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HomeMy WebLinkAboutIV(a)_Draft Minutes of August 21, 2023Attachment No. 1 Draft minutes of August 21, 2023 Page 1 of 6 CITY OF NEWPORT BEACH GENERAL PLAN ADVISORY COMMITTEE MINUTES COMMUNITY ROOM – 100 CIVIC CENTER DRIVE AUGUST 21, 2023 REGULAR MEETING – 5 P.M. I. CALL THE MEETING TO ORDER – 5:00 p.m. II. WELCOME AND ROLL CALL Present: Co-Chair Jeremy Evans, Dennis Baker, Curtis Black, Matthew Brady, James Carlson, Jeff Cefalia, Annie Clougherty, Susan DeSantis, Nancy Gardner, David Guder, Charles Klobe, Scott Laidlaw, Anthony Maniscalchi, Jim Mosher, Robert Rader, Nancy Scarbrough, Amber Snider, Debbie Stevens, Graham Wahlberg, and Christy Walker Staff: Deputy Community Development Director Jim Campbell and Principal Planner Ben Zdeba Absent: Co-Chair Arlene Greer (excused), Lynn Hackman, Laird Hayes, Ruth Kobayashi (excused), Katie Love (excused), Thomas Meng, Maxwell Pearson, Harrison Rolfes, Paul Watkins (excused), and Lori Williams III. PUBLIC COMMENTS ON NON-AGENDA ITEMS Debra Allen-Moore questioned the unit size, capacity per unit, play areas, and grocery options in the airport area that will be addressed during the Land Use Element item. Committee Member Baker questioned if a reduced membership could help make a quorum. Nancy Gardner stated that the General Plan Update Steering Committee (GPUSC) recommended to the City Council that membership be removed after three unexcused absences. IV. CURRENT BUSINESS a. Meeting Minutes of July 19, 2023 Motion made by Committee Member Baker and seconded by Committee Member DeSantis to approve the minutes of July 19, 2023. The motion carried unanimously with Co-Chair Evans abstaining. b. Land Use Element Policy Revisions for Housing Element Implementation At the June 19, 2023, GPAC Land Use Element Subcommittee meeting, the Subcommittee conducted a final review of the proposed changes to the Land Use Element policies that are necessary to implement the adopted 6th Cycle Housing Element for the General Plan Advisory Committee Minutes August 21, 2023 Page 2 of 6 2021-2029 planning period. At the July 19, 2023, GPAC meeting, the GPAC raised questions about the inclusion of Banning Ranch and increase density limits in each focus areas. The GPAC voted to send the Policy Matrix back to the Land Use Element Subcommittee for further discussion. At the July 26, 2023, Subcommittee meeting, the members in attendance discussed the policies. Additionally, they supported the removal of Banning Ranch from consideration for housing development. Recommended Actions: (1) Review and discuss. Recommend to the GPUSC that the revisions (or modified revisions) proceed to the Planning Commission for the study session on September 21, 2023, for further input and, ultimately, to the City Council for review and consideration; and (2) Consider making a recommendation to the GPUSC that the City Council remove development potential from Banning Ranch when reviewing the Land Use Element update. Committee Member Scarbrough provided handouts and reviewed the approved adopted housing element, total development capacity, and a unit capacity study without Banning Ranch and varying affordable and market rate units. She noted that a lot of new units are needed to conform to the housing element, a 10,000-unit count with a 35-38 percent affordable, raw numbers without the density bonus, density bonus law, and highlighted that there is only an inclusionary housing requirement in the airport area. She expressed concern for offering incentives. Co-Chair Evans relayed the matter before the GPAC to review the recommendations by the Land Use Subcommittee and vote and consider removing Banning Ranch from the development piece. Committee Member DeSantis requested disclosing subcommittee attendees. Principal Planner Zdeba reported the following in attendance at the July 26 Land Use Element Subcommittee meeting: Matthew Brady, Anthony Maniscalchi, Robert Radar, Debbie Stevens, Jim Mosher, Nancy Gardner, and Christy Walker. Committee Member Stevens directed individuals to the site analysis, reviewed the areas that would be subject to one hundred dwelling units per acre, expressed concern for the recommended density at every site minus Westcliff, thought data was needed to support the idea, and opposed the recommendation. Committee Member Klobe clarified the dwelling units and affordable units for apartments, thought the City should not make housing development more attractive than the law requires, and supported leaving the policy the way it is and removing Banning Ranch. In response to Committee Member Guder’s comment, Deputy Community Development Director Campbell clarified that the Department of Housing and Community Development (HCD) has certified the housing element that included assumptions in the housing element analysis and the density increase recommendations were born from the current economic conditions. He summarized three matters for review by the GPAC: overall matrix recommendation, Banning Ranch removal, and density. Committee Member Scarbrough suggested incentivizing projects with a large affordable unit count. General Plan Advisory Committee Minutes August 21, 2023 Page 3 of 6 Committee Member Wahlberg supported the recommendation as written, thought the way to provide more affordable housing is to build more overall housing, disagreed that increased density will create more traffic, and believed that by limiting the number of housing units enriches Irvine Company. He added that freeing and liberating housing opportunities will create places for people to live in Newport Beach who want to. Committee Member Mosher questioned how the density in the Coyote Canyon Focus Area will impact other sites included in that area that may have a different vision with reduced development standards, such as the Sage Hill School site. Committee Member Laidlaw thought that risk management is necessary to help developers, opposed a subjective review process for every project, and suggested capping the project size and a codified process. Deputy Community Development Director Campbell noted an unlimited number of allowable development standard waivers for density bonus entitled to the developer and the City must process density bonus projects by law as long it is demonstrated that the project cannot fit within the development standards. In response to Committee Member Maniscalchi’s inquiry, Deputy Community Development Director Campbell thought that an attempted legislature goal is to eliminate local City discretionary approvals and Senate Bill 35 will not be applicable to Newport Beach, as long as it is compliant with the housing element, noted examples of local control being taken away by the State, provided background on the plan versus production requirements of the housing element, and noted standards, zoning code, and other code modifications so they are objective and applicable. Committee Member DeSantis noted having served on the Housing Element Update Advisory Committee and its support of workforce housing for essential workers and suggested the GPAC support it too. She supported the Housing Element approved by HCD and thought the other increases pose a challenge for different areas in the City and would not get community support in Coyote Canyon. Committee Member Rader shared conversations with developers that revealed a 75 per acre unit minimum with 90-100 being better, that includes affordable housing and thought this would open opportunities and the City should not be scared of density. He noted benefits to higher density development and highly endorsed the proposal. Principal Planner Zdeba provided a framework to review the Land Use Policy Matrix for a supportive recommendation or provide a substitute motion with modifications, next steps for further Planning Commission and public conversation, and a recommendation for Banning Ranch in the Land Use Element Update. He emphasized that the Land Use Element Policy Matrix includes revisions that will implement the Housing Element. He emphasized there will be future opportunities to review other parts of the Land Use Element outside the housing arena. Committee Member Klobe expressed support for affordable housing, noted the proposal includes market rate housing only, and shared his concern for the matter not passing a vote of the public in November 2024 and the State overriding Charter 423. He suggested leaving the policy the way it is, so it has a better chance of passing a vote. General Plan Advisory Committee Minutes August 21, 2023 Page 4 of 6 Committee Member Stevens supported leaving the policy as is, letting developers come forward, and not appropriating 100 dwelling units per acre in all parts of the City. Committee Member Scarbrough supported housing and more opportunities for affordable housing and expressed concern for consultant input, public outreach, and the ballot. Committee Member Mosher expressed concern for supporting a recommendation that does not have a boundary on entitlement eligibility for market rate housing relative to workforce housing. Committee Member Maniscalchi noted a debate over density and a compromise at the Land Use Element Subcommittee meeting and a greater chance for voter approval with an increased understanding of the impact to developers and the City. Committee Member Stevens requested to see financial information that substantiates the need for a higher density. Motion made by Committee Member Wahlberg and seconded by Committee Member Rader to recommend to the GPUSC that the Land Use Element Policy Matrix revisions proceed to the Planning Commission. The motion failed 8 – 10 with Committee Members Baker, Black, Carlson, Clougherty, DeSantis, Guder, Klobe, Mosher, Scarbrough, and Stevens opposing the vote. Deputy Community Development Director Campbell recommended the GPAC endorse the Policy Matrix as it stands with zero density increases, indicated that the Land Use Policy Matrix has never been approved by the GPAC, and explained the timeline. Motion made by Committee Member Klobe and seconded by Committee Member DeSantis to approve the Land Use Policy Matrix to forward to the Planning Commission minus the four density increases and other changes made over time. The motion was bifurcated for a separate vote for Banning Ranch. The motion passed 10 – 7 with Committee Members Brady, Cefalia, Laidlaw, Maniscalchi, Mosher, Snider, and Wahlberg opposing the vote, and Co-Chair Evans abstaining. Motion made by Committee Member Klobe and seconded by Committee Member Baker to approve the Land Use Element Policy Matrix removing Banning Ranch. In response to Committee Member Mosher’s questions, Deputy Community Development Director Campbell clarified the intention to remove all references to the existing 1375 Banning Ranch housing units that are provided for in the housing element and include a few policy changes to eliminate references to housing. Committee Member Wahlberg opposed removing Banning Ranch totally from the housing element. Nancy Gardner stated that the owners of Banning Ranch would like the property removed because they will not be adding housing to the property due to a dead restriction. General Plan Advisory Committee Minutes August 21, 2023 Page 5 of 6 Committee Member Wahlberg advocated that land uses, conservation easements, and State laws change over time and thought it is short sighted to remove something that has an opportunity. Committee Member Carlson elaborated on the housing development restrictions at Banning Ranch. Committee Member Walker stated that Banning Ranch must remain open public space because of the source of the dollars that purchased the property. Deputy Community Development Director Campbell explained the current General Plan unit allocation for Banning Ranch and stated that the site was left as an opportunity site, yet excluded from the construction goals so it can be removed without any penalty or reallocation. Committee Member Maniscalchi’s question revealed that the Conservancy that bought Banning Ranch is dictating open space. Committee Member Rader thought that the GPAC should make a recommendation, and the City Council will decide. The motion passed 16 – 2 with Committee Members Cefalia and Wahlberg opposing the vote. c. Brief Overview of City’s Budget and Demographics Principal Planner Zdeba provided a short overview of the City’s budget for the fiscal year 2023-2024, as well as information on Newport Beach’s demographics, and agreed to send an email with the presentation. Committee Member Klobe noted that the City will have $45 million per year available once the pension debt is paid off. In response to Committee Member Mosher’s question, Principal Planner Zdeba noted housing occupancy and tenure date in the demographics profile on page 33 of the agenda attachments and offered to discuss offline turnover rates in different housing types and furnish the GPAC with housing data. In response to Committee Member DeSantis’ questions, Principal Planner Zdeba was unsure of the population decline in Newport Beach but thought about 2,000 people and noted that the effects to large employment industries, not just financial institutions, remains to be seen with technological advances and possible trends. He relayed that demographic research can be shared with the GPAC. Deputy Community Development Director Campbell relayed a 0.3 population reduction year-over-year for 2022-23 as per the State Department of Finance - Demographics Unit. Committee Member Klobe noted a decrease in population in Corona del Mar and the Peninsula attributed to an increase in short term lodging that displaced permanent residents. General Plan Advisory Committee Minutes August 21, 2023 Page 6 of 6 Deputy Community Development Director Campbell noted that there has been no decrease in housing stock and the occupancy is changing with short term lodging playing a role. d. Subcommittee Updates Co-Chair Evans asked that updates to the roster on page 39 – 41 be reported to Principal Planner Zdeba, encouraged the GPAC to review the outreach memorandum on page 42, and pointed out the timeline on the last page of the packet. e. Future Meeting Speakers Principal Planner Zdeba mentioned that staff can seek a futurist if there are no specific recommendations. Committee Member Baker suggested Jeremy Rifkin as a futurist speaker and a formal subcommittee update reporting process. Nancy Gardner hoped the consultant will help get subcommittee discussions posted on the website. Principal Planner Zdeba relayed that moving forward the subcommittee updating process approach will be more organized, productive, meaningful, and structured. Committee Member DeSantis suggested Wallace Walrod be invited to speak. Co-Chair Evans suggested Dr. Chris Mattmann, Chief Technology and Innovation Officer and Division Manager for Artificial Intelligence at NASA, as a futurist presenter. Committee Member Wahlberg suggested John Burns, real estate consultant and housing research expert, as a speaker. V. COMMITTEE ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON-DISCUSSION ITEM) In response to Committee Member Scarbrough’s question, Principal Planner Zdeba noted that Dudek and Kearns & West, the consultants, are under contract, actively working, and figuring out the outreach component to determine the rest of the timeline. VI. ADJOURNMENT With no further business, Co-Chair Evans adjourned the meeting. The next meeting is to be determined.