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HomeMy WebLinkAbout2.0_The Champions Club Staff Approval Appeal_PA2023-0138CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT October 19, 2023 Agenda Item No. 2 SUBJECT: The Champions Club Staff Approval Appeal (PA2023-0138) ▪Staff Approval SITE LOCATION: 1107 and 1171 Jamboree Road APPLICANT: Champion Management Group, Inc. OWNER: JK Kallins Investments Newport LLC APPELANT Thomas Duddy PLANNER: David Lee, Senior Planner 949-644-3225, dlee@newportbeachca.gov PROJECT SUMMARY An appeal of the Community Development Director’s August 3, 2023, Staff Approval, authorizing Champion Management Group, Inc. to separately operate six of 16 existing tennis courts previously operated by the Palisades Tennis Club and finding said change to be minor and in substantial conformance with Use Permit No. UP1697 approved in 1973. There are no physical improvements proposed for the continued tennis operations, and pickleball activities are not proposed at this time. The Palisades Tennis Club will continue to operate the remaining ten existing tennis courts and clubhouse adjacent to the proposed use. This item was continued from the September 21, 2023, Planning Commission meeting, at the request of the appellant due to scheduling conflicts. RECOMMENDATION 1)Conduct a public hearing; 2)Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; and 3)Adopt Resolution No. PC2023-034 upholding the action of the Community Development Director and approving with modifications the Staff Approval (PA2023- 0138) with the attached Findings and Conditions (Attachment No. PC 1). 1 INTENTIONALLY BLANK PAGE2 The Champions Club Staff Approval Appeal (PA2023-138) Planning Commission, October 19, 2023 Page 2 VICINITY MAP GENERAL PLAN ZONING LOCATION GENERAL PLAN ZONING CURRENT USE ON-SITE Parks and Recreation (PR) Parks and Recreation (PR) Recreation, Tennis Courts NORTH PR PR Recreation, Palisades Tennis Club SOUTH Visitor Serving Commercial (CV) Commercial Visitor- Serving (CV) Hyatt Hotel EAST Multiple Residential (RM) Sea Island Apartments (PC21) Sea Island Apartments WEST CV CV Hyatt Hotel Champions Club (Parcel 2) Palisades Club (Parcel 1) 3 INTENTIONALLY BLANK PAGE4 The Champions Club Staff Approval Appeal (PA2023-138) Planning Commission, October 19, 2023 Page 3 INTRODUCTION Project Setting The subject property is developed with six tennis courts and a 72-space surface parking lot, and is located on Jamboree Road between Back Bay Drive and San Joaquin Hills Road. Previously, the Palisades Tennis Club operated 16 total tennis courts between Parcel 1 and Parcel 2 of Resubdivision No. 413 (see Vicinity Map on Page 2), which are owned separately. The lease between the Palisades Club and the property owner of Parcel 2 was recently discontinued and a separate operator, the Champions Club, has subsequently entered into a lease agreement to operate the existing six tennis courts on Parcel 2. The Palisades Tennis Club will continue to operate the remaining 10 courts and clubhouse on Parcel 1. The property is adjacent to the Hyatt Hotel to the west and south, the Palisades Tennis Club and the Harbor Cove residential community to the north, and the Sea Island residential apartments to the east across Jamboree Road. Although the original tennis club was approved with 78 on-site spaces, subsequent re-striping of the parking lot to accommodate disable parking spaces as well as other changes has resulted in a 72-space parking lot that exists today. Background On October 4, 1973, Use Permit No. UP1697 was approved by the Planning Commission, authorizing the construction of a private tennis club with lighted tennis courts, known as the John Wayne Tennis Club at the time. At the time of the approval, the tennis club consisted of two separate parcels, Parcel 1 and Parcel 2 of Resubdivision No. 413, but jointly owned by The Irvine Company. In addition to the Vicinity Map on Page 2, the parcel map for Resubdivision No. 413 (Attachment No. PC 5) also demonstrates the layout of the parcels. The approval included a total of 16 lighted tennis courts (15 regular courts and one tennis ball machine court), and an approximately 8,100-square-foot, two level clubhouse consisting of restrooms and locker rooms, lounges, offices, and snack and apparel shops. Hours of operation for the club were limited to between 7 a.m. to midnight, daily. A total of 78 on-site surface parking spaces were provided for the tennis club use and located on Parcel 2. Parcel 1 does not include any parking. Since both parcels were solely operated by the John Wayne Tennis Club, the parking was intended to be provided for all 16 courts. Ingress and egress to both clubs are provided by easement through the Hyatt Hotel overflow parking lots on the eastern side of the hotel near Jamboree Road. As conditioned by UP1697, overflow parking during tournaments was provided through an off-site parking agreement at the hotel property. In 1992, the Irvine Company sold the two parcels to separate owners. Although there were two separate property owners, the courts had remained under a single operator, which was renamed the Palisades Tennis Club. The Palisades Club operated the courts under two separate leases until the lease with Parcel 2, which is now owned in common with the 5 The Champions Club Staff Approval Appeal (PA2023-138) Planning Commission, October 19, 2023 Page 4 adjacent Hyatt Hotel, was recently discontinued. Subsequently in August of 2023, the Champions Club entered into a lease agreement to operate a tennis club on the six courts of Parcel 2. Use of the six courts for tennis play and instruction has not commenced pending resolution of the subject appeal. Staff Approval and Subsequent Appeal On August 3, 2023, the Community Development Director approved Staff Approval No. PA2023-0138 authorizing a new operator, Champion Management Group, Inc. to operate the six existing tennis courts located on Parcel 2 under the name “The Champions Club” (Attachment No. PC 2). The staff approval included conditions of approval which ensured that there would be adequate parking for the Palisades Tennis Club within the Hyatt Regency Hotel property. It also ensured that any special events for the Champions Club would be coordinated with the Hyatt Hotel to avoid parking issues. As conditioned, members of the Champions Club would have access to restroom facilities at the Hyatt because the new club would not have access to the existing Palisades clubhouse facilities. The staff approval also specifically conditioned that no pickleball activities of any kind were permitted at the Champions Club. Hotel guests will have fee-based access to the club facilities. Members of the club will have access to the Hyatt hotel’s restroom facilities as they will not have access to the Palisades clubhouse. The operation is separate from the Palisades Tennis Club, which will remain in operation on Parcel 1 with 10 existing courts and clubhouse. The applicant is proposing hours of operation between 8 a.m. to 8:30 p.m., daily, which is within the allowed hours of operation per UP1697. No physical improvements are proposed for the request to continue tennis operations. Any future changes or improvements to the project site will require further review by City staff and may require additional entitlements and/or building permits. Pickleball would also require additional analysis due to the intensification of use, and as such, pickleball at the project site is not allowed. On August 14, 2023, an appeal of Staff Approval No. PA2023-0138 was filed by Thomas Duddy. The appeal application, which include the appellant’s grounds for appeal, are included in Attachment No. PC 3. Further discussion of the appeal is addressed on Page 7 of this report. Conduct of Hearing Pursuant to Municipal Code Section 20.64.030.C.3 (Filing and Processing of Appeals and Calls for Review - Conduct of Hearing), a public hearing on an appeal is conducted “de novo,” meaning that it is a new hearing and the prior action of the Community Development Director has no force or effect. The Planning Commission is not bound by the Community Development Director’s prior decision or limited to the issues raised by the appeal. 6 The Champions Club Staff Approval Appeal (PA2023-138) Planning Commission, October 19, 2023 Page 5 DISCUSSION Analysis General Plan, Zoning Code, and Local Coastal Plan The property is categorized as Parks and Recreation (PR) by the General Plan Land Use Element and located in the PR Zoning District. Additionally, the property is located PR coastal land use and coastal zoning district. These designations are intended to provide for areas appropriate for land used or proposed for active public or private recreational use. A tennis club is a listed example of an allowed use within the PR Zoning District. The six existing tennis courts on Parcel 2 are part of the tennis club originally authorized by UP1697. A new operator on Parcel 2 does not conflict with the allowances of UP1697, as the courts will continue to be used for tennis play and instruction. As conditioned, no pickleball is permitted on any courts as a part of the new operation. Adequate and available parking for both Champions Club and Palisades is also included and all activities are subject to all conditions of UP1697. Modified Parking Use Permit UP1697 requires 78 parking spaces for all tennis operations. As noted, the lot was restriped to improve the layout. As a result, the parking lot on Parcel 2 accommodates 72 spaces. The staff approval authorized parking for the Champions Club tennis uses in both the on-site parking lot (14 spaces) as well as the off-site parking lot of the Hyatt Hotel (43 spaces). An additional 53 parking spaces on-site were designated as hotel parking on Parcel 2 and did not disclose the location of parking for the Palisade Tennis Club. After the appeal, the applicant submitted a modified site plan, showing all 72 existing parking spaces on Parcel 2 as dedicated to the use of both tennis clubs, as well as an additional 6 parking spaces located in the adjacent Hyatt parking lot proximate to the courts. Overall, the site plan demonstrates that a minimum of 78 parking spaces, a majority which are Parcel 2, are provided for both tennis club operators. Staff believes this is substantially conforming to UP1697, which requires 78 parking spaces for the tennis use. As previously stated, Parcel 2 is owned in common with the Hyatt Regency Hotel. Therefore, the Champions Club will have affiliation with the hotel. In addition to the on-site parking lot, the tennis club uses will have the exclusive use of the six aforementioned parking spaces located on the adjacent hotel parking lot, as well as access to overflow parking spaces for special events on an as-needed basis. The larger hotel parcel accommodates approximately 700 spaces well over the minimum parking for the 402-room hotel, so dedicating the six spaces to the tennis uses as well as continued use of the Hyatt parking lot for special events and tournaments as allowed by UP1697 will continue. 7 The Champions Club Staff Approval Appeal (PA2023-138) Planning Commission, October 19, 2023 Page 6 Staff Approval Findings Pursuant to Section 20.54.070 (Changes to an Approved Project) of the Newport Beach Municipal Code (NBMC), the Community Development Director may authorize minor changes to an approved site plan, architecture, or the nature of the approved use without a public hearing, and waive the requirement for a new use permit application. In this case, since the Community Development Director has been appealed, the Planning Commission must determine that the new club operator is in substantial conformance with UP1697 because the project’s changes: a. Are consistent with all applicable provisions of this Zoning Code; b. Do not involve a feature of the project that was a basis for or subject of findings or exemptions in a negative declaration or Environmental Impact Report for the project; c. Do not involve a feature of the project that was specifically addressed or was the subject of a condition(s) of approval for the project or that was a specific consideration by the applicable review authority in the project approval; and d. Do not result in an expansion or change in operational characteristics of the use. As previously discussed, the continuation of a tennis club use on Parcel 2 with a new operator is consistent with the PR zone, as the purpose of the zone is to provide for areas of land used for active public or private recreational use. The operator is proposing tennis instruction and play, consistent with UP1697, which authorized a private tennis club with 78 parking spaces on-site. The project will include all existing 72 parking spaces on-site to tennis club uses, which include both the Champions Club and Palisades operations. An additional six off-site spaces at minimum will be provided on the adjacent Hyatt hotel parking lot. UP1697 included Environmental Impact Report (EIR) No. 73-038, which discussed the construction of the tennis club, clubhouse, associated parking, etc. and its potential impact on human resources, geologic hazards, flooding, ground water, noise, air resources, vegetation and animal life, traffic, and public recreational facilities (Attachment No. PC 7). The report concludes that the tennis club does not have a significant effect on the environment. Since there is no change in use of the tennis courts and no new construction, there are no features of the project that can potentially affect the environment. The proposed change of operator on Parcel 2 does not involve a feature that was specifically conditioned or addressed by UP1697. The Champions Club is proposing to operate within the conditioned hours of operation (7 a.m. to midnight, daily). Additional conditions of approval for the club have been included as a part of this Staff Approval to ensure adequate parking is provided for both operators and that there is no pickleball use allowed. 8 The Champions Club Staff Approval Appeal (PA2023-138) Planning Commission, October 19, 2023 Page 7 The Appeal As previously stated, an appeal of Staff Approval No. PA2023-0138 was filed by Thomas Duddy on August 14, 2023 (Attachment No. PC 3). The appellant is requesting that the Planning Commission reverse the decision based on the following: 1. The Director’s decision did not proceed in the manner required by law. 2. The Director’s decision was an abuse of discretion and was not supported by the findings and the findings are not supported by the evidence. 3. The Director’s decision violated the California Environmental Quality Act (Pub. Resources Code § 21000, et seq.) because it did not consider the “whole of an action,” as required by CEQA Guidelines section 15378. 4. The Director’s decision did not properly consider the relevant provisions of the Coastal Act (Pub. Resources Code, §§30000, et seq.) as it did not properly consider the whole of the action. Pursuant to Section 20.54.070 (Changes to an Approved Project) of the NBMC, the Director may authorize minor changes to an approved site plan, architecture, or the nature of the approved use, without a public hearing, if the required findings could be made. Staff believes that the issuance of a staff approval was appropriate for the request of a different operator for six of the existing tennis courts. The findings required by Section 20.54.070 (Changes to an Approved Project) were addressed in the Staff Approval and are reiterated in the attached draft resolution (Attachment No. PC 1). The request does not authorize a new use, new development, or a change of the existing use; instead, it allows a new and separate operator to continue the existing use authorized by UP1697 given the changed lease arrangements. The additional modification that the applicant has made which provides a majority of the parking for the tennis uses onto Parcel 2 further improves the substantial compliance finding. In summary, staff believes there are not facts that suggest that a new or amended use permit would be required. Staff believes that the Class 1 (Existing Facilities) exemption of the California Environmental Quality Act (CEQA) is appropriate since Class 1 exempts the operation or leasing of existing private facilities. No new development or change in the existing intensity of use is authorized. What is authorized is a continuation of the existing use only and the Coastal Act requirement for a Coastal Development permit is not justified as no new development will occur. Staff believes the appellant is concerned the applicant will convert the courts to accommodate pickleball and that the City has not adequately examined the whole of what the applicant intends. The applicant has not filed an application to change the existing use, the applicant simply wants to continue the existing authorized use. The staff approval preserves existing rights to continue tennis use consistent with UP1697. Should the applicant or other party intend to modify the allowed tennis use of the site in the future to potentially accommodate pickleball, a Conditional Use permit and Coastal Development permit would be required. 9 The Champions Club Staff Approval Appeal (PA2023-138) Planning Commission, October 19, 2023 Page 8 Summary The site has been utilized as a tennis club since the Planning Commission originally authorized the use in 1973. Although it has been historically been run by one operator, the club is located on two parcels which now has two separate property owners. Parking is exclusively located on the lot proposed to be operated by the Champions Club, whereas Palisades does not have any on-site parking. Aside from clarifying that the new operator has a vested land use right for the tennis operation through the existing use permit, the Community Development Director’s staff approval includes conditions of approval which ensured that parking would be made available to the Palisades Club. It also includes conditions which prohibit pickleball and ensures that restrooms are available for Champions Club members at the Hyatt Hotel. Public correspondence received during staff report preparation (Attachment No. PC 9) and the applicant’s response to correspondence (Attachment No. PC 10) has been included as attachments to this report. Environmental Review This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3 because it has no potential to have a significant effect on the environment. The Class 1 exemption allows for the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The Staff Approval authorizes a new operator for six existing tennis courts for tennis play and instruction. Public Notice Notice of this hearing was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights-of-way and waterways) including the applicant, and posted on the subject property at least 10 days before the scheduled meeting, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the city website. Prepared by: Submitted by: _____________________ David Lee, Senior Planner 10 The Champions Club Staff Approval Appeal (PA2023-138) Planning Commission, October 19, 2023 Page 9 ATTACHMENTS PC 1 Draft Resolution with Findings and Conditions PC 2 Director’s Staff Approval PA2023-0138 (No Attachments) PC 3 Appeal Application PC 4 Correspondence from Property Owner Regarding Parking PC 5 Parcel Map for Subdivision No. 413 PC 6 Use Permit No. UP1697 PC 7 Environmental Impact Report No. 73-038 PC 8 Project Plans PC 9 Public Correspondence PC 10 Applicant Response to Correspondence 11 INTENTIONALLY BLANK PAGE12 Attachment No. PC 1 Draft Resolution with Findings and Conditions 13 INTENTIONALLY BLANK PAGE14 RESOLUTION NO. PC2023-034 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA UPHOLDING THE COMMUNITY DEVELOPMENT DIRECTOR’S APPROVAL AUTHORIZING A NEW OPERATOR FOR SIX EXISTING TENNIS COURTS AND FINDING SUBSTANTIAL CONFORMANCE WITH USE PERMIT NO. UP1697 FOR THE PROPERTY LOCATED AT 1107 AND 1171 JAMBOREE ROAD (PA2023-0138) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Sean Matsler of Cox, Castle, & Nicholson LLP (“Applicant”), concerning property located at 1107 and 1171 Jamboree Road, and legally described as Parcel 2 of Resubdivision No. 413 (“Property”). 2. On October 4, 1973, Use Permit No. UP1697 was approved by the Planning Commission, authorizing the construction of a private tennis club with lighted tennis courts, known as the John Wayne Tennis Club at the time. At the time of the approval, both Parcel 1 and Parcel 2 were owned by The Irvine Company. The approval included a total of 16 tennis courts (15 regular courts and one tennis ball machine court), an approximately 8,100- square-foot, two-level tennis clubhouse consisting of restrooms and locker rooms, lounges, offices, and snack and apparel shops. Additionally, 78 parking spaces were provided in an on-site surface parking lot located on Parcel 2, which accommodated the clubhouse and all tennis courts. Parcel 1 does not include on-site parking. Since both parcels were solely operated by the John Wayne Tennis Club, the parking was intended to be provided for all 16 courts. Use Permit No. UP1697 limited the hours of operation for the club to the hours of 7 a.m. to midnight, daily. Subsequent to the approval of Use Permit No. UP1697, the John Wayne Tennis Club began operations in 1974. In 1992, the Irvine Company sold the two parcels to two separate owners. Although there were two separate property owners, the courts had remained under a single operator, which was renamed the Palisades Tennis Club. The Palisades Club operated the courts under two separate leases until the lease with Parcel 2, which is now owned in common with the adjacent Hyatt Hotel, was recently discontinued. Subsequently in August of 2023, the Champions Club began a lease agreement to operate a tennis club for the six courts of Parcel 2. 3. The Applicant proposes to operate the six existing tennis courts on Parcel 2 for tennis play and instruction, under the name “The Champions Club,” independent of The Palisades Tennis Club, but in substantial conformance with Use Permit No. UP1697 (“Project”). The operation is separate from the Palisades Tennis Club, which will remain in operation on Parcel 1 of Resubdivision No. 413 with 10 existing courts. 4. The Property is designated Parks and Recreation (PR) by the General Plan Land Use Element and is located within the Parks and Recreation (PR) Zoning District. 15 Planning Commission Resolution No. PC2023-034 Page 2 of 8 5. The Property is located within the coastal zone. The Coastal Land Use Plan category is Parks and Recreation (PR) and it is located within the Parks and Recreation (PR) coastal zoning district. Since the Project is to change the operator of the existing six tennis courts, there is no physical change to the Property and therefore no intensification of use, a coastal development permit is not required for the Project. 6. The Community Development Director approved a Staff Approval for the Project on August 3, 2023. The proposed change of operator on Parcel 2 is considered minor and does not involve a feature that was specifically conditioned or addressed by Use Permit No. UP1697. Additionally, the proposed hours of operation between the hours of 8:00 am and 8:00 p.m. are within the hours of operation authorized by Use Permit No. UP1697. The Staff Approval included additional conditions of approval to ensure adequate parking for the existing Palisades Tennis Club of Parcel 1 and that there would be no pickleball activities of any kind on the Property. 7. On August 14, 2023, Thomas Duddy filed an appeal of the Community Development Director’s decision, objecting to the facts in support of the findings in the Staff Approval, compliance with the California Environmental Quality Act, and consistency with the Coastal Act. 8. A public hearing was held on September 21, 2023 in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of the time, place, and purpose of the hearing was given in accordance with California Government Code Section 65950 et seq. (“Ralph M. Brown Act”) and Chapter 20.62 (Public Hearings) of the Newport Beach Municipal Code (“NBMC”). The Planning Commission voted to continue the item date- certain to the October 5, 2023, meeting at the request of the appellant. The item was continued to the October 19, 2023 meeting due to the lack of a quorum. 9. A public hearing was held on October 19, 2023 in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of the time, place, and purpose of the hearing was given in accordance with California Government Code Section 65950 et seq. (“Ralph M. Brown Act”) and Chapter 20.62 (Public Hearings) of the Newport Beach Municipal Code (“NBMC”). Evidence, both written and oral, was presented to and considered by, the Planning Commission at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. Environmental Impact Report No. EIR038 analyzed all environmental impact associated with Use Permit No. UP1697 and was certified with the original project. The Project does not result in any physical changes to the original project. Rather, the Project would authorize a different operator on Parcel 2 than what was originally approved, therefore, all impacts of the operation of a tennis club were fully analyzed by EIR038. 2. Additionally, this Project is exempt from the California Environmental Quality Act (“CEQA”) under Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 because it has no potential to have a significant effect on the environment. 16 Planning Commission Resolution No. PC2023-034 Page 3 of 8 3. The Class 1 exemption allows for the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Use Permit No. UP1697 was approved by the Planning Commission, authorizing the construction of total of 16 tennis courts (15 regular courts and one tennis ball machine court), an approximately 8,100-square-foot, two-level tennis clubhouse consisting of restrooms and locker rooms, lounges, offices, and snack and apparel shops on Parcel 1 and Parcel 2. Additionally, 78 parking spaces were provided in an on-site surface parking lot located on Parcel 2, which accommodated the clubhouse and all tennis courts. on Parcel 1 and Parcel 2 were owned by The Irvine Company. The Staff Approval authorizes a new operator for six existing tennis courts for tennis play and instruction with hours of operation within the time frames authorized by Use Permit No. 1693. Therefore, the Project is also categorically exempt under Section 15301. SECTION 3. REQUIRED FINDINGS. Pursuant to Section 20.54.070 (Changes to an Approved Project) of the NBMC, the Community Development Director may authorize minor changes to an approved site plan, architecture, or the nature of the approved use without a public hearing and waive the requirement for a new use permit application. In this case, the Community Development Director has determined that the new club operator is in substantial conformance with Use Permit No. UP1697 based upon the following findings and facts in support of such findings: Finding: A. Are consistent with all applicable provisions of this Zoning Code. Facts in Support of Finding: 1. The Property is located in the Parks and Recreation (PR) Zoning District, which is intended to provide for areas appropriate for land used or proposed for active public or private recreational use. A tennis club is a listed example of an allowed use within the PR Zoning District. The six existing tennis courts on Parcel 2 are part of the tennis club originally authorized by Use Permit No. UP1697. 2. A new operator on Parcel 2 does not conflict with the allowances of Use Permit No. UP1697, as the courts will continue to be used for tennis play and instruction. As conditioned, no pickleball is permitted on any courts as a part of the new operation. Adequate and available parking for both the Project and Palisades is also included as a condition of approval. 3. Although the original tennis club was approved with 78 on-site spaces, subsequent re- striping of the parking lot has resulted in a 72-space parking lot which exists today. The Applicant is proposing for all 72 on-site parking spaces to be dedicated to the use of both tennis clubs, as well as an additional six parking spaces minimum located on the Hyatt parking lot. Overall, the Applicant is proposing a minimum of 78 parking spaces, a majority 17 Planning Commission Resolution No. PC2023-034 Page 4 of 8 which are Parcel 2, to be provided for both tennis club operators, which is in substantial conformance to Use Permit No. UP1697. Finding: B. Do not involve a feature of the project that was a basis for or subject of findings or exemptions in a negative declaration or Environmental Impact Report for the project. Facts in Support of Finding: 1. Environmental Impact Report No. EIR038, fully analyzed environmental impacts associated with the construction of the tennis club, clubhouse, associated parking, etc. and its potential impact on human resources, geologic hazards, flooding, ground water, noise, air resources, vegetation and animal life, traffic, and public recreational facilities. The EIR was certified contemporaneous with approval of Use Permit No. UP1697 and concluded that the tennis club did not have a significant effect on the environment. 2. There are no physical changes proposed by the Project. The Project proposes a new operator for six of the existing 16 tennis courts on Parcel 2, separately from the existing Palisades Tennis Club on Parcel 1. Since there is no change in use of the tennis courts, the hours of operation are consistent with the original approval, and parking would still be provided to both Parcel 1 and Parcel 2, there are no features of the project that can potentially affect the environment. 3. The findings set forth in SECTION 2 (CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION) are incorporated herein by reference. Finding: C. Do not involve a feature of the project that was specifically addressed or was the subject of a condition(s) of approval for the project or that was a specific consideration by the applicable review authority in the project approval. Facts in Support of Finding: 1. The proposed change of operator on Parcel 2 does not involve a feature that was specifically conditioned or addressed by Use Permit No. UP1697. The Champions Club is proposing to operate between 8 a.m. to 8:30 p.m., daily, which are within the conditioned hours of operation (7 a.m. to midnight, daily). 2. There are no physical changes proposed by the Project. Any future changes are subject to building permits and a potential amendment to Use Permit No. UP1697. 3. Additional conditions of approval for the club have been included as a part of this Staff Approval to ensure that the existing tennis use does not expand or change where it would become inconsistent with Use Permit No. UP1697. 18 Planning Commission Resolution No. PC2023-034 Page 5 of 8 Finding: D. Do not result in an expansion or change in operational characteristics of the use. Facts in Support of Finding: 1. Fact A.2 is hereby incorporated by reference. 2. Fact C.2 is hereby incorporated by reference. The following facts in support of findings support that the Director’s decision proceeded in the manner required by law, was not an abuse of discretion and was supported by the findings and the findings are not supported by the evidence, did not violate the California Environmental Quality Act, and considered the relevant provisions of the Coastal Act: Finding: E. The Staff Approval Proceeded in a Manner Required by Law. Facts in Support of Finding: 1. A staff approval by the Community Development Director was appropriate for the request of a different operator on six of the existing tennis courts. The findings required by Section 20.54.070 (Changes to an Approved Project) were addressed in the approved Staff Approval. Section 20.54.070 does not require a public hearing. Therefore, the Staff Approval was not noticed to the public. 2. The request does not authorize a new use, new development, or a change of the existing use; instead, it allows a new and separate operator to continue the existing use given the changed lease agreements. Finding: F. The Staff Approval was not abuse of discretion and are supported by the evidence. Fact in Support of Finding: 1. The recitals above and facts in support of findings A through D above are incorporated herein by reference. Finding: G. The Staff Approval complies with CEQA. Fact in Support of Finding: 1. SECTION 2 (CALIFORNIA ENVIORNMENTAL QUALITY ACT DETERMINATION) and Finding B are incorporated herein by reference. 19 Planning Commission Resolution No. PC2023-034 Page 6 of 8 Finding: H. The Staff Approval complies with the California Coastal Act. Fact in Support of Finding: 1. No new development or change in the existing intensity of use is authorized. Instead, a continuation of the existing use is authorized. The Coastal Act requirement for a Coastal Development Permit is not justified as no new development will occur. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby finds this project is categorically exempt from the California Environmental Quality Act under Section 15301 under Class 1 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3 because it has no potential to have a significant effect on the environment. 2. The Planning Commission of the City of Newport Beach hereby upholds the Community Development Director’s approval of the Staff Approval (PA2023-0138), subject to the conditions outlined in Exhibit “A,” which is attached hereto and incorporated by reference. The conditions of approval in Exhibit “A” are in addition to the conditions of approval set forth in Use Permit No. UP1697. 3. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal is filed with the City Clerk by the provisions of Title 20 Planning and Zoning, of the Newport Beach Municipal Code. 20 Planning Commission Resolution No. PC2023-034 Page 7 of 8 PASSED, APPROVED, AND ADOPTED THIS 19TH DAY OF OCTOBER, 2023. AYES: NOES: ABSTAIN: ABSENT: BY:_________________________ Curtis Ellmore, Chair BY:_________________________ Tristan Harris, Secretary 21 Planning Commission Resolution No. PC2023-034 Page 8 of 8 EXHIBIT “A” CONDITIONS OF APPROVAL (Project-specific conditions are in italics) 1. The development shall be in substantial conformance with the approved site plan and floor plan stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2. All applicable conditions of approval for Use Permit No. UP1697 shall remain in effect. 3. All parking located within Parcel 2 of Resubdivision No. 413 shall available for tennis club use per the approved plans. A minimum of 78 spaces shall be available for use within Parcel 2 of Resubdivision No. 413 and the adjacent hotel property per the approved plans. 4. Any special events for the tennis clubs shall be coordinated with the Hyatt Regency Hotel to avoid potential issues with parking. 5. Members of the Tennis Club on Parcel 2 shall have access to restroom facilities at the Hyatt Regency Hotel. 6. There shall be no pickleball activities of any kind within the tennis clubs unless an amendment to the use permit is approved. 7. The Community Development Director may add to or modify conditions to this staff approval or revoke this staff approval upon determination that the operations, which is the subject of this staff approval, causes injury, or is detrimental to the public health, safety, peace, or general welfare of the community or if the property is operated or maintained so as to constitute a public nuisance. 8. To the fullest extent permitted by law, Applicant shall indemnify, defend and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney’s fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to City’s approval of The Champions Club including, but not limited to, a staff approval under PA2023-0138. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorney’s fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by Applicant, City, and/or the parties initiating or bringing such proceeding. The Applicant shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. The Applicant shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this condition. 22 Attachment No. PC 2 Director’s Staff Approval PA2023-0138 (No Attachments) 23 INTENTIONALLY BLANK PAGE24 COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION 100 Civic Center Drive, P.O. Box 1768, Newport Beach, CA 92658-8915 949-644-3200 www.newportbeachca.gov COMMUNITY DEVELOPMENT DIRECTOR ACTION LETTER Subject: The Champions Club (PA2023-0138) ▪ Staff Approval Site Location 1107 Jamboree Road Applicant Champion Management Group, Inc. Legal Description Parcel 2 of Resubdivision No. 413 On August 3, 2023, the Community Development Director approved a staff approval authorizing a new operator, Champion Management Group Inc. (“Applicant”), to operate six existing tennis courts located on Parcel 2 of Resubdivision No. 413 (“Property”) under the name “The Champions Club”. These six (6) courts were previously a part of the Palisades Tennis Club, which will continue to separately operate the ten (10) existing tennis courts and clubhouse located on Parcel 1 of Resubdivision No. 413. The Community Development Director finds that the change in operator for the six (6) courts on Parcel 2 to be in substantial conformance with the previously approved Use Permit No. UP1697. LAND USE AND ZONING • General Plan Land Use Plan Category: PR (Parks and Recreation) • Zoning District: PR (Parks and Recreation) • Coastal Land Use Category: PR (Parks and Recreation) • Coastal Zoning District: PR (Parks and Recreation) BACKGROUND On October 4, 1973, Use Permit No. UP1697 was approved by the Planning Commission, authorizing the construction of a private tennis club with lighted tennis courts, known as the John Wayne Tennis Club at the time. At the time of the approval, both Parcel 1 and Parcel 2 were owned by The Irvine Company. A vicinity map (Attachment No. CD 1) and the parcel map for Resubdivision No. 413 (Attachment No. CD 2) has been to demonstrate the layout of the parcels. The approval included a total of 16 tennis courts (15 regular courts and one (1) tennis ball machine court), an approximately 8,100-square-foot, two (2)-level tennis clubhouse consisting of restrooms and locker rooms, lounges, offices, and snack and apparel shops. Additionally, 78 parking spaces were provided in an on-site surface parking lot located on Parcel 2, which accommodated the clubhouse and all tennis courts. Parcel 1 does not include parking. Since both parcels were solely operated by the John Wayne Tennis Club, 25 The Champions Club (PA2023-0138) August 4, 2023 Page 2 Tmplt: 07/25/19 the parking was intended to be provided for all 16 courts. UP1697 limited the hours of operation for the club to the hours of 7 a.m. to midnight, daily. All conditions of approval are included in Attachment No. CD 3. Subsequent to the approval of UP1697, the John Wayne Tennis Club began operations in 1974. In 1995, the change of ownership led to the change of name to the Palisades Tennis Club. Parcel 1 and Parcel 2 have become separately owned, with Parcel 2 being owned in common with the Hyatt Regency Hotel. PROPOSED CHANGES The Applicant is proposing to operate the six (6) existing tennis courts on Parcel 2 for tennis play and instruction, under the name “The Champions Club.” The operation is separate from the Palisades Tennis Club, which will remain in operation on Parcel 1 with ten (10) existing courts. The Applicant is proposing hours of operation between 8 a.m. to 8:30 p.m., daily. Pickleball of any form is strictly prohibited at the club unless an amendment is filed for a new use permit (Condition of Approval No. 6). Since the on-site parking lot is located on Parcel 2, the property owner has provided confirmation that parking will continue to be provided to members of the Palisades Tennis Club (Attachment No. CD 5). This has been included as Condition of Approval No. 3 as a part of this Staff Approval. As previously stated, Parcel 2 is owned in common with the Hyatt Regency Hotel. Therefore, the Champions Club will have affiliation with the hotel. In addition to the on-site parking lot, the club will have the exclusive use of 43 parking spaces located on the adjacent hotel parking lot, as well as access to overflow parking spaces for special events on an as-needed basis. Hotel members will have fee-based access to the club facilities. Members of the club will have access to the hotel’s restroom facilities. Since the clubhouse and restrooms are located within the Palisade’s property, members of the Champions Club will not have access to Palisade’s facilities. No physical improvements are proposed for the Applicant’s request to continue tennis operations. Any future changes or improvements to the club will require further review by City staff and may require additional entitlements and/or building permits. FINDINGS Pursuant to Section 20.54.070 (Changes to an Approved Project) of the Newport Beach Municipal Code (NBMC), the Community Development Director may authorize minor changes to an approved site plan, architecture, or the nature of the approved use without a public hearing, and waive the requirement for a new use permit application. In this case, the Community Development Director has determined that the new club operator is in substantial conformance with UP1697 because the project’s changes: 26 The Champions Club (PA2023-0138) August 4, 2023 Page 3 Tmplt: 07/25/19 Finding: A. Are consistent with all applicable provisions of this Zoning Code. Facts in Support of Finding: 1. The Property is located in the Parks and Recreation (PR) Zoning District, which is intended to provide for areas appropriate for land used or proposed for active public or private recreational use. A tennis club is a listed example of an allowed use within the PR Zoning District. The six (6) existing tennis courts on Parcel 2 are part of the tennis club originally authorized by UP1697. 2. A new operator on Parcel 2 does not conflict with the allowances of UP1697, as the courts will continue to be used for tennis play and instruction. As conditioned, no pickleball is permitted on any courts as a part of the new operation. Adequate and available parking for both the Project and Palisades is also included as a condition of approval. Finding: B. Do not involve a feature of the project that was a basis for or subject of findings or exemptions in a negative declaration or Environmental Impact Report for the project. Fact in Support of Finding: 1. UP1697 included an Environmental Impact Report which discussed the construction of the tennis club, clubhouse, associated parking, etc. and its potential impact on human resources, geologic hazards, flooding, ground water, noise, air resources, vegetation and animal life, traffic, and public recreational facilities. The report concludes that the tennis club does not have a significant effect on the environment. 2. There are no physical changes proposed. The Applicant is proposing to operate the six (6) existing courts on Parcel 2, separately from the existing Palisades Tennis Club on Parcel 1. Since there is no change in use of the tennis courts, there are no features of the project that can potentially affect the environment, Finding: C. Do not involve a feature of the project that was specifically addressed or was the subject of a condition(s) of approval for the project or that was a specific consideration by the applicable review authority in the project approval. Facts in Support of Finding: 1. The proposed change of operator on Parcel 2 does not involve a feature that was specifically conditioned or addressed by UP1697. The Champions Club is 27 The Champions Club (PA2023-0138) August 4, 2023 Page 4 Tmplt: 07/25/19 proposing to operate within the conditioned hours of operation (7 a.m. to midnight, daily). 2. There are no physical changes proposed. Any future changes are subject to building permits and a potential amendment to UP1697. 3. Additional conditions of approval for the club have been included as a part of this Staff Approval to provide zoning clearance for the new use. Finding: D. Do not result in an expansion or change in operational characteristics of the use. Facts in Support of Finding: 1. Fact A.2 is hereby incorporated as reference. 2. Fact C.2 is hereby incorporated as reference. CONDITIONS 1. The development shall be in substantial conformance with the approved site plan and floor plan stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2. All applicable conditions of approval for Use Permit No. UP1697 shall remain in effect. 3. Adequate parking for the Palisades Tennis Club of Parcel 1 shall be provided on the Hyatt Regency Hotel property. 4. Any special events for the Tennis Club on Parcel 2 shall be coordinated with the Hyatt Regency Hotel to avoid potential issues with parking. 5. Members of the Tennis Club on Parcel 2 shall have access to restroom facilities at the Hyatt Regency Hotel. 6. There shall be no pickleball activities of any kind within the Tennis Club on Parcel 2. 7. The Community Development Director may add to or modify conditions to this staff approval, or revoke this staff approval upon determination that the operations, which is the subject of this staff approval, causes injury, or is detrimental to the public health, safety, peace, or general welfare of the community or if the property is operated or maintained so as to constitute a public nuisance. 8. To the fullest extent permitted by law, Applicant shall indemnify, defend and hold harmless City, its City Council, its boards and commissions, officials, officers, 28 The Champions Club (PA2023-0138) August 4, 2023 Page 5 Tmplt: 07/25/19 employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney’s fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to City’s approval of the The Champions Club including, but not limited to, a staff approval under PA2023- 0138. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorney’s fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by Applicant, City, and/or the parties initiating or bringing such proceeding. The Applicant shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. The Applicant shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this condition. APPEAL PERIOD: An appeal or call for review may be filed with the Director of Community Development or City Clerk, as applicable, within fourteen (14) days following the date the action or decision was rendered. For additional information on filing an appeal, contact the Planning Division at 949-644-3200. Prepared by: ____________________ David S. Lee Senior Planner Approved by: Assistant City Manager JM/dl Attachments: CD 1 Vicinity Map CD 2 Parcel Map for Subdivision No. 413 CD 3 Use Permit No. UP1697 CD 4 Applicant’s Project Description CD 5 Correspondence from Property Owner Regarding Parking CD 6 Project Plans 29 INTENTIONALLY BLANK PAGE30 Attachment No. PC 3 Appeal Application 31 INTENTIONALLY BLANK PAGE32 33 34 Newmeyer & Dillion LLP 895 Dove Street Fifth Floor Newport Beach, CA 92660 949 854 7000 Michael W. Shonafelt Michael.Shonafelt@ndlf.com July 18, 2023 VIA EMAIL Seimone Jurjis Community Development Director City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 sjurjis@newportbeachca.gov Re: Palisades Tennis Club: Proposal to Convert Tennis Courts Dear Mr. Jurjis, This office represents Tom Duddy, a member of the Palisades Tennis Club (“Tennis Club”), which operates the 15 tennis courts, clubhouse and related facilities at or near the premises of the Hyatt Regency (“Hyatt”) at 1171 Jamboree Road in the City of Newport Beach (“City”). It is our understanding that a proposal has been presented to Hyatt to convert at least six of the Tennis Club’s courts to make way for 18 to 24 pickleball courts and displace a number of parking spaces currently used for the tennis courts. We further understand that the Tennis Club operates under a 1973 conditional use permit (“UP1697”), which runs with the land and has expressly authorized the ongoing uses of the Tennis Club, including the 15 tennis courts on site, for some 50 years now. The uses authorized by UP1697 are very specific, and the environmental review, findings and conditions of approval for UP1697 are tightly tailored to the number of courts allowed (15), the uses of the courts (exclusively tennis), and the specific amenities and features of the Tennis Club. The proposed conversion of six tennis courts to pickleball will result in obvious disruptions to the time-honored uses approved by the City for this site. Because it will allow as many as four courts of play to each tennis court, it will significantly increase the intensity of use and increase impacts on parking, traffic, light and noise, not to mention the character of the activities at the Tennis Club. As just one example, the Tennis Club is currently parked based on a four space-per-court ratio. The proposed conversion will result in a fourfold increase in demand on those limited spaces. 35 Seimone Jurjis Community Development Director City of Newport Beach July 18, 2023 Page 2 9999.MWS / 15244732.1 Las Vegas | Newport Beach | Walnut Creek newmeyerdillion.com At a minimum, the proposed conversion will require a material revision or amendment to UP1697. Additionally, because the Tennis Club lies within the City’s Coastal Zone, and because the City’s Local Coastal Program requires a Coastal Development Permit for any kind of “development” as broadly defined in the Coastal Act, the conversion will have to proceed through some sort of Coastal Development Permit (“CDP”) review and approval. (See, e.g., Pub. Resources Code, § 30106 [defining “development” in the Coastal Act].) Any amendment to UP1697 and any CDP review would, presumably, be discretionary in nature and therefore would require review in a public hearing with administrative appeals, along with appropriate analysis or exemption from the California Environmental Quality Act. (See, e.g., City of Newport Beach Municipal Code, § 20.52.020 [describing discretionary character of use permits].) While we are sensitive to the community benefits that a vibrant range of sporting opportunities brings to the City, we also are interested in ensuring that any such proposals proceed through the required public review process. We look forward to participating in that process as it proceeds. If you have any question concerning this letter, please do not hesitate to call us. Very truly yours, Michael W. Shonafelt cc: James Campbell, Deputy Director, Community Development (jcampbell@newportbeachca.gov) Aaron C. Harp, Esq., City Attorney (aharp@newportbeachca.gov) Eric Davidson, Manager, Palisades Tennis Club (edavidson@breakerstennis.com) Annie Painting, General Manager, Hyatt Corporation (annie.painting@hyatt.com) George Kallins (Gkallins@mac.com) Michael McClellan, Esq., Newmeyer & Dillion LLP (Michael.McClellan@ndlf.com) 36 Attachment No. PC 4 Correspondence from Property Owner Regarding Parking 37 INTENTIONALLY BLANK PAGE38 From: Murillo, Jaime Sent: August 01, 2023 7:55 AM To: Lee, David Subject: FW: Hyatt Regency Newport Beach - Tennis Court Sublease From: Gary Stougaard <gstougaard@chelseahp.com> Sent: August 01, 2023 2:14 AM To: Murillo, Jaime <JMurillo@newportbeachca.gov> Cc: Matsler, Sean <SMatsler@coxcastle.com> Subject: Hyatt Regency Newport Beach - Tennis Court Sublease [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Mr. Murillo – My name is Gary Stougaard and I am the Owners Representative for WCP Newport LLC, the owner of the Hyatt Regency Newport Beach Hotel. As you are aware, we are currently finalizing a sublease agreement with Champion Management Group (“CMG”) for the use of the six tennis courts located on the land which WCP Newport LLC leases from JGKallins Investments Newport, LLC. CMG plans to covert these courts for future Pickleball use, but have applied to the City of Newport Beach for an interim use agreement for their continued use as tennis courts. While we finalize the terms of this agreement and related parking facilities with CMG, the purpose of this correspondence is to confirm that we will also provide interim access to on-site parking to Palisades Tennis Club members while negotiations proceed on a new parking lease with the Palisades Tennis Club. Please contact me directly if you have any questions or I can provide any additional information relative to our agreement with CMG and the status of our negotiations with Palisades for future parking for Club members. I can be reached anytime at (619) 709-4461. Thank you, Gary Stougaard Authorized Representative WRC Newport LLC. Gary A. Stougaard 39 INTENTIONALLY BLANK PAGE40 Attachment No. PC 5 Parcel Map for Subdivision No. 413 41 INTENTIONALLY BLANK PAGE42 43 INTENTIONALLY BLANK PAGE44 Attachment No. PC 6 Use Permit No. UP1697 45 INTENTIONALLY BLANK PAGE46 47 48 49 50 51 52 53 54 55 56 57 INTENTIONALLY BLANK PAGE58 Attachment No. PC 7 Environmental Impact Report No. 73-038 59 INTENTIONALLY BLANK PAGE60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 Attachment No. PC 8 Project Plans 97 INTENTIONALLY BLANK PAGE98 10'-1/2"Planted Area Planted Area Planted Area 59'-11 1/2"60'-1/2"59'-11 3/4"130'-1"Drive Aisle 120'-0" Tennis Parking (35 Angled Stalls)Hyatt Regency DrivePlanted Area Hyatt ValetParking Area Planted AreaHyatt ValetParking AreaHyatt Regency Drive Planted AreaSidewalkSidewalk TennisParking(3 Stalls)Golf Parking (7 Stalls) Tennis Parking (4 Stalls)NExhibit A Parking Tennis Parking Hyatt Valet Parking Golf Parking ValetONLY Entrance Drive Aisle N.T.S.Hyatt Valet Parking28'-3"Tennis Parking (37 Stalls) Drive Aisle Drive Aisle Hyatt Valet Parking AreaHyatt Valet Parking(Tennis parking area to serve Champion Tennis Club and, subject to negotiation of a lease, Palisades Tennis Club) 99 INTENTIONALLY BLANK PAGE100 Attachment No. PC 9 Public Correspondence 101 INTENTIONALLY BLANK PAGE102 From: pmchrist@earthlink.net Sent: August 17, 2023 5:20 PM To: Lee, David Subject: The Pickleball Club's move to the Palisades Tennis Club Importance: High [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Hello David, As a member of the Granville ?Community Association’s Board of Directors, I have been asked to comment on Granville’s relationship with the Pickleball Club’s operations relative to the Pickleball Club’s proposed move to Courts 1 thru 6 at the Palisades Tennis Club. It can be noted that Granville’s experience with the Pickleball Club has been less than satisfactory: The following examples describe this conclusion: 1) The City of Newport Beach Recreation Department Permit #SERSS2023-0091 issued on 06/23/2023 describes on Page 2 the necessity to notify Community Associations/Businesses of a pending Pickleball tournament thirty (30) days in advance. I can assure you that during several years that the Pickleball Club has conducted tournaments, no advance notice was ever given. 2) Noise Complaints – I personally have made innumerable calls to the City’s Code Enforcement and Police Depts. when the tournament directors cause excessive noise to occur. A typical example has been the amplified sound directing players to proceed to one court or another as play progressed. Another example has been the frequent playing of a loud monotowns drum beat as the day progresses, I was never sure of the purpose of the drum beat but it was consistently Annoying to Granville residents. 3) On site contact- With rare exception, this requirement has largely been ignored. On the few occasions where someone at the Pickleball Club answered my phone call, I was assured that I would receive a return call from a Club Manager and this never happened. Although additional comments can be noted, I suggest that the above information provides sufficient background for the City’s evaluation of the Pickleball Club’s application for courts 1 thru6 at the Palisades Tennis Club. 103 Thank you, David, for taking the time to read my evaluation and please forward this to the appropriate people who may be interested in my comments. Best regards, Paul Christ 940-212-8426 104 To: Newport Beach Planning Commission From: Ken Montgomery (kentennis@cox.net) 949-231-0846 cell Subject: Conversion of Palisades Tennis Club into 2 Private Tennis Clubs - Appeal of Changes to Use Permit 1697 Date: October 3, 2023 I am asking the Newport Beach Planning Commission to reject the proposal to convert the 16 court Palisades Tennis Club into 2 private clubs, a 6 court club and a 10 court club. The staff report states that no physical improvements would be made as part of this proposal. The report also has the 2 clubs sharing the parking lot that has been used by Palisades Tennis club exclusively for the last 50 years. These 2 “conditfons” will lead to: 1) A private tennis club that has no practfcal access to get to the 6 courts for members or guests 2) Noncompliance with the ADA 3) A parking situatfon that won’t work for either Palisades or Champions. By way of my background, I am the retfred Director of Public Works/City Engineer for the City of Laguna Niguel (18 years). I served in the same positfons for the Citfes of Redondo Beach and Norwalk. For 40 years I reviewed private development plans and made access recommendatfons to the Planning Commissions. I retfrement, I am the Chair of the Irvine Transportatfon Commission. Our commission reviews traffic access to proposed private developments and makes recommendatfons to the Planning Commission. I am also a Tennis Umpire. I have umpired tennis events at dozens of tennis clubs all over Southern California over the last 2 decades. Splitting Palisades TC into 2 clubs sounds simple enough, but it is anything but simple. Here are the 3 problems that I see that should be enough reason to not approve the conversion of Palisades TC into 2 Private Tennis Clubs. ACCESS: Courts 1 through 6 were accessed through the Palisades Club House and then through the outdoor patfo, just like the other 10 court are accessed. Under the 2 club plan with no improvements antfcipated, there is only one access point to the 6 Courts. That is a pedestrian gate to Court 3 leading directly to the back of Court 3. This gate is in the landscaped area adjacent to the parking lot. You would have to eliminate at least one parking space to create an entrance. If this is the only entrance to the 6 court club, you would not be able to play tennis on that court with people constantly walking back and forth the back of Court 3 to get to the central corridor so they could access the other 5 courts. Plus, having the main entrance to a busy facility positfoned between parking cars is really poor planning, certainly not up to Newport Beach standards. The only realistfc access point for the Champions Club would be to create a large attractfve entry by eliminatfng Court 4 and having people enter Court 4 near the golf course starters shack. Eliminatfng Court 4 would provide enough room to build a check-in facility, restrooms, a players viewing and waitfng area, a rebound wall for warming up, bicycle parking - things that a normal private tennis club would offer its members, but you are down to 5 courts. By splitting Palisades into 2 clubs, you will lose a court. 105 ADA ACCESS. The conversion of Court 4 into an entry plaza would give them wheelchair access to just Court 3. I doubt if this would comply with ADA requirements which would be triggered by the creatfon of a new tennis club. Creatfng ADA access all the way down to Court 1 would require a considerable amount of constructfon as the 2 long raised viewing platiorms would have to be removed and replaced by a walkway. Palisades TC has excellent wheelchair access for playing, viewing and dining and to the locker rooms. PARKING: The parking plan for this 2 club proposal keeps changing. The latest plan has the 2 clubs sharing the 72 spaces used by Palisades now. The original 1973 parking plan required 78 parking spaces for the 16 court club. That number was developed based on some incorrect tennis club parking assumptfons. Thus the thinking is that if 78 parking spaces are provided for 16 courts, that should be adequate even if there are 2 separate clubs using those 78 spaces. The problem with that thinking is that the 78 parking spaces (later restriped to 72) was not enough for the 16 court Palisades TC on all Saturdays, most Sundays and whenever there was a special event, like a club party. To manage the overflow parking, Palisades used “managed parking” on the busy days. The club was able to park over 100 cars using managed parking. This required a staff member to be out in the parking lot moving cars around all day and often into the evening. The parking attendant knew the driver was a Palisades member as their car had a Palisades parking permit on the windshield. If 2 clubs are sharing a “managed parking” situatfon, it’s not likely to work unless the 2 clubs have a close working relatfonship, which is not likely. FINAL THOUGHTS: Palisades TC is the elite tennis club in Orange County. The club hosts 2 prestfgious tournaments every year that brings in many visitors and many hotel nights and restaurant sales. The new 5 Court Club wouldn’t even be as good as many Homeowners Tennis Clubs in the area. Why divide a first class tennis club into a good but small Palisades and a tennis club too small to justffy the staff needed to manage it. And having to walk all the way to the Hotel restrooms is just not workable. That would put a 10 minute delay to your match. I urge you to deny the request to create 2 tennis clubs at this locatfon. 106 From: Jurjis, Seimone Sent: October 09, 2023 8:58 AM To: Lee, David Subject: FW: PROTECT PALISADES NOW Follow Up Flag: Follow up Flag Status: Flagged Seimone Jurjis Assistant City Manager / Director of Community Development Community Development Department Office: 949-644-3282 100 Civic Center Drive Newport Beach, CA 92660 From: Michael Stuhley <mstuhley@formtran.com> Sent: October 07, 2023 4:18 PM To: planningcommissioners@newportbeachca.gov Cc: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: PROTECT PALISADES NOW [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Mayor Blom, City Council Members and Planning Commissioners, I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with the Hyatt for 6 tennis courts with the pickleball operator at the Newport Beach Country Club. We are not opposed to pickleball. We have learned from your October 22, 2022 city council meeting that one of TTC’s landlords testified that he should be replaced for financial and operational reasons. I am opposed to a pickleball operation at Palisades with no city permits. Please require any pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and other operational details. We don’t want a line of porta-potties at our Club or cars parking on Jamboree Road. Our members and ownership have invested in Palisades to make it a top-rated facility. Mike Stuhley mstuhley@formtran.com Cell: 714-402-5526 204 Main Street #571 107 From: Jurjis, Seimone Sent: October 09, 2023 8:58 AM To: Lee, David Subject: FW: PROTECT PALISADES NOW Follow Up Flag: Follow up Flag Status: Flagged Seimone Jurjis Assistant City Manager / Director of Community Development Community Development Department Office: 949-644-3282 100 Civic Center Drive Newport Beach, CA 92660 -----Original Message----- From: C. McCaa LaRoche <cissymccaa@gmail.com> Sent: October 08, 2023 10:06 AM To: planningcommissioners@newportbeachca.gov Cc: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: PROTECT PALISADES NOW [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Mayor Blom, City Council Members and Planning Commissioners, I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with the Hyatt for 6 tennis courts with the pickleball operator at the Newport Beach Country Club. We are not opposed to pickleball. We have learned from your October 22, 2022 city council meeting that one of TTC’s landlords testified that he should be replaced for financial and operational reasons. I am opposed to a pickleball operation at Palisades with no city permits. Please require any pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and other operational details. We don’t want a line of porta-potties at our Club or cars parking on Jamboree Road. Our members and ownership have invested in Palisades to make it a top-rated facility. 108 [[Cissy LaRoche ]] Sent from my iPhone 109 From: Jurjis, Seimone Sent: October 09, 2023 8:58 AM To: Lee, David Subject: FW: PROTECT PALISADES NOW Follow Up Flag: Follow up Flag Status: Flagged Seimone Jurjis Assistant City Manager / Director of Community Development Community Development Department Office: 949-644-3282 100 Civic Center Drive Newport Beach, CA 92660 From: Bob and Pat <rjonesirv@aol.com> Sent: October 08, 2023 3:19 PM To: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: PROTECT PALISADES NOW [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Mayor Blom and City Council Members, I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with the Hyatt for 6 tennis courts with the pickleball operator at the Newport Beach Country Club. We are not opposed to pickleball. We have learned from your October 22, 2022 city council meeting that one of TTC%2��s landlords testified that he should be replaced for financial and operational reasons. I am opposed to a pickleball operation at Palisades with no city permits. Please require any pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and other operational details. We don%2��t want a line of porta-potties at our Club or cars parking on Jamboree Road. Our members and ownership have invested in Palisades to make it a top-rated facility. Bob Jones Sent from AOL on Android 110 From: Jurjis, Seimone Sent: October 09, 2023 8:57 AM To: Lee, David Subject: FW: PROTECT PALISADES NOW Follow Up Flag: Follow up Flag Status: Flagged Seimone Jurjis Assistant City Manager / Director of Community Development Community Development Department Office: 949-644-3282 100 Civic Center Drive Newport Beach, CA 92660 -----Original Message----- From: Michael Peltz <msap224@gmail.com> Sent: October 07, 2023 2:56 PM To: planningcommissioners@newportbeachca.gov Cc: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: PROTECT PALISADES NOW [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Mayor Blom, City Council Members and Planning Commissioners, I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with the Hyatt for 6 tennis courts with the pickleball operator at the Newport Beach Country Club. We are not opposed to pickleball. We have learned from your October 22, 2022 city council meeting that one of TTC’s landlords testified that he should be replaced for financial and operational reasons. I am opposed to a pickleball operation at Palisades with no city permits. Please require any pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and other operational details. We don’t want a line of porta-potties at our Club or cars parking on Jamboree Road. Our members and ownership have invested in Palisades to make it a top-rated facility. 111 Michael Peltz Palisades Tennis Club member Sent from my iPhone 112 From: Jurjis, Seimone Sent: October 09, 2023 8:57 AM To: Lee, David Subject: FW: PROTECT PALISADES NOW Follow Up Flag: Follow up Flag Status: Flagged Seimone Jurjis Assistant City Manager / Director of Community Development Community Development Department Office: 949-644-3282 100 Civic Center Drive Newport Beach, CA 92660 -----Original Message----- From: Debra last <bubbleslast@yahoo.com> Sent: October 07, 2023 3:37 PM To: planningcommissioners@newportbeachca.gov Cc: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: PROTECT PALISADES NOW [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Mayor Blom, City Council Members and Planning Commissioners, I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with the Hyatt for 6 tennis courts with the pickleball operator at the Newport Beach Country Club. We are not opposed to pickleball. We have learned from your October 22, 2022 city council meeting that one of TTC’s landlords testified that he should be replaced for financial and operational reasons. I am opposed to a pickleball operation at Palisades with no city permits. Please require any pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and other operational details. We don’t want a line of porta-potties at our Club or cars parking on Jamboree Road. Our members and ownership have invested in Palisades to make it a top-rated facility. 113 [[FIRSTNAMELASTNAME OR RESIDENT]] Sent from my iPhone 114 From: Jurjis, Seimone Sent: October 09, 2023 8:57 AM To: Lee, David Subject: FW: PROTECT PALISADES NOW Follow Up Flag: Follow up Flag Status: Flagged Seimone Jurjis Assistant City Manager / Director of Community Development Community Development Department Office: 949-644-3282 100 Civic Center Drive Newport Beach, CA 92660 -----Original Message----- From: Kim Vieira <kimtpcs@me.com> Sent: October 07, 2023 3:53 PM To: planningcommissioners@newportbeachca.gov Cc: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: PROTECT PALISADES NOW [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Mayor Blom, City Council Members and Planning Commissioners, I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with the Hyatt for 6 tennis courts with the pickleball operator at the Newport Beach Country Club. We are not opposed to pickleball. We have learned from your October 22, 2022 city council meeting that one of TTC’s landlords testified that he should be replaced for financial and operational reasons. I am opposed to a pickleball operation at Palisades with no city permits. Please require any pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and other operational details. We don’t want a line of porta-potties at our Club or cars parking on Jamboree Road. Our members and ownership have invested in Palisades to make it a top-rated facility. Hyatt pickle ball takeover a travesty. 115 Kim Vieira Member of John Wayne and Palisades tennis club. Born and raised in N B 911 W Bay N B []] Sent from my iPad 116 From: Jurjis, Seimone Sent: October 09, 2023 8:58 AM To: Lee, David Subject: FW: PROTECT PALISADES NOW Follow Up Flag: Follow up Flag Status: Flagged Seimone Jurjis Assistant City Manager / Director of Community Development Community Development Department Office: 949-644-3282 100 Civic Center Drive Newport Beach, CA 92660 -----Original Message----- From: Hellene Thurston <hellene.thurston@sbcglobal.net> Sent: October 07, 2023 4:11 PM To: planningcommissioners@newportbeachca.gov Cc: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: PROTECT PALISADES NOW [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Mayor Blom, City Council Members and Planning Commissioners, I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with the Hyatt for 6 tennis courts with the pickleball operator at the Newport Beach Country Club. We are not opposed to pickleball. We have learned from your October 22, 2022 city council meeting that one of TTC’s landlords testified that he should be replaced for financial and operational reasons. I am opposed to a pickleball operation at Palisades with no city permits. Please require any pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and other operational details. We don’t want a line of porta-potties at our Club or cars parking on Jamboree Road. Our members and ownership have invested in Palisades to make it a top-rated facility. Hellene Thurston 117 118 119 120 121 INTENTIONALLY BLANK PAGE122 Attachment No. PC 10 Applicant Response to Correspondence 123 INTENTIONALLY BLANK PAGE124 David, Thank you for providing me with the letter from Mr. Montgomery. I respect his concerns about the changes to the Palisades Tennis Club and have responded to them below: 1. Access – Mr. Montgomery correctly notes that the proposed access to Champion Management Group’s (CMG) six tennis courts is through an existing pedestrian gate to Court 3, which is the southeastern most court. Mr. Montgomery refers to this pedestrian gate as “poor planning” and “not up to Newport Beach standards.” This gate was originally installed by Palisades’ former owner many years ago in order to facility ADA access to the tennis courts. It was a good idea then, and it’s a good idea now. If Mr. Montgomery believes alternative access to be more appropriate, I would ask for his help facilitating CMG access through the Palisades’ tennis club property, which is how Courts 1-6 operated when they were under Palisades control. To date, Palisades has not been interested in continuing that arrangement. However, it seems that solution would address many of Mr. Montgomery’s access concerns. Mr. Montgomery’s other technical questions regarding ADA access to CMG’s courts will be addressed through the City’s plan check process as necessary given that the pending proposal is simply to operate a tennis use on existing tennis courts. CMG will fully comply with all applicable ADA requirements and has the cooperation of the property owner, WRC Newport LLC, in the event additional or alternative ADA access. 2. Parking – Mr. Montgomery’s comments about Palisades existing parking arrangement raise more questions about Palisades’ operation than CMG’s operation. Mr. Montgomery states that “Palisades used ‘managed parking’ on the busy days. The club was able to park over 100 cars using managed parking. This required a staff member to be out in the parking lot moving cars around all day and often into the evening.” As you know, in Newport Beach valet parking operations typically require a Parking Management Plan (NBMC Sections 20.40.110, 21.40.110), which Palisades has not secured. Conspicuously absent from Mr. Montgomery’s letter is the single most important fact about parking: Palisades neither owns nor holds any lease to serve its own parking needs. All of Palisades required parking is on leased land from WRC Newport LLC. Use Permit 1697, which authorized Palisades’ use in 1973, contemplated that 78 parking spaces to serve Palisades would be located on WRC land adjacent to CMG’s Courts 1-6 (highlighted in yellow below) while 200 overflow parking spaces for tournaments would be provided in WRC’s parking lot adjacent to Back Bay Drive. As of Monday October 9, 2023, WRC terminated Palisades’ right to use the 78 parking spaces. This creates a Use Permit compliance issue for Palisades because the 200 spaces that Palisades still has access to were not contemplated in the Use Permit to serve Palisades’ daily needs. As with the letters received by the City from other Palisades members, I gather that Mr. Montgomery’s chief concern is not CMG so much as it is the reduction in size of the Palisades 125 Tennis Club. It is unfortunate that Mr. Montgomery has directed his attention to CMG rather than Palisades’ management, which had the first opportunity to lease CMG’s six courts. Regards, Sean Sean Matsler direct: 949.260.4652 | mobile: 714.330.0797 smatsler@coxcastle.com | vcard | bio | website 126 5698.101 / 15388829.1 Newmeyer & Dillion LLP 895 Dove Street Second Floor Newport Beach, CA 92660 (949) 854-7000 Las Vegas | Newport Beach | Walnut Creek newmeyerdillion.com Michael W. Shonafelt Michael.Shonafelt@ndlf.com October 17, 2023 VIA E-MAIL Curtis Ellmore, Chair, and Members City of Newport Beach Planning Commission City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 planningcommission@newportbeachca.gov Re: The Champions Club Staff Approval Appeal (PA2023-0138) Dear Chair Ellmore and Members of the Planning Commission: This office continues to represent Thomas Duddy, a member of the Palisades Tennis Club (“PTC” or “Palisades”) and the appellant in the above-referenced appeal of the Community Development Director’s August 3, 2023, approval of Champion Management Group Inc.’s (“CMG”) request to separately operate six of the 16 existing tennis courts once operated by Palisades Tennis Club (“Director’s Approval”). This letter elaborates on some of the bases for the Appeal. 1. Introduction and Background. As noted in the October 19, 2023, Planning Commission Staff Report (“Staff Report”), CMG’s pending request for separate operation of the six lower tennis courts arises in the context of a 1973 planning approval for a single operator to manage an integrated tennis club with 16 tennis courts (Use Permit UP1697, defined herein as “UP1697”).1 This month, it will be 50 years since the City of Newport Beach Planning Commission approved UP1697 on October 4, 1973. Operation of a single tennis facility under that permit has been a stable community feature for the duration of those 50 years. The Director’s Approval raises more issues than might appear on first review. It fractures the formerly integrated tennis club, seals off amenities, such as parking, restrooms and clubhouse features from each facility, potentially gives rise to interference with reciprocal easement rights and disrupts the letter and spirit of UP1697, 1 Since 1992, the 16 courts have been located on two adjoining parcels, with the nine PTC tennis courts on the northern parcel (Parcel 1) and the six CMG tennis courts on the southern parcel (Parcel 2). Planning Commission - October 19, 2023 Item No. 2a - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) Curtis Ellmore, Chair, and Members City of Newport Beach Planning Commission Ocotober 17, 2023 Page 2 5698.101 / 15388829.1 Las Vegas | Newport Beach | Walnut Creek newmeyerdillion.com which envisioned a single, comprehensive tennis facility under unified management. Worse, and as noted in our initial appeal filing, the Director’s Approval proceeds in the face of a manifest intention to convert the CMG courts into a pickleball facility. The plan to convert the six CMG courts to a pickleball facility is not a matter of mere speculation; it is manifest in the record before the Planning Commission. (See August 1, 2023, email from Gary Stougaard to Jaime Murillo, Attachment Four to September 21, 2023, Staff Report, “Correspondence from Property Owner”). Moreover, we understand that Sean Bolletieri-Abdali, manager of The Tennis Club at Newport Beach (“TTC”), is backing the pickleball conversion scheme at PTC and will be the operator of the converted facility at issue here. It is a matter of record that, in or around 2019, Mr. Bolletieri-Abdali spearheaded the conversion of seven or more TTC tennis courts into 31 pickleball courts without obtaining necessary permits. Mr. Bollettieri-Abdali added over 1,000 pickleball memberships and conducted as many as 19 pickleball tournaments at TTC annually.2 It is therefore obvious that the Director’s Approval is the first step in a sequenced strategy to convert six of PTC’s prior tennis courts into as many as 24 pickleball courts. 2. Notwithstanding the Assurances of the Staff Report, the Director’s Approval Did Not Comply with CEQA because It Did Not Consider the “Whole of the Project.” By reviewing the pickleball conversion scheme in isolated “bites,” starting with the Director’s Approval, the City is evading environmental review of the actual project -- a pickleball facility -- and therefore is in violation of the statutory mandate of the California Environmental Quality Act (“CEQA”) to review the “whole of the action.” (Public Resources Code, § 21080; Cal. Code Regs., tit. 14, § 15378.) Put simply, such a sequenced, “piecemeal” approach masks the actual impacts that ultimately will result because it proceeds through serial review. As one court observed, “CEQA mandates that environmental considerations do not become submerged by chopping a large project into many little ones, each with a minimal potential impact on the environment, which cumulatively may have disastrous consequences.” (Bozung v. Local Agency Formation Commission (1975) 13 Cal. 263, 283; City of Santee v. County of San Diego (1989) 214 Cal.App.3d 1438, 1452.) For that reason, CEQA mandates review of … the whole of an action which has a potential for resulting in a physical change in the environment, directly or ultimately, and includes the activity which is being approved and which may be subject to several discretionary approvals by governmental agencies. 2 See https://inpickleball.com/bobby-riggs-racket-and-paddle-club/ Planning Commission - October 19, 2023 Item No. 2a - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) Curtis Ellmore, Chair, and Members City of Newport Beach Planning Commission Ocotober 17, 2023 Page 3 5698.101 / 15388829.1 Las Vegas | Newport Beach | Walnut Creek newmeyerdillion.com (McQueen v. Board of Directors (1988) 202 Cal.App.3d 1136, 1143.) While Staff have opined that this approval does not expressly approve pickleball, and that any such proposal would be subject to later discretionary review, that does not sidestep the prohibition on piecemeal review. A narrow, sequenced review of a project results in the “fallacy of division,” that is, overlooking the overall impact by “separately focusing on isolated parts of the whole.” (Id., at p. 1144.) In this case, it is a matter of record that a pickleball conversion multiplies the impacts of tennis -- at a minimum -- by a factor of four. The impacts are well illustrated by the transformation of TTC from its historical, genteel tennis club use to the significantly more impactful pickleball facility that it is today. Moreover, because this project arises in the Coastal Zone, its impacts require even higher scrutiny and discretionary oversight through the issuance of a Coastal Development Permit (“CDP”). For those reasons, the invocation of a Class One CEQA exemption is misplaced here. While “mere change of ownership,” in and of itself, may be adequate ground for invoking a CEQA exemption, is not a sufficient ground for invoking a CEQA exemption, if substantial evidence reveals that the ownership (or management) change is viewed “too narrowly” and does not consider greater impacts that the change will bring down the road. (See, e.g., Los Angeles Dept. of Water & Power v. County of Inyo, 67 Cal.App.5th 1018 (2021).) 3. The Fracturing of the Management of the Tennis Courts Already Has Led to a Refusal to Grant Parking Access to PTC Members. As noted in the Staff Report UP1697 “requires 78 parking spaces for all tennis operations.” (Staff Report, at p. 5, emphasis added.) Unfortunately, a dispute over a significant rent increase for parking has now led to PTC members being physically barred from access to the only parking lot for both of the clubs, which is located on “Parcel 2” -- the CMG parcel featuring the six lower tennis courts. Since Monday, October 9, 2023, PTC members now are forced either to pay for use of the Hotel’s lower lot or to pay for valet parking services. The rent amount now being demanded represents a 250 percent increase from the previously offered rate. That is in addition to a demand that PTC forfeit over $100,000 in lights, nets and other equipment owned by PTC as a condition for even discussing parking options. UP1697 runs with both the PTC parcel (Parcel 1) and the CMG parcel (Parcel 2). It is inextricably tied to both lots. For that very reason UP1697 envisioned a single operation to fulfill its conditions and utilize its benefits. It cannot be allowed to be ruptured in such a manner that undermines the continued viability of the entitlement. The recent physical “ouster” of PTC members from the parking lot is in direct conflict with the letter and spirit of UP1697, which allows operation of not just the nine PTC courts on Parcel 1, but also the lower six CMG courts on Parcel 2. It also collides with Planning Commission - October 19, 2023 Item No. 2a - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) Curtis Ellmore, Chair, and Members City of Newport Beach Planning Commission Ocotober 17, 2023 Page 4 5698.101 / 15388829.1 Las Vegas | Newport Beach | Walnut Creek newmeyerdillion.com superior easement rights that Parcel 1 enjoys over Parcel 2, allowing “ingress on, over or across” Parcel 2.3 We believe those easement rights are in furtherance of ensuring continued compliance with UP1697 and its express requirement to allow continued availability of 78 spaces on the Hyatt (Champion) parcel.4 By physically blocking access to those 78 spaces, Hyatt Regency, the sublessor of Parcel 2, has upended PTC’s easement rights, prevented fulfillment of UP1697’s conditions of approval and precluded PTC from being able to enjoy the property rights to which it is entitled under UP1697. The recent actions to bar access to parking for PTC’s members also directly collide with express findings and conditions tied to CMG’s requested staff approval. Among other things, those findings mandate that “parking would still be provided to both Parcels 1 and Parcel 2.” (See Staff Approval, Resolution No. PC2023-034 (Sept. 21, 2023), emphasis added.) This requirement is mirrored in the Planning Commission’s draft findings. (See, Planning Commission Resolution No. PC2023-034, Finding B.2, p 4.) It therefore appears that Hyatt’s actions may render it impossible to fulfill conditions of approval and findings of fact for CMG’s own pending staff approval request. It is important to note that, despite its own easement rights over Parcel 2, and without waiving those rights, PTC is on record for continuing to make reasonable payments for the parking spaces at issue. Even after the expiration of the Hyatt sublease for the six courts, PTC continued to pay -- and Hyatt continued to accept -- rent payments for continued access to the 72 parking spaces. That said, this parking issue is not merely a private lease dispute; it goes to the heart of (1) whether CMG can comply with a vital condition of approval to allow PTC continuing access to parking; and (2) whether UP1697 can continue to be utilized in a viable manner on either parcel. 4. Conclusion. For the foregoing reasons, the Planning Commission should grant the Appeal, reverse the Director’s Approval and direct Staff to require submittal of discretionary permit applications, including a coastal development permit application, for the “project as a whole.” Otherwise, the public will not have the benefit of the full disclosure required by CEQA and will be precluded from understanding the full import of the project that is 3 These easements were conveyed in conjunction with the original grant deed creating both Parcel 1 and Parcel 2 in 1993. (See, e.g., Corporation Grant Deed from the Irvine Company to Russell E. Fluter (Dec. 10, 1993) (“Fluter Grant Deed”).) PTC reserves the right to contend that the easement rights featured in the Fluter Grant Deed extend to an ongoing right to use parking spaces. 4 As the Staff Report notes, the current number of spaces on Parcel 2 is 72 due to a CMG’s modification of the site plan for Parcel 2. Staff concludes that the provision of 72 spaces is in substantial conformance wth UP1697. (Staff Report, p. 5.) We nevertheless reference the original number of parking spaces envisioned by UP1697. Planning Commission - October 19, 2023 Item No. 2a - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) Curtis Ellmore, Chair, and Members City of Newport Beach Planning Commission Ocotober 17, 2023 Page 5 5698.101 / 15388829.1 Las Vegas | Newport Beach | Walnut Creek newmeyerdillion.com actually planned for this property. If the Planning Commission is inclined to deny the Appeal, PTC respectfully requests inclusion of the following conditions of approval: (1) Parking: (a) A minimum of 72 parking spaces located within Parcel 2 shall continue to be made available for both Parcel 1 and Parcel 2 in accordance with the requirements of UP1697 and the historic status quo. (b) In the event an allocation of such spaces is necessary, parking spaces can be allocated proportionally by number of tennis courts on each parcel. Parcel 1 shall be allowed to utilize a minimum of 36 spaces; Parcel 2 shall be allowed a minimum of 24 spaces. (c) Each parcel shall accommodate its own ADA parking requirements. (d) Reasonable parking rental rates shall be encouraged to ensure the continued viability of UP1697 (e.g., shall be set at 2019 levels plus 20 percent with an annual cost of living adjustment). 2. Access and Utilities: (a) CMG shall be responsible for separate ADA approved access. (b) Each parcel shall be responsible for its own utilities. 3. Tournaments: UP1697 identifies a limit of two annual tournaments. PTC shall continue to be sole producer of those two tournaments. We will be on hand at the Planning Commission hearing to answer any questions. Very truly yours, Michael W. Shonafelt MWS cc: James Campbell, Deputy Community Development Director (jcampbell@newportbeachca.gov) Aaron C. Harp, Esq., City Attorney (aharp@newportbeachca.gov) David Lee, Assistant Planner (dlee@newportbeachca.gov) Planning Commission - October 19, 2023 Item No. 2a - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) Planning Commission - October 19, 2023 Item No. 2a - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) Planning Commission - October 19, 2023 Item No. 2a - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) 1 Rodriguez, Clarivel Subject:FW: PROTECT PALISADES NOW From: Greg Little <gtlittle@gmail.com>   Sent: October 15, 2023 7:42 AM  To: planningcommissioners@newportbeachca.gov  Cc: Dept ‐ City Council <CityCouncil@newportbeachca.gov>  Subject: PROTECT PALISADES NOW  [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe.  Dear Mayor Blom, City Council Members and Planning Commissioners,  I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with a pickleball operator from  another club, removing a big portion of our beloved courts from our tennis community with the intent to convert them  into 24 Pickleball courts without a permit (which i understand was also done at the other club).  While losing the courts  may be a fact of life, I am opposed to a pickleball operation next door with no city permits. The prospect of operating 24  courts suggests upwards of 100+ new people in a small area that is not set up for that purpose and would be incredibly  disruptive to our remaining tennis facility and an already congested part of Jamboree Road.   Please require any pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and  other operational details. We don’t want a line of porta‐potties at our Club or cars parking on Jamboree Road. Our  members and ownership have invested in Palisades to make it a top‐rated tennis club and a thriving community with  Newport Beach.   Greg Little  Get Outlook for iOS  Planning Commission - October 19, 2023 Item No. 2a - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) 1 Rodriguez, Clarivel Subject:FW: PROTECT PALISADES NOW From: Rudy Sanchez <rudy@arkaytextiles.com>   Sent: October 18, 2023 6:48 AM  To: planningcommissioners@newportbeachca.gov  Cc: Dept ‐ City Council <CityCouncil@newportbeachca.gov>  Subject: PROTECT PALISADES NOW  [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe.  Dear Mayor Blom, City Council Members and Planning Commissioners,  I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with the Hyatt for 6 tennis courts  with the pickleball operator at the Newport Beach Country Club. We are not opposed to pickleball. We have learned  from your October 22, 2022 city council meeting that one of TTC’s landlords testified that he should be replaced for  financial and operational reasons. I am opposed to a pickleball operation at Palisades with no city permits. Please  require any pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and other  operational details. We don’t want a line of porta‐potties at our Club or cars parking on Jamboree Road. Our members  and ownership have invested in Palisades to make it a top‐rated facility.  [[FIRSTNAMELASTNAME OR RESIDENT]]  Thank you,  Rudy Sanchez   Arkay Textiles Inc. Supplying Fabrics for Fine Hotels and Resorts Since 1982  418 E. Commonwealth Ave  Suite 10  Fullerton, Ca 92832  Office‐562‐9462232 ext.1  Cell‐562‐5369037  Planning Commission - October 19, 2023 Item No. 2b - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) 1 Rodriguez, Clarivel Subject:FW: PROTECT PALISADES NOW   ‐‐‐‐‐Original Message‐‐‐‐‐  From: Paƫ Di Tullio <paƫditullio1@gmail.com>   Sent: October 18, 2023 6:50 AM  To: planningcommissioners@newportbeachca.gov  Cc: Dept ‐ City Council <CityCouncil@newportbeachca.gov>  Subject: PROTECT PALISADES NOW    [EXTERNAL EMAIL] DO NOT CLICK links or aƩachments unless you recognize the sender and know the content is safe.    Dear Mayor Blom, City Council Members and Planning Commissioners,    I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with the HyaƩ for 6 tennis courts with  the pickleball operator at the Newport Beach Country Club. We are not opposed to pickleball. We have learned from  your October 22, 2022 city council meeƟng that one of TTC’s landlords tesƟfied that he should be replaced for financial  and operaƟonal reasons. I am opposed to a pickleball operaƟon at Palisades with no city permits. Please require any  pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and other operaƟonal  details. We don’t want a line of porta‐poƫes at our Club or cars parking on Jamboree Road. Our members and  ownership have invested in Palisades to make it a top‐rated facility.      [[FIRSTNAMELASTNAME OR RESIDENT]]      Sent from my iPhone  Planning Commission - October 19, 2023 Item No. 2b - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) 1 Rodriguez, Clarivel Subject:FW: PROTECT PALISADES NOW   ‐‐‐‐‐Original Message‐‐‐‐‐  From: jacqui rosencrans <jacquirosencrans@me.com>   Sent: October 18, 2023 7:05 AM  To: planningcommissioners@newportbeachca.gov  Cc: Dept ‐ City Council <CityCouncil@newportbeachca.gov>  Subject: PROTECT PALISADES NOW    [EXTERNAL EMAIL] DO NOT CLICK links or aƩachments unless you recognize the sender and know the content is safe.    Dear Mayor Blom, City Council Members and Planning Commissioners,    I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with the HyaƩ for 6 tennis courts with  the pickleball operator at the Newport Beach Country Club. We are not opposed to pickleball. We have learned from  your October 22, 2022 city council meeƟng that one of TTC’s landlords tesƟfied that he should be replaced for financial  and operaƟonal reasons. I am opposed to a pickleball operaƟon at Palisades with no city permits. Please require any  pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and other operaƟonal  details. We don’t want a line of porta‐poƫes at our Club or cars parking on Jamboree Road. Our members and  ownership have invested in Palisades to make it a top‐rated facility.    Jacqui Rosencrans      Sent from my iPhone  Planning Commission - October 19, 2023 Item No. 2b - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) 1 Subject:FW: PROTECT PALISADES NOW From: Charles Foss <charlesnfoss@gmail.com>   Sent: October 18, 2023 8:35 AM  To: planningcommissioners@newportbeachca.gov  Cc: Dept ‐ City Council <CityCouncil@newportbeachca.gov>  Subject: PROTECT PALISADES NOW  [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe.  Dear Mayor Blom, City Council Members and Planning Commissioners,  I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with the Hyatt for 6 tennis courts  with the pickleball operator at the Newport Beach Country Club. We are not opposed to pickleball. We have learned  from your October 22, 2022 city council meeting that one of TTC’s landlords testified that he should be replaced for  financial and operational reasons. I am opposed to a pickleball operation at Palisades with no city permits. Please  require any pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and other  operational details. We don’t want a line of porta‐potties at our Club or cars parking on Jamboree Road. Our members  and ownership have invested in Palisades to make it a top‐rated facility.  Sincerely,   Charles N. Foss  Newport Beach Resident   Planning Commission - October 19, 2023 Item No. 2b - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) 1 Subject:FW: PROTECT PALISADES NOW ‐‐‐‐‐Original Message‐‐‐‐‐  From: Elizabeth Hughes <ech90210@aol.com>   Sent: October 18, 2023 10:47 AM  To: planningcommissioners@newportbeachca.gov  Cc: Dept ‐ City Council <CityCouncil@newportbeachca.gov>  Subject: PROTECT PALISADES NOW  [EXTERNAL EMAIL] DO NOT CLICK links or aƩachments unless you recognize the sender and know the content is safe.  Dear Mayor Blom, City Council Members and Planning Commissioners,  I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with the HyaƩ for 6 tennis courts with  the pickleball operator at the Newport Beach Country Club. We are not opposed to pickleball. We have learned from  your October 22, 2022 city council meeƟng that one of TTC’s landlords tesƟfied that he should be replaced for financial  and operaƟonal reasons. I am opposed to a pickleball operaƟon at Palisades with no city permits. Please require any  pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and other operaƟonal  details. We don’t want a line of porta‐poƫes at our Club or cars parking on Jamboree Road. Our members and  ownership have invested in Palisades to make it a top‐rated facility.  [[FIRSTNAMELASTNAME OR RESIDENT]]  Sent from my iPhone  Planning Commission - October 19, 2023 Item No. 2b - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) 1 Subject:FW: PROTECT PALISADES NOW ‐‐‐‐‐Original Message‐‐‐‐‐  From: Ellen Bryant <etbtennis@icloud.com>   Sent: October 18, 2023 11:33 AM  To: planningcommissioners@newportbeachca.gov  Cc: Dept ‐ City Council <CityCouncil@newportbeachca.gov>  Subject: PROTECT PALISADES NOW  [EXTERNAL EMAIL] DO NOT CLICK links or aƩachments unless you recognize the sender and know the content is safe.  Dear Mayor Blom, City Council Members and Planning Commissioners,  I am a supporter of Palisades Tennis Club. One of our landlords has entered a lease with the HyaƩ for 6 tennis courts with  the pickleball operator at the Newport Beach Country Club. We are not opposed to pickleball. We have learned from  your October 22, 2022 city council meeƟng that one of TTC’s landlords tesƟfied that he should be replaced for financial  and operaƟonal reasons. I am opposed to a pickleball operaƟon at Palisades with no city permits. Please require any  pickleball operator at Palisades to have a city approved permit that details restroom use, parking, and other operaƟonal  details. We don’t want a line of porta‐poƫes at our Club or cars parking on Jamboree Road. Our members and  ownership have invested in Palisades to make it a top‐rated facility.  [[FIRSTNAMELASTNAME OR RESIDENT]]  Planning Commission - October 19, 2023 Item No. 2b - Additional Materials Received The Champions Club Staff Approval Appeal (PA2023-0138) THE CHAMPIONS CLUB APPEAL 1107 AND 1171 JAMBOREE Staff Approval (PA2023-0138) Planning Commission Public Hearing October 19, 2023 David Lee, Senior Planner 949-644-3225, dlee@newportbeachca.gov Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138) PROJECT LOCATION 2 Lot Area: 185,637 SF General Plan: General Commercial Zoning: Commercial General Hyatt Hotel Harbor Cove Sea Island Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138) BACKGROUND •1973: PC approved Use Permit No. 1697, authorizing private tennis club (John Wayne Tennis Club) •16 lighted tennis courts •8,100 SF tennis clubhouse •78 on-site parking spaces •Single tennis operation on two separate parcels, previously owned in common by Irvine Co. •All parking spaces located on Parcel 2 and intended for tennis courts on both parcels 3 Parcel 2 Parcel 1 Parking on Parcel 2 Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138) BACKGROUND •1992: Irvine Co. sold Parcels 1 and 2 to two separate property owners •Parcel 2 is now owned in common with adjacent Hyatt Hotel •Remained under single operator (Palisades Tennis Club) until recent expiration of lease agreement with Hyatt Hotel on Parcel 2 •In August of 2023, the Champions Club entered into a lease agreement to operate a tennis club on Parcel 2 4 Palisades Palisades Champions Parcel 1 10 Courts Clubhouse Parcel 2 6 courts Parking Parcel 2 Parcel 1 Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138) STAFF APPROVAL 5 •August 3, 2023: Staff Approval issued by CDD Director authorizing Champions Club to operate tennis facility only on Parcel 2 •Substantial conformance with UP1697 •Condition to provide parking for Palisades Club •Condition stating no pickleball use •August 14, 2023: Appeal filed Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138) SUBSTANTIAL CONFORMANCE 6 Permitted by UP1697 Proposed Hours of Operation 7 a.m. – midnight, daily 8 a.m. – 8:30 p.m., daily Parking 78 on-site spaces 72 on-site 6 off-site Use Tennis Tennis Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138) STAFF APPROVAL FINDINGS 7 •Consistent with the PR zoning and UP1697 for tennis play and instruction on existing tennis courts •Will include 78 parking spaces dedicated to tennis club use •No change in use or construction proposed; no change to the findings of the EIR originally prepared for the tennis club •Compliant with all conditions of approval of UP1697, plus additional conditions from Staff Approval Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138) NOTABLE CONDITIONS 8 •Condition 3: All spaces in Parcel 2 dedicated to tennis club use. A minimum of 78 parking spaces dedicated between Parcel 2 and hotel site for tennis club use. •Condition 4: Any special events for tennis clubs to be coordinated with Hyatt hotel to avoid parking issues. •Condition 5: Members of Champions Club to have access to restroom facilities at Hyatt hotel •Condition 6: No Pickleball activities of any kind within tennis clubs unless an amendment is approved Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138) STAFF RESPONSES TO APPEAL 9 •The Director’s decision proceeded in a manner required by law. •Staff approval is appropriate and required findings are addressed •Staff approval does not require a public hearing (20.54.070) •Does not authorize a new use, development, or change of use •The Director’s decision was not an abuse of discretion and is supported by the evidence. •Required findings are addressed in the draft resolution Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138) STAFF RESPONSES TO APPEAL 10 •The Staff Approval complies with CEQA •Consistent with EIR No. 38, which was approved with original use permit. No physical change proposed. •Class 1 exemption is also appropriate, which allows for the leasing of private facilities involving negligible or no expansion of former use •Prohibition of pickleball use at the club without further amendments •The Staff Approval complies with the Coastal Act •No new development or change in existing intensity •Continuation of existing use is proposed •Coastal Act requirement for CDP not applicable as there is no development occurring Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138) STAFF RESPONSES TO APPELLANT LETTER 11 •Does the Staff Approval seal off club amenities? •Parking is provided to both clubs, subject to a lease agreement •Palisades continues to have access to the clubhouse on Parcel 1 •Champions has access to Hyatt hotel restrooms •Is the Staff Approval a first step for pickleball? •The Approval includes condition of approval specifically prohibiting pickleball use of any kind •An amendment to the existing use permit is required as a separate process •There is no application for further development submitted to the City Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138) STAFF RESPONSES TO APPELLANT LETTER 12 •Does the easement rights include parking? •The easement is for access to the Palisades Club, which is being provided through the existing drive aisle. •Does UP1697 obligate Hyatt to provide parking to Palisades? •Parking is being provided to both clubs, subject to a lease agreement •The UP does not require that Hyatt’s parking lot be leased at a specific pricing rate Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138) RECOMMENDATION 13 1)Conduct a public hearing; 2)Find this review exempt from CEQA under Class 1 (Existing Facilities); and 3)Adopt Resolution No. PC2023-034, upholding the action of the CDD Director and approving the Staff Approval (PA 2023-0138). Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138) 14 QUESTIONS AND DISCUSSION David Lee, Senior Planner 949-644-3225, dlee@newportbeachca.gov Planning Commission - October 19, 2023 Item No. 2c - Additional Materials Presented at Meeting by Staff The Champions Club Staff Approval Appeal (PA2023-0138)