 9.54FS 9.51NG 9.87NG 9.52NG 9.48NG 9.73FS PINE K N O T S I G N ELEC. BOXWMSBC BOXCABLE TV WM SIGN BOXTRAFFIC S I G N A L BOXTRAFF I C S I G N A L 17.95 EAVE 9.71FF 9.57FF 9.65FF 9.5FS 9.5FS LARGE LEANING PALM 9.69FF 17.08 EAVE 16.98 EAVE 16.99 EAVE 12.50TW 9.3FS 9.5NG 9.7FS 9.8FS 10.55TW 10.58TW 10.71TW 10.76TW 10.41TW 9.84FS 9.32FS 9.7FS 9.9FS 9.48FL 9.45FL 9.35FL 9.16FL 9.09FL 8.98FL 8.96TG 8.86TG 9.32FS 9.26FS 9.33FS 10.22FS 10.21FS 10.20FS 9.82TC 9.32FL 9.75TC 9.75TC 9.22FL 9.68TC 9.19FL 9.54TC 9.09FL 9.62TC X TRAFFIC SIG. ELEC. BOX 8.93FL 8.93FL 9.62TC X 9.59TC 9.66TC 9.94FL 9.01FS 9.60TC 9.12FS 9.67TC 0" CF 9.72TC 9.66TC 0" CF 9.84TC 8.98FS 9.61TC 8.91FL 8.94FL 8.9 1 F L 8.93FL 9.01FS 9.20FS 9.01FS 9.14FS AL L E Y 2.9 3.5 CF.W. 1.3 GUTTER 15.0 3.3 5.0 5.0 19.4 6.0 0.5 1.9 WOODLANDING CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC.CONC. CONC. CONC. CONC. CONC. CONC. CONC.CONC.CONC.CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC CONC. CONC. CONC. CONC. CONC. CONC. CONC. AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC.CONC. CONC. CONC. CONC.CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. NO P A R K I N G 1 STORY BUILDINGPOSTTYPICAL COV E R E D A R E A DECKABOVE WOOD X X X X X X X X CONC WROUGHT IRON FEONCE ON TOPOF WALL CONC. CONC. CONC. CONC. DIRT DIRT DIRT DIRT DIRT DIRT DIRT DIRT DIRT CONC. PROPERTYLINE CENTER LINE PROPERTYLINE PROPERTYLINE PRO P E R T Y LIN E CENTER LINE CEN T E R L I N E 1 S T O R Y B U I L D I N G 1 S T O R Y B U I L D I N G Pine Knott 71 PROSPECT STREET CO A S T H I G H W A Y ALLEYLLLAAAYYAAAAAAAAAAAAAEELLAAAA 1 STORY B UIL D I NG COVERED AREAEEEE 1 STORY BUILDING 1 STORY BUILDING W.I . F E N C E O N W A L L O .I LL W.. EXISTING BUILDINGTO REMAIN EXISTING BUILDINGTO REMAIN F.F.= 9.75PAD= ____ F.F.= 9.75PAD= ____ NO PARKINGNNAARR NNIIOO CEE OOON LL PROPOSED BUILDING PROPOSED BUILDINGPPPPPRRP WWWW 139 Avenida NavarroSan Clemente, CA 92672949.492.8586www.toalengineering.com CIVIL ENGINEERINGLAND SURVEYINGSTORMWATER QUALITY 23002 PI N E K N O T M O T E L PO R . L O T 3 & L O T S 4 , 5 , & 6 , S E A S H O R E C O L O N Y T R A C T ( A P N : 0 4 5 - 0 8 4 - 0 9 ) 63 0 2 W . C O A S T H I G H W A Y , N E W P O R T B E A C H , C A PRELIMINARY PLAN NOT FOR CONSTRUCTION DEVELOPMENT STATISTICSGRADING LEGEND STORM WATER LIFT STATION 1" = 8' N/A11/19/21 5/31/23 M.F.B. M.F.B. A.L.T. 1 2 C-1 PR E L I M I N A R Y GRA D I N G P L A N 72 PROSPECT STREET CO AST H I GHWAY ALLEYLLLAAAYYAAAAAAAAAAAEELLAAAA 1 STORY B UIL D I NG COVERED AREAEEEE 1 STORY BUILDING 1 STORY BUILDING EXISTING BUILDINGTO REMAIN EXISTING BUILDINGGGGTO REMAIN F.F.= 9.75PAD= ____ F.F.= 9.75PAD= ____ NO PARKINGNNAARR NNIIOO PROPOSED BUILDING PROPOSED BUILDING GG K AA NNNOPRKKNNGGGGGNNNNOOPARKINKANGNGNOPRKKNGGG 139 Avenida NavarroSanClemente,CA 92672949.4 92 .8 58 6www.toalengineering.com CIVIL ENGINEERINGLANDSURVEYINGSTORMWATERQUALITY 23002 PIN E K N OT M OTE L POR. L OT 3 & L OTS 4 , 5 , & 6 , SEA SHORE CO LONY T R A CT (AP N : 0 4 5 - 0 8 4 - 0 9 ) 630 2 W . C OAS T H I G H W A Y , N E W P ORT B E A C H , C A PRELIMINARY PLAN NOT FOR CONSTRUCTION 1" = 8' N/A11/19/21 5/31/23 M.F.B. M.F.B. 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