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HomeMy WebLinkAbout2023-70 - Approving a General Plan Amendment for the Tennis and Pickleball Club at Newport Beach Located at 1602 East Coast Highway (PA2021-260)RESOLUTION NO. 2023-70 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A GENERAL PLAN AMENDMENT FOR THE TENNIS AND PICKLEBALL CLUB AT NEWPORT BEACH LOCATED AT 1602 EAST COAST HIGHWAY (PA2021-260) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, on March 27, 2012, the City Council approved an application by Golf Realty Fund, Managing Owner ("Applicant") for the reconstruction of the 3,725-square-foot tennis clubhouse, reduction of tennis courts from 24 to seven courts, construction of a 27- room boutique hotel with 9,700 square feet of ancillary uses, five single -unit residential units, and a development agreement for the property ("2012 Entitlements") located at 1602 East Coast Highway, and legally described as Parcels A, B, C, and D of Parcel Map No. 2016- 151 (commonly referred as the "Tennis Club Site" or "Property"); WHEREAS, on November 20, 2018, the Zoning Administrator approved Coastal Development Permit No. CD2017-039, authorizing the redevelopment of the Property consistent with the 2012 Entitlements (2012 Entitlements and Coastal Development Permit No. CD2017-039 are collectively referred to as the "Approved Project"); WHEREAS, on November 2, 2021, the Applicant submitted an application to amend the Approved Project to include one additional tennis court for a total of eight courts, 14 additional hotel rooms for a total of 41 rooms, additional ancillary hotel uses, and three attached condominium units and two detached single -unit residences in -lieu of five detached single -unit residences ("2021 Project Application"); WHEREAS, on June 28, 2022, the City Council approved a one year extension of Development Agreement No. DA2008-001 which expired on September 23, 2023; WHEREAS, on September 8, 2022, the Planning Commission held a public hearing and recommended approval of the 2021 Project Application to the City Council; Resolution No. 2023-70 Page 2 of 13 WHEREAS, on September 27, 2022, the City Council held a public hearing on the 2021 Project Application but remanded it to the Planning Commission for further consideration of the pickleball use; WHEREAS, on October 11, 2022, the City Council adopted a motion to reconsider the 2021 Project Application; WHEREAS, on October 25, 2022, the City Council reconsidered the 2021 Project Application but continued the item to a future meeting after the Planning Commission considered an amendment to the project that included pickleball courts; WHEREAS, the Property currently has 31 pickleball courts and 16 tennis courts, which will remain as an interim use until the Project (defined below) is fully implemented; WHEREAS, on December 6, 2022, the Applicant submitted a revised application to the Approved Project to decrease the number of future tennis courts from seven to four tennis courts, add 14 pickleball courts, increase the number of future hotel rooms from 27 to 41 rooms, increase the gross floor area of ancillary hotel uses by 4,686 square feet, for a total of 14,386 square feet, provide three attached condominium units and two single -unit residences in -lieu of five single -unit residences, and approve a development agreement for a term of 10 years ("Project"); WHEREAS, the following land use approvals are requested or required for the Project: • General Plan Amendment ("GPA") — An amendment to Anomaly No. 46 of Table LU2 of the 2006 Newport Beach General Plan Land Use Element to document the conversion of 17 tennis courts to 27 hotel rooms and assignment of five residential units authorized by City Council Resolution No. 2012-10, the addition of 14 hotel rooms for a total of 41 rooms, the reduction from seven tennis courts to four tennis courts, and the addition of 14 pickleball courts; • Local Coastal Program Implementation Plan Amendment ("LCPA") — An amendment to Newport Beach Country Club (PC-47) Planned Community Coastal Zoning District Development Standards set forth in Section 21.26.055(S)(2) of the Newport Beach Municipal Code ("NBMC") to modify the permitted uses and development standards allowed on the Property; Resolution No. 2023-70 Page 3 of 13 • Planned Community Development Plan Amendment ("PCDP Amendment") —An amendment to Planned Community Development Plan No. 47 (Newport Beach Country Club Planned Community) to amend land use regulations and development standards on the Property; • Development Agreement ("DA") — A new development agreement between the Applicant and the City, pursuant to Sections 15.45.020(A)(2)(c) (Buildings and Construction, Development Agreements Required, Development Agreement Required) and 15.45.070 (Buildings and Constructions, Development Agreements, Amend ment/CanceIlation) of the NBMC, which would provide vested right to develop the Project for a term of 10 years and negotiated public benefits to the City; and • Addendum to previously adopted Mitigated Negative Declaration No. ND-2010- 008 (SCH2O10091052) ("Addendum") — Pursuant to the California Environmental Quality Act ("CEQA"), the Addendum addresses reasonably foreseeable environmental impacts resulting from the Project; WHEREAS, the Property is designated Mixed -Use Horizontal 3/Parks and Recreation (MU-H3/PR) by the City of Newport Beach General Plan and is located within the Newport Beach Country Club Planned Community (PC-47) Zoning District; WHEREAS, the Property is designated Mixed -Use Horizontal/Parks and Recreation (MU-H/PR) by the Coastal Land Use Plan and is located within the Newport Beach Country Club Planned Community (PC-47) Coastal Zoning District; WHEREAS, the Planning Commission held a public hearing on March 23, 2023, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California, at which time the Planning Commission considered the Project. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and Chapters 15.45 (Development Agreements), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; WHEREAS, at the conclusion of the hearing, the Planning Commission adopted Resolution No. PC2023-014 (5 ayes, 1 absent, 1 recusal) recommending approval of the Project to the City Council; and Resolution No. 2023-70 Page 4 of 13 WHEREAS, the City Council held a public hearing on November 14, 2023, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, and Chapters 15.45 (Development Agreements), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council has considered the recommendation of the Planning Commission and determined that modifications to the Project made by the City Council, if any, are not major changes that require referral back to the Planning Commission for consideration and recommendation. Section 2: The City Council hereby approves the General Plan Amendment, which is attached hereto as Exhibit "A," and incorporated herein by reference. Section 3: The City Council finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger. The Applicant shall indemnify, defend, and hold the City of Newport Beach harmless against any judicial challenges to the City's approval of the General Plan Amendment provided herein. Section 4: An amendment to the 2006 Newport Beach General Plan Land Use Element is a legislative act. Neither Title 20 (Planning and Zoning) nor California Government Code Section 65000 et seq., set forth any required findings for either approval or denial of such amendments. Nonetheless, the GPA is consistent with the following City of Newport Beach General Plan Land Use Element based upon the following: Resolution No. 2023-70 Page 5 of 13 Findings and Facts in Support of General Plan Consistency: As part of the Approved Project, the City Council adopted Resolution No. 2012-10, which authorized the conversion of 17 tennis courts to 27 hotel rooms along with the redevelopment of the Property including the seven remaining tennis courts. The City Council found that the conversion of tennis courts to hotel rooms was consistent with the General Plan based upon the revitalization to Newport/Fashion Island area where the General Plan encourages additional hotel development and housing units, and the fact that the conversion did not create traffic impacts. At the time of the conversion, the 17 tennis courts generated 658 average daily trips based upon ITE Trip Generation Rates (7th edition), while the 27 hotel rooms generated 221 average daily trips, resulting in a net decrease of 389 daily trips. With the amendment to the Approved Project, Anomaly No. 46 will be modified to include 14 additional hotel rooms, four tennis courts, and 14 pickleball courts. Together, a total of 41 hotel rooms (27+14 = 41 rooms) will be included in Anomaly No. 46. No change to the 3,725-square-foot Tennis and Pickleball Clubhouse is proposed. Finally, a maximum of five residential units have been specified in the Anomaly table. The GPA does not include a change in land use designation and would remain as Mixed -Use Horizontal 3/Parks and Recreation (MU-H3/PR). The amendment to the Approved Project is consistent with the following General Plan policies: a. Land Use Element Policy LU1.1 (Unique Environment). Maintain and enhance the beneficial and unique character of the different neighborhoods, business districts, and harbor that together identify Newport Beach. Locate and design development to reflect Newport Beach's topography, architectural diversity, and view sheds. The Project includes an amendment to the PC-47 District regulations on the tennis club site and reflects the proposed development on the Property. PC-47 will continue to guide development occurring within the Property. The development standards address building height, setbacks, landscaping, and architectural character. The standards are intended to ensure that the City's unique character is maintained through land use and architectural diversity. b. Land Use Element Policy LU1.2 (Citywide Identity). While recognizing the qualities that uniquely define its neighborhoods and districts, promote the identity of the entire City that differentiates it as a special place within the Southern California region. Resolution No. 2023-70 Page 6 of 13 The area in which the Property is located is characterized by a variety of residential, commercial, and recreational land uses that reflect a range of architectural styles, that contribute to the unique character of the City. The intensity and architectural character of the Project are compatible with the variety of densities and styles within the area, which are consistent with the identity of the City. The architectural character of the Project, including the bungalow -style hotel rooms, detached residential units, and attached residential loft buildings, is consistent with the City's desire to differentiate Newport Beach from other coastal cities. C. Land Use Element Policy LU2.1 (Resident -Serving Land Uses). Accommodate uses that support the needs of Newport Beach's residents including housing, retail, services, employment, recreation, education, culture, entertainment, civic engagement, and social and spiritual activity that are in balance with community natural resources and open spaces. The Project will continue to provide residents with recreational opportunities, culture, entertainment, and civic engagement. The proposed amendment continues to support recreational uses by providing four tennis courts and 14 pickleball courts. The GPA provides an additional 14 hotel rooms to the previously approved 27-unit hotel development with additional hotel amenities for club members such as a Performance Therapy Center and Yoga Pavilion. d. Land Use Element Policy LU.2.6 (Visitor Serving Uses). Provide uses that serve visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents The Project provides visitors with an updated recreational facility as it includes a new Tennis and Pickleball Clubhouse, four tennis courts and 14 pickleball courts. Two of the 14 pickleball courts are proposed to be located within a new stadium. The Tennis and Pickleball Club is adjacent to a golf course with amenities and is within 2,000 feet of Newport Bay. The proposed 41 hotel rooms provide additional opportunities for visitors to enjoy the Tennis and Pickleball Club and nearby recreational activities. Resolution No. 2023-70 Page 7 of 13 e. Land Use Element Policy LU3.2 (Growth and Change). Enhance existing neighborhoods, districts, and corridors, allowing for reuse and infill with uses that are complementary in type, form, scale, and character. Changes in use and/or density/intensity should be considered only in those areas that are economically underperforming, are necessary to accommodate Newport Beach's share of projected regional population growth, improve the relationship and reduce commuting distance between home and jobs, or enhance the values that distinguish Newport Beach as a special place to live for its residents. The scale of growth and new development shall be coordinated with the provision of adequate infrastructure and public services, including standards for acceptable traffic level of service. The character of the Tennis and Pickleball Club, hotel development, and residential units are compatible with the existing land uses and development intensities of the surrounding area. Although the reduction of three tennis courts and addition of 14 hotel rooms and 14 pickleball courts requires amendments to adopted plans and regulations, the existing tennis club and hotel development that are the substance of the Approved Project are allowed under the existing General Plan. The Project has been designed to be compatible with the existing residential, commercial, and recreational uses located within the vicinity of the Property. In addition, the surrounding area is adequately served by existing infrastructure, including circulation, water, sewer, and storm drainage systems. As a result, the implementation of the Project will not adversely affect those systems or the provision of adequate service to nearby development. f. Land Use Element Policy LU3.3 (Opportunities for Change). Provide opportunities for improved development and enhanced environments for residents in the following districts and corridors, as specified in Polices 6.3.1 through 6.22.7: Fashion Island/Newport Center expanded retail uses and hotel rooms and development of residential in proximity to jobs and services, while limiting increases in office development. The Project enhances the Property by providing 41 hotel rooms, ancillary uses, five residential units, four tennis courts and 14 pickleball courts as well as the reconstruction of the Tennis and Pickleball Clubhouse. The Project will be utilized as a recreational facility for residents, guests, and club members. g. Land Use Element Policy LU4.1 (Land Use Diagram). Accommodate land use development consistent with the Land Use Plan. Resolution No. 2023-70 Page 8 of 13 The Project is consistent with the designation of the General Plan Land Use Element, which designates the Property as MU-H3/PR. The Property is located within Anomaly 46, which allocates 24 tennis courts with residential permitted in accordance with the MU-H3 designation. The GPA includes an amendment to the Development Limit (Other) of Anomaly 46, to reduce the number of tennis courts to four, add 14 pickleball courts, and include 41 hotel rooms. h. Land Use Element Policy LU5.1.2 (Compatible Interfaces). Require that the height of development in nonresidential and higher -density residential areas transition as it nears lower -density residential areas to minimize conflicts at the interface between the different types of development. Although the Property is not located adjacent to lower density residential development, the Project has been designed to respect the proximity of the existing residential development adjacent to the Property. The amended PC-47 prescribes maximum building heights and setback requirements for each of the development components to ensure land use compatibility. Building heights for the proposed structures will range from 46 feet for the attached residential loft buildings, 39 feet for the detached residential units, 31 feet for the hotel rooms, and 30 feet for the Tennis and Pickleball Clubhouse, which are within the maximum 50-foot building height allowed by PC-47. Land Use Element Policy LU (5.3.3). Require that properties developed with a mix of residential and non-residential uses be designed to achieve high levels of architectural quality in accordance with Policies 5.1.9 and 5.2.1 and planned to assure compatibility among the uses and provide adequate circulation and parking. Residential uses should be seamlessly integrated with non-residential uses through architecture, pedestrian walkways, and landscape. They should not be completely isolated by walls or other design elements. The Project includes four tennis courts, 14 pickleball courts, 41 hotel rooms and ancillary hotel uses, two single -unit residences, and three residential condominium units. The Project provides adequate parking for each of the proposed uses. Vehicular and pedestrian circulation has been designed to accommodate the residents, guests, and members of the Tennis and Pickleball Club and hotel development. The architectural character of the uses is defined in PC-47 to ensure that compatibility between proposed uses and the surrounding area is maintained. Resolution No. 2023-70 Page 9 of 13 j. Land Use Element Policy LU5.3.4 (Districts Integrating Residential and Nonresidential Uses). Require that sufficient acreage be developed for an individual use located in a district containing a mix of residential and non- residential uses to prevent fragmentation and assure each use's viability, quality, and compatibility with adjoining uses. Each of the uses has been designed to complement the overall Project. The uses are connected by the vehicular and pedestrian circulation system, including sidewalks and pedestrian pathways. Land use compatibility is achieved through a common landscape theme and design guidelines in PC-47 to ensure that the architectural integrity of the Project is not compromised. k. Land Use Element Policy LU6.14.2 (Newport Center). Provide the opportunity for limited residential, hotel, and office development in accordance with the limits specified by Tables LU1 and LU2. The Project has a mix of land uses including single -unit residential, attached residential condominiums, recreational tennis and pickleball club facilities, and visitor -serving commercial uses. These uses are permitted in Table LU1 under the MU-H3/PR land use designation. The GPA proposes to amend the development limits of Table LU2 to include four tennis courts, 14 pickleball courts, and 41 hotel rooms. 1. Land Use Element Policy LU6.14.6 (Pedestrian Connectivity and Amenity). Encourage that pedestrian access and connections among uses within the district be improved with additional walkways and streetscape amenities concurrent with the development of expanded and new uses. The Project provides for both pedestrian and vehicular access within the Property. Sidewalks and pedestrian pathways are incorporated into the circulation system that are intended to accommodate pedestrians utilizing the tennis club, hotel facilities, and future residents. A landscape plan has been provided which includes plant materials that are intended to reflect and complement the existing character within the project area. Resolution No. 2023-70 Page 10 of 13 Tribal Consultation Finding: Pursuant to California Government Code Section 65352.3 (SB18), a local government is required to contact the appropriate tribes identified by the Native American Heritage Commission ("NAHC") each time it considers a proposal to adopt or amend the General Plan. If requested by any tribe, the local government must consult for the purpose of preserving or mitigating impacts to cultural resources. Fact in Support of Finding of Consistency: The City received comments from the NAHC indicating that twelve tribal contacts should be provided notice regarding the proposed amendment. The tribal contacts were provided notice on June 9, 2022. Subsequently, City staff corresponded with two tribes, Gabrielino Tongva Indians of California and Juaneno Band of Mission Indians. On January 17, 2023, the aforementioned tribes were provided a courtesy notification that the application has been modified to include pickleball courts. No further correspondence was requested by either tribe. California Government Code Section 65352.3 requires notification 90 days prior to Council action to allow tribal contacts to respond to the request to consult. The 90-day notification period expired on September 7, 2022. Section 5: Charter Section 423 requires voter approval of any major General Plan amendment to the General Plan. A major General Plan amendment is one that significantly increases allowed density or intensity by 40,000 square feet of non- residential floor area, increases traffic by more than 100 peak hour vehicle trips (AM or PM), or increases residential dwelling units by 100 units. These thresholds apply to the total increases resulting from the GPA itself, plus 80 percent of the increases resulting from other CPAs affecting the same neighborhood (defined as a Statistical Area as shown in the General Plan Land Use Element) and adopted within the preceding 10 years. Council Policy A-18 (Guidelines for Implementing Charter Section 423) requires that proposed amendments to the General Plan be reviewed to determine if a vote of the Newport Beach electorate would be required. This policy includes a provision that all General Plan amendments be tracked as "Prior Amendments" for 10 years to determine if minor amendments in a single Statistical Area cumulatively exceed the thresholds indicated above. Resolution No. 2023-70 Page 11 of 13 Facts in Support Finding of Consistency with Charter Section 423: a. The Property is within Statistical Area L1. Prior amendments within the past 10 years are Vivante Senior Housing and Residences at Newport Center. Charter Section 423 counts 80 percent of prior increases, which results in a cumulative increase of 94 dwelling units, 23 AM trips, and 43 PM trips between both projects. There were no square footage increases. b. The GPA results in an increase of 14,000 square feet (at the rate of 1,000 square feet per hotel unit) of non-residential floor area, 26.21 AM trips, and 51.22 PM trips. When combined with 80 percent of the prior increases, this results in cumulative increases of 14,000 square feet of non-residential floor area, 49.21 AM trips, and 94.22 PM trips. As none of the thresholds specified by Charter Section 423 are exceeded, no vote of the electorate is required if the City Council chooses to approve the GPA. Section 6: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 7: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Resolution No. 2023-70 Page 12 of 13 Section 8: An Addendum to Mitigated Negative Declaration No. ND2010-008 (MND) was prepared for the Project in compliance with the California Environmental Quality Act ("CEQA") set forth in California Public Resources Code Section 2100 et seq.; CEQA's implementing regulations set forth in CCR Title 14, Division 6, Chapter 3 ("CEQA Guidelines") and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act) to ensure that the Project will not result in new or increased environmental impacts. On the basis of the MND and entire environmental review record, the reduction of three tennis courts and addition of 14 pickleball courts, 14 hotel rooms, and 4,686 square feet of ancillary hotel uses, and conversion of three single -unit residences to condominium units will not result in any new significant impacts that were not previously analyzed in the MND. The Addendum confirms and provides substantial evidence that the potential impacts associated with this Project would either be the same or less than those described in the MND, or as mitigated by applicable mitigation measures in the MND. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the MND, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, the City Council adopted Resolution No. 2023-69, thereby adopting an addendum to the previously adopted MND. Resolution 2023-69, including all findings contained therein, is hereby incorporated by reference. Resolution No. 2023-70 Page 13 of 13 Section 9: This resolution shall become effective only after the approval of the Local Coastal Program Amendment No. PA2021-260 by the California Coastal Commission, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 14t" day of November, 20 ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE a �on C. Harp Cit Attorney Attachment(s): Exhibit A - General Plan Amendment for the Tennis and Pickleball Club at Newport Beach Exhibit A General Plan Amendment for the Tennis and Pickleball Club at Newport Beach Anomaly Number Statistical Area Land Use Designation Development Limit sf Development Limit Other Additional Information 46 L1 MU-H3/PR 3,725 `24 TP-r,r11Q GE 46 ResIder,�T ii4 4 Tennis Courts permitted 14 Pickleball Courts 5 residential units permitted STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2023-70 as duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 14th day of November, 2023; and the same was so passed and adopted by the following vote, to wit: AYES: Councilmember Brad Avery, Councilmember Robyn Grant, Councilmember Joe Stapleton, Councilmember Erik Weigand NAYS: Mayor Noah Blom, Mayor Pro Tern Will O'Neill RECUSED: Councilmember Lauren Kleiman IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 15th day of November, 2023. dwzg��� Leilani I. Brown City Clerk Newport Beach, California