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2.0_Pine Knot Motel Appeal_PA2023-0027
CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT December 07, 2023 Agenda Item No. 2 SUBJECT: Pine Knot Motel Appeal (PA2023-0027) ▪Coastal Development Permit SITE LOCATION: 6302 West Coast Highway APPELANT: APPLICANT: Jim Mosher Eric Aust, Architect OWNER: 6302 INVESTMENTS LLC managed by Kevin Giz PLANNER: Joselyn Perez, Associate Planner 949-644-3312, jperez@newportbeachca.gov PROJECT SUMMARY An appeal of the Zoning Administrator’s September 28, 2023, decision to approve a coastal development permit (CDP) to rehabilitate a 12-room motel that was significantly damaged by fire in 2018 and partially demolished pursuant to Emergency Coastal Development Permit No. ECD2018-150. The project involves replacing the demolished portions of the structure, repairing the uninhabitable portions of the structure, the addition of a partial second story at the front of the property, and related site improvements. RECOMMENDATION 1)Conduct a public hearing; 2)Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 under Class 2 (Replacement or Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment; and 2)Adopt Resolution No. PC2023-041 denying the appeal and upholding and affirming the Zoning Administrator’s approval of a Coastal Development Permit to allow the addition of a partial second story and the rehabilitation of a 12-room motel filed as PA2023-0027 (Attachment No. PC 1). 1 INTENTIONALLY BLANK PAGE2 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 2 VICINITY MAP COASTAL LAND USE PLAN (CLUP) COASTAL ZONING LOCATION CLUP COASTAL ZONING CURRENT USE ON-SITE Visitor Serving Commercial (0.0 – 0.75 FAR) (CV-A) Commercial Visitor- Serving (CV) Damaged, vacant, motel NORTH CV-A CV Parking lot EAST CV-A CV Real estate office SOUTH Parks and Recreation (PR) PR West Newport Park WEST CV-A CV Hotel 3 INTENTIONALLY BLANK PAGE4 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 3 INTRODUCTION Attached to the staff report is the appeal application received by the City (Attachment No. PC 2), the resolution of the Zoning Administrator approving the CDP (Attachment No. PC 3), and minutes from the September 28, 2023, meeting of the Zoning Administrator (Attachment No. PC 4). Project Setting and Background Pine Knot Motel is located within the Newport Shores neighborhood of West Newport. The motel historically provided 12 guest rooms, caretaker quarters, lobby, central courtyard, rooftop deck, and nine onsite parking spaces. Due to room rates falling below the Statewide average daily room rate, the motel meets the Local Coastal Program definition of a low cost overnight visitor accommodation (LCOVA). The surrounding neighborhood is primarily developed with single-story and two-story single-unit and two-unit dwellings. Properties fronting West Coast Highway are nonresidential and are typically one to two stories tall. The notable exception being the three-story hotel to the immediate east of the project site. A City park and residential uses are located across West Coast Highway to the south. Figure 1 below provides an elevated view of the surrounding development. Figure 1: Project site and surrounding neighborhood On April 10, 2018, a structure fire occurred within the southwestern corner of the property and significantly damaged the motel. The Chief Building Official red-tagged (unsafe to Subject Property 5 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 4 enter) rooms 1 through 4, shown below in Figure 2, with the remainder of rooms yellow- tagged (given limited access to retrieve personal items only). Figure 2: Red tagged motel rooms, prior to demolition Rooms 1 through 4 were demolished in accordance with Emergency Coastal Development Permit No. ECD2018-150. A copy of ECD2018-150 is included as Attachment No. PC 5. The remaining units not demolished as part of ECD2018-150 are uninhabitable and have sat unused since the fire. The owners of the motel at the time of the fire explored a variety of options to restore the property prior to ultimately selling the property to the current ownership. Both property owners have been working diligently with the City to rehabilitate the property. Project Description The project will repair the damaged portions of the motel and a new building will be constructed in the place of the previously demolished portion of the motel. There will be a partial second story added at the front of the property as part of the new construction. There is a small 306 square-foot increase in gross floor area and no increase in the total 6 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 5 number of rooms from the earlier motel. The rehabilitated motel will feature a coastal modern architectural style that uses a mix of materials, such as wood siding and stucco, and will be painted white with black accents. While the footprint of the motel will remain mostly unchanged, the layout of the rooms will be reconfigured to provide eight standard rooms and four suites. Two of the reconfigured rooms will provide accessible accommodations for disabled persons whereas the original motel did not. The motel will feature a lobby with coffee bar, a courtyard with bocce ball and fire pit, a lounge, storage lockers, second-floor deck space, and laundry facilities. In addition, beach friendly amenities such as bicycles, towels, and chairs will be available to motel guests. A commercial trash enclosure will be constructed and the on-site, surface, parking lot will be improved and restriped. Restriping of the parking to comply disabled access standards will eliminate two parking spaces, resulting in a total of seven spaces provided. The project plans are included as Attachment No. PC 6. Zoning Administrator Hearing, Decision, and Appeal On September 28, 2023, the Zoning Administrator held a public hearing for the project. During the public hearing, one member of the public representing the Newport Shores Community Association, spoke in favor of the project and cited the widespread neighborhood interest in seeing the property rehabilitated to provide visitor accommodations. Mr. Jim Mosher also spoke and suggested the Planning Commission should review the project. He questioned the designs conformity with previous owner’s original plans, whether the nonconforming use could be reestablished, and if the conclusions of the LCOVA analysis were appropriate. The Zoning Administrator concluded the required findings could be made and adopted Resolution No. ZA2023-060 approving the Coastal Development Permit. On October 12, 2023, Mr. Jim Mosher filed a timely appeal of the Zoning Administrator’s decision. Conduct of Hearing Pursuant to NBMC Section 21.64.030.C.3 (Conduct of Hearing), a public hearing on an appeal is conducted “de novo,” meaning that it is a new hearing. The prior decision of the Zoning Administrator to approve the CDP has no force or effect. The Planning Commission is not bound by the Zoning Administrator’s prior decision or limited to the issues raised by the appeal. DISCUSSION General Plan and Zoning Code Consistency The property is categorized as Visitor Serving Commercial (CV) by the Land Use Element of the General Plan and is located within the Commercial Visitor-Serving (CV) Zoning 7 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 6 District. These designations are intended to provide areas appropriate for providing accommodations, goods, and services intended to primarily serve visitors to the City of Newport Beach. A motel use is consistent with CV General Plan land use designation and is a permitted use, subject to the approval of a Conditional use Permit (CUP), under the CV zoning designation. Pine Knot Motel previously operated without a CUP and is considered a nonconforming use due to its lack of a CUP. NBMC Section 20.38.080 (Repair of Damaged or Partially Destroyed Nonconformities) allows for a nonconforming use that was involuntarily damaged or destroyed to be reestablished by right if restoration work is commenced within 12 months of the date of damage and is diligently pursued to completion, and is not subject to an abatement period, unless otherwise allowed by the Director. The previous owners diligently pursued a viable rehabilitation plan after the fire and through the COVID-19 pandemic and ultimately sold the property. Current ownership has continued to diligently pursue restoration to maintain a motel use at the site. Additionally, the property is not subject to an abatement period. The project meets the requirements to reestablish the nonconforming use without a CUP. As a nonconforming use, the motel is also regulated by NBMC Section 20.38.050 (Nonconforming Uses), which restricts the ways in which a nonconforming use may be changed, expanded, increased, or intensified. Intensification of use is allowed with the approval of a CUP. Given the parking requirements for motels is set by number of guest rooms rather than gross floor area, the appropriate measure of intensification in this case is the number of guest rooms. The nominal addition of 306 square feet of gross floor area helps modernize and enhance usability of the motel but does not result in an increase in room count. Therefore the project is not an intensification of use and no CUP is required. Local Coastal Program Consistency The project site is located within the coastal zone, but outside of the California Coastal Commission (CCC) Appeal Area. The Coastal Commission does not have jurisdiction over the project because it is outside the Appeal Area and because prior development was not subject to a coastal development permit (CDP) issued by the CCC. The project site is categorized as Visitor Serving Commercial (0.0 – 0.75 FAR) (CV-A) by the Coastal Land Use Plan (CLUP). The coastal zoning designation is Commercial Visitor- Serving (CV). Both designations are intended to provide for accommodations (e.g. hotels, motels, hostels), goods, and services intended to primarily serve visitors to the City of Newport Beach. A motel use at the project site is consistent with these designations and an important part of maintaining the character of Newport Beach as a visitor destination with coastal access. 8 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 7 Coastal Development Permit A CDP is required because the rehabilitation project includes the construction of an additional story that increases the existing structure’s height by more than 10%. To approve a CDP, the following findings and facts in support of such findings are required: a. Conforms to all applicable sections of the certified Local Coastal Program; and b. Conforms with the public access and public recreation policies of Chapter 3 of the Coastal Act if the project is located between the nearest public road and the sea or shoreline of any body of water located within the coastal zone. Development Standards The rehabilitated motel and accessory structures conform to applicable development standards of Title 21 (Local Coastal Program Implementation Plan), including floor area limit, setbacks, and height, apart from parking, as evidenced by the project plans and illustrated in Table 1 below. Table 1 – Development Standards Development Standard Standard Proposed Setbacks (min.) Front 0 0 feet Side – Prospect Street 0 3 feet, 3 inches Side – Alley 0 19 feet, 4 inches Rear 0 2 feet, 10 inches Maximum Gross Floor Area 4,406.5 square feet 4,406 square feet Maximum Allowable Floor Area Ratio .5 FAR .5 FAR Parking (min.) 12 spaces 7 spaces Height (max.) 26-foot flat roof 31-foot sloped roof 26-foot top of guardrail 31-foot sloped roof Parking Reduction Request A motel use requires one parking space per guest room, or 12 spaces for a 12-room motel. However, the most recent parking lot configuration only provided nine nonconforming parking spaces. The proposed project will further reduce the total number of parking spaces to seven. This reduction is not voluntary and is to comply with current parking lot and disabled access standards. While the loss of parking related to required disabled parking space upgrades is administratively permissible in Title 20 (Planning and Zoning), Title 21 lacks a similar allowance. The application instead includes a request to waive the two spaces affected 9 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 8 by the upgrade which is allowed pursuant to NBMC Section 21.40.110 (Adjustments to Off-Street Parking Requirements). To allow the reduction, the project must demonstrate a reduced parking demand and a lack of impact to coastal access. The following site and operational characteristics support the reduction of required off-street parking: • While motels historically have been used by traveling motorists, modern technology increases the likelihood that some guests will arrive via rideshare. • Some guests, especially families with children, are likely to book more than one room without arriving in more than one vehicle. Likewise, groups staying at the motel are likely to carpool and will not arrive individually. • The site is served by regular bus service, with an Orange County Transit Authority (OCTA) bus stop approximately one block to the east. • There is on-street parking available along West Coast Highway, Seashore Drive, and there are multiple municipal lots along Seashore Drive. Two of the municipal lots are located less than 300 feet from the project site. • The project site is within walking distance of coastal resources that guests will visit. For example, the site is less than 400 feet from a large, sandy, beach with beach volleyball courts available off of the Grant Street end, less than .33 miles from the site. Additionally, the motel will have bicycles and on-site bicycle parking available for use by guests that wish to visit destinations beyond walking distance, such as the Balboa Peninsula, the Newport Pier, or popular surfing locations within the area. • The motel is small in scale and will operate with a limited number of employees at any given time. • The project will ultimately increase coastal access for disabled individuals. The prior parking lot layout did not provide an accessible space for the disabled. The restriping of the parking lot will provide one compliant space and the rehabilitated motel will provide two compliant guest rooms for the disabled. Visitor Accommodations Applications involving either the development of new visitor accommodations; or the expansion, reduction, redevelopment, demolition, conversion, closure, or cessation of existing visitor accommodations in the coastal zone, require the review authority to consider the following: 10 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 9 1) the development’s ability to otherwise protect, encourage, or provide low-cost visitor-serving and recreational facilities on the project site or in the immediately adjacent area; 2) the impact to, and ability to provide, public recreational opportunities; 3) the feasibility to rehabilitate existing low-cost accommodations to meet a minimum acceptable level of comfort and hospitality while maintaining the ability to provide low cost visitor accommodations; and 4) the range of room types and room rates Citywide. A feasibility and impact assessment report was prepared by PFK Hospitality Group, dated July 2023 (Attachment No. PC 7). The report found that the motel would need to charge an Average Daily Rate (ADR) of $325 to operate successfully. The report concludes that while the project does not reduce the availability of low cost overnight visitor accommodations (LCOVA) within the City, the fire did that, the new accommodations fail to provide a range of affordability (i.e., no low cost accommodations would be provided). The report also adds that high land values within the City generally render sites unsuitable for the development of LCOVA. NBMC Section 21.48.025.C.4 requires new accommodations provide a minimum of 25% of rooms as LCOVA. As the project fails to provide any LCOVA as it is infeasible, the project impacts the potential availability of LCOVA and mitigation proportional with the impact is required. Condition of Approval No. 2 in the draft resolution requires that the applicant pay an in-lieu fee for the inability to provide the minimum required 25% (three rooms) of the new accommodations as low cost in the amount of $25,000 per room ($75,000 total). The fee has been determined by the Community Development Director and is based on the size of the motel, proposed ADR, and the amenities provided by the motel. The applicant was agreeable to this payment as it does not render the project financial infeasible. The in-lieu fee paid by the applicant will benefit the Fostering interest in Nature (FiiN) program, administered by the City of Newport Beach and Newport Bay Conservancy and fulfills the provision of providing lower-cost overnight opportunities. The FiiN program operates as a 3-day, 2-night program for 16 sessions over eight weeks and reaches a minimum of 560 disadvantaged students per year. FiiN partners with Newport Dunes to provide student and teacher accommodations, meals, and amenities to the program. FiiN provides students with a diverse environmental education experience and highlights the importance of coastal and estuarine environments. Lessons and activities take place at the Back Bay Science Center and within the natural settings of Upper Newport Bay and Big Canyon. The program helps foster increased awareness and need for environmental conservation and stewardship of the natural world. The curriculum also begins to stimulate and encourage interest in scientific inquiry and research involving natural environments and ecosystems. Many FiiN attendees have had limited exposure to nature- 11 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 10 based recreation activities and experience riding on a boat, viewing wildlife, kayaking, camping in a tent, and roasting a marshmallow over a campfire for the first time. The FiiN program was established as mitigation for the Lido House Hotel project and the subject application contribution will allow for a modest expansion so the program can accommodate additional children. Coastal Hazards The project site is located on an inland property, in a developed area, approximately 600 feet from Semeniuk Slough and 800 feet from the mean high-water line of the Pacific Ocean. The site is separated from Semeniuk Slough by multiple blocks of residential properties and is separated from the mean-high water line of the Pacific Ocean by multiple blocks of residential properties and West Coast Highway. The lowest finished floor elevation of the first floor of the structure is 9.67 feet, based on the North American Vertical Datum of 1988 (NAVD 88). That height complies with the minimum 9.0-foot (NAVD 88) elevation standard for interior livable areas within new structures/new development. The identified distances from coastal hazard areas, coupled with the 9.67-foot NAVD 88 finish floor height, help ensure the project is reasonably safe from coastal hazards for the economic life of the structure. The property is in an area known for the potential of seismic activity and liquefaction. All projects are required to comply with the California Building Code (CBC) and Building Division standards and policies. A Preliminary Geotechnical Study has been prepared by R. McCarthy Consulting, Inc., dated May 4, 2022. The project has been designed to be consistent with the recommendations in the studies. Construction plans are reviewed for compliance with approved investigations and CBC prior to building permit issuance. Public Views The project site is not located adjacent to a coastal view road, public access way, or Coastal Viewpoint as identified in the Coastal Land Use Plan. 12 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 11 Figure 3: Project proximity to the nearest designated viewpoints As demonstrated in Figure 3, the nearest designated public viewpoint is located at Newport Shores Park and overlooks the Semeniuk Slough. The viewpoint is approximately 600 feet to the east of the site and the site is not within the viewshed of the slough from that point. The nearest coastal view road is a portion of West Coast Highway that begins at the Santa Ana River, approximately 2,500 feet to the west of the site. The motel is not within the viewshed of the ocean from this roadway. As shown in Figures 4 below, the motel has been shuttered and fenced off since the fire. The rehabilitated motel, shown in Figure 5, will ultimately remedy a blighted condition and will provide a significant aesthetic improvement to the neighborhood thereby improving the visual quality of the coastal zone. Viewpoint View Road Subject Property 13 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 12 Figures 4 and 5: A before and after of the building, as seen from West Coast Highway Additionally, the building complies with applicable height limitations and maintains a building envelope consistent with the existing neighborhood pattern of development. The project does not contain any unique features that would degrade the visual quality of the coastal zone. 14 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 13 Public Access The project site is not located between the nearest public road and the sea or shoreline. As such, it is not necessary to assess project consistency with the public access and public recreation policies of Chapter 3 of the Coastal Act. However, vertical access to the beach is in proximity to the site, along Prospect Street. Lateral access to the coast is available beginning at the Prospect Street end and along the beach. The project does not include any features that would obstruct or limit access along these routes. Any potential impact to public access resulting from the small parking reduction is partly offset by the resumption of the use and any residual impact is nominal. Staff Response to the Project Appeal The appeal objects to the proposed mitigation fee for the project’s failure to provide LCOVA and the total number of rooms being assessed a mitigation fee. The appeal also contests whether the current proposal qualifies as diligent pursuit of a restoration plan within 12- months of damage and the proposed loss of two parking spaces. Low Cost Overnight Visitor Accommodations and In-Lieu Fee The 2018 fire significantly damaged the motel and is responsible for its closure and ending the availability of 12 LCOVA units at the site. Since there are no existing LCOVA units on the site today, the project does not constitute or result in an expansion, reduction, redevelopment, demolition, conversion, closure, or cessation of existing LCOVA. Rather, the project is considered the development of new visitor accommodations for the purposes of implementing NBMC Section 21.48.025 (Visitor Accommodations). As discussed in the Visitor Accommodations section of this report, NBMC Section 21.48.025.C.4 requires new accommodations that fail to provide a range of affordability, including at least 25% of the rooms as LCOVA, pay an in-lieu fee proportional with the impact. Mr. Mosher questions why the mitigation fee for Pine Knot Motel is lower than the in-lieu fee amount of $44,226 per room imposed by the California Coastal Commission in 2015 on the then-new Lido House Hotel. It is important to recognize the significant difference in the type of accommodation provided. The Lido House Hotel is a 4-star boutique hotel with over 130 keys, with a mix of guest rooms, suites, and cottages. Many of the suites feature private balconies or patios with enhanced views of the coast. The amenities on the property include a fitness center, outdoor pool and hot tub, a full-service spa, restaurant, and rooftop bar. The hotel also offers indoor and outdoor event space, a grand ballroom, and meeting rooms. The mitigation fee for Lido House Hotel is not a fair comparison to Pine Knot Motel. The proposed project is a motel and does not provide similar amenities as the Lido House Hotel. The proposed motel does not include fitness facilities, event spaces, or an on-site restaurant. The rooms will not have ocean or harbor views and the project site is not 15 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 14 centrally located in a visitor serving business district. Pine Knot Motel is well located for access to West Newport beaches and Coast Highway. The proposed fee for Pine Knot Motel balances both financial feasibility with providing a visitor accommodation use and offers the intended mitigation without functioning as an excessive hardship that ultimately renders the rehabilitation of the property infeasible. The applicant is not in agreement to a higher fee as it would likely render the overall project infeasible. Reestablishing the Nonconforming Use Like Title 20 (Planning and Zoning), Title 21 (Local Coastal Implementation Plan) considers any use lawfully established prior to certification of the Implementation Plan to be a nonconforming use. Section 21.38.080 of the NBMC allows for a nonconforming use that was involuntarily damaged or destroyed to be reestablished by right if restoration work is commenced within twelve months of the date of damage and is diligently pursued to completion, and is not subject to an abatement period, unless otherwise allowed by the Director. Reestablishing a use after a disaster requires considerable planning efforts, the availability of resources, and the availability of capital. Balancing a variety of considerations ranging from high land values, construction costs, operating costs, and the COVID-19 pandemic influenced the preparation and timing of the rehabilitation plan. Given the complexity of development, NBMC Section 21.38.080 offers the Community Development Director discretion in implementing this code section. The previous owners worked with City staff to explore multiple options to repair the site. While the owners ultimately sold the property, the current owner intends to maintain the motel use. The Community Development Director, in this case, considers these efforts to be the diligent pursuit of a plan to completion and the project meets the requirements to reestablish the nonconforming use. Reduction in Parking As previously discussed in the report, the loss of two onsite parking spaces is related to the restriping of the existing parking lot to modern standards that comply with disabled access requirements. Adequate facts exist to support the parking reduction and demonstrate a lack of impact to coastal resources. Furthermore, the project ultimately adds an accessible parking space, in conjunction with accessible guest rooms, where they did not exist before. This is an overall increase in access to the coast for disabled visitors. Because the project maintains a similar footprint to the existing motel, the site is constrained and the ability to provide more onsite parking is significantly limited. The project balances the provision of onsite vehicle parking with new bicycle parking and a new trash enclosure. The Applicant coordinated with the Public Works Department to provide the maximum amount of onsite parking possible while adding new code required improvements and maintaining the existing motel footprint. 16 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 15 Summary Approval of the CDP will allow for the addition of a partial second story at the front of the property and the rehabilitation of a derelict 12-room motel previously destroyed by a fire. The project removes a blighted condition that has impacted the Newport Shores community for over five years. The project increases the availability of visitor accommodations within the Coastal Zone and provides disabled access rooms where they did not exist before. As the project cannot feasibly provide LCOVA, the applicant will instead pay an in-lieu fee in the total amount of $75,000. The fee will benefit and prolong the operation of the FiiN program which brings a minimum of 560 students per year to the coast for recreational and overnight opportunities. Alternatives 1. The Planning Commission may suggest specific changes that are necessary to alleviate any concerns. If the requested changes are substantial, the item could be continued to a future meeting. Should the Planning Commission choose to do so, staff will return with a revised resolution incorporating new findings and/or conditions. 2. If the Planning Commission believes that there are insufficient facts to support the findings for approval and a denial action is more appropriate, staff would recommend a continuance to prepare a resolution reflecting this course of action. ENVIRONMENTAL REVIEW This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 under Class 2 (Replacement or Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. Class 2 exempts the replacement or reconstruction of existing structures where the new structure will be located on the same site as the replaced structure and the replacement will have substantially the same purpose and capacity as the replaced structure. The proposed project will rehabilitate a partially destroyed motel. The motel will maintain the same number of guest rooms and a similar footprint on the same site as the existing structure. The exceptions to this categorical exemption under Section 15300.2 are not applicable. The project location does not impact an environmental resource of hazardous or critical concern, does not result in cumulative impacts, does not have a significant effect on the environment due to unusual circumstances, does not damage scenic resources within a state scenic highway, is not a hazardous waste site, and is not identified as a historical resource. 17 Pine Knot Motel Appeal (PA2023-0027) Planning Commission, December 7, 2023 Page 16 PUBLIC NOTICE Notice of this hearing was published in the Daily Pilot, mailed to all owners and residential occupants of property within 300 feet of the boundaries of the site (excluding intervening rights-of-way and waterways) including the applicant, and posted on the subject property at least 10 days before the scheduled 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: JM/jp ATTACHMENTS PC 1 Draft Resolution PC 2 Emergency Coastal Development Permit No. ECD2018-150 PC 3 Zoning Administrator Resolution No. ZA2023-060 PC 4 Zoning Administrator Minutes from September 28, 2023 PC 5 Appeal Application PC 6 Project Plans PC 7 Feasibility and Impact Assessment, prepared by PFK Hospitality Group 01/18/23 18 Attachment No. PC 1 Draft Resolution 19 INTENTIONALLY BLANK PAGE20 RESOLUTION NO. PC2023-041 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA, UPHOLDING THE ZONING ADMINSTRATOR’S APPROVAL OF A COASTAL DEVELOPMENT PERMIT TO ALLOW THE ADDITION OF A PARTIAL SECOND STORY AND THE REHABILITATION OF A 12- ROOM MOTEL LOCATED AT 6302 WEST COAST HIGHWAY (PA2023-0027) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Eric Aust, Architect (Applicant), with respect to property located at 6302 West Coast Highway and legally described as a portion of Lots 3, 4, 5, and 6, Block 3, Seashore Colony Tract (Property) requesting approval of a coastal development permit (CDP). 2. The Applicant proposes to rehabilitate a 12-room motel that was significantly damaged by fire in 2018 and partially demolished pursuant to Emergency Coastal Development Permit No. ECD2018-150. The project involves replacing the demolished portions of the structure, repairing the uninhabitable portions of the structure, the addition of a partial second story at the front of the property, construction of a commercial trash enclosure, and site improvements. Site improvements include but are not limited to, hardscaping, drainage, and restriping of the existing parking lot. Approximately 306 square feet will be added to the total gross floor area of the structure as part of the rehabilitation. The motel will maintain a relatively similar footprint to the damaged structure and will maintain the same number of guest rooms (Project). 3. The Property is categorized as Visitor Serving Commercial (CV) by the General Plan Land Use Element and is located within the Commercial Visitor-Serving (CV) Zoning District. 4. The Property is located within the coastal zone, but outside of the California Coastal Commission (CCC) Appeal Area. The Coastal Commission does not have jurisdiction over the project because it is outside the Appeal Area and because prior development was not subject to a CDP issued by the CCC. The Coastal Land Use Plan category is Visitor Serving Commercial (0.0 – 0.75 FAR) (CV-A) and it is located within the Commercial Visitor-Serving (CV) Coastal Zone District. 5. The motel historically operated without a conditional use permit (CUP) and prior to the current NBMC use regulations requiring motels obtain a CUP to operate within the CV zone. Pursuant to Section 20.38.030 (Determination of Nonconformity) of the NBMC, Pine Knot Motel is considered a nonconforming use due to its lack of a CUP. Section 20.38.080 (Repair of Damaged or Partially Destroyed Nonconformities) of the NBMC allows for a nonconforming use that was involuntarily damaged or destroyed to be reestablished by right if restoration work is commenced within 12 months of the date of damage, is diligently 21 Planning Commission Resolution No. PC2023-041 Page 2 of 13 01-17-23 pursued to completion, and is not subject to an abatement period, unless otherwise allowed by the Director. The previous owners diligently pursued a viable rehabilitation plan, after the fire and through the COVID-19 pandemic, that balanced both financial feasibility with providing a motel and ultimately sold the property. Current ownership is now seeking a CDP to implement the Project. Additionally, the Property is not subject to an abatement period. As the Project meets the requirements to reestablish the nonconforming use, no CUP is required pursuant to NBMC Section 20.38.080. 6. Section 20.38.050 (Nonconforming Uses) restricts the ways in which a nonconforming use may be changed, expanded, increased, or intensified. It provides that an intensification is allowed subject to approval of a CUP. An increase in floor area, lot area, or in occupancy load are provided as examples of what constitutes an intensification. Section 20.12.020 (Rules of Interpretation) however clarifies that the headings of the chapters, sections, and subsections of this Zoning Code, together with the accompanying examples and explanatory notes, are inserted as a matter of convenience and are not intended to define, limit, or enlarge the scope or meaning of this Zoning Code or its provisions. Given the parking requirements for motels is set by number of guest rooms rather than gross floor area, the appropriate measure of intensification is the required parking for the Project. The nominal addition of 306 square feet of gross floor area helps modernize and enhance usability of the motel, thereby supporting feasibility of the rehabilitation work, but does not increase the parking requirement. The addition is not an intensification of use; therefore, no CUP is required pursuant to NBMC Section 20.38.050 (Nonconforming Uses). 7. A public hearing was held on September 28, 2023. A notice of the time, place, and purpose of the hearing was given in accordance with California Government Code Section 54090 et seq. (“Ralph M Brown Act”) and Chapter 21.62 (Public Hearings) of the NBMC. Evidence both written and oral, was presented to and considered by the Zoning Administrator at this hearing. 8. The Zoning Administrator adopted Resolution No. ZA2023-060 approving a Coastal Development Permit (PA2023-0027). 9. On October 12, 2023, Mr. Jim Mosher filed a timely appeal of the Zoning Administrator’s decision objecting to the proposed mitigation fee for the project’s failure to provide low cost overnight visitor accommodations (LCOVA) and the total number of rooms being assessed a mitigation fee. The appeal also contests whether the current proposal qualifies as diligent pursuit of a restoration plan within 12 months of damage and the proposed loss of two parking spaces. 10. A public hearing was held on December 7, 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 the Ralph M. Brown Act and Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to and considered by, the Planning Commission at this hearing. 22 Planning Commission Resolution No. PC2023-041 Page 3 of 13 01-17-23 SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. This Project is categorically exempt pursuant to Title 14 of the California Code of Regulations Section 15302, Division 6, Chapter 3, Guidelines for Implementation of the California Environmental Quality Act (CEQA) under Class 2 (Replacement or Reconstruction), because it has no potential to have a significant effect on the environment. 2. Class 2 exempts the replacement or reconstruction of existing structures where the new structure will be located on the same site as the replaced structure and the replacement will have substantially the same purpose and capacity as the replaced structure. The proposed project will rehabilitate a partially destroyed motel. The motel will maintain the same number of guest rooms and a similar footprint on the same site as the existing structure. SECTION 3. REQUIRED FINDINGS. In accordance with Section 21.52.015(F) (Coastal Development Permits, Findings and Decision) of the Newport Beach Municipal Code, the following findings and facts in support of such findings are set forth: Finding: A. Conforms to all applicable sections of the certified Local Coastal Program. Facts in Support of Finding: 1. The Project complies with applicable development standards including, but not limited to, floor area limitation, setbacks, and height. a. The maximum gross floor area limitation is 4,406.5 square feet (0.50 FAR) and the proposed floor area of the motel is 4,406 square feet. b. The CV Coastal Zoning District only requires a side setback when a property abuts a residential use and only requires a rear setback when the property abuts either an alley or a residential use. No front setback is required. As the Property does not abut any residentially zoned properties and is abutted to the rear by a commercially zoned property, no building setbacks are required. c. The base height limit of the zoning district is 26 feet for flat elements and 31 feet for sloping roofs (minimum 3:12 slope). The highest guardrail is approximately 26 feet from established grade of 9.56 feet based on the North American Vertical Datum of 1988 (NAVD 88) and the highest ridge is no more than 31 feet from established grade, which comply with the maximum height requirements. d. Pursuant to Table 21.40-1 (Off-Street Parking Requirements) of the NBMC, a motel use requires one parking space per guest room. The 12-room motel requires 12 23 Planning Commission Resolution No. PC2023-041 Page 4 of 13 01-17-23 off-street parking spaces. The most recent parking lot configuration provided only nine parking spaces. The Project will further reduce the total number of parking spaces to seven due to the required restriping of the parking lot to comply with current parking lot and disabled access standards. The loss of two existing spaces is requested pursuant to Section 21.40.110 (Adjustments to Off-Street Parking Requirements) of the NBMC. 2. The Property is located within the West Newport neighborhood known as Newport Shores. The neighborhood was developed prior to the existence of minimum parking requirements and many properties do not provide the code required minimums. Section 21.40.110 (Adjustments to Off-Street Parking Requirements) of the NBMC allows the number of required parking spaces to be reduced subject to demonstrating a reduced parking demand and a lack of impact to coastal access. The following site and operational characteristics support the reduction of required off-street parking: a. While motels historically have been used by traveling motorists, modern technology increases the likelihood that some guests will arrive via rideshare and will not need on-site parking. b. Some guests, especially families with children, are likely to book more than one room without arriving in more than one vehicle. Likewise, groups staying at the motel are likely to carpool and will not arrive individually. c. The site is served by regular bus service, with an Orange County Transit Authority (OCTA) bus stop approximately one block to the east. d. There is on-street parking available along West Coast Highway, Seashore Drive, and there are multiple municipal lots along Seashore Drive. Two of the municipal lots are located less than 300 feet from the project site. e. The Property is within walking distance of coastal resources that guests will be able to access. For example, the site is less than 400 feet from a large, sandy, beach. Beach volleyball courts are available off of the Grant Street end, less than .33 miles from the site. Additionally, the motel will have bicycles and on-site bicycle parking available for use by guests that wish to visit destinations beyond walking distance, such as the Balboa Peninsula, the Newport Pier, or popular surfing locations within the area. f. The motel is small in scale and will operate with a limited number of employees at any given time. g. The project will ultimately increase coastal access for disabled individuals. The prior parking lot layout did not provide parking that would comply with the Americans with Disabilities Act (ADA). The restriping of the parking lot will provide one accessible space and the rehabilitated motel will provide two accessible guest rooms. 24 Planning Commission Resolution No. PC2023-041 Page 5 of 13 01-17-23 3. While Section 21.40.070 (Development Standards for Parking Areas) of the NBMC does not contain standard vehicle space requirements for parking provided at a 49-degree angle, the parking lot layout has been reviewed and accepted by the Public Works Department. 4. The motel does not provide the required number of parking spaces and is considered nonconforming pursuant to Section 21.38.060 (Nonconforming Parking) of the NBMC. Section 21.38.060 (Nonconforming Parking) of the NBMC allows for a nonconforming structure or use to be enlarged by up to 10% of its existing gross floor area if the required parking for the additional square footage is provided. As the required parking for a motel use is based on number of guest rooms provided rather than gross floor area of the structure, no additional parking is required. 5. Section 21.38.080 of the NBMC allows for a nonconforming use that was involuntarily damaged or destroyed to be reestablished by right if restoration work is commenced within 12 months of the date of damage, is diligently pursued to completion, and is not subject to an abatement period, unless otherwise allowed by the Director. After the 2018 fire, the previous owners worked diligently to create a rehabilitation plan. While the Property was ultimately sold, current ownership is seeking to implement a rehabilitation plan that maintains the site as a motel use. Additionally, the Property is not subject to an abatement period and the Project meets the requirements to reestablish the nonconforming use. 6. The surrounding neighborhood is predominantly developed with either single or two- story duplexes. Properties fronting West Coast Highway are nonresidential and typical one- to two-stories tall. The notable exception being the three-story hotel to the immediate east of the Property. The proposed design, bulk, and scale of the rehabilitated motel is consistent with the existing neighborhood pattern of development. 7. While the motel previously operated as a low cost overnight visitor accommodations (LCOVA) as defined in Section 21.48.025(C) of the NBMC, the April 10, 2018, structure fire that occurred at the Property left guest rooms 1 through 4 red-tagged (unsafe to enter) while the remainder of guest rooms were yellow-tagged (given limited access to retrieve personal items only). Rooms 1 through 4 were demolished pursuant to Emergency Coastal Development Permit No. ECD2018-150 with the remaining rooms left uninhabitable. 8. Pursuant to Section 21.48.025 (Visitor Accommodations) of the NBMC, applications involving the development of new visitor accommodations; or the expansion, reduction, redevelopment, demolition, conversion, closure, or cessation of existing visitor accommodations, require the review authority to consider the following: 1) the development’s ability to otherwise protect, encourage, or provide low cost visitor-serving and recreational facilities on the project site or in the immediately adjacent area; 2) the impact to, and ability to provide, public recreational opportunities; 3) the feasibility to rehabilitate existing low cost accommodations to meet a minimum acceptable level of comfort and hospitality while maintaining the ability to provide low cost visitor accommodations; and 4) the range of room types and room rates Citywide. 25 Planning Commission Resolution No. PC2023-041 Page 6 of 13 01-17-23 9. In this case, the 2018 fire significantly damaged the motel and is responsible for its closure ending the availability of 12 LCOVA units at the Property. Since there are no existing LCOVA units on the site, the Project does not constitute or result in an expansion, reduction, redevelopment, demolition, conversion, closure, or cessation of existing LCOVA. Rather, the Project is considered the development of new visitor accommodations for the purposes of implementing Section 21.48.025. 10. A feasibility and impact assessment report was prepared by PFK Hospitality Group, dated July 2023. The report found that the motel would need to charge an Average Daily Rate (ADR) of $325 to achieve a 75% occupancy rate and operate successfully. 11. The report presents the statewide ADR as $188 with only one hotel, Extended Stay America located at 4881 Birch Street, as providing LCOVA. The report concludes that while the project does not reduce the availability of LCOVA, the new accommodations fail to provide a range of affordability, including at least 25% of the rooms as LCOVA as required by NBMC Section 21.48.025.C.4. The report also adds that high land values within the City generally render sites unsuitable for the development of LCOVA. 12. As the Project fails to provide low-cost visitor-serving and recreational facilities, the Project impacts the availability of LCOVA. Pursuant to NBMC Section 21.48.025(C)(5) (Visitor Accommodations, Protection of Low Cost Visitor Accommodations), mitigation commensurate with the impact is required. Condition of Approval No. 2 requires that the applicant pay an in-lieu fee for inability to provide 25% three rooms of new accommodations as low cost. 13. The Applicant will pay an in-lieu fee in the amount of $25,000 for the three rooms not provided as LCOVA, for a total of $75,000. The fee has been determined by the Community Development Director and is based on the size, necessary ADR, and the amenities offered by the motel. The fee provides the intended mitigation without functioning as an excessive hardship that ultimately renders the rehabilitation of the property infeasible. 14. The in-lieu fee paid by the Applicant will benefit the Fostering interest in Nature (FiiN) program, administered by the Newport Bay Conservancy. The FiiN program offers a three-day, two-night program for 16 sessions over eight weeks and reaches a minimum of 560 students per year and fulfills the provision of providing lower-cost overnight opportunities. 15. The Project is located on an inland property in a developed area approximately 600 feet from Semeniuk Slough and 800 feet from mean high-water line of the Pacific Ocean. The Property is separated from Semeniuk Slough by multiple blocks of residential development and from the mean high-water line of the Pacific Ocean by multiple blocks of residential development, a park, and West Coast Highway. The lowest finished floor elevation of the first floor of the structure is 9.67 feet NAVD 88, which complies with the minimum 9.0-foot NAVD 88 elevation standard for interior livable areas within new structures and/or new development. The identified distances from the coastal hazard 26 Planning Commission Resolution No. PC2023-041 Page 7 of 13 01-17-23 areas, coupled with the 9.67-foot NAVD 88 finish floor elevation, will help to ensure the Project is reasonably safe for the economic life of the structure. 16. The Property is located in an area known for the potential of seismic activity and liquefaction. All projects are required to comply with the California Building Code (CBC) and Building Division standards and policies. Geotechnical investigations specifically addressing liquefaction are required to be reviewed and approved prior to the issuance of building permits. Permit issuance is also contingent on the inclusion of design mitigation identified in the investigations. Construction plans are reviewed for compliance with approved investigations and CBC prior to building permit issuance. 17. A Construction Erosion Control Plan was provided to implement temporary Best Management Practices (BMPs) during construction to minimize erosion and sedimentation and to minimize pollution of runoff and coastal waters derived by construction chemicals and materials. The project design also addresses water quality through the inclusion of a post-construction drainage system that includes drainage and percolation features designed to retain dry weather and minor rain event runoff on-site. Any water not retained on-site is directed to the City’s storm drain system. 18. Pursuant to Municipal Code Section 21.35.050 (Water Quality and Hydrology Plan), due to the proximity of the development to the shoreline and the development containing more than 75% of impervious surface area, a Water Quality and Hydrology Plan (WQHP) is required. A preliminary WQHP has been prepared for the project by Toal Engineering Inc., dated, January 25, 2023. The WQHP includes a polluted runoff and hydrologic site characterization, a sizing standard for BMPs, use of an LID approach to retain the design storm runoff volume on site, and documentation of the expected effectiveness of the proposed BMPs. 19. The Property is not located adjacent to a coastal view road, public access way, or Coastal Viewpoint as identified in the Coastal Land Use Plan. The nearest designated public viewpoint is located at Newport Shores Park and overlooks the Semeniuk Slough. The viewpoint is approximately 600 feet to the east of the site and the site is not within the viewshed of the slough from that point. The nearest coastal view road is a portion of West Coast Highway that begins at the Santa Ana River, approximately 2,500 feet to the west of the site. The motel is not within the viewshed of the ocean from this roadway. Additionally, the motel has been shuttered and fenced off since the structure fire. The rehabilitation of the motel will remedy a blighted condition and provide a significant aesthetic improvement to the neighborhood. The building complies with applicable height limitations and maintains a building envelope consistent with the existing neighborhood pattern of development. The project does not contain any unique features that would degrade the visual quality of the coastal zone. 27 Planning Commission Resolution No. PC2023-041 Page 8 of 13 01-17-23 Finding: B. Conforms with the public access and public recreation policies of Chapter 3 of the Coastal Act if the project is located between the nearest public road and the sea or shoreline of any body of water located within the coastal zone. Fact in Support of Finding: The Property is not located between the nearest public road and the sea or shoreline. As such, it is not necessary to assess the consistency with the public access and public recreation policies of Chapter 3 of the Coastal Act. However, vertical access to the beach is available in proximity to the site, along Prospect Street. Lateral access to the coast begins at the Prospect Street end and is available along the beach. The project does not include any features that would obstruct access along these routes. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby finds this project is categorically exempt from the California Environmental Quality Act pursuant to Section 15302 under Class 2 (Replacement or Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment. 2. The Planning Commission of the City of Newport Beach hereby upholds the Zoning Administrator’s approval of the Coastal Development Permit (PA2023-0027) subject to the conditions outlined in Exhibit “A,” which is attached hereto and incorporated by reference. 3. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal is filed with the City Clerk by the provisions of Title 21 Local Coastal Program Implementation Plan, of the Newport Beach Municipal Code. PASSED, APPROVED, AND ADOPTED THIS 7th DAY OF DECEMBER, 2023. AYES: NOES: ABSTAIN: ABSENT: 28 Planning Commission Resolution No. PC2023-041 Page 9 of 13 01-17-23 BY:_________________________ Curtis Ellmore, Chair BY:_________________________ Tristan Harris, Secretary 29 Planning Commission Resolution No. PC2023-041 Page 10 of 13 01-17-23 EXHIBIT “A” CONDITIONS OF APPROVAL 1. The development shall be in substantial conformance with the approved site plan, floor plans and building elevations stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2. Prior to the issuance of a building permit, the applicant shall pay an in-lieu fee in the amount of $75,000 for inability to provide 25% of new accommodations as low cost. 3. Bicycles and on-site bicycle parking shall be provided for guest use to the satisfaction of the Community Development and Public Works Directors. 4. No demolition or construction materials, equipment debris, or waste, shall be placed or stored in a location that would enter sensitive habitat, receiving waters, or a storm drain or result in impacts to environmentally sensitive habitat areas, streams, the beach, wetlands or their buffers. No demolition or construction materials shall be stored on public property. 5. The applicant is responsible for compliance with the Migratory Bird Treaty Act (MBTA). In compliance with the MBTA, grading, brush removal, building demolition, tree trimming, and similar construction activities shall occur between August 16 and January 31, outside of the peak nesting period. If such activities must occur inside the peak nesting season from February 1 to August 15, compliance with the following is required to prevent the taking of native birds pursuant to MBTA: A. The construction area shall be inspected for active nests. If birds are observed flying from a nest or sitting on a nest, it can be assumed that the nest is active. Construction activity within 300 feet of an active nest shall be delayed until the nest is no longer active. Continue to observe the nest until the chicks have left the nest and activity is no longer observed. When the nest is no longer active, construction activity can continue in the nest area. B. It is a violation of state and federal law to kill or harm a native bird. To ensure compliance, consider hiring a biologist to assist with the survey for nesting birds, and to determine when it is safe to commence construction activities. If an active nest is found, one or two short follow-up surveys will be necessary to check on the nest and determine when the nest is no longer active. 6. Best Management Practices (BMPs) and Good Housekeeping Practices (GHPs) shall be implemented prior to and throughout the duration of construction activity as designated in the Construction Erosion Control Plan. 7. The discharge of any hazardous materials into storm sewer systems or receiving waters shall be prohibited. Machinery and equipment shall be maintained and washed in confined areas specifically designed to control runoff. A designated fueling and vehicle 30 Planning Commission Resolution No. PC2023-041 Page 11 of 13 01-17-23 maintenance area with appropriate berms and protection to prevent spillage shall be provided as far away from storm drain systems or receiving waters as possible. 8. Debris from demolition shall be removed from work areas each day and removed from the project site within 24 hours of the completion of the project. Stockpiles and construction materials shall be covered, enclosed on all sites, not stored in contact with the soil, and located as far away as possible from drain inlets and any waterway. 9. Trash and debris shall be disposed in proper trash and recycling receptacles at the end of each construction day. Solid waste, including excess concrete, shall be disposed in adequate disposal facilities at a legal disposal site or recycled at a recycling facility. 10. Revisions to the approved plans may require an amendment to this coastal development permit or the processing of a new coastal development permit. 11. The project is subject to all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 12. The applicant shall comply with all federal, state, and local laws. Material violation of any of those laws in connection with the use may be cause for revocation of this coastal development permit. 13. This coastal development permit may be modified or revoked by the Zoning Administrator if determined that the proposed uses or conditions under which it is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity or if the property is operated or maintained so as to constitute a public nuisance. 14. Prior to the issuance of a building permit, the applicant shall submit a final construction erosion control plan. The plan shall be subject to the review and approval by the Building Division. 15. Prior to the issuance of a building permit, the applicant shall submit a final drainage and grading plan. The plan shall be subject to the review and approval by the Building Division. 16. Prior to the issuance of a building permit, a copy of the Resolution, including conditions of approval Exhibit “A” shall be incorporated into the Building Division and field sets of plans. 17. Prior to the issuance of a building permit, the final WQHP/WQMP shall be reviewed and approved by the Building Division. Implementation shall be in compliance with the approved CPPP and WQHP/WQMP and any changes could require separate review and approval by the Building Division. 18. Construction activities shall comply with Section 10.28.040 (Construction Activity – Noise Regulations) of the Newport Beach Municipal Code, which restricts hours of 31 Planning Commission Resolution No. PC2023-041 Page 12 of 13 01-17-23 noise-generating construction activities that produce noise to between the hours of 7:00 a.m. and 6:30 p.m., Monday through Friday, and 8:00 a.m. and 6:00 p.m. on Saturday. Noise-generating construction activities are not allowed on Saturdays, Sundays or Holidays. 19. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 and other applicable noise control requirements of the Newport Beach Municipal Code. The maximum noise shall be limited to no more than depicted below for the specified time periods unless the ambient noise level is higher: Between the hours of 7:00AM and 10:00PM Between the hours of 10:00PM and 7:00AM Location Interior Exterior Interior Exterior Residential Property 45dBA 55dBA 40dBA 50dBA Residential Property located within 100 feet of a commercial property 45dBA 60dBA 45dBA 50dBA Mixed Use Property 45dBA 60dBA 45dBA 50dBA Commercial Property N/A 65dBA N/A 60dBA 20. Prior to the issuance of a building permit, the applicant shall pay any unpaid administrative costs associated with the processing of this application to the Planning Division. 21. Should the property be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by the current property owner or agent. 22. This coastal development permit shall expire unless exercised within 24 months from the date of approval as specified in Section 21.54.060 (Time Limits and Extensions) of the Newport Beach Municipal Code, unless an extension is otherwise granted. 23. To the fullest extent permitted by law, applicant shall indemnify, defend and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney’s fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to City’s approval of Pine Knot Motel including, but not limited to, Coastal Development Permit (PA2023-0027). This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by applicant, City, and/or the parties initiating or bringing such proceeding. The applicant shall indemnify the City for all of City's costs, attorneys' fees, and damages, which City incurs in enforcing the indemnification provisions set forth in this condition. The applicant shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this condition. 32 Planning Commission Resolution No. PC2023-041 Page 13 of 13 01-17-23 Building Division 24. Exterior walls and walls between onsite buildings shall comply with CBC 705 regarding fire rating and allowable openings. 25. Newly constructed buildings shall comply with Chapter 11B & 11B-24 transient lodging of the 2022 CBC. 26. Guest rooms and common areas on the second floor shall provide the same experience as accommodations on the first floor. 27. Exterior walls and walls between onsite buildings shall comply with CBC 705 regarding fire rating and allowable openings. Fire/Life Safety 28. NFPA 13 fire sprinklers shall be required. 29. A fire alarm in compliance with NFPA 72 and Chapter 9 of 2022 CFC shall be required. Public Works Department 30. The parking lot layout shall comply with layout stamped and dated with the date of this approval. 31. No encroachments, including but not limited to, foundation of structure is permitted with the West Coast Highway or Prospect Street Right of Way. 32. A new sewer clean out shall be installed on all existing sewer laterals in accordance with City Standard 406. 33 INTENTIONALLY BLANK PAGE34 Attachment No. PC 2 Emergency Coastal Development Permit No. ECD2018-150 35 INTENTIONALLY BLANK PAGE36 COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION 100 Civic Center Drive, P.O. Box 1768, Newport Beach, CA 92658-8915 (949) 644-3200 www.newportbeachca.gov EMERGENCY COASTAL DEVELOPMENT PERMIT APPLICATION: Coastal Development Permit No. CD2018-050 (PA2018-115) APPLICANT: Duane Wengier LOCATION: 6302 West Coast Highway, Newport Beach, CA On July 30, 2018, the Community Development Director (Director) authorized an emergency coastal development permit (CDP), Coastal Development Permit No. CD2018- 050. The Director’s determination is final and based on the facts and findings, and subject to the conditions, listed below. WORK AUTHORIZED Demolition of four (4) motel units destroyed by fire. COASTAL ZONING DISTRICT/COASTAL LAND USE PLAN Zone: CV (Commercial Visitor-Serving) CLUP: CV (Commercial Visitor-Serving) I. NATURE OR CAUSE OF THE EMERGENCY On April 10, 2018, a structure fire occurred at the subject address. The structure was declared unsafe to enter for Units 1 through 5, and no occupancy posted for the remainder of the units. On April 10, 2018, a City of Newport Beach (City) building inspector posted an "Unsafe Do Not Enter" placard on the project. On May 3, 2018, the Chief Building Official declared that the subject structure was an attractive nuisance and unsafe structure pursuant to California Building Code (CBC) § [A] 116.1. The Chief Building Official required the property owner to obtain a permit to demolish the unsafe structure or submit plans to the City for the reconstruction, within 30 days. II. FINDINGS Pursuant to Section 21.52.025 of the certified Local Coastal Program (LCP) Implementation Plan, in the event of a verified emergency, the Community Development Director may authorize temporary permits to proceed with remedial measures. This authorization is based on the following facts. 37 Emergency CDP No. CD2018-050 Page 2 1. The authorized work is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, it involves the demolition and removal of a portion of a motel designed for an occupant load of 30 persons or less in an urbanized area. 2. An emergency exists that requires action more quickly than permitted by the procedures for regular permits administered pursuant to the provisions of Chapter 21.50 (Permit Application Filing and Processing) of the certified LCP Implementation Plan. The situation meets the definition of an emergency per Section 21.52.025 of the certified LCP Implementation Plan because the Chief Building Official declared the subject structure an attractive nuisance and unsafe structure pursuant to California Building Code (CBC) § [A] 116.1. 3. The work can and will be completed within thirty (30) days unless otherwise specified by the terms of the permit; 4. Public comment on the proposed emergency action has been reviewed, if time allows; 5. The work proposed is conditioned to be consistent with the requirements of the City’s certified LCP. The work is not subject to Section 21.48.025(C) (Protection of Low Cost Visitor Accommodations) of the certified LCP Implementation Plan. The work proposed does not meet the definition of impact to low cost overnight visitor accommodations (LCOVA) provided in Section 21.48.025(C)(4). The structures that will be demolished previously contained LCOVA units destroyed by fire. Therefore, the work proposed will not result in the decrease in the available supply of existing LCOVA units, as the units no longer exist due to a disaster. The proposed work is for demolition of existing structures destroyed by fire only and no new overnight visitor accommodations are proposed. 6. The work proposed under the emergency permit shall be the minimum amount necessary to address the emergency; and 7. The development is not located in an area in which the California Coastal Commission retains direct permit review authority. III. CONDITIONS OF APPROVAL 1. Only the work specifically described above and as more specifically described in the Community Development Department’s file for this emergency CDP application is authorized for the specific property listed above, subject to the conditions set forth below. Any additional work requires separate authorization from the Director. 2. Any spills of construction equipment fluids or other hazardous materials shall be immediately contained on-site and disposed of in an environmentally safe manner as soon as possible. 38 Emergency CDP No. CD2018-050 Page 3 3. Coastal Development Permit No. CD2018-050 shall expire 30 days from the date of authorization. The Director may extend an emergency CDP for an additional 30 days for good cause including, but not limited to, a CDP application on file with the Community Development Department. 4. The project is subject to all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 5. The applicant shall comply with all federal, state, and local laws. Material violation of any of those laws in connection with the use may be cause for revocation of this emergency CDP. 6. The applicant is required to obtain all applicable permits from the City and other agencies. On behalf of Seimone Jurjis, Community Development Director By: Patrick J. Alford, Planning Program Manager KB/pja Attachments: CD 1 Vicinity Map CD 2 Plans CD 3 2018-05-03 Declaration by the Chief Building Official CD 4 Photos 39 Attachment No. CD 1 Vicinity Map 40 Emergency CDP No. CD2018-050 Page 5 VICINITY MAP Coastal Development Permit No. CD2018-050 PA2018-115 6302 West Coast Highway Newport Beach, CA Project Site 41 Attachment No. CD 2 Plans 42 UPPACIFIC COAST HWYPROSPECT STALLEYNEWPORT SHORES DR864 SF TO BE DEMO(E) ELECTRICAL PANEL(E) DECK(E) LANDSCAPING (E) FLOWLINELEGEND(E) CONCRETE165.00' Property line85.00' Property line153.04' Property line73.54' Property line16.56' Property lineSITE TO BE FENCED AT A HEIGHT BETWEEN 72" - 84" CHAIN LINK OVERLAID ON THE EXTERIOR WITH AN OPAQUE VINYL FENCE.PEDESTRIAN CANOPY PROTECTIONScaleProject numberDateDrawn byChecked byARCHITECTUREDESIGNAll plans, designs, arrangements and ideas indicated or represented on this drawing sheet are "Instruments of Service" and property of MA Architects. As such, they are intended for use specifically on this project only. None of the plans, designs, arrangements or ideas of this drawing sheet/set shall be used, disclosed, altered, or reproduced by any person, firm, or corporation for any purpose whatsoever without written permission of MA Architects. As indicated7/29/2018 9:18:45 PMG0-01SITE PLAN$LB1708WEST COAST HWYIssue DateAuthorChecker6302 WEST COAST HWY,NEWPORT BEACH, CA 92663NTS1vicinity mapMA ARCHITECTS5608 E Peabody St. Long Beach, Ca 90808Project Manager:TEL: (626) 375-3073EMAIL: michael.studioma@gmail.comATN: Michael Song, ArchitectProject Architect: Michael SongE: michael.studioma@gmail.comPROJECT DIRECTORYARCHITECTSTRUCTURAL ENGINEEROWNERPROJECT DATAADDRESSASSESSOR'S PARCEL NUMBERLEGAL DESCRIPTIONBUILDING CODESTYPE OF CONSTRUCTIONOCCUPANCY GROUPZONINGNUMBER OF STORIESBUIDING HEIGHTSPRINKLED6302 WEST COAST HWY, NEWPORT BEACH, CA 92663045-084-09A TR SEAHORE COLONY TR BLK 3 LOT 4 SEASHORE COLONY TR BLK 3 LOTS 4, 5, 6 AND NE'LYCBC 2016CRC 2016CMC 2016CEC 2016CPC 2016CGBC 2016TYPE V-BCOMMERCIALR1-1113'-1"NOPROJECT DESCRIPTION/SCOPEDEMO OF 864 SF FROM MOTEL1. G.C. TO VERIFY ALL EXISTING DIMENSION AND CONDITIONS2. -LOTS SHALL BE GRADED TO DRAIN SURFACE WATE3R AWAY FROM THE FOUNDATION WALLS. THE GRADE SHALL FALL A MIN. OF 6" WITHIN THE FIRST 10' (5%). WHERE LOT LINES, WALLS, SLOPES OR OTHER PHYSICAL BARRIER PROHIBIT 6" OF FALL WITHIIN 10', DRAINS OR SWALES SHALL BE CONSTRUCTED TO ENSURE DRAINAGE AWAY FROM THE STRUCTURE [CRC R401.3].-IMPERVIOUS SURFACES WITHIN 10' OF THE BUILDING FOUNDATION SHALL BE SLOPED A MIN OF 2% AWAY FROM THE BUILDING [CRC R401.3 EXCEPTION]. LOT COVERAGE CALC.Name Area EXEMPTAREATOTAL(E) MOTEL (12 UNITS) 2802 SF 0 SF 2802 SF(E) SFR (2 BEDROOM) 1120 SF 0 SF 1120 SFGrand total: 2 3921 SFSITE PLAN NOTES:1. A PUBLIC WORKS DEPARTMENT ,ENCROACHMENT PERMIT INSPECTIONꞏIS. REQUIRED BEFORE THE BUILDING DEPARTMENT PERMIT FINAL CAN BE ISSUED. AT THE TIME OF PUBLIC WORKS DEPARTMENT INSPECTION, IF ANY OF THE EXISTING PUBLIC IMPROVEMENTS SURROUNDING THE SITE IS DAMAGED, NEW CONCRETE SIDEWALK, CURB AND GUTTER, AND ALLEY/STREET PAVEMENT WILL BE REPAIRED AND 100% PAID BY OWNER. SAID DETERMINATION AND THE EXTENT OF THE REPAIR WORK SHALL BE MADE AT THE DISCRETION OF THE PUBLIC WORKS INSPECTOR.2. AN CITY ENCROACHMENT AGREEMENT IS REQUIRED FOR ALL NONSTANDARD PRIVATE IMPROVEMENTS WITHIN THE PUBLIC RIGHT-OF-WAY3. AN APPROVED ENCROACHMENT PERMIT IS REQUIRED FOR ALL WORK ACTIVITIES WITHIN THE PUBLIC RIGHT-OF-WAY.4. THE DISCHARGE OF POLLUTANTS TO ANY STORM DRAINAGE SYSTEM IS PROHIBITED. NO SOLID WASTE, PETROLEUM BYPRODUCTS, SOIL PARTICULATE, CONSTRUCTION WASTE MATERIALS OR WASTEWATER GENERATED ON CONSTRUCTION SITES OR BY CONSTRUCTION ACTIVITIESSHALL BE PLACED, CONVEYED OR DISCHARGED INTO THE STREET, GUTTER OR STORM DRAIN SYSTEM.5. ALL WORK RELATED TO WASTEWATER IN THE PUBLIC RIGHT-OF-WAY SHALL-OF-WAY PERFORMED BY C-42 LICENSED SANITATION SEWER CONTRACTOR OR AN A LICENSED GENERAL ENGINEERING CONTRACTOR.7. PROVIDE AN ALARM FOR DOORS TO THE DWELLING THAT FORM A PART OF THE POOL ENCLOSURE. THE ALARM SHALL SOUND CONTINUOUSLY FOR A MIN. OF 30 SECONDS WHEN THE DOOR IS OPENED. IT SHALL AUTOMATICALLY RESET AND BE EQUIPPED WITH A MANUAL MEANS TO DEACTIVATE (FOR 15 SECS. MAX) FOR SINGLE OPENING. THE DEACTIVATION SWITCH SHALL BE AT LEAST 54" ABOVE THE FLOOR.8. AN APPROVED SEISMIC GAS SHUT OFF VALVE WILL BE INSTALLED ON THE FUEL GAS LINE ON THE DOWN STREAM SIDE OF THE UTILITY METER AND BE RIGIDLY CONNECTED TO THE EXTERIOR OF THE BUILDING OR STRUCTURE CONTAINING THE FUEL GAS PIPING.9. THE CONSTRUCTION SHALL NOT RESTRICT A FIVE-FOOT CLEAR AND UNOBSTRUCTED ACCESS TO ANY WATER OR POWER DISTRIBUTION FACILITIES (PEOPER POLES, PULL-BOXZES, TRANSFORMERS, VAULTS, PUMPS, VALVES, METERS, APPURTENANCES ETC.) OR TO THE LOCATION OF THE HOOK-UP. THE CONSTRUCTION SHALL NOT BE WITHIN TEN FEET OF ANY POWER LINES-WHETHER OR NOT THE LINES ARE LOCATED ON HE PROPERTY. FAILURE TO COMPLY MAY CAUSE CONSTRUCTION DELAYS AND/OR ADDITIONAL EXPENSES. 10. LOTS SHALL BE GRADED TO DRAIN SURFACE WATER AWAY FROM FOUNDATION WALLS WITH A MINIMUM FALL OF 6" WITHIN THE FIRST 10 FEET. 11. BUILDING SHALL HAVE APPROVED ADDRESS NUMBERS, BUILDING NUMBERS OR APPROVED BUILDING IDENTIFICATION PLACED IN A POSITION THAT IS PLAINLY LEGIBLE AND VISIBLE FROM THE STREET OR ROAD FRONTING THE PROPERTY. 12. PROTECTION OF WOOD AND WOOD BASED PRODUCTS FROM DECAY SHALL BE PROVIDED IN THE LOCATIONS SPECIFIED PER SECTION R317.1 Y THE USE OF NATURALLY DURABLE WOOD OR WOOD THAT IS PRESERVATIVE-TREATED IN ACCORDANCE WITH AWPA U1 FOR THE SPECIES, PRODUCTS , PRESERVATIVE AND END USE. PRESERVATIVES SHALL BE LISTED IN SECTION 4 OF AWPA U1. 13. ALL DEBRIS SHALL BE WET AT THE TIME OF HANDLING TO PREVENT DUST14. SEWER LINE SHALL BE CAPPED15. ALL BASEMENT FILLS SHALL BE CLEAN AND UNIFORM16. STREETS AND SIDEWALKS ARE TO REMAIN CLEAN AND FREE OF ANY OBSTRUCTIONS17. EROSION CONTROL DEVICES SHALL BE AVAILABLE ON-SITE BETWEEN OCTOBER 15 AND MAY 15.18. BETWEEN OCTOBER 15 AND MAY 15, EROSION CONTROL MEASURES SHALL BE IN PLACE AT THE END OF EACH WORKING DAY WHENEVER THE FIVE-DAY PROBABILITY OF RAIN EXCEEDS 30 PERCENT. DURING THE REMAINDER OF THE YEAR, THEY SHALL BE IN PLACE AT THE END OF THE WORKING DAY, WHENEVER THE DAILY RAINFALL PROBABILITY EXCEEDS 50 PERCENT.19. TEMPORARY DESILTING BASINS, WHEN REQUIRED, SHALL BE INSTALLED AND MAINTAINED FOR THE DURATION OF THE PROJECT.NOTESDRAWING SHEET INDEX ALL PARAMETERSSheetNumberSheet NameGENERAL NOTESG0-01 SITE PLANG0-02 GENERAL NOTESG0-05 GREEN BUILDINGARCHITECTURALA1-01 EXISTING/ DEMO PLANNo. Description Date3/32" = 1'-0"2Site PlanMAX LOT COVERAGELOT SIZE MAX ALLOWED MAX S.F. ALLOWED8900 SF 0.5 4450 SF3,921 SF (E) LOT COVERAGE 44.05% WENGLER, DUANE A, WENGLER, JEANIEPHONE: (949) 885-671243 THESE ARE GENERAL NOTES AND SOME ITEMS MAYNOT APPLY TO THE SPECIFIC SCOPE. G.C. SHALL INTHE BEST OF JUDGEMENT, APPLY ITEMS THAT ARERELEVANT TO THE SCOPE DISPLAYED IN THEDRAWINGS.GENERAL NOTES - PART A1. WHERE CONCEALED DUCT RUNS IN SOFFITS, JOIST BAYS, VERTICAL CHASES, ORSHAFTS ARE OBSTRUCTED TO LESS THAN THE MINIMUM REQUIRED TO ALLOW THEPASSAGE OF INDICATED ROUND DUCT, PROVIDE RECTANGULAR DUCTWORK OFEQUIVALENT SIZE TO ALLOW PASSAGE OF THE DUCT RUN PAST THE OBSTRUCTION.2. AN APPROVED SEISMIC GAS SHUTOFF VALVE SHALL BE INSTALLED ON THE FUELGAS LINE ON THE DOWN STREAM SIDE OF THE UTILITY METER AND BE RIGIDLYCONNECTED TO THE EXTERIOR OF THE BUILDING OR STRUCTURE CONTAINING THEFUEL GAS PIPING. (PER ORDINANCE 171,874 FOR WORK OVER $10,000)3. WORK SHALL COMPLY WITH ALL LAWS, RULES AND REGULATIONS AS REQUIRED BYTHE STATE OF CALIFORNIA, THE COUNTY OF LOS ANGELES, THE CITY OF LOS ANGELES,AND ANY AND ALL OTHER GOVERNMENTAL AGENCIES HAVING JURISDICTION OVER THEWORK.4. WORK SHALL COMPLY WITH THE MODEL CODES AS ADOPTED BY THE CITY OF LOSANGELES (CITY OF LOS ANGELES BUILDING CODE, CALIFORNIA BUILDING CODE,INTERNATIONAL BUILDING CODE, CALIFORNIA RESIDENTIAL CODE, CALIFORNIA GREENBUILDING STANDARDS, UNIFORM MECHANICAL CODE, UNIFORM PLUMBING CODE,NATIONAL ELECTRICAL CODE, ETC.) LOCALLY IN FORCE AT THE TIME OF BUILDINGPERMIT ISSUANCE, INCLUDING ALL REVISIONS AND AMENDMENTS ADOPTED BY THEGOVERNING JURISDICTION(S).WHERE REFERENCE IS MADE TO MODEL CODE SECTIONS AND PARTS, THECONTRACTOR SHALL BECOME FAMILIAR WITH THE MODEL CODE SECTIONS AND PARTSCITED PRIOR TO INSTALLATION OF ANY AFFECTED WORK.5. FULLY REVIEW THE ENTIRE SET OF CONSTRUCTION DOCUMENTS PRIOR TOCONSTRUCTION. THE CONSTRUCTION DOCUMENTS MAY INCLUDE THE FOLLOWING:CIVIL DRAWINGS, DESIGN DRAWINGS, STRUCTURAL DRAWINGS, MECHANICALDRAWINGSPLUMBING DRAWINGS, ELECTRICAL DRAWINGS, SECURITY SYSTEM DRAWINGS ANDSPECIFICATIONS (DEFERRED SUBMITTAL), FIRE PROTECTION SHOP DRAWINGS ANDSPECIFICATIONS (DEFERRED SUBMITTAL)6. WHERE CONFLICT OCCURS BETWEEN THE DRAWINGS OF ANY OF THE DESIGNDISCIPLINES INVOLVED, THE MOST RESTRICTIVE INTERPRETATION WILL GOVERN THEWORK. DESIGNER AND/OR OWNER WILL RESOLVE DESIGN CONFLICTS BASED ON THEDESIGN INTENT.7. COORDINATE ALL CHANGES AND ADJUSTMENTS TO THE WORK WHICH VARY FROMTHE CONSTRUCTION DOCUMENTS WITH DESIGNER AND/OR PRIOR TO PUTTING WORK INPLACE.8. ALL PRODUCT AND COMPONENT BRANDS AND TRADEMARKS NAMED ARE USED TOSET THE LEVEL OF QUALITY REQUIRED FOR THE WORK AND ARE UNDERSTOOD TO BE"OR EQUAL" REFERENCES SUBJECT TO THE FORMAL APPROVAL PROCESS ASDESCRIBED AND SET FORTH IN THE SPECIFICATIONS UNLESS NOTED OTHERWISE.9. DRAWING SYMBOL REFERENCES ARE TYPICAL AND APPLY EQUALLY TO ALL SIMILARCONDITIONS UNLESS OTHERWISE NOTED OR OTHERWISE REFERENCED IN THE DESIGNDRAWINGS. SEE THE SYMBOLS' LEGEND ON EACH SHEET FOR DEFINITION OF ALLSYMBOLS USED IN THE DRAWINGS.10. DETAIL REFERENCES ARE TYPICAL AND APPLY EQUALLY TO OTHER SIMILARCONDITIONS UNLESS OTHERWISE NOTED OR OTHERWISE REFERENCED IN THE DESIGNDRAWINGS. ALL DETAILS ARE TYPICAL UNLESS OTHERWISE NOTED OR OTHERWISEREFERENCED IN THE DRAWINGS.DO NOT DISREGARD UNREFERENCED OR MISREFERENCED DETAILS. SUCH DETAILSSHALL BE BROUGHT TO THE ATTENTION OF THE DESIGNER AND/OR OWNER FORINTERPRETATION OF APPLICABILITY & USAGE.11. DO NOT SCALE DRAWINGS.12. ALL DIMENSIONS SHALL BE VERIFIED IN FIELD. DISCREPANCIES SHALL BEBROUGHT TO THE ATTENTION OF THE DESIGNER AND/OR OWNER PRIOR TO PUTTINGANY AFFECTED WORK IN PLACE.13. WOOD FRAMED BUILDINGS: ALL EXTERIOR WALL DIMENSIONS ARE TO FACE OFWOOD (FRAMING OR PLYWOOD SHEATHING WHERE OCCURS) UNLESS NOTEDOTHERWISE.ALL INTERIOR WALL DIMENSIONS ARE TO FACE OF FRAMING UNLESS NOTEDOTHERWISE. DIMENSIONS NOTED OTHERWISE MAY BE NOTED AS ONE OF THEFOLLOWING:C.L. CENTERLINEF.O.C. FACE OF CONCRETEF.O.F. FACE OF FINISHF.O.M. FACE OF MASONRYCLR. FACE OF FINISH AND/OR OBSTRUCTION14. ALL FINISHED GRADE AREAS AROUND BUILDINGS SHALL SLOPE AWAY FROMBUILDINGS AT 2% MINIMUM.15. PLUMBING FIXTURES ARE REQUIRED TO BE CONNECTED TO A SANITARY SEWEROR AN APPROVED SEWAGE DISPOSAL SYSTEM.16. KITCHEN SINKS, LAVATORIES, BATHTUBS, SHOWERS, BIDETS, LAUNDRY TUBS &WASHING MACHINE OUTLETS SHALL BE PROVIDED WITH HOT & COLD WATER &CONNECTED TO AN APPROVED WATER SUPPLY.17. BATHTUB & SHOWER FLOORS, WALLS ABOVE THE BATHTUBS WITH A SHOWERHEAD& SHOWERS SHALL BE FINISHED WITH A NONABSORBENT SURFACE. SUCH WALLSURFACE SHALL EXTEND TO A HEIGHT OF NOT LESS THAN 72" ABOVE THE FLOOR.18. PROVIDE A MINIMUM 70" HIGH APPROVED NON-ABSORBANT, SHATTER-RESISTANTMATERIAL FOR SHOWER ENCLOSURES.19. VERTICAL DIMENSIONS ARE FROM TOP OF CONCRETE SLAB TO TOP OF PLATE ANDFROM TOP OF PLYWOOD FLOOR SHEATHING TO TOP OF PLATE UNLESS OTHERWISENOTED OR CALLED OUT IN THE DRAWINGS.THE TERM "FINISH FLOOR" EXCLUDES ANY FLOORING MATERIALS THAT MAY BESCHEDULED AND MEANS THE TOP OF THE FINISHED CONSTRUCTION THAT IS TORECEIVE THE FLOORING MATERIALS SUCH AS TOP OF LEVEL CONCRETE SLAB OR TOPOF LEVEL LIGHT WEIGHT FLOOR TOPPING.20. VERIFY ALL BUILT-IN EQUIPMENT SIZES AND REQUIREMENTS PRIOR TO LAYOUTAND CONSTRUCTION. BUILT-IN EQUIPMENT SHALL FIT TIGHTLY AS POSSIBLE WITHINMANUFACTURER'S REQUIRED TOLERANCES TO FINISHED OPENING.21. HANDRAIL ASSEMBLIES AND GUARDS SHALL BE ABLE TO RESIST A SINGLECONCENTRATED LOAD OF 200 LBS. APPLIED IN ANY DIRECTION AT ANY POINT ALONGTHE TOP, AND HAVE ATTACHMENT DEVICES AND SUPPORTING STRUCTURE TOTRANSFER THIS LOADING TO APPROPRIATE STRUCTURAL ELEMENTS OF THE BUILDINGPER 1607.7.1 AND 1607.7.1.1.22. ALL CONCRETE SURFACES SHALL HAVE A LIGHT BROOM FINISHED, NON-SLIPSURFACE UNLESS NOTED OTHERWISE.23. PROVIDE GALVANIC ISOLATION BETWEEN DISSIMILAR METALS.24. ALL PIPING IN CONNECTION WITH A PLUMBING SYSTEM SHALL BE SO INSTALLEDTHAT PIPING OR CONNECTIONS WILL NOT BE SUBJECT TO UNDUE STRAINS ORSTRESSES, AND PROVISIONS SHALL BE MADE FOR EXPANSION, CONTRACTION, ANDSTRUCTURAL SETTLEMENT. NO PIPING SHALL BE DIRECTLY EMBEDDED IN CONCRETEOR MASONRY. NO STRUCTURAL MEMBER SHALL BE SERIOUSLY WEAKENED ORIMPAIRED BY CUTTING, NOTCHING OR OTHERWISE.25. AT LOCATIONS TO RECEIVE BUILT-IN CASEWORK, FIELD VERIFY ALL CLEAROPENINGS OF CONSTRUCTION AND ADDRESS IN SHOP DRAWINGS BEFOREFABRICATION OF CASEWORK.26. VERIFY ALL EQUIPMENT SIZES BEFORE FABRICATION OF CASEWORK.RESIDENTIAL-TYPE AND BUILT-IN KITCHEN EQUIPMENT/APPLIANCES (REFRIGERATOR,RANGE, MICROWAVE, ETC.) AND ALL OTHER BUILT-IN TYPE EQUIPMENT SHALL FITTIGHTLY AS POSSIBLE WITHIN EQUIPMENT/ APPLIANCE MANUFACTURER'SREQUIREMENTS TO CASEWORK OPENINGS.27. CASEWORK SHALL BE PROVIDED WITH REQUIRED HOLES, AND ACCESS PANELSFOR ELECTRICAL CABLES, PIPES, AND LIKE PENETRATING ITEMS.28. IN NEW CONSTRUCTION CARBON MONOXIDE/SMOKE DETECTORS SHALL RECEIVETHEIR PRIMARY POWER SOURCE FROM THE BUILDING WIRING & SHALL BE EQUIPPEDWITH BATTERY BACK UP & LOW BATTERY SIGNAL. SMOKE ALARMS SHALL BE LOCATEDIN EACH SLEEPING ROOM, HALLWAY OR AREA GIVING ACCESS TO A SLEEPING ROOM,AND ON EACH STORY AND BASEMENT FOR DWELLINGS WITH MORE THAN ONE STORY.DETECTORS SHALL BE INTERCONNECTED SO THAT ACTUATION OF ONE ALARM WILLACTIVATE ALL THE ALARMS WITHIN THE INDIVIDUAL DWELLING UNIT.29. STORAGE TYPE WATER HEATERS SHALL BE STRAPPED TO THE WALL (INTO 2xBLOCKING), PER CODE.30. BUILDING SHALL HAVE APPROVED ADDRESS NUMBERS, BUILDING NUMBERS ORAPPROVED BUILDING IDENTIFICATION PLACED IN A POSITION THAT IS PLAINLY LEGIBLE& VISIBLE FROM THE STREET OR ROAD FRONTING THE PROPERTY.31. DUCTS PENETRATING THE WALLS OR CEILINGS SEPARATING THE DWELLING FROMTHE GARAGE SHALL BE CONSTRUCTED OF A MINIMUM No.26 GAUGE SHEET STEEL OROTHER APPROVED MATERIAL & THERE SHALL BE NO OPENINGS FROM THE DUCT INTOTHE GARAGE.32. OTHER PENETRATIONS OF GARAGE/DWELLING CEILINGS & WALLS ARE TO BEPROTECTED AS REQUIRED BY SECTION R302.11, ITEM 4.33. HEATER SHALL BE CAPABLE OF MAINTAINING A MINIMUM ROOM TEMPERATURE OF68°F AT A POINT 3' ABOVE THE FLOOR 7 2' FROM EXTERIOR WALLS IN ALL HABITABLEROOMS AT THE DESIGN TEMPERATURE.ENERGY AND WATER CONSERVATION1. CAULK AND SEAL AROUND ALL PLUMBING AND ELECTRICAL PENETRATIONS INTOTHE BUILDING ENVELOPE.2. CAULK AND SEAL AROUND ALL WINDOW AND DOOR FRAMES, BETWEEN WALL SOLEPLATES AND FLOORS, AND BETWEEN EXTERIOR WALL PANELS. SEE TYPICAL EXTERIORWALL MEASURES.3. ALL INSULATION MATERIALS SHALL BE CERTIFIED BY THE MANUFACTURER ASCOMPLYING WITH THE CALIFORNIA QUALITY STANDARDS FOR INSULATING MATERIAL.4. DOORS AND WINDOWS BETWEEN CONDITIONED SPACE AND OUTSIDE SPACE ORBETWEEN CONDITIONED SPACE & UNCONDITIONED SPACE SHALL BE FULLYWEATHER-STRIPPED.5. MANUFACTURED DOORS AND WINDOWS SHALL BE CERTIFIED AND LABELED INCOMPLIANCE WITH THE APPROPRIATE INFILTRATION STANDARDS. ALL EXTERIOROPENINGS SHALL BE PROPERLY WEATHERSTRIPPED, CERTIFIED, AND LABELED.6. DUCTS SHALL BE CONSTRUCTED, INSTALLED, AND INSULATED PER THEREQUIREMENTS OF THE U.M.C. ALL JOINTS OF THE DUCT SYSTEM SHALL BE TIGHTLYSEALED WITH MASTIC OR TAPE SUITABLE FOR THE PURPOSE.7. ALL SPACE CONDITIONING EQUIPMENT SHALL BE C.E.C. CERTIFIED.8. ALL WATER HEATING EQUIPMENT, SHOWER HEADS, FAUCETS, AND PLUMBINGFIXTURES SHALL BE C.E.C. CERTIFIED UNLESS OTHERWISE NOTED OR APPROVED.SHOWER HEADS SHALL BE LOW FLOW TYPE.9. GENERAL LIGHTING IN KITCHENS AND BATHROOMS SHALL HAVE A MINIMUM OF 40LUMENS/WATT EFFICIENCY (FLUORESCENT LIGHTS).10. PROVIDE ULTRA FLUSH WATER CLOSETS FOR ALL NEW CONSTRUCTION. EXISTINGSHOWER HEADS AND TOILETS MUST BE ADAPTED FOR LOW WATER CONSUMPTION.SCHEDULE IS IMPACTED BY OWNER RELATED CHANGES OR REQUESTS.GENERAL NOTES - PART B1. THE GENERAL CONTRACTOR IS RESPONSIBLE FOR CHECKING CONTRACT DOCUMENTS, FIELD CONDITIONS AND DIMENSIONS FOR ACCURACY AND CONFIRMING WORK IS BUILDABLE AS SHOWN BEFORE PROCEEDING WITH CONSTRUCTION. IF THERE ARE ANY QUESTIONS REGARDING THESE OR OTHER COORDINATION QUESTIONS, THE GENERAL CONTRACTOR IS RESPONSIBLE FOR OBTAINING A CLARIFICATION FROM THE ARCHITECT BEFORE PROCEEDING WITH WORK OR RELATED WORK IN QUESTION FURTHERMORE, FOR EXISTING CONDITIONS ON REMODEL/ADDITIONS, THE ARCHITECT CANNOT REALISTICALLY VERIFY ALL EXISTING CONDITIONS ACCURATELY. AS SUCH THE PREPARATION OF CONSTRUCTION DOCUMENTS ARE BASED ON TYPE V WOOD FRAME CONSTRUCTION FOR CONVENTIONAL FRAMING AND WHERE THE GENERAL CONTRACTOR MAY DISCOVER SOME DISCREPANCIES IN THE ARCHTIECT AND ENGINEERS DESIGN WITH RESPECT TO THE NEW FOUND EXISTING CONDITIONS ON SITE. THESE DISCPREPANCIES ARE EXPECTED AND A NATURAL PROCESS BECAUSE ARCHITECTURE SERVICES PRECEDES DEMOLITION OF THE PROJECT. GENERAL CONTRACTOR SHALL NOTIFY THE ARCHITECT AND/OR ENGINEER IF ANY OF THE DESIGN IS IN CONFLICT WITH THE EXISTING CONDITIONS. FOR REMODELS/ADDITIONS, IN CASES WHERE A LAND SURVEY WAS NOT PERFORMED EITHER BECAUSE IT WAS NOT REQUIRED AND/OR CLIENT HAS NOT ELECTED TO FURNISH A SURVEY, ARCHITECT SHALL BASE SITE PROPERTY MEASUREMENTS FROM PERCEIVED PROPERTY LINES REPRESENTED BY FENCES, WALLS AND PLANTINGS. EVERY EFFORT WILL BE MADE TO PROVIDE AN ACCURATE MEASUREMENT HOWEVER SUCH MEASUREMENT CANNOT GUARANTEE ACCURACY DURING CONSTRUCTION. AS SUCH, IT IS UNDERSTOOD BY ALL PARTIES, OWNER, ARCHITECT, AND GENERAL CONTRACTOR, THAT DISCREPANCIES ARE POSSIBLE AND AT NO FAULT TO ANY PARTY. CLIENT MAY INCUR A MINOR CHANGE ORDER DUE TO THIS EVENT DUE TO ADJUSTMENTS IN THE DESIGN AFTER PERMIT.2. GENERAL CONTRACTOR SHALL INFORM ARCHITECT OF CONTRACTOR SHALL PATCH AND REPAIR SURFACES TO MATCH AND FINISHES AT PLASTER OR GYPSUM BOARD. THE GENERAL THIS INCLUDES BUT IS NOT LIMITED TO, UNEVEN SURFACES CONSTRUCTION WHICH INTERFACES WITH NEW CONSTRUCTION. CORRECTING ANY DEFECTS FOUND IN EXISTING BASE BUILDING TO MATCH ADJACENT, ADJOINING SURFACES.3. GENERAL CONTRACTOR SHALL INFORM ARCHITECT OF ANY CONFLICTS PRIOR TO CONSTRUCTION THAT EXIST IN LOCATIONS OF ANY AND ALL MECHANICAL, TELEPHONE, ELECTRICAL, LIGHTING, PLUMBING AND SPRINKLER EQUIPMENT (TO INCLUDE ALL PIPING, DUCT WORK AND CONDUITS) THAT ALL REQUIRED CLEARANCE FOR INSTALLATION AND MAINTENANCE OF ABOVE EQUIPMENT ARE PROVIDED.4. GENERAL CONTRACTOR SHALL BE RESPONSIBLE FOR PROVIDING ALL WORK AND MATERIALS IN ACCORDANCE WITH ALL LOCAL REGULATORY AGENCIES, APPLICABLE BUILDING CODES AND REQUIREMENTS.5. THE GENERAL CONTRACTOR AND SUBCONTRACTORS SHALL PURCHASE AND MAINTAIN CERTIFICATIONS OF INSURANCE WITH THE RESPECT OF WORKMAN'S COMPENSATION, PUBLIC LIABILITY AND PROPERTY DAMAGE FOR THE LIMITS AS REQUIRED BY LAW. THE GENERAL CONTRACTOR SHALL BE RESPONSIBLE FOR INITIATING, MAINTAINING, AND SUPERVISING ALL SAFETY PRECAUTIONS IN CONNECTION WITH THE WORK.6. ALL WORK NOT SPECIFICALLY COVERED IN THE CONSTRUCTION DOCUMENTS SHALL BE FURNISHED AND INSTALLED WITH IN ACCORDANCE WITH BUILDING STANDARD MATERIALS AND DETAILS.7. UPON SUBMITTAL OF CONSTRUCTION COSTS, THE GENERAL CONTRACTOR SHALL ALSO SUBMIT A SCHEDULE OF VALUES AND A SPECIFIC CONSTRUCTION SCHEDULE INDICATING THE REQUIRED CONSTRUCTION TIME FOR ALL SUBCONTRACTORS AND GENERAL CONTRACTORS WORK.8. THE GENERAL CONTRACTOR IS RESPONSIBLE FOR ANY AND ALL OVERTIME COSTS EXCEPT WHEN THE APPROVED CONSTRUCTION SCHEDULE IS IMPACTED BY OWNER RELATED CHANGES OR REQUESTS.9. GENERAL CONTRACTOR SHALL PROVIDE PROTECTIVE COVERINGS FOR CARPET, FURNISHINGS AND EXISTING FINISHES IN AREAS OF DEMOLITION AND CONSTRUCTION AND SHALL BE RESPONSIBLE FOR THE REPAIR OF ANY DAMAGE CAUSED BY THE WORK OF THE GENERAL CONTRACTOR AND ANY SUBCONTRACTOR.10. NOT USED11. THE GENERAL CONTRACTOR SHALL BE RESPONSIBLE FOR SECURITY OF PROJECT AND SHALL BE RESPONSIBLE FOR OF ALL WORKERS ON THE PROJECT.12. THE GENERAL CONTRACTOR IS RESPONSIBLE FOR OBTAINING ALL REQUIRED PERMITS (OTHER THAN STRUCTURAL) PRIOR TO COMMENCEMENT OF WORK, THE REQUESTING AND COORDINATION OF BUILDING DEPARTMENT INSPECTIONS AND APPROVALS IN ALL FIELDS OF HIS WORK, AND THE OBTAINING OF THE FINAL CERTIFICATE OF OCCUPANCY.13. GENERAL CONTRACTOR SHALL HAVE ON-SITE, THE APPROVED CONSTRUCTION DRAWINGS AND BUILDING PERMIT.14. THE GENERAL CONTRACTOR SHALL PROVIDE ALL SUPERVISION, ASSISSTANCE AND COORDINATION OF VARIOUS TRADES.15. MATERIALS SHALL BE JOINED TO UNIFORM, ACCURATE FITS SO THE MEET WITH NEAT, STRAIGHT LINES, FREE OF SMEARS, OVERLAPS AND IMPERFECTIONS. INSTALL EXPOSED MATERIALS APPROPRIATELY LEVEL, PLUM AND AT ACCURATE RIGHT ANGLES OR FLUSH WITH ADJOINING MATERIALS. WORK OF EACH TRADE SHALL MEET OR EXCEED ALL NATIONAL STANDARDS PUBLISHED BY THAT TRADE EXCEPT WHERE THE CONTRACT DOCUMENTS ARE MORE STRINGENT. IN SUCH CASES, WORK SHALL MEET OR EXCEED THE STANDARDS ESTABLISHED BY THE CONTRACT DOCUMENTS.16. GENERAL CONTRACTOR SHALL COORDINATE ANY OVERTIME WITH BUILDING MANAGEMENT PERSONNEL (I.E.: DEMOLITION, CUTTING AND RUBBISH REMOVAL WITH BUILDING MANAGEMENT PERSONNEL).17. THE CONTRACTOR SHALL NOTE THAT THERE SHALL NOT BE SUBSTITUTIONS FOR ANY MATERIAL WHERE SPECIFIC MANUFACTURERS ARE SPECIFIED. WHERE APPROVED EQUAL IS USED, IT SHALL BE BY JUDGEMENT AND APPROVAL OF THE ARCHITECT AND NOTIFICATION SHALL BE MADE PRIOR TO INSTALLATION.18. IT SHALL BE THE RESPONSIBILITY OF THE GENERAL CONTRACTOR TO DISTRIBUTE ADEQUATE COPIES OF ALL DRAWINGS TO ALL TRADES FALLING UNDER THEIR RESPONSIBILITY AT ALL TIMES DURING THE PROGRESS OF THE JOB, INCLUDING REVISIONS.19. UPON COMPLETION OF THE JOB, THE GENERAL CONTRACTOR SHALL SUBMIT CERTIFICATES OF INSPECTION OF SATISFACTORY COMPLETION.20. THE CONTRACTOR SHALL, AT ALL TIMES, KEEP PREMISES FREE FROM ACCUMULATION OF DEBRIS CAUSED BY HIS OPERATIONS.21. WHERE WORK OR EQUIPMENT IS INDICATED N.I.C., SUCH WORK AND/OR EQUIPMENT SHALL BE PROVIDED BY OTHERS. CONTRACTOR SHALL COORDINATE AND COOPERATE TO EFFECT SUCH INSTALLATION.22. DISCREPANCIES FOUND BETWEEN NOTES AND DRAWINGS SHALL BE BROUGHT TO THE ATTENTION OF THE ARCHITECT & THE OWNER AT THE TIME OF PRICING & PRIOR TO CONSTRUCTION PROCEEDING.23. GENERAL CONTRACTOR TO VERIFY SIZES OF BUILDING AND ACCESS OPENINGS BEFORE PROCEEDING WITH WORK.24. UPON COMPLETION OF THE JOB, GENERAL CONTRACTOR SHALL CLEAN ENTIRE AREA, INCLUDING GLASS, CARPET AND ALL OTHER FINISHED SURFACES IN A MANNER ACCEPTABLE TO OWNER AND TENANT.25. GENERAL CONTRACTOR IS RESPONSIBLE FOR DISPOSING OF OFF SITE PACKAGING CARTONS OR CONTAINERS, TRASH AND DEBRIS IN A SAFE, ACCEPTABLE MANNER, AND AT NO COST OR INCONVENIENCE TO THE OTHER PARTIES.ScaleProject numberDateDrawn byChecked byARCHITECTUREDESIGN5608 E PEABODY STLONG BEACH CA.626-375-3073michael.ezplans@gmail.comAll plans, designs, arrangements and ideas indicated or represented on this drawing sheet are "Instruments of Service" and property of EZ Plans. As such, they are intended for use specifically on this project only. None of the plans, designs, arrangements or ideas of this drawing sheet/set shall be used, disclosed, altered, or reproduced by any person, firm, or corporation for any purpose whatsoever without written permission of EZ Plans. 7/29/2018 9:18:46 PMG0-02GENERALNOTES$LB1708WEST COAST HWYIssue DateD.L. / J.H.6302 WEST COAST HWY,NEWPORT BEACH, CA 92663No. Description Date44 ScaleProject numberDateDrawn byChecked byARCHITECTUREDESIGN5608 E PEABODY STLONG BEACH CA.626-375-3073michael.ezplans@gmail.comAll plans, designs, arrangements and ideas indicated or represented on this drawing sheet are "Instruments of Service" and property of EZ Plans. As such, they are intended for use specifically on this project only. None of the plans, designs, arrangements or ideas of this drawing sheet/set shall be used, disclosed, altered, or reproduced by any person, firm, or corporation for any purpose whatsoever without written permission of EZ Plans. 7/29/2018 9:18:50 PMG0-05GREENBUILDING$LB1708WEST COAST HWYIssue DateD.L. / J.H.6302 WEST COAST HWY,NEWPORT BEACH, CA 926632017 CALIFORNIA GREEN BUILDING STANDARDS CODE RESIDENTIAL MANDATORY MEASURESNo. Description Date45 WasherWasherDryerUPNEW WALLEXISTING WALLDEMO WALLUNIT01UNIT02UNIT03UNIT04UNIT05UNIT06UNIT07UNIT08UNIT09UNIT10UNIT11UNIT12STORAGE14STORAGE13LIVING ROOM15LAUNDRY16BEDROOM18KITCHEN17BATH19BEDROOM21OFFICE20LOBBY22864 SF TO BE DEMOLEGENDMOTEL TO BE DEMOScaleProject numberDateDrawn byChecked byARCHITECTUREDESIGNAll plans, designs, arrangements and ideas indicated or represented on this drawing sheet are "Instruments of Service" and property of MA Architects. As such, they are intended for use specifically on this project only. None of the plans, designs, arrangements or ideas of this drawing sheet/set shall be used, disclosed, altered, or reproduced by any person, firm, or corporation for any purpose whatsoever without written permission of MA Architects. 1/4" = 1'-0"7/29/2018 9:18:42 PMA1-01EXISTING/DEMO PLAN$LB1708WEST COAST HWYIssue DateJG6302 WEST COAST HWY,NEWPORT BEACH, CA 92663WALL TYPE LEGENDNo. Description DateDEMO PLAN11/4" = 1'-0"46 Attachment No. CD 3 2018-05-03 Declaration by the Chief Building Official 47 48 Emergency CDP No. CD2018-050 Page 8 Attachment No. CD 4 Photos 49 Emergency CDP No. CD2018-050 Page 9 50 Attachment No. PC 3 Zoning Administrator Resolution No. ZA2023-060 51 INTENTIONALLY BLANK PAGE52 10-18-2021 RESOLUTION NO. ZA2023-060 A RESOLUTION OF THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A COASTAL DEVELOPMENT PERMIT TO ALLOW THE ADDITION OF A PARTIAL SECOND STORY AND THE REHABILITATION OF A 12-ROOM MOTEL LOCATED AT 6302 WEST COAST HIGHWAY (PA2023-0027) THE ZONING ADMINISTRATOR OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Eric Aust, Architect (Applicant), with respect to property located at 6302 West Coast Highway and legally described as a portion of Lots 3, 4, 5, and 6, Block 3, Seashore Colony Tract, requesting approval of a coastal development permit (CDP). 2. The applicant proposes to rehabilitate a 12-room motel that was significantly damaged by fire in 2018 and partially demolished pursuant to Emergency Coastal Development Permit No. ECD2018-150. The project involves replacing the demolished portions of the structure, repairing the uninhabitable portions of the structure, the addition of a partial second story at the front of the property, construction of a commercial trash enclosure, and site improvements. Those improvements include but are not limited to, hardscaping, drainage, and restriping of the existing parking lot. Approximately 306 square feet will be added to the total gross floor area of the structure as part of the rehabilitation. The motel will maintain a relatively similar footprint to the damaged structure and will maintain the same number of guest rooms. 3. The subject property is categorized as Visitor Serving Commercial (CV) by the General Plan Land Use Element and is located within the Commercial Visitor-Serving (CV) Zoning District. 4. The subject property is located within the coastal zone, but outside of the California Coastal Commission (CCC) Appeal Area. The Coastal Commission does not have jurisdiction over the project because it is outside the Appeal Area and because prior development was not subject to a coastal development permit issued by the CCC. The Coastal Land Use Plan category is Visitor Serving Commercial (0.0 – 0.75 FAR) (CV-A) and it is located within the Commercial Visitor-Serving (CV) Coastal Zone District. 5. The motel previously operated without a conditional use permit (CUP) and prior to the current NBMC use regulations requiring motels obtain a CUP to operate within the CV zone. Pursuant to Section 20.38.030 (Determination of Nonconformity) of the NBMC, Pine Knot Motel is considered a nonconforming use due to its lack of a CUP. Section 20.38.080 (Repair of Damaged or Partially Destroyed Nonconformities) of the NBMC allows for a nonconforming use that was involuntarily damaged or destroyed to be reestablished by right if restoration work is commenced within twelve (12) months of the date of damage, unless otherwise allowed by the Director, is diligently pursued to completion, and is not 53 Zoning Administrator Resolution No. ZA2023-060 Page 2 of 11 10-05-2021 subject to an abatement period. The previous owners diligently pursued a viable rehabilitation plan after the fire and through the COVID-19 pandemic and ultimately sold the property. Current ownership is now seeking CDP approval to implement the rehabilitation plan. The property is not subject to an abatement period. As the project meets the requirements to reestablish the nonconforming use, no CUP is required pursuant to NBMC Section 20.38.080. 6. Section 20.38.050 (Nonconforming Uses) restricts the ways in which a nonconforming use may be changed, expanded, increased, or intensified. It provides that an intensification is allowed subject to approval of a CUP. An increase in floor area, lot area, or in occupancy load are provided as examples of what constitutes an intensification. Section 20.12.020 (Rules of Interpretation) however clarifies that the headings of the chapters, sections, and subsections of this Zoning Code, together with the accompanying examples and explanatory notes, are inserted as a matter of convenience and are not intended to define, limit, or enlarge the scope or meaning of this Zoning Code or its provisions. Given the parking requirements for motels is set by number of guest rooms rather than gross floor area, the appropriate measure of intensification is the required parking for the project. The nominal addition of 306 square feet of gross floor area helps modernize and enhance usability of the motel, thereby supporting feasibility of the rehabilitation work. The addition is not an intensification of use, and no CUP is required pursuant to NBMC Section 20.38.050 (Nonconforming Uses). 7. A public hearing was held on September 28, 2023, online via Zoom. A notice of time, place and purpose of the hearing was given in accordance with the Newport Beach Municipal Code (NBMC). Evidence, both written and oral, was presented to, and considered by, the Zoning Administrator at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. This project is categorically exempt pursuant to Title 14 of the California Code of Regulations Section 15302, Division 6, Chapter 3, Guidelines for Implementation of the California Environmental Quality Act (CEQA) under Class 2 (Replacement or Reconstruction), because it has no potential to have a significant effect on the environment. 2. Class 2 exempts the replacement or reconstruction of existing structures where the new structure will be located on the same site as the replaced structure and the replacement will have substantially the same purpose and capacity as the replaced structure. The proposed project will rehabilitate a partially destroyed motel. The motel will maintain the same number of guest rooms and a similar footprint on the same site as the existing structure. SECTION 3. REQUIRED FINDINGS. In accordance with Section 21.52.015. F. (Coastal Development Permits, Findings and Decision) of the Newport Beach Municipal Code, the following findings and facts in support of such findings are set forth: 54 Zoning Administrator Resolution No. ZA2023-060 Page 3 of 11 10-05-2021 Finding: A. Conforms to all applicable sections of the certified Local Coastal Program. Facts in Support of Finding: 1) The proposed development complies with applicable development standards including, but not limited to, floor area limitation, setbacks, and height. a) The maximum gross floor area limitation is 4,406.5 square feet (0.50 FAR) and the proposed floor area of the motel is 4,406 square feet. b) The CV Coastal Zoning District only requires a side setback when a property abuts a residential use and only requires a rear setback when the property abuts either an alley or a residential use. No front setback is required. As the subject property does not abut any residentially zoned properties and is abutted to the rear by a commercially zoned property, no building setbacks are required. c) The base height limit of the zoning district is 26 feet for flat elements and 31 feet for sloping roofs (minimum 3:12 slope). The highest guardrail is approximately 26 feet from established grade (9.56 feet NAVD88) and the highest ridge is no more than 31 feet from established grade, which comply with the maximum height requirements. d) Pursuant to Table 21.40-1 (Off-Street Parking Requirements) of the NBMC, a motel use requires one parking space per guest room. The 12-room motel requires 12 off-street parking spaces. The most recent parking lot configuration provided nine (9) parking spaces, resulting in the structure being nonconforming due to parking. The proposed project will further reduce the total number of parking spaces to seven due to the required restriping of the parking lot to comply with current parking lot and Americans with Disabilities Act (ADA) standards. The loss of two existing spaces is requested pursuant to Section 21.40.110 (Adjustments to Off-Street Parking Requirements) of the NBMC. 2) The project site is located within the West Newport neighborhood known as Newport Shores. The neighborhood was developed prior to the existence of minimum parking requirements and many properties do not provide the code required minimums. Section 21.40.110 (Adjustments to Off-Street Parking Requirements) of the NBMC allows the number of parking spaces to be reduced subject to demonstrating a reduced parking demand and a lack of impact to coastal access. The following site and operational characteristics support the reduction of required off-street parking: a. As the motel is a visitor serving use, it is reasonable to assume not all guests will arrive by vehicle. Some guests are likely to arrive via rideshare and will not need on- site parking. 55 Zoning Administrator Resolution No. ZA2023-060 Page 4 of 11 10-05-2021 b. Some guests, especially families traveling with children, are likely to book more than one (1) room without arriving in more than one (1) vehicle. Likewise, groups staying at the motel are likely to carpool and will not arrive individually. c. The site is served by regular bus service, with an Orange County Transit Authority (OCTA) bus stop approximately one (1) block to the east. d. There is on-street parking available along West Coast Highway, Seashore Drive, and there are multiple municipal lots along Seashore Drive. Two (2) of the municipal lots are located less than 300 feet from the project site. e. The project site is within walking distance of coastal resources that guests will be able to access. For example, the site is less than 400 feet from a large, sandy, beach. Beach volleyball courts are available off of the Grant Street end, less than .33 miles from the site. Additionally, the motel will have bicycles and on-site bicycle parking available for use by guests that wish to visit destinations beyond walking distance, such as the Balboa Peninsula, the Newport Pier, or popular surfing locations within the area. f. The motel is small in scale and will operate with a limited number of employees at any given time. g. The project will ultimately increase coastal access for disabled individuals. The prior parking lot layout did not provide an ADA compliant space. The restriping of the parking lot will provide one (1) ADA compliant space and the rehabilitated motel will provide two (2) ADA compliant guest rooms. 3) While Section 21.40.070 (Development Standards for Parking Areas) of the NBMC does not contain standard vehicle space requirements for parking provided at a 49-degree angle, the parking lot layout has been reviewed and accepted by the Public Works Department. 4) The motel does not provide the required number of parking spaces and is considered nonconforming pursuant to Section 21.38.060 (Nonconforming Parking) of the NBMC. Section 21.38.060 (Nonconforming Parking) of the NBMC allows for a nonconforming structure or use to be enlarged by up to ten (10) percent of its existing gross floor area if the required parking for the additional square footage is provided. As the required parking for a motel use is based on number of guest rooms provided rather than gross floor area of the structure, no additional parking is required. 5) The surrounding neighborhood is predominantly developed with either single or two (2)- story duplexes. Properties fronting West Coast Highway are nonresidential and typical one (1) to two (2) stories tall. The notable exception being the three (3)-story hotel to the immediate east of the project site. The proposed design, bulk, and scale of the rehabilitated motel is consistent with the existing neighborhood pattern of development. 6) While the motel previously operated as a low cost overnight visitor accommodations (LCOVA) as defined in Section 21.48.025(C) of the NBMC, the April 10, 2018, structure 56 Zoning Administrator Resolution No. ZA2023-060 Page 5 of 11 10-05-2021 fire that occurred at the subject project left guest rooms 1 through 4 red-tagged (unsafe to enter) with the remainder of guest rooms were yellow-tagged (given limited access to retrieve personal items only). Rooms 1 through 4 were demolished pursuant to Emergency Coastal Development Permit No. ECD2018-150 with the remaining rooms left uninhabitable. The fire significantly damaged the units and ended the availability of visitor accommodations at the site. 7) Pursuant to Section 21.48.025 (Visitor Accommodations) of the NBMC, applications involving the development of new visitor accommodations require the review authority to consider the development’s ability to otherwise protect, encourage, or provide low cost visitor-serving and recreational facilities on the project site or in the immediately adjacent area; the impact to, and ability to provide, public recreational opportunities; the feasibility to rehabilitate existing low cost accommodations to meet a minimum acceptable level of comfort and hospitality while maintaining the ability to provide low cost visitor accommodations; the range of room types and room rates Citywide. 8) A feasibility and impact assessment report was prepared by PFK Hospitality Group, dated July 2023. The report found that the motel would need to charge an Average Daily Rate (ADR) of $325 to achieve a 75% occupancy rate and operate successfully. 9) The report presents the statewide ADR as $188 with only one (1) hotel, Extended Stay America located at 4881 Birch Street, as providing LCOVA. The report concludes that while the project does not reduce the availability of LCOVA, the new accommodations fail to provide a range of affordability, including at least twenty-five (25) percent of the rooms as LCOVA as required by NBMC Section 21.48.025.C.4. The report also adds that high land values within the City generally render sites unsuitable for the development of LCOVA. 10) As the project fails to provide low cost visitor-serving and recreational facilities, the project impacts the availability of LCOVA. Pursuant to NBMC Section 21.48.025.C.5 (Visitor Accommodations, Protection of Low Cost Visitor Accommodations), mitigation commensurate with the impact is required. Condition of Approval No. 2 requires that the applicant pay an in-lieu fee for inability to provide 25 percent of new accommodations as low cost. The applicant will pay an in-lieu fee in the amount of $25,000 per room not provided as LCOVA, for a total of $75,000. 11) The development is located on an inland property in a developed area approximately 600 feet from Semeniuk Slough and 800 feet from mean high water line of the Pacific Ocean. The site is separated from Semeniuk Slough by multiple blocks of residential development. The site is separated by the Pacific Ocean by multiple blocks of residential development, a park, and West Coast Highway. The lowest finished floor elevation of the first floor of the structure is 9.67 feet based on the North American Vertical Datum of 1988 (NAVD88), which complies with the minimum 9.0-foot (NAVD 88) elevation standard for interior livable areas within new structures and/or new development. The identified distances from the coastal hazard areas, coupled with the 9.67-foot NAVD88 finish floor elevation, will help to ensure the project is reasonably safe for the economic life of the structure. 57 Zoning Administrator Resolution No. ZA2023-060 Page 6 of 11 10-05-2021 12) The property is located in an area known for the potential of seismic activity and liquefaction. All projects are required to comply with the California Building Code (CBC) and Building Division standards and policies. Geotechnical investigations specifically addressing liquefaction are required to be reviewed and approved prior to the issuance of building permits. Permit issuance is also contingent on the inclusion of design mitigation identified in the investigations. Construction plans are reviewed for compliance with approved investigations and CBC prior to building permit issuance. 13) A Construction Erosion Control Plan was provided to implement temporary Best Management Practices (BMPs) during construction to minimize erosion and sedimentation and to minimize pollution of runoff and coastal waters derived by construction chemicals and materials. The project design also addresses water quality through the inclusion of a post-construction drainage system that includes drainage and percolation features designed to retain dry weather and minor rain event runoff on-site. Any water not retained on-site is directed to the City’s storm drain system. 14) Pursuant to Municipal Code Section 21.35.050 (Water Quality and Hydrology Plan), due to the proximity of the development to the shoreline and the development containing more than 75 percent of impervious surface area, a Water Quality and Hydrology Plan (WQHP) is required. A preliminary WQHP has been prepared for the project by Toal Engineering Inc., dated, January 25, 2023. The WQHP includes a polluted runoff and hydrologic site characterization, a sizing standard for BMPs, use of an LID approach to retain the design storm runoff volume on site, and documentation of the expected effectiveness of the proposed BMPs. 15) The project site is not located adjacent to a coastal view road, public access way, or Coastal Viewpoint as identified in the Coastal Land Use Plan. The nearest designated public viewpoint is located at Newport Shores Park and overlooks the Semeniuk Slough. The viewpoint is approximately 600 feet to the east of the site and the site is not within the viewshed of the slough from that point. The nearest coastal view road is a portion of West Coast Highway that begins at the Santa Ana River, approximately 2,500 feet to the west of the site. The motel is not within the viewshed of the ocean from this roadway. Additionally, the motel has been shuttered and fenced off since the structure fire. The rehabilitation of the motel will remedy a blighted condition and provide a significant aesthetic improvement to the neighborhood. The building complies with applicable height limitations and maintains a building envelope consistent with the existing neighborhood pattern of development. The project does not contain any unique features that would degrade the visual quality of the coastal zone. Finding: B. Conforms with the public access and public recreation policies of Chapter 3 of the Coastal Act if the project is located between the nearest public road and the sea or shoreline of any body of water located within the coastal zone. 58 Zoning Administrator Resolution No. ZA2023-060 Page 7 of 11 10-05-2021 Fact in Support of Finding: The project site is not located between the nearest public road and the sea or shoreline. As such, it is not necessary to assess the consistency with the public access and public recreation policies of Chapter 3 of the Coastal Act. However, vertical access to the beach is available in proximity to the site, along Prospect Street. Lateral access to the coast begins at the Prospect Street end and is available along the beach. The project does not include any features that would obstruct access along these routes. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Zoning Administrator of the City of Newport Beach hereby finds this project is categorically exempt from the California Environmental Quality Act pursuant to Section 15302 under Class 2 (Replacement or Reconstruction) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment. 2. The Zoning Administrator of the City of Newport Beach hereby approves the Coastal Development Permit, subject to the conditions set forth in Exhibit “A,” which is attached hereto and incorporated by reference. 3. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal or call for review is filed with the Community Development Director in accordance with the provisions of Title 21 Local Coastal Program (LCP) Implementation Plan, of the Newport Beach Municipal Code. PASSED, APPROVED, AND ADOPTED THIS 28TH DAY OF SEPTEMBER, 2023. 59 Zoning Administrator Resolution No. ZA2023-060 Page 8 of 11 10-05-2021 EXHIBIT “A” CONDITIONS OF APPROVAL 1. The development shall be in substantial conformance with the approved site plan, floor plans and building elevations stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2. Prior to the issuance of a building permit, the applicant shall pay an in-lieu fee in the amount of $75,000 for inability to provide 25 percent of new accommodations as low cost. 3. Bicycles and on-site bicycle parking shall be provided for guest use to the satisfaction of the Community Development and Public Works Directors. 4. No demolition or construction materials, equipment debris, or waste, shall be placed or stored in a location that would enter sensitive habitat, receiving waters, or a storm drain or result in impacts to environmentally sensitive habitat areas, streams, the beach, wetlands or their buffers. No demolition or construction materials shall be stored on public property. 5. The applicant is responsible for compliance with the Migratory Bird Treaty Act (MBTA). In compliance with the MBTA, grading, brush removal, building demolition, tree trimming, and similar construction activities shall occur between August 16 and January 31, outside of the peak nesting period. If such activities must occur inside the peak nesting season from February 1 to August 15, compliance with the following is required to prevent the taking of native birds pursuant to MBTA: A. The construction area shall be inspected for active nests. If birds are observed flying from a nest or sitting on a nest, it can be assumed that the nest is active. Construction activity within 300 feet of an active nest shall be delayed until the nest is no longer active. Continue to observe the nest until the chicks have left the nest and activity is no longer observed. When the nest is no longer active, construction activity can continue in the nest area. B. It is a violation of state and federal law to kill or harm a native bird. To ensure compliance, consider hiring a biologist to assist with the survey for nesting birds, and to determine when it is safe to commence construction activities. If an active nest is found, one (1) or two (2) short follow-up surveys will be necessary to check on the nest and determine when the nest is no longer active. 6. Best Management Practices (BMPs) and Good Housekeeping Practices (GHPs) shall be implemented prior to and throughout the duration of construction activity as designated in the Construction Erosion Control Plan. 7. The discharge of any hazardous materials into storm sewer systems or receiving waters shall be prohibited. Machinery and equipment shall be maintained and washed in confined areas specifically designed to control runoff. A designated fueling and vehicle 60 Zoning Administrator Resolution No. ZA2023-060 Page 9 of 11 10-05-2021 maintenance area with appropriate berms and protection to prevent spillage shall be provided as far away from storm drain systems or receiving waters as possible. 8. Debris from demolition shall be removed from work areas each day and removed from the project site within 24 hours of the completion of the project. Stock piles and construction materials shall be covered, enclosed on all sites, not stored in contact with the soil, and located as far away as possible from drain inlets and any waterway. 9. Trash and debris shall be disposed in proper trash and recycling receptacles at the end of each construction day. Solid waste, including excess concrete, shall be disposed in adequate disposal facilities at a legal disposal site or recycled at a recycling facility. 10. Revisions to the approved plans may require an amendment to this coastal development permit or the processing of a new coastal development permit. 11. The project is subject to all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 12. The applicant shall comply with all federal, state, and local laws. Material violation of any of those laws in connection with the use may be cause for revocation of this coastal development permit. 13. This coastal development permit may be modified or revoked by the Zoning Administrator if determined that the proposed uses or conditions under which it is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity or if the property is operated or maintained so as to constitute a public nuisance. 14. Prior to the issuance of a building permit, the applicant shall submit a final construction erosion control plan. The plan shall be subject to the review and approval by the Building Division. 15. Prior to the issuance of a building permit, the applicant shall submit a final drainage and grading plan. The plan shall be subject to the review and approval by the Building Division. 16. Prior to the issuance of a building permit, a copy of the Resolution, including conditions of approval Exhibit “A” shall be incorporated into the Building Division and field sets of plans. 17. Prior to the issuance of a building permit, the final WQHP/WQMP shall be reviewed and approved by the Building Division. Implementation shall be in compliance with the approved CPPP and WQHP/WQMP and any changes could require separate review and approval by the Building Division. 18. Construction activities shall comply with Section 10.28.040 (Construction Activity – Noise Regulations) of the Newport Beach Municipal Code, which restricts hours of noise-generating construction activities that produce noise to between the hours of 7:00 61 Zoning Administrator Resolution No. ZA2023-060 Page 10 of 11 10-05-2021 a.m. and 6:30 p.m., Monday through Friday, and 8:00 a.m. and 6:00 p.m. on Saturday. Noise-generating construction activities are not allowed on Saturdays, Sundays or Holidays. 19. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 and other applicable noise control requirements of the Newport Beach Municipal Code. The maximum noise shall be limited to no more than depicted below for the specified time periods unless the ambient noise level is higher: Between the hours of 7:00AM and 10:00PM Between the hours of 10:00PM and 7:00AM Location Interior Exterior Interior Exterior Residential Property 45dBA 55dBA 40dBA 50dBA Residential Property located within 100 feet of a commercial property 45dBA 60dBA 45dBA 50dBA Mixed Use Property 45dBA 60dBA 45dBA 50dBA Commercial Property N/A 65dBA N/A 60dBA 20. Prior to the issuance of a building permit, the applicant shall pay any unpaid administrative costs associated with the processing of this application to the Planning Division. 21. Should the property be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by the current property owner or agent. 22. This coastal development permit shall expire unless exercised within 24 months from the date of approval as specified in Section 21.54.060 (Time Limits and Extensions) of the Newport Beach Municipal Code, unless an extension is otherwise granted. 23. To the fullest extent permitted by law, applicant shall indemnify, defend and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney’s fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to City’s approval of Pine Knot Motel including, but not limited to, Coastal Development Permit (PA2023-0027). This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by applicant, City, and/or the parties initiating or bringing such proceeding. The applicant shall indemnify the City for all of City's costs, attorneys' fees, and damages, which City incurs in enforcing the indemnification provisions set forth in this condition. The applicant shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this condition. 62 Zoning Administrator Resolution No. ZA2023-060 Page 11 of 11 10-05-2021 Building Division 24. Exterior walls and walls between onsite buildings shall comply with CBC 705 regarding fire rating and allowable openings. 25. Newly constructed buildings shall comply with Chapter 11B & 11B-24 transient lodging of the 2022 CBC. 26. Guest rooms and common areas on the second floor shall provide the same experience as accommodations on the first floor. 27. Exterior walls and walls between onsite buildings shall comply with CBC 705 regarding fire rating and allowable openings. Fire/Life Safety 28. NFPA 13 fire sprinklers shall be required. 29. A fire alarm in compliance with NFPA 72 and Chapter 9 of 2022 CFC shall be required. Public Works Department 30. The parking lot layout shall comply with layout stamped and dated with the date of this approval. 31. No encroachments, including but not limited to, foundation of structure is permitted with the West Coast Highway or Prospect Street Right of Way. 32. A new sewer clean out shall be installed on all existing sewer laterals in accordance with City Standard 406. 63 INTENTIONALLY BLANK PAGE64 Attachment No. PC 4 Zoning Administrator Minutes from September 28, 2023 65 INTENTIONALLY BLANK PAGE66 MINUTES OF THE MEETING OF THE NEWPORT BEACH ZONING ADMINISTRATOR 09/28/2023 Page 2 of 3 Zoning Administrator Zdeba closed the public hearing. He explained that the lots were never merged prior to the Subdivision Map Act because local rules at the time allowed building over lot lines. Therefore, to revert to the underlying lot lines only requires demolition of the existing structures that cross the property lines. Action: Approved as amended ITEM NO. 3 Pine Knot Motel Coastal Development Permit (PA2023-0027) Site Location: 6302 West Coast Highway Council District 1 Joselyn Perez, Associate Planner, provided a project description, stating that the request for a coastal development permit is to rehabilitate a motel and construct a partial second story, which includes an addition of 306 square feet. She provided the coastal zoning, coastal land use category, and an overview of the surrounding land uses. She also provided a background of the project site and explained that the original motel was destroyed due to a structure fire in 2018 and stated that the Low Cost Overnight Visitor Accommodations (LCOVA) previously provided by the motel ended due to the fire. She continued by explaining why the project does not need a conditional use permit to reestablish the use and clarified that the project is not an intensification of use. Associate Planner Perez provided development standards and explained that while the project does not provide the minimum required number of parking spaces, there are provisions within the Newport Beach Municipal Code (NBMC) that allow required parking spaces to be waived if the reduction does not negatively impact coastal resources. She explained the operational characteristics of the motel which would support the reduction in parking. Associate Planner Perez provided an overview of the NBMC section that requires projects with new overnight visitor accommodations to prepare an impact to LCOVA and a feasibility analysis. She presented the findings of the analysis and explained that it is infeasible for the project to provide LCOVA. Instead the developer will be required to pay a mitigation fee into the Fostering Interest in Nature (FiiN) Program. Associate Planner Perez discussed the proximity to coastal hazards, designated viewpoints, coastal access points, and stated that the project does not have any features that will impact coastal access or coastal views. Zoning Administrator Zdeba noted the $25,000 LCOVA mitigation fee and confirmed that the amount was deemed appropriate by the Community Development Director in considering the type and scale of this motel development. He added that it is far different from a larger luxury hotel, which may have a higher fee applied to it. Zoning Administrator Zdeba also encouraged language be added to Condition of Approval No. 3 to ensure there are sufficient bicycles and bicycle parking provided in the future. Applicant Eric Aust, Architect, on behalf of the Owner, stated that he had reviewed the draft resolution and agrees with all the required conditions, including the potential change to Condition of Approval No. 3. Zoning Administrator Zdeba opened the public hearing. A member of the public, Jim Mosher, spoke and questioned if the Planning Commission should be the hearing body for the item, if the current project design is in line with the previous owner’s original plans, if the conclusions of the LCOVA analysis are appropriate, and commented on the definition of motel. A member of the public, Mike Sinacori, spoke on behalf of the Newport Shores Community Association and spoke in favor of the project. Zoning Administrator Zdeba closed the public hearing. In response to Mr. Mosher, Associate Planner Perez confirmed the appropriate hearing body for the item and the adequacy of the LCOVA analysis. 67 MINUTES OF THE MEETING OF THE NEWPORT BEACH ZONING ADMINISTRATOR 09/28/2023 Page 3 of 3 Zoning Administrator Zdeba added that development plans typically do change and evolve over time to respond to market costs and to find a viable business model. He provided additional clarification on the LCOVA analysis as to why certain average daily rates (ADRs) were selected over others, commented on the availability of parking nearby, spoke on the derelict condition of the project since the fire, and discussed the overall increase in coastal access resulting from the project with the inclusion of accessible parking and rooms. Zoning Administrator Zdeba requested that Associate Planner Perez revise Condition of Approval No. 3 to clarify the number of bicycles to be provided onsite and she replied with adding the number of bicycles can be provided to the satisfaction of the Community Development and Public Works Director. Action: Approved as amended V. PUBLIC COMMENTS ON NON-AGENDA ITEMS One member of the public, Jim Mosher, recommended that the department should review the writing style guide as he finds some staff reports to have poor readability due to repetitive numbering by including Arabic numerals. He also expressed support for conducting hybrid Zoning Administrator meetings in a conference room at City Hall. Zoning Administrator Zdeba expressed appreciation for Mr. Mosher’s comments. He stated that, although it is not a regular practice to conduct hybrid meetings, those who are unable to attend a virtual meeting and need assistance can be accommodated in a physical conference room. VI. ADJOURNMENT The hearing was adjourned at 10:46 a.m. The agenda for the Zoning Administrator Hearing was posted on September 21, 2023, at 2:45 p.m. on the digital display board located inside the vestibule of the Council Chambers at 100 Civic Center Drive and on the City’s website on September 21, 2023, at 2:55 p.m. 68 Attachment No. PC 5 Appeal Application 69 INTENTIONALLY BLANK PAGE70 71 72 Attachment No. PC 6 Project Plans 73 INTENTIONALLY BLANK PAGE74 SDUNLQJ 123$5.,1*FRDVWKLJKZD\SURVSHFWVWUHHW S 34°21'00" W 90.00' N 79°21'00" E 21.21' N 34°21'00" E 105.00' DOOH\S 55°39'00" E 70.00'N 55°39'00" W 85.00'H[LVWLQJEXLOGLQJ H[LVWLQJEXLOGLQJ DDDD VLWHSODQSURMHFWGDWD FRS\ULJKW MRE DXJXVW F ZFRDVWKLJKZD\ QHZSRUWEHDFKFDOLIRUQLD SLQHNQRW DUFKLWHFW LQYHVWPHQW//& FOLHQW QHZSRUWEHDFKFDOLIRUQLD SURGXFWLRQSODFH QHZSRUWEHDFKFDOLIRUQLD EDOERDFRYHV WHO PRWHO WHO VLWHURRISODQ VKHHWLQGH[ SURMHFWFRQVXOWDQWV ; V\PEROVOHJHQG ; GHIHUUHGVXEPLWWDOV SXEOLFZRUNVQRWHV YLFLQLW\PDSQRUWK SURMHFWGDWDSURMHFWGDWDJHQHUDOQRWHV JHQHUDOQRWHV SURMHFWGDWD UHIQRUWKQRUWK 75 DDDD IORRUDUHDDQDO\VLV FRS\ULJKW MRE DXJXVW F ZFRDVWKLJKZD\ QHZSRUWEHDFKFDOLIRUQLD SLQHNQRW DUFKLWHFW LQYHVWPHQW//& FOLHQW QHZSRUWEHDFKFDOLIRUQLD SURGXFWLRQSODFH QHZSRUWEHDFKFDOLIRUQLD EDOERDFRYHV WHO PRWHO WHO VWIORRUDUHDDQDO\VLV QGIORRUDUHDDQDO\VLV VIOREE\FRIIHHEDU VIH[LVWLQJUHPDLQLQJIORRUDUHD SURMHFWDUHDDQDO\VLV VIVWIORRUQHZEXLOGLQJ VIQGIORRUQHZEXLOGLQJ VI727$/IORRUDUHD VIDOORZDEOHIORRUDUHD )$5 VIH[LVWLQJVLWHDUHD SURMHFWDUHDDQDO\VLV UHIQRUWKQRUWK 76 DESCRIPTION LEGEND XX 123.45 P.P. WM F.F. G.F. CONC. F.S. M.H. P A.C. T.G. MEAS. ELEVATIONS TOP-GRATE ASPHALT PLANTER MAN-HOLE FINISHED SURFACE CONCRETE GARAGE FLOOR FINISH FLOOR WATER METER POWER POLE FENCE PROPERTY LINE BUILDING WALL DECK BRICK REC. BRG. & DIST. NATURAL GRADEN.G. SCALE 1"=8’ 0’ 8’ 16’ N A L D E S N E C I L R O Y E V R U S D L I F O R N I A S T A T E O F C A RON MIEDEMA No. 4653EXP. 9/30/23 C.F. CURB FACE C.P. CONTROL POINT FL FLOWLINE LEAD & TAGL&T TC TOP OF CURB T.O.R. TOP OF ROOF S&W SPIKE & WASHER NOTE: RECORD EASEMENTS ARE NOT PLOTTED IF ANY. SURVEYOR OR ENGINEER SHALL PERMANENTLY MONUMENT PROPERTY CORNERS OR OFFSETS BEFORE STARTING GRADING. G.M. GAS METER E.P. EDGE OF PAVEMENT BENCH MARK #1J-58-80 DATUM: NAVD88 ELEVATION: 9.274 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF NEWPORT BEACH, IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: THE NORTHEAST ONE-HALF OF LOT 3, AND ALL OF LOTS 4, 5 AND 6 IN BLOCK 3 OF THE SEASHORE COLONY TRACT AS RECORDED IN BOOK 7, PAGE 25 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THAT PORTION OF AND LOT 3 AS SHOWN ON THE MAP RECORDED IN BOOK 7, PAGE 25 OF MISCELLANEOUS MAPS. BEGINNING AT THE EAST CORNER OF SAID LOT 3; THENCE ALONG THE SOUTHEASTERLY LINE OF SAID LOT 3, SOUTH 35 20’ 17" WEST, 15.00 FEET TO THE EAST CORNER OF THE SOUTHWESTERLY 15.00 FEET OF LOT 3 AS DESCRIBED IN BOOK 377, PAGE 29 OFFICIAL RECORDS OF ORANGE COUNTY; THENCE ALONG THE NORTHEASTERLY LINE OF SAID SOUTHWESTERLY 15.00 FEET OF LOT 3, NORTH 54 38’ 04" WEST, 15.00 FEET; THENCE NORTH 80 21’ 07" EAST, 21.21 FEET TO THE EAST CORNER OF SAID LOT 3, SAID CORNER BEING THE POINT OF BEGINNING PER DEED TO THE CITY OF NEWPORT BEACH, RECORDED MARCH 30, 1992 AS INSTRUMENT NO. 1992-196782 OFFICIAL RECORDS . ALSO EXCEPT THEREFROM ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES LYING BELOW A DEPTH OF 100 FEET WITHOUT ANY RIGHT TO ENTER UPON THE SURFACE OF SAID LAND, AS PROVIDED IN INSTRUMENTS OF RECORD. APN 045-084-09 JOB: 82-63 DATE: 11/19/21 RdM SURVEYING INC. RON MIEDEMA L.S. 465323016 LAKE FOREST DRIVE #409 LAGUNA HILLS, CA 92653 949 858-2924 OFFICE 949 422-1869 CELLRDMSURVEYING@COX.NET ADDRESS OF PROJECT LEGAL DESCRIPTION BENCH MARK TOPOGRAPHIC SURVEY OWNER VICINITY MAP NOT TO SCALE 6302 W. COAST HIGHWAY NEWPORT BEACH, CA N 55 39’00" W 85.00’ N 34 21’00" E 105.00’ S 34 21’00" W 90.00’ N 79 21’00" E 21.21’ S 55 39’00" E 70.00’ PROJECTSITE PROSPECT STREET COAST HIGHWAY 20.30 RIDGE 22.38 RIDGE 22.16 RIDGE 10.16FS 10.40FS 10.31FS 10.06FS 10.39FS 10.39FS 10.13FS 10.32FS 10.23FS 9.98FS 9.86FS 9.78FS 9.52FS 9.34FS 9.76FS 9.41FS 9.61FS 9.6FS 9.32FS 9.23FS 9.16FS 9.30FS 9.41FS 9.70FS 9.71FS 9.61FS 9.67FS 9.57FS 9.55NG 9.53FS 9.65FS 9.62FS 9.53FS 9.59FS 9.75FS 9.76FS 9.73FS 9.75FS 9.68FS 9.53FS 9.75FS 9.68FS 9.71FS 9.61FS 9.69FS 9.67FS 9.66FS 9.78FS 9.63FS 9.79FS 9.43FS 9.29FS 9.48FS 9.43FS 9.57FS 9.56FS 9.62FS 9.54FS 9.51NG 9.87NG 9.52NG 9.48NG 9.73FS PINE KNOT SIGN ELEC. BOX WM SBC BOX CABLE TV WM SIGN BOX TRAFFIC S I G N A L BOX TRAFF I C S I G N A L 17.95 EAVE 9.71FF 9.57FF 9.65FF 9.5FS 9.5FS LARGE LEANING PALM 9.69FF 17.08 EAVE 16.98 EAVE 16.99 EAVE 12.50TW 9.3FS 9.5NG 9.7FS 9.8FS 10.55TW 10.58TW 10.71TW 10.76TW 10.41TW 9.84FS 9.32FS 9.7FS 9.9FS 9.48FL 9.45FL 9.35FL 9.16FL 9.09FL 8.98FL 8.96TG 8.86TG 9.32FS 9.26FS 9.33FS 10.22FS 10.21FS 10.20FS 9.82TC 9.32FL 9.75TC 9.75TC 9.22FL 9.68TC 9.19FL 9.54TC 9.09FL 9.62TC X TRAFFIC SIG. ELEC. BOX 8.93FL 8.93FL 9.62TC X 9.59TC 9.66TC 9.94FL 9.01FS 9.60TC 9.12FS 9.67TC 0" CF 9.72TC 9.66TC 0" CF 9.84TC 8.98FS 9.61TC 8.91FL 8.94FL 8.91FL 8.93FL 9.01FS 9.20FS 9.01FS 9.14FS ALLEY 2.9 3.5 CF.W. 1.3 GUTTER 15.0 3.3 5.0 5.0 19.4 6.0 0.5 1.9 WOODLANDING CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC.CONC. CONC. CONC. CONC. CONC. CONC. CONC.CONC.CONC.CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC CONC. CONC. CONC. CONC. CONC. CONC. CONC. AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC AC CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC.CONC. CONC. CONC. CONC.CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. CONC. NO PARKING 1 STORY BUILDING POST TYPICAL COVERED AREA DECKABOVE WOOD X X X X X X X X CONC WROUGHT IRONFEONCE ON TOPOF WALL CONC. CONC. CONC. CONC. DIRT DIRT DIRT DIRT DIRT DIRT DIRT DIRT DIRT CONC. PROPERTYLINE CENTER LINE PROPERTYLINE PROPERTYLINE PROPERTY LINE CENTER LINE CENTER LINE 1 STORY BUILDING 1 STORY BUILDING Pine Knott 77 PROSPECT STREETCOAST HIGHWAYALLEYLLLAAAYYAAAAAAAAAAAAAEELLAAAA 1 STORY BUILDINGCOVERED AREAEEEE 1 STORY BUILDING 1 STORY BUILDING W.I. FENCE ON WALLO.ILLW..EXISTING BUILDING TO REMAIN EXISTING BUILDINGTO REMAIN F.F.= 9.75 PAD= ____ F.F.= 9.75PAD= ____NO PARKINGNNAARRNNIIOOCEE OOONLLPROPOSED BUILDING PROPOSED BUILDINGPPPPPRRPWWWW 139 Avenida NavarroSan Clemente, CA 92672949.492.8586www.toalengineering.com CIVIL ENGINEERINGLAND SURVEYING STORMWATER QUALITY 23002PINE KNOT MOTELPOR. LOT 3 & LOTS 4, 5, & 6, SEASHORE COLONY TRACT (APN: 045-084-09)6302 W. COAST HIGHWAY, NEWPORT BEACH, CAPRELIMINARY PLAN NOT FOR CONSTRUCTION DEVELOPMENT STATISTICSGRADING LEGEND STORM WATER LIFT STATION 1" = 8' N/A11/19/21 5/31/23 M.F.B. M.F.B. A.L.T. 1 2 C-1PRELIMINARY GRADING PLAN78 PROSPECT STREETCOAST HIGHWAYALLEYLLLAAAYYAAAAAAAAAAAEELLAAAA 1 STORY BUILDINGCOVERED AREAEEEE 1 STORY BUILDING 1 STORY BUILDING EXISTING BUILDING TO REMAIN EXISTING BUILDINGGGGTO REMAIN F.F.= 9.75 PAD= ____ F.F.= 9.75PAD= ____NO PARKINGNNAARRNNIIOOPROPOSED BUILDING PROPOSED BUILDINGGGKAA NNNOPRKKNNGGGGGNNNNOOPARKINKANGNGNOPRKKNGGG139 Avenida NavarroSanClemente,CA 92672949.4 9 2 .8 5 8 6www.toalengineering.com CIVIL ENGINEERINGLANDSURVEYING STORMWATER QUALITY 23002PINE KNOT MOTELPOR. LOT 3 & LOTS 4, 5, & 6, SEASHORE COLONY TRACT (APN: 045-084-09)6302 W. COAST HIGHWAY, NEWPORT BEACH, CAPRELIMINARY PLAN NOT FOR CONSTRUCTION 1" = 8' N/A11/19/21 5/31/23 M.F.B. M.F.B. A.L.T. 2 2 C-2EROSION CONTROL PLANLEGENDNOTE YEAR-ROUND BMP REQUIREMENTS THIS SHEET FOR EROSION CONTROL ONLY EROSION CONTROL BMPs TEMPORARY SEDIMENT CONTROL WIND EROSION CONTROL TRACKING CONTROL WASTE MANAGEMENT AND MATERIALS POLLUTION CONTROL NON-STORMWATER MANAGEMENT 79 WH UNIT 01 UNIT 02 UNIT 03 UNIT 04 UNIT 08 UNIT 09 UNIT 10 UNIT 11 UNIT 12 STORAGE 14 STORAGE 13LIVING ROOM 15 LAUNDRY 16 BEDROOM 18 KITCHEN 17 BATH 19 BEDROOM 21 OFFICE 20 LOBBY 22 UNIT 07 UNIT 06 UNIT 05 DEMOLISHED DUE 864 SF (4 UNITS) UP TO FIRE DAMAGE SDUNLQJ NO PARKI NG GGGG GHPROLWLRQSODQ FRS\ULJKW MRE DXJXVW F ZFRDVWKLJKZD\ QHZSRUWEHDFKFDOLIRUQLD SLQHNQRW DUFKLWHFW LQYHVWPHQW//& FOLHQW QHZSRUWEHDFKFDOLIRUQLD SURGXFWLRQSODFH QHZSRUWEHDFKFDOLIRUQLD EDOERDFRYHV WHO PRWHO WHO VWIORRUGHPROLWLRQSODQ ZDOOOHJHQG UHIQRUWK Q RUWKHVWDEOLVKHGJUDGHDQGRYHUDOOKHLJKW 80 SDUNLQJ 123$5.,1*DDDD VWIORRUSODQ FRS\ULJKW MRE DXJXVW F ZFRDVWKLJKZD\ QHZSRUWEHDFKFDOLIRUQLD SLQHNQRW DUFKLWHFW LQYHVWPHQW//& FOLHQW QHZSRUWEHDFKFDOLIRUQLD SURGXFWLRQSODFH QHZSRUWEHDFKFDOLIRUQLD EDOERDFRYHV WHO PRWHO WHO VWIORRUSODQ VIOREE\FRIIHHEDU VIH[LVWLQJUHPDLQLQJIORRUDUHD SURMHFWDUHDDQDO\VLV ZDOOOHJHQG VIVWIORRUQHZEXLOGLQJ VIQGIORRUQHZEXLOGLQJ VI727$/IORRUDUHD UHIQRUWK VIDOORZDEOHIORRUDUHD VIH[LVWLQJVLWHDUHD SURMHFWDUHDDQDO\VLV )$5 Q RUWK 81 DDDD QGIORRUSODQ FRS\ULJKW MRE DXJXVW F ZFRDVWKLJKZD\ QHZSRUWEHDFKFDOLIRUQLD SLQHNQRW DUFKLWHFW LQYHVWPHQW//& FOLHQW QHZSRUWEHDFKFDOLIRUQLD SURGXFWLRQSODFH QHZSRUWEHDFKFDOLIRUQLD EDOERDFRYHV WHO PRWHO WHO QGIORRUSODQ ZDOOOHJHQG UHIQRUWK Q RUWK 82 FRS\ULJKW MRE DXJXVW F ZFRDVWKLJKZD\ QHZSRUWEHDFKFDOLIRUQLD SLQHNQRW DUFKLWHFW LQYHVWPHQW//& FOLHQW QHZSRUWEHDFKFDOLIRUQLD SURGXFWLRQSODFH QHZSRUWEHDFKFDOLIRUQLD EDOERDFRYHV WHO PRWHO WHO DDDD H[WHULRUHOHYDWLRQV HDVWHOHYDWLRQ VLGH VRXWKHOHYDWLRQ IURQW PDWHULDOV HVWDEOLVKHGJUDGHDQGRYHUDOOKHLJKW HVWDEOLVKHGJUDGHDQGRYHUDOOKHLJKW 83 DDDD H[WHULRUHOHYDWLRQV ZHVWHOHYDWLRQ VLGH FRS\ULJKW MRE DXJXVW F ZFRDVWKLJKZD\ QHZSRUWEHDFKFDOLIRUQLD SLQHNQRW DUFKLWHFW LQYHVWPHQW//& FOLHQW QHZSRUWEHDFKFDOLIRUQLD SURGXFWLRQSODFH QHZSRUWEHDFKFDOLIRUQLD EDOERDFRYHV WHO PRWHO WHO QRUWKHOHYDWLRQ UHDU HVWDEOLVKHGJUDGHDQGRYHUDOOKHLJKW PDWHULDOV 84 FRS\ULJKW MRE DXJXVW F ZFRDVWKLJKZD\ QHZSRUWEHDFKFDOLIRUQLD SLQHNQRW DUFKLWHFW LQYHVWPHQW//& FOLHQW QHZSRUWEHDFKFDOLIRUQLD SURGXFWLRQSODFH QHZSRUWEHDFKFDOLIRUQLD EDOERDFRYHV WHO PRWHO WHO DDDD H[WHULRUHOHYDWLRQV QRUWKVRXWKEXLOGLQJVHFWLRQ HDVWZHVWEXLOGLQJVHFWLRQ 85 DDDD H[WHULRUHOHYDWLRQV QRUWKVRXWKEXLOGLQJVHFWLRQ FRS\ULJKW MRE DXJXVW F ZFRDVWKLJKZD\ QHZSRUWEHDFKFDOLIRUQLD SLQHNQRW DUFKLWHFW LQYHVWPHQW//& FOLHQW QHZSRUWEHDFKFDOLIRUQLD SURGXFWLRQSODFH QHZSRUWEHDFKFDOLIRUQLD EDOERDFRYHV WHO PRWHO WHO HDVWZHVWEXLOGLQJVHFWLRQ 86 Attachment No. PC 7 Feasibility and Impact Assessment, prepared by PFK Hospitality Group 87 INTENTIONALLY BLANK PAGE88 draft 1 PKF hotelexperts Newport Beach Municipal Code Section 21.48.025 Feasibility and Impact Analysis for 6302 W. Coast Highway Hotel Development in Newport Beach, California July 2023 PKF hotelexperts GmbH I Schubertring 3 l 1010 Vienna l Austria www.pkfhotels.com T: +43 (1) 5120707 E: vienna@pkfhotels.com managing directors Michael Widmann Christian Walter l commercial register FN 245617 b PKF hotelexperts GmbH is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. 89 draft 2 8 executive summary In this report, we present our findings of the two requested analyses, as follows: The feasibility of the hotel development at 6302 W. Coast Highway (“Project”) to include lower-cost visitor accommodations; and The impact of the Project on the existing lower-cost visitor accommodations in the City of Newport Beach (“City”). The following analyses conclude that it is not feasible to provide lower-cost visitor accommodations as part of the Project, and the Project would not impact the availability of lower- cost visitor accommodations in the City. The Project is currently contemplated to be a three to four-star 12-key boutique hotel in Newport Beach, California within a small community on the Pacific Coast Highway and a minute walk from the beach. Newport Beach is located in Southern California and is known for its tourism and hospitality, which attracts million of visitors each year, as well as for it finance, investment, retail and healthcare industry sectors. Its proximity to the beach makes it a wonderful place to visit if you are an avid beachgoer and enjoy outdoor activities. The Project site is located near the Balboa Peninsula, driving distance to the downtown ares of Newport Beach, Huntington Beach and Costa Mesa. There is good visibility from the streets, and it is easily accessible by car and bike. The direct surroundings are characterized by the beach across the Pacific Coast Highway, and smaller buildings occupied by older cafes and residential projects, such as Sonder next door. The subject property suffered damage from a fire and ceased operating as a hotel. The Project would establish a new hotel at the property. The area has a number of buildings in disrepair, and the renovation of this property will add notable improvements to the PCH and the general area building supply. The property has 12 rooms and is approved for 12 rooms, albeit in an upgraded configuration from the existing footprint and layout. The owner plans to create 8 standard rooms and 4 suites, all with semi-private outdoor seating areas and access to a central courtyard with firepit and many beach-friendly amenities, such as lockers with beach chairs and umbrellas, and high-end dedicated beach bikes. In the period from 2018 to 2023, the number of hotel rooms in Newport Beach increased due to the growing demand as a popular tourist destination, and there has been growing demand for accommodations in the area. Currently, a large number of branded hotels are present in the market. Given the fact that there is a limited number of hotel projects specifically in the boutique hotel space currently being planned and developed in the Newport Beach market (in particular in the midscale and upscale segments); only a slight growth of supply can be expected in the upcoming years 90 draft 3 As a result of our site and market analyses, we consider the project site to be well suited for a hotel of the upscale boutique market targeting leisure travelers. The project can garner an ADR upwards of $300. The property will be designed by a renowned local designer who specializes in beachy designs, and who designed Kelly Slater’s surf wave property. 91 draft 4 table of contents chapter heading page 1 Introduction 6-10 2 Location 12-16 3 Market 17-23 4 Concluding Remarks 24 92 draft 5 charts/illustrations # title page Chart 1 typical brands per segment 10 Chart 2 location of Orange County within Southern California 11 Chart 3 location of Newport Beach within Orange County 12 Chart 4 capacity of relevant hotels 17 Chart 5 published rates of geographic hotels 22 93 draft 6 Introduction Feasibility Analysis Newport Beach Municipal Code (“NBMC”) Section 21.48.025(C)(2) requires “an analysis of the feasibility of providing lower-cost visitor accommodations…for any application involving the…redevelopment…of…visitor accommodations.” This analysis is required regardless of whether the accommodations to be converted are “lower-cost.” The Project proposes to redevelop a vacant and abandoned property with 12 high-cost visitor accommodations. Thus, the NBMC requires the preparation of this feasibility analysis to determine if the Project could provide lower-cost visitor accommodations on the Project site. As explained below, it is not feasible to include lower-cost visitor accommodations on the Project site. This infeasibility is due to the site’s high land value, the Project’s high development costs, and the small site size. Project The Project proposes to reonovate and redevelop a vacant and abandoned boutique hotel/motel in Newport Beach, California. The Project site is to be located walking distance from the beach and detailed architectural plans have been produced and are under review with the city. The following uses are planned for the project: lodging facilities with 12 keys café and coffee bar courtyard for small events with bocce ball and fire pit other facilities (amongst others parking, staff area, guest storage and BOH and We conducted the assignment from February 2023 to March 2023. The study is based on the site and market conditions at the time of the site and market research as well as the relevant supply and demand at that time. The audit of the legal terms, in particular the ownership, building, corporate and fiscal terms, is not subject of this assignment. We have prepared the feasibility study on the basis of the General Terms and Conditions of Doing Business. When preparing the study, we have acted in our position as a neutral expert to the best of our knowledge. However, we cannot guarantee the actual occurrence of any forecasted results. The study was exclusively prepared for the client’s use. If it is forwarded to any third party, the above-mentioned General Terms and Conditions of Doing Business shall also apply vis-à-vis this third party. The report (or parts of it) may only be published after the consultant’s prior written approval. 94 draft 7 New York, 19 July 2023 PKF hotelexperts LLC Channing Henry, Managing Director 95 draft 8 Methodology General The quality and significance of studies relies to a great extent on detailed re- search. In order to provide an insight into the applied methodology, we have listed selected aspects of our work: The following people have worked on the assignment: project controller: Channing Henry (Managing Director), Bruce Baltin (Director) project manager: Ryan Swanson (Consultant) In case of questions regarding the content and structure of this feasibility report, the project controller and the project manager are at your disposal. You can reach them under: PKF hotelexperts 245 Park Avenue New York, NY 10167 telephone +1 917-270-3140 e-mail channing.henry@pkfhospitality.com internet www.pkfhospitality.com The individual steps of the assignment were done in the following order: date when assignment was given: February 2023 preparation of site and market analysis: February 2023 – March 2023 collection/analysis of data and writing of the report: February 2023 delivery of draft report: March 2023 delivery of final report: July 2023 Analyses In the course of the collection of information, the project team interviewed – either personally or by telephone – several experts. A list of those people as well as of collected documents and other information can be obtained from PKF hotelexperts. The information was collected by using – amongst others – the following means: visit to Newport Beach, California market research in Newport Beach, California 96 draft 9 personal interviews and interviews by telephone with representatives from the City of Newport Beach, California analyses of data and statistics provided by various statistical offices analysis of various publications internet research use of various databases (including databases by PKF hotelexperts) The collected information and data was analysed in the following way: analysis and evaluation of the collected market data and results of the interviews derivation and assessment of the development of the relevant hotel market assessment of the hotel site for various guest segments based on the current and probable future site and market situation remarks on the optimal positioning of the hotel derivation of the estimated achievable occupancy based on data of relevant com- petitors respectively hotels of regional importance taking into consideration the most probable market development in particular with regards to the development of the estimated market shares derivation of the estimated achievable average net room rate per hotel based on data of relevant competitors – respectively hotels of regional importance – and taking into consideration figures based on our international experience Ratios The following ratios are used throughout the reports: c occupancy occupied rooms divided by the number of available rooms per period d multiple occupancy factor number of guests divided by the number of occupied rooms per period e published room rate (= rack rate) published room rate including VAT and – if applicable – breakfast f net room rate rooms revenue (after deduction of breakfast, VAT and allowances/discounts) di- vided by the number of occupied rooms in each period 97 draft 10 g=cxf revenue per available room/revpar (= rooms yield) occupancy multiplied by the average net room rate respectively rooms revenue (excluding VAT, breakfast and allowances/discounts) divided by the number of available rooms per period Impact Analysis NBMC Section 21.48.025(C)(3)(a) provides that “an analysis of a development’s impact on the availability of lower-cost visitor accommodations in the City shall be required for any application involving…the…redevelopment…of…visitor accommodations….” The Project proposes to reonovate and redevelop a vacant and abandoned boutique hotel/motel in Newport Beach, California. Thus, the NBMC requires the preparation of this impact analysis, at the Client’s expense, to determine if the Project impacts the availability of lower-cost visitor accommodations in the City. As explained below, this Project does not impact the City’s existing lower-cost visitor accommodations. The number of lower-cost visitor accommodations in the City will remain the same, and both the supply and demand for them will be unchanged by this Project. Classification The classification of hotels in this study is based on the internal hotel classifica- tion of PKF hotelexperts, which is orientated towards the strict international pa- rameters for the classification of hotels (maximum of five stars): outstanding standard; extraordinarily good service, extraordinarily large (mini- mum of 34 sq m) and luxuriously equipped rooms; excellent food & beverage facilities; extensive and outstanding sports, leisure and spa facilities (for resort hotels) or high-quality fitness & spa facilities (for city hotels) very high standard; very good service; large (minimum of 28 sq m) and very com- fortably equipped rooms; very good food & beverage facilities; sports, leisure and spa facilities, which are adequate to the type and the site of the hotel high standard; good service; spacious (minimum of 22 sq m) and comfortably equipped rooms; good food & beverage facilities; sports, leisure and spa facili- ties, which are adequate to the type and the site of the hotel simple standard; limited service; relatively small (minimum of 16 sq m) and basic rooms; no or only simple food & beverage facilities; no or only simple sports, leisure and spa facilities very simple standard; no or very limited service; very small and very simply equipped rooms; no food & beverage facilities; no sports, leisure and spa facilities 98 draft 11 Typical brands of the various market segments and their respective positioning as seen by PKF hotelexperts are illustrated in the following chart: Chart 1 typical brands per segment Days Inn aloft Radisson Blu Ibis Budget Ibis Indigo Marriott Holiday Inn Expr.Hilton Four Seasons Sleep Inn Ramada Encore Sofitel Super 8 Best Western Crowne Plaza Ritz-Carlton Courtyard by M. Canopy by H. Park Hyatt Easyhotel Hilton Garden Inn Wyndham Première Classe Hampton by H. Novotel Grand Hyatt Campanile Mercure InterContinental Star Inn Holiday Inn Hyatt Regency B&B Hyatt Place Hyatt Park Inn by Radisson Sheraton Motel One Andaz Premier Inn Ramada Conrad Moxy DoubleTree by H.Waldorf Astoria Clarion Renaissance JW Marriott St. Regis notes 1)stars according to classification by PKF ©PKF hotelexperts; status: 1 January 2017 2) per segment (dark grey:core positioning; light grey: range of existing properties) 3) size of standard room in sq m -++- 34 42 50 +- 32 -+ -+seg.2) stars1) size3)10 12 14 16 18 20 22 24 26 28 30 Please note that national or regional classification systems – as well as the hotel groups themselves – often are more generous in attributing stars to hotels. 99 draft 12 Location County General Orange County is in Southern California, United States. It is situated along the coast of the Pacific Ocean and is part of the Los Angeles metropolitan area. Orange County covers an area of approximately 948 square miles (2,455 square kilometers). It is bordered by Los Angeles County to the north, San Bernardino County to the northeast, Riverside County to the east, and San Diego to the south. As of the 2020 United states Census, the population of Orange County was estimated to be around 3.2 million people, making it the sixth most populous county in California and the third most populous county in the Greater Los Angeles Area. Land Value Land in Newport Beach is extremely valuable, and land near the ocean in West Newport is known to have some of the most expensive real estate in the entire City. Land in West Newport can typically trade for tens of millions of dollars per acre. This high land value acquisition cost renders the property financially impractical and unsuitable for lower-cost visitor accommodations. Additionally, given the small size of the project, there is no physical area to construct lower- cost visitor accommodations at the Project site. High Development Costs The estimated construction costs for the Project are nearly $1,000 per square foot. Inclusion of lowercost visitor accommodations would reduce the the overall leveraged internal rate of return (“IRR”) to a level that would dissuade investors from investing in the Project, and would ultimately have the effect of preventing the Project from being developed. 100 draft 13 Chart 2 location of Orange County in Southern California Economy The economy of Orange County, California is one of the largest and most diverse in the United States. The county is home to a wide range of industries, including technology healthcare, tourism, aerospace and defense, financial services, manufacturing and retail. In terms of GDP, Orange County is one of the top ten counties in the United States. The county’s economy is estimated to have a gross metropolitan product of over $300 billion in 2020, according to the Bureau of Economic Analysis. Orange County’s technology industry is particularly strong, with companies such as Broadcom, Western Digital, and Blizzard Entertainment operating in the region. The healthcare industry is also a significant contributor to the economy, with major hospitals and medical centers in the county. These key industries contributed $56.2 billion to the county’s GMP (Gross Metropolitan Product) in 2020. The top employer includes the County of Orange, Disneyland Resort, UC Irvine and Boeing. As of December 2021, the unemployment rate in Orange County was 4.0%, compared to the national average of 3.9%. Median household income in Orange County was $93,36 in 2019. The cost of living is much higher than the national average. The county’s economy has been growing steadily over the past few years, with an increase of 2.2% in GMP between 2019 and 2020, obviously stunted by COVID-19, the economy is rebounding. Location and expanse Newport Beach is a coastal city in Orange County, Southern California, United States. It is situated on the Pacific Coast, about 10 miles (16 kilometers) south 101 draft 14 of the city of Huntington Beach and 10 miles (16 kilometers) north of the city of Laguna Beach. Newport Beach is bordered by the Pacific Ocean to the west and by several other cities in Orange County to the north, east and south. According to the United States Census Bureau, the estimated population of Newport Beach, California, as of 2020, is approximately 85,236 people. Newport Beach is a relatively small city compared to other cities in Orange County, however it is known for its beautiful beaches, affluent neighborhoods, and a vibrant harbor area. The following map shows the location of Newport Beach within Orange County: Chart 3 location of Newport Beach within Orange County Economy and demographics The economy of Newport Beach is distinguished by its location in Orange County, along with its proximity to other key institutions and areas. Newport Beach is within driving distance to University of California, Irvine, California State University, Fullerton and Orange Coast College, benefitting from an educated workforce. According to the US Census Bureau's American Community Survey 5- year estimates from 2015-2019, approximately 72.9% of the population aged 25 years and older in Newport Beach, California has a bachelor's degree or higher. This is significantly higher than the national average of 33.1%. Furthermore, 31.8% of Newport Beach residents aged 25 years and older have a graduate or professional degree. These statistics suggest that Newport Beach has a highly educated population. As per the US Census Bureau's American Community Survey 5-year estimates from 2015-2019, the total civilian labor force in Newport 102 draft 15 Beach, California, was approximately 45,935 people. This includes individuals who are employed or actively seeking employment and are aged 16 years and older. The labor force participation rate for Newport Beach was estimated to be around 68.3%, which is higher than the national average of 62.7%. Newport Beach, California is home to several companies across a variety of industries, including finance, healthcare, and technology. Some of the largest and most well-known companies in Newport Beach include Pacific Life Insurance Company: This is a large insurance and investment management company that has its headquarters in Newport Beach. PIMCO: This is a global investment management firm that was founded in Newport Beach in 1971. Hoag Memorial Hospital Presbyterian: This is a non-profit hospital system that is based in Newport Beach and serves the Orange County area. Clean Energy Fuels: This is a company that provides natural gas as an alternative fuel for vehicles and has its headquarters in Newport Beach. Acacia Research Corporation: This is a patent licensing and enforcement company that is based in Newport Beach. Lastly, Jazz Semiconductor: This is a company that designs and manufactures semiconductor products for a variety of applications and has its headquarters in Newport Beach. The top five industries in Newport Beach, California, by the number of people employed, were: professional, scientific, and technical services, health care and social assistance, retail trade, accommodation and food services, and finance and insurance. The median household income in Newport Beach according to the US Census Bureaus’ American Community Survey 5-year estimates from 2015-2019, the median household income in Newport Beach, California, was approximately $126,728. This is significantly higher than the national median household income of $65,712. It is worth noting that median household income can vary based on a variety of factors, including the size and composition of the household, the age and education level of the household members, and the local economy. Newport Beach is known to have a relatively high cost of living due to its affluent population and high-end amenities. Housing costs tend to be very high in Newport Beach, with many homes and properties being priced well above the national average. Other expenses such as dining out, entertainment, and shopping may also be relatively expensive in Newport Beach due to its reputation as a luxury destination. Approximately 69.2% of households in Newport Beach, California is occupied by their owners. This suggests that most residents in Newport Beach own the property they live in. Culture and tourism Newport Beach, California is known for its vibrant culture and thriving tourism industry. Newport Beach is home to some of Southern California's most beautiful beaches, including Balboa Peninsula, Newport Beach Pier, Corona del Mar State Beach, and Crystal Cove State Park. These beaches attract millions of tourists each year, making them a key part of Newport Beach's tourism industry. Newport Beach also has a thriving arts and culture scene, with several galleries, museums, and theaters in the area. Some of the most popular cultural attractions in Newport Beach include the Newport Theatre Arts Center, the Newport Harbor Art Museum, and the Newport Beach Film Festival. In addition to its beaches, Newport Beach offers plenty of opportunities for outdoor recreation, including hiking, biking, kayaking, and paddleboarding. The Back Bay Nature Preserve and Newport Bay Conservancy are popular spots for outdoor enthusiasts. 103 draft 16 Furthermore, Newport Beach is known for its high-end shopping and dining options, with several luxury retail centers and fine dining establishments in the area. Known for its beautiful outdoor setting, which includes fountains, gardens, and a koi pond. Some of the most popular stores at Fashion Island include Neiman Marcus, Bloomingdale's, Nordstrom, and Chanel. South Coast Plaza is a large, upscale shopping center located in nearby Costa Mesa. It features over 250 stores, including many high-end designer boutiques, as well as a range of restaurants and entertainment options. South Coast Plaza is known for its extensive collection of art and sculptures, including works by artists such as Henry Moore and Joan Miró. Some of the most popular stores at South Coast Plaza include Gucci, Louis Vuitton, Chanel, and Prada. Lastly, Newport Beach hosts a variety of events and festivals throughout the year, including the Newport Beach Film Festival, the Newport Beach Boat Show, and the Newport Beach Jazz Festival. These events draw visitors from all over the world and contribute to the city's vibrant culture and tourism industry. Traffic a) air traffic Newport Beach Airport, also known as John Wayne Airport (SNA), is a commercial airport located in Orange County, California, serving the cities of Newport Beach, Costa Mesa, and Santa Ana. John Wayne Airport is served by several major airlines, including American Airlines, Delta Air Lines, United Airlines, and Southwest Airlines. The airport has two terminals, Terminal A and Terminal B, which are connected by a pedestrian bridge. Facilities at John Wayne Airport include several restaurants, shops, and lounges, as well as car rental services and parking options. The airport is located approximately 10 miles from Disneyland and the Anaheim Convention Center and is a popular gateway for visitors to Southern California. In 2019, the airport served over 10 million passengers. The airport offers both domestic and international flights and is a popular gateway for visitors to Southern California. According to data from the Federal Aviation Administration (FAA), John Wayne Airport (SNA) had a total of 117,031 aircraft operations (takeoffs and landings) in 2019. Of those, 107,704 were commercial operations and 9,327 were general aviation operations. b) other transportation The most common mode of transportation in Newport Beach is by car. Visitors can rent a car at the John Wayne Airport or from several rental agencies throughout the city. The city has many public parking options, including metered street parking and public parking lots. Orange County also has public transportation options, including the Transportation Authority (OCTA), which provides bus services throughout Newport Beach and the surrounding areas. Bus routes include local, express, and commuter services, and most routes run seven days a week. Bus fares vary depending on the route and distance traveled. The Newport Beach Free Trolley is a free shuttle service that operates from May through September. The trolley runs a fixed route and stops at several popular attractions, including Balboa Pier, the Fun Zone, and the Newport Beach Civic Center. The Metrolink commuter rail service provides transportation to Newport Beach from other parts 104 draft 17 of Southern California, including Los Angeles and San Diego. The Newport Beach station is located on Industrial Way and serves the Orange County Line. Project site Location and expansion The hotel site is located in Newport Beach, California, on the western portion of Balboa’s beachfront. The Pacific Coast Highway runs right in front of the property, with easy access to the beach. The area attracts many surfers, bikers and beachgoers. The existing site area is a motel, which was sold by its original owners after a fire destroyed four of the rooms. The site is 8,813 sq ft with 4,406 sq ft of allowable floor area per code. The proposed development includes an extension of the first floor, which will include four hotel rooms, a café, lobby and storage space. The existing remaing floor area is comprised of 2,702 sq ft. The owner intends to perform a full renovation of the existing rooms within the hotel and build the new two-story structure fronting PCH. In total, there will be 12 guest rooms, 4 of which will be larger suites. Each room will have access to complimentary beach bikes, umbrellas and beach chairs in order for those to enjoy the beach in comfort, and the freedom to bike to neighboring attractions such as the Newport Pier, areas along the Balboa Peninsula and downtown Newport Beach. Each room has a full wet bar and mini- fridge, and one large suite, room 9, has a full kitchen as it was the prior owners’ home. This is the only kitchen on the property. All rooms have semi-private outdoor seating areas. The café will be another addition to the bottom floor of the new two-story structure. The café will provide a wide range of coffee drinks, as well as a selection of pastries in the morning for guests to enjoy to start their day.The space within the café will also serve as a “lobby” for guests to check-in, however the hotel will mainly serve as a self-service property. The lobby/coffee bar will be 392 sq ft., which is part of the 664 sq ft that will comprise less than half of the new 1 st floor development. The coffee bar will be open to the general public as well. On the east side of the property, 8 new parking lots will be made available to guests, free of charge. These spots will roughly be around 100 sq ft each. Demand generators Newport Beach, California has several key demand generators that contribute to its vibrant economy and tourism industry. Newport Beach is known for its beautiful beaches, which are a major draw for tourists and locals alike. The beaches offer a range of activities, including swimming, surfing, sunbathing, and beach volleyball. In addition to its beaches, Newport Beach has a thriving tourism industry, which is supported by a range of attractions, including museums, theaters, parks, and shopping centers. Popular tourist destinations in the area include Balboa Island, the Newport Beach Pier, and the Fashion Island shopping center. Newport Beach is home to a range of businesses and industries, including finance, healthcare, and technology. The city's high-income population and 105 draft 18 proximity to major business centers in Los Angeles and Orange County make it an attractive location for businesses. The city is also home to several prestigious universities and colleges, including the University of California, Irvine and Chapman University. These institutions contribute to the local economy by providing jobs and attracting students and faculty to the area. Lastly, Newport Beach offers a wide range of recreational opportunities, including hiking, biking, kayaking, and paddleboarding. The city's parks and nature preserves, such as the Back Bay Nature Preserve and Crystal Cove State Park, are popular destinations for outdoor enthusiasts. These demand generators, along with the city's high quality of life, contribute to Newport Beach's strong economy and make it an attractive destination for both businesses and visitors. Legal aspects Legal aspects, especially the analysis of property rights, building laws, and fiscal laws, were not subject of this study. Public utilities and services According to information provided to us, the site is connected to all necessary supply and disposal lines, or has the potential to be. 106 draft 19 Market To draw conclusions regarding the positioning and financial viability of the client’s proposed hotel, we carried out a comprehensive analysis of the local hotel market with a focus on the current and likely future competitors (existing capacities, amenities, etc). Within the scope of our market analysis, we looked at the existing relevant hotel supply in the Newport Beach area to assess overall market positioning and product offering. These hotels include smaller boutique hotels and large resorts ranging anywhere from 10 to 500 keys, with a positioning in the three to four-star segment (according to national standards). Furthermore, a location in the beach market, the range of facilities available and the quality level with regard to service, amenities and style were further criteria in identifying the hotels in the competitive set. We provide descriptions, as well as a rack rate analysis, on the following pages. Existing Supply of Lower-Cost Visitor Accommodations NBMC Section 21.48.025(C)(1)(a) defines lower-cost visitor accommodations as the “average daily room rate for all economy hotels and motels in the City that have room rates that are below the Statewide average daily room rate or lower. Economy hotels and motels are AAA-rated one or two diamond hotels, or equivalent.” Based upon our research, the City only has one lower-cost visitor accommodation facility, the 164-room Extended Stay America motel, located at 4881 Birch Street. This motel is located adjacent to John Wayne Airport and is sandwiched between the 405 and 73 freeways. The Project is not located anywhere near this lower-cost visitor accommodation facility, and the Project will have no impact on the lower-cost visitor accommodations provided at this facility. Geographic Competitive Set The following table provides an overview of the room supply of the geographic competitive set: Chart 4 capacity of relevant hotels hotel brand rooms f&b event spaces name name ##sq. ft. Balboa Bay Resort Independent 159 4 30,000 Newport Beach Marriot Bayview Marriott 254 1 3,000 Vea Newport Beach Marriott 532 3 68,102 Hyatt Regency Newport Beach Hyatt 407 2 26,000 Lido House Autograph Marriott 130 3 15,137 Balboa Inn, On the Beach Independent 45 2 3,000 Sonder Solarena Sonder 32 0 0 Ramada by Wyndham Wyndham 137 2 840 Doryman's Oceanfront Inn Independent 11 2 0 Newport Beach Hotel Independent 20 0 486 Average x 173 2 14,657 107 draft 20 Balboa Bay Resort: This 4-star resort is comprised of 159 keys with a mix of guest rooms and suites, all with private balconies overlooking the bay or gardens. The resort offers a range of amenities, including a full-service spa, a fitness center, a marina, and two waterfront restaurants. Additional amenities include a heated outdoor pool, as well as a variety of outdoor activities such as paddleboarding, kayaking and bike rentals. For events and meetings, the resort offers 20,000 sq ft of indoor and outdoor event space. Newport Beach Marriot Bayview:This 4-star hotel is comprised of 254 keys with spacious guest rooms and suites, all with modern décor and comfortable furnishings. The hotel offers a range of amenities, including a fitness center, outdoor pool and whirlpool. For dining, the hotel has an on-site California inspired menu curated for breakfast, lunch and dinner. The hotel has 3,000 sq ft of flexible event space, including a ballroom. 108 draft 21 VEA Newport Beach, A Marriot Resort & Spa: This 4-star resort is comprised of 397 guest rooms and suites, each with modern furnishings. The resort offers a wide range of amenities, including a full-service spa, fitness center, outdoor pool and multiple on-site restaurants and bars. The resort has 68,102 sq ft of event space, including a grand ballroom, outdoor venues, and smaller meeting rooms. It is situated steps from the beach, near Balboa/Fashion Island, and Newport Harbor. Hyatt Regency Newport Beach:This 4-star hotel is comprised of 407 keys, with a mix of guest rooms and 55 suites offering modern décor and furnishings. The hotel offers various amenities, including a fitness center, outdoor pool, and a hot tub. For dining, there are several on-site restaurants and bars with ocean views. The resort is built on 26-acres of property where there is over 32,000 sq ft of flexible event space, including a grand ballroom, meeting rooms and outdoor venues with garden views. Lido House Autograph Collection:This 4-star boutique hotel is comprised of 130 keys, with a mix of guest rooms and suites. Many of the suites feature private balconies or patios with views of the marina. The amenities on the property include a fitness center, outdoor pool and hot tub, and a full-service spa. They also provide activities/experiences such as sailing, paddleboarding and bike rentals. There is over 15,000 sq ft of indoor and outdoor event space, a grand ballroom and meeting rooms 109 draft 22 Sonder Solarena:This 3-star boutique hotel is comprised of 32 fully furnished guest rooms and suites with fully equipped kitchens, offering privates balconies with ocean views. This self-service hotel offers few amenities including a fitness center and a limited concierge service. The hotel also offers beach amenities, such as towels, chairs, and umbrellas. For dining, the hotel offers a rooftop bar and lounge where guests can enjoy craft cocktails and small plates. There are also communal BBQ grills and fire pits. It is a good option for extend stays or travelers looking for a more independent experience, and is located next door to the subject property. Newport Beach Hotel, Four Sisters Inn Collection:This 3-star boutique hotel is comprised of 20 keys, each with a unique décor, and some rooms featuring private balconies with ocean or city views. The hotel offers a daily breakfast buffet, and a communal living room with a fireplace and a selection of books and games. Other amenities include a rooftop deck with ocean views, and chairs and umbrellas for the beach. The hotel is situated a short walk away from the beach, harbor, and local attractions. 110 draft 23 Balboa Inn, On the Beach:This historic 3-star inn is comprised of 45 keys each with a classic beach house décor, with some of the rooms featuring private balconies with ocean views. The hotel offers several an on-site restaurant and a rooftop bar with panoramic views of the ocean and a beachside café. Other amenities include a fitness center, business center, and beach amenities such as towels, chairs, and umbrellas. The hotel is situated on the beachfront, which makes it easy for travelers to participate in water activities. Wyndham Costa Mesa/Newport Beach:This budget friendly 3-star hotel is comprised of 137 keys. The hotel offers a range of amenities including a fitness center, a business center, and an outdoor pool/hot tub. For dining, the hotel offers a daily complimentary breakfast buffet and an on-site restaurant which serves seafood. It borders between Costa Mesa and Newport Beach and is a short drive from the beach and attractions such as Disneyland, Knott’s Berry Farm, and South Coast Plaza shopping center. Doryman’s Oceanfront Inn:This 3-star boutique hotel is comprised of 11 rooms each furnished with a unique décor. Some of the rooms also feature private balconies with ocean front views. For dining, the hotel offers a complimentary continental breakfast and an on-site restaurant which serves seafood and American cuisine. Other amenities include beach amenities, such as chairs and umbrellas, as well as a communal living room with a fireplace. The hotel is situated on the Balboa Peninsula steps away from the beach. 111 draft 24 Demand for Lower-Cost Visitor Accommodations Based upon our research, there are no proposed lower-cost visitor accommodation developments in the City. This is likely due to the high cost of land in the City, which discourages investors from developing any lodging facilities in the lowest-priced segment, as it is financially infeasible. High land costs force investors to develop higher-priced lodging. This Project will not impact the proposed development of lower-cost visitor accommodations. Since there would be no loss to the supply of existing lower cost visitor accommodations due to the Project, the question is whether the Project would cause an increase in the demand for lower- cost visitor accommodations in the City. We are of the opinion that it would not. There has never been any correlation between the demand for lower-cost visitor accommodation and providing high- cost visitor accommodations. Similarly, redevelopment of a vacant and abandoned hotel site into a new high- cost visitor accommodations will not generate demand for additional lower-cost visitor accommodation. Newport Beach Municipal Code Section 21.48.025(C) categorizes hotels into three different levels by their average daily room rates, as follows: •High Cost •Moderate Cost •Low Cost The proposed high-cost hotel rooms at the Project’s site will be above the low cost visitor accommodations segment. Hotel guests staying in this range of accommodation have plenty of options for alternative lodging choices in the high cost classes, and would not likely end up staying in a low cost hotel. Virtually every other hotel in the City falls above the low cost category, and the supply of these alternative hotel choices is unchanged by the Project. Thus, the development of a 12 room boutique hotel would not create any new demand for the Extended Stay America, the single lower-cost visitor accommodation in the City. In summary, since neither the supply of, nor demand for existing lower-cost visitor accommodations is impacted by the Project, we conclude the Project will not have any impact on the City’s existing lower-cost visitor accommodations, and no mitigation measures are required. Occupancy and ADR According to the Visit California Monthly Research Dashboard for May 2023, the Average Daily Rate (ADR) for a hotel room in California was $188.00. The Pine Knot Motel Rate is projected to be $325.00, which is much higher than the average ADR. PKF also studied the pubished rates from the hotel sites within the market for an overall assessment of the price point and positioning. Based on our experience in the Southern Califiornia beach markets over the last decades, 112 draft 25 PKF is confident that demand for the rooms at the subject property will be strong, if positioned well amidst the competing options in the market. Rates The following table gives an overview of the published rates of the selected geographic comp hotels at specific dates (please note that the reservation requests were made online through each hotel’s respective website): Chart 5 published rates of geographic hotels – standard rooms, not suites The table above shows that the published rates of the competitive set hotels during peak demand season are in the range of $152 (Ramada by Wyndham) and $639 (Lido House Autograph Collection) for a standard room on a November weekend. During the low demand period, rates range between $144 (Ramada by Wyndham) and $549 (Lido House Autograph) for a standard room on a January weekday. The average published rate of the analyzed hotels for a January weekend is $351 and for a November weekday is $326. Rack rate to ADR ratio: Rack rates are the rates published by hotels, most easily found on their respective websites, often expressed in terms of standard, prepay, or package prices for different room types. The rack rate is the highest price a hotel will charge for a room, without any discounts or premiums. ADR (average daily rate) is a metric used to measure the average revenue a hotel receives for each occupied guest room per day. ADR differs from a rack rate in that it accounts for discounts and corporate rates, ultimately presenting a lower actual price based on revenue generated compared to the published rack rates. 113 draft 26 Fiscal Impact The renovation of the subject property, according to the owner’s new architectural plans, will require between $5.5 MM and $6 MM in total costs, including acquisition of the existing motel. Assuming standard market financing assumptions, these costs will require that the property achieve a healthy EBITDA. PKF has projected a 10-year operating proforma, based on our assessment of the market and the subject property plans. We have arrived at an ADR of $325 in today’s dollars and an occupancy of 75% in stabilized year 4. Including minimal additional income from the café’s F&B operations, the total revenues in year 4 are projected to be $1.657 milion. Assuming a limited-service model that relies on very few staff members, the projected EBITDA in year 4 is approximately $593,000, and, after a 3% replacement reserve, approximately $543,000, representing a 33% EBITDA margin. With a 50% LTC ratio for the construction financing, at a 10% interest rate, and an exit in year 10 with an 8% cap rate, the project IRR is below 14%. A lower cap rate of 7% yields an IRR of 15.5%. PKF believes that the property must operate at the projected revenue and cost targets in order to be a viable development for its investors. This does not include any suggested reductions in ADR on the property, as the rooms represent 74% of the property’s revenue. We arrived at the ADR based on the assessment of the comparable properties in the market: Balboa, Four Sisters and Dorymans. Properties in the area offer amenities elsewhere so the hotel needs to be well positioned in order to be competitive against the existing supply. We felt that these three properties were most similar in terms of occupancy and ADR rates, however in most cases, these three properties offered amenities including: an on-site restaurant or bar and limited event space. The Four Sisters generally reflects the ADR PKF believes could be achieved at the subject property, based on the number of keys, décor and the size of the property. PKF, based on a thorough site visit with first-hand market and industry intel, desktop research, and a review of similar domestic markets, concludes that the optimal positioning for a hotel product on the beach area site in Newport Beach, California is an upscale 12-key self service hotel. Given the nature of the market, the site’s location within an affluent residential community, proximity to the beach and various attractions (Newport Harbor, Balboa Peninsula and Newport Downtown. As a boutique hotel, the property will cater to a variety of guest segments including mainly leisure and smaller group business. The management of the small courtyard which is in the middle of the property will allow the hotel to cater to wedding parties, corporate events and conferences, and private parties. The site is within close driving distance to downtown Newport Beach, Huntington Beach and Cost Mesa, providing a well situated destination for leisure guests. 114 draft 27 The hotel’s positioning would sit in the middle of the 3-4-star supply of hotels in Newport Beach in terms of ADR. Within the supply of hotels we deemed most comparable, and ADR of $325 will stay competitive within the market and attract a wide range of travelers. Within the set of hotels in Newport Beach, an occupancy of 75% in stabilized year is in line with the citiy’s hotel supply. Total Rooms Rooms Available Rooms SoldOccupancy (%)ADR Room RevPAROperating RevenueRoom 1,010 73% 1,081 73% 1,155 74% 1,219 74% 1,249 73% 1,266 73% 1,338 74% 1,361 73% 1,395 73% 1,397 73%F&B 287 21% 299 20% 312 20% 328 20% 338 20% 348 20% 359 20% 370 20% 381 20% 392 20% Outlets / Other F&B 155 11% 160 11% 169 11% 174 10% 179 11% 184 11% 190 10% 196 11% 201 11% 208 11% Banquet/Conference/Catering 131 9% 139 9% 144 9% 155 9% 159 9% 164 9% 169 9% 174 9% 179 9% 185 10% Other Operated Departments 32 2% 34 2% 37 2% 38 2% 40 2% 40 2% 43 2% 44 2% 45 2% 45 2% Retail 10 1% 10 1% 11 1% 12 1% 12 1% 12 1% 13 1% 13 1% 14 1% 14 1% Minor Operated Department 22 2% 24 2% 26 2% 27 2% 28 2% 28 2% 30 2% 31 2% 32 2% 32 2% Miscellaneous Income 58 4% 62 4% 66 4% 72 4% 74 4% 75 4% 80 4% 82 4% 84 4% 85 4% Total Operating Revenue 1,386 100% 1,477 100% 1,571 100% 1,657 100% 1,701 100% 1,729 100% 1,820 100% 1,856 100% 1,905 100% 1,919 100% Departmental Expenses Room 254 25% 262 24% 270 23% 279 23% 286 23% 292 23% 301 22% 308 23% 316 23% 322 23% F&B 163 57% 169 57% 175 56% 182 55% 187 55% 193 55% 198 55% 204 55% 210 55% 216 55% Other Operated Departments 13 40% 14 40% 15 40% 15 40% 16 40% 16 40% 17 40% 18 40% 18 40% 18 40% Retail 7 75% 8 75% 8 75% 9 75% 9 75% 9 75% 10 75% 10 75% 10 75% 10 75% Minor Operated Department 6 25% 6 25% 6 25% 7 25% 7 25% 7 25% 8 25% 8 25% 8 25% 8 25%Total Departmental Expenses 429 31% 445 30% 461 29% 476 29% 489 29% 501 29% 516 28% 530 29% 544 29% 556 29% Departmental Profit Room 756 55% 819 55% 885 56% 940 57% 964 57% 973 56% 1,037 57% 1,053 57% 1,079 57% 1,075 56% F&B 124 9% 130 9% 137 9% 146 9% 151 9% 156 9% 161 9% 166 9% 171 9% 176 9% Other Operated Departments 19 1% 21 1% 22 1% 23 1% 24 1% 24 1% 26 1% 26 1% 27 1% 27 1% Minor Operated Department 17 1% 18 1% 19 1% 20 1% 21 1% 21 1% 23 1% 23 1% 24 1% 24 1% Miscellaneous Income 58 4% 62 4% 66 4% 72 4% 74 4% 75 4% 80 4% 82 4% 84 4% 85 4% Total Departmental Profit 957 69% 1,032 70% 1,110 71% 1,181 71% 1,212 71% 1,228 71% 1,304 72% 1,326 71% 1,361 71% 1,363 71% Undistributed Operating Expenses Administrative & General 251 18% 259 18% 252 16% 260 16% 267 16% 273 16% 281 15% 288 16% 295 16% 302 16% Information & Telecommunication Ser 28 2% 30 2% 31 2% 33 2% 34 2% 35 2% 36 2% 37 2% 38 2% 38 2%Sales & Marketing 92 7% 98 7% 105 7% 111 7% 113 7% 115 7% 122 7% 124 7% 127 7% 127 7%Property Operation & Maintenance 63 5% 65 4% 66 4% 68 4% 70 4% 71 4% 73 4% 75 4% 77 4% 79 4% Utilities 42 3% 44 3% 47 3% 50 3% 51 3% 52 3% 55 3% 56 3% 57 3% 58 3%Total Undistributed Expenses 475 34% 496 34% 502 32% 522 31% 535 31% 546 32% 567 31% 580 31% 594 31% 604 31%Gross Operating Profit 482 35% 535 36% 608 39% 659 40% 677 40% 682 39% 737 40% 747 40% 767 40% 759 40%Income Before Non-Operating Income 482 35% 535 36% 608 39% 659 40% 677 40% 682 39% 737 40% 747 40% 767 40% 759 40% Non-Operating Income and Expenses Property and Other Taxes 52 4% 52 4% 52 3% 52 3% 52 3% 52 3% 52 3% 52 3% 52 3% 52 3% Insurance 12 1% 13 1% 13 1% 14 1% 14 1% 15 1% 15 1% 16 1% 16 1% 16 1% Total Non-Operating Income and Expe 64 5% 65 4% 66 4% 66 4% 67 4% 67 4% 68 4% 68 4% 69 4% 69 4% EBITDA 417 30% 471 32% 542 35% 593 36% 610 36% 615 36% 669 37% 679 37% 698 37% 690 36% Repalcement Reserve 36 3% 44 3% 47 3% 50 3% 51 3% 52 3% 55 3% 56 3% 57 3% 58 3% EBITDA less Replacement Reserve 382 28% 426 29% 495 32% 543 33% 559 33% 563 33% 614 34% 623 34% 641 34% 633 33% $423 4,380 4,380 4,392 3,343 3,343 3,272 $341 $323 12 75%$435 $324 4 Year 2 2027 5 Year 3 2028 6 Year 4 2029 7 Year 5 2030 2031 8 9 Year 6 Year 7 Year 8 $377 $284 12 75%$387 $288 $398 $307 12 76%$410 $313 4,380 4,392 4,380 3,303 3,272 3,373 $230 12 70%$349 $246 $358 $263 12 75%$368 $277 4,380 2,953 4,392 4,380 4,380 3,093 3,216 3,303 6320 WCH Hotel Proforma - Full Year P&L ('000) 12 67% 12 73% 12 75%77% 12 12 76% 2025 3 Year 1 2026 2033 2034 Year 9 Year 10 2032 10 11 12 115 draft 28 Concluding Remarks In summary, it is not feasible to include lower-cost visitor accommodations on the Project site. This infeasibility is due to the site’s high land value, the Project’s high development costs, and the small site size. Additionally, since neither the supply of, nor demand for existing lower-cost visitor accommodations is impacted by the Project, we conclude the Project will not have any impact on the City’s existing lower-cost visitor accommodations, and no mitigation measures are required under Newport Beach Municipal Code Section 21.48.Based on the assessment of the hotel supply in the market and broader Orange County area, the proposed hotel should perform well with a $325 ADR, achieving 75% occupancy overall. The seasonality will drive these up and down, but the hotel benefits from being a 7-days a week operation, not a resort-only or business-only market. Guests who enjoy self service with the ease of checking in and checking out, and appreciate the freedom that this hotel will offer will provide a well positioned hotel within the Newport area market. Family and group stays can be a draw, as there are a handful of larger rooms which can accommodate families and larger parties of friends or retreats. nenewThe financial performance of the hotel rests almost entirely on the room rentals, and therefore rate is critical to maintain the property’s viability. PKF believes the hotel will have to push as much on rate as it can, without offering the on-site amenities that many of its competitors offer. A forced cap on room rates would therefore be very damaging to the overall returns. PKF remains available to comment on the analysis provided. Thank you, Channing Henry 116 1 From: Tori Rimlinger <tori.rimlinger@compass.com> Sent: November 29, 2023 9:35 AM To: Perez, Joselyn <JPerez@newportbeachca.gov> Subject: Pine Knott location project [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Joselyn, I would like to express my support for the project at 6302 W. Coast Highway (the former Pine Knott Motel location). As a homeowner, resident, and volunteer in Newport Shores for 29 years (326 62nd Street, Newport Beach, CA 92663), I am eagerly anticipating the improvements at this location. I am also grateful that there is a group willing to invest in the old Pine Knott. This property has been a concern for many years. Not only is it an eyesore, but it has also been attracting homeless individuals and drawing unwanted attention to our neighborhood. Their proposed plans of a trendsetting, boutique hotel will transform one of the main entrances to Newport Shores and will foster pride and future enhancements along this section of PCH. Once again, I would like to express my support for this project, and I hope the city will allow this to move forward swiftly. Thank you, Tori Rimlinger Realtor® GREEN DRE#: 01512376 https://toririmlinger.com 341 Bayside Dr Newport Beach CA 92660 m: 949.378.6200 Planning Commission - December 7, 2023 Item No. 2a - Additional Materials Received After Printing Agenda Pine Knot Motel Appeal (PA2023-0027) 2 Planning Commission - December 7, 2023 Item No. 2a - Additional Materials Received After Printing Agenda Pine Knot Motel Appeal (PA2023-0027) From:Perez, Joselyn To:Garren Grieve Cc:Hilary Grieve; Rodriguez, Clarivel; Leon, Jasmine; Martinez, Savannah Subject:RE: Pine Knot Rebuild Date:November 29, 2023 10:01:36 AM Attachments:image001.png Thank you for your comment. We will add it to the record so it can be considered by the Planning Commission. Sincerely, Joselyn Perez Associate Planner Community Development Department Office: 949-644-3312 100 Civic Center Drive Newport Beach, CA 92660 From: Garren Grieve <garren@dineseaside.com> Sent: November 29, 2023 9:58 AM To: Perez, Joselyn <JPerez@newportbeachca.gov> Cc: Hilary Grieve <hilaryggrieve@gmail.com> Subject: Pine Knot Rebuild [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Good morning Joselyn, My wife Hilary and I live at 218 Prospect in Newport Shores, 2-doors down from the Pine Knot. We are supportive of the property's proposed re-build into its original usage as the current state of the property is completely unacceptable and has been for years. It is a shameful and dangerous embarrassment to our community and needs immediate attention. Given the proximity, we request the city mandate that the project owners take all precaution during the rebuilding process to eliminate dangerous dust and other particles that could come from the project as the onshore winds come right into our home and our neighbor's homes. The concern with them not doing a full tear down is the remaining chemicals and asbestos which are clearly present there will not be fully remediated safely and could present a danger to our family as we have two young children. Our hope is the city has a process for that and oversees that process strictly. Besides that, we are supportive and want the project to move forward so we have a nicer entrance to our community with this property's refresh. Thanks, Garren Grieve Planning Commission - December 7, 2023 Item No. 2a - Additional Materials Received After Printing Agenda Pine Knot Motel Appeal (PA2023-0027) From:Tori RimlingerTo:Perez, Joselyn Cc:Rodriguez, Clarivel; Martinez, Savannah; Leon, JasmineSubject:Re: Pine Knott location project Date:November 29, 2023 10:27:11 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Thank you, Joselyn! We are thrilled to see improvements on this corner, especially the proposed plan. Having an upscale, trend setting hotel in ourneighborhood will set the bar for future projects. Also, I’m excited for my visitors to have this type of hotel option. Thank you, once again, Tori RimlingerRealtor® GREENDRE#: 01512376https://toririmlinger.com 341 Bayside DrNewport Beach CA 92660m: 949.378.6200 On Nov 29, 2023, at 10:00 AM, Perez, Joselyn <JPerez@newportbeachca.gov> wrote: Thank you for your comment. We will add it to the record so it can be considered by the Planning Commission. Sincerely, <image001.png>Joselyn PerezAssociate PlannerCommunity DevelopmentDepartment Office: 949-644-3312 100 Civic Center DriveNewport Beach, CA 92660 From: Tori Rimlinger <tori.rimlinger@compass.com> Sent: November 29, 2023 9:35 AM To: Perez, Joselyn <JPerez@newportbeachca.gov> Subject: Pine Knott location project [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Joselyn, I would like to express my support for the project at 6302 W. Coast Highway (the former Pine Knott Motel location). As a homeowner, resident, and volunteer in Newport Shores for 29 years (326 62nd Street, Newport Beach, CA 92663), I am eagerly anticipating the improvements at this location. I am also grateful that there is a group willing to invest in the old Pine Knott. This property has been a concern for many years. Not only is it an eyesore, but it has also been attracting homeless individuals and drawing unwanted attention to our neighborhood. Their proposed plans of a trendsetting, boutique hotel will transform one of the main entrances to Newport Shores and will foster pride and future enhancements along this section of PCH. Once again, I would like to express my support for this project, and I hope the city will allow this to move forward swiftly. Thank you, Tori Rimlinger Realtor® GREEN DRE#: 01512376 https://toririmlinger.com Planning Commission - December 7, 2023 Item No. 2a - Additional Materials Received After Printing Agenda Pine Knot Motel Appeal (PA2023-0027) From:Perez, Joselyn To:Gwen Lopez Ozieblo Cc:Rodriguez, Clarivel; Martinez, Savannah; Leon, Jasmine Subject:RE: Pine Knott Motel Date:November 29, 2023 10:43:19 AM Hi Gwen, Thank you for your comment. We will add it to the record so it can be considered by the Planning Commission. Sincerely, Joselyn PerezAssociate PlannerCommunity Development DepartmentOffice: 949-644-3312 100 Civic Center DriveNewport Beach, CA 92660 -----Original Message-----From: Gwen Lopez Ozieblo <gozieblo@yahoo.com>Sent: November 29, 2023 10:28 AMTo: Perez, Joselyn <JPerez@newportbeachca.gov>Subject: Pine Knott Motel [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the contentis safe. Dear Joselyn, I would like to express my support for the project at 6302 W. Coast Highway (the former Pine Knott Motellocation). As a homeowner and resident of Newport Shores for 14 years, I am eagerly anticipating the improvementsat this location. I am also grateful that there is a group willing to invest in the old Pine Knott. This property has been a concern for many years. Not only is it an eyesore, but it has also been attracting homelessindividuals and drawing unwanted attention to our neighborhood. Their proposed plans of a trendsetting, boutique hotel will transform one of the main entrances to Newport Shoresand will foster pride and future enhancements along this section of PCH. Once again, I would like to express my support for this project, and I hope the city will move forward swiftly. Thank you, Gwen Ozieblo949-205-9387 Sent from my iPhone Planning Commission - December 7, 2023 Item No. 2a - Additional Materials Received After Printing Agenda Pine Knot Motel Appeal (PA2023-0027) From:Neal Shehab To:Planning Commission Cc:Mike Greer; srgale@gmail.com; Calling Is beth AKA Rappette Hot Girlfriend Who part time resides with you worth The Wait Subject:Pine Knot Date:November 29, 2023 10:49:29 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To whom it may concern, I have been a resident of Newport Shores for over 20 years. The fire at the Pine Knot was oneof the worst things for our neighborhood. We were so glad someone would come in and redo the place and bring back the luster to the Pine Knot. Please move forward with the Pine Knot renovation ASAP. The existing site is a eye sore andis bringing our property values down. The half burnt down, green fenced currant Pine Knot is home to vagrants who sneak in at night and sleep. This is a terrible entrance to Newport Beach. Please proceed with the project ASAP!!! -- Sincerely, Neal Shehab World Wide Sales Group (949) 244-2736 nealshehab@gmail.com https://www.mulehide.com/ https://ecostarllc.com https://www.oxengineeredproducts.com/ Planning Commission - December 7, 2023 Item No. 2a - Additional Materials Received After Printing Agenda Pine Knot Motel Appeal (PA2023-0027) From:Michelle Steinhardt To:Planning Commission; Mike Greer; srgale@gmail.com Cc:Neal Shehab Subject:Re: Pine Knot Date:November 29, 2023 11:08:27 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To whom it may concern, As a resident of Newport Shores, I am devastated that a fire destroyed the iconic Pine Knot Motel. However m,what is even more devastating is that it has been an eyesore and magnet for vagrants and drug users ever since.When I heard that someone was going to rehab the Pine Knot and turn it into a cute motel again, I was thrilled. Sowas everyone in the be that I’ve spoke to about this. Please move forward with the Pine Knot renovation ASAP. The existing site is a eye sore and is bringing ourproperty values down. Please proceed with the project ASAP! Thanks in advance, Michelle Steinhardt > On Nov 29, 2023, at 10:49 AM, Neal Shehab <nealshehab@gmail.com> wrote:>> To whom it may concern,>> I have been a resident of Newport Shores for over 20 years. The fire at the Pine Knot was one of the worst thingsfor our neighborhood. We were so glad someone would come in and redo the place and bring back the luster to thePine Knot.>> Please move forward with the Pine Knot renovation ASAP. The existing site is a eye sore and is bringing ourproperty values down.>> The half burnt down, green fenced currant Pine Knot is home to vagrants who sneak in at night and sleep. This is aterrible entrance to Newport Beach.>> Please proceed with the project ASAP Planning Commission - December 7, 2023 Item No. 2a - Additional Materials Received After Printing Agenda Pine Knot Motel Appeal (PA2023-0027) From:Sean Pence To:Planning Commission Cc:Mike Greer; srgale@gmail.com; Julia Pence; sean@auctuslaw.com Subject:Pine Knot Motel Redevelopment Date:November 29, 2023 11:39:31 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To whom it may concern: I fully support the proposed redevelopment of the Pine Knothotel on PCH in Newport Beach. While I'm unable to attendthe planning commission meeting next week, please pass alongmy support of the project and my opposition to the proposalby Mr. Sims on November 28, 2023.Best, Sean Pence3 Canal Circle714.351.7720 Planning Commission - December 7, 2023 Item No. 2a - Additional Materials Received After Printing Agenda Pine Knot Motel Appeal (PA2023-0027) From:Garren Grieve To:Perez, Joselyn Cc:Hilary Grieve; Rodriguez, Clarivel; Leon, Jasmine; Martinez, Savannah Subject:Re: Pine Knot Rebuild Date:November 29, 2023 1:14:07 PM Attachments:image001.png [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Thank you On Wed, Nov 29, 2023 at 10:01 AM Perez, Joselyn <JPerez@newportbeachca.gov> wrote: Thank you for your comment. We will add it to the record so it can be considered by thePlanning Commission. Sincerely, Joselyn Perez Associate Planner Community Development Department Office: 949-644-3312 100 Civic Center Drive Newport Beach, CA 92660 From: Garren Grieve <garren@dineseaside.com> Sent: November 29, 2023 9:58 AMTo: Perez, Joselyn <JPerez@newportbeachca.gov>Cc: Hilary Grieve <hilaryggrieve@gmail.com>Subject: Pine Knot Rebuild [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know Planning Commission - December 7, 2023 Item No. 2a - Additional Materials Received After Printing Agenda Pine Knot Motel Appeal (PA2023-0027) the content is safe. Good morning Joselyn, My wife Hilary and I live at 218 Prospect in Newport Shores, 2-doors down from the PineKnot. We are supportive of the property's proposed re-build into its original usage as thecurrent state of the property is completely unacceptable and has been for years. It is ashameful and dangerous embarrassment to our community and needs immediate attention. Given the proximity, we request the city mandate that the project owners take all precautionduring the rebuilding process to eliminate dangerous dust and other particles that couldcome from the project as the onshore winds come right into our home and our neighbor'shomes. The concern with them not doing a full tear down is the remaining chemicals andasbestos which are clearly present there will not be fully remediated safely and could presenta danger to our family as we have two young children. Our hope is the city has a process forthat and oversees that process strictly. Besides that, we are supportive and want the project to move forward so we have a nicerentrance to our community with this property's refresh. Thanks, Garren Grieve Planning Commission - December 7, 2023 Item No. 2a - Additional Materials Received After Printing Agenda Pine Knot Motel Appeal (PA2023-0027) From:will anderson To:Planning Commission Subject:Pine Knot Hotel Date:November 29, 2023 2:29:44 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear planning Commission, I am 39 years old and born and raised in Newport Beach I am excited for the Pine Knot Hotel development and the improvement it will bring to the area. Prior to the fire of the old hotel, it was run-down and dated. I know the new developmentwill elevate the area and attract a good clientele. Thank you for allowing this to happen Regards, -- Will Anderson(949) 351-6030 Planning Commission - December 7, 2023 Item No. 2a - Additional Materials Received After Printing Agenda Pine Knot Motel Appeal (PA2023-0027) From:Carter Harrington To:Planning Commission Subject:Pine Knot Date:November 29, 2023 3:01:39 PM Attachments:image001.png image002.png image003.png image004.png image005.png image006.png image007.png image008.png image009.png [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To whom it may concern I am very excited about the new re-imagined hotel in the city of Newport beach. The property has been an eye sore for too long and the current owners’ vision will be sure to create value in the community. I don’t know why anyone would appose this opportunity. Carter Harrington Senior Vice President | Principal Lee & Associates | Newport Beach D 949.724.4710 C 949.202.9439 O 949.724.1000 charrington@lee-associates.com Corporate ID 01197433 | DRE 01762924 100 Bayview Circle | Suite 600 Newport Beach , CA 92660 View My Listings | View Our Research | View My LinkedIn | Join Lee & Associates Confidentiality Notice: The information contained in this electronic e-mail and any accompanying attachment(s) is intended only for the use of the intended recipient and may be confidential. If any reader of this communication is not the intended recipient, unauthorized use, disclosure or copying is strictly prohibited, and may be unlawful. Ifyou have received this communication in error, please immediately notify the sender by return e-mail, and delete the original message and all copies from your system. Any information, including third party information, shall be verified as the accuracy and recipient shall be responsible for verifying any and all information as to its accuracy. Electronic Communication: This email shall stand alone and cannot be consolidated or integrated with other correspondences to form a contract. Planning Commission - December 7, 2023 Item No. 2a - Additional Materials Received After Printing Agenda Pine Knot Motel Appeal (PA2023-0027) From:Carey Ransom To:Planning Commission; Dept - City Council Subject:Support for Pine Knot Motel upgrade project Date:November 30, 2023 6:13:15 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Planning Commission & City Council: I’m a nearly 15 year homeowner and resident of Newport Shores, and have for far too long endured the eyesore and blight to our community that the now-vacant Pine Knot Motel has become. It’s such a shame that in a city as beautiful as ours that we’ve had such trouble upgrading it, especially as it’s seen by thousands of entrants to our city from Huntington Beach via PCH every day. We need something new and iconic to replace it, and I’m fully supportive of the new project being proposed and what it will do to re-energize this property. The surrounding commercial area has been slowly improving as well, and as a community we will continue to support and encourage it. If I can be of any further assistance or help, please let me know. Best, Carey Ransom 431 Lugonia St M) 310-699-8107 From my iPhone - sorry for typos! Planning Commission - December 7, 2023 Item No. 2b - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) From:Matt Hardke To:Planning Commission Subject:Support for Redevelopment of 6302 W Coast Hwy - Newport Beach CA Date:December 01, 2023 2:14:28 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Newport Beach Planning Commission, Just wanted to show my support for the redevelopment of the former Pine Knot Motel at 6302 West Coast Hwy, Newport Beach, CA 92663. I'm excited to see the property drasticallyimproved and revitalized. The project benefits Newport Beach residents and visitors alike. Thank you, Matt Hardke | Vice President 23 Corporate Plaza Drive, Suite 150, Newport Beach, CA 92660 matt@graystoneca.com | www.graystoneca.com O: 949.942.1303 | M 949.929.0558 | CA: 01946266 Join Graystone's Email Distribution List for Exclusive Inventory! This email may contain information that is confidential or attorney-client privileged and may constitute inside information. The contents of this emailare intended only for the recipient(s) listed above. If you are not the intended recipient, you are directed not to read, disclose, distribute or otherwise usethis transmission. If you have received this email in error, please notify the sender immediately and delete the transmission. Delivery of this message isnot intended to waive any applicable privileges. This email may contain information that is confidential or attorney-client privileged and may constitute inside information. The contents of this emailare intended only for the recipient(s) listed above. If you are not the intended recipient, you are directed not to read, disclose, distribute or otherwise usethis transmission. If you have received this email in error, please notify the sender immediately and delete the transmission. Delivery of this message isnot intended to waive any applicable privileges. Planning Commission - December 7, 2023 Item No. 2b - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) From:Brad AlewineTo:Planning Commission Subject:PROPOSED PROJECT AT 6302 WEST COAST HWY, NEWPORT BEACH CALIFORNIA Date:December 03, 2023 10:41:11 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Members of the Newport Beach Planning Commission, Please accept this electronic communication as my show of support for the redevelopment of the former Pine Knot Motel at 6302 West Coast Hwy, Newport Beach, CA 92663. I am familiar with the current ownership and their vision for the property as well as their history of other successful projects. It will be great to see the property drastically improved and revitalized to continue to provide lodging service for visitors to Newport Beach, while preserving a little piece of the historic charm people love about our coastal community. As a resident of Newport Beach, I believe the project benefits Newport Beach residents and visitors alike. Brad S. AlewineREALTOR®Broker AssociateDRE#: 01104973 341 Bayside Drive Newport Beach, CA 92660 m: 951.347.8832 Planning Commission - December 7, 2023 Item No. 2b - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) From:Bill Hendricksen To:Planning Commission Subject:Support for Redevelopment of 6302 W. Coast HWY - Newport Beach Date:December 03, 2023 3:44:12 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Newport Beach Planning Commission, Just wanted to show my support for the redevelopment of the former Pine Knott Motel at 6302 West Coast Hwy, Newport Beach, CA 92663. It’s is about time this location was upgraded which will improve the entire area for all Newport Beach residents. Thank you, Bill Hendricksen 443 Harbor Island Drive Newport Beach, CA 92660 Planning Commission - December 7, 2023 Item No. 2b - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) From:Ryan Long To:Planning Commission Subject:6302 W. Coast Highway Date:December 04, 2023 2:54:07 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Hello Planning Commission, I like to share with you my letter to Mr. Kevin Giz regarding 6302 W. Coast Highway. Regards, Ryan Long 419 Prospect St. Thank you Kevin, for taking the time to update me on your project at 6302 W. Coast Highway where the Pine Knott Motel stood. As a multiple homeowner and resident in Newport Shores for ten plus years, I like to thank you for your action to invest in the area. This property has been an issue for many years and continues to be in the abandoned state that it is. The plans you have proposed will not only transform a main entrance into the neighborhood but should spark continued investment along PCH and the neighborhoods surrounding it. As a Newport Shores Community Association (NSCA) board of director for the past eight years, the one question I continually get asked is the status of “The Pine Knott”. I can confirm with you that all members of the NSCA are excited for the demolition of one of the biggest eye sores in the city and investment by local residents such as your self. I look forward to watching the transformation. Regards, Ryan Long Planning Commission - December 7, 2023 Item No. 2b - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) From:hmbaher@aol.com To:Planning Commission Subject:Pine Knot Motel Date:December 04, 2023 7:06:45 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Newport Beach Planning Commission, We want to show our support for the former Pine Knot Motel development at 6302 West Coast Hwy in Newport Beach. We are excited to see the great revitalization of this site and feel it can represent our wonderful City properly to our residents and all visitors in upcoming years. Regards, H. Baher Planning Commission - December 7, 2023 Item No. 2b - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) December 7, 2023, Planning Commission Item 2 Comments These comments on a Newport Beach Planning Commission agenda item are submitted by: Jim Mosher (jimmosher@yahoo.com ), 2210 Private Road, Newport Beach 92660 (949-548-6229). Item No. 2. PINE KNOT MOTEL CDP (PA2023-0027) Summary of Key Points.................................................................................................................1 Background....................................................................................................................................2 Is a Coastal Development Permit Required?.................................................................................2 What Did the Fire Do?...................................................................................................................3 Was the Pre-Fire Pine Knot a Nonconforming Use or a Nonconforming Structure or Both?........ 3 Is PA2023-0027 a Restoration or a New Project?.........................................................................4 Is the Feasibility and Impact Assessment Adequate?...................................................................5 How Many Low Cost Rooms Need to be Mitigated?.....................................................................7 How Was the $25,000 Per Room In-Lieu Fee Determined?......................................................... 8 What Does $25,000 Buy?..............................................................................................................9 Miscellaneous Observations........................................................................................................10 Conclusions................................................................................................................................. 11 Summary of Key Points As the appellant in this matter, I feel the following key questions regarding this application merit review by the Planning Commission: ● Considering hotels and motels currently require a conditional use permit and the right to continue a nonconforming use normally lapses after 6 months of non-use, should this facility be allowed to reopen without a CUP? More than five years has elapsed since a fire caused its temporary closure, and the “rehabilitation” project being offered is for something different (a high cost hotel) than what existed before (a low cost motel). 1 ● Does the Commission agree that parking demand will be much lower than that anticipated in the code? Does the CDP need conditions of approval regarding this and other operational aspects? The impact seems difficult to assess without knowing how many employees will be onsite or how they will be handled. ● How many low cost accommodations will be lost to the city as a result of the “rehabilitation”? Staff asserts the number is three, but it could be as high as twelve. ● What mitigation is needed in light of the City’s commitment to preserve low cost overnight visitor accommodations? Staff’s proposal of a one-time payment of $25,000 for each low cost room lost or not provided seems inadequate to make up for the loss. 1 Since the architect appears to be largely retaining the modest look of the original Pine Knot Motel, I’m not sure how it will attract high paying ($325 ADR) guests, but I rely on the staff report for the assertion that this is the new owner’s intent. Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) December 7, 2023, PC Item 2 (PA2023-0027) comments - Jim Mosher Page 2 of 12 Background Over many years, an increasing number of the decisions once made by our fellow citizens on the Planning Commission, including now approval of all coastal development permit applications, have been offloaded to staff level decision making, albeit at public hearings, originally by a three-member modifications committee and now by a single Zoning Administrator.2 Those hearings are not closely followed by the public, so without taking anything away from the professionalism of our City staff, one hopes the matters heard by them are routine and decisions required of them fairly simple. While I appreciate the neighbors' frustration with the continuing blight at the site, and their wish for a speedy resolution, as I suggested at the the September 28 Zoning Administrator hearing, this seemed an application of sufficiently unique complexity that referral to the Planning Commission, as allowed by NBMC Subsection 21.62.040.A.2, might be merited, so that seven minds, rather than one, could agree on the interpretations necessary to apply the City’s codes to the facts presented. The following sections detail aspects of the staff analysis in which I believe reasonable minds could differ as to the application of the City’s codes to this proposal. Is a Coastal Development Permit Required? Section 21.52.035 of the City’s Local Coastal Program Implementation Plan exempts certain development from the requirement to obtain a CDP. As best I can tell, the proposed resolution does not explain why the application being appealed was before the Zoning Administrator. However, at the top of handwritten page 9, the staff report says “a CDP is required because the rehabilitation project includes the construction of an additional story that increases the existing structure’s height by more than 10%.” That statement in the staff report appears to be a reference to Subsection 21.52.035.C.6, which allows the replacement without a CDP of structures destroyed by disaster, 3 but limits the exemption, among other things, to replacement structures that stay within 10% of the height, floor area and bulk of the destroyed structures. However, independent of disasters, Subsection 21.52.035.C.2 would appear to more liberally allow “improvements” to existing nonresidential structures without a CDP, with the 10% height increase limitation applying only to geographic areas which this site is not within. So, neither the staff report nor the resolution clearly explain why a CDP is required. I would argue the reason a CDP is required stems not from the request for a more than 10% height increase, but rather from the scrutiny required by Section 21.48.025, which appears to 3 “Disaster” includes, by definition in Chapter 21.70, “accident”# but not “deterioration due to age, or other structural damage due to ongoing exposure to natural elements that was foreseeable and preventable through reasonable due diligence.” 2 The staff level modifications committee was created in 1968 by City Council Ordinance No. 1268, and the Zoning Administrator position by Ordinance No. 2004-25. Review of all standalone coastal development permits, something the Planning Commission has relatively little experience with, was added to the Zoning Administrator’s docket when CDP granting authority was handed over to the City in early 2017. Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) December 7, 2023, PC Item 2 (PA2023-0027) comments - Jim Mosher Page 3 of 12 define as development needing CDP review both “the development of new visitor accommodations” and “the expansion, reduction, redevelopment, demolition, conversion, closure, or cessation of existing visitor accommodations.” What Did the Fire Do? The staff report (starting at the bottom of handwritten page 5) says “On April 10, 2018, a structure fire occurred within the southwestern corner of the property and significantly damaged the motel. The Chief Building Official red-tagged (unsafe to enter) rooms 1 through 4, shown below in Figure 2, with the remainder of rooms yellow-tagged (given limited access to retrieve personal items only),” and shows a dramatic photo of the devastation to the four rooms (“Figure 2: Red tagged motel rooms, prior to demolition”). The staff report goes on to say “Rooms 1 through 4 were demolished in accordance with Emergency Coastal Development Permit No. ECD2018-150. A copy of ECD2018-150 is included as Attachment No. PC 5. The remaining units not demolished as part of ECD2018-150 are uninhabitable and have sat unused since the fire.” Attachment No. PC 5 adds to this description of the damage that “The structure was declared unsafe to enter for Units 1 through 5, and no occupancy posted for the remainder of the units. On April 10, 2018, a City of Newport Beach (City) building inspector posted an "Unsafe Do Not Enter" placard on the project. On May 3, 2018, the Chief Building Official declared that the subject structure was an attractive nuisance and unsafe structure pursuant to California Building Code (CBC) § [A] 116.1. The Chief Building Official required the property owner to obtain a permit to demolish the unsafe structure or submit plans to the City for the reconstruction, within 30 days.” Since the emergency permit4 allowed the demolition of only 4 unsafe units, it is unclear to me how much damage the fire caused to the remainder of the structure and whether the reference in it to 5 units (“1 through 5”) having been red-tagged might be a typo. More importantly, it is unclear if anyone reassessed the extent of damage after the demolition of Units 1 through 4, and whether the eight remaining guest rooms and the owner’s residence, office and lobby remain unused because they are “uninhabitable” as a result of the fire or for some other reason or combination of reasons. Was the Pre-Fire Pine Knot a Nonconforming Use or a Nonconforming Structure or Both? Section 21.16.060 of the City’s Local Coastal Program Implementation Plan prohibits development approved under it from proceeding until all other required permits have been obtained. 4 The Director’s decision on emergency CDP’s is not appealable, however NBMC Subsection 21.52.025.C requires the Director to “submit a report to the California Coastal Commission and the Planning Commission detailing the review and approval process, including the nature of the emergency and the remedial, protective, or preventive work required to deal with the emergency.” It is unclear how or if Permit No. ECD2018-150 was reported to the Planning Commission. A search of the PC agendas and minutes from April 1 to October 1, 2018, finds no mention of it. Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) December 7, 2023, PC Item 2 (PA2023-0027) comments - Jim Mosher Page 4 of 12 Among the other permits that might be required by our Municipal Code is a conditional use permit. Sections 1.5 and 1.6 of the proposed resolution conclude a CUP is not required for the present project, because it is a reestablishment, without intensification, of a nonconforming use. Handwritten page 8 of the staff report says the pre-fire Pine Knot Motel was considered a nonconforming use due its operation without the conditional use permit now required for motels by Title 20 of our Municipal Code, and asserts the current application is an exercise of the current owner’s “by right” authority to reestablish the use under NBMC Section 20.38.080 (Repair of Damaged or Partially Destroyed Nonconformities) and to modify it under NBMC Section 20.38.050 (Nonconforming Uses). 5 Since the pre-fire Pine Knot Motel apparently provided only nine off-street parking spaces for 12 guest rooms (plus the previous owner or caretaker’s residence) it would seem it could also be regarded as a nonconforming structure, because both Title 20 and Title 21 currently require motels to provide 1 parking space per guest room (NBMC Section 20.40.040 and Section 21.40.040). Although parking requirements are typically associated with uses rather than structures, a motel structure is built for a very specific use and has a clear parking requirement as listed in the “development standards” in Table 1 of the current staff report. Furthermore, NBMC Section 20.38.060 and Section 21.38.060 (Nonconforming Parking) refer to “structures and uses [that] are nonconforming because they do not provide the required number of parking spaces.” In that connection, I believe a residential structure with inadequate parking is regarded as a nonconforming structure to which limited additions can be made without correcting the deficiency. The distinction could be important because there are different rules for restoring a nonconforming structure versus resuming a nonconforming use. Is PA2023-0027 a Restoration or a New Project? Under NBMC Section 20.38.090 (Termination of Nonconforming Status), the Pine Knot Motels's ability to operate without a CUP would have expired after 180 days of non-use, but there is an leniency for uses interrupted by disaster whose restoration is diligently pursued. Without that exception, it would be processed as a new application. With regard to the Pine Knot, the staff report and proposed resolution seem to want to have it both ways: for purposes of Title 20 and the need for motels to have a CUP, this is the restoration of a use interrupted by fire; while for purposes of the Title 21 and the need to preserve low cost visitor accommodations, it is an entirely new motel application unrelated to the prior use of the property as a motel. 5 For purposes of the Coastal Development Permit, which was the subject of the September 28 Zoning Administrator hearing, the development has to be consistent with the Municipal Code, but also with the corresponding sections of the City’s Local Coastal Program, which in this case are NBMC Section 21.38.080 and Section 21.38.050 Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) December 7, 2023, PC Item 2 (PA2023-0027) comments - Jim Mosher Page 5 of 12 Section 1.5 of the proposed resolution (handwritten page 21) cites NBMC Section 20.38.080 (‘Repair of Damaged or Partially Destroyed Nonconformities’) for its authority to describe this an application to reestablish an involuntarily interrupted use. However, while Section 1.5 of the proposed resolution asserts “The previous owners diligently pursued a viable rehabilitation plan, after the fire and through the COVID-19 pandemic, that balanced both financial feasibility with providing a motel,” no indication is provided of what that rehabilitation plan may have been, or if any applications were filed under it, and if so, when. And while as to the reestablishment of the involuntarily discontinued use, the Director is given considerable discretion, the general guidance is for work to begin within in twelve months, and while there may have been further COVID-19 related delays, the fire was in April 2018 and the COVID shut-down did not occur until late March 2020, nearly two years later. As to the replacement of the damaged non-conforming structure, Subsection 20.38.080.B imposes more specific and less flexible requirements, including an evaluation of the relative costs of repair versus replacement, which may result in a requirement for a minor use permit and that “An application for the minor use permit shall be made within twelve (12) months after the damage or destruction occurs.” None of this evaluation appears in the staff report or resolution. As to diligent pursuit of a clear plan, the Planning Division’s Active Planning Cases Dashboard indicates the current application,PA2023-0027, was not filed until February 9, 2023, nearly five years after the fire, and there is no indication in the staff report or the resolution that it is the same as the rehabilitation proposal “diligently” pursued by the prior owner. On the contrary, I believe the Zoning Administrator said he understood the prior owner had a plan to maintain the Pine Knot as a low cost accommodation but ultimately decided to sell.6 Moreover, aside from the present one and the May 9, 2018, request for the emergency demolition CDP for the four damaged units and the associated permit, the City’s Planning Cases history and building permits file for 6302 W. Coast Highway show no other applications having been filed or permits issued,. This appears to me to be a new application to develop a motel on the abandoned site of a previous one, not a diligent recovery from involuntary damage. Is the Feasibility and Impact Assessment Adequate? As the staff report and resolution acknowledge, to protect the existence of low cost overnight visitor accommodations in the city, NBMC Section 21.48.025 (Visitor Accommodations) requires a Feasibility Analysis and an Impact Analysis to be prepared at the applicant’s expense when changes to visitor accommodations in the coastal zone are being considered. The public might reasonably expect this means City staff would contract for the reports and bill the applicant for them. In this case we have Attachment PC 7, a “Feasibility and Impact Assessment” prepared by PKF Hospitality Group, but it is unclear who chose them or who they regarded as their client, the City or the applicant. The report does not say. 6 According to the grant deed found in the City’s PA2023-0027 application archive, the sale apparently occurred in August 2021, more than three years after the fire. Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) December 7, 2023, PC Item 2 (PA2023-0027) comments - Jim Mosher Page 6 of 12 Under “General” on “draft” page 8 (handwritten page 96) it does say PKF delivered a draft report in March 2023 and a final report 7 in July 2023. It does not indicate who they were delivered to or what revisions may have been made or at whose request. In any event, PKF’s conclusion on “draft” page 28 (handwritten page 116) that “the Project will not have any impact on the City’s existing lower-cost visitor accommodations, and no mitigation measures are required under Newport Beach Municipal Code Section 21.48” clearly indicates they did not carefully read the applicable City code or understand their duties. Section 21.48.025.C.4 (Impact Defined) defines “impact” to include not only “development [that] would result in the decrease in the available supply of existing lower cost visitor accommodations” but also development that “would fail to provide a range of affordability, including at least twenty-five (25) percent of the rooms as low cost accommodations, or fail to use land suitable for lower cost accommodations for that purpose with the exception of short-term lodging.” Under “Existing Supply of Lower-Cost Visitor Accommodations” on “draft” page 19, PKF does acknowledge the NBMC Subsection 21.48.025.C.1.a definition of “lower[sic]-cost visitor accommodations,” but its finding that there is only one low cost hotel or motel in Newport Beach – Extended Stay America – hardly seems reliable. Only on “draft” page 24 do we learn “the Average Daily Rate (ADR) for a hotel room in California was $188.00.” Per the NBMC definition they cite, “low cost” in Newport Beach is supposed to be an average of all hotels and motels in the City with an ADR lower than that. But nowhere does the report say what the ADR at “the 164-room Extended Stay America motel” is, or is there any explanation of why the report does not mention the ADR at any of the presumptively lower cost facilities in Newport Beach, such as the Newport Channel Inn or the Holiday Inn Express Newport Beach (both, like the Pine Knot, on PCH) or other lower cost possibilities, such as Little Inn by the Bay (which seems to post the lowest prices) or perhaps the cottages at Newport Dunes or Crystal Cove. In fact, it does not appear to disclose the annual ADR’s of any facilities, but only seasonal rates.8 And even for those, it seems to present a collection of higher cost alternatives, including, inexplicably, as its only low cost example not the airport-area Extended Stay America in Newport Beach, but the “Ramada by Wyndham” on Superior in Costa Mesa (but no other Costa Mesa facilities). As to feasibility, I am unable to find anything analyzing the possibility of a more modest reopening of the existing units. Instead, it considers only what is needed to obtain an adequate return on investment on a $5.5 to 6 million investment. As to impact, I am unable to find anything in PKF’s analysis independently evaluating the ramifications of the loss of the 12 units formerly operating at the Pine Knot site, which, if we 8 The PKF assessment is largely written in hotel speak. Their use of “ADR,” particularly in making comparisons, is not clearly defined. The $188 value quoted for all of California is said to be from the “Visit California Monthly Research Dashboard for May 2023,” but it is not obvious if it represented an average for that month or for a year, while the rates quoted for specific hotels are for January and November weekdays and weekends. 7 Curiously, the printed page numbers in Attachment PC 7 say “draft” even though one assumes it is the final report. Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) December 7, 2023, PC Item 2 (PA2023-0027) comments - Jim Mosher Page 7 of 12 believe the report may have been the last low cost accommodations in Newport Beach (it being uncertain whether PKF has properly classified Extended Stay America – or overlooked others). How Many Low Cost Rooms Need to be Mitigated? NBMC Section 21.48.025 (Visitor Accommodations) is presumably intended to implement Section 30213 of the Coastal Act (“Lower cost visitor and recreational facilities shall be protected, encouraged, and, where feasible, provided”) and the promises we make in our Coastal Land Use Plan, including Policy 2.3.1-13 (“Any proposal to demolish existing overnight accommodations shall be required to demonstrate that rehabilitation of the units is not feasible”) and those of Section 2.3.3 (Lower Cost Visitor and Recreational Facilities). Especially in the staff report, great emphasis is placed on the word “existing” in Section 21.48.025.A’s statement of applicability to “the expansion, reduction, redevelopment, demolition, conversion, closure, or cessation of existing visitor accommodations.” It contends that since the Pine Knot Motel has been shuttered for more than five years, there were no “existing” visitor accommodations on the site at the time of the current application, so that all that needs to be considered is the required 25% low cost units it fails to provide. While such an interpretation is possible, given the references to “demolition,” “closure” and “cessation,” an equally or more plausible interpretation is that “existing” was intended to include in Section 21.48.025’s protections to visitor accommodations existing at the time the language was adopted by the City Council or certified by the Coastal Commission. 9 Many may regard it as un-American to burden a property owner with an obligation to preserve or mitigate the loss of a use voluntarily established by them or a predecessor. But staff’s interpretation leads to obvious logical inconsistencies. The owner of a property with low cost accommodations wanting to avoid the obligation to preserve or mitigate for their loss could simply cease operation without benefit of a CDP and then reopen them as high cost units saying no low cost units existed at the time of the reopening. More pertinent, if the owner of the Pine Knot prior to the fire had wanted to convert them to high cost units, he would have had to mitigate the loss of 12 low cost units. How does a fire and the attendant right to restore the prior use (the low cost motel) relieve them of that burden? Added to this, is the uncertainty regarding what the fire did. The Emergency CDP (Attachment No. PC 5), whose reasoning could not be appealed, says of the four units destroyed by fire (and only them), that they previously contained LCOVA, but that their demolition will “will not result in the decrease in the available supply of existing LCOVA units, as the units no longer exist due to a disaster.” It does not say the remaining eight LCOVA units ceased to exist. When did the eight units cease to exist? Was there ever a permit for that? How did they escape accounting? It would seem to me that fire or no fire, a property that contained 12 LCOVA units when the Implementation Plan was certified is burdened with an obligation to preserve those 12 low cost units or mitigate for their loss. 9 This language was adopted by the City Council on November 22, 2016, and fully certified by the CCC in January 2017, more than a year before the fire. The Pine Knot Motel was presumably operating and providing low cost accommodations at that time. Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) December 7, 2023, PC Item 2 (PA2023-0027) comments - Jim Mosher Page 8 of 12 I have trouble understanding how the four units destroyed by fire escaped accounting as lost LCOVA, and even more understanding how the eight units still standing will. Surely, if the CDP is approved, 6302 W. Coast Highway will have 12 fewer LCOVA than it did prior to the fire, and, without mitigation, if all that exists on the site after approval is high cost rooms, then surely the City’s supply of LCOVA will have been diminished by 12. Yet staff contends no LCOVA has ceased operation on the site, and the only mitigation needed is for the 3 of 12 entirely new units that the project fails to deliver in low cost form. How Was the $25,000 Per Room In-Lieu Fee Determined? Setting aside how many low cost rooms need to be mitigated for, the inadequacy of the in-lieu fee is the core of my appeal. Rather than providing three low cost rooms on site, staff and the applicant propose an in-lieu fee of $25,000 per room. As to where the $25,000 came from, Section 2.A.13 of the proposed resolution says only “The fee has been determined by the Community Development Director and is based on the size, necessary ADR, and the amenities offered by the motel. The fee provides the intended mitigation without functioning as an excessive hardship that ultimately renders the rehabilitation of the property infeasible.” Section 2.A.14 goes on to explain the fee will support the City’s Fostering interest in Nature program,10 which was invented in 2015 as mitigation for the Lido House hotel’s failure to provide 32 low cost rooms (25%) in its proposed 130 room hotel development (see Coastal Commission staff report for Item 9a on their October 7, 2015, agenda). Supporting FiiN rather than leaving the money in a fund that may never be used to provide visitor opportunities is undoubtedly a good thing. The problem, as noted on my appeal form, is that in 2015, the contribution to FiiN deemed appropriate to mitigate for failure to provide a required low cost hotel room was $42,120 per room. This was based on the Coastal Commission’s estimate of the statewide average cost to construct a 120 square foot youth hostel type accommodation,without including the cost to acquire the land. Subsequent CCC estimates have been substantially higher. Most recently, as Item 19a on their October 12, 2023, agenda, for a new 32-room hotel in Encinitas that was part of a project viewed as providing several other public benefits, the Coastal Commission required and accepted a fee of $144,750 per room in lieu of providing the required 8 low cost rooms. Again, that did not include the cost of acquiring land for the in lieu visitor opportunities, as it was assumed they would be developed on public park lands. Pages 46 and following of the CCC staff report detail the history of how this most recent mitigation fee was arrived at. $25,000 is a far cry from $144,750. 10 This is an outdated third-party link on the contractor’s website. Oddly, I am unable to find any mention of the program’s existence on any of the City’s web pages. Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) December 7, 2023, PC Item 2 (PA2023-0027) comments - Jim Mosher Page 9 of 12 The present staff report contends that the comparison to the $42,120 per room charged to the Lido House in 2015 (let alone, one assumes, to the $144,750 per room more recently regarded as appropriate) is unfair because the Pine Knot Motel is so different from the Lido House in what it does provide. This argument is erroneous because the fee is unrelated to what is provided for the luxury visitor. The fee is instead required to compensate for what is not provided, namely a required LCOVA. It is supposed to be sufficient to build a substitute LCOVA somewhere else in the City. The main justification I could see for a smaller in lieu fee for the Pine Knot than for the Lido House would be if the absence of a LCOVA opportunity at the Pine Knot location was less detrimental to visitors than the absence of one at the Lido House location. One might argue that a LCOVA in Lido Village is more “valuable” (and worse to lose) because of its proximity to retail, but for the low income visitors for whom LCOVA is intended, it could be argued the Newport Shores location is more desirable (and worse to lose) because it is a much shorter walk to the City’s main no cost attraction: a sandy beach. One might also cut the Pine Knot small bit of slack if the new owners promised, unlike the Lido House, to provide some moderate cost rooms. 11 But according to the PKF report they have no intention of doing so, and will be striving for the highest rates the market will bear. In view of such uncertainties, the Coastal Commission’s approach of adopting an average construction cost for the required substitute LCOVA is probably wise. And not only has the cost of building one certainly increased since 2015, but it seems evident that even the $42,120 per room investment in FiiN required of the Lido House was not adequate to substitute for providing a LCOVA room. What Does $25,000 Buy? According to the City’s adopted Fiscal Year 2023-2024 Budget Detail, operating the FiiN program is anticipated to cost the City $147,000 per year in contractor costs alone, not counting City staff support time. This is supported by the remaining endowment fund from the 2015 Lido House contribution, which is currently about $1 million, 12 and earns about $25,000 per year. According to the present staff report the FiiN program provides 2-night stays for 560 disadvantaged students. Based on these numbers, it appears each night of FiiN stay costs at least $131 per child. The Pine Knot’s $25,000 per room addition to the FiiN fund will earn about $625 per year, which will finance less than 5 extra children having a single overnight stay in Newport Beach per year. Alternatively, if the full $25,000 per room fee was spent on FiiN at once, it would finance about 1/6th of a year’s program before it was entirely gone, or about 200 child-nights. 12 The original Lido House contribution to the FiiN fund, thought sufficient to support the program for 10 years, was $1,415,232. For various reasons, the program did not launch until 2019, and may have been paused during the COVID pandemic. 11 The LCP defines moderate as less than 120% of the statewide ADR. Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) December 7, 2023, PC Item 2 (PA2023-0027) comments - Jim Mosher Page 10 of 12 In addition to being small in number, as described at the prior link, the visitor camping experiences provided by FiiN were originally confined to February through April, when visitor demand is at its lowest. I believe that because of the poor camping weather encountered the program has recently been moved to fall. Whatever the time of year, funding such a small number of child camping nights seems far short of the benefits of construction of a youth hostel bed that would provide a LCOVA opportunity 365 nights a year in perpetuity. Not to mention the benefits of constructing a low cost hotel room, which could accommodate multiple guests 365 nights a year. In short, while it is undoubtedly true that a $25,000 per room in lieu fee does not place a hardship on the applicant, City staff’s assertion that it “provides the intended mitigation” seems unfounded. It is very hard to see how it could be used to provide the equivalent of the required low cost room. In fact, even if “low cost” for Newport Beach were as high as the statewide ADR of $188 per night, the $25,000 could provide the $137 per night subsidy needed to bring the anticipated $325 per night Pine Knot rate down to $188 for only 182 nights, or just six months. Miscellaneous Observations ● The grant deed in the City’s PA2023-0027 application archive indicates the legal owner of the property is “6320 Investment, LLC.” The CDP application, and all the other City documentation describes the owner as “6302 Investment LLC,” which correlates better with the street address. ● Neither the staff report nor the project description in Section 1.2 of the draft resolution make clear that in addition to the new construction, the applicant seeks to demolish 587 square feet of the existing structure at the corner of W. PCH and Prospect. The additional demolition is mentioned in what is apparently the posted notice of the pending CDP application, and is alluded to in the conditions of approval, so it is curious it is not part of the description. ● If this were a normal application for a CUP for a new use, I believe it would be accompanied by an applicant’s description of their intended use. I see none in the application archive linked to above. It appears the pre-fire Pine Knot operated with an owner or caretaker overseeing its operation and living in a two-bedroom dwelling unit attached to the office and lobby, and not included in 12 motel units count. In the proposed plan, it is unclear what plan there is for onsite staff. ○ On handwritten page 105, the PKF assessment (whose “Location and Expansion” description is neither entirely clear nor accurate) notes the former dwelling unit will be rebranded as “Room 9,” which is somewhat consistent with the plans (handwritten page 81). 13 ○ The proposed rental of a full dwelling unit with kitchen is inconsistent with the definition of “motel” in Titles 20 and 21. They describe such things as characteristic of an “extended stay hotel.” 13 PKF implies the architect is retaining the existing kitchen. However, comparison of the project plans on handwritten pages 80 and 81 indicates the existing kitchen is an area to be demolished, and the new one will be built in what was formerly a laundry room. Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) December 7, 2023, PC Item 2 (PA2023-0027) comments - Jim Mosher Page 11 of 12 ○ Without an applicant’s description, PKF’s references to the proposal as being for a high cost “boutique hotel” and at the same time a mainly “self-service property” are puzzling. The former would imply a high degree of personalized service that would require onsite staff, while the latter suggests little. ● The trash enclosure appears designed for two-bin service. Is that correct for a motel? Or does it need three-bin service like residences? ● The plans provided as Attachment PC 6 show no signage on the new motel. However, the existing pole sign appears as a kind of logo near the top of the title column on the right side of each page. The existing sign is legally nonconforming, and it is not clear what the plan for it is. The “Project Data” on the first sheet of the plans (handwritten page 75) says the signage is to be submitted as part of a comprehensive sign program. SInce comprehensive sign programs have to be approved by the Zoning Administrator, and the preference per NBMC Subsection 20.50.030.A is to combine all applications related to a project, it is unclear why the applications have been separated. ● Section 3.A.15 of the proposed resolution concludes that the proposed structure is currently safe from coastal hazards. Since it is the “X” FEMA flood zone, this is likely true. However, the further conclusion that “The identified distances from the coastal hazard areas, coupled with the 9.67-foot NAVD 88 finish floor elevation, will help to ensure the Project is reasonably safe for the economic life of the structure” seems far less probable. The economic life is typically taken to be 75 years, and the hazard reports submitted to the Zoning Administrator for development along the ocean-facing beaches generally cite the current highest high tide as 7.7 feet NAVD 88, with an anticipation that over the next 75 years that will increase to somewhere between 10.8 and 14.4 feet NAVD 88. Should that be true, and should nothing else be done, it would seem that during its life the structure may be subject to occasional or frequent flooding. ● On handwritten page 26, the last sentence of Section 3.A.12 was presumably intended to read “Condition of Approval No. 2 requires that the applicant pay an in-lieu fee for inability to provide 25%three rooms of new accommodations as low cost.” ● On handwritten page 33, Condition of Approval 31 was presumably intended to read “No encroachments, including but not limited to, foundation of structure is permitted with within the West Coast Highway or Prospect Street Right of Way. ” Conclusions ● An opportunity may have existed in 2018 to “diligently” pursue a plan to replace the 4 units destroyed by fire and repair whatever damage may have been incurred by the other 8 units, so the formerly existing 12-unit low cost motel could reopen. ● The previous owner’s decision to sell to a new owner with a different plan seems to have been voluntary. ● The presentation of a new plan to establish a high cost hotel at a site where a low cost motel existed should have triggered the need to bring the operation into conformity with the Municipal Code, including application for a conditional use permit. Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) December 7, 2023, PC Item 2 (PA2023-0027) comments - Jim Mosher Page 12 of 12 ● Absent a CUP, it would seem additional conditions should be added to the CDP mirroring some of what would be put in a CUP to ensure staff’s expectations about the operation will be fulfilled. For example, it would seem wise to monitor the adequacy of the parking, and to require the employees lead by example, arriving by alternative modes of transportation if the parking proves insufficient to fulfill the guests’ needs. ● Contrary to staff’s conclusion, it seems to me that the failure to provide any low cost overnight visitor accommodations on a site that formerly provided twelve, is a loss to the City of twelve LCOVA. ● Whatever the number of LCOVA the property owner is obligated to compensate for, a one-time payment of $25,000 to the FiiN program, while commendable, is clearly an inadequate substitute for each LCOVA not being provided. Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) Newport Shores Community Association 1211 Puerta Del Sol, Suite 120, San Clemente, CA 92673 Office (949) 661-7767 Fax (949) 661-5696 December 4, 2023 Dear Mr. Curtis Elmore, Mr. Mark Rosene, and other members of the Planning Commission, The Newport Shores Community Association would like to provide its unanimous support by its eleven elected board members in the redevelopment of 6302 W. Coast Highway, otherwise known as the Pine Knot Motel. The corner of Prospect Street and West Coast Highway is one of two main entrances into The Newport Shores Community as well as one of the first businesses visible to those entering Newport Beach from the north west. This corridor of businesses and homes serves as the gateway to Newport Beach from the north west. The Pine Knot Motel's current dilapidated condition reflects poorly both upon the city of Newport Beach and our Newport Shores Community. Unfortunately, this property is not only the cause of aesthetic blight, but it is a magnet for the homeless, drug users, and other nefarious actors. The issues of this property spill into our residential neighborhood including the Newport Shores clubhouse and parking lot. In addition, many of our children must pass this property on their way to school each day. We were elated when we first heard of the redevelopment plans as this has been the single biggest topic in the community for the last 5 plus years. We welcome the expansion, design, construction, and operation of the new modern hotel, which will in no uncertain terms elevate the surrounding retail and businesses in the immediate area. As a HOA board, we unanimously support the current plans submitted by the new owners for its redevelopment. Regards, Rene Rimlinger Rene Rimlinger President NSCA Community Association Cc: Newport Shores Community Association Board of Directors; Joe Stapleton Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) From:Chris Walton To:Planning Commission; srgale@gmail.com Subject:Re: Pine Knot Date:December 05, 2023 11:33:02 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. To whom this may concern, I have been in Newport Shores for 27 years. The Pine Knot has been an issue for the neighbor hood ever since I've been here. I am in support of the new plans and very excited to see it getstarted. I will help clean up this area and that’s what we need. Thank you very much Thank you, Christopher Walton On Nov 30, 2023, at 5:06 PM, Mike Greer <mgreer@greerandkirby.com> wrote: Sincerely, Mike GreerPresident Greer & Kirby Co., Inc.14714 Industry Circle, La Mirada, CA 90638714.670.7721 Office 714.670.7995 Fax714.815.4336 Cell Email: mgreer@greerandkirby.com Begin forwarded message: From: Neal Shehab <nealshehab@gmail.com>Date: November 29, 2023 at 10:49:26 AM PSTTo: planningcommission@newportbeachca.govCc: Mike Greer <mgreer@greerandkirby.com>, srgale@gmail.com,Calling Is beth AKA Rappette Hot Girlfriend Who part timeresides with you worth The Wait <mishrapp@mac.com>Subject: Pine Knot Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) To whom it may concern, I have been a resident of Newport Shores for over 20 years. The fireat the Pine Knot was one of the worst things for our neighborhood.We were so glad someone would come in and redo the place andbring back the luster to the Pine Knot. Please move forward with the Pine Knot renovation ASAP. Theexisting site is a eye sore and is bringing our property values down. The half burnt down, green fenced currant Pine Knot is home tovagrants who sneak in at night and sleep. This is a terrible entrance toNewport Beach. Please proceed with the project ASAP!!! -- Sincerely, Neal Shehab World Wide Sales Group (949) 244-2736 nealshehab@gmail.com https://www.mulehide.com/ https://ecostarllc.com https://www.oxengineeredproducts.com/ Planning Commission - December 7, 2023 Item No. 2c - Additional Materials Received Pine Knot Motel Appeal (PA2023-0027) APPEAL OF PINE KNOT MOTEL COASTAL DEVELOPMENT PERMIT Planning Commission, December 07, 2023 Joselyn Perez, Associate Planner Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) VICINITY MAP 2 Project Site Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) EXISTING MOTEL 3 Pine Knot Motel 2017 Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) 2018 FIRE 4 Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) 5 •Repair damaged portions of motel •Reconfigure floor plan •Construct new building where red tagged rooms were demolished •Add a partial second story at the front of the property PROJECT DESCRIPTION Prospect St Alley West Coast HighwayPlanning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) COASTAL DEVELOPMENT PERMIT 6 •Increasing height by greater than 10% •Reducing parking spaces Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) ZONING ADMINISTRATOR HEARING & APPEAL •On September 28, the Zoning Administrator held a public hearing for the Project. •Zoning Administrator adopted Resolution No. ZA2023-060 approving the Coastal Development Permit. •Appeal filed on October 12, 2023. 7 Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) PARKING REDUCTION 8 EXISTING LAYOUT PROPOSED LAYOUT 1 1 2 3 4 5 6 7 8 9 2 3 4 5 6 7 Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) PARKING REDUCTION 9 Must demonstrate a reduced parking demand & lack of impact to coastal access •Not every guest will arrive by personal vehicle •Rideshare •Street parking available •Municipal lots available •Bicycles & bike parking Location of Municipal Lots Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) VISITOR ACCOMMODATIONS IMPACT ANALYSIS 10 •Must consider the Project’s ability to protect, encourage, or provide low cost overnight visitor accommodations (LCOVA) and recreational facilities •A feasibility and impact assessment was prepared by PFK Hospitality Group •Proposed motel would need to charge an Average Daily Rate (ADR) of $325 to operate successfully. This is above the statewide ADR of $188 dollars •Infeasible to provide LCOVA. Mitigation required for 25% of the new rooms Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) VISITOR ACCOMMODATIONSMITIGATION FEE SUPPORTS FIIN •The Applicant and Community Development Director determined a fee of $25,000 per room (for a total of $75,000) fee for failure to provide LCOVA. •Benefits the Fostering interest in Nature (FiiN) program and will fulfill the provision of lower-cost overnight opportunities. 11 5th Graders in the FIIN program Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) APPEAL The appeal contests: •Proposed $25,000 per room mitigation fee •Number of rooms requiring mitigation fee (3 rooms versus 12 rooms) •If current proposal qualifies as diligent pursuit of a restoration plan within 12-months of damage •Loss of 2 parking spaces. 12 Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) STAFF RESPONSE TO APPEAL 13 In-Lieu Fee •The mitigation fee for Lido House Hotel is not a fair comparison to Pine Knot Motel •Different sized development, different amenities, different ADR Low Cost Overnight Visitor Accommodations •2018 fire significantly damaged the motel and is responsible for its closure and ending the availability of 12 LCOVA units at the site •For the purpose of the impact analysis, these are new accommodations. Code requires 25% of new rooms be mitigated Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) STAFF RESPONSE TO APPEAL 14 Reestablishing the Nonconforming Use •Pine Knot was a nonconforming use •Code allows for 12 months to establish unless allowed by the Director •Director considers efforts by owner to be a diligent pursuit Reduction in Parking •Reduction is not voluntary and is to comply with current parking lot and disabled access standards •Adequate facts exist to support the parking reduction Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) RECOMMENDATION 1.Conduct a public hearing; 2.Find this project exempt from the California Environmental Quality Act (CEQA) under Class 2 (Replacement or Reconstruction) of the CEQA Guidelines; and 3.Adopt Resolution No. PC2023-041 denying the appeal and upholding and affirming the Zoning Administrator’s approval of a Coastal Development Permit 15 Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) THANK YOU Planning Commission, Public Hearing December 7, 2023 Joselyn Perez, Associate Planner 949-644-3312 jperez@newportbeachca.gov Planning Commission - December 7, 2023 Item No. 2d - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) 6302 Pacific Coast Hwy Plannign Commission - December 7, 2023 Item No. 2e - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) Project Scope Remodel and addition of a damaged multiunit hotel, from a fire back in 2018. Remodeling existing units and replacing burned down units, with a second story deck, lobby with a coffee bar, and eye catching PCH presence on the main entrance and exit of the Newport Shores neighborhood. Plannign Commission - December 7, 2023 Item No. 2e - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) Project Scope Plannign Commission - December 7, 2023 Item No. 2e - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) Project Team Eric Aust brings 25 years of architectural experience in all aspects of design. Specializing in custom residential design and commercial development. RailiCA Design interior design team, specializing in new construction, full remodels and the occasional cool vintage cottage renovation. Plannign Commission - December 7, 2023 Item No. 2e - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) Current Photos and Site History Plannign Commission - December 7, 2023 Item No. 2e - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) Site History Plannign Commission - December 7, 2023 Item No. 2e - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) Project Goals ◦Maintain the majority of the existing structure that wasn’t burned down or damage from the previous fire ◦Minimize the impact on the surrounding Newport Shores community while improving the property ◦Enhance the architecture of the site and neighborhood ◦Transform a run down motel, that attracted transients, drug users, and arguably the biggest eye sore in Newport Beach ◦Create a unique small design forward hotel that the community can be proud of and bring business to the Newport Shore’s local businesses Plannign Commission - December 7, 2023 Item No. 2e - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) New Views Plannign Commission - December 7, 2023 Item No. 2e - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) Conclusion ◦This project is a small unit hotel that will benefit the entire community ◦It is not financially possible for a project of this size to pay the same amount as projects like Lido House, Ritz, etc ◦This project will bring visitors to the community to spend money at neighboring business to help grow the area around it Plannign Commission - December 7, 2023 Item No. 2e - Additional Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) 1 Pine Knot Motel Appeal of staff level (ZA) review Possible concerns: •Processed as restoration of prior use •Industry assessment questionable •In-lieu fee extremely low •Parking below standard Planning Commission - December 7, 2023 Item No. 2f - Additonal Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) 2 Restoration of Previous Use? • Fire destroys 4 units – April 2018 • Demolition CDP – July 2018 • COVID shut down – March 2020 • New owner – August 2021 • CDP filed – January 2023 Planning Commission - December 7, 2023 Item No. 2f - Additonal Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) 3 City Commitment to LCOVA • LCOVA defined: o High = 120% x state average ADR o Medium = between o Low = below average of rooms below state average • Preserve existing LCOVA • Include 25% LCOVA in new development • In-lieu fee can be used to mitigate Planning Commission - December 7, 2023 Item No. 2f - Additonal Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) 4 LCOVA in Newport Beach • Staff relies on PKF assessment • No coastal LCOVA identified • Was Pine Knot low cost? • Could some rooms be low cost? • $25,000 per room in-lieu approved • Prior City precedent $42,120 • Most recent CCC precedent $144,750 Planning Commission - December 7, 2023 Item No. 2f - Additonal Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) 5 Parking • Approving 7 spaces for 12-unit motel • Lots of reasons it might be OK • No assessment of comparable facilities • No clear operations plan • No conditions ensuring it works Planning Commission - December 7, 2023 Item No. 2f - Additonal Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027) 6 Considerations Needing Review • Is this a restoration or a new proposal for an abandoned motel site? • Does it need an operational plan and conditions of approval? • Could it include LCOVA? • If not, what is adequate compensation for the new LCOVA not being provided? • Who is responsible for the former 12 LCOVA lost? Planning Commission - December 7, 2023 Item No. 2f - Additonal Materials Presented at the Meeting Pine Knot Motel Appeal (PA2023-0027)