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HomeMy WebLinkAbout3.0_Sober Living By The Sea (SBTS) Zoning Agreement Termination_PA2008-199CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT December 21, 2023 Agenda Item No. 3 SUBJECT: Termination of Development Agreement No. 2008-005 for Sober Living by the Sea, Inc. dba Sierra by the Sea, Inc. Zoning and Public Benefit Agreement SITE LOCATION: Citywide APPLICANT: Sober Living by the Sea, Inc. dba Sierra by the Sea, Inc. PLANNER: Melinda Whelan, Assistant Planner mwhlean@newportbeachca.gov 949-644-3221 PROJECT SUMMARY Request to terminate Development Agreement 2008-005, a Zoning Implementation and Public Benefit Agreement (Zoning Agreement) between the City of Newport Beach and Sober Living by the Sea, Inc. dba Sierra by the Sea, Inc. RECOMMENDATION 1)Conduct a public hearing; 2)Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Existing Facilities of the CEQA Guidelines. This activity is also covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment (Section 15061(b)(3) of the CEQA Guidelines). It can be seen with certainty that there is no possibility that this activity will have a significant effect on the environment, and it is not subject to CEQA; and 3)Adopt Resolution No. PC2023-044 recommending to the City Council to terminate Development Agreement No. 2008-005, Zoning Implementation and Public Benefit Agreement (PA2008-199) (Attachment No. PC 1). 1 INTENTIONALLY BLANK PAGE2 SBTS Zoning Agreement Termination (PA2008-199) Planning Commission, December 21, 2023 Page 2 DISCUSSION Background Sober Living by the Sea, dba Sierra by the Sea, Inc (SLBTS) entered into the Zoning Agreement with the City in 2009. The Zoning Agreement (Attachment No. PC 2) authorized the operation of residential care facilities in the City subject to specific limitations. Limitations included a maximum of 204 beds (including in locations not subject to City regulation under State law), dispersal of facilities to reduce concentration in residential neighborhoods, and the placement of operational controls on each facility to reduce negative impacts. Since 2009, the Operator has been subject to annual reviews pursuant to the Zoning Agreement to demonstrate a good faith effort in meeting all of the terms or conditions of the Agreement. More specifically, the Zoning Agreement allowed SLBTS a vested right to: (i) operate 156 beds of recovery facilities within the area they are currently operating, and as more particularly defined in Exhibit D of the Zoning Agreement (Peninsula Zone); and (ii) up to an additional 48 beds outside of the Peninsula Zone and within zones accommodating multi-family residential uses. The Zoning Agreement also memorialized allowed uses and conditions agreed to by SLBTS on August 25, 2006, regarding its administrative offices at 2811 Villa Way (Exhibit C of the Zoning Agreement. The beds are allowed to be occupied in the City at any time by persons who are patients, clients or customers of SLBTS, whether contained within Licensed Facilities, General (seven or more) or Small (six or fewer), or Unlicensed sober living homes. The Zoning Agreement included location requirements to minimize over concentration and minimum distances to schools and parks. It also regulated operational details such as smoking, parking, deliveries, medical waste, etc. to mitigate the potential impacts to the surrounding neighborhoods. Request for Termination The Operator, Sober Living by the Sea, Inc. DBA Sierra by the Sea, Inc. has requested to terminate the existing Zoning Agreement. During the last annual review conducted in October 2023, it was brought to the City’s attention that the Operator has made the decision to close all of their facilities in Newport Beach effective December 10, 2023. The Operator explained that the recovery care model had evolved to re-focus treatment from smaller residential facilities into larger hospital-type facilities in other areas of the United States. Pursuant to Section 12 of the Zoning Agreement, the Zoning Agreement may be amended or cancelled in whole or in part only by mutual written and executed consent of the Parties in compliance with California Government Code Section 65868 and City of Newport Beach Municipal Code 15.45.070. Although the Operator chose to only use 43 of the 204 permitted beds for the past eight years, by cancelling the agreement, the vested right for Sober Living to operate the potential total 204 beds will fully terminate. Should the Operator choose to re-establish operations in the City, any future facility would be subject to the current Zoning Code 3 SBTS Zoning Agreement Termination (PA2008-199) Planning Commission, December 21, 2023 Page 3 regulations applicable to Residential Care Facilities within Newport Beach Municipal Code (NBMC) Section 20.18.020 Table 2-1 and Section 20.48.170. In summary, small licensed residential care facilities (6 beds or less) are permitted by right, pursuant to State law, within all residential zones; large, licensed facilities (seven beds or more) and any unlicensed facilities would be prohibited in single-unit and two-unit residential zoning districts and permitted only in multi-unit residential zoning districts subject to the approval of a conditional use permit. Environmental Review This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3 because it has no potential to have a significant effect on the environment. Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alterations of existing structures and facilities involving negligible or no expansion of the exiting or former use. The termination of the Zoning Agreement will eliminate the Operator’s right to utilize the existing residential dwellings as residential care facilities, and the associated offices. The residential dwellings and offices will remain; therefore, the termination does not involve an expansion of use and qualifies under Class 1 (Existing Facilities). This action is also covered by the general rule that the California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment (Section 15061.b.3 of the State CEQA Guidelines). It can be seen with certainty that there is no possibility that this activity will have a significant effect on the environment. Therefore, this activity is not subject to CEQA. Public Notice Notice of this hearing was published in the Daily Pilot, and in lieu of mailings that would exceed 1,000 the Director chose to publish a one-eighth page display advertisement; 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: 4 SBTS Zoning Agreement Termination (PA2008-199) Planning Commission, December 21, 2023 Page 4 ATTACHMENTS PC 1 Draft Resolution PC 2 Zoning and Public Benefit Agreement PC 3 Written Request from Operator 01/18/23 5 INTENTIONALLY BLANK PAGE6 Attachment No. PC 1 Draft Resolution 7 INTENTIONALLY BLANK PAGE8 RESOLUTION NO. PC2023-044 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA RECOMMENDING TO THE CITY COUNCIL TERMINATION OF ZONING AGREEMENT NO. 2008-005 (ZONING IMPLMENTATION AND PUBLIC BENEFIT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND SOBER LIVING BY THE SEA, INC.) (PA2008-199) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. On February 10, 2009, the City Council adopted Ordinance No. 2009-4, authorizing a Zoning Implementation and Public Benefit Agreement (Zoning Agreement) by and between the City of Newport Beach (City) and Sober Living by the Sea, Inc., a California corporation, that sets forth for the terms of Sober Living by the Sea’s operation within the City. 2. Pursuant to Section 12 of the Zoning Agreement, the Zoning Agreement may be canceled in whole or in part only by mutual written and executed consent of the parties in compliance with California Government Code Section 65868 and the City of Newport Beach Municipal Code Section 15.45.070. 3. On October 24, 2023, Sierra by the Sea submitted a formal request to terminate the Zoning Agreement and requests the City and the Operator agree and acknowledge the Agreement is cancelled. 4. A public hearing was held on December 21, 2023, in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of the time, place, and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. (Ralph M. Brown Act), California Government Code Section 65867 and Chapter 15.45 (Development Agreements) of the Newport Beach Municipal Code (NBMC). Evidence, both written and oral, was presented to and considered by, the Planning Commission at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. Termination of the Zoning Agreement is not subject to the California Environmental Quality Act (CEQA) because it is not a project as defined in Section 21065 of the Public Resources Code since it would not result in a physical change to the environment. Additionally, termination of the Zoning Agreement has been determined to be categorically exempt under the requirements of the CEQA under Section 15301 under Class 1 (Existing Facilities). Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alterations of existing structures and facilities involving negligible or no expansion of the exiting or former use. The termination of the Zoning Agreement will eliminate the Operator’s right to utilize the existing 9 Planning Commission Resolution No. PC2023-044 Page 2 of 2 residential dwellings as residential care facilities, and the associated offices. The residential dwellings and offices will remain; therefore, the termination does not involve an expansion of use and qualifies under Class 1 (Existing Facilities). This activity is also covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment (Section 15061(b)(3) of the CEQA Guidelines). It can be seen with certainty that there is no possibility that this activity will have a significant effect on the environment, and it is not subject to CEQA. SECTION 3. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby finds the termination of the Zoning Agreement is categorically exempt from the California Environmental Quality Act under Section 15301 under Class 1 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 recommends termination of the Zoning Agreement to the City Council. PASSED, APPROVED, AND ADOPTED THIS 21st DAY OF DECEMBER, 2023. AYES: NOES: ABSTAIN: ABSENT: BY:_________________________ Curtis Ellmore, Chair BY:_________________________ Tristan Harris, Secretary 10 Attachment No. PC 2 Zoning and Public Benefit Agreement 11 INTENTIONALLY BLANK PAGE12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Attachment No. PC 3 Written Request from Operator 45 INTENTIONALLY BLANK PAGE46 47