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12 -Approving the Residences at 1401 Quail Street Project; and Overriding OCALUC's Determination of Inconsistency
Q �EwPoRT CITY OF O z NEWPORT BEACH <,FORN'P City Council Staff Report April 9, 2024 Agenda Item No. 12 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: David Lee, Senior Planner - 949-644-3225, dlee@newportbeachca.gov TITLE: Ordinance Nos. 2024-10 and 2024-11 and Resolution Nos. 2024-25 and 2024-26: Approving the Residences at 1401 Quail Street Project; and Resolution No. 2024-27: Overriding Orange County Airport Land Use Commission's Determination of Inconsistency (PA2023-0040) ABSTRACT- Intracorp Homes (Applicant), is processing several entitlement applications that would allow for the development of a 67-unit for -sale condominium building atop a 146-space parking structure (Project) at 1401 Quail Street. The Project is located in the Newport Place Planned Community (PC-11), at the northwest corner of Quail Street and Spruce Street in the Airport Area. Implementation of the Project would require demolition of the existing 22,956-square-foot office building and surface parking within the 1.71-acre site. For the City Council's consideration is the adoption of two resolutions approving a General Plan Amendment, Site Development Review, Affordable Housing Implementation Plan (AHIP), Tentative Vesting Tract Map, and acceptance of the environmental document. Also for the City Council's consideration is the introduction of two ordinances approving the Planned Community Development Plan Amendment and Development Agreement for the Project. Lastly, the City Council will consider adopting a resolution overriding the January 18, 2024, Orange County Airport Land Use Commission's (ALUC), determination that the Project is inconsistent with the 2008 JWA Environs Land Use Plan (AELUP) pursuant to Public Utilities Code Section 21676(b). Approval of the Project and the adoption of the resolution to override the ALUC requires a two-thirds majority vote of the City Council. RECOMMENDATIONS: a) Conduct a public hearing; b) Adopt Resolution No. 2024-25, A Resolution of the City Council of the City of Newport Beach, California, Adopting Addendum No. 8 to the 2006 General Plan Update Program Environmental Impact Report and 2008-2014 City of Newport Beach Housing Element Update Initial Study/Negative Declaration for the Residences at 1401 Quail Street Project Located at 1401 Quail Street (PA2023-0040); 12-1 Approving the Residences at 1401 Quail Street Project and Overriding Orange County Airport Land Use Commission's Determination of Inconsistency April 9, 2024 Page 2 c) Adopt Resolution No. 2024-26, A Resolution of the City Council of the City of Newport Beach, California, Approving a General Plan Amendment, Site Development Review, Vesting Tentative Tract Map, and Affordable Housing Implementation Plan for the Residences at 1401 Quail Street Project Located at 1401 Quail Street (PA2023-0040); d) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2024-10, An Ordinance of the City Council of the City of Newport Beach, California, Approving a Planned Community Development Plan Amendment for the Residences at 1401 Quail Street Located at 1401 Quail Street (PA2023-0040), and pass to second reading on April 23, 2024; e) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2024-11, An Ordinance of the City Council of the City of Newport Beach, California, Approving a Development Agreement for the Residences at 1401 Quail Street Project Located at 1401 Quail Street (PA2023-0040), and pass to second reading on April 23, 2024; and f) Adopt Resolution No. 2024-27, A Resolution of the City Council of the City of Newport Beach, California, Finding the Residences at 1401 Quail Project is Consistent with the Purposes of the State Aeronautics Act and Overriding the Orange County Airport Land Use Commission's Determination that the Project is Inconsistent with the 2008 John Wayne Airport Environs Land Use Plan (PA2023-0040). DISCUSSION: The subject property is located in the Newport Place Planned Community (PC-11) and is approximately 1.71 acres in size. The project site is rectangular in shape, located at the northwest corner of Quail Street and Spruce Street, and adjacent to office buildings to the north, west and south, as well as a surface parking lot utilized by Fletcher Jones Motorcars to the east. The property to the south, at the east corner of Bristol and Spruce (1300 Bristol Street), has been entitled for residential use and the office building that once occupied the site has been demolished. The abutting property to the south, at 1400 Bristol, is being proposed for residential development (Residences at 1400 Bristol Street) and will be considered by the City Council separately. Project Description The applicant proposes to demolish the existing office building and associated surface parking and landscaping at the project site and construct 67 for -sale condominium units atop a 146-space parking structure. The parking structure is located on the podium level as well as a subterranean, gated level underneath. The base density allotted to the property based on the conversion of existing 22,956 square feet of office use would be 52 units if the requested General Plan amendment is approved. The applicant also proposes a 27.5%, or 15-unit, increase in density, pursuant to Government Code Section 65915 (Density Bonus Law) for a total of 67 residential units. The applicant's project description and project plans are included as Attachment K. 12-2 Approving the Residences at 1401 Quail Street Project and Overriding Orange County Airport Land Use Commission's Determination of Inconsistency April 9, 2024 Page 3 The application consists of the following components: • General Plan Amendment — A request to change the existing General Plan Land Use Designation of the Property from CO-G (General Commercial Office) to MU-H2 (Mixed -Use Horizontal); • Planned Community Development Plan Amendment — An amendment to the Newport Place Planned Community (PC-11) to include the Property within the Residential Overlay; • Major Site Development Review - A site development review in accordance with the Newport Place Planned Community (PC-11) and Section 20.52.80 (Site Development Reviews) of the Newport Beach Municipal Code (NBMC), for the construction of the Project; • Tentative Vesting Tract Map — A Vesting Tentative Tract Map No. 19261 pursuant to Title 19 (Subdivisions) of the NBMC for condominium purposes of 67 dwelling units; • Affordable Housing Implementation Plan - A program specifying how the Project would meet the City's affordable housing requirements, in exchange for a request of a 27.5% increase in density. The Applicant seeks four development standard waivers related to park land dedication, building setbacks, and building height, pursuant to Chapter 20.32 (Density Bonus) of the NBMC and Government Code Section 65915 (Density Bonus Law). The Applicant also seeks two development concessions related to the mix of affordable units and a waiver of a portion of the required park in -lieu fees, pursuant to Chapter 20.32 (Density Bonus) of the NBMC and Government Code Section 65915; • Development Agreement —A Development Agreement, between the Applicant and the City, pursuant to Sections 15.45.020.A.2.a (Development Agreement Required) of the NBMC, which would provide the Applicant with vested rights to develop the Project for a term of 10 years and provide negotiated public benefits to the City; and • Addendum to the 2006 General Plan Update Program Environmental Impact Reports (Addendum No. 8) - Pursuant to the California Environmental Quality Act (CEQA), the Addendum addresses reasonably foreseeable environmental impacts resulting from the Project. The proposed Project is designed as a "podium -style" structure that consists of five stories over one level of on -grade parking and one level of subterranean parking. The building height would be approximately 81 feet, including architectural elements, parapet, rooftop mechanical equipment, and roof access. The 67 condominium units include 27, two -bedroom units and 40, three -bedroom units. The two -bedroom units would range from 1,304 to 1,963 square feet with four differing layouts. The three -bedroom units would range from 2,097 to 3,174 square feet in size. 12-3 Approving the Residences at 1401 Quail Street Project and Overriding Orange County Airport Land Use Commission's Determination of Inconsistency April 9, 2024 Page 4 Of the 67 for -sale units, eight units would be restricted to low and very low-income households. Of the eight affordable units, six would be for very low-income households and two would be for low-income households. The remaining 59 units would be for -sale at market rate. While the overall unit mix would be 27, two -bedroom units and 40, three -bedroom units, all the proposed affordable units would be two -bedroom units. The affordable units would consist of the same size and amenities as the market -rate units and would be distributed throughout the Project. Below is the proposed rendering of the Project. General Plan Amendment The subject property is in the Airport Area and currently has a General Plan Land Use designation as General Commercial Office (CO-G). The applicant is requesting to change the land use designation of the subject property, from the CO-G to Mixed -Use Horizontal 2 (MU-H2). The MU-H2 designation applies to a majority of properties in the Airport Area and allows a maximum of 2,200 residential units, with 1,650 units as replacement of existing office, retail, and/or industrial uses at a maximum density of 50 units per net acre. Any eligible density bonus allowed by Government Code Section 65915 (State density bonus law) and NBMC Chapter 20.32 (Density Bonus) are not included in the 2,200 allowance or the 50 dwelling units per acre standard. The Project helps implement the Sixth Cycle Housing Element through a General Plan amendment and aids the City of Newport Beach in its goal to provide new housing opportunities. If approved and the project is permitted, the City will take credit for the units in its annual reporting to the State on housing production. 12-4 Approving the Residences at 1401 Quail Street Project and Overriding Orange County Airport Land Use Commission's Determination of Inconsistency April 9, 2024 Page 5 The Project, as proposed, is consistent with all current General Plan policies, as included in the draft resolution (Attachment B). Furthermore, the EIR Addendum No. 8, prepared for the Project, includes a comprehensive analysis of all relevant General Plan policies. Charter Section 423 (Measure S) Analysis ("Greenlight') Charter Section 423 requires voter approval of any major General Plan amendment. A major General Plan amendment is one that significantly increases allowed density or intensity by 40,000 square feet of non-residential floor area, increases traffic by more than 100 peak hour vehicle trips (AM/PM), or increases residential dwelling units by 100 units. These thresholds apply to the total of increases resulting from the amendment itself, plus 80% of the increases resulting from other amendments affecting the same neighborhood (defined as a Statistical Area as shown in the General Plan Land Use Element) and adopted within the preceding 10 years. Council Policy A-18 (Guidelines for Implementing Charter Section 423) requires that proposed amendments to the General Plan be reviewed to determine if a vote of the Newport Beach electorate would be required. This policy includes a provision that all General Plan amendments be tracked as "Prior Amendments" for 10 years to determine if minor amendments in a single Statistical Area cumulatively exceed the thresholds indicated above. The property is within Statistical Area L4. The General Plan amendment would change the land use designation only and not result in an increase in development. The 52 base dwelling units are already included in the MU-H2 development capacity of 2,200 units and no increase in allowed floor area is proposed. As a result, there is no increase in AM or PM peak hour trips and the amendment is not classified as a major amendment requiring a vote of the electorate should the City Council choose to approve the General Plan amendment. Newport Place Planned Community (Zoning Code) Amendment The property is currently located within Industrial Site 3A and not within the Residential Overlay of PC-11. A request to allow the subject property to be added to the Residential Overlay of PC-11 is proposed to accommodate the proposed residential development. The Residential Overlay applies to most sites in PC-11. The Overlay currently applies to the sites across Spruce Street located approximately 85 feet away including the site at 1300 Bristol that has been approved but not yet constructed as a residential apartment project. The project would be consistent with the anticipated future development of 1300 Bristol as well other adjacent properties within the Overlay. The Overlay allows for multiple -residential development as a stand-alone use if it includes a minimum of 15% of the base density for lower income households. The project provides this minimum number of affordable units by providing eight dwelling units as affordable for low-income households. The Overlay also contains development standards for multi -residential development, including density, height, setbacks, parking, signage, airport noise compatibility, amenities, and landscaping. 12-5 Approving the Residences at 1401 Quail Street Project and Overriding Orange County Airport Land Use Commission's Determination of Inconsistency April 9, 2024 Page 6 Although the Project includes waivers or reductions of the development standards, the overall intent of providing residential opportunities in the proposed Residential Overlay are being met. Site Development Review A Site Development Review application is required for multiple -residential development projects, pursuant to the Residential Overlay of PC-11 and consistent with NBMC Section 20.52.080 (Site Development Review). The required findings ensure the proposal is a quality project that is consistent with the General Plan policies, is compatible with the physical characteristics of the site and surroundings, and to reduce or minimize potential negative impacts. The site development review application ensures the project will be implemented consistent with the development standards established in the Residential Overlay of PC-11. Vesting Tentative Tract Map The applicant is requesting a vesting tentative tract map for condominium purposes, pursuant to Section 19.12.070 (Required Findings for Action on Tentative Maps (66412.3, 66473 et seq)) of the NBMC. The tentative vested tract map is required for the separate sale of each condominium unit and does not physically divide the lot into individual parcels. The proposed vesting tentative tract map is consistent with the Title 19 and applicable requirements of the Subdivision Map Act. Affordable Housina Implementation Plan The proposed Affordable Housing Implementation Plan (AHIP), dated November 28, 2023 (Exhibit D of Attachment B), illustrates compliance with the affordable housing requirements of the Residential Overlay of the Newport Place Planned Community, and density bonus allowances pursuant to Government Code Section 65915-65918 (Density Bonus Law) and NBMC Chapter 20.32 (Density Bonus Code). Consistent with the affordable housing requirements of the Residential Overlay, 15%, or eight units of the project's 52 base condominium units, would be set aside as affordable units to low or very low-income households. Per Section 20.32.140 (Occupancy and Resale of Ownership Units) of the NBMC, if a low or very low-income unit is initially occupied by a low or very low-income household and offered at an affordable housing cost, the unit will be subject to an equity sharing agreement, unless sold to a nonprofit housing corporation. Upon resale, the seller of the unit retains the value of any improvements, the down payment, and the seller's proportionate share of the appreciation, and the City recaptures any initial subsidy and its proportionate share of the appreciation. The City's share is returned to be used to support affordable housing development in the future. 12-6 Approving the Residences at 1401 Quail Street Project and Overriding Orange County Airport Land Use Commission's Determination of Inconsistency April 9, 2024 Page 7 In addition to the 15 density bonus units, the project is entitled to receive two incentives or concessions that would result in identifiable, financially sufficient, and actual cost reductions. A reduction or waiver of any City imposed fee or dedication of land is considered an incentive or concession, however, the decision to approve the incentive/concession is at the sole discretion of the City Council and not guaranteed. In this case, the applicant requests two of the following incentives: Incentive/Concession Requests: 1. Affordable Unit Mix: NBMC Section 20.32.110 (Design and Distribution of Affordable Units) requires affordable units in a density bonus project to reflect the same range of unit types in the residential development as a whole. The Project provides all eight affordable units as two -bedroom units, whereas the overall unit mix includes 27, two -bedroom units (40%) and 40, three -bedroom units (60%). There are no affordable units that are three -bedroom units. Granting this incentive will result in identifiable, financially sufficient, and actual project cost reductions for the Project. This incentive has been requested and granted in all previous projects where density bonus has been requested. 2. Partial Park In -lieu Fee Waiver: Pursuant to General Plan Policy General Plan Land Use Policy LU 6.15.13, the Applicant is required to dedicate a'/2 acre of land for a neighborhood park or pay an in -lieu fee for the City to acquire and improve parks in the Airport Area. The applicant is required to pay $1,837,500 for the in -lieu park fee (1/2-acre park equivalent). The Applicant is contributing approximately $513,300 for this purpose; therefore, an incentive/concession is required to waive the remaining fee. The reduction in park in -lieu fees would allow the applicant to contribute to the overall fund for parks in the Airport Area, while providing an identifiable cost reduction that make the provision of affordable units feasible. Because the request includes a waiver of a City -imposed fee, the Council has the discretion to approve, deny or modify this concession. Development Standard Waiver Requests: In addition to the density bonus units, parking reductions, and financial incentives and concessions, the Project is entitled to receive unlimited waivers or reductions of development standards if they would physically prevent the project from being built at the permitted density. In this case, the Project applicant requests a waiver of the following four development standards, described in greater detail in the December 21, 2023 Planning Commission staff report (Attachment F): 1. Park Dedication Requirements (two waivers) 2. Street Setbacks 3. Building Height 12-7 Approving the Residences at 1401 Quail Street Project and Overriding Orange County Airport Land Use Commission's Determination of Inconsistency April 9, 2024 Page 8 Development Agreement In accordance with Section 15.45.020.A.2.a (Development Agreement Required) of the NBMC, a development agreement is required if the proposed project includes an amendment to PC-11 and a General Plan Amendment to change the land use designation. Additionally, the Project includes the development of 50 or more residential units. The applicant requests a 10-year term of agreement. The agreement provides assurance that the applicant may proceed with the proposed Project in accordance with existing policies, rules and regulations, and conditions of approval. The development agreement provides vested rights to develop the project. The total fee will have three components: a public safety fee, a park in -lieu fee, and a general public benefit fee (Table 1). The public safety fee will assist the City with the cost of an additional ambulance unit that will be stationed at Fire Station No. 7 to serve this area or other public safety needs. The park fee will be used consistent with City Council Policy B-1 (Park Fee Policy) or for the future acquisition and development of a neighborhood park in the Airport Area. The public benefit fee will be used solely at the City Council's discretion. These fees are subject to annual adjustments, based on the CPI Index. Table I. Projected Public Benefit Fees (Subject to future CPI Adjustment) Category Fee Public Safety $141,600 Reduced Park In -Lieu $513,300 General Public Benefit $1,628,400 Total $2,283,300 Finally, the agreement includes all mandatory elements, including public benefits that are appropriate to support conveying the vested development rights consistent with the City's General Plan, NBMC, and Government Code Sections 65864 et seq. The Development Agreement can be found as Exhibit A of Attachment D of this report. Plannina Commission Review and Recommendation On December 21, 2023, the Planning Commission conducted a duly noticed public hearing to consider the requested applications. The Planning Commission discussed the new housing projects coming to the city and specifically appreciated that the project was for -sale housing. Two members of the public addressed the Planning Commission regarding the request, discussing General Plan policies and building setbacks. At the conclusion of the public hearing, the Planning Commission voted to adopt Resolution No. PC2023-047, recommending the City Council approve the Project. 12-8 Approving the Residences at 1401 Quail Street Project and Overriding Orange County Airport Land Use Commission's Determination of Inconsistency April 9, 2024 Page 9 The Planning Commission staff report, meeting minutes, and resolution are attached for reference as Attachments F, G and H. Airport Land Use Commission (ALUC) Override The project site falls within the airport planning area of the Airport Environs Land Use Plan (AELUP) for the John Wayne Airport. Section 4.3 of the AELUP and Section 21676(b) of the California Public Utilities Code (CPUC) require the City to submit General Plan and Zoning Code amendments to the ALUC for a consistency determination with the AELUP. ALUC conducted a hearing on the Project at its January 18, 2024, meeting and found the Project is inconsistent with the AELUP due to issues with noise, safety and concentrates people in areas susceptible to aircraft accidents. On February 13, 2024, the City Council held a public hearing and adopted Resolution No. 2024-10 to notify ALUC and the California Department of Transportation (Caltrans), Aeronautics Program of the City's intent to override ALUC's determination, as afforded to the City in PUC Section 21676(b). Notice of the Council's action was sent to ALUC and the California Department of Transportation, Aeronautics Program on February 14, 2024, which initiated a 45-day comment period on the intent to override. The City received comments from the ALUC on March 13, 2024 and the Caltrans Aeronautics Program on March 15, 2024 (Attachment 1). The letter from the ALUC reiterates its concerns about the Project and outlines its response to the City's proposed findings of the potential override. The letter from the Caltrans Aeronautics Program also expresses concerns about noise and safety. Staff believes that the noise and safety concerns have been adequately addressed. The Project is located within the updated 60 dBA CNEL contour, consistent with the updated noise contours approved as part of the Housing Element Implementation Noise -Related Amendments. Additionally, the Project has been conditioned to provide an acoustical report which describes the best design features of the structure that will satisfy noise standards, be attenuated to provide a maximum interior noise level of 45 dBA, and provide advanced air filtration systems to promote cleaner air without the opening of windows. These conditions of approval mitigate noise issues for the Project and are consistent with the 45 dBA interior noise standards of the AELUP. With regard to safety concerns, the Project complies with the policies and regulations within the JWA Airport Planning Area and follows the safety standards of the AELUP as it is located within Safety Zone 6 and is not within the JWA Clear Zone/Runway Protection Zone. The FAA conducted an aeronautical study for the Project consistent with the Federal Aviation Regulations. The FAA issued a Determination of No Hazard to Air Navigation on August 21, 2023, thereby finding the Project does not exceed obstruction standards and would not be a hazard to air navigation. 12-9 Approving the Residences at 1401 Quail Street Project and Overriding Orange County Airport Land Use Commission's Determination of Inconsistency April 9, 2024 Page 10 As a final review authority on legislative acts, the City Council may choose to override ALUC's determination with a two-thirds vote if it makes specific findings that the Project is consistent with the purpose of Section 21670 of the CPUC to protect public health, safety, and welfare by ensuring the orderly expansion of airports and the adoption of land use measures that minimize the public's exposure to excessive noise and safety hazards within areas around public airports to the extent that these areas are not already devoted to incompatible uses. FISCAL IMPACT: Pursuant to General Plan Implementation Program 12.1, a fiscal impact analysis was prepared for the project by Applied Development dated November 30, 2023 (Attachment J). The fiscal impact model used in the report calculates public service impacts for specific land uses that support the residential population, the employment base, and the visitor population in Newport Beach. It also calculates the public revenues that each type of land use typically generates for the City, including property taxes, sales taxes, and other taxes as well as a variety of user charges and fees. The report concludes that the proposed ownership residential use of the site would generate a positive fiscal benefit for the City, particularly as compared to the negative fiscal impact of the existing office use of the site. Annually, the existing office use generates a negative fiscal impact of approximately $42,000 per year. Based on the fiscal model analysis, the proposed project would generate a revenue surplus of approximately $128,000 per year. ENVIRONMENTAL REVIEW: Environmental Impact Report Addendum No. 8 has been prepared for the project in compliance with the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and City Council Policy K-3. On the basis of the entire environmental review record, the project will not result in any new significant impacts that were not previously analyzed in the Program Environmental Impact Report (PEIR) for the General Plan 2006 Update (SCH No. 2006011119) or the Housing Element Initial Study/Negative Declaration. All potential impacts associated with this Project would either be the same or less than those described in either the PEIR that have been appropriately mitigated. In addition, there are no substantial changes to the circumstances under which the project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the PEIR, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, an addendum to the previously adopted PEIR is the appropriate environmental document for the project. The entire Addendum No. 8 and its technical appendixes are available online at the City's website at: www.newportbeachca.gov/cega. 12-10 Approving the Residences at 1401 Quail Street Project and Overriding Orange County Airport Land Use Commission's Determination of Inconsistency April 9, 2024 Page 11 NOTICING: Notice of this hearing was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights -of -way and waterways), including the applicant, and posted on the subject property at least 10 days before the scheduled meeting, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. ATTACHMENTS: Attachment A — Resolution No. 2024-25 Attachment B — Resolution No. 2024-27 Attachment C — Ordinance No. 2024-10 Attachment D — Ordinance No. 2024-11 Attachment E — Resolution No. 2024-27 Attachment F — Planning Commission Staff Report Attachment G — Planning Commission Meeting Minutes Attachment H — Planning Commission Resolution No. 2023-047 Attachment I — ALUC and CalTrans Comment Letters Attachment J — Fiscal Impact Memorandum dated November 30, 2023 Attachment K — Project Plans 12-11 Attachment A Resolution No. 2024-25 12-12 RESOLUTION NO. 2024- 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADOPTING ADDENDUM NO. 8 TO THE 2006 GENERAL PLAN UPDATE PROGRAM ENVIRONMENTAL IMPACT REPORT AND THE 2008-2014 CITY OF NEWPORT BEACH HOUSING ELEMENT UPDATE INITIAL STUDY/NEGATIVE DECLARATION FOR THE RESIDENCES AT 1401 QUAIL STREET PROJECT LOCATED AT 1401 QUAIL STREET (PA2023-0040) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, an application was filed by Intracorp Homes ("Applicant"), with respect to the property located at 1401 Quail Street and legally described as Parcel 1 of Resubdivision No. 341 ("Property"); WHEREAS, the Applicant is requesting approvals to demolish an existing office building and develop 67 for -sale condominium units, including a 146-space parking structure ("Project"), which requires the following approvals: • General Plan Amendment ("GPA") — A request to amend the General Plan Land Use Designation of the Property from General Commercial Office (CO-G) to Mixed - Use Horizontal (MU-H2); • Planned Community Development Plan Amendment ("PCDP Amendment") — An amendment to the Newport Place Planned Community (PC-11) Development Plan to include the Property within the Residential Overlay; • Major Site Development Review ("SDR") — A site development review in accordance with the Newport Place Planned Community (PC-11) and Section 20.52.080 (Site Development Reviews) of the Newport Beach Municipal Code ("NBMC") to construct the Project; • Tentative Vesting Tract Map ("VTM") — A Vesting Tentative Tract Map No. 19261 pursuant to Title 19 (Subdivisions) of the NBMC for 67 condominium dwelling units; 12-13 Resolution No. 2024- Page 2 of 9 • Affordable Housing Implementation Plan ("AHIP") — A plan specifying how the Project would meet the City's affordable housing requirements, in exchange for a request of 27.5% increase in density including a request for four development standard waivers related to park land dedication, building setbacks, and building height along with two development concessions related to the mix of affordable units and a partial payment of the park in -lieu fees pursuant to Chapter 20.32 (Density Bonus) of the NBMC and Government Code Section 65915 et seq. ("State Density Bonus Law"); • Development Agreement ("DA") — A development agreement, between the Applicant and the City, pursuant to Section 15.45.020 (Development Agreement Required) of the NBMC, which would provide the Applicant with vested right to develop the Project for a term of ten years and provide negotiated public benefits to the City; and • Addendum No. 8 to the 2006 General Plan Update Program Environmental Impact Reports and the 2008-2014 City of Newport Beach Housing Element Update and Initial Study/Negative Declaration ("Addendum No. 8") — An addendum which addresses reasonably foreseeable environmental impacts resulting from the Project; WHEREAS, the Property is designated General Commercial Office (CO-G) by the General Plan Land Use Element and located within the Newport Place Planned Community (PC-11) Zoning District in the Industrial Site 3A sub -area; WHEREAS, the Property is not located within the coastal zone; therefore, amending the Local Coastal Program and obtaining a coastal development permit are not required; WHEREAS, a public hearing was held by the Planning Commission on December 21, 2023 in the Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and Chapter 15.45 (Development Agreements), Chapter 19.20 (Vesting Tentative Map), Chapter 20.56 (Planned Community District Procedures), and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; 12-14 Resolution No. 2024- Page 3 of 9 WHEREAS, at the hearing, the Planning Commission adopted Resolution No. PC2023-047 by a majority vote (6 ayes, 0 nays, 1 absent) recommending the City Council approve the Project; WHEREAS, California Public Utilities Code ("CPUC") Section 21676(b) requires the City to refer the Project to the Orange County Airport Land Use Commission ("ALUC") to review for consistency with the 2008 John Wayne Airport Environs Land Use Plan ("AELU P"); WHEREAS, on January 18, 2024, the ALUC determined the Project is inconsistent with the AELUP; WHEREAS, pursuant to Sections 21670 and 21676 of CPUC, the City Council may, after a public hearing, propose to overrule the ALUC with a two-thirds vote, if it makes specific findings that the Project is consistent with the purpose of Section 21670 of the CPUC to protect the public health, safety, and welfare by ensuring the orderly expansion of airports and the adoption of land use measures that minimize the public's exposure to excessive noise and safety hazards within areas around public airports to the extent that these areas are not already devoted to incompatible uses; WHEREAS, a public hearing was held by the City Council on February 13, 2024, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place, and purpose of the hearing was given in accordance with CPUC Section 21676(b) and the Ralph M. Brown Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; WHEREAS, at the conclusion of the hearing, the City Council adopted Resolution No. 2024-10 by unanimous vote (7 ayes, 0 nays) to notify the ALUC and State Department of Transportation Aeronautics Program ("Aeronautics Program") of the City's intent to override ALUC's inconsistency finding; WHEREAS, notice of the City's intent to override the ALUC inconsistency determination, along with Resolution No. 2024-10 was sent via certified mail and emailed to the ALUC and the Aeronautics Program on February 14, 2024; WHEREAS, the City received timely comments in response to the notice of the City's intent to override the ALUC inconsistency determination from the ALUC and the Aeronautics Program in accordance with CPUC Section 21676; and 12-15 Resolution No. 2024- Page 4 of 9 WHEREAS, a public hearing was held by the City Council on April 9, 2024, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act, Chapter 15.45 (Development Agreements), Chapter 19.20 (Vesting Tentative Maps), Chapter 20.56 (Planned Community District Procedures), and Chapter 20.62 (Public Hearings) of the NBMC, and CPUC Section 21676(b). Evidence, both written and oral, was presented to, and considered by, the City Council at this meeting. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council adopted Resolution No. 2006-75 on July 25, 2026, thereby certifying the adequacy and completeness of the Environmental Impact Report ("EIR") for the General Plan Update (SCH No. 2006011119), which is attached hereto as Exhibit "A" and incorporated herein by reference. The EIR was prepared in compliance with CEQA Guidelines set forth in the California Public Resources Code Section 21000 et seq. and its implementing State regulations set forth in the California Code of Regulations Title 14, Division 6, Chapter 3 (CEQA Guidelines) and City Council Policy K- 3. Additionally, in accordance with Section 15168(a) of the CEQA Guidelines, the City prepared the EIR as a Program Environmental Impact Report (PEIR). This PEIR analyzed the potential impacts of a citywide land use plan, and the goals and policies of 10 general plan elements. Section 2: The City Council adopted General Plan Amendment No. GP2008- 003 on November 22, 2011, thereby approving the 2008-2014 City of Newport Beach Housing Element Update Initial Study/Negative Declaration under CEQA, which is attached hereto as Exhibit "B" and incorporated herein by reference. Section 3: The City Council adopted Resolution Nos. 2007-79 and 2012-62 on December 11, 2007 and July 24, 2021 respectively, approving Addenda Nos. 1 and 2 to the 2006 General Plan Update EIR which are attached hereto as Exhibits "C" and "D" and incorporated herein by reference, to analyze changes to the development intensities within the North Newport Center Planned Community ("NNCPC") Development Plan. No analysis specific to the Property was included in Addenda Nos. 1 and 2. 12-16 Resolution No. 2024- Page 5 of 9 Section 4: The City Council adopted Resolution No. 2020-78 on September 8, 2020, approving Addendum No. 3 (ER2020- 002), which is attached hereto as Exhibit "E" and incorporated herein by reference, to the 2006 General Plan Update EIR to amend the General Plan Land Use Designation of the Newport Airport Village project located 4341, 4361, and 4501 Birch Street; 4320, 4340, 4360, 4400, 4500, 4520, 4540, 4570, 4600, and 4630 Campus Drive; and 4525, 4533, and 4647 MacArthur Boulevard, from Airport Office and Supporting Uses (AO) to Mixed -Use Horizontal 2 (MU-H2) and to amend Table LU2 (Anomaly Locations) to add Anomaly No. 86 to allow for the development of 329 dwelling units, exclusive of any permitted density bonus, and 297, 572 square feet of commercial uses. No analysis specific to the Property was included in Addendum No. 3. Section 5: The City Council adopted Resolution No. 2021-2 on January 26, 2021, approving Addendum No. 4 (ER2020-003), which is attached hereto as Exhibit "F" and incorporated herein by reference, to the PEIR to amend Planned Community Development Plan No. 15 (Koll Center Newport Planned Community) for the creation of a residential overlay zone and a park overlay zone to allow for residential use and a public park within the Koll Center Newport Professional and Business Office Site B, including a major site development review, traffic study, lot line adjustment, affordable housing implementation plan, and development agreement for the Residences at 4400 Von Karman Project. No analysis specific to the Property was included in Addendum No. 4. Section 6: The City Council adopted Resolution No. 2022-19 on March 22, 2022, approving Addendum No. 5 (ER2022-001), which is attached hereto as Exhibit "G" and incorporated herein by reference, to the PEIR to approve the Residences at 1300 Bristol Street Project. No analysis specific to the Property was included in Addendum No. 5. Section 7: The Planning Commission approved Resolution No. PC2022-011 on May 12, 2022, approving Addendum No. 6 (ER2022-002), which is attached hereto as Exhibit "H" and incorporated herein by reference, to the PEIR to approve the Ritz Carlton Residences Project. No analysis specific to the Property was included in Addendum No. 6. Section 8: The Planning Commission recommended approval to City Council Addendum No. 7 (PA2022-0296) on December 7, 2023, which is attached hereto as Exhibit "I" and incorporated herein by reference, to the PEIR for the consideration of the Residences at 1400 Bristol Street Project. No analysis specific to the Property was included in Addendum No. 7. 12-17 Resolution No. 2024- Page 6 of 9 Section 9: Pursuant to Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, when an EIR has been certified for a project, no subsequent EIR is required unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following: a. Substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; b. Substantial changes occurred with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or G. New information of substantial importance, which was not known and could not have been known with the exercise of reasonable due diligence at the time the previous EIR was certified as complete, shows any of the following: The project will have one or more significant effects not discussed in the previous EIR; ii. Significant effects previously examined will be substantially more severe than shown in the previous EIR; iii. Mitigation measures or alternatives previously found not to be feasible would, in fact, be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or iv. Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. Section 10: Addendum No. 8 to the PEIR was prepared pursuant to Section 15162 (Subsequent EIRs and Negative Declarations) and 15164 (Addendum to an EIR or Negative Declaration) of the CEQA Guidelines. 12-18 Resolution No. 2024- Page 7 of 9 Section 11: The following environmental topics were analyzed for the Project: Aesthetics, Air Quality, Biological Resources, Cultural Resources, Energy, Geology and Soils, Greenhouse Gas Emissions, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation, Tribal and Cultural Resources, Utilities and Service Systems, and Wildfire. The Addendum includes analysis of new topics that were not included in the previous EIRs; specifically, it includes a new energy section and a new wildfire section. These additional analyses are appropriate for inclusion in the Addendum, but none result in new or increased significant impacts that would require preparation of a subsequent EIR pursuant to Section 15162 of the CEQA Guidelines. Section 12: On the basis of the PEIR and entire environmental review record, the Project (inclusive of recommended conditions of approval) will not result in any new significant impacts that were not previously analyzed in the PEIR, Addenda Nos. 1, 2, 3, 4, 5, 6, and 7 to the PEIR. Addendum No. 8 confirms and provides substantial evidence that the potential impacts associated with this Project would either be the same or less than those described in the PEIR or Addenda Nos. 1, 2, 3, 4, 5, 6 and 7 to the PEIR. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the PEIR, Addenda Nos. 1, 2, 3, 4, 5, 6 and 7 to the PEIR nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, an addendum to the previously adopted PEIR, Addenda Nos. 1, 2, 3, 4, 5, 6 and 7 to the PEIR is the appropriate environmental document for the Project. In taking action to approve any of the requested applications for the Project, the data presented in the PEIR, Addenda Nos. 1, 2, 3, 4, 5, 6 and 7 to the PEIR as augmented by Addendum No. 8 for this Project, are considered as part of the record. Section 12: Addendum No. 8 which is attached hereto as Exhibit "J" is hereby adopted by the City Council. Addendum No. 8 and related referenced documentation including, but not limited to Exhibits "A" through "I," constitute the administrative record upon which this decision was based, are on file with the Planning Division, City Hall, 100 Civic Center Drive, Newport Beach, California. 12-19 Resolution No. 2024- Page 8 of 9 Section 13: The City Council finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger. Section 14: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 15: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 12-20 Resolution No. 2024- Page 9 of 9 Section 16: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 9th day of April, 2024. Will O'Neill Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFF E Aaribn C. Harp City Attorney Attachment(s): Exhibit "A" - 2006 General Plan Update EIR Exhibit "B" - 2008- 2014 City of Newport Beach Housing Element Update Initial Study/ Negative Declaration Exhibit "C" - Addendum No. 1 (North Newport Center) Exhibit "D" - Addendum No. 2 (North Newport Center Planned Community Amendment) Exhibit "E" - Addendum No. 3 (Newport Airport Village - ER2020- 002) Exhibit "F" - Addendum No. 4 (Residences at 4400 Von Karman — ER2020- 003) Exhibit "G" - Addendum No. 5 (Residences at 1300 Bristol — ER2022- 001) Exhibit "H" - Addendum No. 6 (Ritz Carlton Residences — PA2021- 296) Exhibit "I" - Addendum No. 7 (Residences at 1400 Bristol Street) Exhibit "J" - Addendum No. 8 (Residences at 1401 Quail Street) 12-21 Exhibit "A" The 2006 General Plan Update EIR Available separately due to bulk at: https://www.newportbeachca.gov/government/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 12-22 Exhibit "B" 2008-2014 City of Newport Beach Housing Element Update Initial Study/ Negative Declaration Available separately due to bulk at: https://www.newportbeachca.gov/government/departments/community- development/planning-division/projects-environmental-document-download- page/environmental-document-download-page-arch 12-23 Exhibit "C" Addendum No. 1 (North Newport Center) Available separately due to bulk at: https://www.newportbeachca.gov/governmenVdepartments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 12-24 Exhibit "D" Addendum No. 2 (North Newport Center Planned Community Amendment) Available separately due to bulk at: https://www.newportbeachca.gov/qovernment/departments/com_munity- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 12-25 Exhibit "E" Addendum No. 3 (Newport Airport Village — ER2020-002) Available separately due to bulk at: https://www. newportbeachca.gov/government/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 12-26 Exhibit "F" Addendum No. 4 (Residences at 4400 Von Karman - ER2020- 003) Available separately due to bulk at: https://www.newportbeachca.gov/government/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 12-27 Exhibit "G" Addendum No. 5 (Residences at 1300 Bristol - ER2022-001) Available separately due to bulk at: https://www. newportbeachca.gov/qovernment/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 12-28 Exhibit "H" Addendum No. 6 (Ritz Carlton Residences - PA2021-296) Available separately due to bulk at: https://www.newportbeachca.gov/government/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 12-29 Exhibit "I" Addendum No. 7 (Residences at 1400 Bristol Street) Available separately due to bulk at: https://www. newportbeachca.gov/government/departments/community- development/planning-division/proiects-environmental-document-download- page/environmental-document-download-page 12-30 Exhibit "J" Addendum No. 8 (Residences at 1401 Quail Street) Available separately due to bulk at: https://www. newportbeachca.gov/government/d epartments/commu nity- development/planning-division/protects-environmental-document-download- page/environmental-document-download-page 12-31 Attachment B Resolution No. 2024-26 12-32 RESOLUTION NO. 2024- 26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A GENERAL PLAN AMENDMENT, SITE DEVELOPMENT REVIEW, VESTING TENTATIVE TRACT MAP, AND AFFORDABLE HOUSING IMPLEMENTATION PLAN, FOR THE RESIDENCES AT 1401 QUAIL STREET PROJECT LOCATED AT 1401 QUAIL STREET (PA2023- 0040) WHEREAS, Section 200 of the City of Newport Beach ("City') Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, an application was filed by Intracorp Homes ("Applicant'), with respect to the property located at 1401 Quail Street and legally described as Parcel 1 of Resubdivision No. 341 ("Property"); WHEREAS, the Applicant is requesting approvals to demolish an existing office building and develop 67 for -sale condominium units, including a 146-space parking structure ("Project'), which requires the following approvals: • General Plan Amendment ("GPA") — A request to amend the General Plan Land Use Designation of the Property from General Commercial Office (CO-G) to Mixed -Use Horizontal (MU-H2); • Planned Community Development Plan Amendment ("PCDP Amendment') — An amendment to the Newport Place Planned Community (PC-11) Development Plan to include the Property within the Residential Overlay; • Major Site Development Review ("SDR") — A site development review in accordance with the Newport Place Planned Community (PC-11) and Section 20.52.080 (Site Development Reviews) of the Newport Beach Municipal Code ("NBMC") to construct the Project; • Tentative Vesting Tract Map ("VTM") — A Vesting Tentative Tract Map No. 19261 pursuant to Title 19 (Subdivisions) of the NBMC for 67 condominium dwelling units; 12-33 Resolution No. 2024- Page 2 of 29 • Affordable Housing Implementation Plan ("AHIP") — A plan specifying how the Project would meet the City's affordable housing requirements, in exchange for a request of 27.5% increase in density including a request for four development standard waivers related to park land dedication, building setbacks, and building height along with two development concessions related to the mix of affordable units and a partial payment of the park in -lieu fees pursuant to Chapter 20.32 (Density Bonus) of the NBMC and Government Code Section 65915 et seq. ("State Density Bonus Law"); • Development Agreement ("DA") — A development agreement between the Applicant and the City, pursuant to Section 15.45.020 (Development Agreement Required) of the NBMC, which would provide the Applicant with vested right to develop the Project for a term of ten years and provide negotiated public benefits to the City; and • Addendum No. 8 to the 2006 General Plan Update Program Environmental Impact Reports and the 2008-2014 City of Newport Beach Housing Element Update and Initial Study/Negative Declaration ("Addendum No. 8") — An addendum which addresses reasonably foreseeable environmental impacts resulting from the Project; WHEREAS, the Property is designated General Commercial Office (CO-G) by the General Plan Land Use Element and located within the Newport Place Planned Community (PC-11) Zoning District in the Industrial Site 3A sub -area; WHEREAS, the Property is not located within the coastal zone; therefore, amending the Local Coastal Program and obtaining a coastal development permit are not required; WHEREAS, a public hearing was held by the Planning Commission on December 21, 2023 in the Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and Chapter 15.45 (Development Agreements), Chapter 19.20 (Vesting Tentative Map), Chapter 20.56 (Planned Community District Procedures), and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; 12-34 Resolution No. 2024- Page 3 of 29 WHEREAS, at the hearing, the Planning Commission adopted Resolution No. PC2023-047 by a majority vote (6 ayes, 0 nays, 1 absent) recommending the City Council approve the Project; WHEREAS, California Public Utilities Code ("CPUC") Section 21676(b) requires the City to refer the Project to the Orange County Airport Land Use Commission ("ALUC") to review for consistency with the 2008 John Wayne Airport Environs Land Use Plan ("AELUP"); WHEREAS, on January 18, 2024, the ALUC determined the Project is inconsistent with the AELUP; WHEREAS, pursuant to Sections 21670 and 21676 of CPUC, the City Council may, after a public hearing, propose to overrule the ALUC with a two-thirds vote, if it makes specific findings that the Project is consistent with the purpose of Section 21670 of the CPUC to protect the public health, safety, and welfare by ensuring the orderly expansion of airports and the adoption of land use measures that minimize the public's exposure to excessive noise and safety hazards within areas around public airports to the extent that these areas are not already devoted to incompatible uses; WHEREAS, a public hearing was held by the City Council on February 13, 2024, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place, and purpose of the hearing was given in accordance with CPUC Section 21676(b) and the Ralph M. Brown Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; WHEREAS, at the conclusion of the hearing, the City Council adopted Resolution No. 2024-10 by unanimous vote (7 ayes, 0 nays) to notify the ALUC and State Department of Transportation Aeronautics Program ("Aeronautics Program") of the City's intent to override ALUC's inconsistency finding; WHEREAS, notice of the City's intent to override the ALUC inconsistency determination, along with Resolution No. 2024-10 was sent via certified mail and emailed to the ALUC and the Aeronautics Program on February 14, 2024; WHEREAS, the City received timely comments in response to the notice of the City's intent to override the ALUC inconsistency determination from the ALUC and the Aeronautics Program in accordance with CPUC Section 21676; and 12-35 Resolution No. 2024- Page 4 of 29 WHEREAS, a public hearing was held by the City Council on April 9, 2024, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act, Chapter 15.45 (Development Agreements), Chapter 19.20 (Vesting Tentative Maps), Chapter 20.56 (Planned Community District Procedures), and Chapter 20.62 (Public Hearings) of the NBMC, and CPUC Section 21676(b). Evidence, both written and oral, was presented to, and considered by, the City Council at this meeting. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council has considered the recommendation of the Planning Commission and determined that modifications to the Project made by the City Council, if any, are not major changes that require referral back to the Planning Commission for consideration and recommendation. Section 2: The City Council hereby approves a General Plan Amendment, Site Development Review, Vesting Tentative Tract Map No. 19261, and Affordable Housing Implementation Plan, subject to the conditions of approval which are attached hereto as Exhibits "A" through "E" respectively, and incorporated herein by reference. Section 3: An amendment to the 2006 Newport Beach General Plan Land Use Element is a legislative act. Neither Title 20 (Planning and Zoning) of the NBMC nor California Government Code Section 65000 et seq., set forth any required findings for either approval or denial of such amendments. Notwithstanding the foregoing, the Project is consistent with the General Plan and the GPA is consistent with other General Plan policies as follows: 1. The request is to amend the General Plan Land Use designation from General Commercial Office (CO-G) to Mixed -Use Horizontal (MU-112). The Mixed -Use Horizontal (MU-H2) designation applies to properties located in the Airport Area. It provides for a horizontal intermixing of uses that may include regional commercial office, multifamily residential, vertical mixed -use buildings, industrial, hotel rooms, and ancillary neighborhood commercial uses. 2. The GPA and the resulting land use change are compatible with the existing surrounding uses and planned land uses identified by the General Plan because the Project would introduce additional residential land uses in the Airport Area which includes a diverse mix of land uses including the gradual development of 12-36 Resolution No. 2024- Page 5 of 29 residential multifamily dwellings. Additionally, even with the conversion from General Commercial Office (CO-G) to Mixed -Use Horizontal (MU-H2), the building will be compatible with adjacent commercial properties architectural style and pedestrian connectivity. Additional residential development would support commercial properties within the Airport Area. 3. The GPA from General Commercial Office (CO-G) to Mixed -Use Horizontal (MU- H2) does not eliminate existing or future land uses to the overall detriment of the community given the Property's size, location, and surrounding uses. The existing office buildings were built in the 1970's and there are sufficient office facilities in the Airport Area to support the business needs of the community. The proposed change to allow residential uses would increase the City's housing stock including the provision of eight units that will be affordable to lower income households. 4. The Property is located in an area of the city that has sufficient utilities systems to serve the Project once the Applicant completes a necessary upgrade to an off -site sewer line. As conditioned, the Applicant shall be responsible for their fair share of replacing the existing 10-inch vitrified clay pipe ("VCF) pipe with a 12-inch sewer main, which is located near the intersection of Newport Place and Dove Street. This off -site improvement would result in approximately 435 linear feet of sewer line replacement. No other off -site improvements other than typical utility connections are proposed or required as part of the project. 5. The Project is consistent with the following City of Newport Beach General Plan policies that establish fundamental criteria for the formation and implementation of new residential villages in the Airport Area (additional policy analysis is included in Addendum No. 8, prepared for the Project). a. Land Use Policy LU 1.1 (Unique Environment): Maintain and enhance the beneficial and unique character of the different neighborhoods, business districts, and harbor that together identify Newport Beach. Locate and design development to reflect Newport Beach's topography, architectural diversity, and view sheds. The Project enhances the distinct, urban character of the Airport Area by providing a means for replacing parking lots and an office building with attractive and functional residential development, in line with the General Plan goal of transitioning the Airport Area to a mixed -use community. The Property is not in or near any of the City's areas featuring the harbor, unique 12-3 7 Resolution No. 2024- Page 6 of 29 topography, or view sheds. The proposed project would introduce residential units to the Property consistent with the uses and urbanized character of the Airport Area and the proposed Mixed -Use Horizontal (MU- H2) designation. b. Land Use Policy LU 2.3 (Range of Residential Choices). Provide opportunities for the development of residential units that respond to community and regional needs in terms of density, size, location, and cost. Implement goals, policies, programs, and objectives identified within the City's Housing Element. The Project establishes 67 multi -family residential units, including 8 affordable units for families of low and very -low income. The Project responds to market needs and diversifies the City's housing stock by adding additional dwelling units to the Airport Area. C. Land Use Policy LU 3.8 (Project Entitlement Review with Airport Land Use Commission) - Refer the adoption or amendment of the General Plan, Zoning Code, specific plans, and Planned Community development plans for land within the John Wayne Airport planning area, as established in the JWA Airport Environs Land Use Plan (AELUP), to the Airport Land Use Commission (ALUC) for Orange County for review, as required by Section 21676 of the California Public Utilities Code. In addition, refer all development projects that include buildings with a height greater than 200 feet above ground level to the ALUC for review. The Project is within the boundaries of the AELUP, therefore, the ALUC, must review the GPA and PCDP Amendment pursuant to Government Code Section 65302.3 and Public Utilities Code Section 21676. The purpose of ALUC's review is to determine whether the Project is consistent with the AELUP prior to the City Council taking action on the Project. The Project is consistent with the noise and safety standards of the AELUP. With respect to noise, the City adopted noise -related amendments to the General Plan Noise and Land Use Elements, the Newport Place Planned Community (PC-11) and Title 20 (Planning and Zoning) of the NBMC contours to implement the 6th Cycle Housing Element. The Project is located partially within the updated 60 decibel ("dBA") community noise equivalent level ("CNEL") contour as shown in Figure N5 of the Noise Element of the General Plan, where residential development is allowed. As a result, the 12-38 Resolution No. 2024- Page 7 of 29 Project will be required to comply with the development standards set forth in Section 20.30.080(F) (Noise - Airport Environs Land Use Plan) of the NBMC. The Property is outside of any safety zones set forth in the AELUP, therefore, is consistent with the noise standards of the AELUP. d. Land Use Policy LU 6.15.3 (Airport Compatibility). Require that all development be constructed in conformance with the height restrictions set forth by the Federal Aviation Administration (FAA), Federal Aviation Regulations (FAR) Part 77, and Caltrans Division of Aeronautics, and that residential development shall be allowed only on parcels with noise levels of less than John Wayne Airport 65 d8A CNEL noise contour area as shown in Figure N5 of the Noise Element of the General Plan, unless and until the City determines, based on substantial evidence, that the sites wholly within the 65 d8A CNEL noise contour shown in Figure N5 are needed for the City to satisfy its Sixth Cycle RHNA mandate. Nonresidential uses are, however, encouraged on parcels located wholly within the 65 d8A CNEL contour area. The Project is located at 1401 Quail Street and approximately 81 feet in height. The Federal Aviation Administration ("FAA") conducted an aeronautical study of the Project pursuant to applicable federal regulations and has determined no hazard to air navigation for the Project. The Project is located partially within the updated 60 dBA CNEL contour as shown in Figure N5 of the Noise Element of the General Plan, where residential development is allowed, subject to the development standards set forth in Section 20.30.080(F) (Noise - Airport Environs Land Use Plan) of the NBMC. e. Land Use Policy LU 6.15.5 (Residential and Supporting Uses). Accommodate the development of a maximum of 2,200 multi -family residential units, including work force housing, and mixed -use buildings that integrate residential with ground level office or retail uses, along with supporting retail, grocery stores, and parklands. Residential units may be developed only as the replacement of underlying permitted nonresidential uses. When a development phase includes a mix of residential and nonresidential uses or replaces existing industrial uses, the number of peak hour trips generated by cumulative development of the site shall not exceed the number of trips that would result from development of the underlying 12-39 Resolution No. 2024- Page 8 of 29 permitted nonresidential uses. However, a maximum of 550 units may be developed as infill on surface parking lots or areas not used as occupiable buildings on properties within the Conceptual Development Plan Area depicted on Figure LU22 provided that the parking is replaced on site. General Plan Land Use Policy LU 6.15.5 establishes a development limit of 2,200 maximum dwelling units for the Airport Area. 4f the 2,200 residential units allowed, 1,650 units may be developed as replacement of existing office, retail, and/or industrial uses. The remaining 550 units are classified as additive units meaning they are not required to replace other units and they may be constructed as "in -fill' units to existing commercial or office development within the Conceptual Development Plan Area ("CDPA") of the Airport Area. Any eligible density bonus allowed by State Density Bonus Law and Chapter 20.32 (Density Bonus) of the NBMC are not included in the 2,200-unit allowance. The 550 additive units have been previously allocated to the Uptown Newport and Residences at 4400 Von Karman projects. The Property is developed with an existing one-story commercial office building totaling 22,956 square feet. Since the Project can be developed only as the replacement of the underlying nonresidential use (office), and the number of peak hour trips generated by cumulative development of the Property shall not exceed the number of trips that would result from development of the underlying permitted nonresidential uses, a conversion rate of 2.29 dwelling units per 1,000 square feet of commercial floor area is required. This results in a total of 52 dwelling units. With a 27.5% density bonus or 15 dwelling units request, a total of 67 (52+15) dwelling units are proposed for the Project. Presently, there are a total of 353 remaining and available dwelling units in the Airport Area. Considering the dwelling unit sum of the previously approved projects and this Project, the remaining development allocation within the Airport Area would be 301 (353-52) dwelling units (exclusive of density bonus units). A separate project, Residences at 1400 Bristol, is under review to allow 64 units (exclusive of any density bonus). Assuming the 1400 Bristol project is approved, the remaining development allocation would be reduced to 212 (301-89=212) dwelling units. 12-40 Resolution No. 2024- Page 9 of 29 f. Land Use Policy LU 6.15.6 (Size of Residential Villages). Allow development of mixed -use residential villages, each containing a minimum of 10 acres and centered on a neighborhood park and other amenities (as conceptually illustrated in Figure LU23). The first phase of residential development in each village shall encompass at least 5 gross acres of land, exclusive of existing rights -of -way. This acreage may include multiple parcels provided that they are contiguous or face one another across an existing street. At the discretion of the City, this acreage may also include part of a contiguous property in a different land use category, if the City finds that a sufficient portion of the contiguous property is used to provide functionally proximate parking, open space, or other amenity. The "Conceptual Development Plan" area shown on Figure LU22 shall be exempt from the 5-acre minimum, but a conceptual development plan described in Policy LU 6.15.11 shall be required. The Property is 1.71 acres in size. The Residential Overlay of the Newport Place Planned Community (PC-11) allows residential development on sites containing less than 10-acres if housing units affordable to lower income households are provided. The Project includes eight dwelling units that will be affordable for low and very low-income households. If the Newport Place Planned Community (PC-11) is amended to include the Project within the Residential Overlay, as requested by the Applicant, the Project will be exempt from General Plan Land Use Policy LU 6.15.6 (Size of Residential Villages). g. Land Use Policy LU 6.15.7 (Overall Density and Housing Types). Require that residential units be developed at a minimum density of 30 units and maximum of 50 units per net acre averaged over the total area of each residential village. Net acreage shall be exclusive of existing and new rights - of -way, public pedestrian ways, and neighborhood parks. Within these densities, provide for the development of a mix of building types ranging from townhomes to high-rises to accommodate a variety of household types and incomes and to promote a diversity of building masses and scales. The Project has a base density of 30 units per acre (52 units on 1.71 acres) which is consistent with the 30 to 50 dwelling units per acre allowed range. The base density does not include the 27.5% density bonus of 15 units that is allowed by the State Bonus Density Law and Chapter 20.32 (Density Bonus) of the NBMC which includes eight units set aside for affordable 12-41 Resolution No. 2024- Page 10 of 29 housing. Altogether, the Project has an overall density of 39 dwelling units per acre, which is exclusive of rights -of -ways, public pedestrian ways, and neighborhood parks. The Project is a for -sale development with 67 condominium units, which provides residents with an ownership option that differs from surrounding apartment projects. There is a mixture of unit types, ranging from two - bedroom to three -bedroom units, accommodating a variety of household types and incomes. Of the 67 units, eight units will be affordable to low and very low-income households and 59 units will be market -rate housing. h. Land Use Policy LU 6.15.9 (Subsequent Phase Development Location and Density). Subsequent phases of residential development shall abut the first phase or shall face the first phase across a street. The minimum density of residential development (including residential mixed -use development) shall be 30 units per net acre and shall not exceed the maximum of 50 units per net acre averaged over the development phase. The Project would be developed in one phase on an individual site with a density of 39 units per acre. The Project provides a mixture of residential unit types that include eight units of affordable housing to low and very low- income households. The proposed density is below the required minimum of 45 units per acre since the applicant is providing a lower density to accommodate larger individual units for residents. Land Use Policy LU 6.15.13 (Neighborhood Parks Standards). To provide a focus and identity for the entire neighborhood and to serve the daily recreational and commercial needs of the community within easy walking distance of homes, require dedication and improvement of at least 8 percent of the gross land area (exclusive of existing rights -of -way) of the first phase development in each neighborhood, or % acre, whichever is greater, as a neighborhood park. This requirement may be waived by the City where it can be demonstrated that the development parcels are too small to feasibly accommodate the park or inappropriately located to serve the needs of local residents, and when an in -lieu fee is paid to the City for the acquisition and improvement of other properties as parklands to serve the Airport Area. In every case, the neighborhood park shall be at least 8%of the total Residential Village Area or one acre in area, whichever is greater, and shall 12-42 Resolution No. 2024- Page 11 of 29 have a minimum dimension of 150 feet. Park acreage shall be exclusive of existing or new rights -of -way, development sites, or setback areas. A neighborhood park shall satisfy some or all of the requirements of the Park Dedication Ordinance, as prescribed by the Recreation Element of the General Plan. The Project includes a waiver from General Plan Land Use Policy LU 6.15.13, as is allowed by the policy, due to a 1.71-acre parcel size that is too small to feasibly accommodate a park. As a part of the DA, the Applicant is proposing to use an incentive or concession allowed under State Density Bonus Law to waive a portion of the required in -lieu fee. Land Use Policy LU 6.15.14 (Location). Require that each neighborhood park is clearly public in character and is accessible to all residents of the neighborhood. Each park shall be surrounded by public streets on at least two sides (preferably with on -street parking to serve the park), and shall be linked to residential uses in its respective neighborhood by streets or pedestrian ways. See finding for General Plan Land Use Policy LU 6.15.13 (Neighborhood Park Standards) above, which is incorporated herein by reference. k. Land Use Policy LU 6.15.16 (On -Site Recreation and Open Space Standards). Require developers of multi -family residential developments on parcels 8 acres or larger to provide on -site recreational amenities. For these developments, 44 square feet of on -site recreational amenities shall be provided for each dwelling unit in addition to the requirements under the City's Park Dedication Ordinance and in accordance with the Parks and Recreation Element of the General Plan. On -site recreational amenities can consist of public urban plazas or squares where there is the capability for recreation and outdoor activity. These recreational amenities may also include swimming pools, exercise facilities, tennis courts, and basketball courts. Where there is insufficient land to provide on -site recreational amenities, the developer shall be required to pay cash in -lieu that would be used to develop or upgrade nearby recreation facilities to offset user demand as defined in the City's Park Dedication Fee Ordinance. The acreage of on -site open space developed with residential projects may be credited against the parkland dedication requirements where it is 12-43 Resolution No. 2024- Page 12 of 29 accessible to the public during daylight hours, visible from public rights -of - way, and is of sufficient size to accommodate recreational use by the public. However, the credit for the provision of on -site open space shall not exceed 30% of the parkland dedication requirements. The Project is located on a 1.71-acre site and is not subject to Land Use Policy LU 6.15.16, as the policy only applies to properties consisting of 8- acres or larger. However, the Project exceeds the 2,948-square-foot (44 square feet x 67 units) on -site recreational amenities by providing a total of 7,597 square feet or approximately 113 square feet per unit which includes a pool deck with swimming pool and spa, a clubroom, an outdoor seating area, and a lounge area. Land Use Policy LU 6.15.17 (Street and Pedestrian Grid). Create a pattern of streets and pedestrian ways that breaks up large blocks, improves connections between neighborhoods and community amenities, and is scaled to the predominantly residential character of the neighborhoods. The Project is a podium style development with an internal driveway for vehicular circulation to the lobby and garage entry, accessed from Spruce Street. Pedestrian connections are provided to public sidewalks along Spruce Street and Quail Street. The Project retains the curb -to -curb dimension of both Quail Street and Spruce Street. M. Land Use Policy LU 6.15.18 (Walkable Streets). Retain the curb -to -curb dimension of existing streets but widen sidewalks to provide park strips and generous sidewalks by means of dedications or easements. Except where traffic loads preclude fewer lanes, add parallel parking to calm traffic, buffer pedestrians, and provide short term parking for visitors and shop customers. See finding for Land Use Policy LU 6.15.17 (Street and Pedestrian Grid) above, which is incorporated herein by reference. n. Land Use Policy LU 6.15.19 (Connected Streets). Require dedication and improvement of new streets as shown on Figure LU23. The illustrated alignments are tentative and may change as long as the routes provide the intended connectivity. If traffic conditions allow, connect new and existing streets across Macarthur Boulevard with signalized intersections, crosswalks, and pedestrian refuges in the median. 12-44 Resolution No. 2024- Page 13 of 29 See finding for Land Use Policy LU 6.15.17 (Street and Pedestrian Grid) above, which is incorporated herein by reference. o. Land Use Policy LU 6.15.20 (Pedestrian Improvements). Require the dedication and improvement of new pedestrian ways as conceptually shown on Figure LU23. The alignment is tentative and may change as long as the path provides the intended connectivity. For safety, the full length of pedestrian ways shall be visible from intersecting streets. To maintain an intimate scale and to shade the path with trees, pedestrian ways should not be sized as fire lanes. Pedestrian ways shall be open to the public at all times. The Project includes conditions of approval requiring the reconstruction of all broken and/or damaged curb, gutter, and sidewalk along Spruce and Quail Street frontages to preserve all existing sidewalks for pedestrian access. P. Land Use Policy LU 6.15.22 (Building Massing). Require that high-rise structures be surrounded with low- and mid -rise structures fronting public streets and pedestrian ways or other means to promote a more pedestrian scale. The Project is approximately 81 feet in height and is compatible with nearby properties located in the Airport Area. The adjacent property at 1451 Quail Street is developed with an approximately 37-foot-tall office building. The 1400 Quail Street property, located directly across Quail Street, is developed with an approximately 30-foot-tall office building. This is consistent with the policy as there are lower structures surrounding the Project, which is taller. Furthermore, a 78-foot-tall residential apartment building has been approved to be constructed at 1300 Bristol Street, which is located across Spruce Street. Finally, 1400 Bristol, which is the adjacent property, is proposing a 229-unit apartment project that is 85 feet in height. The Project includes pedestrian connectivity to public sidewalks along Bristol Street and Spruce Street and pedestrian -scale landscaped areas around the apartment building. q. Land Use Policy LU 6.15.23 (Sustainability Development Practices). Require that development achieves a high level of environmental 12-45 Resolution No. 2024- Page 14 of 29 sustainability that reduces pollution and consumption of energy, water, and natural resources. This may be accomplished through the mix and density of uses, building location and design, transportation modes, and other techniques. Among the strategies that should be considered are the integration of residential with jobs -generating uses, use of alternative transportation modes, maximized walkability, use of recycled materials, capture and re -use of storm water on -site, water conserving fixtures and landscapes, and architectural elements that reduce heat gain and loss. The Project is required to comply with the provisions of the of the Building and Energy Efficiency Standards codified in Title 24, Parts 6 and 11 of the California Code of Regulations ("CCR") and the Green Building Standards Code codified in Title 24, Part 11 of the CCR - CALGreen. Additionally, the Project would implement water -efficient landscaping, water quality best management practices to treat surface runoff from the Property, and low impact development practices. The Project is also adjacent to office developments in the Airport Area and would provide housing near employment opportunities. The Project includes pedestrian linkage to public sidewalks that would provide connections throughout the site and to adjacent and surrounding uses, thereby providing an alternative mode of public transportation for the residents and their visitors. The Project would also provide alternative forms of transportation to residents by locating close to the existing Orange County Transportation Authority ("OCTA") bus routes provided along Bristol Street and Birch Street. Tribal Consultation Finding: Pursuant to California Government Code Section 65352.3 ("SB18"), a local government is required to contact the appropriate tribes identified by the Native American Heritage Commission ("NAHC") each time it considers a proposal to adopt or amend the General Plan. If requested by any tribe, the local government must consult for the purpose of preserving or mitigating impacts to cultural resources. Fact in Support of Tribal Consultation Finding: The City received comments from the NAHC indicating that 12 tribal contacts should be provided notice regarding the proposed amendment. The tribal contacts were provided notice on March 15, 2023. California Government Code Section 65352.3 requires notification 90 days prior to Council action to allow tribal contacts to respond to the request 12-46 Resolution No. 2024- Page 15 of 29 to consult. The Project will not be heard by the City Council until after the 90-day period, which expired on June 13, 2023. The City participated in consultations with two tribes: the Gabrieleno Band of Mission Indians — Kizh Nation and the Juaneno Band of Mission Indians, Acjachemen Nation-Belardes. Based on consultation with the participating Native American Tribes, conditions of approval have been included to ensure that a proper monitoring program is in place during the Project's construction. Charter Section 423 Analysis Finding: Section 423 of the Charter of the City of Newport Beach ("Charter Section 423") requires voter approval of any major General Plan amendment. A major General Plan amendment is one that significantly increases allowed density or intensity by 40,000 square feet of non-residential floor area, increases traffic by more than 100 peak hour vehicle trips (AM/PM), or increases residential dwelling units by 100 units. These thresholds apply to the total of increases resulting from the amendment itself, plus 80 percent of the increases resulting from other amendments affecting the same neighborhood (defined as a Statistical Area as shown in the General Plan Land Use Element) and adopted within the preceding ten years. Council Policy A-18 (Guidelines for Implementing Charter Section 423) requires that proposed amendments to the General Plan be reviewed to determine if a vote of the Newport Beach electorate would be required. This policy includes a provision that all General Plan amendments be tracked as "Prior Amendments" for 10 years to determine if minor amendments in a single Statistical Area cumulatively exceed the thresholds indicated above. Fact in Support of Finding with Charter Section 423: The Property is within Statistical Area L4. There are no prior GPAs in Statistical Area L4 in the past 10 years, besides the currently proposed 64 additional dwelling units resulting in a net increase of 24 a.m. peak hour trips and 25 p.m. peak hour trips for the Residences at 1400 Bristol Street. The GPA would change the land use designation only and not result in an increase in development. The 52 base dwelling units are already included in the Mixed -Use Horizontal (MU-H2) development capacity of 2,200 units and no increase in allowed floor area is proposed. Additionally, there is no increase in AM or PM peak hour trips pursuant to the Institute of Transportation Engineers ("ITE") trip rates included as Exhibit B of Council Policy A-18. As a result, the GPA is not classified as a major amendment requiring a vote of the electorate should the City Council choose to approve the G PA. 12-4 7 Resolution No. 2024- Page 16 of 29 Section 4: In accordance with Section 20.52.080(F) (Site Development Reviews — Findings and Decision) of the NBMC, the following findings and facts in support of such findings are set forth as follows: Finding of Consistency with Section 20.52.080(F)(1): The proposed development is allowed within the subject zoning district. Fact in Support of Finding with Section 20.52.080(F)(1): The Property is located within Industrial Site 3 of Newport Place Planned Community (PC- 11). The Project includes a request to amend Property's land use designation and inclusion as a part of the Residential Overlay of the Newport Place Planned Community (PC-11). The Residential Overlay allows for residential development consistent with the requested Mixed -Use Horizontal 2 (MU-112) land use designation and subject to site development review. Finding of Consistency with Section 20.52.080(F)(2): The proposed development is in compliance with all of the following applicable criteria: Compliance with this section, the General Plan, this Zoning Code, any applicable specific plan, and other applicable criteria and policies related to the use or structure; ii. The efficient arrangement of structures on the site and the harmonious relationship of the structures to one another and to other adjacent developments; and whether the relationship is based on standards of good design; iii. The compatibility in terms of bulk, scale, and aesthetic treatment of structures on the site and adjacent developments and public areas; iv. The adequacy, efficiency, and safety of pedestrian and vehicular access, including drive aisles, driveways, and parking and loading spaces; v. The adequacy and efficiency of landscaping and open space areas and the use of water efficient plant and irrigation materials; and 12-48 Resolution No. 2024- Page 17 of 29 vi. The protection of significant views from public right(s)-of-way and compliance with NBMC Section 20.30.100 (Public View Protection). Facts in Support of Finding with Section 20.52.080(F)(2): 1. Refer to findings set forth in Section 3 above, that discuss the Project's consistency with the proposed Mixed -Use Horizontal 2 (MU-H2) General Plan land use designation. 2. The Project includes PCDP Amendment, which incorporated the zoning regulations for the Property. The amendment, which is a legislative act, would include the Property within the Residential Overlay of the Newport Place Planned Community (PC-11). The PCDP Amendment complies with the intent of the proposed Residential Overlay of the Newport Place Planned Community (PC-11) as follows: a. The Project allocates 15% of the base units (eight dwelling units) as affordable units. Of the eight units, six are restricted to very -low-income households and two are restricted to low-income households. b. Given the location of the Property in the Airport Area which includes a mixture of service uses, hotels, Airport and commercial support services, professional offices, and new residential developments that cumulatively contain the ingredients of a planned community, the proposed PC Amendment would not disrupt the existing uses within the Planned Community and would add to this diversity of uses, assisting the City in larger scale community planning and the provision of additional housing opportunities. C. The Property is located within 85 feet of the Residential Overlay. The property nearest to the site within the Residential Overlay is 1300 Bristol Street, across Spruce Street. The property at 1300 Bristol has been approved but not yet constructed as a residential apartment project. The Project would be consistent with the anticipated future development of 1300 Bristol and the proposed Residences at 1400 Bristol Project as well other adjacent properties within the Residential Overlay of the Newport Place Planned Community (PC-11). 12-49 Resolution No. 2024- Page 18 of 29 d. The Project would be subject to the appropriate site and project specific setbacks, density, and height limits for this urban location. All required parking is provided on -site. The Project complies with the development standards identified for the Residential Overlay, except as modified by the allowed development standard waivers identified in the Affordable Housing Implementation Plan. The Residential Overlay provides a density range for proposed projects and references the Section 20.32 (Density Bonus) of the NBMC that prescribes the maximum density bonus and incentives allowed. The Project includes a density bonus of 27.5%, where the PCDP Amendment references a maximum density bonus of 35%. Therefore, the proposed project is consistent with the intent of the density bonus assumptions in the Residential Overlay. e. The PCDP Amendment requires a site development review in accordance with Section 20.52.080 (Site Development Reviews) of the NBMC. The Project includes a site development review, and all required findings are addressed below. f. The PCDP Amendment requires the density for a residential development to be between 30 and 50 dwelling units per acre. The Project includes 52 base units, not including density bonus units. Since the Property is 1.71 acres in size, there is a base density of 30 dwelling units per acre. With density bonus, there is a total of 67 dwelling units, which results in 39 units per acre. Both the density with and without the density bonus units are consistent with the PCDP Amendment density requirement. g. The Property is located near existing office buildings within the Airport Area and is not negatively impacted by noise, dust, smoke, vibration, odor, toxic or noxious matter that may be generated by existing commercial or industrial uses nearby. h. Residential dwellings are to be permitted as replacement of existing nonresidential uses, and the number of peak hour trips generated by the Project is not to exceed the number of trips of the underlying permitted nonresidential use. The Property is developed with an existing one-story commercial office building totaling 22,956 square feet. A standardized conversion rate of 2.29 dwelling units per 1,000 square feet of commercial floor area, as provided by the City Traffic Engineer, is required. This results in a total of 52 dwelling units, which is the proposed based density of the 12-50 Resolution No. 2024- Page 19 of 29 Project. With a 27.50% density bonus or 15 dwelling units request, a total of 67 (52+15) dwelling units are proposed for the Project. The Property is fully developed and does not support any natural resources and all potential environmental impacts associated with the project are appropriately addressed through standard building permit procedures, conditions of approval, and the General Plan Policies identified in the 2006 General Plan Update PEIR (SCH No. 2006011119) and the City of Newport Beach Housing Element Update Initial Study/Negative Declaration. 3. The proposed six -story residential building would be approximately 81 feet in height inclusive of architectural elements and screened rooftop mechanical equipment. The Project is designed with a darker grey stucco finish on the podium and first floor levels and a white stucco finish for the floors above. The contrast in colors reduces the visual mass and bulk of the building and creates variations in the aesthetic design. Additionally, various units on each elevation are constructed with walkable decks with glass railings, adding additional aesthetic treatment to the building. The Project's building mass is compatible with the surrounding office and residential developments. 4. The Project includes a variety of enhanced amenities such as private residential balconies, a large pool deck, an outdoor seating area, a clubroom, and enclosed lounge. 5. The Project includes 146 onsite parking spaces located on a podium level parking structure which includes a subterranean gated parking structure underneath. The Project includes adequate onsite parking exceeding the minimum required residential standard pursuant to State Density Bonus Law. 6. The Property is generally flat and bordered by existing office buildings and developed roadways. The City's General Plan does not identify any scenic vistas or view points on or proximate to the Property. The nearest public view point to the Property identified in the City's General Plan is approximately 3,000 feet to the south at Bayview Park. The nearest coastal view designated portion of Jamboree Road is approximately 3,000 feet south of the site. Due to the distance and highly urbanized nature of the Project area, public coastal views along this view corridor would not be impacted by the Project. 12-51 Resolution No. 2024- Page 20 of 29 Finding of Consistency with Section 20.52.080(F)(3): The proposed development is not detrimental to the harmonious and orderly growth of the City, nor will it endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of person residing or working in the neighborhood of the proposed development. Facts in Support of Finding with Section 20.52.080(F)(3): 1. The Project has been designed to ensure that potential conflicts with surrounding uses are minimized to the extent possible to maintain a healthy environment for both surrounding businesses and residents by providing an architecturally pleasing project with articulation and building modulations to enhance the urban environment. 2. The proposed residential building has been designed to accommodate and provide safe access for emergency vehicles, delivery trucks, and refuse collections vehicles, as determined by the City Traffic Engineer. Refuse collection is accommodated via an on -site staging area along the private driveway to ensure safe maneuvering by refuse vehicles. Emergency vehicles will have access via Bristol Street and Spruce Street. 3. The Property is located approximately 0.57 mile east of the southernmost John Wayne Airport runway and is within the notification area of the AELUP for John Wayne Airport. However, the Project is below the maximum transitional imagery surface heights, and thus the Project is within the building height limits of the AELUP. The Property is located partially within the updated 65 dBA CNEL noise contours for John Wayne Airport and Safety Zone 6 (Traffic Pattern Zone) of the AELUP, where the likelihood of an accident is low. Consistent with the Residential Overlay in the Newport Place Planned Community (PC-11), the Project shall be required to comply with conditions specified in Section 20.30.080(F) (Noise - Airport Environs Land Use Plan) of the NBMC, including provisions of noise study, sound attenuation design features, and notice to all future residents of potential annoyances or inconveniences associated with residing in proximity to airport operations. 4. The Project will comply with all Building, Public Works, Fire Codes, City ordinances, and all conditions of approval. 12-52 Resolution No. 2024- Page 21 of 29 Section 5: In accordance with Section 19.12.070(A) (Required Findings for Action on Tentative Maps) of the NBMC, the following finding and facts in support of such findings are set forth as follows: Finding of Consistency with Section 19.12.070(A)(1): That the proposed map and the design or improvements of the subdivision are consistent with the General Plan and any applicable specific plan, and with applicable provisions of the Subdivision Map Act and this Subdivision Code. Facts in Support of Finding with Section 19.12.070(A)(1): 1. The Project is consistent with the proposed Mixed -Use Horizontal (MU-H2) General Plan designation of the Property, which provides for a horizontal intermixing of uses that include multi -family residential development. 2. The Public Works Department has reviewed the proposed vesting tentative tract map and determined it is consistent with Title 19 (Subdivisions) of the NBMC and applicable requirements of the Subdivision Map Act. 3. Conditions of approval have been included to ensure compliance with Title 19 (Subdivisions) of the NBMC. Finding of Consistency with Section 19.12.070(A)(2): That the site is physically suitable for the type and density of development. Facts in Support of Finding with Section 19.12.070(A)(2): 1. The Property is entirely developed and does not support any environmental resources. 2. The Property is located in the John Wayne Airport area. The Property is currently improved with a 22,956-square-foot office building. Given its location, this site is ideal for the development of a residential project as it is identified as a housing inventory site of the City's adopted and certified 6th Cycle Housing Element. 12-53 Resolution No. 2024- Page 22 of 29 Finding of Consistency with Section 19.12.070(A)(3): That the design of the subdivision or the proposed improvements will not cause substantial environmental damage nor substantially and avoidably injure fish or wildlife or their habitat. However, notwithstanding the foregoing, the decision -making body may nevertheless approve such a subdivision if an environmental impact report was prepared for the project and a finding was made pursuant to Section 21081 of the California Environmental Quality Act that specific economic, social, or other considerations make infeasible the mitigation measures or project alternatives identified in the environmental impact report. Facts in Support of Finding with Section 19.12.070(A)(3): An Addendum to the PEIR and the City of Newport Beach Housing Element Update Initial Study/Negative Declaration has been prepared and concludes that no significant environmental impacts will result with the Project development of the Property in accordance with the VTM. Finding of Consistency with Section 19.12.070(A)(4): That the design of the subdivision or the type of improvements is not likely to cause serious public health problems. Facts in Support of Finding with Section 19.12.070(A)(4): 1. The VTM is required for the subdivision of parcels for the separate sale of 67 condominium units. All construction for the Project will comply with all Building, Public Works, and Fire Codes, which are in place to prevent serious public health problems. Public improvements will be required of the Applicant per Section 19.28.010 (General Improvements Requirements) of the NBMC and Section 66411 of the Subdivision Map Act. Compliance with all ordinances of the City and all Conditions of Approval for the Project will ensure that the Project will not cause any serious health problems. 2. All mitigation measures will be implemented as outlined in the Addendum to the PEIR and the City of Newport Beach Housing Element Update Initial Study/Negative Declaration to ensure the protection of the public health. 3. No evidence is known to exist that would indicate that the separate sale of condominiums will generate any serious public health problems. 12-54 Resolution No. 2024- Page 23 of 29 Finding of Consistency with Section 19.12.070(A)(5): That the design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the decision -making body may approve a map if it finds that alternate easements, for access or for use, will be provided and that these easements will be substantially equivalent to easements previously acquired by the public. This finding shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to the City Council to determine that the public at large has acquired easements for access through or use of property within a subdivision. Facts in Support of Finding with Section 19.12.070(A)(5): 1. The design of the Project will not conflict with any easements acquired by the public at large for access through or use of property within the Property. 2. No other public easements for access through or use of the Property have been retained for use by the public at large. Finding of Consistency with Section 19.12.070(A)(6): That, subject to the detailed provisions of Section 66474.4 of the Subdivision Map Act, if the land is subject to a contract entered into pursuant to the California Land Conservation Act of 1965 (Williamson Act), the resulting parcels following a subdivision of the land would not be too small to sustain their agricultural use or the subdivision will result in residential development incidental to the commercial agricultural use of the land. Fact in Support of Finding with Section 19.12.070(A)(6): The Property is not subject to the Williamson Act since the Property is not considered an agricultural preserve and is less than 100 acres. Finding of Consistency with Section 19.12.070(A)(7): That, in the case of a "land project" as defined in Section 11000.5 of the California Business and Professions Code: (a) there is an adopted specific plan for the area to be included within the land project, and (b) the decision -making body finds that the proposed land project is consistent with the specific plan for the area. 12-55 Resolution No. 2024- Page 24 of 29 Facts in Support of Finding with Section 19.12.070(A)(7): 1. The Property is not a "land project" as defined in Section 11000.5 of the California Business and Professions Code. 2. The Property is not located within a specific plan area. Finding of Consistency with Section 19.12.070(A)(8): That solar access and passive heating and cooling design requirements have been satisfied in accordance with Sections 66473.1 and 66475.3 of the Subdivision Map Act. Fact in Support of Finding with Section 19.12.070(A)(8): The VTM and improvements are subject to the California Building Code set forth in Title 24 of the CCR that requires new construction to meet minimum heating and cooling efficiency standards depending on location and climate. The Newport Beach Building Division enforces the California Building Code compliance through the plan check and inspection process. Finding of Consistency with Section 19.12.070(A)(9): That the subdivision is consistent with Section 66412.3 of the Subdivision Map Act and Section 65584 of the California Government Code regarding the City's share of the regional housing need and that it balances the housing needs of the region against the public service needs of the City's residents and available fiscal and environmental resources. Facts in Support of Finding with Section 19.12.070(A)(9): 1. The VTM is consistent with Section 66412.3 of the Subdivision Map Act and Section 65584 of the California Government Code regarding the City's share of the regional housing need. The Project does not involve the elimination of residential rooms and therefore will not affect the City's ability to meet its share of housing needs. On the contrary, the Property is identified as a housing opportunity site by the adopted and certified 6th Cycle Housing Element and proposes includes 67 dwelling units, eight of which are considered affordable housing for families that qualify as low income. 12-56 Resolution No. 2024- Page 25 of 29 2. Public services are available to serve the Project and the Addendum to the PEIR and the City of Newport Beach Housing Element Update Initial Study/Negative Declaration prepared for the Project indicates that the Project's potential environmental impacts are properly mitigated. Findinq of Consistency with Section 19.12.070(A)(10): That the discharge of waste from the proposed subdivision into the existing sewer system will not result in a violation of existing requirements prescribed by the Regional Water Quality Control Board. Facts in Support of Finding with Section 19.12.070(A)(10): 1. Waste discharge into the existing sewer system will be not violate Regional Water Quality Control Board requirements. 2. Sewer connections have been conditioned to be installed per City Standards, the applicable provisions of Chapter 14.24 (Sewer Connection, Permits) of the NBMC, and the latest version of the Uniform Plumbing Code. Finding of Consistency with Section 19.12.070(A)(11): For subdivisions lying partly or wholly within the Coastal Zone, that the subdivision conforms with the certified Local Coastal Program and, where applicable, with public access and recreation policies of Chapter Three of the Coastal Act. Fact in Support of Finding with Section 19.12.070(A)(11): The Property is not located in the coastal zone and is not subject to a coastal development permit. Section 6: The AHIP, attached hereto as Exhibit "D," is consistent with the intent to implement affordable housing goals within the City pursuant to State Density Bonus Law and Chapter 20.32 (Density Bonus) of the NBMC for the following reasons: 1. Consistent with the requested 27.5% density bonus, eight units of the Project's base units 52 would be set aside as affordable units. Of the eight units, six are restricted to very -low-income households and two are restricted to low-income households. Low-income households are defined as households 80% or less of the area median income, while very -low-income households are defined as 12-57 Resolution No. 2024- Page 26 of 29 households 50% or less of the area median income, both adjusted for family size. Since the Project is for -sale condominiums, the affordable units are subject to an equity sharing agreement without expiration, unless sold to a nonprofit housing corporation. 2. State Density Bonus Law and Chapter 20.32 (Density Bonus) of the NBMC provide for an increase in the number of units above General Plan and zoning limits for projects that include a minimum of 15%of the base units affordable to low and very low-income households. The Project's inclusion of 8 affordable units (6 very low- income units and 2 low-income), which is 15%of the base unit count of 52 units, makes the Project eligible for 15 density bonus units. The Project total is 67 units. 3. In addition to the 15 density bonus units and parking reductions, the Project is entitled to receive up to two incentives or concessions under State Density Bonus Law and Section 20.32.070 (Allowed Incentives or Concessions) of the NBMC that would result in identifiable, financially sufficient, and actual cost reductions. The Project includes the following concessions the first of which the Project is entitled to and the second, which is at the City Council's discretion: a. Affordable Unit Mix: Section 20.32.110 (Design and Distribution of Affordable Units) of the NBMC requires affordable units in a density bonus project reflect the same range of unit types in the residential development as a whole. In this case, the Project provides all eight affordable units as two -bedroom units, whereas, the overall unit mix includes 27 two -bedroom units and 40 three -bedroom units. Granting an incentive from the unit -mix will result in identifiable, financially sufficient, and actual cost reductions for the Project. b. Partial Payment of In -Lieu Park Fee: General Plan Land Use Element Policy 6.15.13 requires residential development to provide a public park equal to 8% of the gross land area of the development, or a minimum one-half acre, whichever is greater, to be provided. Since the 1.71-acre Property is too small to feasibly accommodate the physical dedication of the park, the Policy requires an in -lieu fee paid to the City for the acquisition and improvement of other properties as parklands to serve the Airport Area. The Applicant is requesting to use a second incentive to waive a portion of the fee to provide cost reductions and make the Project financially feasible, which is within the City Council's discretion to approve. 12-58 Resolution No. 2024- Page 27 of 29 4. The Project is entitled to receive waivers or reductions of development standards under State Density Bonus Law, Section 20.32.080 (Waivers or Reductions of Development Standards) of the NBMC, and recent caselaw if the development standard would physically prevent the Project from being built at the permitted density. In this case, the Project is entitled to waivers of the following development standards: a. Park dedication requirements (two waivers): General Plan Land Use Policy LU 6.15.13 requires a public park equal to eight percent of the gross land area of the development, or a minimum one-half acre, whichever is greater, be provided. The Applicant proposes to waive the one-half acre requirement and a partial park in -lieu fee. ii. Section 19.52.040 (Parkland Standard) of the NBMC requires the City's park dedication standard to be five acres per thousand population due to the proposed vesting tentative tract for residential condominium purposes. Per the latest census data, the average persons per household is 2.2 persons, which results in 147.4 persons and a 0.74-acre park dedication requirement. Regardless of any requirements, the Property is 1.71 acres in size which is too small to feasibly accommodate a park of minimum one-half acre in size. b. Street setbacks. The Newport Place Planned Community (PC-11) requires street setbacks of 30 feet from property lines. In this case, 30-foot setbacks along Quail Street and Spruce Street would substantially decrease the development of the footprint of the Project. The Project is designed with a 11-foot setback from Spruce Street and a 10-foot setback to Quail Street. C. Building height. The Newport Place Planned Community (PC-11) Residential Overlay limits building height to 55 feet from established grade. In this case, a higher building height is necessary to accommodate 67 residential units. The Project is designed with a height of approximately 81 feet from established grade. 12-59 Resolution No. 2024- Page 28 of 29 Section 7: Environmental Impact Report Addendum No. 8 was prepared for the Project in compliance CEQA set forth in California Public Resources Code Section 2100 et seq.; CEQA's implementing regulations set forth in the CEQA Guidelines and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act) to ensure that the Project will not result in new or increased environmental impacts. On the basis of the entire environmental record, the Project will not result in any new significant impacts that were not previously analyzed in the PEIR for the General Plan 2006 Update (SCH No. 2006011119) and the City of Newport Beach Housing Element Initial Study/Negative Declaration. The potential impacts associated with this Project would either be the same or less than those described in the PEIR. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the PEIR, nor has any new information regarding potential for new or more severe significant environmental impacts been identified. The City Council finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger. Section 8: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 12-60 Resolution No. 2024- Page 29 of 29 Section 9: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 10: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 9th day of April, 2024. Will O'Neill Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY TTORNEY'S OFFICE ar n C. Harp City Attorney Attachment(s): Exhibit "A" — General Plan Amendment Exhibit "B" — Site Development Review Exhibit °C" — Tentative Tract Map No. 19621 Exhibit "D" — Affordable Housing Implementation Agreement Exhibit "E" — Conditions of Approval 12-61 Exhibit "A" General Plan Amendment 12-62 CO-G °�• Q MU-H2 I�jjVI .B s, �� U —H; ^h hA hA� h 'L� 1 r�ryl Co- , ti 1 titi `4. M14 h A ry pags ry 0 �OFeel 0P QS1�� °o PA2023-0040 General Plan Amendment NH 1401 Quail St City of Newport Beach GIs Division November 22, 2023 PA2023-DOJO GP Amendmem—d MU-H2 A5W KEW PORT PlAOE OR MU-H2 00 L� d S� o i BOWSPRIT OR 8 Exhibit "B" Site Development Review 12-64 R H A .��EF��[ii: [Ew. ".4.4 Ar ,1 I I � I I I QUAIL ST PODIUM NEWPORT MAO 1. CALIFORNIA ROBERT HIDEY ARCHITECTS URBAN ARENA I ARCHITECT LA' I;) ,, APE DNtT MIX PLAN TYPE PROGRAM UNIT 532E COUNT TOTAL (5F) MIX PLAN 1 7 BO! 2 BA 1.304 5F 1 10,432 12% PLAN 2 2 no/2.5 BA 1.704 SF 2 3.- 3% PLAN 2X 28012.5 BA 1, 6935F B 15,144 12% Pm 2 BD+OFFICE/ 2.5 BA 1,963 SF 9 17,661 13% PLAN 4 1 SD/ 3.5 BA 2,097 SF 10 20,970 15% PLAN 5 3 "Of 3.5 BA 2.214 5F 2 4,411 3% PLAN SX 3 0013.5 BA 2,327 SF B 18,61d 12% PLAN 6 3 BE/ 3.5 BA 2.257 SF A 18.056 12% PLAN 7 3 BD/ 3.5 BA 2.320 SF 5 ]1,600 7% PLAN A Be DI 3.5 BA 2,4D5 SF 4 9,620 6% PLAN 9 3 BO+FF ICEf 3.5 BA 2,9M SF 1 7,963 1% PLAN 9X 3 BD.OFF IC£( 3.5 BA 3.303 5F 2 3,303 1% PLAN 10 38D/3.5 BA 3,174 SF 1 3, 174 1% TOTAL 67 13 9,546 100% NOTE: 8 UNITS (PLAN 1) ARE AFFORDABLE SITE AREA: 1.71 ACRES RESIDENTIAL DENSITY: 39 DU/ACRE BUILDING FOOTPRINT {GROSS SF): 44,161 SF BUILDING AREA, INC. PARKING {GROSS SF): 261,790 SF INCLUDING STAIRS& ELEVATORS ABOVE BASEMENT BUILDING AREA, INC. PARKING (GROSS SF): 257,447 SF EXCLUDING STAIRS & ELEVATORS ABOVE BASEMENT PROPOSED SITE PLAN ADAMS STREETERI v CIVIL I N 'F R A C O R P ._ .'.n nr3azoxl 12-65 Exhibit "C" Tentative Tract Map No. 19261 12-66 PARCEL 2 PIM`YS, 44 / 38 r— Lm co l i4 d U � � L dA fl'I IL 4 LOT 1 PARCEL l PMS 44 / 33 TENTATNE TRACT MAP NO.19261 FOR COnDOMNW PUMOM CRY OF rEWPM BEACH COUNTY OF ORANGE, KATE OF CALFOFM i 1 1 t Ix nrwr� r� SPRUCE AVENUE -- — - — - - — - — - — - - — - — - —- — nrvo/ LE4@R IT I 11 NOYM _ .mna.rnr ars rr�,n M i Q<Y ar 1u.n �.n R.sv�.0 1 �� m`m�n.i s mtlnsmu,.r.o is,m LEGAL DEDCHEMM m m�ir .0 rr�.mem�me.�w min' t Q .eav r�.e�etim eor.®r.r I Q �msum aor r.wrw.. ra 7 Q �raa mo.r --_--.-..—_I 1 la I 4 I. AEQWrqp MWE: i E 7 I I � •i i I I � i am STREET _- 12-67 Exhibit "D" Affordable Housing Implementation Agreement 12-68 1401 QUAIL STREET, NEWPORT BEACH, CA 92660 AFFORDABLE HOUSING IMPLEMENTATION PLAN AND DENSITY BONUS APPLICATION SUBMITTED NOVEMBER 28, 2023 12-69 Project Description & Affordability Level The developer, I ntracorp Homes ("Developer") is proposing the 1401 Quail Street residential development (described herein as "1401 Quail Street") on a 1.71 net acre site located in the Newport Place area. The site is located west of the intersection of Quail Street and Spruce Avenue. The project site is governed by the Newport Place Specific Plan, which has a 30 du / acre minimum in the Planned Community Residential Overlay. The site is currently not under the Residential Overlay, but the application includes an amendment to the Planned Community text to include it. The Residential Overlay requires a minimum of 15% of the base units be set aside as affordable to lower -income households. Lower -income households are defined as those making less than 80% of the area median income, as adjusted for family size by the United States Department of Housing and Urban Development. The Developer is proposing a for -sale development consisting of 67 residential condominium units. Of the 67 units, 52 are Base Units and 15 are Density Bonus units. To comply with the 15% affordability requirement of the Residential Overlay, 6 units will be set aside for Very Low -Income households and 2 units will be set aside for Low Income households (15 percent of 52 Base Units). Eligibility for Density Bonus The 1401 Quail Street development will provide 6 units affordable to Very Low -Income households, 10% of the Base Units as outlined in Table 1. As a result, the project is eligible for a 32.5% density bonus pursuant to the provisions of Government Code Section 65915. Homes Prices for the income -restricted units will be computed in accordance with Health and Safety Code Sec. 50053, as required by Government Code Section 65915(c)(2). Density Bonus Computation and Term of Affordability The density bonus computation for the project per Government Code Section 65915 is shown in Table 1: Table 1 Project Area (acres) 1.71 Allowable Density (du/ac) 30 Allowable Residential Units Before Density Bonus (Base Units) 52 Very Low Income Units Set Aside (10% of base) 6 Eligible Density Bonus 32.5% 17 Total Allowable Units with Density Bonus 69 Total Units Proposed 67 The Developer intends to build the project as a for -sale residential condominium community. The income - restricted units will have affordability restrictions on the sale and conveyance of the units under an equity sharing agreement, per Government Code Section 65915(c)(2). 12-70 Reduction in Parking The 1401 Quail Street development meets the criteria of subdivision (b) of Government Code Sec. 65915 and Section 20.32.030 of the City's Zoning Code by providing more than ten percent (10%) of the total units of a housing development (excluding any units permitted by the density bonus awarded pursuant to that section) for Low Income households. Government Code Section 65915(p) and Section 20.32,060 of the City's Zoning Code provides the following: (1) Upon the request of the developer, no city, county, or city and county shall require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of subdivision (b), that exceeds the following ratios: a. Zero to one bedrooms: one onsite parking space. b. Two to three bedrooms: one and one-half onsite parking spaces. (2) If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. Table 2 is a summary of Government Code Sec. 65915 parking requirements vs. spaces to be provided: Table 2 The Developer requests that parking requirements be calculated in accordance with Government Code Sec. 65915(p). Development Incentive Request Pursuant to Government Code Section 65915(d)(1) and Section 20.32.070 of the City's Zoning Code, the Developer is entitled to two (2) concessions or incentive as a result of providing at least ten percent (10%) of the units as affordable for Very Low Income households. In addition, Government Code Section 65915(e)(1) also entitles developers to waivers or modifications of development standards that if applied, would physically preclude development of housing with the provided density bonus. The Developer requests the following development incentives: 1) Park In -lieu Fee Payment. General Plan Land Use Policy LU 6.15.13 requires the dedication and improvement of a neighborhood park. However, this requirement may be waived where it can be demonstrated that the development site is too small to feasibly accommodate the park or inappropriately located to serve the needs of nearby residents. Policy LU6.15.13 requires the payment of an in -lieu fee to the City for the acquisition and improvement of other properties as 12-71 parklands to serve the airport area if the neighborhood park dedication is waived. In this case, the 1.71-acre Project site is too small to feasibly accommodate the park and the Developer requests a reduction of the in -lieu fee as a non -mandatory concession. This reduction of an in -lieu fee is an actual cost reduction that makes the development of the affordable housing units financially feasible. 2) Affordable Unit Mix. Section 20.32.110 of the City's Municipal Code provides that "Affordable units shall reflect the range of numbers of bedrooms provided in the residential development project as a whole_" As illustrated in the table below, the Project provides a higher percentage of affordable 2 Bedroom units compared to the market rate units provided. Granting this incentive will result in identifiable, financially sufficient, and actual cost reductions by reducing the higher housing cost subsidy associated with 2- and 3-bedroom units and thereby affording additional revenue to support the feasibility of providing affordable housing units. Developer requests that the 8 income -restricted units be provided utilizing the following unit mixes: Table 3 NUMBER TOTAL AFFORDABLE UNIT TYPE OF UNITS UNITS Bedroom2 Bedroom � As required by Government Code Sec. 65915(d)(1)(A), these incentives will result in identifiable and actual cost reductions to provide for the affordable housing payments to be set in accordance with Government Code Sec. 65915(c)(2). Development Standard Waivers Section 20.32.080 of the City's Municipal Code provides that "In addition to requesting an incentive or concession, an applicant for a density bonus may also submit a proposal to the City to waive or reduce an unlimited number of development standards that would otherwise preclude or inhibit construction of the housing development at the densities or with the incentives permitted by this chapter. When an applicant makes a request for a waiver, the review authority shall grant the request unless any of the following findings are made: 1) The waiver or reduction of development standards would have a specific adverse impact upon public health or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. 2) The waiver or reduction of development standards would have an adverse impact on any real property listed in the California Register of Historical Resources. 3) The waiver or reduction of development standards would be contrary to State or Federal law." 12-72 The Developer proposes the following development standard waivers: 1) Street setback requirements. The Newport Place Planned Community requires street setbacks of 30 feet from property lines. In this case, 30-foot setbacks along Quail Street and Spruce Street would substantially decrease the development of the footprint of this project. The Project is designed with approximately 10-foot setbacks to Quail Street and 11-foot setbacks to Spruce Street. The reduced street setbacks are necessary to provide sufficient area for the building as well as a 26-foot wide, 2-way driveway at the entrance to the proposed community that also serves as a required fire lane. The reduced setbacks will be sufficiently deep to provide a significant landscape buffer. 2) Building height requirement. The Newport Place Planned Community (PC-11) limits residential building height to 55 feet from established grade. In this case, a higher building height is necessary to accommodate 67 residential units. The Project is designed with a height of 86.4 feet from established grade. 3) General Plan Park dedication requirement. General Plan Land Use Policy LU 6.15.13 requires a public park equal to eight percent of the gross land area of the development, or a minimum 0.5- acres, whichever is greater, be provided. In this case, the project is required to provide a 0.50- acre public park. The 1.71-acre Project site is too small to feasibility accommodate the required 0.50-acre park and if it were dedicated, the resulting smaller site could not physically accommodate the proposed affordable housing development. 4) Municipal Code Park dedication requirement. Sections 19.52.040 and 19.52.050 of the City's municipal code requires physical land to be dedicated to parks for projects containing more than 50 units. The requirement is 5 acres per 1,000 persons residing in a subdivision. In this case, using 2.2 persons per household, the Project would be required to dedicated 0.74 acres for park. The 1.71-acre Project site is too small to feasibility accommodate the required 0.74-acre park and if it were dedicated, the resulting smaller site could not physically accommodate the proposed affordable housing development. Income Limits Very Low Income Households are defined as households whose gross income does not exceed 50% of area median income, adjusted for household size while Low Income households shall not exceed 80% of area median income. Table 4 below shows the maximum income limits for 2023 as determined by the U.S. Department of Housing and Urban Development and the California Department of Housing and Community Development ("HCD") for Low Income households with household sizes appropriate for the 1401 Quail Street development: Table 4 AFFORDABLE•COMPUTATION Orange County Median Income (3-Person Household) $115,000 Very Low Income (50% AMI) $57,500 Low Income (80% AMI) $92,000 _ 12-73 Housing Payment Limits for Affordable Homes The 8 income -restricted units shall be purchase at an affordable cost calculated in accordance with the provisions of Section 50053 of the Health and Safety Code. That section requires that the housing payment for a two -bedroom unit assumes a three -person household for housing payment calculation purposes. For Very Low Income households in owner -occupied housing, Section 50052.5 of the Health and Safety Code limits affordable housing payment to 30% times 50% of area median income, as calculated in Table 5 below. For Low Income households in owner -occupied housing, affordable housing payment is limited to 30% times 70% of area median income. The values calculated are then adjusted by a utility allowance as determined annually by the County of Orange Housing & Community Services Department. As of October 1, 2022, the reduction for the utility allowance is $238.00 per month [$2,856 per year] for a two - bedroom unit. The utility allowance utilized assumes gas cooking, space heating, and water heating, as well as air conditioning, water and sewer, and trash fees which will be paid by the homeowner. The maximum housing payment levels before property taxes, FICA, maintenance, and insurance for 2023 are shown in Table 5 below: Table 5 VLI $57,500 $17,250 $2,856 $7,800 $780 $5,814 Low $80,500 $24,150 $2,856 $7,800 $1,597 $11,897 The Developer will enter into an affordable housing agreement, in recordable form, with the City prior to obtaining the first building permit for any residential unit. That agreement will ensure that the maximum housing payment for the income -restricted units will be calculated using the methodologies as utilized in Table 5. The housing payment rates shown will be updated prior to the commencement of sales activities and on an ongoing basis to reflect then current income limits, utility allowances, and any changes in applicable regulations and statutes. The sales value for the affordable units will be calculated in the quarter that they will be available for sale. The current estimated sales price for the affordable units is shown in Tables 6A and 6B. 12-74 Table 6A A. Income Allocated to Housing Area Median Income $115,000 50% Area Median Income 57,500 Income Allocated to Housing (30%) 17,250 B. Recurring Costs Annual Utilities Allowance $2,856 HOA, Maintenance, & Insurance 7,800 Property Taxes (1.11% of Sales Price) 780 C. Income Available for Mortgage $5,814 D. Affordable Sales Price Supportable 30-Year Mortgage at 7.9% Interest Rate $66,657 Home Buyer Down Payment (5% of Affordable Sales Price) 3,333 Affordable Sales Price $69,990 Table 613 A. Income Allocated to Housing Area Median Income $115,000 70% Area Median Income 80,500 Income Allocated to Housing (30%) 24,150 S. Recurring Costs Annual Utilities Allowance $2,856 HOA, Maintenance, & Insurance 7,800 Property Taxes (1.11% of Sales Price) 1,597 C. Income Available for Mortgage $11,897 D. Affordable Sales Price Supportable 30-Year Mortgage at 7.9% Interest Rate $136,408 Home Buyer Down Payment (5% of Affordable Sales Price) 6,820 Affordable Sales Price $143,228 12-75 Equity Sharing Agreement Per Section 20.32.140 of the City's Municipal Code, if a Very Low or Low Income unit is initially occupied by a very low or low-income household and offered at an affordable housing cost, the unit will be subject to an equity sharing agreement. In lieu of an equity sharing agreement, the affordable units could per sold to a nonprofit housing corporation pursuant to six requirements in the above section. Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the seller's proportionate share of appreciation and the City of Newport Beach shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within five years for any purposes that promote affordable home ownership. The Equity Sharing Agreement shall adhere to the following requirements: • The City's initial subsidy shall be equal to the fair market value of the home at the time of the initial sale, minus the initial sale price, plus the amount of any down payment or mortgage assistance. If upon resale, the market value is lower than the initial market value, then the value at the time of resale shall be used as the initial market value. • The City of Newport Beach's proportionate share of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the home at the time of the initial sale: and • The initial subsidy shall include any incentives granted by the City of Newport Beach and shall be equal to the monetary equivalent of the incentives. Requested City of Newport Beach Assistance Financial Assistance The Developer is requesting a reduction of the park in -lieu fee payment. 12-76 Exhibit "E" Conditions of Approval (Project -specific conditions are in italics) Planning Division The development shall be in substantial conformance with the approved site plan, floor plans, landscape plans, and building elevations stamped and dated with the date of this approval (except as modified by applicable conditions of approval). Minor changes to the approved development may be approved by the Community Development Director, pursuant to Newport Beach Municipal Code Section 20.54.070 (Changes to an Approved Project) if the intent of the original approval is not affected. 2. The Project is subject to compliance with all applicable submittals approved by the City of Newport Beach (City) and all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 3. Entitlements granted under PA2023-0040 shall expire unless exercised within 24 months from the date of approval as specified in Section 20.54.060 (Time Limits and Extensions) of the Newport Beach Municipal Code (NBMC), unless an extension is otherwise granted by the City for a period of time provided in the Development Agreement pursuant to the provisions of California Government Code Section 66452.06(a). 4. The proposed residential development shall consist of 67 for -sale condominiums, inclusive of 52 base units and 15 density bonus units, consistent with the approved Affordable Housing Implementation Plan (AH1P). 5. A minimum of 8 condominium units shall be made affordable to low and very low- income households, consistent with the approved Residences at 1401 Quail Street AHIP dated November 28, 2023. 6. Prior to the issuance of a building ,permit, an affordable housing agreement shall be executed in a recordable form as required by the City Attorney's Office. 7. On -site recreational amenities: private balconies, a clubroom, a pool deck, seating area, and lounge as illustrated on the approved plans shall be provided and maintained for the duration of the Project. The exact mix of amenities may be modified from the original approved plans subject to the approval by the Community Development Director. The total floor area or open space area dedicated to on -site recreational amenities shall not be reduced. 8. Maximum building height of the residential structure shall not exceed 81 feet, inclusive of architectural features and mechanical equipment. 12-77 9. The residential parking garage shall have the following features: a. A safe, secure and well lighted and signed pedestrian paths for all users. b. Adequate and uniform lighting throughout each parking level. c. Panic alarms and two-way communication systems in prominent locations on each parking level. 10. Prior to the issuance of a building permit, an acoustical analysis report, prepared by an acoustical engineer, shall be submitted to the Planning Division describing the acoustical design features of the structure that will satisfy the exterior and interior noise standards. The Project shall be attenuated in compliance with the report. 11. The residential structure shall be attenuated to provide an interior noise level of 45 dBA CNEL or less. Use of walls, berms, interior noise insulation, double paned windows, advanced insulation systems, or other noise mitigation measures, as deemed appropriate by the City shall be incorporated in the design of the new residential structure to provide adequate noise attenuation. 12. The design of the residential structure shall provide adequate noise attenuation between adjacent units (common floor/ceiling) in accordance with the California Building Code (CBC). 13. Advanced air filtration systems for buildings shall be considered to promote cleaner air without the opening of windows. 14. Prior to the issuance of a building permit, the Applicant shall submit to the Community Development Department a final copy of FAA Determination of No Hazard to Air Navigation reflective of the proposed building height. 15. The Applicant shall comply with all applicable provisions of NBMC Chapter 15.38, Fair Share Traffic Contribution Ordinance, and Chapter 15.42, Major Thoroughfare and Bridge Fee Program. Prior to the issuance of a building permit, Fair Share and Transportation Corridor Agency fees shall be paid for the Project. 16. Prior to the issuance of a building permit, the Applicant shall pay applicable school fees for the Project. 17. Prior to the issuance of a building permit, the Applicant shall pay applicable property development tax as required pursuant to NBMC Chapter 3.12 (Property Development Tax) for the Project. 12-78 18. Prior to the issuance of a building permit, the Applicant shall pay the Project's fair share of public safety fee, as determined by the Community Development Director, to fund the cost of staffing, services and equipment as necessary for fire -related public safety purposes. 19. The property management company shall distribute a written disclosure statement prior to sale of any residential unit. The disclosure statement shall indicate that the occupants will be living in an urban type of environment and that the noise, odor, and outdoor activity levels may be higher than a typical suburban residential area. In addition, potential annoyances or inconveniences associated with residing in proximity to airport operations such as noise, vibration, and odor may occur. The disclosure statement shall include a written description of the potential impacts to residents of both the existing environment and potential impacts based upon the allowed uses in the zoning district and proximity to airport. Each and every purchaser shall sign the statement acknowledging that they have received, read, and understand the disclosure statement. The Applicant shall covenant to include within all deeds, leases or contracts conveying any interest in the Project: (1) the disclosure and notification requirement stated herein; (2) an acknowledgment by all grantees or lessees that the property is located within an urban type of environment and that the noise, odor, and outdoor activity levels may be higher than a typical suburban residential area; and (3) acknowledgment that the covenant is binding for the benefit and in favor of the City of Newport Beach. 20. Disturbance to or removal of potential bird nesting habitat shall be prohibited during the migratory bird nesting season (February 1 through August 31) unless a migratory bird nesting survey is completed. if demolition and/or vegetation removal is planned to occur during the migratory bird nesting season (February 1 through August 31), then a migratory bird nesting survey shall be completed in accordance with the following requirements: a. Within three days prior to initiating demolition, tree removals and/or vegetation clearing, a nesting bird survey shall be conducted by a qualified biologist within the suitable habitat to be removed and within a 250-foot radius. b. If the survey reveals no active nesting, the proposed action may proceed. c. If the survey identities the presence of active sensitive bird nests, then the nests shall not be disturbed unless the qualified biologist verifies through non-invasive methods that either (i) the adult birds have not begun egg - laying and incubation; or (ii) the juveniles from the occupied nests are capable of independent survival. d. If the biologist is not able to verify any of the conditions from sub -item "b," above, then no disturbance shall occur within a buffer zone specified by the 12-79 qualified biologist for each nest or nesting site. The buffer zone shall be species -appropriate (no less than 100-foot radius around the nest for non - raptors and no more than a 500-foot radius around the nest for raptors, or as otherwise determined by the qualified biologist) and shall be sufficient to protect the nest from direct and indirect impacts from construction activities. The nests and buffer zones shall be field checked approximately weekly by a qualified biological monitor. The approved buffer zone shall be marked in the field with construction fencing, within which no vegetation clearing or ground disturbance shall commence until the qualified biologist with City concurrence verify that the nests are no longer occupied and/or juvenile birds can survive independently from the nests. 21. Any substantial modification to the approved Site Development Review plans, as determined by the Community Development Director, shall require an amendment to this Site Development Review application or the processing of a new application. 22. A copy of the Resolution, including conditions of approval Exhibit "F" shall be incorporated into the Building Division and field sets of plans prior to issuance of the building permits. 23. Prior to the issuance of a building permit, Applicant shall submit to the Planning Division an additional copy of the approved architectural plans for inclusion in the Site Development Review file. The plans shall be identical to those approved by all City departments for building permit issuance. The approved copy shall include architectural sheets only and shall be reduced in size to 11 inches by 17 inches. The plans shall accurately depict the elements approved by this Site Development Review and shall highlight the approved elements such that they are readily discernible from other elements of the plans. 24. Prior to the issuance of a building permit, Applicant shall submit a detailed landscape and irrigation plan prepared by a licensed landscape architect for the Project. These plans shall incorporate drought tolerant plantings and water efficient irrigation practices, and the plans shall be approved by the Planning Division. 25. All landscape materials and irrigation systems shall be maintained in accordance with the approved landscape plan. All landscaped areas shall be maintained in a healthy and growing condition and shall receive regular pruning, fertilizing, mowing and trimming. All landscaped areas shall be kept free of weeds and debris. All irrigation systems shall be kept operable, including adjustments, replacements, repairs, and cleaning as part of regular maintenance. 26. The site shall not be excessively illuminated based on the luminance recommendations of the Illuminating Engineering Society of North America, or, if in the opinion of the Director of Community Development, the illumination creates an unacceptable negative impact on surrounding land uses or environmental 12-80 resources. The Director may order the dimming of light sources or other remediation upon finding that the site is excessively illuminated. 27. Prior to the issuance of a building permit, the Applicant shall prepare photometric study for the Project in conjunction with a final lighting plan for approval by the Planning Division. All outdoor lighting fixtures shall be designed, shielded, aimed, located, and maintained to shield adjacent properties and to not produce glare onto adjacent properties or roadways. Parking lot light fixtures and light fixtures on buildings shall be full cut-off fixtures. 28. Prior to the issuance of Final Certificate of Occupancy, the Applicant shall schedule an evening inspection by the Code and Water Quality Enforcement Division to confirm control of light and glare specified in conditions of approval. 29. 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. 30. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 (Community Noise Control) 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 TOOAM and 10:OOPM Between the hours of 10:OOPM and TOOAM Location Interior Exterior Interior Exterior Residential Property 45dBA 55dBA 40dBA 50dBA Residential Property located within 100 feet of a commercial property 45dBA 6OdBA 45dBA 50dBA Mixed Use Property 45dBA 60dBA 45dBA 50dBA Commercial Property N/A 65dBA N/A 60dBA 31. 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 either the current business owner, property owner or the leasing agent. 32. 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 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 Sundays or Holidays. 12-81 33. Refuse collection shall comply with the Waste Management Plan included in the approved plans. The Applicant's property management company shall contract with a franchised hauler on the City list of authorized companies. 34. All trash shall be stored within the building or within dumpsters stored in the trash enclosure (three walls and a self -latching gate) or otherwise screened from view of neighboring properties, except when placed for pick-up by refuse collection agencies. 35. The Applicant shall ensure that the trash dumpsters and/or receptacles are maintained to control odors. This may include the provision of either fully self- contained dumpsters or periodic steam cleaning of the dumpsters, if deemed necessary by the Planning Division. Cleaning and maintenance of trash dumpsters shall be done in compliance with the provisions of NBMC Title 14 (Water and Sewers), including all future amendments (including Water Quality related requirements). 36. Prior to issuance of building permits, the City of Newport Beach Police Department shall review development plans for the incorporation of defensible space concepts to reduce demands on police services. Public safety planning recommendations shall be incorporated into the project plans. The Applicant shall prepare a list of project features and design components that demonstrate responsiveness to defensible space design concepts. The Police Department shall review and approve all defensible space design features incorporated into the project prior to permit issuance. 37. A qualified monitor, one from each consulting tribe (the Juaneno Band of Mission Indians - Acjachemen Nation and the Gabrieleno Band of Mission Indians - Kizh Nation), shall be retained and compensated as Native American Monitors for the project site prior to the commencement of any ground -disturbing activity to the completion of ground disturbing activities to monitor grading and excavation activities. A rotation schedule between the two tribes shall be established with the applicant. Voluntary monitoring by each consulting tribe is permitted on days that the tribe(s) is not scheduled to monitor. 38. The rotating monitors, one from each consulting tribe, shall be retained prior to the commencement of any "ground -disturbing activity" for the subject project at all project locations (i.e., both on -site and any off -site locations that are included in the project description/definition and/or required in connection with the project, including as public improvement work undertaken by the applicant). "Ground - disturbing activity" shall include, but is not limited to, any demolition that includes subterranean impacts, potholing, auguring, boring, grading, excavation, drilling, and trenching. 12-82 39. A copy of the executed monitoring agreement shall be submitted to the City prior to the commencement of any ground -disturbing activity, or the issuance of any permit necessary to commence a ground -disturbing activity. 40. Both monitors shall complete daily monitoring logs that will provide descriptions of the relevant ground -disturbing activities, the type of construction activities performed, locations of ground -disturbing activities, soil types, cultural -related materials, and any other facts, conditions, materials, or discoveries of significance to the Tribe. Monitor logs will identify and describe any discovered TCRs, including but not limited to, Native American cultural and historical artifacts, remains, places of significance, etc., (collectively, tribal cultural resources, or "TCR'), as well as any discovered Native American (ancestral) human remains and burial goods. Copies of monitor logs shall be shared between the two monitors and provided to the project applicant/lead agency upon written request to the monitors. 41. On -site tribal monitoring shall conclude upon the latter of the following (1) written confirmation to the consulting tribes from a designated point of contact for the project applicant/lead agency that all ground -disturbing activities and phases that may involve ground -disturbing activities on the project site or in connection with the project are complete; or (2) a determination and written notification by the consulting tribes to the project applicant/lead agency that no future, planned construction activity and/or development/construction phase at the project site possesses the potential to impact TCRs of the consulting tribes. 42. Upon discovery of any TCRs, all construction activities in the immediate vicinity of the discovery shall cease (i. e., within the surrounding 50 feet) and shall not resume until the discovered TCR has been fully assessed by the monitor and/or archaeologist. The monitors will recover and retain all discovered TCRs in the form and/or manner the tribes deem appropriate, in the tribes' sole discretion in coordination with the applicant, and for any purpose the tribes deem appropriate, including for educational, cultural and/or historic purposes. 43. Native American human remains are defined in PRC 5097.98 (d)(1) as an inhumation or cremation, and in any state of decomposition or skeletal completeness. Funerary objects, called associated grave goods in Public Resources Code Section 5097.98, are also to be treated according to this statute. 44. If Native American human remains and/or grave goods are discovered or recognized on the project site, then Public Resource Code 5097.9 as well as Health and Safety Code Section 7050.5 shall be followed. 45. Human remains and grave/burial goods shall be treated alike per California Public Resources Code section 5097.98(d)(1) and (2). 12-83 46. Preservation in place (i.e., avoidance) is the preferred manner of treatment for discovered human remains and/or burial goods. 47. Any discovery of human remains/burial goods shall be kept confidential to prevent further disturbance. 48. 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 Residences at 1401 Quail Street including, but not limited to, a General Plan Amendment, Planned Community Development Plan Amendment, Site Development Review, Vesting Tentative Tract Map, Affordable Housing Implementation Plan, Development Agreement and Addendum to the 2006 General Plan Update Program Environmental Impact Report (PA2023-0040). 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. Fire Department 49. Prior to the issuance of any occupancy permits (temporary or final), all fire and life safety systems, and the emergency responder radio system shall be inspected and approved by the Fire Marshal. 50. Prior to the building permit issuance, a fire master plan shall be submitted and approved by the Fire Marshal. 51. Prior to any foundation permit issuance for the garage basement area, a temporary fire department access way, as approved by the Fire Department, shall be provided until the permanent fire access way is installed. Required fire and life safety systems, including the fire sprinkler system, shall be operational in the garage basement areas used for parking by the construction crews and for storage of building materials and construction equipment. 52. One elevator shall be gurney sized and equipped as a medical emergency elevator as CBC Section 3002. 12-84 53. Emergency responder radio coverage shall be required to comply with NBFD Guideline D.05 "Public Safety Radio Coverage" and CFC Section 510. 54. Emergency power and Standby Power System shall be required as per CFC Section 604.2.14. 55. An automatic sprinkler system shall be installed in accordance with CFC Section 903.2 amendment shall be provided throughout all buildings. 56. A standpipe system shall be required and installed as per CFC Section 905.3.1. 57. Fire Alarm system shall be provided as per CFC Section 907.2.9. Building Division 58. The Applicant is required to obtain all applicable permits from the City's Building Division and Fire Department. The construction plans must comply with the most recent, City -adopted version of the California Building Code. The construction plans must meet all applicable State Disabilities Access requirements. Approval from the Orange County Health Department is required prior to the issuance of a building permit. 59. The Applicant shall employ the following best available control measures (BACMs) to reduce construction -related air quality impacts: Dust Control • Water all active construction areas at least twice daily. • Cover all haul trucks or maintain at least two feet of freeboard. • Pave or apply water four times daily to all unpaved parking or staging areas. • Sweep or wash any site access points within two hours of any visible dirt deposits on any public roadway. • Cover or water twice daily any on -site stockpiles of debris, dirt or other dusty material. • Suspend all operations on any unpaved surface if winds exceed 25 mph. 12-85 Emissions Require 90-day low-NOx tune-ups for off road equipment. Limit allowable idling to 30 minutes for trucks and heavy equipment. Off -Site Impacts • Encourage carpooling for construction workers. • Limit lane closures to off-peak travel periods. • Park construction vehicles off traveled roadways. • Wet down or cover dirt hauled off -site. • Sweep access points daily. • Encourage receipt of materials during non -peak traffic hours. • Sandbag construction sites for erosion control. Fill Placement The number and type of equipment for dirt pushing will be limited on any day to ensure that SCAQMD significance thresholds are not exceeded. Maintain and utilize a continuous water application system during earth placement and compaction to achieve a 10 percent soil moisture content in the top six-inch surface layer, subject to review/discretion of the geotechnical engineer. 60. Prior to the issuance of a -grading permit, a Storm Water Pollution Prevention Plan (SWPPP) and Notice of Intent (NOI) to comply with the General Permit for Construction Activities shall be prepared, submitted to the State Water Quality Control Board for approval and made part of the construction program. The Project Applicant will provide the City with a copy of the NOI and their application check as proof of filing with the State Water Quality Control Board. This plan will detail measures and practices that will be in effect during construction to minimize the project's impact on water quality. 61. Prior to the issuance of a grading permit, the Applicant shall prepare and submit a Water Quality Management Plan (WQMP) for the proposed project, subject to the approval of the Building Division and Code and Water Quality Enforcement Division. The WQMP shall provide appropriate Best Management Practices (BMPs) to ensure that no violations of water quality standards or waste discharge requirements occur. 12-86 62. A list of "good housekeeping" practices will be incorporated into the long-term post - construction operation of the site to minimize the likelihood that pollutants will be used, stored or spilled on the site that could impair water quality. These may include frequent parking area vacuum truck sweeping, removal of wastes or spills, limited use of harmful fertilizers or pesticides, and the diversion of storm water away from potential sources of pollution (e.g., trash receptacles and parking structures). The Stage 2 WQMP shall list and describe all structural and non- structural BMPs. In addition, the WQMP must also identify the entity responsible for the long-term inspection, maintenance, and funding for all structural (and if applicable Treatment Control) BMPs. 63. Prior to the building plan check submittal, the Applicant shall submit the Project for Building Code Preliminary Review. 64. The residential dwelling units and their common use areas shall comply with Housing Accessibility per Chapter 11A. 65. The nonresidential portion of the development shall comply with the public accommodation requirements per Chapter 91 B. Public Works Department 66. A Tract Map shall be recorded prior to the sale of any residential units. The map shall be prepared on the California coordinate system (NAD83). Prior to recordation of the Map, the surveyor/engineer preparing the Map shall submit to the County Surveyor and the City of Newport Beach a digital -graphic file of said map in a manner described in Sections 7-9-330 and 7-9-337 of the Orange County Subdivision Code and Orange County Subdivision Manual, Sub Article 18. The Map to be submitted to the City of Newport Beach shall comply with the City's CADD standards. Scanned images will not be accepted. 67. Prior to the recordation of the tract map, the surveyor/engineer preparing the map shall tie the boundary of the map into the Horizontal Control System established by the County Surveyor in a manner described in Sections 7-9-330 and 7-9-337 pf the Orange County Subdivision Code and Orange County Subdivision Manual, Sub Article 18. Monuments (one -inch iron pipe with tag) shall be set On Each Lot Corner unless otherwise approved by the Subdivision Engineer. Monuments shall be protected in place if installed prior to completion of construction project. 68. Prior to the recordation of the Tract Map, a Subdivision Agreement shall be obtained and approved by the City Council consistent with the Subdivision Code Section 19.36.010. 12-87 69. Prior to Final Map approval, the applicant shall provide a Faithful Performance Bond and Labor and Materials Bond, each for 100%of the estimated improvement costs for the improvements in the public right of way, as prepared by a Registered Civil Engineer and approved by the Public Works Director, for each of the following, but not limited to, public and private improvements, street improvements, monumentation, sidewalks, striping, signage, street lights, sewer systems, water systems, storm drain systems, water quality management systems, erosion control, landscaping and irrigation within the public right of way, common open spaces areas accessible by the public, fire access and off -site improvements required as part of the project. 70. Warranty Bond for a minimum of 10%of the engineers cost estimate (final percentage to be determined by the Public Works Director) to be released 1-year after the improvements have been accepted. 71. All improvements shall be constructed as required by Ordinance and the Public Works Department. 72. An encroachment permit shall be required for all work activities within the public right-of-way. 73. The final Construction Management Plan (CMP) shall be reviewed and approved by the Community Development Director and the City Traffic Engineer prior to building permit issuance. 74. A Parking Management Plan (PMP) shall be reviewed and approved by the Community Development Director and City Traffic Engineer prior to building permit issuance. The PMP shall include information regarding gate operation, move -in and move -out, ride -share area, guest parking areas and residential parking areas. 75. Parking layout and ramp slopes shall comply with the City Parking Lot Standard 805. Dead-end drive aisle in public areas and/or unassigned parking areas shall provide a dedicated turn around space and minimum 5-foot drive aisle extension. 76. The applicant shall reconstruct all existing broken and/or otherwise damaged curb, gutter and sidewalk along the Spruce Street and Quail Street frontages per City Standards. 77. All deliveries shall be accommodated on -site and prohibited from parking or stopping within the public right of way. Only ride share vehicles shall be permitted to utilize the pull-out area located on Spruce Street. 78. The proposed driveway shall be constructed per City Standard 161. The radius for the Bristol Street North driveway shall be minimum 20-foot radius and the radius for the Spruce Street driveway shall be 15-foot minimum. 79. All on -site fire hydrants shall be privately owned and maintained. 80. All landscaping and walls along the Spruce Street and Quail Street frontages shall comply with the City's line of sight standard 105. Sight distance at all intersections shall comply with City of Newport Beach standards. 81. Final design of the water and sewer services is subject to further review by the Public Works Department during plan check. 82. Prior to the issuance of a Certificate of Occupancy, the Applicant shall coordinate with the City to complete the required off -site improvements identified in the Sewer Capacity Study dated October 20, 2023, to the satisfaction of the Public Works and Utilities Directors. The Applicant shall be responsible for their fair share cost of the improvements as determined by the City, which may include the payment and construction of the entire improvement unless the City assumes the cost of the improvement. 12-89 Attachment C Ordinance No. 2024-10 12-90 ORDINANCE NO. 2024-10 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A PLANNED COMMUNITY DEVELOPMENT PLAN AMENDMENT FOR THE RESIDENCES AT 1401 QUAIL STREET LOCATED AT 1401 QUAIL STREET (PA2023- 0040) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, an application was filed by Intracorp Homes ("Applicant'), with respect to the property located at 1401 Quail Street and legally described as Parcel 1 of Resubdivision No. 341 ("Property"); WHEREAS, the Applicant is requesting approvals to demolish an existing office building and develop 67 for -sale condominium units, including a 146-space parking structure ("Project'), which requires the following approvals: • General Plan Amendment ("GPA") — A request to amend the General Plan Land Use Designation of the Property from General Commercial Office (CO-G) to Mixed -Use Horizontal (MU-H2); • Planned Community Development Plan Amendment ("PCDP Amendment') — An amendment to the Newport Place Planned Community (PC-11) Development Plan to include the Property within the Residential Overlay; • Major Site Development Review ("SDR") - A site development review in accordance with the Newport Place Planned Community (PC-11) and Section 20.52.080 (Site Development Reviews) of the Newport Beach Municipal Code ("NBMC") to construct the Project; • Tentative Vesting Tract Map ("VTM") — A Vesting Tentative Tract Map No. 19261 pursuant to Title 19 (Subdivisions) of the NBMC for 67 condominium dwelling units; 12-91 Ordinance No. 2024- Page 2 of 8 • Affordable Housing Implementation Plan ("AHIP") — A plan specifying how the Project would meet the City's affordable housing requirements, in exchange for a request of 27.5% increase in density including a request for four development standard waivers related to park land dedication, building setbacks, and building height along with two development concessions related to the mix of affordable units and a partial payment of the park in -lieu fees pursuant to Chapter 20.32 (Density Bonus) of the NBMC and Government Code Section 65915 et seq. ("State Density Bonus Law"); • Development Agreement ("DA") — A development agreement, between the Applicant and the City, pursuant to Section 15.45.020 (Development Agreement Required) of the NBMC, which would provide the Applicant with vested right to develop the Project for a term of ten years and provide negotiated public benefits to the City; and • Addendum No. 8 to the 2006 General Plan Update Program Environmental Impact Reports and the 2008-2014 City of Newport Beach Housing Element Update and Initial Study/Negative Declaration ("Addendum No. 8") — An addendum which addresses reasonably foreseeable environmental impacts resulting from the Project; WHEREAS, the Property is designated General Commercial Office (CO-G) by the General Plan Land Use Element and located within the Newport Place Planned Community (PC-11) Zoning District in the Industrial Site 3A sub -area; WHEREAS, the Property is not located within the coastal zone; therefore, amending the Local Coastal Program and obtaining a coastal development permit are not required; WHEREAS, a public hearing was held by the Planning Commission on December 21, 2023 in the Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and Chapter 15.45 (Development Agreements), Chapter 19.20 (Vesting Tentative Map), Chapter 20.56 (Planned Community District Procedures), and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; 12-92 Ordinance No. 2024- Page 3 of 8 WHEREAS, at the hearing, the Planning Commission adopted Resolution No. PC2023-047 by a majority vote (6 ayes, 0 nays, 1 absent) recommending the City Council approve the Project; WHEREAS, California Public Utilities Code ("CPUC") Section 21676(b) requires the City to refer the Project to the Orange County Airport Land Use Commission ("ALUC") to review for consistency with the 2008 John Wayne Airport Environs Land Use Plan ("AELUP"); WHEREAS, on January 18, 2024, the ALUC determined the Project is inconsistent with the AELUP; WHEREAS, pursuant to Sections 21670 and 21676 of CPUC, the City Council may, after a public hearing, propose to overrule the ALUC with a two-thirds vote, if it makes specific findings that the Project is consistent with the purpose of Section 21670 of the CPUC to protect the public health, safety, and welfare by ensuring the orderly expansion of airports and the adoption of land use measures that minimize the public's exposure to excessive noise and safety hazards within areas around public airports to the extent that these areas are not already devoted to incompatible uses; WHEREAS, a public hearing was held by the City Council on February 13, 2024, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place, and purpose of the hearing was given in accordance with CPUC Code Section 21676(b) and the Ralph M. Brown Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; WHEREAS, at the conclusion of the hearing, the City Council adopted Resolution No. 2024-10 by unanimous vote (7 ayes, 0 nays) to notify the ALUC and State Department of Transportation Aeronautics Program ("Aeronautics Program") of the City's intent to override ALUC's inconsistency finding; WHEREAS, notice of the City's intent to override the ALUC inconsistency determination, along with Resolution No. 2024-10 was sent via certified mail and emailed to the ALUC and the Aeronautics Program on February 14, 2024; WHEREAS, the City received timely comments in response to the notice of the City's intent to override the ALUC inconsistency determination from the ALUC, and the Aeronautics Program in accordance with CPUC Section 21676; and 12-93 Ordinance No. 2024- Page 4 of 8 WHEREAS, a public hearing was held by the City Council on April 9, 2024, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act, Chapter 15.45 (Development Agreements), Chapter 19.20 (Vesting Tentative Maps), Chapter 20.56 (Planned Community District Procedures), and Chapter 20.62 (Public Hearings) of the NBMC, and CPUC Section 21676(b). Evidence, both written and oral, was presented to, and considered by, the City Council at this meeting. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council has considered the recommendation of the Planning Commission and determined that modifications to the Project made by the City Council, if any, are not major changes that require referral back to the Planning Commission for consideration and recommendation. Section 2: The PCDP Amendment to the Newport Place Planned Community (PC-1 1) is a legislative act. Neither the Newport Place Planned Community (PC-1 1), Chapters 20.56 (Planned Community District Procedures) and 20.66 (Amendments) of the NBMC, nor Section 65000 et seq. of the California Government Code set forth any required findings for approval of such amendments. Notwithstanding the foregoing, the PCDP Amendment complies with Part III (Residential Overlay) of the Newport Place Planned Community (PC-1 1) based on the following findings: 1. The Project allocates 15% of the base units (eight dwelling units) as affordable units. Of the eight units, six are restricted to very -low-income households and two are restricted to low-income households. 2. Given the location of the Property in the Airport Area which includes a mixture of service uses, hotels, John Wayne Airport and commercial support services, professional offices, and new residential developments that cumulatively contain the ingredients of a planned community, the PCDP Amendment would not disrupt the existing uses within the Newport Place Planned Community (PC-11)and would add to this diversity of uses, assisting the City in larger scale community planning and the provision of additional housing opportunities. 3. The Property is located within 85 feet of the Residential Overlay set forth in the Newport Place Planned Community (PC-1 1). The property nearest to the site 12-94 Ordinance No. 2024- Page 5 of 8 within the Residential Overlay is 1300 Bristol Street, across Spruce Street. The property at 1300 Bristol has been approved but not yet constructed as a residential apartment project. The Project would be consistent with the anticipated future development of 1300 Bristol and the proposed Residences at 1400 Bristol Project as well other adjacent properties within the Residential Overlay of Newport Place Planned Community (PC-11). 4. The Project would be subject to the appropriate site and project specific setbacks, density, and height limits for this urban location. All required parking is provided on -site. The Project complies with the development standards identified for the Residential Overlay, except as modified by the allowed development standard waivers identified in the Affordable Housing Implementation Plan. The Residential Overlay provides a density range for proposed projects and references the Section 20.32 (Density Bonus) of the NBMC that prescribes the maximum density bonus and incentives allowed. The Project includes a density bonus of 27.5%, where the PCDP Amendment references a maximum density bonus of 35%. Therefore, the Project is consistent with the intent of the density bonus assumptions in the Residential Overlay. 5. The Newport Place Planned Community (PC-11) requires an SDR in accordance with Section 20.52.080 (Site Development Reviews) of the NBMC. The Project includes an SDR, and all required findings are addressed in a separate resolution. 6. The PCDP Amendment requires the density for a residential development to be between 30 and 50 dwelling units per acre. The Project includes 52 base units, not including density bonus units. Since the Property is 1.71 acres in size, there is a base density of 30 dwelling units per acre. With density bonus, there is a total of 67 dwelling units, which results in 39 units per acre. Both the density with and without the density bonus units are consistent with the PCDP Amendment density requirement. 7. The Property is located near existing office buildings within the Airport Area and is not negatively impacted by noise, dust, smoke, vibration, odor, toxic or noxious matter that may be generated by existing commercial or industrial uses nearby. 8. Residential dwellings are permitted as replacement of existing nonresidential uses, and the number of peak hour trips generated by the Project is not to exceed the number of trips of the underlying permitted nonresidential use. The 12-95 Ordinance No. 2024- Page 6 of 8 Property is developed with an existing one-story commercial office building totaling 22,956 square feet. A standardized conversion rate of 2.29 dwelling units per 1,000 square feet of commercial floor area, as provided by the City Traffic Engineer, is required. This results in a total of 52 dwelling units, which is the proposed based density of the Project. With a 27.50% density bonus or 15 dwelling units request, a total of 67 (52+15) dwelling units are proposed for the Project. 9. The Property is fully developed and does not support any natural resources and all potential environmental impacts associated with the Project are appropriately addressed through standard building permit procedures, conditions of approval, and the General Plan Policies identified in Addendum No. 8. Section 3: The City Council hereby approves the Newport Place Planned Community (PC-11) Development Plan Amendment, as set forth in Exhibit 'A" which is attached hereto and incorporated herein by reference and finds that the PCDP Amendment complies with the purpose set forth in Section 20.56.010 (Purpose) of the NBMC, with all other provisions of the existing Planned Community District Regulations and exhibits remaining unchanged and in full force and effect. Section 4: Environmental Impact Report Addendum No. 8 was prepared for the Project in compliance with the California Environmental Quality Act ("CEQA") set forth in California Public Resources Code Section 2100 et seq.; CEQA's implementing regulations set forth in CCR Title 14, Division 6 Chapter 3 ("CEQA Guidelines") and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act) to ensure that the Project will not result in new or increased environmental impacts. On the basis of the entire environmental record, the Project will not result in any new significant impacts that were not previously analyzed in the PEIR for the General Plan 2006 Update (SCH No. 2006011119) and the City of Newport Beach Housing Element Initial Study/Negative Declaration. The potential impacts associated with this Project would either be the same or less than those described in the PEIR and the City of Newport Beach Housing Element Initial Study/Negative Declaration. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in the PEIR or the City of Newport Beach Housing Element Initial Study/Negative Declaration, nor has any new information regarding potential for new or more severe significant environmental impacts been identified. 12-96 Ordinance No. 2024- Page 7 of 8 The City Council finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger. Section 5: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 6: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 12-97 Ordinance No. 2024- Page 8 of 8 Section 7: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty (30) calendar days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 91h day of April, 2024, and adopted on the 23rd day of April, 2024, by the following vote, to -wit: AYES: NAYS: ABSENT: WILL O'NEILL, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE ) C AAlk,ON C. HARP, CITY ATTORNEY Attachment: Exhibit "A" — Newport Place Planned Community (PC-11) Development Plan Amendment 12-98 Exhibit "A" Newport Place Planned Community (PC-11) Development Plan Amendment 12-99 e 'ke t4E-WPORT PLACE OR %L® �� 'pT 50,NF,PRq OR M1�hry ry�iti 'Y41 2lC STO` Legend Residential Overlay 10, Newport Place Planned Community 1 Feet PA2023-0040 :,z: NH PC-1 1 Newport Plate Amendment "E W PO Ni I E A I H IZ �y City of Newport Beach 1401 Quail S 1+ GIS division �( November 22, 2023 PA2021-OG40 PC Amr d—,,.m.rI 12-100 Attachment D Ordinance No. 2024-11 12-101 ORDINANCE NO. 2024-11 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT FOR THE RESIDENCES AT 1401 QUAIL STREET PROJECT LOCATED AT 1401 QUAIL STREET (PA2023-0040) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, an application was filed by Intracorp Homes ("Applicant"), with respect to the property located at 1401 Quail Street and legally described as Parcel 1 of Resubdivision No. 341 ("Property"); WHEREAS, the Applicant is requesting approvals to demolish an existing office building and develop 67 for -sale condominium units, including a 146-space parking structure ("Project"), which requires the following approvals: • General Plan Amendment ("GPA") — A request to amend the General Plan Land Use Designation of the Property from General Commercial Office (CO-G) to Mixed -Use Horizontal (MU-H2); • Planned Community Development Plan Amendment ("PCDP Amendment') — An amendment to the Newport Place Planned Community (PC-11) Development Plan to include the Property within the Residential Overlay; • Major Site Development Review ("SDR") - A site development review in accordance with the Newport Place Planned Community (PC-11) and Section 20.52.080 (Site Development Reviews) of the Newport Beach Municipal Code ("NBMC") to construct the Project; • Tentative Vesting Tract Map ("VTM") — A Vesting Tentative Tract Map No. 19261 pursuant to Title 19 (Subdivisions) of the NBMC for 67 condominium dwelling units; 12-102 Ordinance No. 2024- Page 2 of 7 • Affordable Housing Implementation Plan ("AHIP") - A plan specifying how the Project would meet the City's affordable housing requirements, in exchange for a request of 27.5% increase in density including four development standard waivers related to park land dedication, building setbacks, and building height along with two development concessions related to the mix of affordable units and a partial payment of the park in -lieu fees pursuant to Chapter 20.32 (Density Bonus) of the NBMC and Government Code Section 65915 et seq. ("State Density Bonus Law"); • Development Agreement ("DA") — A development agreement, between the Applicant and the City, pursuant to Section 15.45.020 (Development Agreement Required) of the NBMC, which would provide the Applicant with vested right to develop the Project for a term of ten years and provide negotiated public benefits to the City; and • Addendum No. 8 to the 2006 General Plan Update Program Environmental Impact Reports and the 2008-2014 City of Newport Beach Housing Element Update and Initial Study/Negative Declaration ("Addendum No. 8") — An addendum which addresses reasonably foreseeable environmental impacts resulting from the Project; WHEREAS, the Property is designated General Commercial Office (CO-G) by the General Plan Land Use Element and located within the Newport Place Planned Community (PC-11) Zoning District in the Industrial Site 3A sub -area; WHEREAS, the Property is not located within the coastal zone; therefore, amending the Local Coastal Program and obtaining a coastal development permit are not required; WHEREAS, a public hearing was held by the Planning Commission on December 21, 2023 in the Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and Chapter 15.45 (Development Agreements), Chapter 19.20 (Vesting Tentative Map), Chapter 20.56 (Planned Community District Procedures), and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; 12-103 Ordinance No. 2024- Page 3 of 7 WHEREAS, at the hearing, the Planning Commission adopted Resolution No. PC2023-047 by a majority vote (6 ayes, 0 nays, 1 absent) recommending the City Council approve the Project; WHEREAS, California Public Utilities Code ("CPUC") Section 21676(b) requires the City to refer the Project to the Orange County Airport Land Use Commission ("ALUC") to review for consistency with the 2008 John Wayne Airport Environs Land Use Plan ("AELUP"); WHEREAS, on January 18, 2024, the ALUC determined the Project is inconsistent with the AELUP; WHEREAS, pursuant to Sections 21670 and 21676 of CPUC, the City Council may, after a public hearing, propose to overrule the ALUC with a two-thirds vote, if it makes specific findings that the Project is consistent with the purpose of Section 21670 of the CPUC to protect the public health, safety, and welfare by ensuring the orderly expansion of airports and the adoption of land use measures that minimize the public's exposure to excessive noise and safety hazards within areas around public airports to the extent that these areas are not already devoted to incompatible uses; WHEREAS, a public hearing was held by the City Council on February 13, 2024, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place, and purpose of the hearing was given in accordance with CPUC Code Section 21676(b) and the Ralph M. Brown Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; WHEREAS, at the conclusion of the hearing, the City Council adopted Resolution No. 2024-10 by unanimous vote (7 ayes, 0 nays) to notify the ALUC and State Department of Transportation Aeronautics Program ("Aeronautics Program") of the City's intent to override ALUC's inconsistency finding; WHEREAS, a notice of the City's intent to override the ALUC inconsistency determination, along with Resolution No. 2024-10 was sent via certified mail and emailed to the ALUC and the Aeronautics Program on February 14, 2024; WHEREAS, the City received timely comments in response to the notice of the City's intent to override the ALUC inconsistency determination from the ALUC and the Aeronautics Program in accordance with CPUC Section 21676; 12-104 Ordinance No. 2024- Page 4 of 7 WHEREAS, a public hearing was held by the City Council on April 9, 2024, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act, Chapter 15.45 (Development Agreements), Chapter 19.20 (Vesting Tentative Maps), Chapter 20.56 (Planned Community District Procedures), and Chapter 20.62 (Public Hearings) of the NBMC, and CPUC Section 21676(b). Evidence, both written and oral, was presented to, and considered by, the City Council at this meeting; WHEREAS, a development agreement is required by Chapter 15.45 (Development Agreements) of the NBMC in that the Project would add more than 50 dwelling units within Statistical Area L4 (Airport Area); WHEREAS, Section 15.45.040 (Contents) of the NBMC requires inclusion of the permitted use of the property, density or intensity of use, maximum height and size of proposed building in a development agreement; WHEREAS, the DA satisfies the mandatory elements of Section 15.45.040 (Contents) of the NBMC in providing for the development of 67 dwelling units, inclusive of the requested density bonus; WHEREAS, the DA further satisfies other mandatory elements of Section 15.45.040 (Contents) of the NBMC in that the definition of the Newport Place Planned Community (PC-11) Development Plan incorporates all land use approvals required for the Project; WHEREAS, the DA also provides other non -mandatory elements, including a term of 10 years for completion of the Project along with providing public benefits that are appropriate to support conveying the vested development rights consistent with the City of Newport Beach General Plan, NBMC, and Government Code Sections 65864 et seq.; and WHEREAS, the public benefits include the payment of a $141,600 public safety fee, a $513,300 park in -lieu fee, and $1,628,400 public benefit fee, for a total of $2,283,300 to be used by the City Council as specified in the DA. 12-105 Ordinance No. 2024- Page 5 of 7 NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council has considered the recommendation of the Planning Commission and determined that modifications to the Project made by the City Council, if any, are not major changes that require referral back to commission for consideration and recommendation. Section 2: The City Council finds the Development Agreement is consistent with provisions of California Government Code Sections 65864 to 65869.5 and Chapter 15.45 (Development Agreements) of the NBMC that authorize binding agreements that: (i) encourage investment in, and commitment to, comprehensive planning and public facilities financing; (ii) strengthen the public planning process and encourage private implementation of the local general plan; (iii) provide certainty in the approval of projects to avoid waste of time and resources; and (iv) reduce the economic costs of development by providing assurance to the property owners that they may proceed with projects consistent with existing policies, rules, and regulations. Additionally, the City Council finds the Development Agreement is entered into pursuant to, and constitutes a present exercise of, the City's police power and is in the best interest of the health, safety, and general welfare of the City, residents, and the public. Section 3: The Development Agreement which is attached hereto as Exhibit "A," and incorporated herein by reference between the City of Newport Beach and the Applicant to accommodate the development of Project and to enter the agreement for a term of ten years, is hereby approved. 12-106 Ordinance No. 2024- Page 6 of 7 Section 4: Environmental Impact Report Addendum No. 8 was prepared for the Project in compliance with the California Environmental Quality Act ("CEQA") set forth in California Public Resources Code Section 2100 of seq.; CEQA's implementing regulations set forth in CCR Title 14, Division 6 Chapter 3 ("CEQA Guidelines") and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act) to ensure that the Project will not result in new or increased environmental impacts. On the basis of the entire environmental record, the Project will not result in any new significant impacts that were not previously analyzed in the PEIR for the General Plan 2006 Update (SCH No. 2006011119) and the 2008-2014 City of Newport Beach Housing Element Initial Study/Negative Declaration. The potential impacts associated with this Project would either be the same or less than those described in the PEIR. In Addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the PEIR, nor has any new information regarding potential for new or more severe significant environmental impacts been identified. The City Council finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger. Section 5: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 6: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 12-107 Ordinance No. 2024- Page 7 of 7 Section 7: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty (30) calendar days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 91h day of April, 2024, and adopted on the 23,d day of April, 2024, by the following vote, to -wit: AYES: NAYS: ABSENT: WILL O'NEILL, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE A ON C. HARP, CITY ATTORNEY Attachment: Exhibit "A" — Development Agreement 12-108 Exhibit "A" Development Agreement 12-109 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Attn: City Clerk (Space Above This Line Is for Recorder's Use Only) This Agreement is recorded at the request and for the benefit of the City of Newport Beach and is exempt from the payment of a recording fee pursuant to Government Code §§ 6103 and 27383. DEVELOPMENT AGREEMENT between CITY OF NEWPORT BEACH and INTRACORP SOCAL-1, LLC CONCERNING "THE RESIDENCES AT 1401 QUAIL STREET" 12-110.1 DEVELOPMENT AGREEMENT (Pursuant to California Government Code Sections 65864-65869.5) This DEVELOPMENT AGREEMENT (the "Agreement") is dated for reference purposes as of the 23rd day of April, 2024 (the "Agreement Date"), and is being entered into by and between the City of Newport Beach, a California municipal corporation and charter city, organized and existing under and by virtue of its Charter and the Constitution, and the laws of the State of California, ("City"), and Intracorp Socal-1, LLC, a Delaware limited liability company ("Property Owner'). City and Property Owner are sometimes collectively referred to in this Agreement as the "Parties" and individually as a "Party." RECITALS A. Property Owner has entered into a Purchase and Sale Agreement and Escrow Instructions, dated April 13, 2022, as amended (collectively, "Purchase Agreement"), to purchase that certain real property located in the City of Newport Beach, County of Orange, State of California commonly referred to as 1401 Quail Street and more particularly described in the legal description attached as Exhibit "A" and depicted on the site map attached hereto as Exhibit `B" ("Property") and has submitted an application to the City for the Development Plan, defined in Section 1 (Definitions) below to develop the Property. The Property consists of approximately 1.71 acres and is a part of the Newport Place Planned Community shown on the City's Zoning Map. B. To encourage investment in, and commitment to, comprehensive planning and public facilities financing, strengthen the public planning process and encourage private implementation of the local general plan, provide certainty in the approval of projects in order to avoid waste of time and resources, and reduce the economic costs of development by providing assurance to property owners that they may proceed with projects consistent with existing land use policies, rules, and regulations, the California Legislature adopted California Government Code Sections 65864-65869.5 (the "Development Agreement Statute") authorizing cities and counties to enter into development agreements with persons or entities having a legal or equitable interest in real property located within their jurisdiction. C. On March 13, 2007, the City Council adopted Ordinance No. 2007-6, entitled "Ordinance Amending Chapter 15.45 of City of Newport Beach Municipal Code Regarding Development Agreements" (the "Development Agreement Ordinance"). This Agreement is consistent with the Development Agreement Ordinance. D. The Parties wish to enter into Agreement to demolish an existing office building and construct 67 condominium units (including affordable units) atop of 146-space parking structure. E. As detailed in Section 3 of this Agreement, Property Owner has agreed to provide the following significant public benefits as consideration for this Agreement: a public benefit fee in the amount of One Million Six Hundred Twenty -Eight Thousand Four Hundred Dollars and 00/100 ($1,628,400.00), a park in -lieu fee of Five Hundred Thirteen Thousand Three Hundred Dollars and 00/100 ($513,300.00) and a public safety fee in the amount of One Hundred Forty - One Thousand Six Hundred Dollars and 00/100 ($141,600.00). 4- 12-110.2 F. This Agreement is consistent with the City of Newport Beach General Plan ("General Plan"), including without limitation the General Plan's designation of the Property as Mixed Use Horizontal 2 ("MU-112") which provides for a horizontal intermixing of uses that may include regional commercial office, multifamily residential, vertical mixed -use buildings, industrial, hotel rooms, and ancillary neighborhood commercial uses and the Newport Place Planned Community that was adopted in 1970 by Ordinance No. 1369, and amended from time to time, in order to establish appropriate zoning to regulate land use and development of property within the general boundaries of the Newport Place Planned Community. G. In recognition of the significant public benefits that this Agreement provides, the City Council finds that this Agreement: (i) is consistent with the City of Newport Beach General Plan as of the date of this Agreement; (ii) is in the best interests of the health, safety, and general welfare of City, its residents, and the public; (iii) is entered into pursuant to, and constitutes a present exercise of, City's police power; (iv) Project's Addendum No. 8 to the Environmental Impact Report (SCH# 2006011119) ("PEIR") that was certified by the City Council on July 25, 2006 for the 2006 General Plan Update and the Initial Study/Negative Declaration prepared in accordance with CEQA for the Newport Beach Housing Element Update (General Plan Amendment No. GP2008-003) adopted by the City Council on November 22, 2011 (the PEIR and Initial Study/Negative Declaration are collectively referred to herein as the "PEIR"), all of which analyze the environmental effects of the proposed development of the Project on the Property, and all of the findings, conditions of approval and mitigation measures related thereto; and (v) is consistent and has been approved consistent with provisions of California Government Code Section 65867 and City of Newport Beach Municipal Code chapter 15.45. H. On December 21, 2023, City's Planning Commission held a public hearing on this Agreement, and made findings and determinations with respect to this Agreement, and recommended to the City Council that the City Council approve this Agreement. I. On April 9, 2024, the City Council held a public hearing on this Agreement and considered the Planning Commission's recommendations and the testimony and information submitted by City staff, Property Owner, and members of the public. On April 23, 2024, consistent with applicable provisions of the Development Agreement Statute and Development Agreement Ordinance, the City Council adopted its Ordinance No. 2024-11 (the "Adopting Ordinance"), finding this Agreement to be consistent with the City of Newport Beach General Plan and approving this Agreement. AGREEMENT NOW, THEREFORE, City and Property Owner agree as follows: Definitions. In addition to any terms defined elsewhere in this Agreement, the following terms when used in this Agreement shall have the meanings set forth below: "Action" shall have the meaning ascribed in Section 8.10 of this Agreement. "Adopting Ordinance" shall mean City Council Ordinance No. 2024-11 approving and adopting this Agreement. 2 12-110.3 "Agreement" shall mean this Development Agreement, as the same may be amended from time to time. "Agreement Date" shall mean April 23, 2024, which date is the date the City Council adopted the Adopting Ordinance. "CE A" shall mean the California Environmental Quality Act (California Public Resources Code Sections 21000-21177) and the implementing regulations promulgated thereunder by the Secretary for Resources (California Code of Regulations, Title 14, Section 15000 et seq.) ("CEQA Guidelines"), as the same may be amended from time to time. "City" shall mean the City of Newport Beach, a California charter city. "City Council" shall mean the governing body of City. "City's Affiliated Parties" shall have the meaning ascribed in Section 10.1 of this Agreement. "Claim" shall have the meaning ascribed in Section 10.1 of this Agreement. "CPI Index" shall mean the Consumer Price Index published from time to time by the United States Department of Labor, Bureau of Labor Statistics for all urban consumers (all items) for the Los Angeles -Long Beach -Anaheim, California Area, All Urban Consumers, All Items, Base Period (1982-84=100), or, if such index is discontinued, such other similar index as may be publicly available that is selected by City in its reasonable discretion. "Cure Period" shall have the meaning ascribed in Section 8.1 of this Agreement. "Default" shall have the meaning ascribed to that term in Section 8.1 of this Agreement. "Develop" or "Development" shall mean to improve or the improvement of the Property for the purpose of completing the structures, improvements, and facilities comprising the Project, including but not limited to: grading; the construction of infrastructure and public facilities related to the Project, whether located within or outside the Property; the construction of all of the private improvements and facilities comprising the Project; the preservation or restoration, as required of natural and man-made or altered open space areas; and the installation of landscaping. The terms "Develop" and "Development," as used herein, do not include the maintenance, repair, reconstruction, replacement, or redevelopment of any structure, improvement, or facility after the initial construction and completion thereof. "Development Agreement Ordinance" shall mean Chapter 15.45 of the City of Newport Beach Municipal Code. "Development Agreement Statute" shall mean California Government Code Sections 65864-65869.5, inclusive. "Development Exactions" shall mean any requirement of City in connection with or pursuant to any ordinance, resolution, rule, or official policy for the dedication of land, the construction or installation of any public improvement or facility, or the payment of any fee or 3 12-110.4 charge in order to lessen, offset, mitigate, or compensate for the impacts of Development of the Project on the environment or other public interests. "Development Plan" shall mean all of the land use entitlements, approvals and permits approved by the City for the Project on or before the Agreement Date, as the same may be amended from time to time consistent with this Agreement. Such land use entitlements, approvals and permits include, without limitation, the following: (1) the Development rights as provided under this Agreement; (2) the amendment to the Newport Place Planned Community (PC-11) adopted pursuant to Ordinance No. 1369 and as amended by Ordinance No. 2024-10; (3) General Plan Amendment adopted pursuant to Resolution No. 2024-26; (4) Site Development Review adopted pursuant to Resolution No. 2024-26; (5) Affordable Housing Implementation Plan adopted pursuant to Resolution No. 2024-26; and Tentative Tract Map adopted pursuant to Resolution No. 2024-26. "Development Regulations" shall mean the following regulations as they are in effect as of the Agreement Date and to the extent they govern or regulate the development of the Property, but excluding any amendment or modification to the Development Regulations adopted, approved, or imposed after the Agreement Date that impairs or restricts the Property Owner's rights set forth in this Agreement, unless such amendment or modification is expressly authorized by this Agreement or is agreed to by the Property Owner in writing: the General Plan, the Development Plan, and, to the extent not expressly superseded by the Development Plan or this Agreement, all other land use and subdivision regulations governing the permitted uses, density and intensity of use, design, improvement, and construction standards and specifications, procedures for obtaining required City permits and approvals for development, and similar matters that may apply to development of the Project on the Property during the Term of this Agreement that are set forth in Title 15 of the Municipal Code (buildings and construction), Title 19 of the Municipal Code (subdivisions) and Title 20 of the Municipal Code (planning and zoning), but specifically excluding all other sections of the Municipal Code, including without limitation Title 5 of the Municipal Code (business licenses and regulations). Notwithstanding the foregoing, the term "Development Regulations," as used herein, does not include any City ordinance, resolution, code, rule, regulation or official policy governing any of the following: (i) the conduct of businesses, professions, and occupations; (ii) taxes and assessments; (iii) the control and abatement of nuisances; (iv) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or entry upon public property; or (v) the exercise of the power of eminent domain. "Effective Date" shall mean the latest of the following dates, as applicable: (i) the date that is thirty (30) days after the Agreement Date; (ii) if a referendum concerning the Adopting Ordinance, the Development Plan, or any of the Development Regulations approved on or before the Agreement Date is timely qualified for the ballot and a referendum election is held concerning the Adopting Ordinance or any of such Development Regulations, the date on which the referendum is certified resulting in upholding and approving the Adopting Ordinance and the Development Regulations; or (iii) if a lawsuit is timely filed challenging the validity of the Adopting Ordinance, this Agreement, and/or any of the Development Regulations approved on or before the Agreement Date, the date on which said challenge is finally resolved in favor of the validity or legality of the Adopting Ordinance, this Agreement, the Development Plan and/or the applicable Development Regulations, which such finality is achieved by a final non -appealable judgment, voluntary or involuntary dismissal (and the passage of any time required to appeal an 0 12-110.5 involuntary dismissal), or binding written settlement agreement. Promptly after the Effective Date occurs, the Parties agree to cooperate in causing an appropriate instrument to be executed and recorded against the Property memorializing the Effective Date. "Environmental Laws" means all federal, state, regional, county, municipal, and local laws, statutes, ordinances, rules, and regulations which are in effect as of the Agreement Date, and all federal, state, regional, county, municipal, and local laws, statutes, rules, ordinances, rules, and regulations which may hereafter be enacted and which apply to the Property or any part thereof, pertaining to the use, generation, storage, disposal, release, treatment, or removal of any Hazardous Substances, including without limitation the following: the Comprehensive Environmental Response Compensation and Liability Act of 1980, 42 U.S.C. Sections 9601, et SeMc ., as amended ("CERCLA"); the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901, et SeMc ., as amended ("RCRA"); the Emergency Planning and Community Right to Know Act of 1986, 42 U.S.C. Sections 11001 et sea., as amended; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et SeMc ., as amended; the Clean Air Act, 42 U.S.C. Sections 7401 et seq., as amended; the Clean Water Act, 33 U.S.C. Section 1251, et SeMc ., as amended; the Toxic Substances Control Act, 15 U.S.C. Sections 2601 et sN., as amended; the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. Sections 136 et sea., as amended; the Federal Safe Drinking Water Act, 42 U.S.C. Sections 300f et seq., as amended; the Federal Radon and Indoor Air Quality Research Act, 42 U.S.C. Sections 7401 et sea., as amended; the Occupational Safety and Health Act, 29 U.S.C. Sections 651 et seq., as amended; and California Health and Safety Code Section 25100, et seq. "General Plan" shall mean City's 2006 General Plan adopted by the City Council on July 25, 2006, by Resolution No. 2006-76, as amended through the Agreement Date but excluding any amendment after the Agreement Date that impairs or restricts the Property Owner's rights set forth in this Agreement, unless such amendment is expressly authorized by this Agreement, or is specifically agreed to by Property Owner. The Land Use Plan of the Land Use Element of the General Plan was approved by City voters in a general election on November 7, 2006. "Hazardous Substances" means any toxic substance or waste, pollutant, hazardous substance or waste, contaminant, special waste, industrial substance or waste, petroleum or petroleum -derived substance or waste, or any toxic or hazardous constituent or additive to or breakdown component from any such substance or waste, including without limitation any substance, waste, or material regulated under or defined as "hazardous" or "toxic" under any Environmental Law. "Mortgage" shall mean a mortgage, deed of trust, sale and leaseback arrangement, or any other form of conveyance in which the Property, or a part or interest in the Property, is pledged as security and contracted for in good faith and for fair value. "Mortgagee" shall mean the holder of a beneficial interest under a Mortgage or any successor or assignee of the Mortgagee. "Notice of Default" shall have the meaning ascribed in Section 8.1 of this Agreement. "�" or "Parties" shall mean either City or Property Owner or both, as determined by the context. 5 12-110.6 "Project" shall mean the demolition of an existing office building and construct 67 condominium units (including affordable units) atop of 146-space parking structure including all on -site and off -site improvements that Property Owner is authorized and/or may be required to construct on the Property, as provided in this Agreement and the Development Regulations, as the same may be modified or amended from time to time consistent with this Agreement and applicable law. "Property" is described in Exhibit "A" and generally depicted on Exhibit "B". "Property Owner" shall mean Intracorp Socal-1, a Delaware limited liability company and any successor or assignee to all or any portion of the right, title, and interest in and to ownership of all or a portion of the Property. "Public Benefit Fee" shall have the meaning ascribed in Section 3.1 of this Agreement. "Subsequent Development Approvals" shall mean all discretionary development and building approvals that Property Owner is permitted to obtain to Develop the Project on and with respect to the Property after the Agreement Date consistent with the Development Regulations. "Term" shall have the meaning ascribed in Section 2.4 of this Agreement. "Termination Date" and "Lot Termination Date" shall have the meaning ascribed in Section 2.4 of this Agreement. "Transfer" shall have the meaning ascribed in Section 11 of this Agreement. 2. General Provisions. 2.1 Plan Consistencv. Zoning Implementation. This Agreement and the Development Regulations applicable to the Property are consistent with the General Plan and the Newport Place Planned Community Development Plan (PC-11) as amended by the approvals in the Development Plan adopted concurrently herewith (including but not limited to the amendment to the General Plan and Newport Place Planned Community Development Plan (PC-11). 2.2 Binding Effect of Agreement. The Property is hereby made subject to this Agreement. Development of the Property is hereby authorized and shall be carried out in accordance with the terms of this Agreement. 2.3 Property Owner's Representations and Warranties Regarding Ownership of the Property and Related Matters Pertaining to this Agreement. Property Owner and each person executing this Agreement on behalf of Property Owner hereby represents and warrants to City as follows: (i) that Property Owner is the equitable owner pursuant to the Purchase and Sale Agreement and Escrow Instructions, dated April 13, 2022, as amended (collectively, "Purchase Agreement"), and upon closing of escrow shall be legal owner of the Property; (ii) if Property Owner or any co-owner comprising Property Owner is a legal 3 12-110.7 entity and that such entity is duly formed and existing and is authorized to do business in the State of California; (iii) if Property Owner or any co-owner comprising Property Owner is a natural person that such natural person has the legal right and capacity to execute this Agreement; (iv) that all actions required to be taken by all persons and entities comprising Property Owner to enter into this Agreement have been taken and that Property Owner has the legal authority to enter into this Agreement; (v) Property Owner's entering into and performing its obligations set forth in this Agreement will not result in a violation of any obligation, contractual or otherwise, that Property Owner or any person or entity comprising Property Owner has to any third party; (vi) that neither Property Owner nor any co-owner comprising Property Owner is the subject of any voluntary or involuntary petition in bankruptcy; and (vii) Property Owner has the authority and ability to enter into or perform any of its obligations set forth in this Agreement. 2.4 Term. The term of this Agreement (the "Term" shall commence on the Effective Date and continue until April 23, 2034, unless otherwise terminated or modified pursuant to its terms. Notwithstanding any other provision set forth in this Agreement to the contrary, if any Party reasonably determines that the Effective Date will not occur because (i) the Adopting Ordinance or any of the Development Regulations approved on or before the Agreement Date for the Project has/have been disapproved by City's voters at a referendum election or (ii) a final non - appealable judgment is entered in a judicial action challenging the validity or legality of the Adopting Ordinance, this Agreement, and/or any of the Development Regulations for the Project approved on or before the Agreement Date such that this Agreement and/or any of such Development Regulations is/are invalid and unenforceable in whole or in such a substantial part that the judgment substantially impairs such Party's rights or substantially increases its obligations or risks hereunder or thereunder, then such Party, in its sole and absolute discretion, shall have the right to terminate this Agreement upon delivery of a written notice of termination to the other Party, in which event neither Party shall have any further rights or obligations hereunder except that Property Owner's indemnity obligations set forth in Article 10 shall remain in full force and effect and shall be enforceable, and the Development Regulations applicable to the Project and the Property only (but not those general Development Regulations applicable to other properties in the City) shall be repealed by the City after delivery of said notice of termination except for the Development Regulations that have been disapproved by City's voters at a referendum election and, therefore, never took effect. The Termination Date shall be the earliest of the following dates: (i) the tenth (loth) anniversary of the Effective Date; (ii) such earlier date that this Agreement may be terminated in accordance with Article 5, and/or Section 8.3 of this Agreement and/or Sections 65865.1 and/or 65868 of the Development Agreement Statute; or (iii) completion of the Project in accordance with the terms of this Agreement, including Property Owner's complete satisfaction, performance, and payment, as applicable, of all Development Exactions, the issuance of all required final occupancy permits, and acceptance by City or applicable public agency(ies) or private entity(ies) of all required offers of dedication. Notwithstanding any other provision set forth in this Agreement to the contrary, the provisions set forth in Article 10 and Section 14.11 (as well as any other Property Owner 7 12-110.8 obligations set forth in this Agreement that are expressly written to survive the Termination Date) shall survive the Termination Date of this Agreement. Public Benefits. 3.1 Public Benefit Fee. As consideration for City's approval and performance of its obligations set forth in this Agreement, Property Owner shall pay to City a fee that shall be in addition to any other fee or charge to which the Property and the Project would otherwise be subject to (herein, the "Public Benefit Fee") in the total sum of One Million Six Hundred Twenty Eight Thousand and Four Hundred Dollars and 00/100 ($1,628,400.00) which shall be due and payable prior to the issuance of the first building permit for any portion of the Project. The City has not designated a specific project or purpose for the Public Benefit Fee. Property Owner acknowledges by its approval and execution of this Agreement that it is voluntarily agreeing to pay the Public Benefit Fee and that its obligation to pay the Public Benefit Fee is an essential term of this Agreement and is not severable from City's obligations and Owner's vested rights to be acquired hereunder, and that Property Owner expressly waives any constitutional, statutory, or common law right it might have in the absence of this Agreement to protest or challenge the payment of the Public Benefits identified in this Section 3.1 on any ground whatsoever, including without limitation pursuant to the Fifth and Fourteenth Amendments to the United States Constitution, California Constitution Article I Section 19, the Mitigation Fee Act (California Government Code Section 66000 et seq.), or otherwise. In addition to any other remedy set forth in this Agreement for Property Owner's default, if Property Owner shall fail to timely pay any portion of the Public Benefits identified in this Section 3.1 when due, City shall have the right to withhold issuance of any further building permits, occupancy permits, or other development or building permits for the Project. 3.2 Consumer Price Index (CPI) Increases. Any fee provided in this Article 3 (Public Benefits) shall be increased based upon percentage increases in the CPI Index as provided herein. The first CPI adjustment shall occur on the first anniversary of the City Council's adoption of the Adopting Ordinance (the first "Adjustment Date") and subsequent CPI adjustments shall occur on each anniversary of the first Adjustment Date thereafter until expiration of the Tenn of this Agreement (each, an "Adjustment Date"). The amount of the CPI adjustment on the applicable Adjustment Date shall in each instance be calculated based on the then most recently available CPI Index figures such that, for example, if the Effective Date of this Agreement falls on July 1 and the most recently available CPI Index figure on the first Adjustment Date (January 1 of the following year) is the CPI Index for November of the preceding year, the percentage increase in the CPI Index for that partial year (a 6-month period) shall be calculated by comparing the CPI Index for November of the preceding year with the CPI Index for May of the preceding year (a 6- month period). In no event, however, shall application of the CPI Index reduce the amount of the Public Benefit Fee (or unpaid portion thereof) below the amount in effect prior to any applicable Adjustment Date. 3.2 Other Public Benefits. In addition to the Public Benefit Fee, the direct and indirect benefits City shall receive pursuant to this Development Agreement are as follows: 12-110.9 3.2.1 Park In -Lieu Fee. The Property Owner shall pay a park land dedication in -lieu fee pursuant to the City General Plan Land Use Policy 6.15.13 in the amount of Five Hundred Thirteen Thousand Three Hundred Dollars and 00/100 ($513,300.00), for the purpose of acquisition and improvement of other properties as parklands to serve the Airport Area. The fee shall be due and payable prior to the issuance of the first building permit for any portion of the Project. 3.2.2 Public Safety Fee. The Property Owner shall pay a public safety fee in the amount of One Hundred Forty -One Thousand Six Hundred Dollars and 00/100 ($141,600.00) to be used, at the City's discretion, to fund the cost of staffing, services, and equipment necessary for fire related public safety purposes. The fee shall be due and payable prior to the issuance of the first building permit for any portion of the Project. 4. Development of Project. 4.1 Applicable Regulations, Property Owner's Vested Rights and City's Reservation of Discretion With Respect to Subsequent Development Approvals. Other than as expressly set forth in this Agreement, during the Term of this Agreement, (i) Property Owner shall have the vested right to Develop the Project on and with respect to the Property in accordance with the terms of the Development Regulations and this Agreement and (ii) City shall not prohibit or prevent development of the Property on grounds inconsistent with the Development Regulations or this Agreement. Notwithstanding the foregoing, nothing herein is intended to limit or restrict City's discretion with respect to (i) review and approval requirements contained in the Development Regulations, (ii) exercise of any discretionary authority City retains under the Development Regulations, (iii) the approval, conditional approval, or denial of any Subsequent Development Approvals applied for by Property Owner, or that are required, for Development of the Project as of the Agreement Date provided that all such actions are consistent with the Development Regulations, or (iv) any environmental approvals that may be required under CEQA or any other federal or state law or regulation in conjunction with any Subsequent Development Approvals that may be required for the Project, and in this regard, as to future actions referred to in clauses (i)-(iv) of this sentence, City reserves its full discretion to the same extent City would have such discretion in the absence of this Agreement. In addition, it is understood and agreed that nothing in this Agreement is intended to vest Property Owner's rights with respect to any laws, regulations, rules, or official policies of any other governmental agency or public utility company with jurisdiction over the Property or the Project; or any applicable federal or state laws, regulations, rules, or official policies that may be inconsistent with this Agreement and that override or supersede the provisions set forth in this Agreement, and regardless of whether such overriding or superseding laws, regulations, rules, or official policies are adopted or applied to the Property or the Project prior or subsequent to the Agreement Date. Property Owner has expended and will continue to expend substantial amounts of time and money in the planning and entitlement process to permit Development of the Project in the future. Property Owner represents and City acknowledges that Property Owner would not make these expenditures without this Agreement, and that Property Owner is and will be making these expenditures in reasonable reliance upon obtaining vested rights to Develop the Project as set forth in this Agreement. Z 12-110.10 Property Owner may apply to City for permits or approvals necessary to modify or amend the Development specified in the Development Regulations, provided that unless this Agreement also is amended, the request does not propose an increase in the maximum density, intensity, height, or size of proposed structures, or a change in use that generates more peak hour traffic or more daily traffic. In addition, Property Owner may apply to City for approval of minor amendments to existing tentative tract maps, tentative parcel maps, or associated conditions of approval, consistent with City of Newport Beach Municipal Code Section 19.12.090. This Agreement does not constitute a promise or commitment by City to approve any such permit or approval, or to approve the same with or without any particular requirements or conditions, and City's discretion with respect to such matters shall be the same as it would be in the absence of this Agreement. 4.2 No Conflicting Enactments. Except to the extent City reserves its discretion as expressly set forth in this Agreement, during the Term of this Agreement City shall not apply to the Project or the Property any ordinance, policy, rule, regulation, or other measure relating to Development of the Project that is enacted or becomes effective after the Agreement Date to the extent it conflicts with this Agreement. This Section 4.2 shall not restrict City's ability to enact an ordinance, policy, rule, regulation, or other measure applicable to the Project pursuant to California Government Code Section 65866 consistent with the procedures specified in Section 4.3 of this Agreement. In Pardee Construction Co. v. City of Camarillo (1984) 37 Cal.3d 465, the California Supreme Court held that a construction company was not exempt from a city's growth control ordinance even though the city and construction company had entered into a consent judgment (tantamount to a contract under California law) establishing the company's vested rights to develop its property consistent with the zoning. The California Supreme Court reached this result because the consent judgment failed to address the timing of development. The Parties intend to avoid the result of the Pardee case by acknowledging and providing in this Agreement that Property Owner shall have the vested right to Develop the Project on and with respect to the Property at the rate, timing, and sequencing that Property Owner deems appropriate within the exercise of Property Owner's sole subjective business judgment, provided that such Development occurs in accordance with this Agreement and the Development Regulations, notwithstanding adoption by City's electorate of an initiative to the contrary after the Agreement Date. No City moratorium or other similar limitation relating to the rate, timing, or sequencing of the Development of all or any part of the Project and whether enacted by initiative or another method, affecting subdivision maps, building permits, occupancy certificates, or other entitlement to use, shall apply to the Project to the extent such moratorium or other similar limitation restricts Property Owner's vested rights in this Agreement or otherwise conflicts with the express provisions of this Agreement. 4.3 Reservations of Authority. Notwithstanding any other provision set forth in this Agreement to the contrary, the laws, rules, regulations, and official policies set forth in this Section 4.3 shall apply to and govern the Development of the Project on and with respect to the Property. 4.3.1 Procedural Regulations. Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals, and 10 12-110.11 any other matter of procedure shall apply to the Property, provided that such procedural regulations are adopted and applied City-wide or to all other properties similarly situated in City. 4.3.2 Processing and Permit Fees. City shall have the right to charge and Property Owner shall be required to pay all applicable processing and permit fees to cover the reasonable cost to City of processing and reviewing applications and plans for any required Subsequent Development Approvals, building permits, excavation and grading permits, encroachment permits, and the like, for performing necessary studies and reports in connection therewith, inspecting the work constructed or installed by or on behalf of Property Owner, and monitoring compliance with any requirements applicable to Development of the Project, all at the rates in effect at the time fees are due. 4.3.3 Consistent Future City Regulations. City ordinances, resolutions, regulations, and official policies governing Development which do not conflict with the Development Regulations, or with respect to such regulations that do conflict, where Property Owner has consented in writing to the regulations, shall apply to the Property. 4.3.4 Development Exactions Applicable to Property. During the Term of this Agreement, Property Owner shall be required to satisfy and pay all Development Exactions at the time performance or payment is due to the same extent and in the same amount(s) that would apply to Property Owner and the Project in the absence of this Agreement; provided, however, that to the extent the scope and extent of a particular Development Exaction (excluding any development impact fee) for the Project has been established and fixed by City in the conditions of approval for any of the Development Regulations approved on or before the Agreement Date, City shall not alter, increase, or modify said Development Exaction in a manner that is inconsistent with such Development Regulations without Property Owner's prior written consent or as may be otherwise required pursuant to overriding federal or state laws or regulations (Section 4.3.5 hereinbelow). In addition, nothing in this Agreement is intended or shall be deemed to vest Property Owner against the obligation to pay any of the following (which are not included within the definition of "Development Exactions") in the full amount that would apply in the absence of this Agreement: (i) City's normal fees for processing, environmental assessment and review, tentative tract and parcel map review, plan checking, site review and approval, administrative review, building permit, grading permit, inspection, and similar fees imposed to recover City's costs associated with processing, reviewing, and inspecting project applications, plans, and specifications; (ii) fees and charges levied by any other public agency, utility, district, or joint powers authority, regardless of whether City collects those fees and charges; or (iii) community facility district special taxes or special district assessments or similar assessments, business license fees, bonds or other security required for public improvements, transient occupancy taxes, sales taxes, property taxes, sewer lateral connection fees, water service connection fees, new water meter fees, and the Property Development Tax payable under Chapter 3.12 of City's Municipal Code. 4.3.5 Overriding Federal and State Laws and Regulations. Federal and state laws and regulations that override Property Owner's vested rights set forth in this Agreement shall apply to the Property, together with any City ordinances, resolutions, regulations, and official policies that are necessary to enable City to comply with the provisions of any such overriding federal or state laws and regulations, provided that (i) Property Owner does not waive its right to challenge or contest the validity of any such purportedly overriding federal, state, or City law or regulation; and (ii) upon the discovery of any such overriding federal, state, or City law or regulation that 11 12-110.12 prevents or precludes compliance with any provision of this Agreement, City or Property Owner shall provide to the other Party a written notice identifying the federal, state, or City law or regulation, together with a copy of the law or regulation and a brief written statement of the conflict(s) between that law or regulation and the provisions of this Agreement. Promptly thereafter City and Property Owner shall meet and confer in good faith in a reasonable attempt to determine whether a modification or suspension of this Agreement, in whole or in part, is necessary to comply with such overriding federal, state, or City law or regulation. In such negotiations, City and Property Owner agree to preserve the terms of this Agreement and the rights of Property Owner as derived from this Agreement to the maximum feasible extent while resolving the conflict. City agrees to cooperate with Property Owner at no cost to City in resolving the conflict in a manner which minimizes any financial impact of the conflict upon Property Owner. City also agrees to process in a prompt manner Property Owner's proposed changes, the Project and any of the Development Regulations as may be necessary to comply with such overriding federal, state, or City law or regulation; provided, however, that the approval of such changes by City shall be subject to the discretion of City, consistent with this Agreement. 4.3.6 Public Health and Safety. Any City ordinance, resolution, rule, regulation, program, or official policy that is necessary to protect persons on the Property or in the immediate vicinity from conditions dangerous to their health or safety, as reasonably determined by City, shall apply to the Property, even though the application of the ordinance, resolution, rule regulation, program, or official policy would result in the impairment of Property Owner's vested rights under this Agreement. 4.3.7 Uniform Building Standards. Existing and future building and building - related standards set forth in the uniform codes adopted and amended by City from time to time, including building, plumbing, mechanical, electrical, housing, swimming pool, and fire codes, and any modifications and amendments thereof shall all apply to the Project and the Property to the same extent that the same would apply in the absence of this Agreement. 4.3.8 Public Works Improvements. To the extent Property Owner constructs or installs any public improvements, works, or facilities, the City standards in effect for such public improvements, works, or facilities at the time of City's issuance of a permit, license, or other authorization for construction or installation of same shall apply. 4.3.9 No Guarantee or Reservation of Utility Capacity. Notwithstanding any other provision set forth in this Agreement to the contrary, nothing in this Agreement is intended or shall be interpreted to require City to guarantee or reserve to or for the benefit of Property Owner or the Property any utility capacity, service, or facilities that may be needed to serve the Project, whether domestic or reclaimed water service, sanitary sewer transmission or wastewater treatment capacity, downstream drainage capacity, or otherwise, and City shall have the right to limit or restrict Development of the Project if and to the extent that City reasonably determines that inadequate utility capacity exists to adequately serve the Project at the time Development is scheduled to commence. 5. Amendment or Cancellation of Agreement. This Agreement may be amended or 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 Newport Beach Municipal Code Section 12 12-110.13 15.45.070 or by unilateral termination by City in the event of an uncured default of Property Owner. 6. Enforcement. Unless this Agreement is amended, canceled, modified, or suspended as authorized herein or pursuant to California Government Code Section 65869.5, this Agreement shall be enforceable by either Party despite any change in any applicable general or specific plan, zoning, subdivision, or building regulation or other applicable ordinance or regulation adopted by City (including by City's electorate) that purports to apply to any or all of the Property. 7. Annual Review of Property Owner's Compliance With Agreement. 7.1 General. City shall review this Agreement once during every twelve (12) month period following the Effective Date for compliance with the terms of this Agreement as provided in Government Code Section 65865.1. Property Owner (including any successor to the Property Owner executing this Agreement on or before the Agreement Date) shall pay City a reasonable fee in an amount City may reasonably establish from time to time to cover the actual and necessary costs for the annual review. City's failure to timely provide or conduct an annual review shall not constitute a Default hereunder by City. 7.2 Property Owner's Obligation to Demonstrate Good Faith Compliance. During each annual review by City, Property Owner is required to demonstrate good faith compliance with the terms of the Agreement. Property Owner agrees to furnish such evidence of good faith compliance as City, in the reasonable exercise of its discretion, may require, thirty (30) days prior to each anniversary of the Effective Date during the Term. 7.3 Procedure. The Zoning Administrator shall conduct a duly noticed hearing and shall determine, on the basis of substantial evidence, whether or not Property Owner has, for the period under review, complied with the terms of this Agreement. If the Zoning Administrator finds that Property Owner has so complied, the annual review shall be concluded. If the Zoning Administrator finds, on the basis of substantial evidence, that Property Owner has not so complied, written notice shall be sent to Property Owner by first class mail of the Zoning Administrator's finding of non-compliance, and Property Owner shall be given at least ten (10) calendar days to cure any noncompliance that relates to the payment of money and thirty (30) calendar days to cure any other type of noncompliance. If a cure not relating to the payment of money cannot be completed within thirty (30) calendar days for reasons which are beyond the control of Property Owner, Property Owner must commence the cure within such thirty (30) calendar days and diligently pursue such cure to completion. If Property Owner fails to cure such noncompliance within the time(s) set forth above, such failure shall be considered to be a Default and City shall be entitled to exercise the remedies set forth in Article 8 below. 7.4 Annual Review a Non -Exclusive Means for Determining and Requiring Cure of Property Owner's Default. The annual review procedures set forth in this Article 7 shall not be the exclusive means for City to identify a Default by Property Owner or limit City's rights or remedies for any such Default. 13 12-110.14 Events of Default. 8.1 General Provisions. In the event of any material default, breach, or violation of the terms of this Agreement ("Default"), the Party alleging a Default shall deliver a written notice (each, a "Notice of Default") to the defaulting Party. The Notice of Default shall specify the nature of the alleged Default and a reasonable manner and sufficient period of time (ten (10) calendar days if the Default relates to the failure to timely make a monetary payment due hereunder and not less than thirty (30) calendar days in the event of non -monetary Defaults) in which the Default must be cured ("Cure Period"). During the Cure Period, the Party charged shall not be considered in Default for the purposes of termination of this Agreement or institution of legal proceedings. If the alleged Default is cured within the Cure Period, then the Default thereafter shall be deemed not to exist. If a non -monetary Default cannot be cured during the Cure Period with the exercise of commercially reasonable diligence, the defaulting Party must promptly commence to cure as quickly as possible, and in no event later than thirty (30) calendar days after it receives the Notice of Default, and thereafter diligently pursue said cure to completion. Notwithstanding the foregoing, the City is not required to give Property Owner notice of default and may immediately pursue remedies for a Property Owner Default that result in an immediate threat to public health, safety or welfare. 8.2 Default by Proaertv Owner. If Property Owner is alleged to have committed a non -monetary Default and it disputes the claimed Default, it may make a written request for an appeal hearing before the City Council within ten (10) days of receiving the Notice of Default, and a public hearing shall be scheduled at the next available City Council meeting to consider Property Owner's appeal of the Notice of Default. Failure to appeal a Notice of Default to the City Council within the ten (10) day period shall waive any right to a hearing on the claimed Default. If Property Owner's appeal of the Notice of Default is timely and in good faith but after a public hearing of Property Owner's appeal the City Council concludes that Property Owner is in Default as alleged in the Notice of Default, the accrual date for commencement of the thirty (30) day Cure Period provided in Section 8.1 shall be extended until the City Council's denial of Property Owner's appeal is communicated to Property Owner in writing. 8.3 City's Ontion to Terminate Agreement. In the event of an alleged Property Owner Default, City may not terminate this Agreement without first delivering a written Notice of Default and providing Property Owner with the opportunity to cure the Default within the Cure Period, as provided in Section 8.1, and complying with Section 8.2 if Property Owner timely appeals any Notice of Default. A termination of this Agreement by City shall be valid only if good cause exists and is supported by evidence presented to the City Council at or in connection with a duly noticed public hearing to establish the existence of a Default. The validity of any termination may be judicially challenged by Property Owner. Any such judicial challenge must be brought within thirty (30) days of service on Property Owner, by first class mail, postage prepaid, of written notice of termination by City or a written notice of City's determination of an appeal of the Notice of Default as provided in Section 8.2. 14 12-110.15 8.4 Default by City. If Property Owner alleges a City Default and alleges that the City has not cured the Default within the Cure Period, Property Owner may pursue any equitable remedy available to it under this Agreement, including, without limitation, an action for a writ of mandamus, injunctive relief, or specific performance of City's obligations set forth in this Agreement. Upon a City Default, any resulting delays in Property Owner's performance hereunder shall neither be a Property Owner Default nor constitute grounds for termination or cancellation of this Agreement by City and shall, at Property Owner's option (and provided Property Owner delivers written notice to City within thirty (30) days of the commencement of the alleged City Default), extend the Term for a period equal to the length of the delay. 8.5 Waiver. Failure or delay by either Party in delivering a Notice of Default shall not waive that Party's right to deliver a future Notice of Default of the same or any other Default. 8.6 Specific Performance Remedy. Due to the size, nature, and scope of the Project, it will not be practical or possible to restore the Property to its pre-existing condition once implementation of this Agreement has begun. After such implementation, both Property Owner and City may be foreclosed from other choices they may have had to plan for the development of the Property, to utilize the Property or provide for other benefits and alternatives. Property Owner and City have invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement. It is not possible to determine the sum of money which would adequately compensate Property Owner or City for such efforts. For the above reasons, City and Property Owner agree that damages would not be an adequate remedy if either City or Property Owner fails to carry out its obligations under this Agreement. Therefore, specific performance of this Agreement is necessary to compensate Property Owner if City fails to carry out its obligations under this Agreement or to compensate City if Property Owner falls to carry out its obligations under this Agreement. 8.7 Monetary Damages. The Parties agree that monetary damages shall not be an available remedy for either Party for a Default hereunder by the other Party; provided, however, that (i) nothing in this Section 8.7 is intended or shall be interpreted to limit or restrict City's right to recover the Public Benefit Fees due from Property Owner as set forth herein; and (ii) nothing in this Section 8.7 is intended or shall be interpreted to limit or restrict Property Owner's indemnity obligations set forth in Article 10 or the right of the prevailing Party in any Action to recover its litigation expenses, as set forth in Section 8.10. In no event shall damages be awarded against the City upon an event of default or upon termination of this Agreement. Property Owner expressly agrees that the City, any City agencies and their respective elected and appointed councils, boards, commissions, officers, agents, employees, volunteers and representatives (collectively, for purposes of this Section 8.7, "Cily") shall not be liable for any monetary damage for a Default by the City or any claims against City arising out of this Agreement. Property Owner hereby expressly waives any such monetary 15 12-110.16 damages against the City. The sole and exclusive judicial remedy for Property Owner in the event of a Default by the City shall be an action in mandamus, specific performance, or other injunctive or declaratory relief. 8.8 Additional City Remedy for Property Owner's Default. In the event of any Default by Property Owner, in addition to any other remedies which may be available to City, whether legal or equitable, City shall be entitled to receive and retain any Development Exactions applicable to the Project or the Property, including any fees, grants, dedications, or improvements to public property which it may have received prior to Property Owner's Default without recourse from Property Owner or its successors or assigns. 8.9 No Personal Liability of f City Officials, Employees, or Agents. No City official, employee, or agent shall have any personal liability hereunder for a Default by City of any of its obligations set forth in this Agreement. 8.10 Recovery of Legal Expenses by Prevailing Part, in Action. In any judicial proceeding, arbitration, or mediation (collectively, an "Action") between the Parties that seeks to enforce the provisions of this Agreement or arises out of this Agreement, the prevailing Party shall not recover any of its costs and expenses, regardless of whether they would be recoverable under California Code of Civil Procedure Section 1033.5 or California Civil Code Section 1717 in the absence of this Agreement. These costs and expenses include, but are not limited to, court costs, expert witness fees, attorneys' fees, City staff costs (including overhead), and costs of investigation and preparation before initiation of the Action. 9. Force Majeure. Neither Party shall be deemed to be in Default where failure or delay in performance of any of its obligations under this Agreement is caused, through no fault of the Party whose performance is prevented or delayed, by floods, earthquakes, other acts of God, fires, wars, riots or similar hostilities, strikes or other labor difficulties, state or federal regulations, or court actions. Except as specified above, nonperformance shall not be excused because of the act or omission of a third person. In no event shall the occurrence of an event of force majeure operate to extend the Term of this Agreement. In addition, in no event shall the time for performance of a monetary obligation, including without limitation Property Owner's obligation to pay Public Benefit Fees, be extended pursuant to this Section. 10. Indemnity Obligations of Pronertv Owner. 10.1 Indemnity Arising From Acts or Omissions of Pronertv Owner. Property Owner shall indemnify, defend, and hold harmless City and City's officials, employees, agents, attorneys, and contractors (collectively, the "City's Affiliated Parties") from and against all suits, claims, liabilities, losses, damages, penalties, obligations, and expenses (including but not limited to attorneys' fees and costs) (collectively, a "Claim") that may arise, directly or indirectly, from the acts, omissions, or operations of Property Owner or Property Owner's agents, contractors, subcontractors, agents, or employees in the course of Development 16 12-110.17 of the Project or any other activities of Property Owner relating to the Property or pursuant to this Agreement. City shall have the right, in its sole discretion, to select and retain counsel to defend any Claim filed against City and/or any of City's Affiliated Parties, and Property Owner shall pay the reasonable cost for defense of any Claim. The indemnity provisions in this Section 10.1 shall commence on the Agreement Date, regardless of whether the Effective Date occurs, and shall survive the Termination Date. 10.2 Third Party Litigation. In addition to its indemnity obligations set forth in Section 10.1, Property Owner shall indemnify, defend, and hold harmless City and City's Affiliated Parties from and against any Claim against City or City's Affiliated Parties seeking to attack, set aside, void, or annul the approval of this Agreement, the Adopting Ordinance, any of the Development Regulations for the Project (including without limitation any actions taken pursuant to CEQA with respect thereto), any Subsequent Development Approval, or the approval of any permit granted pursuant to this Agreement. Said indemnity obligation shall include payment of attorney's fees, expert witness fees, City staff costs, and court costs. City shall promptly notify Property Owner of any such Claim and City shall cooperate with Property Owner in the defense of such Claim. If City fails to promptly notify Property Owner of such Claim, Property Owner shall not be responsible to indemnify, defend, and hold City harmless from such Claim until Property Owner is so notified and if City fails to cooperate in the defense of a Claim Property Owner shall not be responsible to defend, indemnify, and hold harmless City during the period that City so fails to cooperate or for any losses attributable thereto. City shall be entitled to retain separate counsel to represent City against the Claim and the City's defense costs for its separate counsel shall be included in Property Owner's indemnity obligation, provided that such counsel shall reasonably cooperate with Property Owner in an effort to minimize the total litigation expenses incurred by Property Owner. In the event either City or Property Owner recovers any attorney's fees, expert witness fees, costs, interest, or other amounts from the party or parties asserting the Claim, Property Owner shall be entitled to retain the same (provided it has fully performed its indemnity obligations hereunder). The indemnity provisions in this Section 10.2 shall commence on the Agreement Date, regardless of whether the Effective Date occurs, and shall survive the Termination Date. 10.3 Environmental Indemnity. In addition to its indemnity obligations set forth in Section 10.1, from and after the Agreement Date Property Owner shall indemnify, defend, and hold harmless City and City's Affiliated Parties from and against any and all Claims for personal injury or death, property damage, economic loss, statutory penalties or fines, and damages of any kind or nature whatsoever, including without limitation attorney's fees, expert witness fees, and costs, based upon or arising from any of the following: (i) the actual or alleged presence of any Hazardous Substance on or under any of the Property in violation of any applicable Environmental Law; (ii) the actual or alleged migration of any Hazardous Substance from the Property through the soils or groundwater to a location or locations off of the Property; and (iii) the storage, handling, transport, or disposal of any Hazardous Substance on, to, or from the Property and any other area disturbed, graded, or developed by Property Owner in connection with Property Owner's Development of the Project. The indemnity provisions in this Section 10.3 shall commence on the Agreement Date, regardless of whether the Effective Date occurs, and shall survive the Termination Date. 17 12-110.18 11. Assignment. Property Owner shall have the right to sell, transfer, or assign (hereinafter, collectively, a "Transfer") Property Owner's interest in or fee title to the Property, in whole or in part, to any person, partnership, joint venture, firm, or corporation (which successor, as of the effective date of the Transfer, shall become the "Property Owner" under this Agreement) at any time from the Agreement Date until the Termination Date; provided, however, that no such Transfer shall violate the provisions of the Subdivision Map Act (Government Code Section 66410 et sea.) or City's local subdivision ordinance and any such Transfer shall include the assignment and assumption of Property Owner's rights, duties, and obligations set forth in or arising under this Agreement as to the Property or the portion thereof so Transferred and shall be made in strict compliance with the following conditions precedent: (i) no transfer or assignment of any of Property Owner's rights or interest under this Agreement shall be made unless made together with the Transfer of all or a part of the Property; and (ii) prior to the effective date of any proposed Transfer, Property Owner (as transferor) shall notify City, in writing, of such proposed Transfer and deliver to City a written assignment and assumption, executed in recordable form by the transferring and successor Property Owner and in a form subject to the reasonable approval of the City Attorney of City (or designee), pursuant to which the transferring Property Owner assigns to the successor Property Owner and the successor Property Owner assumes from the transferring Property Owner all of the rights and obligations of the transferring Property Owner with respect to the Property or portion thereof to be so Transferred, including in the case of a partial Transfer the obligation to perform such obligations that must be performed off of the portion of the Property so Transferred that are a condition precedent to the successor Property Owner's right to develop the portion of the Property so Transferred. Any Permitted Transferee shall have all of the same rights, benefits, duties, obligations, and liabilities of Property Owner under this Agreement with respect to the portion of, or interest in, the Property sold, transferred, and assigned to such Permitted Transferee; provided, however, that in the event of a Transfer of less than all of the Property, or interest in the Property, no such Permitted Transferee shall have the right to enter into an amendment of this Agreement that jeopardizes or impairs the rights or increases the obligations of the Property Owner with respect to the balance of the Property, without Property Owner's written consent. Notwithstanding any Transfer, the transferring Property Owner shall continue to be jointly and severally liable to City, together with the successor Property Owner, to perform all of the transferred obligations set forth in or arising under this Agreement unless the transferring Property Owner is given a release in writing by City, which release shall be only with respect to the portion of the Property so Transferred in the event of a partial Transfer. City shall provide such a release upon the transferring Property Owner's full satisfaction of all of the following conditions: (i) the transferring Property Owner no longer has a legal or equitable interest in the portion of the Property so Transferred other than as a beneficiary under a deed of trust; (ii) the transferring Property Owner is not then in Default under this Agreement and no condition exists that with the passage of time or the giving of notice, or both, would constitute a Default hereunder; (iii) the transferring Property Owner has provided City with the notice and the fully executed written and recordable assignment and assumption agreement required as set forth in the first paragraph of this Section 11; and (iv) the successor Property Owner either (A) provides City with substitute security equivalent to any security previously provided by the transferring Property Owner to City to secure performance of the successor Property Owner's obligations hereunder with respect to the Property or the portion of the Property so Transferred or (B) if the transferred obligation in question is not a secured obligation, the successor Property Owner either provides security reasonably satisfactory to City 18 12-110.19 or otherwise demonstrates to City's reasonable satisfaction that the successor Property Owner has the financial resources or commitments available to perform the transferred obligation at the time and in the manner required under this Agreement and the Development Regulations for the Project. Any determination by the City in regards to the second paragraph of Section 11 subpart (iv) (A) and/or (B) shall be documented in writing. 12. Mortgagee Rights. 12.1 Encumbrances on Property. The Parties agree that this Agreement shall not prevent or limit Property Owner in any manner from encumbering the Property, any part of the Property, or any improvements on the Property with any Mortgage securing financing with respect to the construction, development, use, or operation of the Project. 12.2 Mortgagee Protection. This Agreement shall be superior and senior to the lien of any Mortgage. Nevertheless, no breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value. Any acquisition or acceptance of title or any right or interest in the Property or part of the Property by a Mortgagee (whether due to foreclosure, trustee's sale, deed in lieu of foreclosure, lease termination, or otherwise) shall be subject to all of the terms and conditions of this Agreement. Any Mortgagee who takes title to the Property or any part of the Property shall be entitled to the benefits arising under this Agreement. 12.3 Mortgagee Not Obligated. Notwithstanding the provisions of this Section 12.3, a Mortgagee will not have any obligation or duty under the terms of this Agreement to perform the obligations of Property Owner or other affirmative covenants of Property Owner, or to guarantee this performance except that: (i) the Mortgagee shall have no right to develop the Project under the Development Regulations without fully complying with the terms of this Agreement; and (ii) to the extent that any covenant to be performed by Property Owner is a condition to the performance of a covenant by City, that performance shall continue to be a condition precedent to City's performance. 12.4 Notice of Default to Mortgagee; Right of Mortgagee to Cure. Each Mortgagee shall, upon written request to City, be entitled to receive written notice from City of: (i) the results of the periodic review of compliance specified in Article 7 of this Agreement, and (ii) any default by Property Owner of its obligations set forth in this Agreement. Each Mortgagee shall have a further right, but not an obligation, to cure the Default within ten (10) days after receiving a Notice of Default with respect to a monetary Default and within thirty (30) days after receiving a Notice of Default with respect to a non -monetary Default. If the Mortgagee can only remedy or cure a non -monetary Default by obtaining possession of the Property, then the Mortgagee shall have the right to seek to obtain possession with diligence and continuity through a receiver or otherwise, and to remedy or cure the non -monetary Default within thirty (30) days after obtaining possession and, except in case of emergency or to protect the public health or safety, City may not exercise any of its judicial remedies set forth in this Agreement to 19 12-110.20 terminate or substantially alter the rights of the Mortgagee until expiration of the thirty (30) day period. In the case of a non -monetary Default that cannot with diligence be remedied or cured within thirty (30) days, the Mortgagee shall have additional time as is reasonably necessary to remedy or cure the Default, provided the Mortgagee promptly commences to cure the non - monetary Default within thirty (30) days and diligently prosecutes the cure to completion. 13. Bankruptcy. The obligations of this Agreement shall not be dischargeable in bankruptcy. 14. Miscellaneous Terms. 14.1 Reserved. 14.2 Notices. Any notice or demand that shall be required or permitted by law or any provision of this Agreement shall be in writing. If the notice or demand will be served upon a Party, it either shall be personally delivered to the Party; deposited by a reliable courier service that provides a receipt showing date and time of delivery with courier charges prepaid. The notice or demand shall be addressed as follows: TO CITY: City of Newport Beach 100 Civic Center Drive Newport Beach, California 92660 Attn: City Manager With a copy to: City of Newport Beach 100 Civic Center Drive Newport Beach, California 92660 Attn: City Attorney TO PROPERTY OWNER: Intracorp Socal-1, LLC 895 Dove Street, Ste. 400 Newport Beach, CA 92660 With a copy to: Either Party may change the address stated in this Section 14.2 by delivering notice to the other Party in the manner provided in this Section 14.2, and thereafter notices to such Party shall be addressed and submitted to the new address. Notices delivered in accordance with this Agreement shall be deemed to be delivered upon the earlier of: (i) the date received or (iii) three business days after deposit in the mail as provided above. 14.3 Project as a Private Undertaking, Any future Development of the Project is a private undertaking. Neither Party will be acting as the agent of the other in any respect, and each Party will be an independent contracting entity with respect to the terms, covenants, and conditions set forth in this Agreement. This 20 12-110.21 Agreement forms no partnership, joint venture, or other association of any kind. The only relationship between the Parties is that of a government entity regulating the Development of private property by the owner or user of the Property. 14.4 Cooperation. Each Party shall cooperate with and provide reasonable assistance to the other Party to the extent consistent with and necessary to implement this Agreement. Upon the request of a Party at any time, the other Party shall promptly execute, with acknowledgement or affidavit if reasonably required, and file or record the required instruments and writings and take any actions as may be reasonably necessary to implement this Agreement or to evidence or consummate the transactions contemplated by this Agreement. 14.5 Estonnel Certificates. At any time, either Party may deliver written notice to the other Party requesting that that Party certify in writing that, to the best of its knowledge: (i) this Agreement is in full force and effect and is binding on the Party; (ii) this Agreement has not been amended or modified either orally or in writing or, if this Agreement has been amended, the Party providing the certification shall identify the amendments or modifications; and (iii) the requesting Party is not in Default in the performance of its obligations under this Agreement and no event or situation has occurred that with the passage of time or the giving of Notice or both would constitute a Default or, if such is not the case, then the other Party shall describe the nature and amount of the actual or prospective Default. The Party requested to furnish an estoppel certificate shall execute and return the certificate within thirty (30) days following receipt. Requests for the City to furnish an estoppel certificate shall include reimbursement for all administrative costs incurred by the City including reasonable attorney's fees incurred by the City in furnishing an estoppels certificate. 14.6 Rules of Construction. The singular includes the plural; the masculine and neuter include the feminine; "shall" is mandatory; and "may" is permissive. 14.7 Time Is of the Essence. Time is of the essence regarding each provision of this Agreement as to which time is an element. 14.8 Waiver. The failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, and failure by a Party to exercise its rights upon a Default by the other Party, shall not constitute a waiver of that Party's right to demand strict compliance by the other Party in the future. 21 12-110.22 14.9 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be identical and may be introduced in evidence or used for any other purpose without any other counterpart, but all of which shall together constitute one (1) and the same agreement. 14.10 Entire Agreement. This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings, both written and oral, between the Parties with respect to the subject matter addressed in this Agreement. 14.11 Severability. The Parties intend that each and every obligation of the Parties is interdependent and interrelated with the other, and if any provision of this Agreement or the application of the provision to any Party or circumstances shall be held invalid or unenforceable to any extent, it is the intention of the Parties that the remainder of this Agreement or the application of the provision to persons or circumstances shall be rendered invalid or unenforceable. The Parties intend that neither Party shall receive any of the benefits of the Agreement without the full performance by such Party of all of its obligations provided for under this Agreement. Without limiting the generality of the foregoing, the Parties intend that Property Owner shall not receive any of the benefits of this Agreement if any of Property Owner's obligations are rendered void or unenforceable as the result of any third party litigation, and City shall be free to exercise its legislative discretion to amend or repeal the Development Regulations applicable to the Property and Property Owner shall cooperate as required, despite this Agreement, should third party litigation result in the nonperformance of Property Owner's obligations under this Agreement. The provisions of this Section 14.11 shall apply regardless of whether the Effective Date occurs and after the Termination Date. 14.12 Construction. This Agreement has been drafted after negotiation and revision. Both City and Property Owner are sophisticated parties who were represented by independent counsel throughout the negotiations or City and Property Owner had the opportunity to be so represented and voluntarily chose to not be so represented. City and Property Owner each agree and acknowledge that the terms of this Agreement are fair and reasonable, taking into account their respective purposes, terms, and conditions. This Agreement shall therefore be construed as a whole consistent with its fair meaning and applicable principle or presumptions of contract construction or interpretation, if any, shall be used to construe the whole or any part of this Agreement in favor of or against either Party. 14.13 Successors and Assigns: Constructive Notice and Acceatance. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to Development of the Property: (i) is for the benefit of and is a burden upon every portion of the Property; (ii) runs 22 12-110.23 with the Property and each portion thereof; and (iii) is binding upon each Party and each successor in interest during its ownership of the Property or any portion thereof. Every person or entity who now or later owns or acquires any right, title, or interest in any part of the Project or the Property is and shall be conclusively deemed to have consented and agreed to every provision of this Agreement. This Section 14.13 applies regardless of whether the instrument by which such person or entity acquires the interest refers to or acknowledges this Agreement and regardless of whether such person or entity has expressly entered into an assignment and assumption agreement as provided for in Article 11. 14.14 No Third Party Beneficiaries. The only Parties to this Agreement are City and Property Owner. This Agreement does not involve any third party beneficiaries, and it is not intended and shall not be construed to benefit or be enforceable by any other person or entity. 14.15 Applicable Law and Venue. This Agreement shall be construed and enforced consistent with the internal laws of the State of California, without regard to conflicts of law principles. Any action at law or in equity arising under this Agreement or brought by any Party for the purpose of enforcing, construing, or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, or the United States District Court for the Central District of California. The Parties waive all provisions of law providing for the removal or change of venue to any other court. 14.16 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect construction or interpretation of this Agreement. 14.17 Incorporation of Recitals and Exhibits. All of the Recitals are incorporated into this Agreement by this reference. Exhibits A and B are attached to this Agreement and incorporated by this reference as follows: EXHIBIT DESCRIPTION DESIGNATION A Legal Description of Property B Depiction of the Property PAI 12-110.24 14.18 Recordation. The City Clerk of City shall record this Agreement and any amendment, modification, or cancellation of this Agreement in the Office of the County Recorder of the County of Orange within the period required by California Government Code section 65868.5 and City of Newport Beach Municipal Code section 15.45.090. The date of recordation of this Agreement shall not modify or amend the Effective Date or the Termination Date. [SIGNATURE PAGE FOLLOWS] 24 12-110.25 SIGNATURE PAGE TO DEVELOPMENT AGREEMENT ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: Aaron C. Harp, City Attorney "PROPERTY OWNER" Intracorp Socal-1, LLC, a Delaware limited liability company By: _ Name: Title: By: _ Name: Title: "CITY" CITY OF NEWPORT BEACH, a municipal corporation and charter city Will O'Neill, Mayor 25 12-110.26 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of } On , 20 before me, , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of On , 20 before me, , Notary Public, personally appeared , proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) -26- 12-110.27 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY Parcel 1 of Resubdivision No. 341 12-110.28 L AN SPRUCE AVE cy Attachment E Resolution No. 2024-27 12-111 RESOLUTION NO. 2024- 27 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, FINDING THE RESIDENCES AT 1401 QUAIL PROJECT IS CONSISTENT WITH THE PURPOSES OF THE STATE AERONAUTICS ACT AND OVERRIDING THE ORANGE COUNTY AIRPORT LAND USE COMMISSION'S DETERMINATION THAT THE PROJECT IS INCONSISTENT WITH THE 2008 JOHN WAYNE AIRPORT ENVIRONS LAND USE PLAN (PA2023-0040) WHEREAS, Section 200 of the City of Newport Beach ("City') Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, an application was filed by Intracorp Homes ("Applicant"), with respect to the property located at 1401 Quail Street and legally described as Parcel 1 of Resubdivision No. 341 ("Property"); WHEREAS, the Applicant is requesting approvals to demolish an existing office building and develop 67 for -sale condominium units, including a 146-space parking structure ("Project"), which requires the following approvals: • General Plan Amendment ("GPA") — A request to amend the General Plan Land Use Designation of the Property from General Commercial Office (CO-G) to Mixed -Use Horizontal (MU-H2); • Planned Community Development Plan Amendment ("PCDP Amendment") —An amendment to the Newport Place Planned Community (PC-11) Development Plan to include the Property within the Residential Overlay; • Major Site Development Review ("SDR") - A site development review in accordance with the Newport Place Planned Community (PC-11) and Section 20.52.080 (Site Development Reviews) of the Newport Beach Municipal Code ("NBMC") to construct the Project; 12-112 Resolution No. 2024- Page 2 of 9 • Tentative Vesting Tract Map (VTM) — A Vesting Tentative Tract Map No. 19261 pursuant to Title 19 (Subdivisions) of the NBMC for 67 condominium dwelling units; • Affordable Housing Implementation Plan (AHIP) — A plan specifying how the Project would meet the City's affordable housing requirements, in exchange for a request of 27.5% increase in density including a request for four development standard waivers related to park land dedication, building setbacks, and building height along with two development concessions related to the mix of affordable units and a partial payment of the park in -lieu fees pursuant to Chapter 20.32 (Density Bonus) of the NBMC and Government Code Section 65915 of seq. ("State Density Bonus Law"); • Development Agreement ("DA") — A development agreement, between the Applicant and the City, pursuant to Section 15.45.020 (Development Agreement Required) of the NBMC, which would provide the Applicant with vested right to develop the Project for a term of ten years and provide negotiated public benefits to the City; and • Addendum No. 8 to the 2006 General Plan Update Program Environmental Impact Reports and the 2008-2014 City of Newport Beach Housing Element Update and Initial Study/Negative Declaration ("Addendum No. 8") — An addendum which addresses reasonably foreseeable environmental impacts resulting from the Project; WHEREAS, the Property is designated General Commercial Office (CO-G) by the General Plan Land Use Element and located within the Newport Place Planned Community (PC-11) Zoning District in the Industrial Site 3A sub -area; WHEREAS, the Property is not located within the coastal zone; therefore, amending the Local Coastal Program and obtaining a coastal development permit are not required; WHEREAS, the Property is located in the Airport Area Environs ("Airport Area") and is one of the 62 new housing opportunity sites allocated in the certified 6th Cycle Housing Element; 12-113 Resolution No. 2024- Page 3 of 9 WHEREAS, on November 14, 2023, the City Council approved Resolutions 2023- 72 and 2023-73 and Ordinances 2023-20 and 2023-21, authorizing amendments to the Noise Element and Land Use Element of the General Plan, Title 20 (Planning and Zoning) of the NBMC, Newport Place Planned Community Development Plan (PC-11), and Newport Airport Village Planned Community Development Plan (PC-60) ("Housing Element Implementation Noise -Related Amendments") to update the noise contours identified by the 2014 John Wayne Airport Settlement Agreement Amendment Environmental Impact Report No. 617 EIR No. 617"), allowing residential units identified by the certified 6th Cycle Newport Beach Housing Element to be located within the 65 decibel ("65 dBA") Community Noise Equivalent Level ("CNEL") noise contour maps analyzed in EIR No. 617, and incorporating additional noise attenuation measures for future housing units proximate to John Wayne Airport ("6th Cycle Housing Element Implementation Noise — Related Amendments"); WHEREAS, the Property is located within the 60 dBA noise contour as a shown in the updated noise contour maps adopted as part of the Housing Element Implementation Noise -Related Amendments; WHEREAS, a public hearing was held by the Planning Commission on December 21, 2023 in the Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and Chapter 15.45 (Development Agreements), Chapter 19.20 (Vesting Tentative Map), Chapter 20.56 (Planned Community District Procedures), and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; WHEREAS, at the hearing, the Planning Commission adopted Resolution No. PC2023-047 by a majority vote (6-0 with one Commissioner absent) recommending the City Council approve the Project; WHEREAS, California Public Utilities Code ("CPUC") Section 21676(b) requires the City to refer the Project to the Orange County Airport Land Use Commission ("ALUC") to review for consistency with the 2008 John Wayne Airport Environs Land Use Plan ("AELUP"); 12-114 Resolution No. 2024- Page 4 of 9 WHEREAS, on January 18, 2024, the ALUC determined the Project is inconsistent with the following provisions of the AELUP: A. Section 2.1.1 (Aircraft Noise), which provides that the "aircraft noise emanating from airports may be incompatible with the general welfare of the inhabitants within the vicinity of an airport"; B. Section 2.1.2 (Safety Compatibility Zones), which provides "the purpose of these zones is to support the continued use and operation of an airport by establishing compatibility and safety standards to promote air navigational safety and to reduce potential safety hazards for persons living, working or recreating near JWA"; and C. Section 3.2.1 (General Policy), which provides that "[w]ithin the boundaries of the AELUP, any land use may be found to be Inconsistent with the AELUP [if it] ... (1) [p]laces people so that they are affected adversely by aircraft noise [or] (2) concentrates people in areas susceptible to aircraft accidents ... " WHEREAS, pursuant to Sections 21670 and 21676 of CPUC, the City Council may, after a public hearing, propose to overrule the ALUC by a two-thirds vote, if it makes specific findings that the Project is consistent with the purpose of Section 21670 of the CPUC to protect the public health, safety, and welfare by ensuring the orderly expansion of airports and the adoption of land use measures that minimize the public's exposure to excessive noise and safety hazards within areas around public airports to the extent that these areas are not already devoted to incompatible uses; WHEREAS, a public hearing was held by the City Council on February 13, 2024, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place, and purpose of the hearing was given in accordance with CPUC Section 21676(b) and the Ralph M. Brown Act. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; WHEREAS, at the conclusion of the hearing, the City Council adopted Resolution No. 2024-10 by unanimous vote (7 ayes, 0 nays) to notify the ALUC and State Department of Transportation Aeronautics Program ("Aeronautics Program") of the City's intent to override ALUC's inconsistency finding; 12-115 Resolution No. 2024- Page 5 of 9 WHEREAS, a notice of the City's intent to override the ALUC inconsistency determination, along with Resolution No. 2024-10 was sent via certified mail and emailed to the ALUC and the Aeronautics Program on February 14, 2024; WHEREAS, the City received timely comments in response to the notice of the City's intent to override the ALUC inconsistency determination from the ALUC, and the Aeronautics Program in accordance with CPUC Section 21676 which are attached hereto as Exhibits "B" and "C" respectively, incorporated herein by reference; and WHEREAS, a public hearing was held by the City Council on April 9, 2024, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act, Chapter 15.45 (Development Agreements), Chapter 19.20 (Vesting Tentative Maps), Chapter 20.56 (Planned Community District Procedures), and Chapter 20.62 (Public Hearings) of the NBMC, and CPUC Section 21676(b). Evidence, both written and oral, was presented to, and considered by, the City Council at this meeting. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council finds the Project is consistent with the purposes of Section 21670 of the CPUC and the AELUP to protect the public health, safety, and welfare by ensuring the orderly expansion of airports and the adoption of land use measures that minimize the public's exposure to excessive noise and safety hazards within areas around public airports to the extent that these areas are not already devoted to incompatible uses and hereby overrides ALUC' s determination that the Project is inconsistent with the AELUP. Findings and Facts in Support of Findings A. The Project is consistent with the noise standards of the AELUP. The AELUP guides development proposals to provide forthe orderly development of John Wayne Airport and the surrounding area through implementation of the standards in Section 2 (Planning Guidelines) and Section 3 (Land Use Policies). Implementation of these standards are intended to protect the public from the adverse effects of aircraft noise, ensure that people and facilities are not concentrated in areas susceptible to aircraft accidents, and ensure that no structures or activities adversely affect navigable airspace. 12-116 Resolution No. 2024- Page 6 of 9 Section 2.1.1 of the AELUP sets forth the CNEL standards, and Sections 3.2.3 and 3.2.4 of the AELUP define the noise exposure in the 60 dBA to 65 dBA CNEL noise contour (Noise Impact Zone 2) as " Moderate Noise Impact" and in the 65 dBA to 70 dBA CNEL noise contour (Noise Impact Zone 1) as "High Impact." Section 3, Table 1 (Limitations on Land Use Due to Noise) of the AELUP identifies residential uses as "conditionally consistent" within the 60 dBA to 65 dBA CNEL noise contour and "normally inconsistent" within the 65 dBA to 70 dBA CNEL noise contour. However, residential uses are not outright prohibited. Instead, Section 3.2.3 of the AELUP requires the residential uses be developed with advanced insulation systems to bring the sound attenuation to no more than 45 dBA within the interior of the building. In addition, residential uses within the 65 dBA CNEL noise contour area are. required to be " indoor -oriented" to preclude noise impingement on outdoor living areas. The Project is located within the updated 60 dBA CNEL contour, consistent with the approved 6th Cycle Housing Element Implementation Noise -Related Amendments. Additionally, the Project has been conditioned to provide an acoustical report which describes the best design features of the structure that will satisfy noise standards, be attenuated to provide a maximum interior noise level of 45 dBA and provide advanced air filtration systems to promote cleaner airwithout the opening of windows. These conditions of approval mitigate noise issues for the Project and is consistent with the 45 dBA interior noise standards of the AELUP. B. The Project is consistent with the safety standards of the AELUP. Section 2.1.2 (Safety Compatibility Zones) of the AELUP sets forth zones depicting which land uses are acceptable in various portions of JWA environs. Allowed uses in Safety Zone 6 include residential and most nonresidential uses, excepting outdoor stadiums and similar uses with very high intensities. Uses that should be avoided include children's schools, large day-care centers, hospitals, and nursing homes. Risk factors associated with Safety Zone 6 generally include a low likelihood of accident occurrence. The Project is located within Safety Zone 6 and residential uses are allowed in that zone. The City's General Plan Safety Element Policy S 8.6 demonstrates that the City acknowledges the importance of the JWA Safety Zones in providing, "S 8.6 John Wayne Airport Traffic Pattern Zone - Use the most currently available John Wayne Airport (JWA) Airport Environs Land Use Plan (AELUP) as a planning resource for evaluation of land use compatibility and land use intensity in areas affected by JWA operations. In particular, future land use decisions within the existing JWA Clear Zone/Runway Protection Zone (Figure S5) should be evaluated to minimize the risk to life and property associated with aircraft operations." 12-117 Resolution No. 2024- Page 7 of 9 The Project complies with the policies and regulations within the JWA Airport Planning Area and follows the safety standards of the AELUP as it is located within Safety Zone 6 and is not within the JWA Clear Zone/Runway Protection Zone. C. The Project is consistent with the height standards of the AELUP. Section 2.1.3 (Building Height Restrictions) of the AELUP sets forth building height restrictions. Section 2.1.3 provides that ALUC consider only one standard as provided in 14 Code of Federal Regulations ("C.F.R.") Part 77 (also referred to as the Federal Aviation Regulations). Section 2.1.3 provides that the Federal Aviation Regulations are the only definitive standard available and the standard most generally used. Section 2.1.3 identifies the FAA as the single authority for analyzing project impacts on airport or aeronautical operations, or navigational -aid siting, including interference with navigational aids or published flight paths and procedures along with reporting results of such studies and project analysis. The FAA conducted an aeronautical study for the Project consistent with the Federal Aviation Regulations. The FAA issued a Determinations of No Hazard to Air Navigation on August 21, 2023, thereby finding the development does not exceed obstruction standards and would not be a hazard to air navigation. The FAA reviewed the proposed building height of the Project assuming an existing site of 51 feet, with a proposed building that is 81 feet above ground level, and 132 feet above mean sea level ("AMSL"). The FAA further found that marking and lighting of the Project are not necessary for aviation safety. Any increase in height of the structure above the proposed 81-foot building height would require a revised Determination of No Hazard to Air Navigation from the FAA. Additionally, there are other buildings in the vicinity of the Project that are taller than the Project including the building located at 1500 Quail Street that is approximately 144 feet AMSL. 12-118 Resolution No. 2024- Page 8 of 9 Section 2: Environmental Impact Report Addendum No. 8 was prepared for the Project in compliance with the California Environmental Quality Act ("CEQA") set forth in California Public Resources Code Section 2100 et seq.; CEQA's implementing regulations set forth in CCR Title 14, Division 6 Chapter 3 ("CEQA Guidelines") and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act) to ensure that the Project will not result in new or increased environmental impacts. On the basis of the entire environmental record, the Project will not result in any new significant impacts that were not previously analyzed in the PEIR for the General Plan 2006 Update (SCH No. 2006011119) and the City of Newport Beach Housing Element Initial Study/Negative Declaration. The potential impacts associated with this Project would either be the same or less than those described in the PEIR and the City of Newport Beach Housing Element Initial Study/Negative Declaration. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in the PEIR or the City of Newport Beach Housing Element Initial Study/Negative Declaration, nor has any new information regarding potential for new or more severe significant environmental impacts been identified. The City Council finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger. Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 4: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 12-119 Resolution No. 2024- Page 9 of 9 Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 9ch day of April, 2024. Will O'Neill Mayor ATTEST: Lellani 1. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE A4roh C. Harp City Attorney Attachment(s): Exhibit "A" — Airport Land Use Commission Inconsistency Determination dated January 23, 2024 Exhibit 'B" — Comment Letter from Airport Land Use Commission dated March 12, 2024 Exhibit "C" — Comment Letter from State Department of Transportation Aeronautics Program dated March 15, 2024 12-120 Exhibit "A" Airport Land Use Commission Inconsistency Determination dated January 23, 2024 12-121 !4L January 23, 2024 AIRPORT LAND USE COMMISSION FOR ORANGE COUNTY 3160 Airway Avenue • Costa Mesa, California 92626 - 949.252.5170 fax: 949.252.6012 David Lee, Senior Planner City of Newport Beach Community Development 100 Civic Center Drive Newport Beach, CA 92660 Subject: ALUC Determination for The Residences at 140t Quail Street, General Plan (Land Use) Amendment and Newport Place Planned Community Amendment Dear Mr. Lee: During the public meeting held on January 18, 2024, the Airport Land Use Commission (ALUC) for Orange County considered the subject item. The matter was duly discussed, and with a 6-0 vote, the Commission found The Residences at 1401 Quail Street, General Plan (Land Use) Amendment and Newport Place Planned Community Amendment to be Inconsistent with the Airport Environs Land Use Plan for John Wayne Airport (AELUP_for JWA) per: 1. Section 2.1.1 Aircraft Noise that the "aircraft noise emanating from airports may be incompatible with general welfare of the inhabitants within the vicinity of an airport." 2. Section 2.1.2 Safety Compatibility Zones in which "the purpose of these zones is to support the continued use and operation of an airport by establishing compatibility and safety standards to promote air navigational safety and to reduce potential safety hazards for persons living, working or recreating near JWA." 3. 3.2.1 General Policy (in pertinent part): "Within the boundaries of the AELUP, any land use may be found to be Inconsistent with the AELUP which: (1) Places people so that they are affected adversely by aircraft noise, [or] (2) Concentrates people in areas susceptible to aircraft accidents..." You may contact us at (949) 252-5170 or at aluc_ info u,ocair.com if you have any questions regarding this proceeding. Sincerelry, 14 Lea U. Choum P, Executive Officer cc: ALUC 12-122 Exhibit "B" Comment Letter from Airport Land Use Commission dated March 12, 2024 12-123 DocuSign Envelope R C9F60E46-3286-4E70-A43A-1482966AA3B7 i AIRPORT LAND USE COMMISSION ORANGE I COUNTY FOR ORANGE COUNTY �4LUG 3160 Airway Avenue • Costa Mesa, California 92626 - 949.252.5170 fax: 949.252.6012 March 12, 2024 David Lee. Senior Planner Community Development Department City of Newport .Beach 100 Civic Center Drive Newport Beach, CA 92660 Subject: Response to Notice of Intent to Overrule the Airport Land Use Commission Determination Regarding the Residences at 1401 Quail Street Dear Mr. Lee, We are in receipt of the City of Newport Beach (City) letter dated February 14, 2024, and Citv Council Resolution No. 2024-10 notifying the Airport Land Use Commission (ALUC) for Orange County of the City's intent to overrule the ALUC's inconsistency determination (in the proposed Residcnces at 1401 Quail Street. In accordance with Section 21676 of the Public Utilities Code, the ALUC submits the following comments addressing the proposed overrule findings for the above -referenced project. These comments shall be included in the public record of a final decision to overrule the ALUC. Please be advised that California Public Utilities Code (PUC) Section 21678 states: "With respect to a publicly owned airport that a public agency does not operate; if the public agency pursuant to Section 21676, 21676.5, or 21677 overrules a commission's action or recommendation, the operator of the airport shall be immune from liability for damages to property or personal injury caused by or resulting directly or indirectly from the public agency's decision to overrule the commission's action or recommendation." Background On January 18, 2024, the ALUC for Orange County found the proposed Residences at 1401 Quail Street to be inconsistent with the Aby7or-1 EnOrons Land Use Plan (AELUI').firr Jahn iKayne ,4hport (JWA) on a 6-0 vote. The inconsistent finding was based on AELUP Sections 2.1.1,2.1.2,and 3.2.1. Pursuant to Section 1.2 of the AELUP for JWA, the purpose of the AELUP is to safeguard the general welfare of the inhabitants within the vicinity of the airport and to ensure the continued operation of the airport. Specifically, the AELUP seeks to protect the public front the adverse effects of aircraft noise to ensure that people and facilities are not concentrated in areas 12-124 DocuSign Envelope ID: C9F60E46-3286-4E70-A43A-1482986AA3B7 Residences at 1400 Quail Street Overrule Response March 12, 2024 I'agc 2 susceptible to aircraft accidents, and to ensure that no structures or activities adversely affect navigable airspace. Additionally, Section 2.1.4 of the AELUP for JWA and PUC Section 21674 charge the Commission to coordinate at the local level to ensure compatible land use planning. The City's proposed project would place residential uses within the 65 dBA Community Noise Equivalent Levels (CNEL) and Safety Zones 4 and 6, which would result in exposure to significant risks, noise and aircraft overflight, the City's proposed actions are inconsistent with the AELUP. ALUC has the following additional comments regarding the findings and facts of support included in Resolution No. 2024-10. Response to Finding and Fact in Support A - Regarding Noise Standards: Pursuant to AELUP Section 2.1.1, "... aircraft noise emanating from airports may be incompatible with the general welfare of the inhabitants within the vicinity of an airport...'' As noted in the City's discussion, the CNEL standards are set forth in the AELUP. As part of the review of tile proposed Residences at 1401 Quail Street, it was noted that the project site is within the JWA 65 dBA noise contour. The ALUC believes that the proposed residential uses would be highly affected by airport noise due to the close proximity to the airport and that the past and current land use designation of General Commercial Office (CO-G) is the appropriate designation for this site. Finding of Fact A states that "the project is located within the updated 60 dBA CNEL contour consistent with the approved 6`h Cycle Housing Element Implementation Noise -Related Amendments." This "updated 60 dBA CNEL contour" was included as part of the Housing Element Implementation/Noise Related Amendments which was found inconsistent by the ALUC on August 17, 2023 and overruled by the City on November 14, 2023. With the 2023 Noise Amendments, the City replaced the existing noise contours which are currently consistent with the adopted AELUP for JIiVA, with more narrow noise contours which were included in 2014 Settlement Agreement EIR 617, which did not provide an analysis of the potentially significant impacts of placing future residential uses within the 65 dB CNEL. contour. As stated in our December 5, 2023 letter to you, and in the August 17, 2023 ALUC Staff Report for Item 1: Housing implementation/Noise-Related Amendments, "the AELUP continues to reflect the EiR SOS noise contours for purposes of determining iMether a project is consistent with the AELUP noise policies and provisions. Therefore, for purposes of the AELUP consistency analysis, the City and ALUC are required to utilize the noise contours that are provided in the AELUP. Neither the City nor the ALUC can provide a consistency analysis based on different and updated noise contours unless and until those noise contours have been included in the AELUP. Rather, any submittal must be based on the policies and contours currently in the existing AEL UP. " The proposed Housing Element Implementation - Noise Related Amendments would allow residential uses which are not suitable and would subject the future residents to excessive 12-125 DocuSign Envelope ID: C9FSOE46-3286-4E70-A43A-1482986AA3B7 Residences at 1400 Quad Sireci t)vcrrule Response March 12. 2024 Pa-e 3 noise regardless of which noise contours are utilized. The ALUC has historically found residential uses in the vicinity of JWA to be inconsistent with the AELUP for JIIV.4. Response to Fact in Support B - Regarding Safety: Pursuant to AELUP Section 2.1.2, "[slafety and compatibility zones depict which land uses are acceptable and which are unacceptable in various portions of airport environs. The purpose of these zones is to support the continued use and operation of an airport by establishing compatibility and safety standards to promote air navigational safety and to reduce potential safety hazards for persons living, working or recreating near .1WA." The proposed project is located in Safety Zone 6 — Traffic Pattern Zone. According to the California Airport Land Use Planning Handbook, noise and overflight should be considered in Safety Zone 6. Flight tracks for the property were included in the ALUC staff report which show a high number of flights over the proposed project site. Considering the proposed density, proximity to JWA and the number of flights over the property, this project is an inappropriate use for the site. Response to Fact in Su ort C - Regarding "Intent of the AELUP": By virtue of being clearly stated in AEL UP for JIK,4 Sections 1.2 "Purpose and Scope" and 2.0 "Planning Guidelines," the ALUC understands the complex legal charge to protect public airports from encroachment by incompatible land use development, while simultaneously protecting the health, safety and welfare of citizens who work and live in the airport's environs. To this end, and as also statutorily required, ALUC proceedings are benefited by several members having expertise in aviation. Based upon careful consideration of all information provided, and input from ALUC members with expertise in aviation, the ALUC unanimously found the proposed Residences at 1401 Quail Street to be inconsistent with the fI EL UP. for JWA. We urge the City Council to take ALUC's concerns into consideration in its deliberations prior to deciding whether to overrule ALUC. Thank you for the opportunity to provide these comments. Sincerely, UocuSigned [ by: M av &ht&A'tn. 09C77A2D7F24488... Mark Monin Vice -Chairman cc: Airport Land Use Commission for Orange County Jonathan Huff, Caltrans/Division of Aeronautics 12-126 Exhibit "C" Comment Letter from State Department of Transportation Aeronautics Program dated March 15, 2024 12-127 STATE OF CALIFORNIA—CALIFORNIA STATE TRANSPORTATION AGENCY Gavin Newsom, Governor DEPARTMENT OF TRANSPORTATION AERONAUTICS Program- M.S. #40 1 120 N STREET P. O. BOX 942874 SACRAMENTO, CA 94274-0001 PHONE (916) 654-4959 FAX (916) 653-9531 TTY 711 www.dot.co.gov March 15, 2024 David Lee City of Newport Beach Community Development Department 100 Civic Center Drive Newport, CA 92660-3267 Dear Mr. Lee: Dear Mr. Lee d Moking Conservation a California Way of Life. Electronically Sent dlee@newportbeachca.gov One of the goals of the California Department of Transportation (Caltrans), Division of Transportation Planning, Aeronautics Program (Aeronautics), is to assist cities, counties, and Airport Land Use Commissions (ALUC) in the development and implementation of policies that protect the safety and general welfare of their communities where aeronautical activities take place. We encourage collaboration with our partners in the planning process and thank you for including us in the review of the proposed overrule of the Orange County ALUC. On February 13, 2024, the Aeronautics received an email that included City Resolution No. #2024-10 declaring an intent to overrule the ALUC's January 18, 2024, inconsistency determination for the proposed Residences at 1401 Quail Street Project (Project) with the Airport Environs Land Use Plan for John Wayne Airport (ALEUP for JWA)). The Project includes the construction of 67 for -sale condominium units and a 146-corner space parking structure at the northwest of Quail Street and Spruce Street. Implementation of the proposed project would require demolition of the existing 22,956- square-foot office building and surface parking on the 1.71-acre site. The proposed multi- unit residential building consists of six stories including one level of on -grade parking and one level of subterranean parking. The building height would be approximately 132 feet above ground level, including architectural elements, parapet, rooftop mechanical equipment, and roof access. The proposed Project, Lot 1 Parcel 1 PMB 44 / 38, is in the airport influence area of the John Wayne Airport at 18601 Airport Way, Santa Ana, CA 92707. The approximate distance from the runway nearest to the Project is 0.41 miles, or 2,156 feet. Aeronautics shares the same concerns as the ALUC for this Project as notes below: "Provide a safe, sustainable, integrated, and efficient transportation system to enhance California's economy and tivobiiity" 12-128 Ms. Liz Westmoreland March 15, 2024 Page 2 l . Section 2.1.1 Aircraft Noise that the "aircraft noise emanating from airports may be incompatible with general welfare of the inhabitants within the vicinity of an airport." 2. General Policy (in pertinent part): "Within the boundaries of the AELUP, any land use may be found to be Inconsistent with the AELUP which: (1) Places people so that they are affected adversely by aircraft noise, [or] (2) Concentrates people in areas susceptible to aircraft accidents ... " Aeronautics also share's the same concerns as Charlene V. Reynolds Director of John Wayne Airport in her letter to the city of Newport Beach dated October 9, 2023, regarding "Newport Beach Housing Element Noise -Related Amendments". Specifically, the comments from this letter noted below: "The City's proposed Housing Element Noise Update has the potential to increase incompatible land use within the 65 dB CNEL noise contour, which could result in significant land use compatibility, noise, safety, and overflight impacts and additional encroachment of incompatible land uses within the airport environs ... In addition, the City's proposed Housing Element Noise Update is inconsistent with the 2006 Cooperative Agreement entered into between the City and the County. Revisions are required to the Update to remove any residential uses within the 65 and 60 dB CNEL noise contours to ensure continued compliance with this important Agreement." Aeronautics strongly encourages the City to work with both the ALUC and the Airport to address their concerns and work together to ensure the development of this area is one that is consistent with the ALEUP for JWA. It should also be noted that new laws regarding the provision of housing do not supersede existing laws, including Section 21670 of the California Public Utilities Code, which requires counties to establish ALUCs and compatibility plans to protect public health, safety, and welfare. PUC Section 21675.1(f) provides: If a city or county overrules the commission pursuant to subdivision(d) with respect to a publicly owned airport that the city or county does not operate, the operator of the airport is not liable for damages to property or personal injury resulting from the city's or county's decision to proceed with the action, regulation, or permit. Pursuant to PUC Section 21676(a), the Division and ALUC comments shall be included in the public record of any decision to overrule the ALUC. If you have questions or we may be of further assistance, please contact me at Vincent.Ray@dot.ca.gov or I can be reached at (916) 907-2219. "Provide a safe, sustainable, integrated, and efficient transportation system to enhance California's economy and livability" 12-129 Ms. Liz Westmoreland March 15, 2024 Page 2 Sincerely, Vincent Ray Aviation Planner c: Matt Friedman, Senior Transportation Planner, Division of Aeronautics Julie Fitch, Planner, Airport Land Use Commission for Orange County Lan Zhou, Deputy District Director, Caltrans District 12 "Provide a safe, sustainable, integrated, and efficient transportation system to enhance California's economy and livability" 12-130 Attachment F Planning Commission Staff Report (without attachment) 12-131 PO cgL'FOP- SUBJECT: CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT December 21, 2023 Agenda Item No. 2 Residences at 1401 Quail Street (PA2023-0040) ■ General Plan Amendment ■ Planned Community Development Plan Amendment ■ Major Site Development Review ■ Vesting Tentative Tract Map ■ Affordable Housing Implementation Plan ■ Development Agreement ■ Environmental Impact Report Addendum SITE LOCATION: 1401 Quail Street APPLICANT: Intracorp Homes OWNER: Newport Place Investment Company PLANNER: David Lee, Senior Planner 949-644-3225 PROJECT SUMMARY The Residences at 1401 Quail Street includes 67 for -sale condominium units and a 146- space parking structure. The project is located in the Newport Place Planned Community, and at the northwest corner of Quail Street and Spruce Street in the Airport Area. Implementation of the proposed project would require demolition of the existing 22,956- square-foot office building and surface parking on the 1.71-acre site. RECOMMENDATION 1) Conduct a public hearing; 2) Find that potential environmental impacts have been previously mitigated through the implementation of the policies of the General Plan as evaluated in Program Environmental Impact Report for the 2006 General Plan Update (SCH No. 2006011119), and the City of Newport Beach Housing Element Initial Study/Negative Declaration (collectively, the PEIR); therefore, in accordance with Section 15164 of the California Environmental Quality Act (CEQA) Guidelines, an addendum to the previously adopted PEIR is the appropriate environmental documentation for the project; and 3) Adopt Resolution No. PC2023-047 (Attachment No. PC 1) recommending the City Council adoption of an Environmental Impact Report Addendum, and approval of General Plan Amendment, Planned Community Development Plan Amendment, 12-132 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 2 Major Site Development Review, Affordable Housing Implementation Plan, Tentative Vesting Tract Map and Development Agreement, for the Residences at 1401 Quail Street Project located at 1401 Quail Street (PA2023-0040). VICINITY MAP LOCATION ON -SITE GENERAL PLAN General Commercial Office CO-G ZONING Newport Place Planned CommunityPC11 CURRENT USE Office NORTH CO-G 11 PC11 Office SOUTH EAST CO-G =1 Mixed -Use Horizontal 2 MU-H2 PC11 PC11 Office Office / Vehicle Storage WEST CO-G PC11 Office 12-133 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 3 INTRODUCTION Project Setting The subject property is located in the Newport Place Planned Community (PC-11) and approximately 1.71 acres in size. The project site is rectangular in shape, located at the northwest corner of Quail Street and Spruce Street, and adjacent to office buildings to the north, west, and south, as well as a surface parking lot utilized by Fletcher Jones Motorcars to the east. The property to the south at the east corner of Bristol and Spruce (1300 Bristol Street) has been entitled for residential use and the office building that once occupied the site has been demolished. The abutting property to the south at 1400 Bristol was considered for residential development (Residences at 1400 Bristol Street) by the Planning Commission on December 7, 2023. The subject property is currently improved with a 22,956-square-foot office building and a surface parking lot. Project Description The applicant, Intracorp Homes, proposes to demolish the existing office building and associated surface parking and landscaping at the project site and construct 67 for -sale condominium units atop a 146-space parking structure (Project). The parking structure is located on the podium level as well as a subterranean gated level underneath. The base density allotted to the property, if the requested General Plan amendment is approved, would be 52 units. This density is based on the conversion of existing 22,956 square feet of office use, consistent with the City's adopted land use conversion factors to maintain traffic trip neutrality (Attachment No. PC 4), consistent with Land Use Element Policy LU 6.15.5. The applicant also proposes a 27.5% increase in density (15 units), pursuant to Government Code Section 65915 (Density Bonus Law) for a total of 67 residential units. The applicant's full project description is provided as Attachment No. PC 2 and shown on the plans on Attachment No. PC 6. The application consists of the following components: • General Plan Amendment — A request to change the existing General Plan Land Use Designation of the Property from CO-G (General Commercial Office) to MU-H2 (Mixed -Use Horizontal); Planned Community Development Plan Amendment — An amendment to the Newport Place Planned Community (PC-11) to include the Property within the Residential Overlay; • Major Site Development Review - A site development review in accordance with the Newport Place Planned Community (PC-11) and Section 20.52.80 (Site 12-134 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 4 Development Reviews) of the Newport Beach Municipal Code (NBMC), for the construction of the Project; • Tentative Vesting Tract Map — A Vesting Tentative Tract Map No. 19261 pursuant to Title 19 (Subdivisions) of the NBMC for condominium purposes of 67 dwelling units; • Affordable Housing Implementation Plan - A program specifying how the Project would meet the City's affordable housing requirements, in exchange for a request of 27.5% increase in density. The Applicant seeks four development standard waivers related to park land dedication, building setbacks, and building height, pursuant to Chapter 20.32 (Density Bonus) of the NBMC and Government Code Section 65915 (Density Bonus Law). The Applicant also seeks two development concessions related to the mix of affordable units and a waiver of a portion of the required park in -lieu fees, pursuant to Chapter 20.32 (Density Bonus) of the NBMC and Government Code Section 65915; • Development Agreement —A Development Agreement, between the Applicant and the City, pursuant to Sections 15.45.020.A.2.a (Development Agreement Required) of the NBMC, which would provide the Applicant with vested right to develop the Project for a term of 10 years and provide negotiated public benefits to the City; and • Addendum to the 2006 General Plan Update Program Environmental Impact Reports - Pursuant to the California Environmental Quality Act (CEQA), the Addendum addresses reasonably foreseeable environmental impacts resulting from the Project. Project Components: Residential Development The proposed multi -unit residential building is designed as a "podium style" structure that consists of five stories over one level of on -grade parking and one level of subterranean parking. The building height would be approximately 81 feet, including architectural elements, parapet, rooftop mechanical equipment, and roof access. The 67 condominium units include 27 two -bedroom units and 40 three -bedroom units. The two -bedroom units would range from 1,304 to 1,963 square feet with four differing layouts. The three -bedroom units would range from 2,097 to 3,174 square feet in size. Of the 67 units, eight units would be for sale and restricted to low and very low-income households. Of the eight affordable units, six would be for very low-income households and two would be for low-income households. The remaining 59 units would be market - rate. While the overall unit mix would be 40% two -bedroom and 60% three -bedroom, all 12-135 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 5 the proposed affordable units are two -bedroom units. This does not meet the standards of Section 20.32.070 (Allowed Incentives or Concessions) of the NBMC that requires affordable units in a density bonus project to reflect the same range of unit types in the development as a whole. The applicant is requesting relief through a financial incentive from State Density Bonus Law, further discussed below. The proposed residential building is designed with a contemporary modern architectural style, intended to be reflective of the surrounding office setting. It is designed with a darker grey stucco finish on the podium and first floor levels and a white stucco finish for the floors above. The contrast in colors reduces the visual mass and bulk of the building and creates variations in the aesthetic design (Figure 1, below). Additionally, various units on each elevation are constructed with walkable decks with glass railings, adding additional aesthetic treatment to the building. The project's building mass is compatible with the surrounding office and residential developments. Figure 1: Rendering from Spruce Street Vehicular Access and Parking The project is designed with one vehicular access driveway in the approximate location of an existing entry on Spruce Avenue. The proposed driveway is 26 feet wide and connects to a roundabout at the end of the driveway to allow an adequate turning radius for emergency vehicles, as well as pick-up and drop-off for residents and visitors. The entry driveway also provides a direct access to six open-air parking spaces, which includes a van -accessible ADA space and two EV-charging spaces. Finally, the driveway leads to the project's two -level parking structure located on the first floor and has a gated ramp which accesses an additional subterranean parking level (Figure 2, below). 12-136 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 6 L -1 I GARAGE ENTRY r ■ � f"LOBBY < TV I. F' P'k ` . I. f r ■ a CLUBROOMM-ha �V8 Figure 2: Vehicular Accessway from Spruce Avenue The parking structure contains a total of 141 spaces, which includes 44 resident spaces and 15 guest spaces on the first floor, and 82 resident spaces on the subterranean level. Overall, the project provides 146 parking spaces, which is 2.18 spaces per unit (Table 1, below). Table 1: Parkina Summary Level Resident Guest Total Resident Disabled EV Guest Disabled EV Ground Level 22 1 21 11 1 8 64 Subterranean Level 51 1 30 0 0 0 82 Total 73 2 51 11 1 8 146 Total Resident: 126 Total Guest: 20 EV=Electric Vehicle 12-137 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 7 Project Amenities The proposed project includes a variety of private on -site recreation and amenities for residents and guests including: • Clubroom (2,186 SF, First Floor) • Outdoor Seating Area (1,309 SF, First Floor) • Outdoor Seating Lounge (1,139 SF, First Floor) • Pool Deck (2,103 SF, Second Floor) • Swimming Pool (728 SF, Second Floor) • Spa (132 SF, Second Floor) Construction Phasing The demolition and construction activities for the proposed project will be done over an approximate 21-month period. Demolition and construction activities are assumed to commence in September 2024 and conclude in October 2026. The applicant has submitted a draft construction management plan, subject to staff approval that will be finalized prior to the issuance of a building permit. Off -Site Improvements The Sewer Capacity Study prepared by Adams -Streeter Civil Engineers, Inc., dated October 20, 2023, concludes that there is insufficient sewer capacity in a downstream segment of pipe to support the project along with other approved and planned residential development in the area. Figure 3 below shows the location of a 435-foot long segment of pipe near the intersection of Newport Place and Dove Street where an existing 10-inch vitrified clay pipe (VCP) pipe will need to be replaced by a 12-inch main. As conditioned, the applicant will either replace the existing segment of pipe and be reimbursed by future applicants and the City or the City will replace the line and applicants will pay their fair share of the costs, unless the City chooses a different method to finance the cost of the improvement. No other off -site improvements other than typical utility connections are proposed or required as part of the project. 12-138 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 8 Off -site Sewer Line Segment Subject Property Figure 3: Off -Site Sewer Improvements DISCUSSION General Plan Amendment The subject property is located in the Airport Area and is currently designated as General Commercial Office (CO-G) by the General Plan Land Use Element. The applicant is requesting to change the land use designation of subject property, from the CO-G to Mixed -Use Horizontal 2 (MU-H2), which provides for a horizontal intermixing of uses that may include regional commercial office, multifamily residential, vertical mixed -use buildings, industrial, hotel rooms, and ancillary neighborhood commercial uses. The MU-H2 designation applies to a majority of properties in the Airport Area and allows a maximum of 2,200 residential units with 1,650 units as replacement of existing office, retail, and/or industrial uses at a maximum density of 50 units per net acre. Any eligible density bonus allowed by Government Code Section 65915 (State density bonus law) and NBMC Chapter 20.32 (Density Bonus) are not included in the 2,200 allowance or the 50 dwelling units per acre standard. Of 2,200 units, a total of 550 units are identified as additive units meaning they are not replacement units that would replace existing development and these units have been entitled and are not available. Presently, there are a total of 353 dwelling units remaining and available in the Airport Area, sufficient to support the project when considering the adjacent Residences at 1400 Bristol project. If both projects are approved, there would be 212 dwelling units available for future projects. Residential units approved, proposed and remaining within the MU-H2 designation of the Airport Area are listed in the table below. 12-139 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 9 Airport Area Residential Units Residential Development Allocation Base Units Density Bonus Units Project Totals with Density Bonus Replacement Units Additive Units Transferred Units Total Units General Plan Unit Limit (MU-H2) 1,650 550 0 2,200 Approved Projects Uptown Newport 632 290 -77 845 322 1,167 Newport Crossings 259 0 0 259 91 350 Newport Airport Village 329 0 0 329 115 444 Residences at 4400 Von Karman 260 0 260 52 312 Residences at 1300 Bristol 77 0 +77 154 39 193 Projects Under Review Residences at 1401 Quail 52 0 0 52 15 67 Residences at 1400 Bristol 89 89 229* Remaining Development Allocation 212 0 212 The General Plan Amendment (GPA) and the resulting land use change are compatible with the existing surrounding uses and planned land uses identified by the General Plan, because the project would introduce additional residential land uses in the Airport Area which includes a diverse mix of land uses including the gradual development of residential multifamily dwellings. Additionally, even with the conversion from CO-G to MU-112, the building will be compatible with adjacent commercial properties architectural style and pedestrian connectivity. Additional residential development would support commercial properties within the Airport Area. Furthermore, the GPA does not eliminate existing or future land uses to the overall detriment of the community given the subject property's size, location, and surrounding uses. The existing office buildings on -site were built in the 1970's and there are sufficient office facilities in the Airport Area to support the business needs of the community. The proposed change to allow residential uses would increase the City's housing stock including the provision of eight units that will be affordable to lower incomes. The General Plan contains a number of policies that provide for the orderly evolution of the Airport Area, from a business park, to a mixed -use district with cohesive residential villages integrated within the existing fabric of office, industrial, retail, and airport -related businesses. Residential opportunities are to be developed as clusters of residential villages centering on neighborhood parks and interconnected by pedestrian walkways. These would contain a mix of housing types and buildings that integrate housing with ground level convenience retail uses and would be developed at a sufficient scale to achieve a complete neighborhood. The draft Planning Commission resolution (Attachment No. PC 1) includes facts in support of a finding of consistency of relevant 12-140 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 10 Airport Area policies. Furthermore, the EIR Addendum includes a comprehensive analysis of all relevant General Plan policies. The project, as proposed, is consistent with all relevant General Plan policies. Charter 423 Analysis Charter Section 423 requires voter approval of any major General Plan amendment to the General Plan. A major General Plan amendment is one that significantly increases allowed density or intensity by 40,000 square feet of non-residential floor area, increases traffic by more than 100 peak hour vehicle trips (AM/PM), or increases residential dwelling units by 100 units. These thresholds apply to the total of increases resulting from the amendment itself, plus 80% of the increases resulting from other amendments affecting the same neighborhood (defined as a Statistical Area as shown in the General Plan Land Use Element) and adopted within the preceding 10 years. Council Policy A-18 (Guidelines for Implementing Charter Section 423) requires that proposed amendments to the General Plan be reviewed to determine if a vote of the Newport Beach electorate would be required. This policy includes a provision that all General Plan amendments be tracked as "Prior Amendments" for 10 years to determine if minor amendments in a single Statistical Area cumulatively exceed the thresholds indicated above. The property is within Statistical Area L4. There are no prior CPA's in Statistical Area L4 in the past 10 years. The GPA would change the land use designation only and not result in an increase in development. The 52 base dwelling units are already included in the MU-H2 development capacity of 2,200 units and no increase in allowed floor area is proposed. As a result, there is no increase in AM or PM peak hour trips and the amendment is not classified as a major amendment requiring a vote of the electorate should the City Council choose to approve the GPA. Should the pending General Plan Amendment request for 1400 Bristol Street be approved by the City Council before the subject application, there would be no requirement to require voter approval. Housing Element The Housing Element identifies adequate sites to accommodate its fair share allocation for the Sixth Cycle Housing Element to accommodate housing growth needs by income categories. The project site is ideal for the development of a residential project as it is identified as a housing inventory site. Figure B-3 of the Housing Element (below) displays the capacity and opportunity within the Airport Area which can help accommodate a portion of the City's RHNA. Ultimately, the project implements the certified Housing Element and aids the City in its goal to provide new housing opportunities. 12-141 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 11 Figure B-3: Airport Area Environs —Sites Inventory Site Inventory: Airport Area Environs LEGEND City 8oundary O 5th Cycle Sites Pipeline Projects Opportunity Sites Key Map Sf A Fee' 'WRTH 0 100 1 ON, Noise Element and Airport Environs Land Use Plan The Project is within the boundaries of the Airport Environs Land Use Plan (AELUP), therefore, the overseeing agency, Airport Land Use Commission (ALUC), must review the proposed GPA and PCDP Amendment pursuant to Government Code Section 65302.3 and Public Utilities Code Section 21676. The purpose of ALUC's review is to determine whether the Project is consistent with the AELUP prior to the City Council acting on the Project. Staff anticipates review of the project by the ALUC on January 18, 2024. The Project is consistent with the policies of the Noise Element and the safety standards of the AELUP. With respect to noise, the City adopted noise -related amendments to the General Plan Noise and Land Use Elements, the Newport Place Planned Community (PC-11) and Title 20 (Planning and Zoning) contours to implement the 6t" Cycle Housing Element. The Project is located within the updated 60 decibel (dBA) community noise equivalent level (CNEL) contour as shown in Figure N5 of the Noise Element of the General Plan, where residential development is allowed. As a result, the Project will be required to comply with the development standards set forth in Section 20.30.080(F) of the NBMC. The Project site is outside of any safety zones set forth in the AELUP. The AELUP includes noise contours from the 1985 Master Plan and the site is bisected by the 65 dBA CNEL noise contour. The AELUP indicates that housing within this noise contour would not be compatible, but it does not prohibit residential use. These outdated AELUP 12-142 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 12 noise contour maps do not reflect changes in aviation technology and current air traffic patterns. In other words, the noise contours do not reflect current and future noise contours and the site will not be subject to aircraft noise that exceeds 65 dBA CNEL under current approved conditions. The draft Planning Commission resolution (Attachment No. PC 1) includes facts in support of a finding of consistency of relevant Airport Area policies. Furthermore, the EIR Addendum includes a comprehensive analysis of all relevant General Plan policies. The project, as proposed, is consistent with all relevant General Plan policies. Tribal Consultation (SB-18) Pursuant to California Government Code Section 65352.3 (SB-18), a local government is required to contact the appropriate tribes identified by the Native American Heritage Commission (NAHC) each time it considers a proposal to adopt or amend the General Plan. If requested by any tribe, the local government must consult for the purpose of preserving or mitigating impacts to cultural resources. The City received comments from the NAHC indicating that 12 tribal contacts should be provided notice regarding the proposed amendment. The 12 tribal contacts were notified on March 15, 2023, and two tribes requested consultation within the 90-day period to request it. The City participated in consultations with the Gabrieleno Band of Mission Indians — Kizh Nation and the Juaneno Band of Mission Indians, Acjachemen Nation-Belardes. Based on consultation with the participating Native American Tribes, conditions of approval have been included to ensure that a proper monitoring program is in place during the Project's construction. Newport Place Planned Community (Zoning Code) Amendment The property is currently located within Industrial Site 3A and not within the Residential Overlay of PC-11. A request to allow the subject property to be added to the Residential Overlay of PC-11 is proposed in order to accommodate the proposed residential development. The Residential Overlay applies to most sites in PC-11 not within the outdated 65 dBA CNEL noise contour that was recently changed by the City. The Overlay currently applies to the sites across Spruce Street approximately 85 feet away including the site at 1300 Bristol that has been approved but not yet constructed as a residential apartment project. The project would be consistent with the anticipated future development of 1300 Bristol as well other adjacent properties within the Overlay. The Overlay allows for multiple residential development as a stand-alone use provided that it includes a minimum of 15% of the base density for lower income households. The project provides this minimum number of affordable units by provide eight dwelling units as affordable for low income households (52 base units x 15% = 7.8 = 8 units). The Overlay also contains development standards for multi -residential development, including density, height, setbacks, parking, signage, airport noise compatibility, amenities, and landscaping. The Overlay requires the density for a residential development to be between 30 and 50 dwelling units per acre. The Project includes 52 base units, resulting 12-143 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 13 in a base density of 30 dwelling units per acre, exclusive of the density bonus units. With density bonus, there is a total of 67 dwelling units, resulting in an overall density of 39 units per acre. Both the density with and without the density bonus units are consistent with the density requirement'. Additionally, the Overlay requires that residential dwellings are to be permitted as replacement of existing nonresidential uses, and the number of peak hour trips generated by the Project is not to exceed the number of trips of the underlying permitted nonresidential use. A detailed discussion of the proposed project and conversion of existing office space is provided in the prior sections. Although the Project includes waivers or reductions of the development standards specified in the Overlay pertaining building height and setbacks, the overall intent of providing residential opportunities in the proposed Residential Overlay are being met. Site Development Review Residential development pursuant to the Residential Overlay of PC-11 requires a site development review, consistent with NBMC Section 20.52.080 (Site Development Review). In accordance with Section 20.52.080(F) (Site Development Reviews — Findings and Decision), the Planning Commission may approve or conditionally approve a site development review application, only after first finding that the proposed development is: 1. Allowed within the subject zoning district, 2. In compliance with all of the applicable criteria identified in 20.52.080(C)(2)(c) (Site Development Reviews — Application Review) below: i. Compliance with this section, the General Plan, this Zoning Code, any applicable specific plan, and other applicable criteria and policies related to the use or structure; ii. The efficient arrangement of structures on the site and the harmonious relationship of the structures to one another and to other adjacent developments; and whether the relationship is based on standards of good design; iii. The compatibility in terms of bulk, scale, and aesthetic treatment of structures on the site and adjacent developments and public areas; iv. The adequacy, efficiency, and safety of pedestrian and vehicular access, including drive aisles, driveways, and parking and loading spaces; V. The adequacy and efficiency of landscaping and open space areas and the use of water efficient plant and irrigation materials; and vi. The protection of significant views from public right(s)-of-way and compliance with Section 20.30.100 (Public View Protection). 3. Not detrimental to the harmonious and orderly growth of the City, nor endangers, jeopardizes, or otherwise constitutes a hazard to the public convenience, health, ' The total density of a project including density bonus units would not need to meet a local density standard. 12-144 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 14 interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed development. The project seeks to implement the proposed MU-H2 General Plan designation and Residential Overlay of PC-11 by providing 67 new residential units to an existing major employment center (the Airport Area and Irvine Business Complex), including setting aside eight residential units for low-income households. The project is also in furtherance of the certified Housing Element as the site is an identified housing opportunity site. The proposed project plans (Attachment No. PC 6) show the configuration of the proposed residential building, including a driveway and roundabout accessed from Spruce Street, location of open spaces, landscaping, and private amenities. The building is proposed to be six stories tall and approximately 81 feet in height including all architectural elements and rooftop mechanical equipment. As previously discussed, the project is designed with a darker grey stucco finish on the podium and first floor levels and a white stucco finish for the floors above. The contrast in colors reduces the visual mass and bulk of the building and creates variations in the aesthetic design. The project's building mass and scale are similar to the nearby existing office developments in the Airport Area and includes pedestrian connectivity to public sidewalks along Quail Street and Spruce Street and pedestrian -scale landscaped areas around the apartment building. The contemporary architectural style and scale of the project would be compatible with the surrounding office buildings and future development within the Newport Place planned community. The adjacent property at 1451 Quail Street is developed with an approximately 37-foot tall office building. The 1400 Quail Street property, located directly across Quail Street, is developed with an approximately 30-foot tall office building. This is consistent with the policy as there are lower structures surrounding the Project, which is taller. Furthermore, a 78-foot tall residential apartment building has been approved to be constructed at 1300 Bristol Street, which is located across Spruce Street. Finally, 1400 Bristol, which is the adjacent property, is proposing a 229-unit apartment project that is 85 feet in height. The project includes 146 onsite parking spaces located on a podium level parking structure which includes a subterranean gated parking structure underneath. The project includes adequate onsite parking exceeding the minimum required residential standard pursuant to Density Bonus Law. The excess parking is in recognition of current transit and market demands that necessitate additional parking. NBMC Section 20.40.040 (Off -Street Parking Spaces Required), identifies that multi- family developments with more than four dwelling units are required to provide two covered parking spaces per unit and 0.5 space per unit for guest parking. Based on these criteria, the proposed Project, if it were not a project requesting consideration pursuant to Density Bonus Laws, would be required to provide 134 resident parking spaces and 34 guest parking spaces for a total of 168 parking spaces. As provided for in Government Code Section 65915 Density Bonus Law and NBMC Section 20.32.040 (General 12-145 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 15 Requirements) Parking Requirements in Density Bonus Projects, the applicant is requesting a reduction in the number of required parking spaces for the project. NBMC Section 20.32.040 (General Requirements), reflects the language of Government Code Section 65915 provision of 1.5 parking spaces for units with two to three bedrooms. Parking for the project is based on application of regulatory standards for density bonus projects and under these regulatory standards, the proposed Project is be required to provide a minimum of 101 parking spaces. The project as presently designed includes 146 parking spaces. The parking ratio of the proposed project would be 2.18 parking spaces per dwelling unit inclusive of guest parking, which exceeds the minimum parking requirement specified by the Density Bonus parking requirements. The project site does not have the potential to obstruct public views from identified public view points and corridors, as identified on General Plan Figure NR 3 (Coastal Views), to the ocean, bay, harbor, or other scenic or historical resources due to the location of the project site. The proposed building will be highly visible along the Bristol Street corridor and it will be seen from State Route 73, but these areas are not considered scenic. As discussed above, the project has been designed to ensure that potential conflicts with surrounding land uses are minimized to the extent possible to maintain a healthy environment for both businesses and residents by providing an architecturally pleasing project with articulation and building modulations to enhance the urban environment. The proposed project is consistent with the General Plan as it would integrate residential uses into the existing surroundings, which are primarily nonresidential, as anticipated by the General Plan. Staff believes facts to support the required findings exist to approve the Site Development Review, and they are included in the attached draft resolution for approval (Attachment No. PC 1). Vesting Tentative Tract Map The applicant is requesting a vesting tentative tract map for condominium purposes. In accordance with Section 19.12.070 (Required Findings for Action on Tentative Maps (66412.3, 66473 et seq)) of the Newport Beach Municipal Code, and the following finding and facts in support of such findings are set forth: 1. That the proposed map and the design or improvements of the subdivision are consistent with the General Plan and any applicable specific plan, and with applicable provisions of the Subdivision Map Act and this Subdivision Code; 2. That the site is physically suitable for the type and density of development; 3. That the design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage nor substantially and avoidably injure fish or wildlife or their habitat. However, notwithstanding the foregoing, the decision - making body may nevertheless approve such a subdivision if an environmental impact report was prepared for the project and a finding was made pursuant to Section 21081 of the California Environmental Quality Act that specific economic, 12-146 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 16 social or other considerations make infeasible the mitigation measures or project alternatives identified in the environmental impact report, 4. That the design of the subdivision or the type of improvements is not likely to cause serious public health problems; 5. That the design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of property within the proposed subdivision. In this connection, the decision -making body may approve a map if it finds that alternate easements, for access or for use, will be provided and that these easements will be substantially equivalent to ones previously acquired by the public. This finding shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to the City Council to determine that the public at large has acquired easements for access through or use of property within a subdivision; 6. That, subject to the detailed provisions of Section 66474.4 of the Subdivision Map Act, if the land is subject to a contract entered into pursuant to the California Land Conservation Act of 1965 (Williamson Act), the resulting parcels following a subdivision of the land would not be too small to sustain their agricultural use or the subdivision will result in residential development incidental to the commercial agricultural use of the land, 7. That, in the case of a "land project" as defined in Section 11000.5 of the California Business and Professions Code: (1) There is an adopted specific plan for the area to be included within the land project; and (2) the decision making body finds that the proposed land project is consistent with the specific plan for the area; 8. That solar access and passive heating and cooling design requirements have been satisfied in accordance with Sections 66473.1 and 66475.3 of the Subdivision Map Act, 9. That the subdivision is consistent with Section 66412.3 of the Subdivision Map Act and Section 65584 of the California Government Code regarding the City's share of the regional housing need and that it balances the housing needs of the region against the public service needs of the City's residents and available fiscal and environmental resources; 10. That the discharge of waste from the proposed subdivision into the existing sewer system will not result in a violation of existing requirements prescribed by the Regional Water Quality Control Board, and 11. For subdivisions lying partly or wholly within the Coastal Zone, that the subdivision conforms with the certified Local Coastal Program and, where applicable, with public access and recreation policies of Chapter Three of the Coastal Act. The tentative vested tract map is required for the separate sale of each condominium unit. The map does not physically divide the lot into individual parcels. The Public Works Department has reviewed the proposed vesting tentative tract map and determined it is consistent with the Title 19 and applicable requirements of the Subdivision Map Act. Additionally, all construction for the project has been conditioned to comply with all Building, Public Works, and Fire Codes, which are in place to prevent serious public health problems. 12-147 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 17 Affordable Housing Implementation Plan The applicant has prepared a draft Affordable Housing Implementation Plan (AHIP), dated November 28, 2023 (Exhibit C of Attachment No. PC 1) to illustrate compliance with the affordable housing requirements of the Residential Overlay of Newport Place Planned Community and density bonus allowances pursuant Government Code Section 65915-65918 (Density Bonus Law) and NBMC Chapter 20.32 (Density Bonus Code). Consistent with the affordable housing requirements of the Residential Overlay, 15% or eight units of the project's 52 base condominium units would be set aside as affordable units to low or very low-income households. Per Section 20.32.140 (Occupancy and Resale of Ownership Units) of the NBMC, if a low or very low-income unit is initially occupied by a low or very low-income household and offered at an affordable housing cost, the unit will be subject to an equity sharing agreement, unless sold to a nonprofit housing corporation. Upon resale, the seller of the unit retains the value of any improvements, the downpayment, and the seller's proportionate share of the appreciation and the City recaptures any initial subsidy and its proportionate share of the appreciation. The City's share is returned to be used to support affordable housing development in the future. Incentive/Concession Requests: In addition to the 15 density bonus units, the project is entitled to receive one incentive or concession that would result in identifiable, financially sufficient, and actual cost reductions. In this case, the applicant requests two of the following incentives: 1. Affordable Unit Mix: The applicant requests to the City Council to approve a development incentive for the proposed affordable unit mix that does not meet NBMC Section 20.32.070 (Allowed Incentives or Concessions). This section requires affordable units in a density bonus project reflect the same range of unit types in the residential development as a whole. In this case, the Project provides all eight affordable units as two -bedroom units, whereas the overall unit mix includes 27 two -bedroom units (40%) and 40 three -bedroom units (60%). There are no affordable units that are three -bedroom units. Granting this incentive will result in identifiable, financially sufficient, and actual project cost reductions for the Project. This incentive has been requested and granted in all previous projects where density bonus has been requested. The granting of this incentive is mandatory. 12-148 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 18 Table 2: Affordable Unit Mix Unit Type Total Units Percent of Total Percent of Total Units Affordable Total Units Affordable Units 2 Bedroom 27 40% 8 100% 3 Bedroom 40 60% 0 0% Total 193 100% 24 100% 2. Waiver of a portion of park in -lieu fee: The applicant requests that the City Council approves a partial waiver of the in -lieu park dedication fee, which is required by the General Plan Land Use Element Policy 6.15.13. The policy requires residential development to provide a public park equal to 8% of the gross land area of the development, or a minimum one-half acre, whichever is greater, to be provided. Since the 1.71-acre project site is too small to feasibly accommodate the physical dedication of the park, the Policy requires an in -lieu fee paid to the City for the acquisition and improvement of a neighborhood park to serve the Airport Area. The applicant is requesting to use a second incentive to waive a portion of the fee in order to provide cost reductions and make the Project financially feasible. This incentive has been granted once previously with the 1300 Bristol Street project and it is not mandatory pursuant to State Density Bonus law. Financial contributions through direct payments, fee waivers, or the waiver of land dedications are not mandatory. The portion of the fee the applicant does pay will help off -set a portion of the recreational impact of the project. Development Standard Waiver Requests. - In addition to the density bonus units, parking reductions, and financial incentives and concessions, the project is entitled to receive unlimited waivers or reductions of development standards if they would physically prevent the project from being built at the permitted density. In this case, the Project applicant requests a waiver of the following development standards: 1. Park dedication requirements (two waivers): a. General Plan Land Use Policy LU 6.15.13 requires a public park equal to 8% of the gross land area of the development, or a minimum one-half acre, whichever is greater, be provided. In this case, the project is required to provide a half -acre public park. As noted, the 1.71-acre project site is too small to feasibly accommodate the required half -acre park and if it were dedicated, the resulting smaller site could not physically accommodate the proposed affordable housing development. The applicant is requesting to pay the in -lieu fee for the half -acre park, as required by the Policy if approved by the City. This land dedication waiver has been granted twice 12-149 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 19 previously with the approval of the Newport Airport Village and the Residences at 1300 Bristol Street projects. b. Section 19.52.040 (Parkland Standard) of the NBMC applicable only to subdivisions including condos requires park dedication at a ratio of five acres per thousand population due to the proposed vesting tentative tract for residential condominium purposes. Per the latest census data, the average persons per household is 2.2 persons, which results in 147.4 persons and a 0.74-acre park dedication requirement. The parkland dedication requirement does not permit the payment of in -lieu fees. The Property is 1.71 acres in size which is too small to feasibly accommodate a park of minimum one-half acre in size and it can be waived as a Density Bonus development standard. 2. Street setbacks: The Newport Place Planned Community (PC-11) requires street setbacks of 30 feet from property lines. In this case, 30-foot setbacks along Quail Street and Spruce Street would substantially decrease the development of the footprint of the Project. The Project is designed with a 11-foot setback from Spruce Street and a 10-foot setback to Quail Street. Approving the setback reduction is mandatory and the area is sufficient to provide landscaping to soften the streetscape. 3. Building height: The Newport Place Planned Community (PC-11) Residential Overlay limits building height to 55 feet from established grade. In this case, a higher building height is necessary to accommodate 67 residential units. The Project is designed with a height of approximately 81 feet from established grade and this requested waiver is mandatory. Fiscal Impact Analysis Pursuant to General Plan Implementation Program 12.1, a fiscal impact analysis was prepared for the project by Applied Development dated November 30, 2023 (Attachment No. PC 5). The fiscal impact model used in the report calculates public service impacts for specific land uses that support the residential population, the employment base and the visitor population in Newport Beach. It also calculates the public revenues that each type of land use typically generates for the City, including property taxes, sales taxes, and other taxes as well as a variety of user charges and fees. The report concludes that the proposed ownership residential use of the site would generate a positive fiscal benefit for the City, particularly as compared to the negative fiscal impact of the existing office use of the site. Annually, the existing office use generates a negative fiscal impact of approximately $42,000 per year. Based on the fiscal model analysis, the proposed project would generate a revenue surplus of approximately $128,000 per year. 12-150 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 20 Development Agreement In accordance with Section 15.45.020.A.2.a (Development Agreement Required) of the NBMC, a development agreement is required as the proposed project includes an amendment to PC-11 and a General Plan Amendment to change the land use designation that include the development of fifty or more residential units. The applicant requests a 10-year term of agreement. Staff supports the 10-year term. The agreement provides assurance that the applicant may proceed with the Proposed Project in accordance with existing policies, rules and regulations, and conditions of approval. Additionally, the agreement helps the applicant avoid a waste of resources and escalated costs of the proposed project while encouraging a commitment to private participation in comprehensive planning. The DA provides vested rights to develop the project and the City will finalize the payment of negotiated public benefit fees. The total fee will have three components: a public safety fee, a park in -lieu fee, and a general public benefit fee (Table 3, below). The public safety fee will assist the City with the costs of an additional ambulance unit that will be stationed at Fire Station No. 7 that will serve this area or other public safety needs. The park fee will be used consistent with City Council Policy B-1 (Park Fee Policy) or for the future acquisition and development of a neighborhood park in the Airport Area. The public benefit fee will be used solely at the City Council's discretion. These fees are subject to annual adjustments, based on the CPI Index. Table 3: Proiected Public Benefit Fees (Subject to future CPI Adiustment) Category Fee Public Safety $141,600 Park In -Lieu $513,300 General Public Benefit $1,628,400 Total $2,283,300 Finally, the agreement includes all mandatory elements, including public benefits that are appropriate to support conveying the vested development rights consistent with the City's General Plan, NBMC, and Government Code Sections 65864 et seq. No changes to the public benefit fees are proposed. Environmental Review On July 25, 2006, the City Council adopted Resolution No. 2006-75, thereby certifying the adequacy and completeness of the Environmental Impact Report (EIR) for the General Plan 2006 Update (SCH No. 2006011119). The EIR was prepared in compliance with the CEQA set forth in the California Public Resources Code Section 21000 et seq. and its implementing State regulations set forth in the California Code of Regulations Title 14, Division 6, Chapter 3 (CEQA Guidelines) and City Council Policy K-3. Additionally, in 12-151 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 21 accordance with Section 15168(a) of the CEQA Guidelines, the City prepared the EIR as a Program Environmental Impact Report (PEIR). This PEIR analyzed the potential impacts of a citywide land use plan, and the goals and policies of 10 general plan elements. Additionally, on November 22, 2011, the City Council adopted General Plan Amendment No. GP2008-003, thereby approving the City of Newport Beach Housing Element Update (2008-2014) and its associated Housing Element Initial Study/Negative Declaration. Pursuant to Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, when an EIR has been certified for a project, no subsequent EIR is required unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following: 1. Substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2. Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or 3. New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete, shows any of the following: a. The project will have one or more significant effects not discussed in the previous EIR; b. Significant effects previously examined will be substantially more severe than shown in the previous EIR; c. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or d. Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. The City contracted with an environmental consultant (Placeworks) to prepare an Addendum to the PEIR. The entire Addendum and its technical appendixes are available 12-152 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 22 online at the City's website at: www.newportbeachca.gov/cega. The conclusion of the Addendum analysis supports the finding that no additional environmental document is required by CEQA. On the basis of the entire environmental review record, the project will not result in any new significant impacts that were not previously analyzed in the PEIR for the General Plan 2006 Update (SCH No. 2006011119) or the Housing Element Initial Study/Negative Declaration. All potential impacts associated with this Project would either be the same or less than those described in either the PEIR that have been appropriately mitigated. In addition, there are no substantial changes to the circumstances under which the project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the PEIR, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, an addendum to the previously adopted PEIR is the appropriate environmental document for the project. Summary Staff believes the findings for project approval can be made, with specific conditions of approval. The proposed project is consistent with the proposed MU-H2 General Plan Land Use designation and its land use policies related residential developments in the Airport Area. The project is consistent with the certified Housing Element and recently update Noise Element. The proposed inclusion into the Residential Overlay of the PC-11 is consistent as it allows multi -family uses subject to approval of a site development review and facts support approval of the application request. The site development review will ensure the project will be implemented consistent with the approved development standards and in substantial conformance with the design plans attached to this report. The applicant proposes to redevelop the underperforming office development with a for -sale multi -family development with affordable units consistent with the Overlay. The proposed development with on -site recreation amenities and adequate provisions of parking, allowed by the density bonus provisions, will create a suitable urban living environment integrated into the existing nonresidential area. AltPrnnfivPc The Planning Commission has the following alternatives- 1 . The Planning Commission may require or suggest specific design changes that are necessary to alleviate any areas of concern. If the requested changes are substantial, staff will return with a revised resolution incorporating new findings and/or conditions; or 2. If the Planning Commission chooses to deny the project, findings must be made consistent with the Housing Accountability Act (Government Code Section 65589.5) and 12-153 Residences at 1401 Quail Street (PA2023-0040) Planning Commission, December 21, 2023 Page 23 Density Bonus Law (Government Code Section 65915). Therefore, if after consideration of all written and oral evidence presented, the Planning Commission desires to either disapprove or impose a condition that the project be developed at a lower density or with any other conditions that would adversely impact feasibility of the proposed project, the Planning Commission must articulate the factual basis for making the following findings and direct staff to return with a revised resolution incorporating the articulated findings and factual basis for the decision: a. The housing development project would have a specific, adverse impact upon the public health or safety. As used in this paragraph, a "specific, adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. b. There is no feasible method to satisfactorily mitigate or avoid the adverse impact without rendering the development unaffordable to affordable households financially infeasible. Public Notice Notice of this hearing was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights -of -way and waterways) including the applicant, and posted on the subject property at least 10 days before the scheduled meeting, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the city website. Prepared by: David Lee, Senior Planner ATTACHMENTS Submitted by: Jim Campbell Deputy Community Development Director PC 1 Draft Resolution with Findings and Conditions PC 2 Applicant's Project Description PC 3 Addendum to the 2006 General Plan EIR PC 4 Airport Area Residential & Mixed -Use Adjustment Factors PC 5 Fiscal Impact Analysis PC 6 Project Plans 01 /18/23 12-154 Attachment G Planning Commission Meeting Minutes 12-155 DocuSign Envelope ID: E8AAF934-C6B0-4680-AA4E-3E1385FCEA50 NEWPORT BEACH PLANNING COMMISSION MINUTES CITY COUNCIL CHAMBERS — 100 CIVIC CENTER DRIVE THURSDAY, DECEMBER 21, 2023 REGULAR MEETING — 6:00 P.M. CALL TO ORDER — 6:00 p.m. PLEDGE OF ALLEGIANCE — Commissioner Salene III. ROLL CALL PRESENT: Chair Curtis Ellmore, Vice Chair Mark Rosene, Secretary Tristan Harris, Commissioner Jonathan Langford, Commissioner Lee Lowrey, and Commissioner David Salene ABSENT: Commissioner Brady Barto Staff Present: Assistant City Manager/Community Development Director Seimone Jurjis, Acting Deputy Community Development Director Jaime Murillo, Assistant City Attorney Yolanda Summerhill, City Traffic Engineer Brad Sommers, Senior Planner David Lee, Associate Planner Joselyn Perez, Senior Planner Liz Westmoreland, and Administrative Assistant Clarivel Rodriguez IV. PUBLIC COMMENTS None V. REQUEST FOR CONTINUANCES None VI. CONSENT ITEMS ITEM NO. 1 MINUTES OF DECEMBER 7, 2023 Recommended Action: Approve and file Motion made by Commissioner Landford and seconded by Vice Chair Rosene to approve the minutes of the December 7, 2023, as amended. AYES: Ellmore, Lowrey, Langford, Harris, Rosene, and Salene NOES: None ABSTAIN: None ABSENT: Barto VII. PUBLIC HEARING ITEMS ITEM NO. 2 1401 QUAIL STREET RESIDENCES (PA2023-0040) Site Location: 1401 Quail Street Summary: A demolition of an existing office building and construction of 67 for -sale residential condominium units atop a 146-space parking structure. The proposed podium -style residential building is approximately 87 feet tall and consists of six -stories above grade with a subterranean parking level below. The application consists of the following components: • General Plan Amendment — A request to change the existing General Plan Land Use Designation of the Property from CO-G (General Commercial Office) to MU-H2 (Mixed -Use Horizontal); Page 1 of 8 12-156 DocuSign Envelope ID: E8AAF934-C6B0-4680-AA4E-3E1385FCEA50 Planning Commission Regular Meeting Minutes December 21, 2023 • Planned Community Development Plan Amendment — An amendment to the Newport Place Planned Community (PC11) to include the Property within the Residential Overlay; • Maior Site Development Review - A site development review in accordance with the Newport Place Planned Community and Section 20.52.80 (Site Development Reviews) of the Newport Beach Municipal Code (NBMC), for the construction of the Project; • Tentative Vesting Tract Map — A Vesting Tentative Tract Map No. 19261 pursuant to Title 19 (Subdivisions) of the NBMC for condominium purposes of 67 dwelling units; • Affordable Housing Implementation Plan - A program specifying how the project would meet the City's affordable housing requirements, in exchange for a request of 27.5% increase in density. The applicant seeks development standard waivers and incentives pursuant to Chapter 20.32 (Density Bonus) of the NBMC and Government Code Section 65915 (Density Bonus Law); • Development Agreement — A Development Agreement, between the applicant and the City, pursuant to Sections 15.45.020.A.2.a (Development Agreement Required) of the NBMC, which would provide the applicant with a vested right to develop the Project for a term of ten years and provide negotiated public benefits to the City; and • Addendum to the 2006 General Plan Update Program Environmental Impact Reports - Pursuant to the California Environmental Quality Act (CEQA), the Addendum addresses reasonably foreseeable environmental impacts resulting from the project. Recommended Actions: 1. Conduct a public hearing; 2. Find that potential environmental impacts have been previously mitigated through the implementation of the policies of the General Plan as evaluated in Program Environmental Impact Report for the 2006 General Plan Update (SCH No. 2006011119), and the City of Newport Beach Housing Element Initial Study/Negative Declaration (collectively, the PEIR); therefore, in accordance with Section 15164 of the California Environmental Quality Act (CEQA) Guidelines, an addendum to the previously adopted PEIR is the appropriate environmental documentation for the project; and 3. Adopt Resolution No. PC2023-047 (Attachment No. PC 1) recommending the City Council adoption of an Environmental Impact Report Addendum, and approval of General Plan Amendment, Planned Community Development Plan Amendment, Major Site Development Review, Affordable Housing Implementation Plan, Tentative Vesting Tract Map and Development Agreement, for the Residences at 1401 Quail Street Project located at 1401 Quail Street (PA2023-0040). Senior Planner Lee used a presentation to review the project location and description, entitlements requested, dwelling unit summary, site plan, rendering of the motor court and parking entry, Spruce Street rendering, Housing Element, development standard waivers, incentives and concessions, development agreement, CEQA review, Condition of Approval 81 revision, recommendation, and next steps. All Commissioners disclosed ex parte communications with the applicant. Chair Ellmore opened the public hearing. Rick Puffer, Vice President of Development at Intracorp Homes, used a presentation to review Intracorp background and the team and the project overview, entry, front elevation, site layout, podium deck level, penthouse level, side view of entry, entry inspiration, and pool deck layout. He outlined the development opportunity, public benefits, and "building the extraordinary" tagline and agreed to the conditions of approval. Jim Mosher discussed possible inconsistencies with multiple General Plan Policies, including Policy 6.15.4 (Priority Uses), 6.15.10 (Regulatory Plans), and 6.15.18 (Walkable Streets). Cort Ensign inquired about the setback to the adjacent property and courtyard dimensions, suggested reciprocal setbacks for the adjacent property, and noted the potential close proximity of the balconies. Page 2 of 8 12-157 DocuSign Envelope ID: E8AAF934-C6B0-4680-AA4E-3E1385FCEA50 Planning Commission Regular Meeting Minutes December 21, 2023 Mr. Puffer noted the setback is 10 feet to the edge and the decks are within the setback providing for equal treatment to an adjacent property. Acting Deputy Community Development Director Murillo confirmed the project site is located outside the updated 65 CNEL noise contours and a correction to the resolution is needed. Chair Ellmore closed the public hearing. Commissioner Langford expressed excitement for a critical mass of housing projects, hoped others will follow, and supported the project. Vice Chair Rosene liked that a for -sale project is being brought to the market, thought the building is attractive and will fit in with the community and Intracorp is a quality builder, believed he can make the findings, and supported the project. Commissioner Lowrey concurred. Motion made by Vice Chair Rosene and seconded by Commissioner Langford to approve the item with the noise contour correction proposed by staff. AYES: Ellmore, Lowrey, Langford, Harris, Rosene, and Salene NOES: None ABSTAIN: None ABSENT: Barto ITEM NO. 3 SOBER LIVING BY THE SEA ZONING AGREEMENT TERMINATION (PA2008-199) Site Location: Citywide 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. The Zoning Agreement authorized the operation of residential care facilities in the City subject to specific limitations. Recommended Actions: 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). In response to Vice Chair Rosene's question, Assistant City Manager Jurjis stated that residential care facilities with six or less occupants can get a permit from the State, and while Sierra by the Sea has not expressed an interest in this, it is a possibility. Commissioners disclosed no ex parte communications. Chair Ellmore opened the public hearing. Page 3 of 8 12-158 DocuSign Envelope ID: E8AAF934-C6B0-4680-AA4E-3E1385FCEA50 Planning Commission Regular Meeting Minutes December 21, 2023 Jim Mosher questioned why Sierra by the Sea offered the termination, stated they have no obligations remaining to the City, and suggested staff understand their motivation better. Chair Ellmore closed the public hearing. Motion made by Vice Chair Rosene and seconded by Secretary Harris to approve the item as recommended by staff. AYES: Ellmore, Lowrey, Langford, Harris, Rosene, and Salene NOES: None ABSTAIN: None ABSENT: Barto ITEM NO. 4 BALDWIN & SONS MEDICAL OFFICE (PA2022-158) Site Location: 20 Corporate Plaza Summary: A request to convert a portion of the existing subterranean private parking area beneath the general office building at 20 Corporate Plaza into a 5,081-square-foot medical office. The project would require the following approvals to implement: • General Plan Amendment - To amend Anomaly Number 34 of Table LU2 in the General Plan Land Use Element to increase the maximum development limit by 2,711 square feet for a maximum development limit of 471,591 square feet. • Planned Community Development Plan Amendment - To amend the Corporate Plaza Planned Community (PC-17) Development Plan to allow a maximum gross building floor area of 471,591 square feet and to add "medical office" as an allowed use for Building Site 20. • Conditional Use Permit - To allow an adjustment to the required off-street parking by waiving four spaces required for the new medical office. • Development Agreement -The consideration of development agreement providing development rights in exchange for public benefits in accordance with Chapter 15.45 (Development Agreements) of the Newport Beach Municipal Code. Recommended Actions: 1. Conduct a public hearing; 2. Find the project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303, Class 3 (New Construction or Conversions of Small Structures) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; and 3. Adopt Resolution No. PC2023-045 recommending City Council approval of PA2022-0158, which includes the requested General Plan Amendment, Planned Community Development Plan Amendment, Conditional Use Permit, and Development Agreement, for the Baldwin & Sons Medical Office, located at 20 Corporate Plaza. Associate Planner Perez used a presentation to review the project vicinity map, existing site development and surplus subterranean parking lot, proposed project design, and discussed in detail the required approvals including a General Plan Amendment, Planned Community Development Plan Amendment, Conditional Use Permit, and Development Agreement, and concluded her presentation by providing recommendations and next steps. In response to Commission Langford's questions, Acting Deputy Community Development Director Murillo stated that the Irvine Comdpany transferred some unbuilt square footage left in the anomaly to a different area Page 4 of 8 12-159 DocuSign Envelope ID: E8AAF934-C6B0-4680-AA4E-3E1385FCEA50 Planning Commission Regular Meeting Minutes December 21, 2023 of Newport Center. Associate Planner Perez noted that the 2015 transfer of development rights took square footage out of anomaly 34 and moved it into a different anomaly. Commissioners disclosed no ex parte communications. Chair Ellmore opened the public hearing. Omar Dandashi, applicant and project director, agreed to the conditions of approval and in response to Vice Chair Rosene's question stated that there is no specific user identified. Jim Mosher questioned if adding additional sites for medical office is compatible with the original intent of the planned community development plan and disagreed with the Charter Section 423 analysis on page 22 due to previous disagreements with the processing of the Newport Beach Tennis and Pickleball Club General Plan Amendment. Acting Deputy Community Development Director Murillo stated that the intent of the planned community was to allow for general office use and subsequent amendments allowed for medical offices. Medical office is consistent with the overall General Plan Land Use designation for the site. Furthermore, he noted that the amendment does not trigger a vote under Charter Section 423. Chair Ellmore closed the public hearing. Motion made by Secretary Harris and seconded by Commissioner Salene to approve the item as recommended. AYES: Ellmore, Lowrey, Langford, Harris, Rosene, and Salene NOES: None ABSTAIN: None ABSENT: Barto ITEM NO. 5 LIDO MARINA VILLAGE PARKING MANAGEMENT PLAN (PA2021-089) Site Location: 3636 Newport Boulevard, 3418 through 3428 Via Lido, 3434 and 3444 Via Lido, 3400 through 3450 Via Oporto (even), and 3421 through 3505 Via Oporto (odd) Summary: The applicant requests to amend the existing conditional use permit (UP2017-019) that authorized a parking reduction and parking management plan (PMP) for Lido Marina Village (LMV). The applicant requests to remove the current requirement for off -site employee parking at Hoag Health Center (540 Superior Avenue) based on changes in tenancy and an associated reduction in demand for parking at the site. Other minor changes to the PMP are proposed such as increasing the capacity of employee parking on -site within the existing LMV parking structure and waiving additional parking spaces. If approved, this Conditional Use Permit would supersede Use Permit No. UP2017-019. The project also includes a coastal development permit to evaluate the change in intensity related to the parking reduction, PMP, and off -site parking. Recommended Actions: 1. Conduct a public hearing; 2. Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15305 under Class 5 (Minor Alterations in Land Use Limitations) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; and Page 5 of 8 12-160 DocuSign Envelope ID: E8AAF934-C6B0-4680-AA4E-3E1385FCEA50 Planning Commission Regular Meeting Minutes December 21, 2023 3. Adopt Resolution No. PC2023-046 approving Conditional Use Permit and Coastal Development Permit filed as PA2021-089 and superseding Conditional Use Permit No. UP2017-019 (PA2017-153). Senior Planner Westmoreland used a presentation to review the project location, background, and proposal, required City approvals, parking demand analysis, proposed Parking Management Plan, revisions to the resolution, and recommendation. In response to Commissioner Salene's question, Senior Planner Westmoreland noted that the docks are private and are operated by DJM. In response to Vice Chair Rosene's question, Senior Planner Westmoreland confirmed that the parking analysis is based on the Applicant not using the offsite parking and making it better with valet parking. In response to Secretary Harris' question, Senior Planner Westmoreland stated that the 100 spaces were leased at Hoag for employees and two conditions of approval allow for changes to the parking management plan if issues arise. In response to Commssioner Langford's questions, Senior Planner Westmoreland indicated that Condition of Approval 18 provides for a public vertical walkway that connects the street to the waterfront boardwalk and there is no known history of special event permit requests. Commissioners disclosed no ex parte communications. Chair Ellmore opened the public hearing. Amber Wesley, DJM representative, relayed their intention to reduce the requirement for parking at Hoag because they think the need for off -site parking is no longer. She agreed to the conditions of approval. Ingrid Yankauskas noted the stress from the parking arrangement. Jim Mosher inquired about the potential return of a similar tenant as Electra and noted challenges finding parking during times of high occupancy and asked the Commission to consider the continued impact to the Finley Tract. Scott Simmers noted the challenges created from the parking arrangement and concerns for safety, and the original intent of the shuttle was to take the pressure of the neighborhood. Mr. Simmers referenced the prior effort to require resident parking permits in the Finley Tract. In response to Chair Ellmore's question, Ms. Wesley stated that the charter cruise slips are now being used for private leasing and the applicant does not plan on leasing to large charters in the future. In response to Commssioner Harris' question, Ms. Wesley relayed that there is no charge to the employees to park at Hoag or in the parking structure and noted signage indicating employee excluded parking areas, valet service for parking lot overflow, and a designated parking area for employees. In response to Commissioner Langford's questions, Ms. Wesley stated that the 2016/18 Parking Management Plan revisions addressed employee parking charges and there are no new changes to the Parking Management Plan. In response to Vice Chair Rosene's concern, Ms. Wesley indicated that they were not aware until now of any complaints from the Finley Tract since the implementation of the 2018 Parking Management Plan. Jonathan Maroney, representative for LAZ Parking, explained the free employee parking program called Pilot Program, reported no issues, and relayed that contact and vehicle information is collected upon registration. The Pilot Page 6 of 8 12-161 DocuSign Envelope ID: E8AAF934-C6B0-4680-AA4E-3E1385FCEA50 VIII IX. Planning Commission Regular Meeting Minutes December 21, 2023 Program is optional and free of charge and the 100 off -site parking spots can be used for special events without an annual lease agreement with Hoag. Assistant City Manager Jurjis relayed that the City's permit parking program for Finley Tract residents was unsuccessful with the California Coastal Commission (CCC) pre-COVID and proposed trying again. He indicated that he has not received any reports from the Finley Tract residents since parking changed to no fee. Chair Ellmore closed the public hearing. Commissioner Lowrey suggested a new "A" in Condition of Approval 16 that includes language that notifies employees of the program or requests car registrations. Commissioner Harris expressed interest in a tracking mechanism for enforcement, like forced registration. He noted that there are other uses in the vicinity with employees. Commissioner Salene noted that Condition of Approval 15 includes language that requires each tenant and employee to register their car and use vehicle stickers. Vice Chair Rosene supported enforcement, the use of vehicular stickers, and staff returning to the Coastal Commission for a Finley Tract permit parking program. He recommended this matter be an actionable item and supported the proposal on this basis. Chair Ellmore noted that parking will always be a challenge in that area and the City will do the best it can with the challenge. Motion made by Chair Ellmore and seconded by Vice Chair Rosene to approve the item. AYES: Ellmore, Lowrey, Langford, Harris, Rosene, and Salene NOES: None ABSTAIN: None ABSENT: Barto STAFF AND COMMISSIONER ITEMS ITEM NO. 6 MOTION FOR RECONSIDERATION None ITEM NO. 7 REPORT BY THE COMMUNITY DEVELOPMENT DIRECTOR OR REQUEST FOR MATTERS WHICH A PLANNING COMMISSION MEMBER WOULD LIKE PLACED ON A FUTURE AGENDA Acting Deputy Community Development Director Murillo relayed one appeal matter on the January 4 Planning Commission agenda, announced the appeal to the CCC of the Dawson residence variance on December 11 and that City Hall will be closed between Christmas and New Years, and thanked the Planning Commission for their service over the past year. ITEM NO. 8 REQUESTS FOR EXCUSED ABSENCES None ADJOURNMENT - With no further business, the meeting was adjourned by Chair Ellmore at 7:23 p.m. Page 7 of 8 12-162 DocuSign Envelope ID: E8AAF934-C6B0-4680-AA4E-3E1385FCEA50 Planning Commission Regular Meeting Minutes December 21, 2023 The agenda for the December 21, 2023, Planning Commission meeting was posted on Thursday, December 14, 2023, at 8:00 p.m. in the Chambers binder, 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 Thursday, December 14, 2023, at 8:15 p.m. bmf s `vMbV't, Curtis tumore, Lnalr fiVlSfalA, RaYYis Tristan Harris, tiecretary Page 8 of 8 12-163 Attachment H Planning Commission Resolution No. PC2023-047 12-164 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 RESOLUTION NO. PC2023-047 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA RECOMMENDING CITY COUNCIL ADOPTION OF A GENERAL PLAN AMENDMENT, PLANNED COMMUNITY DEVELOPMENT PLAN AMENDMENT, SITE DEVELOPMENT REVIEW, VESTING TENTATIVE TRACT MAP, AFFORDABLE HOUSING IMPLEMENTATION PLAN, DEVELOPMENT AGREEMENT AND AN ENVIRONMENTAL IMPACT REPORT ADDENDUM FOR THE RESIDENCES AT 1401 QUAIL PROJECT LOCATED AT 1401 QUAIL STREET (PA2023- 0040) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by Intracorp Homes ("Applicant"), with respect to the property located at 1401 Quail Street, and legally described as Parcel 1 of Resubdivision No. 341 ("Property"). 2. The Applicant is requesting an approval for the demolition of an existing office building and the development of 67 for -sale condominium units, including a 146-space parking structure ("Project"). The following approvals are requested or required in order to implement the Project as proposed: • General Plan Amendment (GPA) — A request to amend the General Plan Land Use Designation of the Property from General Commercial Office (CO-G) to Mixed -Use Horizontal (MU-H2); • Planned Community Development Plan Amendment (PCDP Amendment) — An amendment to the Newport Place Planned Community (PC11) Development Plan to include the Property within the Residential Overlay; • Major Site Development Review (SDR) - A site development review in accordance with the Newport Place Planned Community and Section 20.52.80 (Site Development Reviews) of the Newport Beach Municipal Code ("NBMC"), for the construction of the Project; • Tentative Vesting Tract Map (VTM) — A Vesting Tentative Tract Map No. 19261 pursuant to Title 19 (Subdivisions) of the NBMC for 67 condominium dwelling units; • Affordable Housing Implementation Plan (AHIP) - A program specifying how the Project would meet the City's affordable housing requirements, in exchange for a request of 27.5% increase in density. The Applicant seeks four development standard waivers including two waivers related to park land dedication required by 12-165 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 2 of 41 General Plan Land Use Policy LU 6.15.13 and Section 19.52.040 (Parkland Standard) of the NBMC, one waiver related to building setbacks, and one waiver related to building height, pursuant to Chapter 20.32 (Density Bonus) of the NBMC and Government Code Section 65915 (Density Bonus Law). The Applicant also seeks two development concessions related to the mix of affordable units and a partial payment of the park in -lieu fee, pursuant to Chapter 20.32 (Density Bonus) of the NBMC and Government Code Section 65915; • Development Agreement (DA) — A Development Agreement, between the Applicant and the City, pursuant to Section 15.45.020 (Development Agreement Required) of the NBMC, which would provide the Applicant with vested right to develop the Project for a term of ten years and provide negotiated public benefits to the City; and • Addendum to the 2006 General Plan Update Program Environmental Impact Reports (Addendum) - Pursuant to the California Environmental Quality Act ("CEQA"), the Addendum addresses reasonably foreseeable environmental impacts resulting from the Project. 3. The Property is designated General Commercial Office (CO-G) by the General Plan Land Use Element and located within the Newport Place Planned Community (PC-11) Zoning District in the Industrial Site 3A sub -area. 4. The Property is not located within the coastal zone. 5. A public hearing was held on December 21, 2023 in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the hearing was given in accordance with Government Code Section 54950 et seq. (Ralph M. Brown Act), and Chapter 15.45 (Development Agreements), Chapter 19.20 (Vesting Tentative Map), Chapter 20.56 (Planned Community District Procedures), and Chapter 20.62 (Public Hearings) of the 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. On July 25, 2006, the City Council adopted Resolution No. 2006-75, thereby certifying the adequacy and completeness of the Environmental Impact Report ("EIR") for the General Plan Update (SCH No. 2006011119). The EIR was prepared in compliance with CEQA Guidelines set forth in the California Public Resources Code Section 21000 et seq. and its implementing State regulations set forth in the California Code of Regulations Title 14, Division 6, Chapter 3 (CEQA Guidelines) and City Council Policy K-3. Additionally, in accordance with Section 15168(a) of the CEQA Guidelines, the City prepared the EIR as a Program Environmental Impact Report (PEIR). This PEIR analyzed the potential impacts of a citywide land use plan, and the goals and policies of 10 general plan elements. 2. Additionally, on November 22, 2011, the City Council adopted General Plan Amendment No. GP2008-003, thereby approving the City of Newport Beach Housing Element Update (2008-2014) and its associated Housing Element and Initial Study/Negative Declaration 12-166 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 3 of 41 under CEQA. The PEIR and Initial Study/Negative Declaration are collectively referred to herein as the PEIR. 3. Pursuant to Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, when an EIR has been certified for a project, no subsequent EIR is required unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following: a. Substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; b. Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or c. New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete, shows any of the following: i. The project will have one or more significant effects not discussed in the previous EIR; ii. Significant effects previously examined will be substantially more severe than shown in the previous EIR; iii. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or iv. Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. 4. An Addendum to the PEIR was prepared pursuant to Section 15162 (Subsequent EIRs and Negative Declarations) and 15164 (Addendum to an EIR or Negative Declaration) of the CEQA Guidelines. 5. The following environmental topics were analyzed for the Project: Aesthetics, Air Quality, Biological Resources, Cultural Resources, Energy, Geology and Soils, Greenhouse Gas Emissions, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation, Tribal and Cultural Resources, Utilities and Service Systems, and Wildfire. The Addendum includes analysis of new topics that were 12-167 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 4 of 41 not included in the previous EIRs; specifically, it includes a new energy section and a new wildfire section. These additional analyses are appropriate for inclusion in the Addendum, but none result in new or increased significant impacts that would require preparation of a subsequent EIR pursuant to Section 15162 of the CEQA Guidelines. 6. On the basis of the PEIR and entire environmental review record, the Project will not result in any new significant impacts that were not previously analyzed in the PEIR. The Addendum confirms and provides substantial evidence that the potential impacts associated with this Project would either be the same or less than those described in either the PEIR, as reduced by applicable General Plan Policies in the PEIR. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the PEIR, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, an addendum to the previously adopted PEIR is the appropriate environmental document for the Project. In taking action to approve any of the requested applications for the Project, the data presented in the PEIR, as augmented by the Addendum for this Project, are considered as part of the record. 7. The Addendum to the PEIR is hereby recommended for adoption by the City Council given its analysis and conclusions. The Addendum to the PEIR and related and referenced documentation, constitute the administrative record upon which this decision was based, are on file with the Planning Division, City Hall, 100 Civic Center Drive, Newport Beach, California. 8. The Planning Commission finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger. SECTION 3. REQUIRED FINDINGS. General Plan Amendment An amendment to the 2006 Newport Beach General Plan Land Use Element is a legislative act. Neither Title 20 (Planning and Zoning) nor California Government Code Section 65000 et seq., set forth any required findings for either approval or denial of such amendments. Finding and Facts in Support of Findings: 1. The request is to amend the General Plan Land Use designation from General Commercial Office (CO-G) to Mixed -Use Horizontal (MU-H2). The Mixed -Use Horizontal (MU-H2) designation applies to properties located in the Airport Area. It provides for a horizontal intermixing of uses that may include regional commercial office, multifamily 12-168 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 5 of 41 residential, vertical mixed -use buildings, industrial, hotel rooms, and ancillary neighborhood commercial uses. 2. The GPA and the resulting land use change are compatible with the existing surrounding uses and planned land uses identified by the General Plan because the Project would introduce additional residential land uses in the Airport Area which includes a diverse mix of land uses including the gradual development of residential multifamily dwellings. Additionally, even with the conversion from General Commercial Office (CO-G) to Mixed - Use Horizontal (MU-H2), the building will be compatible with adjacent commercial properties architectural style and pedestrian connectivity. Additional residential development would support commercial properties within the Airport Area. 3. The requested GPA from General Commercial Office (CO-G) to Mixed -Use Horizontal (MU-H2) does not eliminate existing or future land uses to the overall detriment of the community given the Property's size, location, and surrounding uses. The existing office buildings were built in the 1970's and there are sufficient office facilities in the Airport Area to support the business needs of the community. The proposed change to allow residential uses would increase the City's housing stock including the provision of eight units that will be affordable to lower incomes. 4. The Property is located in an area of the City that has sufficient utilities systems to serve the Project once the Applicant completes a necessary upgrade to an off -site sewer line. As conditioned, applicant shall be responsible for their fair share of replacing the existing 10-inch vitrified clay pipe (VCP) pipe with a 12-inch sewer main, which is located near the intersection of Newport Place and Dove Street. This off -site improvement would result in approximately 435 linear feet of sewer line replacement. No other off -site improvements other than typical utility connections are proposed or required as part of the project. 5. The Project is consistent with the following City of Newport Beach General Plan policies that establish fundamental criteria for the formation and implementation of new residential villages in the Airport Business Area (additional policy analysis is included in the EIR Addendum attached hereto as Exhibit "A"): a. Land Use Element Policy LU 1.1 (Unique Environment): Maintain and enhance the beneficial and unique character of the different neighborhoods, business districts, and harbor that together identify Newport Beach. Locate and design development to reflect Newport Beach's topography, architectural diversity, and view sheds. The Project enhances the distinct, urban character of the Airport Area by providing a means for replacing parking lots and an office building with attractive and functional residential development, in line with the General Plan goal of transitioning the Airport Area to a mixed -use community. The Property is not in or near any of the City's areas featuring the harbor, unique topography, or view sheds. The proposed project would introduce residential units to the Property consistent with the uses and urbanized character of the Airport Area and the proposed Mixed -Use Horizontal (MU-H2) designation. 12-169 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 6 of 41 b. Land Use Element Policy LU 2.3 (Range of Residential Choices). Provide opportunities for the development of residential units that respond to community and regional needs in terms of density, size, location, and cost. Implement goals, policies, programs, and objectives identified within the City's Housing Element. The Project establishes 67 multi -family residential units, including 8 affordable units for families of low and very -low income. The Project responds to market needs and diversifies the City's housing stock by adding additional dwelling units to the Airport Area. c. Land Use Element Policy LU 3.8 (Project Entitlement Review with Airport Land Use Commission) - Refer the adoption or amendment of the General Plan, Zoning Code, specific plans, and Planned Community development plans for land within the John Wayne Airport planning area, as established in the JW4 Airport Environs Land Use Plan (AELUP), to the Airport Land Use Commission (ALUC) for Orange County for review, as required by Section 21676 of the California Public Utilities Code. In addition, refer all development projects that include buildings with a height greater than 200 feet above ground level to the ALUC for review. The Project is within the boundaries of the Airport Environs Land Use Plan (AELUP), therefore, the overseeing agency, ALUC, must review the proposed GPA and PCDP Amendment pursuant to Government Code Section 65302.3 and Public Utilities Code Section 21676. The purpose of ALUC's review is to determine whether the Project is consistent with the AELUP prior to the City Council taking action on the Project. The Project is consistent with the noise and safety standards of the AELUP. With respect to noise, the City adopted noise -related amendments to the General Plan Noise and Land Use Elements, the Newport Place Planned Community (PC- 11) and Title 20 (Planning and Zoning) contours to implement the 6t" Cycle Housing Element. The Project is located partially within the updated 60 decibel (dBA) community noise equivalent level (CNEL) contour as shown in Figure N5 of the Noise Element of the General Plan, where residential development is allowed. As a result, the Project will be required to comply with the development standards set forth in Section 20.30.080(F) (Noise - Airport Environs Land Use Plan) of the NBMC. The Project sites outside of any safety zones set forth in the AELUP, therefore, is consistent with the noise standards of the AELUP. d. Land Use Element Policy 6.15.3 (Airport Compatibility). Require that all development be constructed in conformance with the height restrictions set forth by the Federal Aviation Administration (FAA), Federal Aviation Regulations (FAR) Part 77, and Caltrans Division of Aeronautics, and that residential development shall be allowed only on parcels with noise levels of less than John Wayne Airport 65 d8A CNEL noise contour area as shown in Figure N5 of the Noise Element of the General Plan, unless and until the City determines, based on substantial evidence, that the sites wholly within the 65 d8A CNEL noise contour shown in Figure N5 are needed for the City to satisfy its Sixth Cycle RHNA mandate. Nonresidential uses are, 12-170 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 7 of 41 however, encouraged on parcels located wholly within the 65 d8A CNEL contour area. The Project is located at 1401 Quail Street and is approximately 81 feet in height. The Federal Aviation Administration (FAA) conducted an aeronautical study of the Project pursuant to applicable Federal regulations and has determined no hazard to air navigation for the Project. The Project is located partially within the updated 60 dBA CNEL contour as shown in Figure N5 of the Noise Element of the General Plan, where residential development is allowed, subject to the development standards set forth in Section 20.30.080(F) (Noise - Airport Environs Land Use Plan). e. Land Use Element Policy LU 6.15.5 (Residential and Supporting Uses). Accommodate the development of a maximum of 2,200 multi -family residential units, including work force housing, and mixed -use buildings that integrate residential with ground level office or retail uses, along with supporting retail, grocery stores, and parklands. Residential units may be developed only as the replacement of underlying permitted nonresidential uses. When a development phase includes a mix of residential and nonresidential uses or replaces existing industrial uses, the number of peak hour trips generated by cumulative development of the site shall not exceed the number of trips that would result from development of the underlying permitted nonresidential uses. However, a maximum of 550 units may be developed as infill on surface parking lots or areas not used as occupiable buildings on properties within the Conceptual Development Plan Area depicted on Figure LU22 provided that the parking is replaced on site. General Plan Land Use Policy 6.15.5 established a development limit of 2,200 maximum dwelling units for the Airport Area. Of the 2,200 residential units allowed, 1,650 units may be developed as replacement of existing office, retail, and/or industrial uses. The remaining 550 units are classified as additive units meaning they are not required to replace other units and they may be constructed as "in -fill" units to existing commercial or office development within the Conceptual Development Plan Area (CDPA) of the Airport Area. Any eligible density bonus allowed by Government Code Sections 65915 (Density Bonus Law) and Chapter 20.32 (Density Bonus) of the NBMC are not included in the 2,200-unit allowance. The 550 additive units have been previously allocated to the Uptown Newport and Residences at 4400 Von Karman projects. The Property is developed with an existing one-story commercial office building totaling 22,956 square feet. Since the Project can be developed only as the replacement of the underlying nonresidential use (office), and the number of peak hour trips generated by cumulative development of the Property shall not exceed the number of trips that would result from development of the underlying permitted nonresidential uses, a conversion rate of 2.29 dwelling units per 1,000 square feet of commercial floor area is required. This results in a total of 52 dwelling units. With a 27.5% density bonus or 15 dwelling units request, a total of 67 (52+15) dwelling units are proposed for the Project. 12-171 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 8 of 41 Presently, there are a total of 353 remaining and available dwelling units in the Airport Area. Considering the dwelling unit sum of the previously approved projects and the proposed Project, the remaining development allocation within the Airport Area would be 301 (353-52) dwelling units (exclusive of density bonus units). A separate project, Residences at 1400 Bristol, is under review to allow 64 units (exclusive of any density bonus). Assuming the 1400 Bristol project is approved, the remaining development allocation would be reduced to 212 (301-89=212) dwelling units. Land Use Element Policy LU 6.15.6 (Size of Residential Villages). Allow development of mixed -use residential villages, each containing a minimum of 10 acres and centered on a neighborhood park and other amenities (as conceptually illustrated in Figure LU23). The first phase of residential development in each village shall encompass at least 5 gross acres of land, exclusive of existing rights -of -way. This acreage may include multiple parcels provided that they are contiguous or face one another across an existing street. At the discretion of the City, this acreage may also include part of a contiguous property in a different land use category, if the City finds that a sufficient portion of the contiguous property is used to provide functionally proximate parking, open space, or other amenity. The "Conceptual Development Plan" area shown on Figure LU22 shall be exempt from the 5-acre minimum, but a conceptual development plan described in Policy LU 6.15.11 shall be required. The Property is 1.71 acres in size. The Residential Overlay of PC-11 allows residential development on sites containing less than 10-acres if housing units affordable to lower income households are provided. The proposed project includes eight dwelling units that will be affordable for low and very low-income households. If the Planned Community Development Plan is amended to include the Project within the Residential Overlay, as requested by the Applicant, the Project will be exempt from General Plan Policy 6.15.6 (Size of Residential Villages). g. Land Use Policy LU 6.15.7 (Overall Density and Housing Types). Require that residential units be developed at a minimum density of 30 units and maximum of 50 units per net acre averaged over the total area of each residential village. Net acreage shall be exclusive of existing and new rights -of -way, public pedestrian ways, and neighborhood parks. Within these densities, provide for the development of a mix of building types ranging from townhomes to high-rises to accommodate a variety of household types and incomes and to promote a diversity of building masses and scales. The Project has a base density of 30 units per acre (52 units on 1.71 acres) which is consistent with the 30 to 50 dwelling units per acre allowed range. The base density does not include the 27.5% density bonus of 15 units that is allowed by the State Bonus Density law which includes eight units set aside for affordable housing. Altogether, the Project has an overall density of 39 dwelling units per acre, which is exclusive of rights -of -ways, public pedestrian ways, and neighborhood parks. 12-172 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 9 of 41 The Project is a for -sale development with 67 condominium units, which provides residents with an ownership option that differs from surrounding apartment projects. There is a mixture of unit types, ranging from two -bedroom to three -bedroom units, accommodating a variety of household types and incomes. Of the 67 units, eight units will be affordable to low and very low-income households and 59 units will be market -rate housing. h. Land Use Policy LU 6.15.8 (First Phase Development Density). Require a residential density of 45 to 50 units per net acre, averaged over the first phase for each residential village. This shall be applied to 100 percent of properties in the first phase development area whether developed exclusively for residential or integrating service commercial horizontally on the site or vertically within a mixed -use building. On individual sites, housing development may exceed or be below this density to encourage a mix of housing types, provided that the average density for the area encompassed by the first phase is achieved. The Project would be developed in one phase on an individual site with a density of 39 units per acre. The Project provides a mixture of residential unit types that include eight units of affordable housing to low and very low-income households. The proposed density is below the required minimum of 45 units per acre since the applicant is providing a lower density to accommodate larger individual units for residents. Land Use Policy LU 6.15.9 (Subsequent Phase Development Location and Density). Subsequent phases of residential development shall abut the first phase or shall face the first phase across a street. The minimum density of residential development (including residential mixed -use development) shall be 30 units per net acre and shall not exceed the maximum of 50 units per net acre averaged over the development phase. See finding LU 6.15.9 First Phase Development Density above. Land Use Policy LU 6.15.13 (Neighborhood Parks Standards). To provide a focus and identity for the entire neighborhood and to serve the daily recreational and commercial needs of the community within easy walking distance of homes, require dedication and improvement of at least 8 percent of the gross land area (exclusive of existing rights -of -way) of the first phase development in each neighborhood, or acre, whichever is greater, as a neighborhood park. This requirement may be waived by the City where it can be demonstrated that the development parcels are too small to feasibly accommodate the park or inappropriately located to serve the needs of local residents, and when an in -lieu fee is paid to the City for the acquisition and improvement of other properties as parklands to serve the Airport Area. In every case, the neighborhood park shall be at least 8%of the total Residential Village Area or one acre in area, whichever is greater, and shall have a minimum dimension of 150 feet. Park acreage shall be exclusive of existing or new rights -of - way, development sites, or setback areas. A neighborhood park shall satisfy some 12-173 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 10 of 41 or all of the requirements of the Park Dedication Ordinance, as prescribed by the Recreation Element of the General Plan. The Project includes a waiver from Land Use Policy LU 6.15.13, as is allowed by the policy, due to a 1.71-acre parcel size that is too small to feasibly accommodate a park. As a part of the Development Agreement, the Applicant is proposing to use an incentive or concession allowed under Government Code Section 65915-65918 (State Density Bonus Law) to waive a portion of the required in -lieu fee. k. Land Use Policy LU 6.15.14 (Location). Require that each neighborhood park is clearly public in character and is accessible to all residents of the neighborhood. Each park shall be surrounded by public streets on at least two sides (preferably with on -street parking to serve the park), and shall be linked to residential uses in its respective neighborhood by streets or pedestrian ways. See finding LU 6.15.13 Neighborhood Park Standards above. Land Use Policy LU 6.15.16 (On -Site Recreation and Open Space Standards). Require developers of multi -family residential developments on parcels 8 acres or larger to provide on -site recreational amenities. For these developments, 44 square feet of on -site recreational amenities shall be provided for each dwelling unit in addition to the requirements under the City's Park Dedication Ordinance and in accordance with the Parks and Recreation Element of the General Plan. On -site recreational amenities can consist of public urban plazas or squares where there is the capability for recreation and outdoor activity. These recreational amenities may also include swimming pools, exercise facilities, tennis courts, and basketball courts. Where there is insufficient land to provide on -site recreational amenities, the developer shall be required to pay cash in -lieu that would be used to develop or upgrade nearby recreation facilities to offset user demand as defined in the City's Park Dedication Fee Ordinance. The acreage of on -site open space developed with residential projects may be credited against the parkland dedication requirements where it is accessible to the public during daylight hours, visible from public rights -of -way, and is of sufficient size to accommodate recreational use by the public. However, the credit for the provision of on -site open space shall not exceed 30% of the parkland dedication requirements. The Project is located on a 1.71-acre site and is not subject to Policy LU 6.15.16, as the policy only applies to properties consisting of 8-acres or larger. However, the Project exceeds the 2,948-square-foot (44 square feet x 67 units) on -site recreational amenities by providing a total of 7,597 square feet or approximately 113 square feet per unit which include a pool deck with swimming pool and spa, a clubroom, an outdoor seating area, and a lounge area. m. Land Use Policy LU 6.15.17 (Street and Pedestrian Grid). Create a pattern of streets and pedestrian ways that breaks up large blocks, improves connections 12-174 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 11 of 41 between neighborhoods and community amenities, and is scaled to the predominantly residential character of the neighborhoods. The Project is a podium style development with an internal driveway for vehicular circulation to the lobby and garage entry, accessed from Spruce Street. Pedestrian connections are provided to public sidewalks along Spruce Street and Quail Street. The Project retains the curb -to -curb dimension of both Quail Street and Spruce Street. n. Land Use Policy 6.15.18 (Walkable Streets). Retain the curb -to -curb dimension of existing streets but widen sidewalks to provide park strips and generous sidewalks by means of dedications or easements. Except where traffic loads preclude fewer lanes, add parallel parking to calm traffic, buffer pedestrians, and provide short term parking for visitors and shop customers. See finding Land Use Policy 6.15.17 Street and Pedestrian Grid above. o. Land Use Policy 6.15.19 (Connected Streets). Require dedication and improvement of new streets as shown on Figure LU23. The illustrated alignments are tentative and may change as long as the routes provide the intended connectivity. If traffic conditions allow, connect new and existing streets across Macarthur Boulevard with signalized intersections, crosswalks, and pedestrian refuges in the median. See finding Land Use Policy 6.15.17 Street and Pedestrian Grid above. p. Land Use Policy 6.15.20 (Pedestrian Improvements). Require the dedication and improvement of new pedestrian ways as conceptually shown on Figure LU23. The alignment is tentative and may change as long as the path provides the intended connectivity. For safety, the full length of pedestrian ways shall be visible from intersecting streets. To maintain an intimate scale and to shade the path with trees, pedestrian ways should not be sized as fire lanes. Pedestrian ways shall be open to the public at all times. The Project includes conditions of approval requiring the reconstruction of all broken and/or damaged curb, gutter, and sidewalk along Spruce and Quail Street frontages to preserve all existing sidewalks for pedestrian access. q. Land Use Policy LU 6.15.22 (Building Massing). Require that high-rise structures be surrounded with low- and mid -rise structures fronting public streets and pedestrian ways or other means to promote a more pedestrian scale. The Project is approximately 81 feet in height and is compatible with nearby properties located in the Airport Area. The adjacent property at 1451 Quail Street is developed with an approximately 37-foot-tall office building. The 1400 Quail Street property, located directly across Quail Street, is developed with an approximately 30-foot-tall office building. This is consistent with the policy as there are lower structures surrounding the Project, which is taller. Furthermore, a 78-foot-tall 12-175 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 12 of 41 residential apartment building has been approved to be constructed at 1300 Bristol Street, which is located across Spruce Street. Finally, 1400 Bristol, which is the adjacent property, is proposing a 229-unit apartment project that is 85 feet in height. The Project includes pedestrian connectivity to public sidewalks along Bristol Street and Spruce Street and pedestrian -scale landscaped areas around the apartment building. r. Land Use Policy LU 6.15.23 (Sustainability Development Practices). Require that development achieves a high level of environmental sustainability that reduces pollution and consumption of energy, water, and natural resources. This may be accomplished through the mix and density of uses, building location and design, transportation modes, and other techniques. Among the strategies that should be considered are the integration of residential with jobs -generating uses, use of alternative transportation modes, maximized walkability, use of recycled materials, capture and re -use of storm water on -site, water conserving fixtures and landscapes, and architectural elements that reduce heat gain and loss. The Project is required to comply with the provisions of the Building and Energy Efficiency Standards (CCR, Title 24, Parts 6 and 11) and the Green Building Standards Code (CCR, Title 24, Part 11 - CALGreen). Additionally, the Project would implement water -efficient landscaping, water quality best management practices to treat surface runoff from the Property, and low impact development practices. The Project is also adjacent to office developments in the Airport Area and would provide housing near employment opportunities. The Project includes pedestrian linkage to public sidewalks that would provide connections throughout the site and to adjacent and surrounding uses, thereby providing an alternative mode of public transportation for the residents and their visitors. The Project would also provide alternative forms of transportation to residents by locating close to the existing Orange County Transportation Authority (OCTA) bus routes provided along Bristol Street and Birch Street. Tribal Consultation (SB 18) 6. Pursuant to California Government Code Section 65352.3 (SB18), a local government is required to contact the appropriate tribes identified by the Native American Heritage Commission (NAHC) each time it considers a proposal to adopt or amend the General Plan. If requested by any tribe, the local government must consult for the purpose of preserving or mitigating impacts to cultural resources. The City received comments from the NAHC indicating that 12 tribal contacts should be provided notice regarding the proposed amendment. The tribal contacts were provided notice on March 15, 2023. California Government Code Section 65352.3 requires notification 90 days prior to Council action to allow tribal contacts to respond to the request to consult. The Project will not be heard by the City Council until after the 90-day period, which expired on June 13, 2023. The City participated in consultations with two tribes: the Gabrieleno Band of Mission Indians — Kizh Nation and the Juaneno Band of Mission Indians, Acjachemen Nation-Belardes. Based on consultation with the participating Native American Tribes, 12-176 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 13 of 41 conditions of approval have been included to ensure that a proper monitoring program is in place during the Project's construction. 423 Charter Analysis Finding: Charter Section 423 requires voter approval of any major General Plan amendment to the General Plan. A major General Plan amendment is one that significantly increases allowed density or intensity by 40,000 square feet of non-residential floor area, increases traffic by more than 100 peak hour vehicle trips (AM/PM), or increases residential dwelling units by 100 units. These thresholds apply to the total of increases resulting from the amendment itself, plus 80 percent of the increases resulting from other amendments affecting the same neighborhood (defined as a Statistical Area as shown in the General Plan Land Use Element) and adopted within the preceding ten years. Council Policy A-18 (Guidelines for Implementing Charter Section 423) requires that proposed amendments to the General Plan be reviewed to determine if a vote of the Newport Beach electorate would be required. This policy includes a provision that all General Plan amendments be tracked as "Prior Amendments" for 10 years to determine if minor amendments in a single Statistical Area cumulatively exceed the thresholds indicated above. Fact in Support of Findings: The Property is within Statistical Area L4. There are no prior CPAs in Statistical Area L4 in the past 10 years, besides the currently proposed 64 additional dwelling units resulting in a net increase of 24 a.m. peak hour trips and 25 p.m. peak hour trips for the Residences at 1400 Bristol Street. The GPA would change the land use designation only and not result in an increase in development. The 52 base dwelling units are already included in the Mixed -Use Horizontal (MU-H2) development capacity of 2,200 units and no increase in allowed floor area is proposed. Additionally, there is no increase in AM or PM peak hour trips pursuant to the Institute of Transportation Engineers (ITE) trip rates included as Exhibit B of Council Policy A- 18. As a result, the amendment is not classified as a major amendment requiring a vote of the electorate should the City Council choose to approve the GPA. Planned Community Development Plan Amendment An amendment to the Newport Place Planned Community Development Plan (PC-11), which is the zoning document of the Property, is a legislative act. Neither PC-11, Chapter 20.66 (Amendments), and 20.56 (Planned Community Development District Procedures) of Title 20 (Planning and Zoning) of the NBMC, or Article 2 (Adoption of Regulations) of Chapter 4 (Zoning Regulations) of Division 1 (Planning and Zoning) of Title 7 (Planning and Land Use) of the California Government Code set forth any required findings for either approval or denial of such amendments to the NBMC. However, the proposed amendment complies with the intent of Part III Residential Overlay of PC-11 as follows: 12-177 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 14 of 41 1. The Project allocates 15% of the base units (eight dwelling units) as affordable units. Of the eight units, six are restricted to very -low-income households and two are restricted to low-income households. 2. Given the location of the Property in the Airport Area which includes a mixture of service uses, hotels, Airport and commercial support services, professional offices, and new residential developments that cumulatively contain the ingredients of a planned community, the proposed PC Amendment would not disrupt the existing uses within the Planned Community and would add to this diversity of uses, assisting the City in larger scale community planning and the provision of additional housing opportunities. 3. The Property is located within 85 feet of the Residential Overlay. The property nearest to the site within the Residential Overlay is 1300 Bristol Street, across Spruce Street. The property at 1300 Bristol has been approved but not yet constructed as a residential apartment project. The Project would be consistent with the anticipated future development of 1300 Bristol and the proposed Residences at 1400 Bristol Project as well other adjacent properties within the Residential Overlay of PC-11. 4. The Project would be subject to the appropriate site and project specific setbacks, density, and height limits for this urban location. All required parking is provided on -site. The Project complies with the development standards identified for the Residential Overlay, except as modified by the allowed development standard waivers identified in the Affordable Housing Implementation Plan. The Residential Overlay provides a density range for proposed projects and references the Section 20.32 (Density Bonus) of the NBMC that prescribes the maximum density bonus and incentives allowed. The Project includes a density bonus of 27.5%, where the PCDP Amendment references a maximum density bonus of 35%. Therefore, the proposed project is consistent with the intent of the density bonus assumptions in the Residential Overlay. 5. The PCDP Amendment requires a site development review in accordance with Section 20.52.080 (Site Development Reviews) of the NBMC. The Project includes a site development review, and all required findings are addressed below (Findings A through C below). 6. The PCDP Amendment requires the density for a residential development to be between 30 and 50 dwelling units per acre. The Project includes 52 base units, not including density bonus units. Since the Property is 1.71 acres in size, there is a base density of 30 dwelling units per acre. With density bonus, there is a total of 67 dwelling units, which results in 39 units per acre. Both the density with and without the density bonus units are consistent with the PCDP Amendment density requirement. 7. The Property is located near existing office buildings within the Airport Area and is not negatively impacted by noise, dust, smoke, vibration, odor, toxic or noxious matter that may be generated by existing commercial or industrial uses nearby. 12-178 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 15 of 41 8. Residential dwellings are to be permitted as replacement of existing nonresidential uses, and the number of peak hour trips generated by the Project is not to exceed the number of trips of the underlying permitted nonresidential use. The Property is developed with an existing one-story commercial office building totaling 22,956 square feet. A standardized conversion rate of 2.29 dwelling units per 1,000 square feet of commercial floor area, as provided by the City Traffic Engineer, is required. This results in a total of 52 dwelling units, which is the proposed based density of the Project. With a 27.50% density bonus or 15 dwelling units request, a total of 67 (52+15) dwelling units are proposed for the Project. 9. The Property is fully developed and does not support any natural resources and all potential environmental impacts associated with the project are appropriately addressed through standard building permit procedures, conditions of approval, and the General Plan Policies identified in the 2006 General Plan EIR and summarized in Exhibit "A" (EIR Addendum). Major Site Development Review In accordance with Section 20.52.080(F) (Site Development Reviews — Findings and Decision) of the NBMC, the following findings and facts in support of such findings are set forth as follows: Finding: A. The proposed development is allowed within the subject zoning district. Fact in Support of Finding: The Property is located within Industrial Site 3 of Newport Place Planned Community (PC-11). The Project includes a request to amend Property's land use designation and inclusion as a part of the Residential Overlay of PC-11. The Residential Overlay allows for residential development consistent with the requested Mixed -Use Horizontal (MU-H2) land use designation and subject to site development review. Finding: B. The proposed development is in compliance with all of the following applicable criteria: Compliance with this section, the General Plan, this Zoning Code, any applicable specific plan, and other applicable criteria and policies related to the use or structure; ii. The efficient arrangement of structures on the site and the harmonious relationship of the structures to one another and to other adjacent developments; and whether the relationship is based on standards of good design; iii. The compatibility in terms of bulk, scale, and aesthetic treatment of structures on the site and adjacent developments and public areas; 12-179 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 16 of 41 iv. The adequacy, efficiency, and safety of pedestrian and vehicular access, including drive aisles, driveways, and parking and loading spaces; v. The adequacy and efficiency of landscaping and open space areas and the use of water efficient plant and irrigation materials; and vi. The protection of significant views from public right(s)-of-way and compliance with NBMC Section 20.30.100 (Public View Protection). Facts in Support of Finding: Refer to Fact 5 under General Plan Amendment and Facts 1 through 9 under Planned Community Development Plan Amendment above, that discuss the Project's consistency with the proposed Mixed Use Horizontal 2 (MU-H2) General Plan land use designation and the PC-11 (Newport Place Planned Community Development Plan) Zoning District including the proposed inclusion in the Residential Overlay. 2. The proposed six -story residential building would be approximately 81 feet in height inclusive of architectural elements and screened rooftop mechanical equipment. The Project is designed with a darker grey stucco finish on the podium and first floor levels and a white stucco finish for the floors above. The contrast in colors reduces the visual mass and bulk of the building and creates variations in the aesthetic design. Additionally, various units on each elevation are constructed with walkable decks with glass railings, adding additional aesthetic treatment to the building. The Project's building mass is compatible with the surrounding office and residential developments. 3. The Project includes a variety of enhanced amenities such as private residential balconies, a large pool deck, an outdoor seating area, a clubroom, and enclosed lounge. 4. The Project includes 146 onsite parking spaces located on a podium level parking structure which includes a subterranean gated parking structure underneath. The Project includes adequate onsite parking exceeding the minimum required residential standard pursuant to Density Bonus Law. 5. The Property is generally flat and bordered by existing office buildings and developed roadways. The City's General Plan does not identify any scenic vistas or view points on or proximate to the Property. The nearest public view point to the Property identified in the City's General Plan is approximately 3,000 feet to the south at Bayview Park. The nearest coastal view designated portion of Jamboree Road is approximately 3,000 feet south of the site. Due to the distance and highly urbanized nature of the Project area, public coastal views along this view corridor would not be impacted by the Project. Finding: C. The proposed development is not detrimental to the harmonious and orderly growth of the City, nor will it endanger, jeopardize, or otherwise constitute a hazard to the public 12-180 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 17 of 41 convenience, health, interest, safety, or general welfare of person residing or working in the neighborhood of the proposed development. Facts in Support of Finding: The Project has been designed to ensure that potential conflicts with surrounding uses are minimized to the extent possible to maintain a healthy environment for both surrounding businesses and residents by providing an architecturally pleasing project with articulation and building modulations to enhance the urban environment. 2. The proposed residential building has been designed to accommodate and provide safe access for emergency vehicles, delivery trucks, and refuse collections vehicles, as determined by the City Traffic Engineer. Refuse collection is accommodated via an on - site staging area along the private driveway to ensure safe maneuvering by refuse vehicles. Emergency vehicles will have access via Bristol Street and Spruce Street. 3. The Property is located approximately 0.57 mile east of the southernmost John Wayne Airport runway and is within the notification area of the AELUP for John Wayne Airport. However, the Project is below the maximum transitional imagery surface heights, and thus the Project is within the building height limits of the AELUP. The property is located partially within the updated 65dBA CNEL noise contours for John Wayne Airport and Safety Zone 6 (Traffic Pattern Zone), where the likelihood of an accident is low. Consistent with the residential overlay, the Project shall be required to comply with conditions specified in Section 20.30.080(F) (Noise - Airport Environs Land Use Plan), including provisions of noise study, sound attenuation design features, and notice to all future residents of potential annoyances or inconveniences associated with residing in proximity to airport operations. 4. The Project will comply with all Building, Public Works, Fire Codes, City ordinances, and all conditions of approval. Vesting Tentative Tract Map In accordance with Section 19.12.070 (Required Findings for Action on Tentative Maps) of the Newport Beach Municipal Code, and the following finding and facts in support of such findings are set forth: Finding: D. That the proposed map and the design or improvements of the subdivision are consistent with the General Plan and any applicable specific plan, and with applicable provisions of the Subdivision Map Act and this Subdivision Code. Facts in Support of Finding: 12-181 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 18 of 41 The Project is consistent with the proposed Mixed -Use Horizontal (MU-H2) General Plan designation of the Property, which provides for a horizontal intermixing of uses that include multi -family residential development. 2. The Public Works Department has reviewed the proposed vesting tentative tract map and determined it is consistent with the Title 19 and applicable requirements of the Subdivision Map Act. 3. Conditions of approval have been included to ensure compliance with Title 19. Finding: E. That the site is physically suitable for the type and density of development. Facts in Support of Finding: The Property is entirely developed and does not support any environmental resources. 2. The Property is located in the John Wayne Airport area. The Property is currently improved with a 22,956-square-foot office building. Given its location, this site is ideal for the development of a residential project as it is identified as a housing inventory site of the City's adopted and certified Sixth Cycle Housing Element. Finding: F. That the design of the subdivision or the proposed improvements will not cause substantial environmental damage nor substantially and avoidably injure fish or wildlife or their habitat. However, notwithstanding the foregoing, the decision -making body may nevertheless approve such a subdivision if an environmental impact report was prepared for the project and a finding was made pursuant to Section 21081 of the California Environmental Quality Act that specific economic, social, or other considerations make infeasible the mitigation measures or project alternatives identified in the environmental impact report. Fact in Support of Finding: An Addendum to the PEIR has been prepared and concludes that no significant environmental impacts will result with the Project development of the Property in accordance with the proposed subdivision map. Finding: G. That the design of the subdivision or the type of improvements is not likely to cause serious public health problems. Facts in Support of Finding: 12-182 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 19 of 41 The Vesting Tentative Tract Map is required for the subdivision of parcels for the separate sale of 67 condominium units. All construction for the Project will comply with all Building, Public Works, and Fire Codes, which are in place to prevent serious public health problems. Public improvements will be required of the Applicant per Section 19.28.010 (General Improvements Requirements) of the NBMC and Section 66411 of the Subdivision Map Act. Compliance with all ordinances of the City and all Conditions of Approval for the Project will ensure that the Project will not cause any serious health problems. 2. All mitigation measures will be implemented as outlined in the Addendum to the PEIR to ensure the protection of the public health. 3. No evidence is known to exist that would indicate that the separate sale of condominiums will generate any serious public health problems. Finding: H. That the design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the decision -making body may approve a map if it finds that alternate easements, for access or for use, will be provided and that these easements will be substantially equivalent to easements previously acquired by the public. This finding shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to the City Council to determine that the public at large has acquired easements for access through or use of property within a subdivision. Facts in Support of Finding: The design of the Project will not conflict with any easements acquired by the public at large for access through or use of property within the Property. 2. No other public easements for access through or use of the Property have been retained for use by the public at large. Finding: That, subject to the detailed provisions of Section 66474.4 of the Subdivision Map Act, if the land is subject to a contract entered into pursuant to the California Land Conservation Act of 1965 (Williamson Act), the resulting parcels following a subdivision of the land would not be too small to sustain their agricultural use or the subdivision will result in residential development incidental to the commercial agricultural use of the land. Fact in Support of Finding: 12-183 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 20 of 41 The Property is not subject to the Williamson Act since the Property is not considered an agricultural preserve and is less than 100 acres. Finding: J. That, in the case of a "land project" as defined in Section 11000.5 of the California Business and Professions Code: (a) there is an adopted specific plan for the area to be included within the land project; and (b) the decision -making body finds that the proposed land project is consistent with the specific plan for the area. Facts in Support of Finding: 1. The Property is not a "land project" as defined in Section 11000.5 of the California Business and Professions Code. 2. The Property is not located within a specific plan area. Finding: K. That solar access and passive heating and cooling design requirements have been satisfied in accordance with Sections 66473.1 and 66475.3 of the Subdivision Map Act. Fact in Support of Finding: The VTM and improvements are subject to Title 24 of the California Building Code that requires new construction to meet minimum heating and cooling efficiency standards depending on location and climate. The Newport Beach Building Division enforces Title 24 compliance through the plan check and inspection process. Finding: L. That the subdivision is consistent with Section 66412.3 of the Subdivision Map Act and Section 65584 of the California Government Code regarding the City's share of the regional housing need and that it balances the housing needs of the region against the public service needs of the City's residents and available fiscal and environmental resources. Facts in Support of Finding: 1. The proposed Vesting Tentative Tract Map is consistent with Section 66412.3 of the Subdivision Map Act and Section 65584 of the California Government Code regarding the City's share of the regional housing need. The Project does not involve the elimination of residential rooms and therefore will not affect the City's ability to meet its share of housing needs. On the contrary, the Property is identified as a housing opportunity site by the adopted and certified Sixth Cycle Housing Element and proposes includes 67 dwelling units, eight of which are considered affordable housing for families that qualify as low income. 12-184 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 21 of 41 2. Public services are available to serve the Project and the Addendum to the PEIR prepared for the Project indicates that the project's potential environmental impacts are properly mitigated. Finding: M. That the discharge of waste from the proposed subdivision into the existing sewer system will not result in a violation of existing requirements prescribed by the Regional Water Quality Control Board. Facts in Support of Finding: 1. Waste discharge into the existing sewer system will be not violate Regional Water Quality Control Board requirements. 2. Sewer connections have been conditioned to be installed per City Standards, the applicable provisions of Chapter 14.24 (Sewer Connection, Permits), and the latest revision of the Uniform Plumbing Code. Finding: N. For subdivisions lying partly or wholly within the Coastal Zone, that the subdivision conforms with the certified Local Coastal Program and, where applicable, with public access and recreation policies of Chapter Three of the Coastal Act. Facts in Support of Finding: The Property is not located in the Coastal Zone and is not subject to a coastal development permit. Affordable Housing Implementation Plan The proposed Affordable Housing Implementation Plan (AHIP) is consistent with the intent to implement affordable housing goals within the City pursuant to Government Code Sections 65915-65918 (State Density Bonus Law), and Title 20, Chapter 20.32 (Density Bonus) of the NBMC for the following reasons: 1. Consistent with the requested 27.5% density bonus, eight units of the Project's base units (52) would be set aside as affordable units. Of the eight units, six are restricted to very -low-income households and two are restricted to low-income households. Low- income households are defined as households 80% or less of the area median income, while very -low-income households are defined as households 50% or less of the area median income, both adjusted for family size. Since the Project is for -sale condominiums, the affordable units are subject to an equity sharing agreement without expiration, unless sold to a nonprofit housing corporation. 12-185 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 22 of 41 2. Government Code Section 65915 (Density Bonus Law) and Chapter 20.32 (Density Bonus) of the NBMC provide for an increase in the number of units above General Plan and zoning limits for projects that include a minimum of 15%of the base units affordable to low and very low-income households. The Project's inclusion of 8 affordable units (6 very low-income units and 2 low-income), which is 15%of the base unit count of 52 units, makes the Project eligible for 15 density bonus units. The Project total is 67 units. 3. In addition to the 15 density bonus units and parking reductions, the Project is entitled to receive up to two incentives or concessions under California Government Code Section 65915(d) and Section 20.32.070 (Allowed Incentives or Concessions) of the NBMC that would result in identifiable, financially sufficient, and actual cost reductions. The Project includes the following concessions the first of which the Project is entitled to and the second, which is at the City Council's discretion: a. Affordable Unit Mix: Section 20.32.110 (Design and Distribution of Affordable Units) of the NBMC requires affordable units in a density bonus project reflect the same range of unit types in the residential development as a whole. In this case, the Project provides all eight affordable units as two -bedroom units, whereas, the overall unit mix includes 27 two -bedroom units and 40 three -bedroom units. Granting an incentive from the unit -mix will result in identifiable, financially sufficient, and actual cost reductions for the Project. b. Partial Payment of In -Lieu Park Fee: General Plan Land Use Element Policy 6.15.13 requires residential development to provide a public park equal to 8% of the gross land area of the development, or a minimum one-half acre, whichever is greater, to be provided. Since the 1.71-acre Property is too small to feasibly accommodate the physical dedication of the park, the Policy requires an in -lieu fee paid to the City for the acquisition and improvement of other properties as parklands to serve the Airport Area. The Applicant is requesting to use a second incentive to waive a portion of the fee in order to provide cost reductions and make the Project financially feasible. 4. In addition to the density bonus units, parking reductions, and the financial concession, the Project is entitled to receive waivers or reductions of development standards under California Government Code Section 65915(e), Section 20.32.080 (Waivers or Reductions of Development Standards), and recent caselaw if the development standard would physically prevent the Project from being built at the permitted density. In this case, the Project is entitled to waivers of the following development standards: a. Park dedication requirements (two waivers): General Plan Land Use Policy LU 6.15.13 requires a public park equal to eight percent of the gross land area of the development, or a minimum one- half acre, whichever is greater, be provided. The Applicant proposes to waive the one-half acre requirement and a partial park in -lieu fee. Section 19.52.040 (Parkland Standard) of the NBMC requires the City's park dedication standard to be five acres per thousand population due to the proposed vesting tentative tract for residential condominium purposes. Per 12-186 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 23 of 41 the latest census data, the average persons per household is 2.2 persons, which results in 147.4 persons and a 0.74-acre park dedication requirement. Regardless of any requirements, the Property is 1.71 acres in size which is too small to feasibly accommodate a park of minimum one-half acre in size. b. Street setbacks. The Newport Place Planned Community (PC-11) requires street setbacks of 30 feet from property lines. In this case, 30-foot setbacks along Quail Street and Spruce Street would substantially decrease the development of the footprint of the Project. The Project is designed with a 11-foot setback from Spruce Street and a 10-foot setback to Quail Street. C. Building height. The Newport Place Planned Community (PC-11) Residential Overlay limits building height to 55 feet from established grade. In this case, a higher building height is necessary to accommodate 67 residential units. The Project is designed with a height of approximately 81 feet from established grade. Development Agreement In accordance with Section 15.45.020(A)(2)(a) (Development Agreement Required) of the NBMC, a development agreement is required as the project requires an amendment to the General Plan and PC-11 that includes the development of more than 50 residential units, in this case the Project has a total of 67 residential units. The proposed DA satisfies the requirements of Chapter 15.45 (Development Agreements) of the NBMC as follows: A DA is requested by the Applicant, as the Project would include a total of 67 residential units. The DA includes all the mandatory elements including a term of 10 years and public benefits that are appropriate to support conveying the vested development rights consistent with the City's General Plan, the NBMC, and Government Code Sections 65864 et seq. 2. Public benefits include the payment of a public safety fee to satisfy any obligation the Project could have to provide new emergency response services or Fire Department equipment to serve the Airport Area whether a Community Facilities District is formed or not. The Applicant has also agreed to pay a separate public benefit fee to be used by the City Council as it deems appropriate. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: The Planning Commission of the City of Newport Beach hereby recommends the following to the City Council: a. Adopt Environmental Impact Report Addendum to the 2006 General Plan Update (SCH2006011119), which is attached hereto as Exhibit "A" and incorporated by reference; b. Approve a General Plan Amendment to change the General Plan Land Use Designation of the Property from General Commercial Office (CO-G) to Mixed -Use 12-187 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 24 of 41 Horizontal (MU-1-12) which is attached hereto as Exhibit "B" and incorporated by reference; C. Adopt a Planned Community Development Plan Amendment to include the Property in the Residential Overlay of PC-11 which is attached hereto as Exhibit "C" and incorporated by reference; d. Adopt a Development Agreement, which is attached hereto as Exhibit "D," and incorporated by reference; e. Approve Affordable Housing Implementation Plan, which is attached hereto as Exhibit "E," and incorporated by reference; f. Approve a Major Site Development Review, with conditions of approval which are attached hereto as Exhibit "F" and incorporated by reference; and g. Approve Vesting Tentative Tract Map No. 19261 pursuant to Title 19 (Subdivisions) of the NBMC) for 67 condominium dwelling units, with conditions of approval which are attached hereto as Exhibit "G," and incorporated by reference. PASSED, APPROVED, AND ADOPTED THIS 21ST DAY OF DECEMBER, 2023. AYES: Ellmore, Harris, Langford, Lowrey, Rosene, and Salene NOES: None RECUSED: None ABSENT: Barto BY: Curtis Ellmore, Chairman BY: fiviSfaln, NYYiS Tristan Harris, Secretary Attachment(s): Exhibit A — Addendum to the 2006 General Plan Update (SCH NO. 2006011119) Exhibit B — General Plan Amendment Exhibit C — Planned Community Development Plan Amendment Exhibit D — Development Agreement Exhibit E — Affordable Housing Implementation Plan Exhibit F — Major Site Development Review Conditions of Approval Exhibit G — Vesting Tentative Tract Map No. 19261 12-188 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 25 of 41 WA: I]IiV_I% ADDENDUM TO THE 2006 GENERAL PLAN UPDATE (SCH NO. 2006011119) Available separately due to bulk at: www.newportbeachca.gov/cega 12-189 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 26 of 41 EXHIBIT "B" GENERAL PLAN AMENDMENT 12-190 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 P 4 C G 0� Il 6 ti �FtNEI� o JQeO°'��PLAZQ'O >sO> CO- CO-G s° 0 >% MMU-H2 v°OO 'qs> QG,, M U -H2 <S > qOO J >qO S'1 NEWPORT PLACE DR MU-H2 0 Q° K, o BOW SPRIT DR O ryA. roti 9 CO-G� � R�ST°�sT CG °>O> 2°p°2 ryp'P'L �O°9 ryPO�' 2491 2° 2O>O2 o J�( 2po° BOOS? z S� 20 Q 0 111 310 v e Feel PA2023-0040 General Plan Amendment NNBG�SH 1401 Quail St City of Newport Beach GIS Division November 22, 2023 'A2023-0040 GP Amendment—d ' z- 7V7 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 27 of 41 EXHIBIT "C" PLANNED COMMUNITY DEVELOPMENT PLAN AMENDMENT 12-192 Add "Residential Overlay" to the Property Located at 1401 Quail St N in the Newport Place Planned Community J. DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 28 of 41 1*:/:11INMIN DEVELOPMENT AGREEMENT 12-194 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663-3884 Attn: City Clerk (Space Above This Line Is for Recorder's Use Only) This Agreement is recorded at the request and for the benefit of the City of Newport Beach and is exempt from the payment of a recording fee pursuant to Government Code §§ 6103 and 27383. DEVELOPMENT AGREEMENT between CITY OF NEWPORT BEACH and INTRACORP SOCAL-1, LLC CONCERNING "THE RESDENCES AT 1401 QUAIL STREET" 12-195 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 DEVELOPMENT AGREEMENT (Pursuant to California Government Code Sections 65864-65869.5) This DEVELOPMENT AGREEMENT (the "Agreement") is dated for reference purposes as of the _ day of , 2024 (the "Agreement Date"), and is being entered into by and between the City of Newport Beach ("City"), and Intracorp Socal-1, LLC, a Delaware limited liability company "Property Owner"). City and Property Owner are sometimes collectively referred to in this Agreement as the "Parties" and individually as a "Party." RECITALS A. Property Owner is the owner of that certain real property located in the City of Newport Beach, County of Orange, State of California commonly referred to as 1401 Quail Street and more particularly described in the legal description attached as Exhibit "A" and depicted on the site map attached hereto as Exhibit `B" ("Property"). The Property consists of approximately 2.38 acres and is a part of the Newport Place Planned Community shown on the City's Zoning Map. B. In order to encourage investment in, and commitment to, comprehensive planning and public facilities financing, strengthen the public planning process and encourage private implementation of the local general plan, provide certainty in the approval of projects in order to avoid waste of time and resources, and reduce the economic costs of development by providing assurance to property owners that they may proceed with projects consistent with existing land use policies, rules, and regulations, the California Legislature adopted California Government Code Sections 65864-65869.5 (the "Development Agreement Statute") authorizing cities and counties to enter into development agreements with persons or entities having a legal or equitable interest in real property located within their jurisdiction. C. On March 13, 2007, the City Council adopted Ordinance No. 2007-6, entitled "Ordinance Amending Chapter 15.45 of City of Newport Beach Municipal Code Regarding Development Agreements" (the "Development Agreement Ordinance"). This Agreement is consistent with the Development Agreement Ordinance. D. The Parties wish to enter into Agreement for the construction of a multi -unit residential project consisting of 67 condominium units (including affordable units) atop of 146- space parking structure. E. As detailed in Section 3 of this Agreement, Property Owner has agreed to provide the following significant public benefits as consideration for this Agreement: INSERT PUBLIC BENEFITS. F. This Agreement is consistent with the City of Newport Beach General Plan ("General Plan"), including without limitation the General Plan's designation of the Property as "MU-112" (Mixed Use Horizontal 2) which provides for a horizontal intermixing of uses that may include regional commercial office, multifamily residential, vertical mixed -use buildings, industrial, hotel rooms, and ancillary neighborhood commercial uses and the Newport Place Planned Community that was adopted in 1970 by Ordinance No. 1369, and amended from time to -1- 12-196 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 time, in order to establish appropriate zoning to regulate land use and development of property within the general boundaries of the Newport Place Planned Community. G. In recognition of the significant public benefits that this Agreement provides, the City Council finds that this Agreement: (i) is consistent with the City of Newport Beach General Plan as of the date of this Agreement; (ii) is in the best interests of the health, safety, and general welfare of City, its residents, and the public; (iii) is entered into pursuant to, and constitutes a present exercise of, City's police power; (iv) Project's Addendum to the Environmental Impact Report (SCH# 20060111119) ("PEIR") that was certified by the City Council on July 25, 2006 for the 2006 General Plan Update and the Initial Study/Negative Declaration prepared in accordance with CEQA for the Newport Beach Housing Element Update (General Plan Amendment No. GP2008-003) adopted by the City Council on November 22, 2011 (the PEIR and Initial Study/Negative Declaration are collectively referred to herein as the "PEIR"), all of which analyze the environmental effects of the proposed development of the Project on the Property, and all of the findings, conditions of approval and mitigation measures related thereto; and (v) is consistent and has been approved consistent with provisions of California Government Code Section 65867 and City of Newport Beach Municipal Code chapter 15.45. H. On December 21, 2023, City's Planning Commission held a public hearing on this Agreement, and made findings and determinations with respect to this Agreement, and recommended to the City Council that the City Council approve this Agreement. I. On [INSERT DATE], the City Council held a public hearing on this Agreement and considered the Planning Commission's recommendations and the testimony and information submitted by City staff, Property Owner, and members of the public. On [INSERT DATE], consistent with applicable provisions of the Development Agreement Statute and Development Agreement Ordinance, the City Council adopted its Ordinance No. 2024- (the "Adopting Ordinance"), finding this Agreement to be consistent with the City of Newport Beach General Plan and approving this Agreement. AGREEMENT NOW, THEREFORE, City and Property Owner agree as follows: Definitions. In addition to any terms defined elsewhere in this Agreement, the following terms when used in this Agreement shall have the meanings set forth below: "Action" shall have the meaning ascribed in Section 8.10 of this Agreement. "Adopting Ordinance" shall mean City Council Ordinance No. 2024- approving and adopting this Agreement. "Agreement" shall mean this Development Agreement, as the same may be amended from time to time. "Agreement Date" shall mean INSERT DATE which date is the date the City Council adopted the Adopting Ordinance. N 12-197 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 "CEQA" shall mean the California Environmental Quality Act (California Public Resources Code Sections 21000-21177) and the implementing regulations promulgated thereunder by the Secretary for Resources (California Code of Regulations, Title 14, Section 15000 et seq.) ("CEQA Guidelines"), as the same may be amended from time to time. "City" shall mean the City of Newport Beach, a California charter city. "City Council" shall mean the governing body of City. "City's Affiliated Parties" shall have the meaning ascribed in Section 10.1 of this Agreement. "Claim" shall have the meaning ascribed in Section 10.1 of this Agreement. "CPI Index" shall mean the Consumer Price Index published from time to time by the United States Department of Labor, Bureau of Labor Statistics for all urban consumers (all items) for the Los Angeles -Long Beach -Anaheim, California Area, All Urban Consumers, All Items, Base Period (1982-84=100), or, if such index is discontinued, such other similar index as may be publicly available that is selected by City in its reasonable discretion. "Cure Period" shall have the meaning ascribed in Section 8.1 of this Agreement. "Default" shall have the meaning ascribed to that term in Section 8.1 of this Agreement. "Develop" or "Development" shall mean to improve or the improvement of the Property for the purpose of completing the structures, improvements, and facilities comprising the Project, including but not limited to: grading; the construction of infrastructure and public facilities related to the Project, whether located within or outside the Property; the construction of all of the private improvements and facilities comprising the Project; the preservation or restoration, as required of natural and man-made or altered open space areas; and the installation of landscaping. The terms "Develop" and "Development," as used herein, do not include the maintenance, repair, reconstruction, replacement, or redevelopment of any structure, improvement, or facility after the initial construction and completion thereof. "Development Agreement Ordinance" shall mean Chapter 15.45 of the City of Newport Beach Municipal Code. "Development Agreement Statute" shall mean California Government Code Sections 65864-65869.5, inclusive. "Development Exactions" shall mean any requirement of City in connection with or pursuant to any ordinance, resolution, rule, or official policy for the dedication of land, the construction or installation of any public improvement or facility, or the payment of any fee or charge in order to lessen, offset, mitigate, or compensate for the impacts of Development of the Project on the environment or other public interests. "Development Plan" shall mean all of the land use entitlements, approvals and permits approved by the City for the Project on or before the Agreement Date, as the same may be amended from time to time consistent with this Agreement. Such land use entitlements, approvals and 12-198 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 permits include, without limitation, the following: (1) the Development rights as provided under this Agreement; (2) the amendment to the Newport Place Planned Community (PC-11) adopted pursuant to Ordinance No. 1369 and as amended by Ordinance No. 2024-; (3) General Plan Amendment adopted pursuant to Resolution No. 2024-; (4) Major Site Development Review adopted pursuant to Resolution No. 2024 (5) Affordable Housing Implementation Plan adopted pursuant to Resolution No. 2024- and Tentative Tract Map adopted pursuant to Resolution No. 2024- "Development Regulations" shall mean the following regulations as they are in effect as of the Agreement Date and to the extent they govern or regulate the development of the Property, but excluding any amendment or modification to the Development Regulations adopted, approved, or imposed after the Agreement Date that impairs or restricts Property Owner's rights set forth in this Agreement, unless such amendment or modification is expressly authorized by this Agreement or is agreed to by Property Owner in writing: the General Plan, the Development Plan, and, to the extent not expressly superseded by the Development Plan or this Agreement, all other land use and subdivision regulations governing the permitted uses, density and intensity of use, design, improvement, and construction standards and specifications, procedures for obtaining required City permits and approvals for development, and similar matters that may apply to development of the Project on the Property during the Term of this Agreement that are set forth in Title 15 of the Municipal Code (buildings and construction), Title 19 of the Municipal Code (subdivisions) and Title 20 of the Municipal Code (planning and zoning), but specifically excluding all other sections of the Municipal Code, including without limitation Title 5 of the Municipal Code (business licenses and regulations). Notwithstanding the foregoing, the term "Development Regulations," as used herein, does not include any City ordinance, resolution, code, rule, regulation or official policy governing any of the following: (i) the conduct of businesses, professions, and occupations; (ii) taxes and assessments; (iii) the control and abatement of nuisances; (iv) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or entry upon public property; or (v) the exercise of the power of eminent domain. "Effective Date" shall mean the latest of the following dates, as applicable: (i) the date that is thirty (30) days after the Agreement Date; (ii) if a referendum concerning the Adopting Ordinance, the Development Plan, or any of the Development Regulations approved on or before the Agreement Date is timely qualified for the ballot and a referendum election is held concerning the Adopting Ordinance or any of such Development Regulations, the date on which the referendum is certified resulting in upholding and approving the Adopting Ordinance and the Development Regulations; or (iii) if a lawsuit is timely filed challenging the validity of the Adopting Ordinance, this Agreement, and/or any of the Development Regulations approved on or before the Agreement Date, the date on which said challenge is finally resolved in favor of the validity or legality of the Adopting Ordinance, this Agreement, the Development Plan and/or the applicable Development Regulations, which such finality is achieved by a final non -appealable judgment, voluntary or involuntary dismissal (and the passage of any time required to appeal an involuntary dismissal), or binding written settlement agreement. Promptly after the Effective Date occurs, the Parties agree to cooperate in causing an appropriate instrument to be executed and recorded against the Property memorializing the Effective Date. "Environmental Laws" means all federal, state, regional, county, municipal, and local laws, statutes, ordinances, rules, and regulations which are in effect as of the Agreement Date, and all federal, state, regional, county, municipal, and local laws, statutes, rules, ordinances, rules, and 2 12-199 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 regulations which may hereafter be enacted and which apply to the Property or any part thereof, pertaining to the use, generation, storage, disposal, release, treatment, or removal of any Hazardous Substances, including without limitation the following: the Comprehensive Environmental Response Compensation and Liability Act of 1980, 42 U.S.C. Sections 9601, et SeMc ., as amended ("CERCLA"); the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901, et SeMc ., as amended ("RCRA"); the Emergency Planning and Community Right to Know Act of 1986, 42 U.S.C. Sections 11001 et seq., as amended; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., as amended; the Clean Air Act, 42 U.S.C. Sections 7401 et seq., as amended; the Clean Water Act, 33 U.S.C. Section 1251, et s�Mc., as amended; the Toxic Substances Control Act, 15 U.S.C. Sections 2601 et seq., as amended; the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. Sections 136 et seq., as amended; the Federal Safe Drinking Water Act, 42 U.S.C. Sections 300f et seq., as amended; the Federal Radon and Indoor Air Quality Research Act, 42 U.S.C. Sections 7401 et seq., as amended; the Occupational Safety and Health Act, 29 U.S.C. Sections 651 et seq., as amended; and California Health and Safety Code Section 25100, et seq. "General Plan" shall mean City's 2006 General Plan adopted by the City Council on July 25, 2006, by Resolution No. 2006-76, as amended through the Agreement Date but excluding any amendment after the Agreement Date that impairs or restricts Property Owner's rights set forth in this Agreement, unless such amendment is expressly authorized by this Agreement, is authorized by Sections 8 or 9, or is specifically agreed to by Property Owner. The Land Use Plan of the Land Use Element of the General Plan was approved by City voters in a general election on November 7, 2006. "Hazardous Substances" means any toxic substance or waste, pollutant, hazardous substance or waste, contaminant, special waste, industrial substance or waste, petroleum or petroleum -derived substance or waste, or any toxic or hazardous constituent or additive to or breakdown component from any such substance or waste, including without limitation any substance, waste, or material regulated under or defined as "hazardous" or "toxic" under any Environmental Law. "Mortgage" shall mean a mortgage, deed of trust, sale and leaseback arrangement, or any other form of conveyance in which the Property, or a part or interest in the Property, is pledged as security and contracted for in good faith and for fair value. "Mortgagee" shall mean the holder of a beneficial interest under a Mortgage or any successor or assignee of the Mortgagee. "Notice of Default" shall have the meaning ascribed in Section 8.1 of this Agreement. "Party" or "Parties" shall mean either City or Property Owner or both, as determined by the context. "Project" shall mean all on -site and off -site improvements that Property Owner is authorized and/or may be required to construct with respect to each parcel of the Property, as provided in this Agreement and the Development Regulations, as the same may be modified or amended from time to time consistent with this Agreement and applicable law. "Property" is described in Exhibit "A" and generally depicted on Exhibit `B". 5 12-200 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 "Property Owner" shall mean Intracorp Socal-1, a Delaware limited liability company and any successor or assignee to all or any portion of the right, title, and interest in and to ownership of all or a portion of the Property. "Public Benefit Fee" shall have the meaning ascribed in Section 3.1 of this Agreement. "Subsequent Development Approvals" shall mean all discretionary development and building approvals that Property Owner is permitted to obtain to Develop the Project on and with respect to the Property after the Agreement Date consistent with the Development Regulations. "Term" shall have the meaning ascribed in Section 2.4 of this Agreement. "Termination Date" and "Lot Termination Date" shall have the meaning ascribed in Section 2.4 of this Agreement. "Transfer" shall have the meaning ascribed in Section 11 of this Agreement. 2. General Provisions. 2.1 Plan Consistencv. Zoning Implementation. This Agreement and the Development Regulations applicable to the Property are consistent with the General Plan and the Newport Place Planned Community Development Plan (PC-11) as amended by the approvals in the Development Plan adopted concurrently herewith (including but not limited to the amendment to the General Plan and Newport Place Planned Community Development Plan (PC-11). 2.2 Binding Effect of Agreement. The Property is hereby made subject to this Agreement. Development of the Property is hereby authorized and shall be carried out in accordance with the terms of this Agreement. 2.3 Property Owner Representations and Warranties Regarding Ownership of the Property and Related Matters Pertaining to this Agreement. Property Owner and each person executing this Agreement on behalf of Property Owner hereby represents and warrants to City as follows: (i) Property Owner or any co-owner comprising Property Owner is a legal entity and that such entity is duly formed and existing and is authorized to do business in the State of California; (ii) if Property Owner or any co-owner comprising Property Owner is a natural person that such natural person has the legal right and capacity to execute this Agreement; (iii) that all actions required to be taken by all persons and entities comprising Property Owner to enter into this Agreement have been taken and that Property Owner has the legal authority to enter into this Agreement; (iv) Property Owner's entering into and performing its obligations set forth in this Agreement will not result in a violation of any obligation, contractual or otherwise, that Property Owner or any person or entity comprising Property Owner has to any third party; (v) that neither Property Owner nor any co-owner comprising Property Owner is the subject of any voluntary or involuntary petition in bankruptcy; and (vi) Property Owner has the authority and ability to enter into or perform any of its obligations set forth in this Agreement. no 12-201 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 2.4 Term. The term of this Agreement (the "Term" shall commence on the Effective Date and continue until 20, unless otherwise terminated or modified pursuant to its terms. Notwithstanding any other provision set forth in this Agreement to the contrary, if any Party reasonably determines that the Effective Date will not occur because (i) the Adopting Ordinance or any of the Development Regulations approved on or before the Agreement Date for the Project has/have been disapproved by City's voters at a referendum election or (ii) a final non - appealable judgment is entered in a judicial action challenging the validity or legality of the Adopting Ordinance, this Agreement, and/or any of the Development Regulations for the Project approved on or before the Agreement Date such that this Agreement and/or any of such Development Regulations is/are invalid and unenforceable in whole or in such a substantial part that the judgment substantially impairs such Party's rights or substantially increases its obligations or risks hereunder or thereunder, then such Party, in its sole and absolute discretion, shall have the right to terminate this Agreement upon delivery of a written notice of termination to the other Party, in which event neither Party shall have any further rights or obligations hereunder except that Property Owner's indemnity obligations set forth in Article 10 shall remain in full force and effect and shall be enforceable, and the Development Regulations applicable to the Project and the Property only (but not those general Development Regulations applicable to other properties in the City) shall be repealed by the City after delivery of said notice of termination except for the Development Regulations that have been disapproved by City's voters at a referendum election and, therefore, never took effect. The Termination Date shall be the earliest of the following dates: (i) the tenth (loth) anniversary of the Effective Date; (ii) such earlier date that this Agreement may be terminated in accordance with Articles 5, 7, and/or Section 8.3 of this Agreement and/or Sections 65865.1 and/or 65868 of the Development Agreement Statute; or (iii) completion of the Project in accordance with the terms of this Agreement, including Property Owner's complete satisfaction, performance, and payment, as applicable, of all Development Exactions, the issuance of all required final occupancy permits, and acceptance by City or applicable public agency(ies) or private entity(ies) of all required offers of dedication. Notwithstanding any other provision set forth in this Agreement to the contrary, the provisions set forth in Article 10 and Section 14.11 (as well as any other Property Owner obligations set forth in this Agreement that are expressly written to survive the Termination Date) shall survive the Termination Date of this Agreement. 3. Public Benefits. 3.1 Public Benefit Fee. As consideration for City's approval and performance of its obligations set forth in this Agreement, Property Owner shall pay to City a fee that shall be in addition to any other fee or charge to which the Property and the Project would otherwise be subject to (herein, the "Public Benefit Fee") in the total sum of One Million Six Hundred Twenty Eight Thousand and Four Hundred Dollars and 00/100 ($1,628,400.00) which shall be due and payable prior to the issuance of the first building permit for the Project. 7 12-202 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 The City has not designated a specific project or purpose for the Public Benefit Fee. Owner acknowledges by its approval and execution of this Agreement that it is voluntarily agreeing to pay the Public Benefit Fee and that its obligation to pay the Public Benefit Fee is an essential term of this Agreement and is not severable from City's obligations and Owner's vested rights to be acquired hereunder, and that Owner expressly waives any constitutional, statutory, or common law right it might have in the absence of this Agreement to protest or challenge the payment of the Public Benefits identified in this Section 3.1 on any ground whatsoever, including without limitation pursuant to the Fifth and Fourteenth Amendments to the United States Constitution, California Constitution Article I Section 19, the Mitigation Fee Act (California Government Code Section 66000 et seq.), or otherwise. In addition to any other remedy set forth in this Agreement for Owner's default, if Owner shall fail to timely pay any portion of the Public Benefits identified in this Section 3.1 when due, City shall have the right to withhold issuance of any further building permits, occupancy permits, or other development or building permits for the Project. 3.2 Consumer Price Index (CPI) Increases. Any fee provided in this Section 3 (Public Benefits) shall be increased based upon percentage increases in the CPI Index as provided herein. The first CPI adjustment shall occur on the first anniversary of the City Council's adoption of the Adopting Ordinance (the first "Adjustment Date") and subsequent CPI adjustments shall occur on each anniversary of the first Adjustment Date thereafter until expiration of the Term of this Agreement (each, an "Adjustment Date"). The amount of the CPI adjustment on the applicable Adjustment Date shall in each instance be calculated based on the then most recently available CPI Index figures such that, for example, if the Effective Date of this Agreement falls on July I and the most recently available CPI Index figure on the first Adjustment Date (January I of the following year) is the CPI Index for November of the preceding year, the percentage increase in the CPI Index for that partial year (a 6-month period) shall be calculated by comparing the CPI Index for November of the preceding year with the CPI Index for May of the preceding year (a 6- month period). In no event, however, shall application of the CPI Index reduce the amount of the Public Benefit Fee (or unpaid portion thereof) below the amount in effect prior to any applicable Adjustment Date. 3.2 Other Public Benefits. In addition to the Public Benefit Fee, the direct and indirect benefits City expects to receive pursuant to this Development Agreement are as follows: 3.2.1 Park In -Lieu Fee. The Property Owner shall pay a park land dedication in -lieu fee pursuant to the City General Plan Land Use Policy 6.15.13 in the amount of Five Hundred Thirteen Thousand Three Hundred Dollars and 00/100 ($513,300.00), for the purpose of acquisition and improvement of other properties as parklands to serve the Airport Area. The fee shall be due and payable prior to the issuance of the first building permit for the Project. 3.2.2 Public Safety Fee. The Property Owner shall pay a public safety fee in the amount of One Hundred Forty -One Thousand Six Hundred Dollars and 00/100 ($141,600) to be used, at the City's discretion, to fund the cost of staffing, services, and equipment necessary for fire related public safety purposes. The fee shall be due and payable prior to the issuance of the first building permit for the Project. 12-203 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 4. Development of Project. 4.1 Applicable Regulations; Property Owner's Vested Rights and City's Reservation of Discretion With Respect to Subsequent Development Approvals. Other than as expressly set forth in this Agreement, during the Term of this Agreement, (i) Property Owner shall have the vested right to Develop the Project on and with respect to the Property in accordance with the terms of the Development Regulations and this Agreement and (ii) City shall not prohibit or prevent development of the Property on grounds inconsistent with the Development Regulations or this Agreement. Notwithstanding the foregoing, nothing herein is intended to limit or restrict City's discretion with respect to (i) review and approval requirements contained in the Development Regulations, (ii) exercise of any discretionary authority City retains under the Development Regulations, (iii) the approval, conditional approval, or denial of any Subsequent Development Approvals applied for by Property Owner, or that are required, for Development of the Project as of the Agreement Date provided that all such actions are consistent with the Development Regulations, or (iv) any environmental approvals that may be required under CEQA or any other federal or state law or regulation in conjunction with any Subsequent Development Approvals that may be required for the Project, and in this regard, as to future actions referred to in clauses (i)-(iv) of this sentence, City reserves its full discretion to the same extent City would have such discretion in the absence of this Agreement. In addition, it is understood and agreed that nothing in this Agreement is intended to vest Property Owner's rights with respect to any laws, regulations, rules, or official policies of any other governmental agency or public utility company with jurisdiction over the Property or the Project; or any applicable federal or state laws, regulations, rules, or official policies that may be inconsistent with this Agreement and that override or supersede the provisions set forth in this Agreement, and regardless of whether such overriding or superseding laws, regulations, rules, or official policies are adopted or applied to the Property or the Project prior or subsequent to the Agreement Date. Property Owner has expended and will continue to expend substantial amounts of time and money in the planning and entitlement process to permit Development of the Project in the future. Property Owner represents and City acknowledges that Property Owner would not make these expenditures without this Agreement, and that Property Owner is and will be making these expenditures in reasonable reliance upon obtaining vested rights to Develop the Project as set forth in this Agreement. Property Owner may apply to City for permits or approvals necessary to modify or amend the Development specified in the Development Regulations, provided that unless this Agreement also is amended, the request does not propose an increase in the maximum density, intensity, height, or size of proposed structures, or a change in use that generates more peak hour traffic or more daily traffic. In addition, Property Owner may apply to City for approval of minor amendments to existing tentative tract maps, tentative parcel maps, or associated conditions of approval, consistent with City of Newport Beach Municipal Code Section 19.12.090. This Agreement does not constitute a promise or commitment by City to approve any such permit or approval, or to approve the same with or without any particular requirements or conditions, and City's discretion with respect to such matters shall be the same as it would be in the absence of this Agreement. 4.2 No Conflicting Enactments. I 12-204 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Except to the extent City reserves its discretion as expressly set forth in this Agreement, during the Term of this Agreement City shall not apply to the Project or the Property any ordinance, policy, rule, regulation, or other measure relating to Development of the Project that is enacted or becomes effective after the Agreement Date to the extent it conflicts with this Agreement. This Section 4.2 shall not restrict City's ability to enact an ordinance, policy, rule, regulation, or other measure applicable to the Project pursuant to California Government Code Section 65866 consistent with the procedures specified in Section 4.3 of this Agreement. In Pardee Construction Co. v. City of Camarillo (1984) 37 Cal.3d 465, the California Supreme Court held that a construction company was not exempt from a city's growth control ordinance even though the city and construction company had entered into a consent judgment (tantamount to a contract under California law) establishing the company's vested rights to develop its property consistent with the zoning. The California Supreme Court reached this result because the consent judgment failed to address the timing of development. The Parties intend to avoid the result of the Pardee case by acknowledging and providing in this Agreement that Property Owner shall have the vested right to Develop the Project on and with respect to the Property at the rate, timing, and sequencing that Property Owner deems appropriate within the exercise of Property Owner's sole subjective business judgment, provided that such Development occurs in accordance with this Agreement and the Development Regulations, notwithstanding adoption by City's electorate of an initiative to the contrary after the Agreement Date. No City moratorium or other similar limitation relating to the rate, timing, or sequencing of the Development of all or any part of the Project and whether enacted by initiative or another method, affecting subdivision maps, building permits, occupancy certificates, or other entitlement to use, shall apply to the Project to the extent such moratorium or other similar limitation restricts Property Owner's vested rights in this Agreement or otherwise conflicts with the express provisions of this Agreement. 4.3 Reservations of Authoritv. Notwithstanding any other provision set forth in this Agreement to the contrary, the laws, rules, regulations, and official policies set forth in this Section 4.3 shall apply to and govern the Development of the Project on and with respect to the Property. 4.3.1 Procedural Regulations. Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals, and any other matter of procedure shall apply to the Property, provided that such procedural regulations are adopted and applied City-wide or to all other properties similarly situated in City. 4.3.2 Processing and Permit Fees. City shall have the right to charge and Property Owner shall be required to pay all applicable processing and permit fees to cover the reasonable cost to City of processing and reviewing applications and plans for any required Subsequent Development Approvals, building permits, excavation and grading permits, encroachment permits, and the like, for performing necessary studies and reports in connection therewith, inspecting the work constructed or installed by or on behalf of Property Owner, and monitoring compliance with any requirements applicable to Development of the Project, all at the rates in effect at the time fees are due. 4.3.3 Consistent Future City Regulations. City ordinances, resolutions, regulations, and official policies governing Development which do not conflict with the 10 12-205 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Development Regulations, or with respect to such regulations that do conflict, where Property Owner has consented in writing to the regulations, shall apply to the Property. 4.3.4 Development Exactions Applicable to Property. During the Term of this Agreement, Property Owner shall be required to satisfy and pay all Development Exactions at the time performance or payment is due to the same extent and in the same amount(s) that would apply to Property Owner and the Project in the absence of this Agreement; provided, however, that to the extent the scope and extent of a particular Development Exaction (excluding any development impact fee) for the Project has been established and fixed by City in the conditions of approval for any of the Development Regulations approved on or before the Agreement Date, City shall not alter, increase, or modify said Development Exaction in a manner that is inconsistent with such Development Regulations without Property Owner's prior written consent or as may be otherwise required pursuant to overriding federal or state laws or regulations (Section 4.3.5 hereinbelow). In addition, nothing in this Agreement is intended or shall be deemed to vest Property Owner against the obligation to pay any of the following (which are not included within the definition of "Development Exactions") in the full amount that would apply in the absence of this Agreement: (i) City's normal fees for processing, environmental assessment and review, tentative tract and parcel map review, plan checking, site review and approval, administrative review, building permit, grading permit, inspection, and similar fees imposed to recover City's costs associated with processing, reviewing, and inspecting project applications, plans, and specifications; (ii) fees and charges levied by any other public agency, utility, district, or joint powers authority, regardless of whether City collects those fees and charges; or (iii) community facility district special taxes or special district assessments or similar assessments, business license fees, bonds or other security required for public improvements, transient occupancy taxes, sales taxes, property taxes, sewer lateral connection fees, water service connection fees, new water meter fees, and the Property Development Tax payable under Chapter 3.12 of City's Municipal Code. 4.3.5 Overriding Federal and State Laws and Regulations. Federal and state laws and regulations that override Property Owner's vested rights set forth in this Agreement shall apply to the Property, together with any City ordinances, resolutions, regulations, and official policies that are necessary to enable City to comply with the provisions of any such overriding federal or state laws and regulations, provided that (i) Property Owner does not waive its right to challenge or contest the validity of any such purportedly overriding federal, state, or City law or regulation; and (ii) upon the discovery of any such overriding federal, state, or City law or regulation that prevents or precludes compliance with any provision of this Agreement, City or Property Owner shall provide to the other Party a written notice identifying the federal, state, or City law or regulation, together with a copy of the law or regulation and a brief written statement of the conflict(s) between that law or regulation and the provisions of this Agreement. Promptly thereafter City and Property Owner shall meet and confer in good faith in a reasonable attempt to determine whether a modification or suspension of this Agreement, in whole or in part, is necessary to comply with such overriding federal, state, or City law or regulation. In such negotiations, City and Property Owner agree to preserve the terms of this Agreement and the rights of Property Owner as derived from this Agreement to the maximum feasible extent while resolving the conflict. City agrees to cooperate with Property Owner at no cost to City in resolving the conflict in a manner which minimizes any financial impact of the conflict upon Property Owner. City also agrees to process in a prompt manner Property Owner's proposed changes to this Agreement, the Project and any of the Development Regulations as may be necessary to comply with such 11 12-206 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 overriding federal, state, or City law or regulation; provided, however, that the approval of such changes by City shall be subject to the discretion of City, consistent with this Agreement. 4.3.6 Public Health and Safety. Any City ordinance, resolution, rule, regulation, program, or official policy that is necessary to protect persons on the Property or in the immediate vicinity from conditions dangerous to their health or safety, as reasonably determined by City, shall apply to the Property, even though the application of the ordinance, resolution, rule regulation, program, or official policy would result in the impairment of Property Owner's vested rights under this Agreement. 4.3.7 Uniform Building Standards. Existing and future building and building - related standards set forth in the uniform codes adopted and amended by City from time to time, including building, plumbing, mechanical, electrical, housing, swimming pool, and fire codes, and any modifications and amendments thereof shall all apply to the Project and the Property to the same extent that the same would apply in the absence of this Agreement. 4.3.8 Public Works Improvements. To the extent Property Owner constructs or installs any public improvements, works, or facilities, the City standards in effect for such public improvements, works, or facilities at the time of City's issuance of a permit, license, or other authorization for construction or installation of same shall apply. 4.3.9 No Guarantee or Reservation of Utility Capacity. Notwithstanding any other provision set forth in this Agreement to the contrary, nothing in this Agreement is intended or shall be interpreted to require City to guarantee or reserve to or for the benefit of Property Owner or the Property any utility capacity, service, or facilities that may be needed to serve the Project, whether domestic or reclaimed water service, sanitary sewer transmission or wastewater treatment capacity, downstream drainage capacity, or otherwise, and City shall have the right to limit or restrict Development of the Project if and to the extent that City reasonably determines that inadequate utility capacity exists to adequately serve the Project at the time Development is scheduled to commence. 5. Amendment or Cancellation of Agreement. This Agreement may be amended or 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 Newport Beach Municipal Code Section 15.45.070 or by unilateral termination by City in the event of an uncured default of Property Owner. 6. Enforcement. Unless this Agreement is amended, canceled, modified, or suspended as authorized herein or pursuant to California Government Code Section 65869.5, this Agreement shall be enforceable by either Party despite any change in any applicable general or specific plan, zoning, subdivision, or building regulation or other applicable ordinance or regulation adopted by City (including by City's electorate) that purports to apply to any or all of the Property. 7. Annual Review of Property Owner's Compliance With Agreement. 7.1 General. City shall review this Agreement once during every twelve (12) month period following the Effective Date for compliance with the terms of this Agreement as provided in Government 12 12-207 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Code Section 65865.1. Property Owner (including any successor to the Property Owner executing this Agreement on or before the Agreement Date) shall pay City a reasonable fee in an amount City may reasonably establish from time to time to cover the actual and necessary costs for the annual review. City's failure to timely provide or conduct an annual review shall not constitute a Default hereunder by City. 7.2 Property Owner Obligation to Demonstrate Good Faith Compliance. During each annual review by City, Property Owner is required to demonstrate good faith compliance with the terms of the Agreement. Property Owner agrees to furnish such evidence of good faith compliance as City, in the reasonable exercise of its discretion, may require, thirty (30) days prior to each anniversary of the Effective Date during the Term. 7.3 Procedure. The Zoning Administrator shall conduct a duly noticed hearing and shall determine, on the basis of substantial evidence, whether or not Property Owner has, for the period under review, complied with the terms of this Agreement. If the Zoning Administrator finds that Property Owner has so complied, the annual review shall be concluded. If the Zoning Administrator finds, on the basis of substantial evidence, that Property Owner has not so complied, written notice shall be sent to Property Owner by first class mail of the Zoning Administrator's finding of non-compliance, and Property Owner shall be given at least ten (10) calendar days to cure any noncompliance that relates to the payment of money and thirty (30) calendar days to cure any other type of noncompliance. If a cure not relating to the payment of money cannot be completed within thirty (30) calendar days for reasons which are beyond the control of Property Owner, Property Owner must commence the cure within such thirty (30) calendar days and diligently pursue such cure to completion. If Property Owner fails to cure such noncompliance within the time(s) set forth above, such failure shall be considered to be a Default and City shall be entitled to exercise the remedies set forth in Article 8 below. 7.4 Annual Review a Non -Exclusive Means for Determining and Requiring Cure of Property Owner's Default. The annual review procedures set forth in this Article 7 shall not be the exclusive means for City to identify a Default by Property Owner or limit City's rights or remedies for any such Default. 8. Events of Default. 8.1 General Provisions. In the event of any material default, breach, or violation of the terms of this Agreement ("Default"), the Party alleging a Default shall deliver a written notice (each, a "Notice of Default") to the defaulting Party. The Notice of Default shall specify the nature of the alleged Default and a reasonable manner and sufficient period of time (ten (10) calendar days if the Default relates to the failure to timely make a monetary payment due hereunder and not less than thirty (30) calendar days in the event of non -monetary Defaults) in which the Default must be cured ("Cure Period"). During the Cure Period, the Party charged shall not be considered in Default for the purposes of termination of this Agreement or institution of legal proceedings. If the alleged Default is cured within the Cure Period, then the Default thereafter shall be deemed not to exist. If a non -monetary Default cannot be cured during the Cure Period with the exercise of commercially reasonable diligence, the defaulting Party must promptly commence to cure as 13 12-208 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 quickly as possible, and in no event later than thirty (30) calendar days after it receives the Notice of Default, and thereafter diligently pursue said cure to completion. Notwithstanding the foregoing, the City is not required to give Property Owner notice of default and may immediately pursue remedies for a Property Owner Default that result in an immediate threat to public health, safety or welfare. 8.2 Default by Property Owner. If Property Owner is alleged to have committed a non -monetary Default and it disputes the claimed Default, it may make a written request for an appeal hearing before the City Council within ten (10) days of receiving the Notice of Default, and a public hearing shall be scheduled at the next available City Council meeting to consider Property Owner's appeal of the Notice of Default. Failure to appeal a Notice of Default to the City Council within the ten (10) day period shall waive any right to a hearing on the claimed Default. If Property Owner's appeal of the Notice of Default is timely and in good faith but after a public hearing of Property Owner's appeal the City Council concludes that Property Owner is in Default as alleged in the Notice of Default, the accrual date for commencement of the thirty (30) day Cure Period provided in Section 8.1 shall be extended until the City Council's denial of Property Owner's appeal is communicated to Property Owner in writing. 8.3 Citv's Option to Terminate Agreement. In the event of an alleged Property Owner Default, City may not terminate this Agreement without first delivering a written Notice of Default and providing Property Owner with the opportunity to cure the Default within the Cure Period, as provided in Section 8.1, and complying with Section 8.2 if Property Owner timely appeals any Notice of Default. A termination of this Agreement by City shall be valid only if good cause exists and is supported by evidence presented to the City Council at or in connection with a duly noticed public hearing to establish the existence of a Default. The validity of any termination may be judicially challenged by Property Owner. Any such judicial challenge must be brought within thirty (30) days of service on Property Owner, by first class mail, postage prepaid, of written notice of termination by City or a written notice of City's determination of an appeal of the Notice of Default as provided in Section 8.2. 8.4 Default by City. If Property Owner alleges a City Default and alleges that the City has not cured the Default within the Cure Period, Property Owner may pursue any equitable remedy available to it under this Agreement, including, without limitation, an action for a writ of mandamus, injunctive relief, or specific performance of City's obligations set forth in this Agreement. Upon a City Default, any resulting delays in Property Owner's performance hereunder shall neither be a Property Owner Default nor constitute grounds for termination or cancellation of this Agreement by City and shall, at Property Owner's option (and provided Property Owner delivers written notice to City within thirty (30) days of the commencement of the alleged City Default), extend the Term for a period equal to the length of the delay. 8.5 Waiver. Failure or delay by either Party in delivering a Notice of Default shall not waive that Party's right to deliver a future Notice of Default of the same or any other Default. 14 12-209 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 8.6 Specific Performance Remedv. Due to the size, nature, and scope of the Project, it will not be practical or possible to restore the Property to its pre-existing condition once implementation of this Agreement has begun. After such implementation, both Property Owner and City may be foreclosed from other choices they may have had to plan for the development of the Property, to utilize the Property or provide for other benefits and alternatives. Property Owner and City have invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement. It is not possible to determine the sum of money which would adequately compensate Property Owner or City for such efforts. For the above reasons, City and Property Owner agree that damages would not be an adequate remedy if either City or Property Owner fails to carry out its obligations under this Agreement. Therefore, specific performance of this Agreement is necessary to compensate Property Owner if City fails to carry out its obligations under this Agreement or to compensate City if Property Owner falls to carry out its obligations under this Agreement. 8.7 Monetary Damages. The Parties agree that monetary damages shall not be an available remedy for either Party for a Default hereunder by the other Party; provided, however, that (i) nothing in this Section 8.7 is intended or shall be interpreted to limit or restrict City's right to recover the Public Benefit Fees due from Property Owner as set forth herein; and (ii) nothing in this Section 8.7 is intended or shall be interpreted to limit or restrict Property Owner's indemnity obligations set forth in Article 10 or the right of the prevailing Party in any Action to recover its litigation expenses, as set forth in Section 8.10. In no event shall damages be awarded against the City upon an event of default or upon termination of this Agreement. Owner expressly agrees that the City, any City agencies and their respective elected and appointed councils, boards, commissions, officers, agents, employees, volunteers and representatives (collectively, for purposes of this Section 8.7, "City") shall not be liable for any monetary damage for a Default by the City or any claims against City arising out of this Agreement. Owner hereby expressly waives any such monetary damages against the City. The sole and exclusive judicial remedy for Owner in the event of a Default by the City shall be an action in mandamus, specific performance, or other injunctive or declaratory relief. 8.8 Additional City Remedy for Property Owner's Default. In the event of any Default by Property Owner, in addition to any other remedies which may be available to City, whether legal or equitable, City shall be entitled to receive and retain any Development Exactions applicable to the Project or the Property, including any fees, grants, dedications, or improvements to public property which it may have received prior to Property Owner's Default without recourse from Property Owner or its successors or assigns. 8.9 No Personal Liability of City Officials, Employees, or Agents. No City official, employee, or agent shall have any personal liability hereunder for a Default by City of any of its obligations set forth in this Agreement. 15 12-210 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 8.10 Recovery of Leizal Expenses by Prevailing Partv in Anv Action. In any judicial proceeding, arbitration, or mediation (collectively, an "Action") between the Parties that seeks to enforce the provisions of this Agreement or arises out of this Agreement, the prevailing Party shall not recover any of its costs and expenses, regardless of whether they would be recoverable under California Code of Civil Procedure Section 1033.5 or California Civil Code Section 1717 in the absence of this Agreement. These costs and expenses include, but are not limited to, court costs, expert witness fees, attorneys' fees, City staff costs (including overhead), and costs of investigation and preparation before initiation of the Action. 9. Force Majeure. Neither Party shall be deemed to be in Default where failure or delay in performance of any of its obligations under this Agreement is caused, through no fault of the Party whose performance is prevented or delayed, by floods, earthquakes, other acts of God, fires, wars, riots or similar hostilities, strikes or other labor difficulties, state or federal regulations, or court actions. Except as specified above, nonperformance shall not be excused because of the act or omission of a third person. In no event shall the occurrence of an event of force majeure operate to extend the Term of this Agreement. In addition, in no event shall the time for performance of a monetary obligation, including without limitation Property Owner's obligation to pay Public Benefit Fees, be extended pursuant to this Section. 10. Indemnity Obligations of Propertv Owner. 10.1 Indemnity Arising From Acts or Omissions of Propertv Owner. Property Owner shall indemnify, defend, and hold harmless City and City's officials, employees, agents, attorneys, and contractors (collectively, the "City's Affiliated Parties") from and against all suits, claims, liabilities, losses, damages, penalties, obligations, and expenses (including but not limited to attorneys' fees and costs) (collectively, a "Claim") that may arise, directly or indirectly, from the acts, omissions, or operations of Property Owner or Property Owner's agents, contractors, subcontractors, agents, or employees in the course of Development of the Project or any other activities of Property Owner relating to the Property or pursuant to this Agreement. City shall have the right, in its sole discretion, to select and retain counsel to defend any Claim filed against City and/or any of City's Affiliated Parties, and Property Owner shall pay the reasonable cost for defense of any Claim. The indemnity provisions in this Section 10.1 shall commence on the Agreement Date, regardless of whether the Effective Date occurs, and shall survive the Termination Date. 10.2 Third Party Litigation. In addition to its indemnity obligations set forth in Section 10.1, Property Owner shall indemnify, defend, and hold harmless City and City's Affiliated Parties from and against any Claim against City or City's Affiliated Parties seeking to attack, set aside, void, or annul the approval of this Agreement, the Adopting Ordinance, any of the Development Regulations for the Project (including without limitation any actions taken pursuant to CEQA with respect thereto), any Subsequent Development Approval, or the approval of any permit granted pursuant to this Agreement. Said indemnity obligation shall include payment of attorney's fees, expert witness fees, City staff costs, and court costs. City shall promptly notify Property Owner of any such 16 12-211 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Claim and City shall cooperate with Property Owner in the defense of such Claim. If City fails to promptly notify Property Owner of such Claim, Property Owner shall not be responsible to indemnify, defend, and hold City harmless from such Claim until Property Owner is so notified and if City fails to cooperate in the defense of a Claim Property Owner shall not be responsible to defend, indemnify, and hold harmless City during the period that City so fails to cooperate or for any losses attributable thereto. City shall be entitled to retain separate counsel to represent City against the Claim and the City's defense costs for its separate counsel shall be included in Property Owner's indemnity obligation, provided that such counsel shall reasonably cooperate with Property Owner in an effort to minimize the total litigation expenses incurred by Property Owner. In the event either City or Property Owner recovers any attorney's fees, expert witness fees, costs, interest, or other amounts from the party or parties asserting the Claim, Property Owner shall be entitled to retain the same (provided it has fully performed its indemnity obligations hereunder). The indemnity provisions in this Section 10.2 shall commence on the Agreement Date, regardless of whether the Effective Date occurs, and shall survive the Termination Date. 10.3 Environmental Indemnity. In addition to its indemnity obligations set forth in Section 10.1, from and after the Agreement Date Property Owner shall indemnify, defend, and hold harmless City and City's Affiliated Parties from and against any and all Claims for personal injury or death, property damage, economic loss, statutory penalties or fines, and damages of any kind or nature whatsoever, including without limitation attorney's fees, expert witness fees, and costs, based upon or arising from any of the following: (i) the actual or alleged presence of any Hazardous Substance on or under any of the Property in violation of any applicable Environmental Law; (ii) the actual or alleged migration of any Hazardous Substance from the Property through the soils or groundwater to a location or locations off of the Property; and (iii) the storage, handling, transport, or disposal of any Hazardous Substance on, to, or from the Property and any other area disturbed, graded, or developed by Property Owner in connection with Property Owner's Development of the Project. The foregoing indemnity obligations shall not apply to any Hazardous Substance placed or stored on a separate legal lot within the Property after the Lot Termination Date for said lot, as provided in Section 2.4 of this Agreement. The indemnity provisions in this Section 10.3 shall commence on the Agreement Date, regardless of whether the Effective Date occurs, and shall survive the Termination Date. 11. Assignment. Property Owner shall have the right to sell, transfer, or assign (hereinafter, collectively, a "Transfer") Property Owner's interest in or fee title to the Property, in whole or in part, to any person, partnership, joint venture, firm, or corporation (which successor, as of the effective date of the Transfer, shall become the "Property Owner" under this Agreement) at any time from the Agreement Date until the Termination Date; provided, however, that no such Transfer shall violate the provisions of the Subdivision Map Act (Government Code Section 66410 et seq.) or City's local subdivision ordinance and any such Transfer shall include the assignment and assumption of Property Owner's rights, duties, and obligations set forth in or arising under this Agreement as to the Property or the portion thereof so Transferred and shall be made in strict compliance with the following conditions precedent: (i) no transfer or assignment of any of Property Owner's rights or interest under this Agreement shall be made unless made together with the Transfer of all or a part of the Property; and (ii) prior to the effective date of any proposed Transfer, Property Owner (as 17 12-212 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 transferor) shall notify City, in writing, of such proposed Transfer and deliver to City a written assignment and assumption, executed in recordable form by the transferring and successor Property Owner and in a form subject to the reasonable approval of the City Attorney of City (or designee), pursuant to which the transferring Property Owner assigns to the successor Property Owner and the successor Property Owner assumes from the transferring Property Owner all of the rights and obligations of the transferring Property Owner with respect to the Property or portion thereof to be so Transferred, including in the case of a partial Transfer the obligation to perform such obligations that must be performed off of the portion of the Property so Transferred that are a condition precedent to the successor Property Owner's right to develop the portion of the Property so Transferred. Any Permitted Transferee shall have all of the same rights, benefits, duties, obligations, and liabilities of Owner under this Agreement with respect to the portion of, or interest in, the Property sold, transferred, and assigned to such Permitted Transferee; provided, however, that in the event of a Transfer of less than all of the Property, or interest in the Property, no such Permitted Transferee shall have the right to enter into an amendment of this Agreement that jeopardizes or impairs the rights or increases the obligations of the Owner with respect to the balance of the Property, without Owner's written consent. Notwithstanding any Transfer, the transferring Property Owner shall continue to be jointly and severally liable to City, together with the successor Property Owner, to perform all of the transferred obligations set forth in or arising under this Agreement unless the transferring Property Owner is given a release in writing by City, which release shall be only with respect to the portion of the Property so Transferred in the event of a partial Transfer. City shall provide such a release upon the transferring Property Owner's full satisfaction of all of the following conditions: (i) the transferring Property Owner no longer has a legal or equitable interest in the portion of the Property so Transferred other than as a beneficiary under a deed of trust; (ii) the transferring Property Owner is not then in Default under this Agreement and no condition exists that with the passage of time or the giving of notice, or both, would constitute a Default hereunder; (iii) the transferring Property Owner has provided City with the notice and the fully executed written and recordable assignment and assumption agreement required as set forth in the first paragraph of this Section 11; and (iv) the successor Property Owner either (A) provides City with substitute security equivalent to any security previously provided by the transferring Property Owner to City to secure performance of the successor Property Owner's obligations hereunder with respect to the Property or the portion of the Property so Transferred or (B) if the transferred obligation in question is not a secured obligation, the successor Property Owner either provides security reasonably satisfactory to City or otherwise demonstrates to City's reasonable satisfaction that the successor Property Owner has the financial resources or commitments available to perform the transferred obligation at the time and in the manner required under this Agreement and the Development Regulations for the Project. Any determination by the City in regards to the second paragraph of Section 11 subpart (iv) (A) and/or (B) shall be documented in writing. 12. Mortgagee Rights. 12.1 Encumbrances on Property. The Parties agree that this Agreement shall not prevent or limit Property Owner in any manner from encumbering the Property, any part of the Property, or any improvements on the Property with any Mortgage securing financing with respect to the construction, development, use, or operation of the Project. IN 12-213 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 12.2 Mortgagee Protection. This Agreement shall be superior and senior to the lien of any Mortgage. Nevertheless, no breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value. Any acquisition or acceptance of title or any right or interest in the Property or part of the Property by a Mortgagee (whether due to foreclosure, trustee's sale, deed in lieu of foreclosure, lease termination, or otherwise) shall be subject to all of the terms and conditions of this Agreement. Any Mortgagee who takes title to the Property or any part of the Property shall be entitled to the benefits arising under this Agreement. 12.3 Mortgagee Not Obligated. Notwithstanding the provisions of this Section 12.3, a Mortgagee will not have any obligation or duty under the terms of this Agreement to perform the obligations of Property Owner or other affirmative covenants of Property Owner, or to guarantee this performance except that: (i) the Mortgagee shall have no right to develop the Project under the Development Regulations without fully complying with the terms of this Agreement; and (ii) to the extent that any covenant to be performed by Property Owner is a condition to the performance of a covenant by City, that performance shall continue to be a condition precedent to City's performance. 12.4 Notice of Default to Mortgaizee; Right of Mortanee to Cure. Each Mortgagee shall, upon written request to City, be entitled to receive written notice from City of: (i) the results of the periodic review of compliance specified in Article 7 of this Agreement, and (ii) any default by Property Owner of its obligations set forth in this Agreement. Each Mortgagee shall have a further right, but not an obligation, to cure the Default within ten (10) days after receiving a Notice of Default with respect to a monetary Default and within thirty (30) days after receiving a Notice of Default with respect to a non -monetary Default. If the Mortgagee can only remedy or cure a non -monetary Default by obtaining possession of the Property, then the Mortgagee shall have the right to seek to obtain possession with diligence and continuity through a receiver or otherwise, and to remedy or cure the non -monetary Default within thirty (30) days after obtaining possession and, except in case of emergency or to protect the public health or safety, City may not exercise any of its judicial remedies set forth in this Agreement to terminate or substantially alter the rights of the Mortgagee until expiration of the thirty (30)-day period. In the case of a non -monetary Default that cannot with diligence be remedied or cured within thirty (30) days, the Mortgagee shall have additional time as is reasonably necessary to remedy or cure the Default, provided the Mortgagee promptly commences to cure the non - monetary Default within thirty (30) days and diligently prosecutes the cure to completion. 13. Bankruptcy. The obligations of this Agreement shall not be dischargeable in bankruptcy. 14. Miscellaneous Terms. 14.1 Reserved. 14.2 Notices. 19 12-214 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Any notice or demand that shall be required or permitted by law or any provision of this Agreement shall be in writing. If the notice or demand will be served upon a Party, it either shall be personally delivered to the Party; deposited by a reliable courier service that provides a receipt showing date and time of delivery with courier charges prepaid. The notice or demand shall be addressed as follows: TO CITY: City of Newport Beach 100 Civic Center Drive Newport Beach, California 92660 Attn: City Manager With a copy to: City of Newport Beach 100 Civic Center Drive Newport Beach, California 92660 Attn: City Attorney TO PROPERTY OWNER: With a copy to: Either Party may change the address stated in this Section 13.1 by delivering notice to the other Party in the manner provided in this Section 13.1, and thereafter notices to such Party shall be addressed and submitted to the new address. Notices delivered in accordance with this Agreement shall be deemed to be delivered upon the earlier of. (i) the date received or (iii) three business days after deposit in the mail as provided above. 14.3 Project as a Private Undertaking Any future Development of the Project is a private undertaking. Neither Party will be acting as the agent of the other in any respect, and each Party will be an independent contracting entity with respect to the terms, covenants, and conditions set forth in this Agreement. This Agreement forms no partnership, joint venture, or other association of any kind. The only relationship between the Parties is that of a government entity regulating the Development of private property by the owner or user of the Property. 14.4 Cooperation. Each Party shall cooperate with and provide reasonable assistance to the other Party to the extent consistent with and necessary to implement this Agreement. Upon the request of a Party at any time, the other Party shall promptly execute, with acknowledgement or affidavit if reasonably required, and file or record the required instruments and writings and take any actions as may be reasonably necessary to implement this Agreement or to evidence or consummate the transactions contemplated by this Agreement. 14.5 Estoppel Certificates. 20 12-215 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 At any time, either Party may deliver written notice to the other Party requesting that that Party certify in writing that, to the best of its knowledge: (i) this Agreement is in full force and effect and is binding on the Party; (ii) this Agreement has not been amended or modified either orally or in writing or, if this Agreement has been amended, the Party providing the certification shall identify the amendments or modifications; and (iii) the requesting Party is not in Default in the performance of its obligations under this Agreement and no event or situation has occurred that with the passage of time or the giving of Notice or both would constitute a Default or, if such is not the case, then the other Party shall describe the nature and amount of the actual or prospective Default. The Party requested to furnish an estoppel certificate shall execute and return the certificate within thirty (30) days following receipt. Requests for the City to furnish an estoppel certificate shall include reimbursement for all administrative costs incurred by the City including reasonable attorney's fees incurred by the City in furnishing an estoppels certificate. 14.6 Rules of Construction. The singular includes the plural; the masculine and neuter include the feminine; "shall" is mandatory; and "may" is permissive. 14.7 Time Is of the Essence. Time is of the essence regarding each provision of this Agreement as to which time is an element. 14.8 Waiver. The failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, and failure by a Party to exercise its rights upon a Default by the other Party, shall not constitute a waiver of that Party's right to demand strict compliance by the other Party in the future. 14.9 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be identical and may be introduced in evidence or used for any other purpose without any other counterpart, but all of which shall together constitute one (1) and the same agreement. 14.10 Entire Agreement. This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings, both written and oral, between the Parties with respect to the subject matter addressed in this Agreement. 14.11 Severability. The Parties intend that each and every obligation of the Parties is interdependent and interrelated with the other, and if any provision of this Agreement or the application of the provision to any Party or circumstances shall be held invalid or unenforceable to any extent, it is 21 12-216 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 the intention of the Parties that the remainder of this Agreement or the application of the provision to persons or circumstances shall be rendered invalid or unenforceable. The Parties intend that neither Party shall receive any of the benefits of the Agreement without the full performance by such Party of all of its obligations provided for under this Agreement. Without limiting the generality of the foregoing, the Parties intend that Property Owner shall not receive any of the benefits of this Agreement if any of Property Owner's obligations are rendered void or unenforceable as the result of any third party litigation, and City shall be free to exercise its legislative discretion to amend or repeal the Development Regulations applicable to the Property and Property Owner shall cooperate as required, despite this Agreement, should third party litigation result in the nonperformance of Property Owner's obligations under this Agreement. The provisions of this Section 14.11 shall apply regardless of whether the Effective Date occurs and after the Termination Date. 14.12 Construction. This Agreement has been drafted after negotiation and revision. Both City and Property Owner are sophisticated parties who were represented by independent counsel throughout the negotiations or City and Property Owner had the opportunity to be so represented and voluntarily chose to not be so represented. City and Property Owner each agree and acknowledge that the terms of this Agreement are fair and reasonable, taking into account their respective purposes, terms, and conditions. This Agreement shall therefore be construed as a whole consistent with its fair meaning and applicable principle or presumptions of contract construction or interpretation, if any, shall be used to construe the whole or any part of this Agreement in favor of or against either Party. 14.13 Successors and Assigns: Constructive Notice and Acceptance. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to Development of the Property: (i) is for the benefit of and is a burden upon every portion of the Property; (ii) runs with the Property and each portion thereof; and (iii) is binding upon each Party and each successor in interest during its ownership of the Property or any portion thereof. Every person or entity who now or later owns or acquires any right, title, or interest in any part of the Project or the Property is and shall be conclusively deemed to have consented and agreed to every provision of this Agreement. This Section 14.13 applies regardless of whether the instrument by which such person or entity acquires the interest refers to or acknowledges this Agreement and regardless of whether such person or entity has expressly entered into an assignment and assumption agreement as provided for in Section 11. 14.14 No Third Party Beneficiaries. The only Parties to this Agreement are City and Property Owner. This Agreement does not involve any third party beneficiaries, and it is not intended and shall not be construed to benefit or be enforceable by any other person or entity. 14.15 Applicable Law and Venue. 22 12-217 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 This Agreement shall be construed and enforced consistent with the internal laws of the State of California, without regard to conflicts of law principles. Any action at law or in equity arising under this Agreement or brought by any Party for the purpose of enforcing, construing, or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, or the United States District Court for the Central District of California. The Parties waive all provisions of law providing for the removal or change of venue to any other court. 14.16 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect construction or interpretation of this Agreement. 14.17 Incorporation of Recitals and Exhibits. All of the Recitals are incorporated into this Agreement by this reference. Exhibits A and B are attached to this Agreement and incorporated by this reference as follows: EXHIBIT DESCRIPTION DESIGNATION A Legal Description of Property B Depiction of the Property 14.18 Recordation. The City Clerk of City shall record this Agreement and any amendment, modification, or cancellation of this Agreement in the Office of the County Recorder of the County of Orange within the period required by California Government Code section 65868.5 and City of Newport Beach Municipal Code section 15.45.090. The date of recordation of this Agreement shall not modify or amend the Effective Date or the Termination Date. 23 12-218 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: Aaron C. Harp, City Attorney SIGNATURE PAGE TO DEVELOPMENT AGREEMENT "OWNER" Intracorp Socal-1, LLC, a Delaware limited liability company By: _ Name: Title: By: _ Name: Title: "CITY" CITY OF NEWPORT BEACH, a municipal corporation and charter city , Mayor 24 12-219 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 STATE OF CALIFORNIA COUNTY OF ORANGE On , before me, the undersigned, a Notary Public in and for said State, personally appeared and , personally known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities and that by their signature on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. Witness my hand and official seal. Notary Public in and for said County and State STATE OF CALIFORNIA COUNTY OF ORANGE On , before me, the undersigned, a Notary Public in and for said State, personally appeared and , personally known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities and that by their signature on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. Witness my hand and official seal. Notary Public in and for said County and State -25- 12-220 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY PARCEL 1 OF RESUBDIVISION NO. 341 12-221 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 EXHIBIT B DEPICTION OF PROPERTY - ._......_......_._..._.....___ I _.._........ i T _ i A10-00773 v4 01.06.11 FINAL 12-222 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 29 of 41 1 W1:1111 M:11h AFFORDABLE HOUSING IMPLEMENTATION PLAN 12-223 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 1401 QUAIL STREET, NEWPORT BEACH, CA 92660 AFFORDABLE HOUSING IMPLEMENTATION PLAN AND DENSITY BONUS APPLICATION SUBMITTED NOVEMBER 28, 2023 12-224 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Project Description & Affordability Level The developer, Intracorp Homes ("Developer") is proposing the 1401 Quail Street residential development (described herein as "1401 Quail Street") on a 1.71 net acre site located in the Newport Place area. The site is located west of the intersection of Quail Street and Spruce Avenue. The project site is governed by the Newport Place Specific Plan, which has a 30 du / acre minimum in the Planned Community Residential Overlay. The site is currently not under the Residential Overlay, but the application includes an amendment to the Planned Community text to include it. The Residential Overlay requires a minimum of 15% of the base units be set aside as affordable to lower -income households. Lower -income households are defined as those making less than 80% of the area median income, as adjusted for family size by the United States Department of Housing and Urban Development. The Developer is proposing a for -sale development consisting of 67 residential condominium units. Of the 67 units, 52 are Base Units and 15 are Density Bonus units. To comply with the 15% affordability requirement of the Residential Overlay, 6 units will be set aside for Very Low -Income households and 2 units will be set aside for Low Income households (15 percent of 52 Base Units). Eligibility for Density Bonus The 1401 Quail Street development will provide 6 units affordable to Very Low -Income households, 10% of the Base Units as outlined in Table 1. As a result, the project is eligible for a 32.5% density bonus pursuant to the provisions of Government Code Section 65915. Homes Prices for the income -restricted units will be computed in accordance with Health and Safety Code Sec. 50053, as required by Government Code Section 65915(c)(2). Density Bonus Computation and Term of Affordability The density bonus computation for the project per Government Code Section 65915 is shown in Table 1: Table 1 Project Area (acres) 1.71 Allowable Density (du/ac) 30 Allowable Residential Units Before Density Bonus (Base Units) 52 Very Low Income Units Set Aside (10% of base) 6 Eligible Density Bonus 32.5% 17 Total Allowable Units with Density Bonus 69 Total Units Proposed 67 The Developer intends to build the project as a for -sale residential condominium community. The income - restricted units will have affordability restrictions on the sale and conveyance of the units under an equity sharing agreement, per Government Code Section 65915(c)(2). 12-225 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Reduction in Parking The 1401 Quail Street development meets the criteria of subdivision (b) of Government Code Sec. 65915 and Section 20.32.030 of the City's Zoning Code by providing more than ten percent (10%) of the total units of a housing development (excluding any units permitted by the density bonus awarded pursuant to that section) for Low Income households. Government Code Section 65915(p) and Section 20.32.060 of the City's Zoning Code provides the following: (1) Upon the request of the developer, no city, county, or city and county shall require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of subdivision (b), that exceeds the following ratios: a. Zero to one bedrooms: one onsite parking space. b. Two to three bedrooms: one and one-half onsite parking spaces. (2) If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. Table 2 is a summary of Government Code Sec. 65915 parking requirements vs. spaces to be provided: Table 2 The Developer requests that parking requirements be calculated in accordance with Government Code Sec. 65915(p). Development Incentive Request Pursuant to Government Code Section 65915(d)(1) and Section 20.32.070 of the City's Zoning Code, the Developer is entitled to two (2) concessions or incentive as a result of providing at least ten percent (10%) of the units as affordable for Very Low Income households. In addition, Government Code Section 65915(e)(1) also entitles developers to waivers or modifications of development standards that if applied, would physically preclude development of housing with the provided density bonus. The Developer requests the following development incentives: 1) Park In -lieu Fee Payment. General Plan Land Use Policy LU 6.15.13 requires the dedication and improvement of a neighborhood park. However, this requirement may be waived where it can be demonstrated that the development site is too small to feasibly accommodate the park or inappropriately located to serve the needs of nearby residents. Policy LU6.15.13 requires the payment of an in -lieu fee to the City for the acquisition and improvement of other properties as 12-226 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 parklands to serve the airport area if the neighborhood park dedication is waived. In this case, the 1.71-acre Project site is too small to feasibly accommodate the park and the Developer requests a reduction of the in -lieu fee as a non -mandatory concession. This reduction of an in -lieu fee is an actual cost reduction that makes the development of the affordable housing units financially feasible. 2) Affordable Unit Mix. Section 20.32.110 of the City's Municipal Code provides that "Affordable units shall reflect the range of numbers of bedrooms provided in the residential development project as a whole." As illustrated in the table below, the Project provides a higher percentage of affordable 2 Bedroom units compared to the market rate units provided. Granting this incentive will result in identifiable, financially sufficient, and actual cost reductions by reducing the higher housing cost subsidy associated with 2- and 3-bedroom units and thereby affording additional revenue to support the feasibility of providing affordable housing units. Developer requests that the 8 income -restricted units be provided utilizing the following unit mixes: Table 3 NUMBER TOTAL AFFORDABLE UNIT TYPE OF UNITS UNITS Bedroom Bedroom As required by Government Code Sec. 65915(d)(1)(A), these incentives will result in identifiable and actual cost reductions to provide for the affordable housing payments to be set in accordance with Government Code Sec. 65915(c)(2). Development Standard Waivers Section 20.32.080 of the City's Municipal Code provides that "In addition to requesting an incentive or concession, an applicant for a density bonus may also submit a proposal to the City to waive or reduce an unlimited number of development standards that would otherwise preclude or inhibit construction of the housing development at the densities or with the incentives permitted by this chapter. When an applicant makes a request for a waiver, the review authority shall grant the request unless any of the following findings are made: 1) The waiver or reduction of development standards would have a specific adverse impact upon public health or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. 2) The waiver or reduction of development standards would have an adverse impact on any real property listed in the California Register of Historical Resources. 3) The waiver or reduction of development standards would be contrary to State or Federal law." 12-227 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 The Developer proposes the following development standard waivers: 1) Street setback requirements. The Newport Place Planned Community requires street setbacks of 30 feet from property lines. In this case, 30-foot setbacks along Quail Street and Spruce Street would substantially decrease the development of the footprint of this project. The Project is designed with approximately 10-foot setbacks to Quail Street and 11-foot setbacks to Spruce Street. The reduced street setbacks are necessary to provide sufficient area for the building as well as a 26-foot wide, 2-way driveway at the entrance to the proposed community that also serves as a required fire lane. The reduced setbacks will be sufficiently deep to provide a significant landscape buffer. 2) Building height requirement. The Newport Place Planned Community (PC-11) limits residential building height to 55 feet from established grade. In this case, a higher building height is necessary to accommodate 67 residential units. The Project is designed with a height of 86.4 feet from established grade. 3) General Plan Park dedication requirement. General Plan Land Use Policy LU 6.15.13 requires a public park equal to eight percent of the gross land area of the development, or a minimum 0.5- acres, whichever is greater, be provided. In this case, the project is required to provide a 0.50- acre public park. The 1.71-acre Project site is too small to feasibility accommodate the required 0.50-acre park and if it were dedicated, the resulting smaller site could not physically accommodate the proposed affordable housing development. 4) Municipal Code Park dedication requirement. Sections 19.52.040 and 19.52.050 of the City's municipal code requires physical land to be dedicated to parks for projects containing more than 50 units. The requirement is 5 acres per 1,000 persons residing in a subdivision. In this case, using 2.2 persons per household, the Project would be required to dedicated 0.74 acres for park. The 1.71-acre Project site is too small to feasibility accommodate the required 0.74-acre park and if it were dedicated, the resulting smaller site could not physically accommodate the proposed affordable housing development. Income Limits Very Low Income Households are defined as households whose gross income does not exceed 50% of area median income, adjusted for household size while Low Income households shall not exceed 80% of area median income. Table 4 below shows the maximum income limits for 2023 as determined by the U.S. Department of Housing and Urban Development and the California Department of Housing and Community Development ("HCD") for Low Income households with household sizes appropriate for the 1401 Quail Street development: Table 4 AFFORDABLE • • • Orange County Median Income (3-Person Household) $115,000 Very Low Income (50% AMI) $57,500 Low Income (80% AMI) $92,000 12-228 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Housing Payment Limits for Affordable Homes The 8 income -restricted units shall be purchase at an affordable cost calculated in accordance with the provisions of Section 50053 of the Health and Safety Code. That section requires that the housing payment for a two -bedroom unit assumes a three -person household for housing payment calculation purposes. For Very Low Income households in owner -occupied housing, Section 50052.5 of the Health and Safety Code limits affordable housing payment to 30% times 50% of area median income, as calculated in Table 5 below. For Low Income households in owner -occupied housing, affordable housing payment is limited to 30% times 70% of area median income. The values calculated are then adjusted by a utility allowance as determined annually by the County of Orange Housing & Community Services Department. As of October 1, 2022, the reduction for the utility allowance is $238.00 per month ($2,856 per year) for a two - bedroom unit. The utility allowance utilized assumes gas cooking, space heating, and water heating, as well as air conditioning, water and sewer, and trash fees which will be paid by the homeowner. The maximum housing payment levels before property taxes, HOA, maintenance, and insurance for 2023 are shown in Table 5 below: Table 5 VLI $57,500 $17,250 $2,856 $7,800 $780 $5,814 Low $80,500 $24,150 $2,856 $7,800 $1,597 $11,897 The Developer will enter into an affordable housing agreement, in recordable form, with the City prior to obtaining the first building permit for any residential unit. That agreement will ensure that the maximum housing payment for the income -restricted units will be calculated using the methodologies as utilized in Table 5. The housing payment rates shown will be updated prior to the commencement of sales activities and on an ongoing basis to reflect then current income limits, utility allowances, and any changes in applicable regulations and statutes. The sales value for the affordable units will be calculated in the quarter that they will be available for sale. The current estimated sales price for the affordable units is shown in Tables 6A and 6B. 12-229 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Table 6A A. Income Allocated to Housing Area Median Income $115,000 50% Area Median Income 57,500 Income Allocated to Housing (30%) 17,250 B. Recurring Costs Annual Utilities Allowance $2,856 HOA, Maintenance, & Insurance 7,800 Property Taxes (1.11 % of Sales Price) 780 C. Income Available for Mortgage $5,814 D. Affordable Sales Price Supportable 30-Year Mortgage at 7.9% Interest Rate $66,657 Home Buyer Down Payment (5% of Affordable Sales Price) 3,333 Affordable Sales Price Table 613 A. Income Allocated to Housing Area Median Income $115,000 70% Area Median Income 80,500 Income Allocated to Housing (30%) 24,150 B. Recurring Costs Annual Utilities Allowance $2,856 HOA, Maintenance, & Insurance 7,800 Property Taxes (1.11 % of Sales Price) 1,597 C. Income Available for Mortgage $11,897 D. Affordable Sales Price Supportable 30-Year Mortgage at 7.9% Interest Rate $136,408 Home Buyer Down Payment (5% of Affordable Sales Price) 6,820 Affordable Sales Price $143,228 12-230 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Equity Sharing Agreement Per Section 20.32.140 of the City's Municipal Code, if a Very Low or Low Income unit is initially occupied by a very low or low-income household and offered at an affordable housing cost, the unit will be subject to an equity sharing agreement. In lieu of an equity sharing agreement, the affordable units could per sold to a nonprofit housing corporation pursuant to six requirements in the above section. Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the seller's proportionate share of appreciation and the City of Newport Beach shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within five years for any purposes that promote affordable home ownership. The Equity Sharing Agreement shall adhere to the following requirements: • The City's initial subsidy shall be equal to the fair market value of the home at the time of the initial sale, minus the initial sale price, plus the amount of any down payment or mortgage assistance. If upon resale, the market value is lower than the initial market value, then the value at the time of resale shall be used as the initial market value. • The City of Newport Beach's proportionate share of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the home at the time of the initial sale: and • The initial subsidy shall include any incentives granted by the City of Newport Beach and shall be equal to the monetary equivalent of the incentives. Requested City of Newport Beach Assistance Financial Assistance The Developer is requesting a reduction of the park in -lieu fee payment. 12-231 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 30 of 41 EXHIBIT "F" CONDITIONS OF APPROVAL (Project -specific conditions are in italics) Planning Division 1. The development shall be in substantial conformance with the approved site plan, floor plans, landscape plans, and building elevations stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2. The Project is subject to compliance with all applicable submittals approved by the City of Newport Beach (City) and all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 3. Entitlements granted under PA2023-0040 shall expire unless exercised within 24 months from the date of approval as specified in Section 20.54.060 (Time Limits and Extensions) of the Newport Beach Municipal Code (NBMC), unless an extension is otherwise granted by the City for a period of time provided in the Development Agreement pursuant to the provisions of California Government Code Section 66452.06(a). 4. The proposed residential development shall consist of 67 for -sale condominiums, inclusive of 52 base units and 15 density bonus units, consistent with the approved Affordable Housing Implementation Plan (AHIP). 5. A minimum of 8 condominium units shall be made affordable to low and very low-income households, consistent with the approved Residences at 1401 Quail Street AHIP dated November 28, 2023. 6. Prior to the issuance of a building permit, an affordable housing agreement shall be executed in a recordable form as required by the City Attorney's Office. 7. On -site recreational amenities: private balconies, a clubroom, a pool deck, seating area, and lounge as illustrated on the approved plans shall be provided and maintained for the duration of the Project. The exact mix of amenities may be modified from the original approved plans subject to the approval by the Community Development Director. The total floor area or open space area dedicated to on -site recreational amenities shall not be reduced. 8. Maximum building height of the residential structure shall not exceed 81 feet, inclusive of architectural features and mechanical equipment. 9. The residential parking garage shall have the following features: 12-232 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 31 of 41 a. A safe, secure and well lighted and signed pedestrian paths for all users. b. Adequate and uniform lighting throughout each parking level. c. Panic alarms and two-way communication systems in prominent locations on each parking level. 10. Prior to the issuance of a building permit, an acoustical analysis report, prepared by an acoustical engineer, shall be submitted to the Planning Division describing the acoustical design features of the structure that will satisfy the exterior and interior noise standards. The Project shall be attenuated in compliance with the report. 11. The residential structure shall be attenuated to provide an interior noise level of 45 dBA CNEL or less. Use of walls, berms, interior noise insulation, double paned windows, advanced insulation systems, or other noise mitigation measures, as deemed appropriate by the City shall be incorporated in the design of the new residential structure to provide adequate noise attenuation. 12. The design of the residential structure shall provide adequate noise attenuation between adjacent units (common floor/ceiling) in accordance with the California Building Code (CBC). 13. Advanced air filtration systems for buildings shall be considered to promote cleaner air without the opening of windows. 14. Prior to the issuance of a building permit, the Applicant shall submit to the Community Development Department a final copy of FAA Determination of No Hazard to Air Navigation reflective of the proposed building height. 15. The Applicant shall comply with all applicable provisions of NBMC Chapter 15.38, Fair Share Traffic Contribution Ordinance, and Chapter 15.42, Major Thoroughfare and Bridge Fee Program. Prior to the issuance of a building permit, Fair Share and Transportation Corridor Agency fees shall be paid for the Project. 16. Prior to the issuance of a building permit, the Applicant shall pay applicable school fees for the Project. 17. Prior to the issuance of a building permit, the Applicant shall pay applicable property development tax as required pursuant to NBMC Chapter 3.12 (Property Development Tax) for the Project. 18. Prior to the issuance of a building permit, the Applicant shall pay the Project's fair share of public safety fee, as determined by the Community Development Director, to fund the cost of staffing, services and equipment as necessary for fire -related public safety purposes. 12-233 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 32 of 41 19. The property management company shall distribute a written disclosure statement prior to sale of any residential unit. The disclosure statement shall indicate that the occupants will be living in an urban type of environment and that the noise, odor, and outdoor activity levels may be higher than a typical suburban residential area. In addition, potential annoyances or inconveniences associated with residing in proximity to airport operations such as noise, vibration, and odor may occur. The disclosure statement shall include a written description of the potential impacts to residents of both the existing environment and potential impacts based upon the allowed uses in the zoning district and proximity to airport. Each and every purchaser shall sign the statement acknowledging that they have received, read, and understand the disclosure statement. The Applicant shall covenant to include within all deeds, leases or contracts conveying any interest in the Project: (1) the disclosure and notification requirement stated herein; (2) an acknowledgment by all grantees or lessees that the property is located within an urban type of environment and that the noise, odor, and outdoor activity levels may be higher than a typical suburban residential area; and (3) acknowledgment that the covenant is binding for the benefit and in favor of the City of Newport Beach. 20. Disturbance to or removal of potential bird nesting habitat shall be prohibited during the migratory bird nesting season (February 1 through August 31) unless a migratory bird nesting survey is completed. If demolition and/or vegetation removal is planned to occur during the migratory bird nesting season (February 1 through August 31), then a migratory bird nesting survey shall be completed in accordance with the following requirements: a. Within three days prior to initiating demolition, tree removals and/or vegetation clearing, a nesting bird survey shall be conducted by a qualified biologist within the suitable habitat to be removed and within a 250-foot radius. b. If the survey reveals no active nesting, the proposed action may proceed. c. If the survey identifies the presence of active sensitive bird nests, then the nests shall not be disturbed unless the qualified biologist verifies through non-invasive methods that either (i) the adult birds have not begun egg -laying and incubation; or (ii) the juveniles from the occupied nests are capable of independent survival. d. If the biologist is not able to verify any of the conditions from sub -item "b,"above, then no disturbance shall occur within a buffer zone specified by the qualified biologist for each nest or nesting site. The buffer zone shall be species - appropriate (no less than 100-foot radius around the nest for non -raptors and no more than a 500-foot radius around the nest for raptors, or as otherwise determined by the qualified biologist) and shall be sufficient to protect the nest from direct and indirect impacts from construction activities. The nests and buffer zones shall be field checked approximately weekly by a qualified biological monitor. The approved buffer zone shall be marked in the field with construction fencing, within which no vegetation clearing or ground disturbance shall commence until the qualified biologist with City concurrence verify that the nests 12-234 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 33 of 41 are no longer occupied and/or juvenile birds can survive independently from the nests. 21. Any substantial modification to the approved Site Development Review plans, as determined by the Community Development Director, shall require an amendment to this Site Development Review application or the processing of a new application. 22. A copy of the Resolution, including conditions of approval Exhibit "F" shall be incorporated into the Building Division and field sets of plans prior to issuance of the building permits. 23. Prior to the issuance of a building permit, Applicant shall submit to the Planning Division an additional copy of the approved architectural plans for inclusion in the Site Development Review file. The plans shall be identical to those approved by all City departments for building permit issuance. The approved copy shall include architectural sheets only and shall be reduced in size to 11 inches by 17 inches. The plans shall accurately depict the elements approved by this Site Development Review and shall highlight the approved elements such that they are readily discernible from other elements of the plans. 24. Prior to the issuance of a building permit, Applicant shall submit a detailed landscape and irrigation plan prepared by a licensed landscape architect for the Project. These plans shall incorporate drought tolerant plantings and water efficient irrigation practices, and the plans shall be approved by the Planning Division. 25. All landscape materials and irrigation systems shall be maintained in accordance with the approved landscape plan. All landscaped areas shall be maintained in a healthy and growing condition and shall receive regular pruning, fertilizing, mowing and trimming. All landscaped areas shall be kept free of weeds and debris. All irrigation systems shall be kept operable, including adjustments, replacements, repairs, and cleaning as part of regular maintenance. 26. The site shall not be excessively illuminated based on the luminance recommendations of the Illuminating Engineering Society of North America, or, if in the opinion of the Director of Community Development, the illumination creates an unacceptable negative impact on surrounding land uses or environmental resources. The Director may order the dimming of light sources or other remediation upon finding that the site is excessively illuminated. 27. Prior to the issuance of a building permit, the Applicant shall prepare photometric study for the Project in conjunction with a final lighting plan for approval by the Planning Division. All outdoor lighting fixtures shall be designed, shielded, aimed, located, and maintained to shield adjacent properties and to not produce glare onto adjacent properties or roadways. Parking lot light fixtures and light fixtures on buildings shall be full cut-off fixtures. 12-235 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 34 of 41 28. Prior to the issuance of Final Certificate of Occupancy, the Applicant shall schedule an evening inspection by the Code and Water Quality Enforcement Division to confirm control of light and glare specified in conditions of approval. 29. 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. 30. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 (Community Noise Control) 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 TOOAM and 10:OOPM Between the hours of 10:OOPM and TOOAM 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 31. 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 either the current business owner, property owner or the leasing agent. 32. 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 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 Sundays or Holidays. 33. Refuse collection shall comply with the Waste Management Plan included in the approved plans. The Applicant's property management company shall contract with a franchised hauler on the City list of authorized companies. 34. All trash shall be stored within the building or within dumpsters stored in the trash enclosure (three walls and a self -latching gate) or otherwise screened from view of neighboring properties, except when placed for pick-up by refuse collection agencies. 35. The Applicant shall ensure that the trash dumpsters and/or receptacles are maintained to control odors. This may include the provision of either fully self-contained dumpsters or periodic steam cleaning of the dumpsters, if deemed necessary by the Planning Division. Cleaning and maintenance of trash dumpsters shall be done in compliance with the provisions of NBMC Title 14 (Water and Sewers), including all future amendments (including Water Quality related requirements). 12-236 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 35 of 41 36. A qualified monitor, one from each consulting tribe (the Juaneno Band of Mission Indians - Acjachemen Nation and the Gabrieleno Band of Mission Indians - Kizh Nation), shall be retained and compensated as Native American Monitors for the project site prior to the commencement of any ground -disturbing activity to the completion of ground disturbing activities to monitor grading and excavation activities. A rotation schedule between the two tribes shall be established with the applicant. Voluntary monitoring by each consulting tribe is permitted on days that the tribe(s) is not scheduled to monitor. 37. The rotating monitors, one from each consulting tribe, shall be retained prior to the commencement of any "ground -disturbing activity" for the subject project at all project locations (i.e., both on -site and any off -site locations that are included in the project description/definition and/or required in connection with the project, including as public improvement work undertaken by the applicant). "Ground -disturbing activity" shall include, but is not limited to, any demolition that includes subterranean impacts, potholing, auguring, boring, grading, excavation, drilling, and trenching. 38. A copy of the executed monitoring agreement shall be submitted to the City prior to the commencement of any ground -disturbing activity, or the issuance of any permit necessary to commence a ground -disturbing activity. 39. Both monitors shall complete daily monitoring logs that will provide descriptions of the relevant ground -disturbing activities, the type of construction activities performed, locations of ground -disturbing activities, soil types, cultural -related materials, and any other facts, conditions, materials, or discoveries of significance to the Tribe. Monitor logs will identify and describe any discovered TCRs, including but not limited to, Native American cultural and historical artifacts, remains, places of significance, etc., (collectively, tribal cultural resources, or "TCR'), as well as any discovered Native American (ancestral) human remains and burial goods. Copies of monitor logs shall be shared between the two monitors and provided to the project applicant/lead agency upon written request to the monitors. 40. On -site tribal monitoring shall conclude upon the latter of the following (1) written confirmation to the consulting tribes from a designated point of contact for the project applicant/lead agency that all ground -disturbing activities and phases that may involve ground -disturbing activities on the project site or in connection with the project are complete; or (2) a determination and written notification by the consulting tribes to the project applicant/lead agency that no future, planned construction activity and/or development/construction phase at the project site possesses the potential to impact TCRs of the consulting tribes. 41. Upon discovery of any TCRs, all construction activities in the immediate vicinity of the discovery shall cease (i.e., within the surrounding 50 feet) and shall not resume until the discovered TCR has been fully assessed by the monitor and/or archaeologist. The monitors will recover and retain all discovered TCRs in the form and/or manner the tribes deem appropriate, in the tribes' sole discretion in coordination with the applicant, and for any purpose the tribes deem appropriate, including for educational, cultural and/or historic purposes. 12-237 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 36 of 41 42. Native American human remains are defined in PRC 5097.98 (d)(1) as an inhumation or cremation, and in any state of decomposition or skeletal completeness. Funerary objects, called associated grave goods in Public Resources Code Section 5097.98, are also to be treated according to this statute. 43. If Native American human remains and/or grave goods are discovered or recognized on the project site, then Public Resource Code 5097.9 as well as Health and Safety Code Section 7050.5 shall be followed. 44. Human remains and grave/burial goods shall be treated alike per California Public Resources Code section 5097.98(d)(1) and (2). 45. Preservation in place (i.e., avoidance) is the preferred manner of treatment for discovered human remains and/or burial goods. 46. Any discovery of human remains/burial goods shall be kept confidential to prevent further disturbance. 47. 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 Residences at 1401 Quail Street including, but not limited to, a General Plan Amendment, Planned Community Development Plan Amendment, Site Development Review, Vesting Tentative Tract Map, Affordable Housing Implementation Plan, Development Agreement and Addendum to the 2006 General Plan Update Program Environmental Impact Report (PA2023-0040). 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. Fire Department 48. Prior to the issuance of any occupancy permits (temporary or final), all fire and life safety systems, and the emergency responder radio system shall be inspected and approved by the Fire Marshal. 49. Prior to the building permit issuance, a fire master plan shall be submitted and approved by the Fire Marshal. 12-238 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 37 of 41 50. Prior to any foundation permit issuance for the garage basement area, a temporary fire department access way, as approved by the Fire Department, shall be provided until the permanent fire access way is installed. Required fire and life safety systems, including the fire sprinkler system, shall be operational in the garage basement areas used for parking by the construction crews and for storage of building materials and construction equipment. 51. One elevator shall be gurney sized and equipped as a medical emergency elevator as CBC Section 3002. 52. Emergency responder radio coverage shall be required to comply with NBFD Guideline D.05 "Public Safety Radio Coverage" and CFC Section 510. 53. Emergency power and Standby Power System shall be required as per CFC Section 604.2.14. 54. An automatic sprinkler system shall be installed in accordance with CFC Section 903.2 amendment shall be provided throughout all buildings. 55. A standpipe system shall be required and installed as per CFC Section 905.3.1. 56. Fire Alarm system shall be provided as per CFC Section 907.2.9. Building Division 57. The Applicant is required to obtain all applicable permits from the City's Building Division and Fire Department. The construction plans must comply with the most recent, City - adopted version of the California Building Code. The construction plans must meet all applicable State Disabilities Access requirements. Approval from the Orange County Health Department is required prior to the issuance of a building permit. 58. The Applicant shall employ the following best available control measures (BACMs) to reduce construction -related air quality impacts: Dust Control • Water all active construction areas at least twice daily. • Cover all haul trucks or maintain at least two feet of freeboard. • Pave or apply water four times daily to all unpaved parking or staging areas. • Sweep or wash any site access points within two hours of any visible dirt deposits on any public roadway. • Cover or water twice daily any on -site stockpiles of debris, dirt or other dusty material. • Suspend all operations on any unpaved surface if winds exceed 25 mph. Emissions • Require 90-day low-NOx tune-ups for off road equipment. • Limit allowable idling to 30 minutes for trucks and heavy equipment. Off -Site Impacts 12-239 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 38 of 41 • Encourage carpooling for construction workers. • Limit lane closures to off-peak travel periods. • Park construction vehicles off traveled roadways. • Wet down or cover dirt hauled off -site. • Sweep access points daily. • Encourage receipt of materials during non -peak traffic hours. �Iacement Sandbag construction sites for erosion control. Fill • The number and type of equipment for dirt pushing will be limited on any day to ensure that SCAQMD significance thresholds are not exceeded. • Maintain and utilize a continuous water application system during earth placement and compaction to achieve a 10 percent soil moisture content in the top six-inch surface layer, subject to review/discretion of the geotechnical engineer. 59. Prior to the issuance of a grading permit, a Storm Water Pollution Prevention Plan (SWPPP) and Notice of Intent (NOI) to comply with the General Permit for Construction Activities shall be prepared, submitted to the State Water Quality Control Board for approval and made part of the construction program. The Project Applicant will provide the City with a copy of the NOI and their application check as proof of filing with the State Water Quality Control Board. This plan will detail measures and practices that will be in effect during construction to minimize the project's impact on water quality. 60. Prior to the issuance of a grading permit, the Applicant shall prepare and submit a Water Quality Management Plan (WQMP) for the proposed project, subject to the approval of the Building Division and Code and Water Quality Enforcement Division. The WQMP shall provide appropriate Best Management Practices (BMPs) to ensure that no violations of water quality standards or waste discharge requirements occur. 61. A list of "good housekeeping" practices will be incorporated into the long-term post - construction operation of the site to minimize the likelihood that pollutants will be used, stored or spilled on the site that could impair water quality. These may include frequent parking area vacuum truck sweeping, removal of wastes or spills, limited use of harmful fertilizers or pesticides, and the diversion of storm water away from potential sources of pollution (e.g., trash receptacles and parking structures). The Stage 2 WQMP shall list and describe all structural and non-structural BMPs. In addition, the WQMP must also identify the entity responsible for the long-term inspection, maintenance, and funding for all structural (and if applicable Treatment Control) BMPs. 62. Prior to the building plan check submittal, the Applicant shall submit the Project for Building Code Preliminary Review. 63. The residential dwelling units and their common use areas shall comply with Housing Accessibility per Chapter I IA. 64. The nonresidential portion of the development shall comply with the public accommodation requirements per Chapter 11 B. 12-240 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 39 of 41 Public Works Department 65. A Tract Map shall be recorded prior to the sale of any residential units. The map shall be prepared on the California coordinate system (NAD83). Prior to recordation of the Map, the surveyor/engineer preparing the Map shall submit to the County Surveyor and the City of Newport Beach a digital -graphic file of said map in a manner described in Sections 7-9-330 and 7-9-337 of the Orange County Subdivision Code and Orange County Subdivision Manual, Sub Article 18. The Map to be submitted to the City of Newport Beach shall comply with the City's CADD standards. Scanned images will not be accepted. 66. Prior to the recordation of the tract map, the surveyor/engineer preparing the map shall tie the boundary of the map into the Horizontal Control System established by the County Surveyor in a manner described in Sections 7-9-330 and 7-9-337 pf the Orange County Subdivision Code and Orange County Subdivision Manual, Sub Article 18. Monuments (one -inch iron pipe with tag) shall be set On Each Lot Corner unless otherwise approved by the Subdivision Engineer. Monuments shall be protected in place if installed prior to completion of construction project. 67. Prior to the recordation of the Tract Map, a Subdivision Agreement shall be obtained and approved by the City Council consistent with the Subdivision Code Section 19.36.010. 68. Prior to Final Map approval, the applicant shall provide a Faithful Performance Bond and Labor and Materials Bond, each for 100%of the estimated improvement costs for the improvements in the public right of way, as prepared by a Registered Civil Engineer and approved by the Public Works Director, for each of the following, but not limited to, public and private improvements, street improvements, monumentation, sidewalks, striping, signage, street lights, sewer systems, water systems, storm drain systems, water quality management systems, erosion control, landscaping and irrigation within the public right of way, common open spaces areas accessible by the public, fire access and off -site improvements required as part of the project. 69. Warranty Bond for a minimum of 10%of the engineers cost estimate (final percentage to be determined by the Public Works Director) to be released 1-year after the improvements have been accepted. 70. All improvements shall be constructed as required by Ordinance and the Public Works Department. 71. An encroachment permit shall be required for all work activities within the public right- of-way. 72. The final Construction Management Plan (CMP) shall be reviewed and approved by the Community Development Director and the City Traffic Engineer prior to building permit issuance. 12-241 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 40 of 41 73. A Parking Management Plan (PMP) shall be reviewed and approved by the Community Development Director and City Traffic Engineer prior to building permit issuance. The PMP shall include information regarding gate operation, move -in and move -out, ride - share area, guest parking areas and residential parking areas. 74. Parking layout and ramp slopes shall comply with the City Parking Lot Standard 805. Dead-end drive aisle in public areas and/or unassigned parking areas shall provide a dedicated turn around space and minimum 5-foot drive aisle extension. 75. The applicant shall reconstruct all existing broken and/or otherwise damaged curb, gutter and sidewalk along the Spruce Street and Quail Street frontages per City Standards. 76. All deliveries shall be accommodated on -site and prohibited from parking or stopping within the public right of way. Only ride share vehicles shall be permitted to utilize the pull-out area located on Spruce Street. 77. The proposed driveway shall be constructed per City Standard 161. The radius for the Bristol Street North driveway shall be minimum 20-foot radius and the radius for the Spruce Street driveway shall be 15-foot minimum. 78. All on -site fire hydrants shall be privately owned and maintained. 79. All landscaping and walls along the Spruce Street and Quail Street frontages shall comply with the City's line of sight standard 105. 80. Final design of the water and sewer services is subject to further review by the Public Works Department during plan check. 81. Prior to the issuance of a Certificate of Occupancy, the Applicant shall coordinate with the City to complete the required off -site improvements identified in the Sewer Capacity Study dated October 20, 2023, to the satisfaction of the Public Works and Utilities Directors. The Applicant shall be responsible for their fair share cost of the improvements as determined by the City, which may include the payment and construction of the entire improvement. 12-242 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 30 of 41 EXHIBIT "F" CONDITIONS OF APPROVAL (Project -specific conditions are in italics) Planning Division The development shall be in substantial conformance with the approved site plan, floor plans, landscape plans, and building elevations stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2. The Project is subject to compliance with all applicable submittals approved by the City of Newport Beach (City) and all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 3. Entitlements granted under PA2023-0040 shall expire unless exercised within 24 months from the date of approval as specified in Section 20.54.060 (Time Limits and Extensions) of the Newport Beach Municipal Code (NBMC), unless an extension is otherwise granted by the City for a period of time provided in the Development Agreement pursuant to the provisions of California Government Code Section 66452.06(a). 4. The proposed residential development shall consist of 67 for -sale condominiums, inclusive of 52 base units and 15 density bonus units, consistent with the approved Affordable Housing Implementation Plan (AHIP). 5. A minimum of 8 condominium units shall be made affordable to low and very low-income households, consistent with the approved Residences at 1401 Quail Street AHIP dated November 28, 2023. 6. Prior to the issuance of a building permit, an affordable housing agreement shall be executed in a recordable form as required by the City Attorney's Office. 7. On -site recreational amenities: private balconies, a clubroom, a pool deck, seating area, and lounge as illustrated on the approved plans shall be provided and maintained for the duration of the Project. The exact mix of amenities may be modified from the original approved plans subject to the approval by the Community Development Director. The total floor area or open space area dedicated to on -site recreational amenities shall not be reduced. 8. Maximum building height of the residential structure shall not exceed 81 feet, inclusive of architectural features and mechanical equipment. 9. The residential parking garage shall have the following features: 12-243 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 31 of 41 a. A safe, secure and well lighted and signed pedestrian paths for all users. b. Adequate and uniform lighting throughout each parking level. c. Panic alarms and two-way communication systems in prominent locations on each parking level. 10. Prior to the issuance of a building permit, an acoustical analysis report, prepared by an acoustical engineer, shall be submitted to the Planning Division describing the acoustical design features of the structure that will satisfy the exterior and interior noise standards. The Project shall be attenuated in compliance with the report. 11. The residential structure shall be attenuated to provide an interior noise level of 45 dBA CNEL or less. Use of walls, berms, interior noise insulation, double paned windows, advanced insulation systems, or other noise mitigation measures, as deemed appropriate by the City shall be incorporated in the design of the new residential structure to provide adequate noise attenuation. 12. The design of the residential structure shall provide adequate noise attenuation between adjacent units (common floor/ceiling) in accordance with the California Building Code (CBC). 13. Advanced air filtration systems for buildings shall be considered to promote cleaner air without the opening of windows. 14. Prior to the issuance of a buildinq permit, the Applicant shall submit to the Community Development Department a final copy of FAA Determination of No Hazard to Air Navigation reflective of the proposed building height. 15. The Applicant shall comply with all applicable provisions of NBMC Chapter 15.38, Fair Share Traffic Contribution Ordinance, and Chapter 15.42, Major Thoroughfare and Bridge Fee Program. Prior to the issuance of a buildinq permit, Fair Share and Transportation Corridor Agency fees shall be paid for the Project. 16. Prior to the issuance of a building permit, the Applicant shall pay applicable school fees for the Project. 17. Prior to the issuance of a buildinq permit, the Applicant shall pay applicable property development tax as required pursuant to NBMC Chapter 3.12 (Property Development Tax) for the Project. 18. Prior to the issuance of a buildinq permit, the Applicant shall pay the Project's fair share of public safety fee, as determined by the Community Development Director, to fund the cost of staffing, services and equipment as necessary for fire -related public safety purposes. 12-244 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 32 of 41 19. The property management company shall distribute a written disclosure statement prior to sale of any residential unit. The disclosure statement shall indicate that the occupants will be living in an urban type of environment and that the noise, odor, and outdoor activity levels may be higher than a typical suburban residential area. In addition, potential annoyances or inconveniences associated with residing in proximity to airport operations such as noise, vibration, and odor may occur. The disclosure statement shall include a written description of the potential impacts to residents of both the existing environment and potential impacts based upon the allowed uses in the zoning district and proximity to airport. Each and every purchaser shall sign the statement acknowledging that they have received, read, and understand the disclosure statement. The Applicant shall covenant to include within all deeds, leases or contracts conveying any interest in the Project: (1) the disclosure and notification requirement stated herein; (2) an acknowledgment by all grantees or lessees that the property is located within an urban type of environment and that the noise, odor, and outdoor activity levels may be higher than a typical suburban residential area; and (3) acknowledgment that the covenant is binding for the benefit and in favor of the City of Newport Beach. 20. Disturbance to or removal of potential bird nesting habitat shall be prohibited during the migratory bird nesting season (February 1 through August 31) unless a migratory bird nesting survey is completed. If demolition and/or vegetation removal is planned to occur during the migratory bird nesting season (February 1 through August 31), then a migratory bird nesting survey shall be completed in accordance with the following requirements: a. Within three days prior to initiating demolition, tree removals and/or vegetation clearing, a nesting bird survey shall be conducted by a qualified biologist within the suitable habitat to be removed and within a 250-foot radius. b. If the survey reveals no active nesting, the proposed action may proceed. c. If the survey identifies the presence of active sensitive bird nests, then the nests shall not be disturbed unless the qualified biologist verifies through non-invasive methods that either (i) the adult birds have not begun egg -laying and incubation; or (ii) the juveniles from the occupied nests are capable of independent survival. d. If the biologist is not able to verify any of the conditions from sub -item "b,"above, then no disturbance shall occur within a buffer zone specified by the qualified biologist for each nest or nesting site. The buffer zone shall be species - appropriate (no less than 100-foot radius around the nest for non -raptors and no more than a 500-foot radius around the nest for raptors, or as otherwise determined by the qualified biologist) and shall be sufficient to protect the nest from direct and indirect impacts from construction activities. The nests and buffer zones shall be field checked approximately weekly by a qualified biological monitor. The approved buffer zone shall be marked in the field with construction fencing, within which no vegetation clearing or ground disturbance shall commence until the qualified biologist with City concurrence verify that the nests 12-245 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 33 of 41 are no longer occupied and/or juvenile birds can survive independently from the nests. 21. Any substantial modification to the approved Site Development Review plans, as determined by the Community Development Director, shall require an amendment to this Site Development Review application or the processing of a new application. 22. A copy of the Resolution, including conditions of approval Exhibit "F" shall be incorporated into the Building Division and field sets of plans prior to issuance of the building permits. 23. Prior to the issuance of a building permit, Applicant shall submit to the Planning Division an additional copy of the approved architectural plans for inclusion in the Site Development Review file. The plans shall be identical to those approved by all City departments for building permit issuance. The approved copy shall include architectural sheets only and shall be reduced in size to 11 inches by 17 inches. The plans shall accurately depict the elements approved by this Site Development Review and shall highlight the approved elements such that they are readily discernible from other elements of the plans. 24. Prior to the issuance of a building permit, Applicant shall submit a detailed landscape and irrigation plan prepared by a licensed landscape architect for the Project. These plans shall incorporate drought tolerant plantings and water efficient irrigation practices, and the plans shall be approved by the Planning Division. 25. All landscape materials and irrigation systems shall be maintained in accordance with the approved landscape plan. All landscaped areas shall be maintained in a healthy and growing condition and shall receive regular pruning, fertilizing, mowing and trimming. All landscaped areas shall be kept free of weeds and debris. All irrigation systems shall be kept operable, including adjustments, replacements, repairs, and cleaning as part of regular maintenance. 26. The site shall not be excessively illuminated based on the luminance recommendations of the Illuminating Engineering Society of North America, or, if in the opinion of the Director of Community Development, the illumination creates an unacceptable negative impact on surrounding land uses or environmental resources. The Director may order the dimming of light sources or other remediation upon finding that the site is excessively illuminated. 27. Prior to the issuance of a building permit, the Applicant shall prepare photometric study for the Project in conjunction with a final lighting plan for approval by the Planning Division. All outdoor lighting fixtures shall be designed, shielded, aimed, located, and maintained to shield adjacent properties and to not produce glare onto adjacent properties or roadways. Parking lot light fixtures and light fixtures on buildings shall be full cut-off fixtures. 12-246 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 34 of 41 28. Prior to the issuance of Final Certificate of Occupancy, the Applicant shall schedule an evening inspection by the Code and Water Quality Enforcement Division to confirm control of light and glare specified in conditions of approval. 29. 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. 30. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 (Community Noise Control) 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:OOAM and 10:OOPM Between the hours of 10:OOPM and 7:OOAM 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 31. 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 either the current business owner, property owner or the leasing agent. 32. 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 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 Sundays or Holidays. 33. Refuse collection shall comply with the Waste Management Plan included in the approved plans. The Applicant's property management company shall contract with a franchised hauler on the City list of authorized companies. 34. All trash shall be stored within the building or within dumpsters stored in the trash enclosure (three walls and a self -latching gate) or otherwise screened from view of neighboring properties, except when placed for pick-up by refuse collection agencies. 35. The Applicant shall ensure that the trash dumpsters and/or receptacles are maintained to control odors. This may include the provision of either fully self-contained dumpsters or periodic steam cleaning of the dumpsters, if deemed necessary by the Planning Division. Cleaning and maintenance of trash dumpsters shall be done in compliance with the provisions of NBMC Title 14 (Water and Sewers), including all future amendments (including Water Quality related requirements). 12-24 7 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 35 of 41 36. A qualified monitor, one from each consulting tribe (the Juaneno Band of Mission Indians - Acjachemen Nation and the Gabrieleno Band of Mission Indians - Kizh Nation), shall be retained and compensated as Native American Monitors for the project site prior to the commencement of any ground -disturbing activity to the completion of ground disturbing activities to monitor grading and excavation activities. A rotation schedule between the two tribes shall be established with the applicant. Voluntary monitoring by each consulting tribe is permitted on days that the tribe(s) is not scheduled to monitor. 37. The rotating monitors, one from each consulting tribe, shall be retained prior to the commencement of any "ground -disturbing activity" for the subject project at all project locations (i.e., both on -site and any off -site locations that are included in the project description/definition and/or required in connection with the project, including as public improvement work undertaken by the applicant). "Ground -disturbing activity" shall include, but is not limited to, any demolition that includes subterranean impacts, potholing, auguring, boring, grading, excavation, drilling, and trenching. 38. A copy of the executed monitoring agreement shall be submitted to the City prior to the commencement of any ground -disturbing activity, or the issuance of any permit necessary to commence a ground -disturbing activity. 39. Both monitors shall complete daily monitoring logs that will provide descriptions of the relevant ground -disturbing activities, the type of construction activities performed, locations of ground -disturbing activities, soil types, cultural -related materials, and any other facts, conditions, materials, or discoveries of significance to the Tribe. Monitor logs will identify and describe any discovered TCRs, including but not limited to, Native American cultural and historical artifacts, remains, places of significance, etc., (collectively, tribal cultural resources, or "TCR'), as well as any discovered Native American (ancestral) human remains and burial goods. Copies of monitor logs shall be shared between the two monitors and provided to the project applicant/lead agency upon written request to the monitors. 40. On -site tribal monitoring shall conclude upon the latter of the following (1) written confirmation to the consulting tribes from a designated point of contact for the project applicant/lead agency that all ground -disturbing activities and phases that may involve ground -disturbing activities on the project site or in connection with the project are complete; or (2) a determination and written notification by the consulting tribes to the project applicant/lead agency that no future, planned construction activity and/or development/construction phase at the project site possesses the potential to impact TCRs of the consulting tribes. 41. Upon discovery of any TCRs, all construction activities in the immediate vicinity of the discovery shall cease (i.e., within the surrounding 50 feet) and shall not resume until the discovered TCR has been fully assessed by the monitor and/or archaeologist. The monitors will recover and retain all discovered TCRs in the form and/ormannerthe tribes deem appropriate, in the tribes' sole discretion in coordination with the applicant, and for any purpose the tribes deem appropriate, including for educational, cultural and/or historic purposes. 12-248 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 36 of 41 42. Native American human remains are defined in PRC 5097.98 (d)(1) as an inhumation or cremation, and in any state of decomposition or skeletal completeness. Funerary objects, called associated grave goods in Public Resources Code Section 5097.98, are also to be treated according to this statute. 43. If Native American human remains and/or grave goods are discovered or recognized on the project site, then Public Resource Code 5097.9 as well as Health and Safety Code Section 7050.5 shall be followed. 44. Human remains and grave/burial goods shall be treated alike per California Public Resources Code section 5097.98(d)(1) and (2). 45. Preservation in place (i.e., avoidance) is the preferred manner of treatment for discovered human remains and/or burial goods. 46. Any discovery of human remains/burial goods shall be kept confidential to prevent further disturbance. 47. 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 Residences at 1401 Quail Street including, but not limited to, a General Plan Amendment, Planned Community Development Plan Amendment, Site Development Review, Vesting Tentative Tract Map, Affordable Housing Implementation Plan, Development Agreement and Addendum to the 2006 General Plan Update Program Environmental Impact Report (PA2023-0040). 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. Fire Department 48. Prior to the issuance of any occupancy permits (temporary or final), all fire and life safety systems, and the emergency responder radio system shall be inspected and approved by the Fire Marshal. 49. Prior to the building permit issuance, a fire master plan shall be submitted and approved by the Fire Marshal. 12-249 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 37 of 41 50. Prior to any foundation permit issuance for the garage basement area, a temporary fire department access way, as approved by the Fire Department, shall be provided until the permanent fire access way is installed. Required fire and life safety systems, including the fire sprinkler system, shall be operational in the garage basement areas used for parking by the construction crews and for storage of building materials and construction equipment. 51. One elevator shall be gurney sized and equipped as a medical emergency elevator as CBC Section 3002. 52. Emergency responder radio coverage shall be required to comply with NBFD Guideline D.05 "Public Safety Radio Coverage" and CFC Section 510. 53. Emergency power and Standby Power System shall be required as per CFC Section 604.2.14. 54. An automatic sprinkler system shall be installed in accordance with CFC Section 903.2 amendment shall be provided throughout all buildings. 55. A standpipe system shall be required and installed as per CFC Section 905.3.1. 56. Fire Alarm system shall be provided as per CFC Section 907.2.9. Building Division 57. The Applicant is required to obtain all applicable permits from the City's Building Division and Fire Department. The construction plans must comply with the most recent, City - adopted version of the California Building Code. The construction plans must meet all applicable State Disabilities Access requirements. Approval from the Orange County Health Department is required prior to the issuance of a building permit. 58. The Applicant shall employ the following best available control measures (BACMs) to reduce construction -related air quality impacts: Dust Control • Water all active construction areas at least twice daily. • Cover all haul trucks or maintain at least two feet of freeboard. • Pave or apply water four times daily to all unpaved parking or staging areas. • Sweep or wash any site access points within two hours of any visible dirt deposits on any public roadway. • Cover or water twice daily any on -site stockpiles of debris, dirt or other dusty material. • Suspend all operations on any unpaved surface if winds exceed 25 mph. Emissions • Require 90-day low-NOx tune-ups for off road equipment. • Limit allowable idling to 30 minutes for trucks and heavy equipment. Off -Site Impacts 12-250 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 38 of 41 • Encourage carpooling for construction workers. • Limit lane closures to off-peak travel periods. • Park construction vehicles off traveled roadways. • Wet down or cover dirt hauled off -site. • Sweep access points daily. • Encourage receipt of materials during non -peak traffic hours. • Sandbag construction sites for erosion control. Fill Placement The number and type of equipment for dirt pushing will be limited on any day to ensure that SCAQMD significance thresholds are not exceeded. Maintain and utilize a continuous water application system during earth placement and compaction to achieve a 10 percent soil moisture content in the top six-inch surface layer, subject to review/discretion of the geotechnical engineer. 59. Prior to the issuance of a aradina Dermit. a Storm Water Pollution Prevention Plan (SWPPP) and Notice of Intent (NOI) to comply with the General Permit for Construction Activities shall be prepared, submitted to the State Water Quality Control Board for approval and made part of the construction program. The Project Applicant will provide the City with a copy of the NOI and their application check as proof of filing with the State Water Quality Control Board. This plan will detail measures and practices that will be in effect during construction to minimize the project's impact on water quality. 60. Prior to the issuance of a grading permit, the Applicant shall prepare and submit a Water Quality Management Plan (WQMP) for the proposed project, subject to the approval of the Building Division and Code and Water Quality Enforcement Division. The WQMP shall provide appropriate Best Management Practices (BMPs) to ensure that no violations of water quality standards or waste discharge requirements occur. 61. A list of "good housekeeping" practices will be incorporated into the long-term post - construction operation of the site to minimize the likelihood that pollutants will be used, stored or spilled on the site that could impair water quality. These may include frequent parking area vacuum truck sweeping, removal of wastes or spills, limited use of harmful fertilizers or pesticides, and the diversion of storm water away from potential sources of pollution (e.g., trash receptacles and parking structures). The Stage 2 WQMP shall list and describe all structural and non-structural BMPs. In addition, the WQMP must also identify the entity responsible for the long-term inspection, maintenance, and funding for all structural (and if applicable Treatment Control) BMPs. 62. Prior to the building plan check submittal, the Applicant shall submit the Project for Building Code Preliminary Review. 63. The residential dwelling units and their common use areas shall comply with Housing Accessibility per Chapter I IA. 64. The nonresidential portion of the development shall comply with the public accommodation requirements per Chapter 11 B. 12-251 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 39 of 41 Public Works Department 65. A Tract Map shall be recorded prior to the sale of any residential units. The map shall be prepared on the California coordinate system (NAD83). Prior to recordation of the Map, the surveyor/engineer preparing the Map shall submit to the County Surveyor and the City of Newport Beach a digital -graphic file of said map in a manner described in Sections 7-9-330 and 7-9-337 of the Orange County Subdivision Code and Orange County Subdivision Manual, Sub Article 18. The Map to be submitted to the City of Newport Beach shall comply with the City's CADD standards. Scanned images will not be accepted. 66. Prior to the recordation of the tract map, the surveyor/engineer preparing the map shall tie the boundary of the map into the Horizontal Control System established by the County Surveyor in a manner described in Sections 7-9-330 and 7-9-337 pf the Orange County Subdivision Code and Orange County Subdivision Manual, Sub Article 18. Monuments (one -inch iron pipe with tag) shall be set On Each Lot Corner unless otherwise approved by the Subdivision Engineer. Monuments shall be protected in place if installed prior to completion of construction project. 67. Prior to the recordation of the Tract Map, a Subdivision Agreement shall be obtained and approved by the City Council consistent with the Subdivision Code Section 19.36.010. 68. Prior to Final Map approval, the applicant shall provide a Faithful Performance Bond and Labor and Materials Bond, each for 100%of the estimated improvement costs for the improvements in the public right of way, as prepared by a Registered Civil Engineer and approved by the Public Works Director, for each of the following, but not limited to, public and private improvements, street improvements, monumentation, sidewalks, striping, signage, street lights, sewer systems, water systems, storm drain systems, water quality management systems, erosion control, landscaping and irrigation within the public right of way, common open spaces areas accessible by the public, fire access and off -site improvements required as part of the project. 69. Warranty Bond for a minimum of 10%of the engineers cost estimate (final percentage to be determined by the Public Works Director) to be released 1-year after the improvements have been accepted. 70. All improvements shall be constructed as required by Ordinance and the Public Works Department. 71. An encroachment permit shall be required for all work activities within the public right- of-way. 72. The final Construction Management Plan (CMP) shall be reviewed and approved by the Community Development Director and the City Traffic Engineer prior to building permit issuance. 12-252 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 40 of 41 73. A Parking Management Plan (PMP) shall be reviewed and approved by the Community Development Director and City Traffic Engineer prior to building permit issuance. The PMP shall include information regarding gate operation, move -in and move -out, ride - share area, guest parking areas and residential parking areas. 74. Parking layout and ramp slopes shall comply with the City Parking Lot Standard 805. Dead-end drive aisle in public areas and/or unassigned parking areas shall provide a dedicated turn around space and minimum 5-foot drive aisle extension. 75. The applicant shall reconstruct all existing broken and/or otherwise damaged curb, gutter and sidewalk along the Spruce Street and Quail Street frontages per City Standards. 76. All deliveries shall be accommodated on -site and prohibited from parking or stopping within the public right of way. Only ride share vehicles shall be permitted to utilize the pull-out area located on Spruce Street. 77. The proposed driveway shall be constructed per City Standard 161. The radius for the Bristol Street North driveway shall be minimum 20-foot radius and the radius for the Spruce Street driveway shall be 15-foot minimum. 78. All on -site fire hydrants shall be privately owned and maintained. 79. All landscaping and walls along the Spruce Street and Quail Street frontages shall comply with the City's line of sight standard 105. 80. Final design of the water and sewer services is subject to further review by the Public Works Department during plan check. 81. Prior to the issuance of a Certificate of Occupancy, the Applicant shall coordinate with the City to complete the required off -site improvements identified in the Sewer Capacity Study dated October 20, 2023, to the satisfaction of the Public Works and Utilities Directors. The Applicant shall be responsible for their fair share cost of the improvements as determined by the City, which may include the payment and construction of the entire improvement unless the City assumes the cost of the improvement. 12-253 DocuSign Envelope ID: F2563D7B-A495-4A61-9AB6-234A281FB870 Planning Commission Resolution No. PC2023-047 Paae 41 of 41 EXHIBIT "G" VESTING TENTATIVE TRACT MAP NO. 19261 12-254 F DocuSign Env IUpC U.I.IrL-UVJL//D-F1'-F.7J-'-F/'iV I-yjmDUU-LJ-+m/_o IrDO/U TENTATIVE TRACT MAP NO. 19261 �P FOR CONDOMINIUM PURPOSES CITY OF NEWPORT BEACH, COUNTY OF ORANGE, �fR9oR STATE OF CALIFORNIA Q.P PARCEL 2 p l\/] IF31 it it 48.6 48.2 48.0 4T 9 4].4 47.4 4 C TC TC TC 7 r m TC TG TC LIx, 4\ 9.1 TC 48.6 FL 1 48.8 TC 48.3 FL 6 f 9.2 TC 50.8 T 8.7 FL 50.3 FS 50.8 TC CC) 50.3 FS 30' _ 31' �!> I 50.3 FS L T, TC ,J 9��II A B Wg. 4qo LLI _ti s 1 TC G 50.5 T LOT 1 -�� <I L 4 .6 FL 0 CIF LLB A A F L- RAGGS r'A R C- 1 y> �\ 50.9 TC 5 .4 TC GB FRID 5..8 TC g 0 CIF 51.2 TC 2.0% 50.5 TC 50.5 TC OSO FS Fw' CF FW 50.5 50.6 TC 50.2 F 50.2 ES 60 E28 18 0 2 TC LP 2 RE50.0 TC 49. 49 49.9 TC 49.7 FS 49.5 FS p 61.8 M49.9 TC TC 5° B B b 49.2 49. � 5 -_ D T BW D FG WT T T N40-38.15"E 301.00' 9 b O EX W n; E _E1 EX W EX, 16" WATER ACP (H6%) M SPRUCE AVENUE (PUBLIC STREET) - - EX S EX S EX S EX. 8" SSWR VCP _ LEGEND CENTERDNE RIGHT OF WAY PROPERTY DNE . . . . . . . EASEMENT DNE GRAPHIC SCALE: 1" 20• d I I k EX PARKING LOT FC PRIME PRICE -� UNIVERSITY OF I I RVINE WNA A VICINITY MAP I-. N.rs N.T.S. I-�II I 1 NOTES= R VARIES - 10' MIN OMER: NEWPORT PLACE INVESTMENT STRCOMPANY, A GENERAL PARTNERSHIP W 1401 AIL STREET, SUITE 121, NEWPORT BEACH, CA 92660 APPucANT: INTRACORP SW, LLC 895 DOVE EET, SUITE 400, NEWPORT BEACH, CA 92660 I � SURVEY/ENGINEER: ADAMS-STREETER CIVIL ENGINEERS INC. EX. PARKING COT e FG 4�'1 BUILDING 16755 VON KARMAN AVENUE, SUITE 150 IRVINE CA 92606 (949) 474-2330 46.0 11.2' I PROJECT ADDRESS: 1401 WAIL STREET FG 119' I NEWPORT BEACH, CA 92660 �/� APN NO.: 427-332-04 VGy7M B B NT.S BOUNDARY AREA: BASED UPON MEASURED BEARINGS AND DISTANCES AS SHOWN HEREON, THE AREA IS: 1.71 ACRES. FLOOD ZONE: SUBJECT PROPERTY LIES WITHIN FLOOD ZONE X (AREA OF MINIMAL FLOOD HAZARD) AS SHOWN ON FLOOD INSURANCE RAZE MAP NO, 06059CO 86J DATED DECEMBER 3, 2009 AS PUBLISHED BY THE FEDERAL MANAGEMENT AGENCY EXISTING USE: OFFICE BUILDING (22,536 SF) w a > I EXISTING LAND USE: CO-G GENERAL COMMERCIAL OFFICE $ Rom, EXISTING ZONING: PLANNED COMMUNITY - PC11 NEWPORT PLACE �+ PROPOSED NUMBER OF UNITS: 78 RESIDENTIAL UNITS PROPOSED DENSITY: 45.61 DU/ACRE C W I VARIES 81' MIN d L 1 I PARKING: RESIDENNAL PARKING REQUIRED (1.]] SPACES/ONIT AVERAGE): 138 SPACES ICJ RESIDENTIAL PARKING PROVIDED: 159 SPACES BUILDING III I G LEGAL DESCRIPTION REAL PROPERTY IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF 8• I ' 6 CALIFORNIA, DESCRIBED AS FOLLOWS: 4' 34' a a srDEwaur 8.1' 0' 24' 24' I '^ _ - �- _ // STREET PARCEL 1 OF PARCEL MAP NO, 341, AS PER MAP FILED IN BOOK 0, PAGE 38 OF PARCEL ti 3 - _ _ _ MAPS, IN THE OFFICE OF 1HE COUNTY RECORDER OF SAID COUNTY. EXCEPT THE FULL RIGHTS TO ALL MINERALS, PETROLEUM, GAS AND OTHER HYDROCARBON SUBSTANCES EXISTING BELOW 500 FEET FROM THE SURFACE OF SAID REAL PROPERTY I DESCRIBED ABOVE, PROVIDED, HOWEVER, THAT GRANTOR HEREBY EXPRESSLY WAIVES THE W RIGHT TO ENTER UPON THE SURFACE OF SAID REAL PROPERTY FOR THE PURPOSE OF EXPLORING FOR, OR PRODUCING THE MINERALS, PETROLEUM, GAS AND OTHER HYDROCARBON III SUBSTANCES SO RESERVED, AS RESERVED IN THE DEED RECORDED AUGUST 22, 1973 IN w F SECWN C-C BOOK 10863, PAGE 782 OF OFFICIAL RECORDS. xis APN: 427-332-04 Cn " I EXISTING EASEMENTS J a PER PRELIMINARY REPORT NO. NHSC-6827206 DATED APRIL 18, 2022 BY FIRST AMERICAN J E- TITLE COMPANY, THERE ARE NO EXISTING EASEMENTS ENCUMBERING THE PROPERTY. ° W I PROPOSED EASEMENT NOTES D .IIII 0 I R�% e OA NON-EXCLUSIVE EASEMENT FOR EMERGENCY VEHICULAR ACCESS AND FIRE PROTECTION FACILITIES PURPOSES. 14' I VARIES - 10 MIN td 32 O NON-EXCLUSIVE EASEMENT RESERVED FOR UTILITIES AND PRIVATE DRIVE. 1 a1` O I BUILDING © PROPOSED ELECTRICAL EASEMENT OD PROPOSED UTILITY EASEMENT DEDICATED TO THE CITY OF NEWPORT BEACH. ,tip FC SUN �T �LME NT 5 / I sIDEWAK I _ 39' MALL WAY PNO _ I SPRUCE AVENUE ., I EASEMENT FOR EMERGEAMCCESS I III I I �i I� r SECTION D D `i G% 4 - --- EXIS � � . . a i CURB & CUTTER CURB 3 � PRIVATE DRIVE w Nrs I R/W R/W R/W R/W 68' ROW L84' ROW CC I r60' 24• za' roo' 10.0, 32• sz' r6D' ' 4• 6• t29 4• 6'2.-22% 2.2R, 2% 2.2% 22% 2% SIDEWALK SIDEWALK SIDEWALK SIOEWALN QUAIL STREET (PUBLIC) SPRUCE AVENUE (PUBLIC) N.TS N.TS REVISIONS PREPARED BY: ^ DEVELOPER: SHEET DESCRIPTION J ' Q��pftDFE$$/py, Scale: As Noied On Plon yoSN.srR QfeOted:,D/3/2o23 TENTATIVE TRACT MAP NO. 19261 ADAMS STREETER I N T R A C O R P v a c,z A A Revised: NS s,ss.e . c i rou.i Ng..33p a * • 1401 QUAIL STREET TTM-1 Building the Extraordinary si clv\� T Dere �loj31T23 895 DOVE STREET, SUITE 400 9rf �. cnu\FOPS CITY OF NEWPORT BEACH, CALIFORNIA RPM. A. Btreeter RCE70862 NEWPORT BEACH, CA 92660 12-255 PLOT DATE: 10/3/= Attachment I ALUC and CalTrans Comment Letters 12-256 DocuSign Envelope ID: C9F60E46-3286-4E70-A43A-1482986AA3B7 / AIRPORT LAND USE COMMISSION ORANGE COUNTY FOR ORANGE COUNTY ,4LUC 3160 Airway Avenue • Costa Mesa, California 92626 - 949.252.5170 fax: 949.252.6012 March,1.2, 2024 David Lee, Senior Planner Community Development Department City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Subject: Response to Notice of Intent to Overrule the Airport Land Use Commission Determination Regarding the Residences at 1401 Quail Street . Dear Mr. Lee, We are in receipt of the City of Newport Beach (City) letter dated February 14, 2024, and City Council Resolution No. 2024-10 notifying the Airport Land Use Commission (ALUC) for Orange County of the City's intent to overrule the ALUC's inconsistency determination on the proposed Residences at 1401 Quail Street. In accordance with Section 21676 of the Public Utilities Code, the ALUC submits the following comments addressing the proposed` overrule findings for the above -referenced project. These comments shall be included in the public record of a final decision to overrule the ALUC. Please be advised that California Public Utilities Code (PUC) Section 21678 states: "With respect to a publicly owned airport that a public agency does not operate, if the public agency pursuant to Section 21676, 21676.5, or 21677 overrules a commission's action or recommendation, the operator of the airport shall be immune from liability for damages to property or personal injury caused by or resulting directly or indirectly from the public agency's decision to overrule the commission's action or recommendation." Background On January 18, 2024, the ALUC for Orange County found the proposed Residences at 1401 Quail Street to be inconsistent with the Airport Environs Land Use Plan (AELUP),for John Wayne Airport (JWA) on a 6-0 vote. The inconsistent finding was based on AELUP Sections 2.1.1,2.1.2,and 3.2.1. Pursuant to Section 1.2 of the AELUP for JWA, the purpose of the AELUP is to safeguard the general welfare of the inhabitants within the vicinity of the airport and to ensure the continued operation of the airport. Specifically, the AELUP seeks to protect the public from the adverse effects of aircraft noise to ensure that people and facilities are not concentrated in areas 12-257 DocuSign Envelope ID: C9F60E46-3286-4E70-A43A-1482986AA3B7 Residences at 1400 Quail Street Overrule Response March 12; 2024 Page 2 susceptible to aircraft accidents, and to ensure that no structures or activities adversely affect navigable airspace. Additionally, Section 2.1.4 of the AELUP for JWA and PUC Section 21674 charge the Commission to coordinate at the local level to ensure compatible land use planning. The City's proposed project would place residential uses within the 65 dBA Community Noise Equivalent Levels (CNEL) and Safety Zones 4 and 6, which would result in exposure to significant risks, noise and aircraft overflight, the City's proposed actions are inconsistent with the AELUP. ALUC.has the following additional comments regarding the findings and facts of support included in Resolution No. 2024-10. Response to Finding and Fact in Support A - Regarding Noise Standards: Pursuant to AELUP Section 2.1.1, "... aircraft noise emanating from airports may incompatible with the general welfare of the inhabitants within the vicinity of an airport.'.." As noted in the City's discussion, the CNEL standards are set forth in the AELUP. As part of the review of the proposed Residences at 1401 Quail Street, it was noted that the project site is within the JWA 65 dBA noise contour. The ALUC believes that the proposed residential uses would be highly affected by airport noise due to the close proximity to the airport and that the past and current land use designation of General Commercial Office (CO-G) is the appropriate designation for this site. Finding of Fact A states that "the project is located within the updated 60 dBA CNEL contour consistent with the approved 61" Cycle Housing Element Implementation Noise -Related Amendments." This "updated 60 dBA CNEL contour" was included as part of the Housing Element Implementation/Noise Related Amendments which was found inconsistent by the ALUC on August 17, 2023 and overruled by the City on November 14, 2023. With the 2023 Noise Amendments, the City replaced the existing noise contours which are currently consistent with the adopted AEL UP for JWA, with more narrow noise contours which were included in 2014 Settlement Agreement EIR 617, which did not provide an analysis of the potentially significant impacts of placing future residential uses within the 65 dB CNEL contour. As stated in our December 5, 2023 letter to you, and in the August 17, 2023 ALUC Staff Report for Item 1: Housing Implementation/Noise-Related Amendments, "the AELUP continues to reflect the EIR 508 noise contours for purposes of determining whether, a project is consistent with the AEL UP noise policies and provisions. Therefore, for purposes of the AELUP consistency analysis, the City and ALUC are required to utilize the noise contours that are provided in the AELUP. Neither the City nor the ALUC can provide a consistency analysis based on different and updated noise contours unless and until those noise contours have been included in the AEL UP. Rather, any submittal must be based on the policies and contours currently in the existing AEL UP. " The proposed Housing Element Implementation - Noise Related Amendments would allow residential uses which are not suitable and would subject the future residents to excessive 12-258 DocuSign Envelope ID: C9F60E46-3286-4E70-A43A-1482986AA3B7 Residences at 1400 Quail Street Overrule Response March 12, 2024 Page 3 noise regardless of which noise contours are utilized. The ALUC has historically found residential uses in the vicinity of JWA to be inconsistent with the AEL UP for JWA. Response to Fact in Support B - Regarding Safety Pursuant, to AELUP Section 2.1.2, "[s]afety and compatibility zones depict which land uses are acceptable and which are unacceptable in various portions of airport environs. The purpose of these zones is to support the continued use and operation of an airport by establishing compatibility and safety standards to promote air navigational safety and, to reduce potential safety hazards for persons living, working or recreating near JWA. The proposed project is located in Safety Zone 6 — Traffic Pattern Zone. According to the California Airport Land Use Planning Handbook, noise and overflight should be considered in Safety Zone 6. Flight tracks for the property were included in the ALUC staff report which show a high number of flights over the proposed project site. Considering the proposed density, proximity to JWA and the number of flights over the property, this project is an inappropriate use for the site. Response to Fact in Support C - Regarding "Intent of the AELUP": By virtue of being clearly stated in AEL UP for JWA Sections 1.2 "Purpose and Scope" and 2.0 "Planning Guidelines," the ALUC understands the complex legal charge to protect public airports from encroachment by incompatible land use development, while simultaneously protecting the health, safety and welfare of citizens who work and live in the airport's environs. To this end, and as also statutorily required, ALUC proceedings are benefited by several members having expertise in aviation. Based upon careful consideration of all information provided, and input from ALUC members with expertise in aviation, the ALUC unanimously found the proposed Residences at 1401 Quail Street to be inconsistent with the AEL UP for JWA. We urge the City Council to take ALUC's concerns into consideration in its deliberations prior to deciding whether to overrule ALUC. Thank you for the opportunity to provide these comments. Sincerely, DocuSigned by: M of v NIAA-W 09C77A2D7F24488... Mark Monin Vice -Chairman cc: Airport Land Use Commission for Orange County Jonathan Huff, Caltrans/Division of Aeronautics 12-259 STATE OF CALIFORNIA—CALIFORNIA STATE TRANSPORTATION AGENCY Gavin Newsom, Governor DEPARTMENT OF TRANSPORTATION AERONAUTICS Program- M.S. #40 1 120 N STREET P. O. BOX 942874 SACRAMENTO, CA 94274-0001 PHONE (916) 654-4959 FAX (916) 653-9531 TTY 711 www.dot.ca.gov March 15, 2024 David Lee City of Newport Beach Community Development Department 100 Civic Center Drive Newport, CA 92660-3267 Dear Mr. Lee: Dear Mr. Lee Making Conservation a California Way of Life. Electronically Sent dlee@newportbeachca.gov One of the goals of the California Department of Transportation (Caltrans), Division of Transportation Planning, Aeronautics Program (Aeronautics), is to assist cities, counties, and Airport Land Use Commissions (ALUC) in the development and implementation of policies that protect the safety and general welfare of their communities where aeronautical activities take place. We encourage collaboration with our partners in the planning process and thank you for including us in the review of the proposed overrule of the Orange County ALUC. On February 13, 2024, the Aeronautics received an email that included City Resolution No. #2024-10 declaring an intent to overrule the ALUC's January 18, 2024, inconsistency determination for the proposed Residences at 1401 Quail Street Project (Project) with the Airport Environs Land Use Plan for John Wayne Airport (ALEUP for JWA)). The Project includes the construction of 67 for -sale condominium units and a 146-corner space parking structure at the northwest of Quail Street and Spruce Street. Implementation of the proposed project would require demolition of the existing 22,956- square-foot office building and surface parking on the 1.71-acre site. The proposed multi- unit residential building consists of six stories including one level of on -grade parking and one level of subterranean parking. The building height would be approximately 132 feet above ground level, including architectural elements, parapet, rooftop mechanical equipment, and roof access. The proposed Project, Lot 1 Parcel 1 PMB 44 / 38, is in the airport influence area of the John Wayne Airport at 18601 Airport Way, Santa Ana, CA 92707. The approximate distance from the runway nearest to the Project is 0.41 miles, or 2,156 feet. Aeronautics shares the same concerns as the ALUC for this Project as notes below: "Provide a safe, sustainable, integrated, and efficient transportation system to enhance California's economy and livability" 12-260 Ms. Liz Westmoreland March 15, 2024 Page 2 1. Section 2.1.1 Aircraft Noise that the "aircraft noise emanating from airports may be incompatible with general welfare of the inhabitants within the vicinity of an airport." 2. General Policy (in pertinent part): "Within the boundaries of the AELUP, any land use may be found to be Inconsistent with the AELUP which: (1) Places people so that they are affected adversely by aircraft noise, [or] (2) Concentrates people in areas susceptible to aircraft accidents ... " Aeronautics also share's the same concerns as Charlene V. Reynolds Director of John Wayne Airport in her letter to the city of Newport Beach dated October 9, 2023, regarding "Newport Beach Housing Element Noise -Related Amendments". Specifically, the comments from this letter noted below: "The City's proposed Housing Element Noise Update has the potential to increase incompatible land use within the 65 dB CNEL noise contour, which could result in significant land use compatibility, noise, safety, and overflight impacts and additional encroachment of incompatible land uses within the airport environs ... In addition, the City's proposed Housing Element Noise Update is inconsistent with the 2006 Cooperative Agreement entered into between the City and the County. Revisions are required to the Update to remove any residential uses within the 65 and 60 dB CNEL noise contours to ensure continued compliance with this important Agreement." Aeronautics strongly encourages the City to work with both the ALUC and the Airport to address their concerns and work together to ensure the development of this area is one that is consistent with the ALEUP for JWA. It should also be noted that new laws regarding the provision of housing do not supersede existing laws, including Section 21670 of the California Public Utilities Code, which requires counties to establish ALUCs and compatibility plans to protect public health, safety, and welfare. PUC Section 21675.1 (f) provides: If a city or county overrules the commission pursuant to subdivision(d) with respect to a publicly owned airport that the city or county does not operate, the operator of the airport is not liable for damages to property or personal injury resulting from the city's or county's decision to proceed with the action, regulation, or permit. Pursuant to PUC Section 21676(a), the Division and ALUC comments shall be included in the public record of any decision to overrule the ALUC. If you have questions or we may be of further assistance, please contact me at Vincent.Ray@dot.ca.gov or I can be reached at (916) 907-2219. "Provide a safe, sustainable, integrated, and efficient transportation system to enhance California's economy and livability" 12-261 Ms. Liz Westmoreland March 15, 2024 Page 2 Sincerely, Vincent Ray Aviation Planner c: Matt Friedman, Senior Transportation Planner, Division of Aeronautics Julie Fitch, Planner, Airport Land Use Commission for Orange County Lan Zhou, Deputy District Director, Caltrans District 12 "Provide a safe, sustainable, integrated, and efficient transportation system to enhance California's economy and livability" 12-262 Attachment J Fiscal Impact Memorandum dated November 30, 2023 12-263 MEMO TO: David Lee, Senior Planner City of Newport Beach FROM: Doug Svensson DATE: November 30, 2023 SUBJECT: Fiscal Analysis for the 1401 Quail St. Project INTRODUCTION The fiscal analysis uses the Newport Beach Fiscal Impact Model to help calculate revenue and cost impacts of the proposed project. This model was initially developed in support of the General Plan Update, which was adopted in 2006.1 The model has been updated to reflect Fiscal Year 2023-2024 costs and revenues from the Adopted Newport Beach City Budget. The fiscal impact model calculates public service impacts for specific land uses that support the residential population, the employment base and the visitor population in Newport Beach. It also calculates the public revenues that each type of land use typically generates for the City, including property taxes, sales taxes and other taxes as well as a variety of user charges and fees. The fiscal impact model is designed to calculate the average cost of public services required by new development, on the assumption that new development affects City services in approximately the same way that existing development does. The model nets out certain costs that are unlikely to change with expansion of City government, such as the number of City Department Directors and Division managers, as well as the City Council and City Clerk expenditures, but otherwise assumes that City administrative support and overhead tends to increase as City government activities grow to provide services to an expanding population and employment base. Over the long term, this is clearly the dynamic that local governments experience. In the short term, development projects may have 1 A technical description of the fiscal impact model may be found in: Applied Development Economics, Fiscal Impact Analysis and Model, Newport Beach General Plan Update, January 2004. 3527 Mt. Diablo Blvd. #248, Lafayette, CA 94549 ■ Tel 925.934.8712 www.adeusa.com 12-264 lower or higher cost impacts depending on the existing capacity of City services to accommodate more development, and the level of expenditure needed to expand services incrementally if existing capacity is not available. PROJECT DESCRIPTION THE PROPOSED PROJECT The proposed project would convert two existing single -story commercial buildings, with a total of 22,956 sq. ft., to a 6-story condominium complex comprised of 67 residential units, podium level amenity space, and parking. Residential units within the project will include a mix of two -bedroom and three -bedroom units ranging from 1,304 sq. ft. to 3,303 sq. ft. Of the 67 total units, 59 will be market rate units, six will be affordable for very low income households and two for low income households. SOCIOECONOMIC CHARACTERISTICS In order to calculate the fiscal effects of the proposed changes, it is necessary to estimate certain socio-economic characteristics of the land uses, including population and employment, assessed value, household spending on taxable retail goods in Newport Beach, and direct sales taxes from the existing non-residential uses. Based on 2023 data from the State Department of Finance, the average household size in Newport Beach is 2.17 persons, which would imply the proposed project would have a resident population of 145 persons. The existing office uses are estimated to support 84 jobs based on standard employee density ratios for office space. The assessed value for the proposed project has been derived from analysis of recent sales of condominium units in Newport Beach and particularly in the vicinity of the project site. ADE obtained sales records for 171 condominium units that sold between November 2022 and November 2023 in Newport Beach. As shown in Table 1, much of this housing inventory was built before the year 2000 and more recent construction tends to be priced higher. However, there is also price variation based on location in Newport Beach, with higher priced units concentrated around the harbor area. A selection of the condominiums sold during this period (39 units) are in the North Central portion of the City including the Airport Area, East Bluff and the Bonita Canyon Area. These units average $969 per sq. ft., about six percent below the citywide average of $1,034. Despite this, some newer, upscale units in the Airport Area are currently selling for $1,200-$1,300 per sq. ft. Using these various data points, ADE calculated an estimated value for the proposed project by reducing the average value of units built since 2015 ($1,367/ sq. ft.) by six percent, which results in an estimate of $1,280 per sq. ft. We further analyzed price differentials between two- and three - bedroom units in the data set and calculated values for the units in the proposed project, as shown in Table 2. The three -bedroom units tend to be price slightly lower than the two -bedroom units on a per sq. ft. basis but are higher per unit. For purposes of this analysis, ADE assumed all of the two - bedroom units are 1,304 sq. ft. in size, although some may be larger. The three -bedroom units may be as large as 3,303 sq. ft., but would need to average 2,608 to fit within the overall size of the building at 139,546 net sq. ft. These calculations result in average prices of $1.7 million for the two - bedroom market rate units and $3.1 million for the three -bedroom units. Applied Development Economics I Page 2 12-265 TABLE AVERAGE SALES PRICES PER SALES IN NEWPORT BEACH, UNIT CLASSIFICATION YEAR BUILT_,,UNITS 1: • • 2022-2023 NO. OF [AVERAGE SALES PRICE PER SC FT. Condominium 1960-1997 146 $1,002 Condominium 2000-2012 10 $972 Condominium 2015-2021 15 $1,367 Total Average 171 $1,034 North Central Newport Beach 39 $969 Value Assumed for 1401 Quail Market Rate Units $1,280 Two -Bedroom Units $1,310 Three -Bedroom Units $1,190 Very Low Income Affordable Units $54 Low Income Affordable Units $110 Source: ADE, Inc., based on data obtained from CoreLogic, Inc., Zillow, inc. and the Project Sponsor. AVERAGE UNIT SIZES AND PROJECTED TABLE 2: UNIT VALUES FOR•• • 1401 QUAIL PROJECT MARKET RATE AFFORDABLE UNIT PRICE PRICE PRICE PRICE TOTAL TYPE SIZE NO. SQ. FT. UNIT NO. SQ. FT. UNIT UNITS 2 Bdrm 1,304 19 $1 310 $1 708 000 6 $54 $69 990 25 2 Bdrm 1,304 2 $110 $143 228 2 3 Bdrm 2,608 40 $1,190 $3,104,000 40 59 8 67 Source: ADE, Inc., based in part on data supplied by Intracorp SoCal-I,LLC. The project sponsor has submitted an Affordable Housing Implementation Plan (AHIP), which calculates the allowable sales prices for the units allocated to very low income and low income households. These home values are shown in the right hand columns of Table 2 and range from $69,990 for very low income households to $143,228 for low income households. Based on the values shown in Table 2, the project would have an aggregate assessed value of $157.3 million. The analysis uses estimates of monthly housing costs to estimate household income and taxable retail spending, as shown in Table 3. The calculations for the affordable units assume that monthly housing costs comprise 30 percent of household income, which include not only mortgage payments but also utilities costs, Homeowners Association (HOA) dues, and monthly allocations of insurance and property taxes. The calculation of the mortgage payments assumes that households would invest 5% Applied Development Economics I Page 3 12-266 of the purchase price as a downpayment. The defined household income levels are $57,500 for very low income households and $80,500 for low income households. Applying the above purchase terms to these income levels results in housing prices of $69,990 and $143,228, as shown in Table 2 above. ESTIMATES UNIT TYPE OF • GENERATION..NEWPORT INCOME TABLE 3: • . INCOME PERCENT TAXABLE SALES BEACH UNITS TOTAL ANNUAL SALES TAX Affordable Units 2 Bdrm $57,500 24.4% 6 $564 2 Bdrm $80 500 20.5% 2 $221 Market Rate Units 2 Bdrm $425,000 13.8% 19 $7,466 3 Bdrm $748,000 13.8% 40 $27,664 Total 67 $35 915 Source: ADE, Inc. ADE used similar mortgage terms and monthly cost estimates to calculate the average incomes for households in the market rate units. However, given the much higher price levels of these units, we assumed households would put 20% down and would be allowed by the banks to dedicate 35% of income to housing costs. The resulting household income levels are $425,000 for the two -bedroom units and $748,000 for the three -bedroom condominiums. ADE has analyzed consumer expenditure surveys published by the Bureau of Labor Statistics, and at these income levels households typically spend less than 30 percent of their income on taxable retail goods. The percentages decline as income goes up, as shown in Table 3 (households at $200,000 annual income and higher are grouped together). We have assumed for purposes of these calculations that households would spend two-thirds of their annual retail budget in Newport Beach, and the remaining one-third would be spent at retail centers in other cities or on out-of-town trips. The City receives sales tax at the rate of one percent of taxable sales. The total annual sales tax generated by households in the proposed project would be just less than $36,000 pe year. FISCAL IMPACTS The analysis, summarized in Table 4 below, estimates the projected fiscal impact of the proposed project as well as the estimated current impact of the existing office use on the site. For the residential project, the primary revenue source generated for the City is the property tax. The City receives about 16 percent of the base property tax that property owners pay, but in addition the City Applied Development Economics I Page 4 12-267 gets a share of property tax from the state in lieu of vehicle license fees, which adds about ten percent to the total property tax revenues for Newport Beach. 4: PROJECTED FISCAL IMPACT OF THE PROPOSED PROJECT AT 1401 QUAIL ST. AND THE OFFICETABLE EXISTING Annual Revenues/Costs Budget Category Proposed Project Existing Office Use REVENUES GENERALFUND Property Tax $251,369 $2,793 Property Tax in lieu of Vehicle License Fees $25,771 $286 Sales Tax $35,915 $10,368 Transient Occupancy Tax $0 $0 Franchise Fees $1,364 $2,695 Business Licenses $0 $4,835 Other Intergovernmental $1,813 $1,043 Charges for Service $14,497 $8,341 Fines, Penalties, and Forfeitures $3,009 $1,732 Licenses and Permits $338 $194 Use of Property $7,180 $4,131 Other Revenue $2,825 $1,626 Interest Income $1,980 $219 SUBTOTAL GENERAL FUND $346 064 $38 264 GAS TAX $7,080 $0 MEASURE M $4 768 $1 332 SUBTOTAL OTHER FUNDS $11,848 $1,332 TOTAL REVENUE $357 911 $39 596 EXPENDITURES GENERALFUND General Government $15,713 $5,581 Police $59,285 $24,556 Fire $65,822 $23,462 Public Works $39,812 $22,907 Community Development $2,889 $1,662 Community Services $43,849 $0 SUBTOTAL GENERAL FUND $227 370 $78 168 GAS TAX $1,484 $2,037 MEASURE M $1,060 $1 455 SUBTOTAL OTHER FUNDS $2,544 $3,491 TOTAL EXPENDITURES $229,914 $81,659 NET (COST/REVENUE $127 997 $42 063 Source: ADE, Inc. In addition to the property tax and sales tax, the residents of the proposed project would be expected to generate a variety of other more incidental revenues for the City General Fund, including fees for recreation programs, parking fees and fines, utility franchise fees and other annual permit revenue. The total General Fund revenue is projected to exceed $346,000 per year. In terms of non -General Fund revenue, the added population will contribute to the City receiving additional Gas Tax revenues from the state for street maintenance. Also, Measure M is a countywide sales tax fund which is used for transportation projects. The added taxable sales purchases made by project residents will add to these funds. Applied Development Economics I Page 5 12-268 The proposed project is estimated to cost the City more than $229,900 per year for services. The bulk of these costs are for police and fire protection, but they also include street maintenance and costs for recreation, library, and senior services as well as general government functions. The project site is in an intensely developed urban area of the City and existing service capacities are likely sufficient to provide services to the proposed uses on the site. However, with the more intensive residential uses, it may be expected that there would be some additional calls for service, particularly for public safety and perhaps traffic related incidents, compared to the existing use on the site. The service cost figures by Department in Table 4 are well below levels equivalent to hiring additional fulltime staff, and it is likely that the service impacts would be an incremental increase of service activity for existing personnel. Based on the fiscal model analysis, the proposed project would generate a revenue surplus of about $128,000 per year. The existing office use on the site is estimated to generate a negative fiscal impact for the City of about $42,000 per year. This is consistent with the original General Plan Fiscal Analysis for office uses. Office uses have lower assessed values that residential and therefore create less property taxes. The figures in Table 4 are based on the current assessed value of the site, which is about $1.75 million. This is equivalent to only $76.00 per sq. ft. of office space, which is about one -quarter of typical commercial market values. The assessed value is likely depressed due to Proposition limitations on annual assessment escalations over time. However, even if it were assessed at market value, the site would still generate a negative fiscal impact in its current use. Office uses generate much less sales tax than do retail uses, which generate a high positive fiscal benefit for the City. At times, office -based businesses have a point of sale operation that generates sales tax even though it is not a store front retail operation, but most often professional services, financial offices and other businesses that occupy office space do not provide taxable goods or services. Office workers do generate some sales taxes in restaurants and other retail stores. In terms of municipal services, however, the high employee densities in offices increase costs for traffic related services. The post -pandemic trends toward increased remote working may lessen this impact, but it also further reduces market values for office real estate. CONCLUSION The proposed ownership residential use of the site would generate a positive fiscal benefit for the City, particularly as compared to the negative fiscal impact of the existing office use of the site. The 2006 General Plan designated the site for non-residential use, consistent with the office use. Overall, the General Plan increased development potential for commercial and lodging uses substantially, in addition to the new residential units it would permit. The net impact of the growth in land uses at buildout of the General Plan compared to existing land uses in 2006 when the plan was adopted, would result in a positive fiscal impact for the General Fund of $21.7 million per year.2 The positive fiscal impact of the proposed project would further contribute to the financial health of the City. Z Applied Development Economics, Fiscal Impact Analysis Land Use Element Amendment, April 4, 2014. p. 3. Applied Development Economics I Page 6 12-269 Attachment K Project Plans 12-270 A r,Waal ROBERT HIDEY ARCHITECTS 11/30/2023 AP I N T R A C 0 R P 12-271 R H A ROBERT HIDEY ARCHITECTS RENDERING Al RENDERING A2 RENDERING A3 RENDERING A4 RENDERING A5 RENDERING A6 SITE LOCATION A7 EXISTING SITE PLAN A8 PROPOSED SITE PLAN A9 FIRST FLOOR A10 BASEMENT All SECOND FLOOR Al2 THIRD - FIFTH FLOOR A13 SIXTH FLOOR A14 ROOF A15 SOUTHEAST ELEVATION A16 NORTHEAST ELEVATION A17 NORTHWEST ELEVATION A18 SOUTHWEST ELEVATION A19 SECTIONS A20 UNIT PLANS A21 UNIT PLANS A22 UNIT PLANS A23 UNIT PLANS A24 UNIT PLANS A25 UNIT PLANS A26 UNIT PLANS A27 UNIT PLANS A28 UNIT PLANS A29 COLOR & MATERIAL SELECTIONS A30 1401 QUAIL ST. NEWPORT BEACH. CALIFORNIA LANDSCAPE CONCEPTUAL LANDSCAPE PLAN -GROUND L1 CONCEPTUAL LANDSCAPE PLAN -PODIUM L2 CONCEPTUAL LANDSCAPE PLAN -PODIUM OVERLAY L3 PLANTING IMAGES L4 TECHNICAL SITE PLAN C-1 CONCEPTUAL GRADING AND DRAINAGE PLAN C-2 COMPOSITE UTILITY PLAN C-3 FIRE MASTER PLAN F-1 TENTATIVE TRACT MAP TTM-1 INDEX ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER I v ARCHITECT LANDSCAPE CIVIL I N T R A C O R P 22052.01 11/30/2023 2 12-272 I�. � � ll r � •' �� ; �If■�� � .1—millull ����a`'1i•i���i�f�i������r•s'7���,,�l�lllfl �- - All • ����TT!! Ili .._ � � � 'ti .. � .N r.. .. � "k. „�` � LIN �La r. %f�� —. � �� 1%�•. � �� � � ' �A' 1„ 11-1I'll IN _L 11111111 BE Elio:[ lid _m 1 !I .� - _.Aw - VMS Js ' oil 5 k 1 I_III�� ►' R= iz RIF YMEN _ - - Ingzx ou �� mom FNal lullTT 49 will �'•. r + y.;. ,i �' ^ - Ili INO � "" ` / ,s1E. �+ •• '� � �F E .+•T '� '� � � "� f _ �;. �s - �� pry I• �3_3 L= �,.. ids ,•-�j�- rOak- .�. .' _ - - -- � 4p _•P� �..►••;���� 1. r wj!m� �J 5mim " I I - I�i I Affill - 1111 Ilion Val R H A ROBERT HIDEY ARCHITECTS QUAIL ST PODIUM NEWPORT BEACH, CALIFORNIA ROBERT HIDEY ARCHITECTS ARCHITECT URBAN ARENA LANDSCAPE ADAMS STREETER CIVIL go, I Lr� SITE LOCATION N (1) I N T RACORP 22052.01 11/30/20233 7 12-279 R H A ROBERT HIDEY ARCHITECTS QUAIL ST PODIUM NEWPORT BEACH, CALIFORNIA ROBERT HIDEY ARCHITECTS ARCHITECT URBAN ARENA LANDSCAPE SITE AREA: 1.71 ACRES 0 o EXISTING MAIN ONE-STORY OFFICE BUILDING 0 o EXISTING DETACHED BUILDING EXISTING BUILDINGS TOTAL AREA: 22,956 SF SQUARE FOOTAGE OF EXISTING -PER CITY OF NEWPORT BEACH, OCTOBER 2, 2022 NOTICE OF INCOMPLETE FILING LETTER ADAMS STREETER CIVIL 1401 QUAIL STREET NEWPORT BEACH, CA 95660 EXISTING SITE PLAN V I N T RACORP 22052.01 11/30/20233 8 12-280 R H A ROBERT HIDEY ARCHITECTS OF I ! I I tH I -- ...... ............... ...... .........' ....... ...... . F` . to e /ol -- ---------------------------- QUAIL ST PODIUM NEWPORT BEACH, CALIFORNIA ROBERT HIDEY ARCHITECTS ARCHITECT URBAN ARENA LANDSCAPE UNIT MIX PLAN TYPE PROGRAM UNIT SIZE COUNT TOTAL (SF) MIX PLAN 1 2 BD/ 2 BA 1,304 SF 8 10,432 12% PLAN 2 2 BD/ 2.5 BA 1,784 SF 2 3,568 3% PLAN 2X 2 BD/2.5 BA 1,893 SF 8 15,144 12% PLAN 3 2 BD+OFFICE/ 2.5 BA 1,963 SF 9 17,667 13% PLAN 4 3 BD/ 3.5 BA 2,097 SF 10 20,970 15% PLAN 5 3 BD/ 3.5 BA 2,214 SF 2 4,428 3% PLAN 5X 3 BD/ 3.5 BA 2,327 SF 8 18,616 12% PLAN 6 3 BD/ 3.5 BA 2,257 SF 8 18,056 12% PLAN 7 3 BD/ 3.5 BA 2,320 SF 5 11,600 7% PLAN 8 3 BD/ 3.5 BA 2,405 SF 4 9,620 6% PLAN 9 3 BD+OFFICE/ 3.5 BA 2,968 SF 1 2,968 1% PLAN 9X 3 BD+OFFICE/ 3.5 BA 3,303 SF 1 3,303 1% PLAN 10 3 BD/ 3.5 BA 3,174 SF 1 11 3,174 1 1% TOTAL 1 671 139,546 1 100% NOTE: 8 UNITS (PLAN 1) ARE AFFORDABLE SITE AREA: 1.71 ACRES RESIDENTIAL DENSITY: 39 DU/ACRE BUILDING FOOTPRINT (GROSS SF): 44,161 SF BUILDING AREA, INC. PARKING (GROSS SF): 261,790 SF INCLUDING STAIRS & ELEVATORS ABOVE BASEMENT BUILDING AREA, INC. PARKING (GROSS SF): 257,447 SF EXCLUDING STAIRS & ELEVATORS ABOVE BASEMENT ADAMS STREETER CIVIL PROPOSED SITE PLAN V I N T RACORP 22052.01 11/30/20233 9 12-281 R H A ROBERT HIDEY ARCHITECTS i -z----------------'�__�.._.� - - -- -- 15 GUEST PARKING SPACES - FIRST FLOOR (UNASSIGNED) k i3 EV EV EV � ., P PEWv � PEApy Su06CEG , VF6nPutE PDOkr k I -'C u -'C • J Ti' EW am ■ I S e MAiI m m I ��910•E I1•. 510^E — f0Vi0011N r%SLp'E Ili 22�.g Br lE 4 i 5 GUEST PARKING SPACES (UNASSIGNED) J uxpEP 44 RESIDENT PARKING SPACES - FIRST FLOOR 1 1 - 82 RESIDENT PARKING SPACES -BASEMENT ❑I (ASSIGNED) R ' I 1 T I nR- F _ EV EV PEAnr EV PEApvEV PEWv EY PEWS' i EV AEWv- EV EtE90yEV PEWv EV PEApv' EV PF.WvEV PEApv. EV PEApvEV PEADv 1 I — 6 EGN PDOr4 1 1 L---------------------------------------- =--------------------�-� QUAIL ST PODIUM NEWPORT BEACH, CALIFORNIA ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER ARCHITECT LANDSCAPE CIVIL LEGEND GUEST PARKING - EXTERIOR - GUEST PARKING -IN GARAGE - ASSIGNED PARKING - IN GARAGE PARKING TABUTATIONS Target: larger: uespaas, a.aa spaces/unrt average Provided: 146 spaces Guest Parking: 20 spaces available for guests 20/67=.29 guest space per unit rrowoeP. one spaces, e.aa spaces/uma average EV Required/Provided: Per Coigne. 4.106.4.2.2: 30%EV Capable, 25% EV Ready and 5%EV Chargers are required. EV Capable-.10 x 146 =15 Spaces U3 at assigned.2 at unassigned/guest) EV Ready-.25 5146 = 36 Spaces (31 at assigned - 5 at unassigned/guest) EV Charger-.05 v 146 = 8 Spaces (l at assigned t 1 at unassigned/guest) Totals = 595paces (5l at assigned a8a[unassigned/guest) A .Wble Required/Provided: Requlred- Per CBC 1109A.1: Each parking facility shall provide accessible parking as required by Section 1309A. Per California Green Building 5tandards Cade 4.106.4.2.2.1.2: One m every 25 charging spaces, but not less than one, shall also have an 8-foot wide minimum aisle. A 5-foot wide minimum aisle shall be permitted provided the minimum width .f the EV space is 12 feet. Provided. Assigned provided — per 1109A.1: 2%of the assigned spaces (83 non-EV) Assigned garage parking = 75..02 =1.5 spaces. Round -up to 2 )Includes 1 ...... ible) Assigned provided— per 4.106.4.2.2.1.2: One per 25 spaces (51 EV) Assigned garage parking, EV = 51/25= 2.1 spaces. Round -up to 3 (Includes 1 van accessible) Unassigned provided — per 1109AA: 5%of the unassigned )guest) spaces (10 non-EV): Unaszipn dguestparking=30..05=.5 space. Round -up toI Imludes 1 van accessible) Unassigned (guest) provided— per 4.106.4.2.2.1.2: One per 25 spaces )8 EV) Unassigned guest parking, EV = 8/25 =.32 space. Round -up to 1(Includes 1 accessible) Parkingsta.dards: All Accessible and EV Spaces are 9'-0". 18.4. Other spaces are 8'-6".17W All drive aisles are 26'4" FIRST FLOOR 0 4' 8' , 6' 24' SCALE: 3/32-=1'-O" V I N T RACORP 22052.01 11/30/2023 A1 0 12-282 R H A R0BERT HIDEY ARCHITECTS k- _ r _ - _ - -_ ..- - ___-_.... - - -.. _ - l f k I J v= .1 uu.�. �n••neic 1 c.W:o�e _ c.ormiE umc 1 uval� cwne« uv.. 1 . 1 - s I FLY. LOHr PAI I f { k - 1 I 1 = WWPUP .• i111 I I I � I I k { low � •.. t i i i I r - - I k W� { Y 82 RESIDENT PARKING SPACES - BASEMENT (ASSIGNED) f I kv eern Ev v ev Enor ' aErm Ev AEw �v Aeaor 1 tvaEwr Ev nr EYPfaa 1 Ev wr av Fens. E. R—Y 1 J 1 I f k ..n.ahc. - 11 rr✓nmaM. I I I 1401 QUAIL ST. NEWPORT BEACH, CALIFORNIA ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER ARCHITECT LANDSCAPE CIVIL BASEMENT FLOOR 0 4' 8' 16' 24' SCALE: 3132-=1'-0" V I N T RACORP 22052.01 11/30/2023 A1 1 12-283 R H A ROBERT HIDEY ARCHITECTS i--- — ---- -- — 1 mr- iL mlL POP UNIT t ' 130150_ FT -- j u:m A f UNIT 'I 1! I IL] I I. — twtflQFf UNIT �� 1 6-M I r r � 1 UNIT 2 UNIT d UNIT.5 Do =1 lUt I I UNIT 8 I... r+a= sa r- I IF 1401 QUAIL ST. NEWPORT BEACH. CALIFORNIA POOL— IF �II �eqp II J t t I I UNIT 2 LNfT4 UNITS •i�•. � -?e+Sc rr L. 1 F'� 1 1 UNIT 7 — - I 2no s �F* �F UNIT TYPE NO. OF UNITS PLAN 1 2 PLAN 2 2 PLAN 2X 0 PLAN 3 2 PLAN 4 2 PLAN 5 2 PLAN SX 0 PLAN 6 2 PLAN 7 1 PLAN 8 1 PLAN 9 0 PLAN 9X 0 PLAN 10 0 TOTAL 14 SECOND FLOOR 0 4' 8' 16' 24' SCALE: 3/32 "=1'-0" 11/30/2023 ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER v ARCHITECT LANDSCAPE CIVIL I N T R A C O R P 22052.01 A1 2 12-284 R H A ROBERT HIDEY ARCHITECTS 1 UNIT 8 1 v -saw -W60 L--------------- 1401 QUAIL ST. NEWPORT BEACH. CALIFORNIA . M UNIT 1 UNIT 1 UNIT g0,1$Q. F1 L r-r UNIT 2X (JNIT 4 WIWI >�r UNIT 2X •a�3 sQ tr ws UNIT 3 UNIT 3 UNIT TYPE NO. OF UNITS PLAN 1 2 PLAN 2 0 PLAN 2X 2 PLAN 3 2 PLAN 4 2 PLAN 5 0 PLAN 5X 2 PLAN 6 2 PLAN 7 1 PLAN 8 1 PLAN 9 0 PLAN 9X 0 PLAN 10 0 TOTAL 14 F MF. 35X 2. . � 327 1� SG FT. ! ' 3 ! 1 UNIT 5X r 1�L �w kl iy 1 — - UNI1 i.- I ` )THIRD TO FIFTH FLOOR 0 S 124' SCALE: 3/32 "=1'-0" ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER I v ARCHITECT LANDSCAPE CIVIL I N T R A C O R P 22052.01 11/30/2023 3 12-285 R H A ROBERT HIDEY ARCHITECTS F--— — — — — — - - — — — - - — — - - — — — — — - -- — —— — — — — — - - — — — — — — — — — — — — — — — — — — — — — — — - -- I I Li UNIT 9 UNIT 9X I C. m I ■iwlww. �_ � � T� t � 1 l — y UNIT 4 UNIT 5X ••! r l 2M so FT ' r ; { UNIT 2x r' Ilf �I4sba� s¢ r -� a or a am MIL f s - New awl? rx � Y — UNUNIT 5 may so sa Fr � Li je i UNIT 3 - I y s._x r. +86750 Fi = .pa UNIT 10 atii so F: UNIT T +� 1 tam wlll� r . I L- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ---�-� 1401 QUAIL ST. NEWPORT BEACH. CALIFORNIA ROBERT HIDEY ARCHITECTS I URBAN ARENA ADAMS STREETER ARCHITECT LANDSCAPE CIVIL UNIT TYPE NO. OF UNITS PLAN 1 0 PLAN 2 0 PLAN 2X 0 PLAN 3 1 PLAN 4 2 PLAN 5 0 PLAN 5X 2 PLAN 6 2 PLAN 7 1 PLAN 8 0 PLAN 9 1 PLAN 9X 1 PLAN 10 1 TOTAL 11 SIXTH FLOOR r^ 0 4' 8' 16' 24' SCALE: 3132-=1'-0" V I N T RACORP 22052.01 11/30/2023 4 12-286 R H A ROBERT HIDEY ARCHITECTS ------ - - - - - - - - - - - - - - - - I , I I I I I I I I I I 1 �I PHOTOVOLTAIC AREA , ! 1 RGOF ACCESS TRASH CHUTES ` L i t c lac ricF +mac is .-7 'mac .mac �? !mac �c TT. "lac m .�c. io V 'Ac r7 .lac .mac —Z' lac .mac w - III f � PHOTGvo47AlG ARE.0. I ! I I I 1 I I � CONDENSER 1 I POP? LOBBY I I - I I I I f FIRE RESISTIVE SHEATHING I I NO PENETRATION ALLCMIEO I I T SPA AT PODIUM POOL AT I LEVEL POOHIM LEVEL - I 1 I I - I - DENSER I LOBBY I L , PHOTOVOLTAICAREA + ! I I I I I IAc ,�c nc nc .c y nc nc .c nc n., nc ac Fe .c ac .w nc. ..c. .c .c .w ac nc .c .c nc nc Fc .c ..c m, nc nc .c ..G .w ac nc 1 I I 1 CONDENSER ROOF ACCESS TRASH CHUTES I i FOR CLUBROOM — ! PHOTOVOLTAIC AREA I I I 1 l I I 1401 QUAIL ST. NEWPORT BEACH, CALIFORNIA ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER ARCHITECT LANDSCAPE CIVIL ROOF 0 4^' 16' 24 SCALE: 3132-=1'-0" V I N T RACORP 22052.01 11 /30/202231 5 12-287 R H A ROBERT HIDEY ARCHITECTS tir� 1401 QUAIL ST. NEWPORT BEACH. CALIFORNIA ACCENTI STUCCO STUCCO METAL COLOR 3 COLOR I GLASS RAILING ACCENT I METAL SOUTHEAST ELEVATION (SPRUCE AVENUE) �� o z• a' s. ,s, SCALE: 118"=V-0" ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER I v ARCHITECT LANDSCAPE CIVIL I N T R A C O R P 22052.01 11/30/2023 12-288 R H A ROBERT HIDEY ARCHITECTS GLASS RAILING 1401 QUAIL ST. NEWPORT BEACH, CALIFORNIA ROBERT HIDEY ARCHITECTS ARCHITECT ACCENT 1 METAL URBAN ARENA LANDSCAPE STUCCO STUCCO COLOR 3 COLOR 1 ADAMS STREETER CIVIL ACCENT 1 METAL I I I � ` b W SE7BAOK ' n u NORTHEAST ELEVATION (QUAIL ST.) �� o z• a' s. ,s, SCALE: 118"=V-0" V I N T RACORP 22052.01 11/30/2023 A1 7 12-289 R H A ROBERT HIDEY ARCHITECTS STUCCO COLOR 3 GLASS RAILING STUCCO COLOR 1 ACCENT 1 METAL � I s T7 1401 QUAIL ST. NEWPORT BEACH, CALIFORNIA ROBERT HIDEY ARCHITECTS ARCHITECT URBAN ARENA LANDSCAPE ADAMS STREETER CIVIL a� .i f1 -.I NORTHWEST ELEVATION (SIDEYARD) �� o z• a' s. ,s, SCALE: 118"=V-0" V I N T RACORP 22052.01 11/30/2023 A1 8 12-290 R H A ROBERT HIDEY ARCHITECTS ACCENTI STUCCO ACCENTI GLASS METAL COLOR 1 METAL RAILING 1401 QUAIL ST. NEWPORT BEACH, CALIFORNIA ROBERT HIDEY ARCHITECTS ARCHITECT URBAN ARENA LANDSCAPE �M-p �If•P�'f•!f•I�II��If• ■ f• WIN I ■ . minim — — oI■ P ADAMS STREETER CIVIL tea. in nnr , I I b I teas �Qa•igRMf t tEaR1 ' y _ LEtai-i.aEWE � w. uyg2i0aw r 6'r E+atia wly,t. � SETBACK st.a SOUTHWEST ELEVATION (MOTORCOURT) �� o z• a' 8. ,s' SCALE: 118"=,'-0" V I N T RACORP 22052.01 11/30/2023 A1 9 12-291 1401 QUAIL ST. NEWPORT BEACH. CALIFORNIA ROBERT HIDEY ARCHITECTS I URBAN ARENA ADAMS STREETER ARCHITECT LANDSCAPE CIVIL SECTIONS 0 4' S' 16' 24' SCALE: 3132 "=1'-0" V I N T RACORP 22052.01 11/30/2023 O 12-292 R H A ROBERT HIDEY ARCHITECTS 1401 QUAIL ST. NEWPORT BEACH, CALIFORNIA ROBERT HIDEY ARCHITECTS ARCHITECT J-G BATH2 0 El GREAT RCUM INING 0 a r� KITCHEN UNIT 1 1,304 SF URBAN ARENA LANDSCAPE DECK ❑ BED TER DOM I I I I e{ V I MASTER BATH O 0 I i 1 I WWI.0 �. ADAMS STREETER CIVIL UNIT PLANS 0 V ,� 2' 4- 8' SCALE: 114"=V-0" V I N T RACORP 22052.01 11/30/2023 A2 12-293 R H A ROBERT HIDEY ARCHITECTS UNIT 2X 1,893 SF 1401 QUAIL ST. NEWPORT BEACH, CALIFORNIA ROBERT HIDEY ARCHITECTS ARCHITECT URBAN ARENA LANDSCAPE ---- 1:D------- -- r KITCHEN LA kFI II II PDR C - - -- MASTER BATH TI II ic W.I.C. I li MASTER ___ I � ❑ BEDROOM ,q I �S+ I �--� GREAT ROOM i� W.I.G- BEDROOM 2 1-1— UNIT2 1,784 SF ADAMS STREETER CIVIL UNIT PLANS 0 V ,� 2' 4- 8' SCALE: 114"=V-0" V I N T RACORP 22052.01 11 /30/202232 2 12-294 R H A ROBERT HIDEY ARCHITECTS UNIT 4 2,097 SF 1401 QUAIL ST. NEWPORT BEACH. CALIFORNIA UNIT 3 1,963 SF UNIT PLANS 0 V ,� 2' 4- 8' SCALE: 114"=V-0" ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER I v ARCHITECT LANDSCAPE CIVIL I N T R A C O R P 22052.01 11 /30/202232 3 12-295 R H A ROBERT HIDEY ARCHITECTS UNITSX 2,327 SF 1401 QUAIL ST. NEWPORT BEACH. CALIFORNIA UNIT 5 2,214 SF UNIT PLANS 0 V ,� 2' 4- 8' SCALE: 114"=V-0" ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER I v ARCHITECT LANDSCAPE CIVIL I N T R A C O R P 22052.01 11 /30/2023 12-296 R H A ROBERT HIDEY ARCHITECTS UNIT 7 2,320 SF 1401 QUAIL ST. NEWPORT BEACH. CALIFORNIA UNIT 6 2,207 SF UNIT PLANS 0 V ,� 2' 4- 8' SCALE: 114"=V-0" ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER I v ARCHITECT LANDSCAPE CIVIL I N T R A C O R P 22052.01 11/30/2023 5 12-297 R H A ROBERT HIDEY ARCHITECTS 1401 QUAIL ST. NEWPORT BEACH, CALIFORNIA ROBERT HIDEY ARCHITECTS ARCHITECT BATH 2 I' 11[ f BATH 3 BEDROOM 2 ® I RING - i BEDROOM3 El F-E KITCHEN ---------------- 0 ❑INING j Eg PTRY EEJc 111 MASTER �pp, BEDROOM �1 DECK fk UNIT 8 2,405 SF URBAN ARENA LANDSCAPE MASTER BATH LAU. ADAMS STREETER CIVIL UNIT PLANS 0 V ,� 2' ' 4- 8' SCALE: 114"=V-0" V I N T RACORP 22052.01 11/30/2023 A26 12-298 R H A ROBERT HIDEY ARCHITECTS UNIT 9 2,968 SF 1401 QUAIL ST. NEWPORT BEACH. CALIFORNIA UNIT PLANS 0 V ,� 2' 4- 8' SCALE: 114"=V-0" ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER I v ARCHITECT LANDSCAPE CIVIL I N T R A C O R P 22052.01 11 /30/202232 7 12-299 R H A ROBERT HIDEY ARCHITECTS UNIT 9X 3,303 SF 1401 QUAIL ST. NEWPORT BEACH. CALIFORNIA UNIT PLANS 0 V ,� 2' 4- 8' SCALE: 114"=V-0" ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER I v ARCHITECT LANDSCAPE CIVIL I N T R A C O R P 22052.01 11 /30/2022328 12-300 R H A ROBERT HIDEY ARCHITECTS UNIT 10 3,174 SF 1401 QUAIL ST. NEWPORT BEACH. CALIFORNIA UNIT PLANS 0 V ,� 2' 4- 8' SCALE: 114"=V-0" ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER I v ARCHITECT LANDSCAPE CIVIL I N T R A C O R P 22052.01 11 /30/202232 9 12-301 R H A ROBERT HIDEY ARCHITECTS STUCCO 1 SHERWIN WILLIAMS SW 7060" ATTITUDE GRAY" STUCCO 2 BENJAMIN MOORE OC-141 "CHINA WHITE" 1401 QUAIL ST. NEWPORT BEACH. CALIFORNIA STUCCO 3 SHERWIN WILLIAMS SW 7048"URBANE BRONZE" ACCENT 1, VINYL DOORS, WINDOWS & SLIDERS SHERWIN WILLIAMS SW 7048"URBANE BRONZE" ACCENT 1, METAL PANELS, RAILING, DETAILS SHERWIN WILLIAMS SW 7048"URBANE BRONZE" COLOR AND MATERIAL SELECTIONS ROBERT HIDEY ARCHITECTS URBAN ARENA ADAMS STREETER I v ARCHITECT LANDSCAPE CIVIL I N T R A C O R P 22052.01 11 /30/202 30 12-302 ■ 7"1 01 'Al 11 pr6-i, IL: QUAIL STREET NEWPORT BEACH I CA INTRACORP 1 23-003 DATE 10 103 123 � f% �- jo V _ aws - AII ��r sr��r■ x x_ � r Mom. 1'=10' - 0" SCALE NORTH 111,10 I 0 20 ��%1 �-♦♦ �` URBAN CONCEPTUAL LANDSCAPE PLAN - PO PODIUM 12-304 I ' I I 11 -� 1 1 i I QUAIL STREET NEWPORT BEACH I CA INTRACORP 1 23-003 DATE 10 103 123 wi ">E F SPRUILL AVL. d Hlgh Yo.rrneler Bock Wdl [a PL t I I I I I I I I LINE OF SIGHT LIMITED USED AREA (HATCHED AREA) L.0 cf J r, m ■ LINE OF SIGHT LIMITE❑ USED AREA (HATCHED AREA) PLANT —SCHEDULE i DES BO�nfJCA1 �COMFw�N NwE C=PNESSIK SENPENNFIENS GLAWJ'1 BLUE IiALAN [1PNESS MAGNG GANlCHFLOFM'LITTLL GEM' 1 LIFIIE GEMEMGWARiSIX/FXERN MAGNOIN OLEACLiROPAFA'FWIiLE 1 FFnnTF m MOENUpA[ FMVF�L, MEDJOOL n Psi u A. F4CMf , AEGFUN FRS WAiNlU6 K ACEI3IXN'6lOC'OG000't 6L000000� LONGON KIAIlF iNEE REMARKS. STR TREE SPECIE TO.E AP>'NDYEO B 111OLIC MONK IRRIGATION NOTES- THE IRRIGATION SYSTEM SHALL BE AUTOMATIC WITH SMART CONTROLLER AND TO BE ❑ESIG NED TC COMPLY WITH THE CITY OF NEWPORT BEACH WATER EFFICIENT LANDSCAPE ORDINANCE (MUNIQIPAL CODE : CHAPTER 14.M CONCEPTUAL LANDSCAPE PLAN - PODIUM LEVEL OVERLAY I L3 ,,01 \k URBAN ARENA 12-305 e .2 '� � _ 91K'!• . kx yr. f <j .1. !R. �: .� . - ��1 •'e I- .ram - - .� - ,,fi }.,;. _ ,y'si• lair _ _ �4 - �• ` . 4•,I ` _ �- k s `'•'r+A Al 4114 y� .94 At 4 ,"l ' ter~ �. Lk c s �,+ •! ►� r i s r'y } '� - �"� "F�� � �y�t . �• �. � c'"�1 ��44' �4•" 'Ike AIM IP fir^ l � ��' .F� t•• #� � • l % 11� �. i1 46 jo Fit. - . ry4f�4µ. H �� J- _ .r ir'�s.l..r s --.. �''i•_ - - �ti. .!i• M .. r % � - � � �. 1 y�, t a. _sl �4 '�'�` • ""� _ '�'.i :• i���'r,�� �`��s � +t� OV W UJ L.L � r^� N CD J� Q 0 UNIVERSITY OF CAMFORNIA RVINE VICINITY MAP N.T.S. NOTES. APPLICANT: INTRACORP SW, LLC 895 DOVE STREET, SUITE 400. NEWPORT BEACH, CA 92660 SURVEY/ENGINEER: ADAMS-STREETER CIVIL ENGINEERS INC. 16755 VON KARMAN AVENUE, SUITE 150 IRVINE CA 92606 (949) 474-2330 PROJECT ADDRESS: 1401 QUAIL STREET NEWPORT BEACH, CA 92660 APN N., 427-332-04 BOUNDARY AREA: BASED UPON MEASURED BEARINGS AND DISTANCES AS SHOWN HEREON, THE AREA IS 1,71 ACRES. FLOOD ZONE: SUBJECT PROPERTY LIES WITHIN FLOOD ZONE X (AREA OF MINIMAL FLOOD HAZARD) AS SHOWN ON FLOOD INSURANCE RAZE MAP N0. 06059CO286J DATED DECEMBER 3, 2009 AS PUBLISHED BY THE FEDERAL MANAGEMENT AGENCY. EXISTING USE: OFHCE BUILDING (22,536 SF) EXISTING LAND USE: COI GENERAL COMMERCIAL OFFICE EXISTING ZONING: PLANNED COMMUNITY - PC11 NEWPORT PLACE PROPOSED NUMBER OF UNITS: 78 RESIDENTIAL UNITS PROPOSED DENSITY: 45.61 DU/ACRE PARKING: RESIDENTIAL PARKING REQUIRED (1.77 SPACES/UNIT AVERAGE): 138 SPACES RESIDENTIAL PARKING PROVIDED: 159 SPACES LEGAL DESCRIPTION REAL PROPERTY IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CAUFORNIA, DESCRIBED AS FOLLOWS: PARCEL 1 OF PARCEL MAP NO. 341, AS PER MAP FILED IN BOOK 44, PAGE 38 OF PARCEL MAPS, IN THE OFHCE OF THE COUNTY RECORDER OF SAID COUNTY EXCEPT THE FULL RIGHTS TO ALL MINERALS, PETROLEUM, GAS AND OTHER HYDROCARBON SUBSTANCES EXISTING BELOW 500 FEET FROM THE SURFACE OF SAID REAL PROPERTY DESCRIBED ABOVE, PROVIDED, HOWEVER, THAT GRANTOR HEREBY EXPRESSLY WAIVES WE RIGHT TO ENTER UPON THE SURFACE OF SAID REAL PROPERTY FOR THE PURPOSE OF EXPLORING FOR, OR PRODUCING THE MINERALS, PETROLEUM, GAS AND OTHER HYDROCARBON SUBSTANCES SO RESERVED, AS RESERVED IN THE DEED RECORDED AUGUST 22, 1973 IN BOOK 10863, PAGE 782 OF OFFICIAL RECORDS. APN: 427-332-04 EXISTING EASEMENTS PER PREUMINARY REPORT NO. NHSC-6827206 DATED APRIL 18, 2022 BY FIRST AMERICAN TITLE COMPANY, THERE ARE NO EXISTING EASEMENTS ENCUMBERING THE PROPERTY. LEGEND CENTERLINE RIGHT OF WAY PROPERTY LINE ................... UNE OF SIGHT 0. 0. 0. 0. 0. 0. ADA PATH OF TRAVEL 7-1 LIMITED USE AREA: WALL HEIGHT SHALL NOT EXCEED 30' AND PLANTS SHALL NOT EXCEED 24' GRAPHIC SCALE: 1" 20' I PLOT DATE 12-307 CONCEPTUAL GRADING AND DRAINAGE PLAN FOR TENTATIVE TRACT MAP NO. 19261 CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA A EX. PARKING LOT I FG PRIYAIE DRIVE 770N A A N Ls. R VARIES - 1U MIN 3 I � EX. PARKING LOr i 4' WALK e fG �7 BUILDING VC1.r//V/Y B B Nis EXISTING VVATER�I (TO BE CAPPED) �-ram-- -- -- -- -- -- -- i � I I BUIL BUIL SUIL SI SEC70V C—C SEC770N D—D NTs SEC770N E—E LEGEND m PROPOSED STORM DRAIN 5EC770N F—F PROPOSED BIOFILTRATION PLANTER BOX REVISIONS PREPARED BY: A ^ REV DALE DESCRIPTOR J DEVELOPER: ppDFESS/ yP4� S p. STq� fs Scale: As Noted On Plon CONCEPTUAL GRADING AND DRAINAGE PLAN DI°°t°a''°' °Z' ' M' ADAMS STREETER FOR TENTATIVE TRACT MAP NO. 19261 GRAPHIC SCALE: 1 "=20' ` �' �s'•3' �s'��•^'•^^ - ^� � � � 3 �•a•^^^^••�•a^ s 5,,,,, „3 (:ITV nF NFWPnRT RFGl:H (:fN INN f1F f1RAN(`,F 12-308 PLOT DI I I I II I � I I III I I' 41� ✓ EX. FIRE YDRANT (TYP.) a z 1 I �oplll ��d w BIOFILTRAEO PLANTER BOX III REPOSED ON -SIZE PRIVATE FIRE HYDRANT L0 TII PROPOSED CATCH BASIN- m D TwII Im x 1 t0 o =11 I Lu -P T ¢.Ell I W � i o 0 0 o I Ig�nlll`�I H OP�'Op IRE WATER I\ I� � I= of NI O I�m=II o 0 0 I'��II "I (0 - to �II WI 6 P IV E A R p�u 1 L? —�F, - FW o I II - �� 1 I=^ 11 w� 1 W m 0 PROPOSED CATCH BAST EXISTING WATER SERVICE 0 0 0 j TO BE ABANOONOED AND CAPPED AT WATER MAIN) PROPOSED EDC ® I I PROPOSED P�R CITY STDC NO.ALVES 8 n=7 PLAFNTERABO% PLANTER BOX PROPOSED WATER METE XISTING FlRE HYDRANT PER C STD. N0. 400 UTILITXIfl_NY JOINT EXISTNG JOINT AND BACKFLOW PREVENTON ASSEMBLY (PROTECT IN PLACE) UELITY TRENCH PROP. PRIVATE DRAIN UTILITY TRENCH PER CITY STD. NO. 519-B XISTING GAS LINE XISTING 16' WATER ADP ROP. PRIVATE DRAINS THROUGH CURB !PROTECT IN PLACE) THROUGH CURB PER Cl S D. N0 184 IIJ/ PER CITY STD. NO. 184 EXISTING SAIITHAN AST! G SANITARY SEWER HOL MANH LE SEWER M NHOLE� t - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - EXISTING 8" VC P SEWER LATERAL `EXISTING 8" VCR (PROTECT IN PLACE) SANITARY SEWER III SPRUCE AVENUE -4 t + _ �T ----------------------------------- I i�IIINl�6% I I Iw I !ill LEGEND ---- RIGHT OF WAY L-- CENTERUNE EX. STORM DRAIN LINE (WIDTH VARIES) C :] EX. CATCH BASIN (WDTH VARIES) EX. SO JUNCEDN STRUCTURE EX. CONCRETE PIPE COLLAR ---- EX. WATER LINE ® EX. WATER GATE VALVE Y EX. FIRE HYDRANT - -- EX. SANITARY SEWER LINE O EX. SANITARY SEWER MANHOLE - - - - EX. GAS SERVICE ---- EX. JOINT UTILITY TRENCH H-i EX. LIGHT STANDARD PROPOSED BIOFILTRAEON PLANTER BOX PROPOSED STORM DRAIN PROPOSED ON -SITE FIRE HYDRANT ® PROPOSED WATER GATE VALVE �FWH PROPOSED FIRE WATER (SIZE PER PLAN) GRAPHIC SCALE. 1"-2G' PLOT DATE 12-309 CITY OF NEWPORT BEACH • NOTICE -FIRE LANE ASIGNS E REQUIREDA ENTRY POINTS TO PROPERTIES THATCONTAIN FIRELANESIGNS OR RED CURBS. NO STOPPING IN AREAS THE SIGN MUST BE APPROVED BY THE FIRE PREVENTION MARK AS FIRE LANES DIVISION AND MUST BE A MINIMUM OF 18" WIDE x 24" HIGH. -LETTERING SHALL BE RED ON WHITE BACKGROUND, NO SMALLER THAN 2" IN HEIGHT. -THE WORDS "FIRE LANE" SHALL BE WHITE ON RED BACKGROUND, NO SMALLER THAN 4" IN HEIGHT. VIOLATING VEHICLES -THE SIGN SHALL BE SECURELY MOUNTED FACING THE ✓ILL BE CITED OR TOWEE DIRECTION OF TRAVEL AND CLEARLY VISIBLE TO VEHICULAR AT OWNERS EXPENSE TRAFFIC ENTERING THE PARKING AREA. •THE SIGN SHALL BE MADE OF DURABLE MATERIAL AND M.C. 12.40.190 F INCLUDE ALL VERBIAGE ON SHOWN IN DIAGRAM ABOVE. CVC 22500.1 H.P.B.0 84.1-3717 FIRE DEPARTMENT FIRE MASTER PLAN •SIGNS SHALL BE A MINIMUM OF 12" WIDE . 18" HIGH. •THE WORD "NO" SHALL BE WHITE LETTERS WITH RED BACKGROUND NOT LESS THAN 2 J" IN HEIGHT. •THE WORDS "NO STOPPING FIRE LANE" SHALL BE RED LETTERS WITH WHITE BACKGROUND NOT LESS THAN 2 J" IN STOPPING HEIGHT. • CVC SECTION 22500.1" SHALL BE ON THE BOTTOM LEFT OF THE SIGN, AND 'N.B.P. D. 949-644-371 ]" SHALL BE ON THE FIREBOTTOM LANE RIGHT IN RED WITH MINIMUM J" LETTERS. STOPPING ON CENTER ISLAND FIRE LANE PROJECT INFORMATION REQUIREMENTS PROJECT LOCATION: 1401 QUAIL STREET, NEWPORT BEACH, CA 92660 PARCEL MAP NUMBER: TRACT NUMBER: 19261 LOT NUMBER: ® EMERGENCY ACCESS EASEMENTS NUMBER OF UNITS OR HOMES IN DEVELOPMENT 78 UNITS NUMBER OF STORIES 6 MAX. BUILDING HEIGHT 84'-8" TYPE OF CONSTRUCTION ® TYPE IA O✓YPE IS O TYPE ILA OTYPE JIB ® TYPE ILIA OrYPE IIIB O TYPE IV O TYPE VA O TYPE VB SPRINKLERS ® NEW OMANDATORY O✓OLUNTARY O TENANT IMPROVEMENT TYPE ® NFPA 13 O NFPA 13D O NFPA 13R O FIRE PUMP ® STANDPIPES FIRE ALARM ® NEW OMANDATORY O VOLUNTARY O TENANT IMPROVEMENT O VOICE EVACUATION WATER AVAILIBILITY FLOW: 3,614 GPM PRESSURE: STATIC = 98 PSI, RESIDUAL = 85 PSI ® ON SITE FIRE HYDRANTS TOTAL NUMBER: ONE(1) THIS PROJECT HAS BEEN PERMITTED WITHOUT REVIEW AND/OR APPROVAL OF THE FOLLOWING DEFERRED SUBMITTALS. PLANS APPROVED BY NEWPORT FIRE DEPARTMENT SHALL BE OBTAINED FOR EACH DEFERRED ITEM LISTED BELOW PRIOR TO COMMENCING ANY WORK WITHIN THE SCOPE OF SUCH DEFERRAL. DEFERRALS MUST BE REVIEWED AND ACCEPTED BY THE ARCHITECT OR ENGINEER OF RECORD PRIOR TO SUBMITTING FOR REVIEW WITH NEWPORT FIRE DEPARTMENT. PORTIONS OF THE PROJECT THAT ARE DEFERRED SHALL BE SUBJECT TO THE CODES, STANDARDS, AND OTHER APPLICABLE REQUIREMENTS IN FORCE ON THE DATE THAT THE DEFERRED PLAN IS SUBMITTED TO NEWPORT IN DEPARTMENT. ® ARCHITECTURAL PLAN ® UNDERGROUND SYSTEM SERVING SPRINKLERS, STANDPIPES, AND/OR PRIVATE HYDRANTS ® SPRINKLER SYSTEM ® STANDPIPE SYSTEM ® ALARM SYSTEM CONSTRUCTION NOTES: O1 INSTALL FIRE LANE ENTRANCE SIGN PER DETAIL HEREON. O2 INSTALL "FIRE LANE NO STOPPING" SIGN PER DEFAIL HEREON. Q3 INSTALL "NO STOPPING ON CENTER ISLAND" SIGN PER DETAIL HEREON. ® INSTALL FIRE HYDRANT MARK THAT SHALL BE PLACED 6- FROM CENTERLINE OF STREET. LEGEND FIRE ACCESS ROAD WITH ALL-WEATHER PAVED SURFACE SUPPORTING VEHICULAR LOADS OF 75 000 NO WITH A ROAD BASE OVER SOIL COMPACTED TO AT LFIST 90% STRUCTURES REQUIRED TO MEET THE 2022 OINDICATES CAUFORNLA BUILDING CODE INDICATES REQUIRED TURNING pro RADII: 211 WIDE PATH WITH 20 INSIDE AND 40 OUTSIDE EXISTING FIRE HYDRANT A� PROPOSED FIRE HYDRANT BLUE DOT REFLECTIVE HYDRANT MARKER PROPoSED FIRE LANE SIGN AS INDICATED ON PLAN AND DETAILS HEREON .......... HOSE PULL (150' MAXIMUM) PROJECT DIRECTORY ARCHITECT/ENGINEER BUSINESS NAME: ADAMS STREETER CIVIL ENGINEERS, INC. CONTACT NAME: NICKSTREETER,PE ADDRESS: 16755 VON KARMAN AVE., SUITE 150 CITY: IRVINE STATE: CA ZIP: 92606 PHONE: 949-474-2330, EXT. 211 EMAIL: NSTREETERGDADAMS-STREETER.COM PROPERTY OWNER/HOA BUSINESS NAME: INTRACORPSW LLC. CONTACT NAME: RICKPUFFER ADDRESS: 895 DOVE STREET. SUITE 400 CITY: NEWPORT BEACH STATE:CA ZIP: 92660 PHONE: 949-757-8464 EMAIL: RPUFFERWNTRACORPHOMES.COM FIRE MASTER PLAN NOTES 1. FIRE MASTER PLAN SHALL BE SUBMITTED TO THE NEWPORT BEACH FIRE PREVENTION DIVISION FOR APPROVAL. THE PLAN SHALL INCLUDE THE FOLLOWING (BUT NOT LIMITED TO) SUBJECTS: FIRE DEPARTMENT VEHICLE ACCESS TO THE PROJECT SITE, SECONDARY EMERGENCY VEHICLE ACCESS, FIREFIGHTER ACCESS (HOSE PULL) AROUND STRUCTURE, FIRE LANE IDENTIFICATION, LOCATION OF FIRE HYDRANTS AND OTHER FIRE DEPARTMENT APPLIANCES, AND THE LOCATION AND TYPE OF GATES OR BARRIERS THAT RESTRICT INGRESS/EGRESS. INSPECTION REQUIREMENTS 2. NEED SITE INSPECTIONS ARE REQUIRED FOR THIS PROJECT. PLEASE SCHEDULE ALL FIELD INSPECTIONS AT LEAST 48 HOURS IN ADVANCE. 3. ALL FIRE ACCESS ROADS AND WATER SUPPLY SHALL BE IN PLACE PRIOR TO A LUMBER DROP OR BRINGING COMBUSTIBLE MATERIALS (OR COMBUSTIBLE FIXTURES AND FINISHES FOR STRUCTURES OF NON-COMBUSTIBLE CONSTRUCTION). ALL-WEATHER ACCESS ROADS CAPABLE OF SUPPORTING 75,000 LBS., TOPPED WTH ASPHALT, CONCRETE, OR EQUIVALENT SHALL BE IN PLACE AND HYDRANTS OPERATIONAL AT TIME OF ANY COMBUSTIBLE MATERIAL BEING BROUGHT ON SITE. 4. AN ORIGINAL APPROVED, SIGNED, WET -STAMPED NEED FIRE MASTER PLAN SHALL BE AVAILABLE ON -SITE AT TIME OF INSPECTION. 5. ACCESS ROADS AND HYDRANTS SHALL BE ALWAYS MAINTAINED AND REMAIN CLEAR OF OBSTRUCTIONS DURING AND AFTER CONSTRUCTION. AREAS WHERE PARKING IS NOT PERMITTED SHALL BE CLEARLY ALWAYS IDENTIFIED. OBSTRUCTION OF FIRE LANES AND HYDRANTS MAY RESULT IN CANCELLATION OR SUSPENSION OF INSPECTIONS. 6. THE PROJECT ADDRESS SHALL BE CLEARLY POSTED AND VISIBLE FROM THE PUBLIC ROAD DURING INSPECTION. ]. ALL GATES IN CONSTRUCTION FENCING SHALL BE EQUIPPED WITH A KNOX PADLOCK. 8, BUILDINGS OF FOUR OR MORE STORIES SHALL BE PROVIDED WITH STAIRS AND A STANDPIPE BEFORE REACHING 40 FEET IN HEIGHT. GENERAL REQUIREMENTS 9. FIRE LANE WIDTHS SHALL BE MEASURED FROM TOP FACE OF THE CURB TO TOP FACE OF THE CURB FOR FIRE LANES WITH STANDARD CURBS AND GUTTERS AND FROM FLOW -LINE TO FLOW -LINE FOR FIRE LANES WITH MODIFIED CURB DESIGNS (E.G., ROLLED, RAMPED, ETC.). THE DEVELOPER IS RESPONSIBLE TO VERIFY THAT ALL APPROVED PUBLIC WORKS OR GRADING DEPARTMENT STREET IMPROVEMENT PLANS OR PRECISE GRADING PLANS CONFORM TO THE MINIMUM STREET WIDTH MEASUREMENTS PER THE APPROVED NBFD FIRE MASTER PLAN AND STANDARDS IDENTIFIED IN NBFD GUIDELINES COL AND C.03 FOR ALL PORTIONS OF THE FIRE ACCESS ROAD. 10. PERMANENT, TEMPORARY, AND PHASED EMERGENCY ACCESS ROADS SHALL BE DESIGNED AND MAINTAINED TO SUPPORT AN IMPOSED LOAD OF 75,000 LES. AND SURFACED TO PROVIDE ALL-WEATHER DRIVING CAPABILITIES. 11, FIRE LANE SIGNS AND RED CURBS SHALL MEET THE SPECIFICATIONS SHOWN IN NBFD GUIDELINE C.02 AND SHALL BE INSTALLED AS DESCRIBED THEREIN. ADDITIONAL FIRE LANE MARKINGS MAY BE REQUIRED AT THE TIME OF INSPECTION DEPENDING ON FIELD CONDITIONS. 12. ALL FIRE HYDRANTS SHALL HAVE A "BLUE REFLECTIVE PAVEMENT MARKER" INDICATING THEIR LOCATION. ON PRIVATE .LO PROPERTY MARKERS ARE TO BE MAINTAINED IN GOOD CONDITION BY THE PROPERTY OWNER. 13. ADDRESS NUMBERS SHALL BE LOCATED AND BE OF A COLOR AND SIZE TO BE PLAINLY VISIBLE AND LEGIBLE FROM THE ROADWAY FROM WHICH THE BUILDING IS ADDRESSED. GPy�. 3 14. FIRE DEPARTMENT ACCESS ROADS SHALL COMPLY WITH NEWPORT BEACH FIRE GUIDELINES C.01 AND C.02. 15. AN APPROVED WATER SUPPLY CAPABLE OF SUPPLYING THE REQUIRED FIRE FLOW FOR FIRE PROTECTION SHALL BE / PROVIDED TO PREMISES. FIRE -FLOW REQUIREMENTS FOR BUILDINGS OR PORTIONS OF BUILDINGS AND FACILITIES SHALL BE DETERMINED BY APPENDIX B OF THE 2019 CALIFORNIA FIRE CODE. IN o' s' a' 20 16, WHERE A PORTION OF THE FACILITY OR BUILDING HEREAFTER CONSTRUCTED OR MOVED INTO OR WITHIN THE JURISDICTION GRAPHIC SCALE: i"=20 IS MORE THAN 400 FEET FROM A HYDRANT ON A FIRE APPARATUS ACCESS ROAD, AS MEASURED BY AN APPROVED ROUTE AROUND THE EXTERIOR OF THE FACILITY OR BUILDING, ON -SITE FIRE HYDRANTS AND MAINS SHALL BE PROVIDED. AFIRE LANE ENTRANCE SIGN U OFIRE LANE NO STOPPNG SIGN n NO STOPPING ON CENTER ISLAND SIGN 12-310 TENTATIVE TRACT MAP NO. 19261 FOR CONDOMINIUM PURPOSES CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA PARCEL 2 p it it / 3 8 4TC 4TO 48.0 47 9 4].4 4].4 46.7 TC TC TC TC r m TC TG TC LIx, 4\ 9.1 TC 48.6 FL 1 48.8 TO RES FL 6 f 9.2 TC 50.8 T 8.7 FL 50.3 FS 50.8 TO Cf 50.3 FS 30' _ 31' 50.8 TC �!> I 50.3 FS L TO TO ,J 9��II A B Wg. 4qo LI _ti s yo o F� 1 TC G LOT 1 50.5 T -� <I L� 4 .6 FL 0 OF LLB A A F RA°GS FARC-EL 1 y> �\ 50.9 TC 5 .4 TC GB 1 FRID 08 TC 0 g CIF T TC 7�% 50.5 TO DOG TC FS Fw' CF FW FW 50.6TCSOD�FS0 OF��F 2 TC LP 2 FL 50.0 TC J�4 49.9 TC 49.7 FS 49.5 FS p 61.8 M49.9 T C b 49.2 � 49.5 -_ D T BW D FG WT T N40-38.15"E 301.00' 9 b O EX W n; E _E1 EX W EX, 16" WATER ACP 6�> M SPRUCE AVENUE (PUBLIC STREET) - - EX S EX S EX S ---MIND EX. 8" GEM VCR- LEGEND -T - T -I-- CENTERLINE RIGHT OF WAY PROPERTY LINE EASEMENT LINE d I I k EX PARKING LOT FC PRIME DRIVE -� UNIVERSITY OF I I RNNE WNA A VICINITY MAP I-. N.rs N.T.S. I-�II I 1 NOTES= R VARIES - 10' MIN OMER: NEWPORT PLACE INVESTMENT COMPANY, A GENERAL PARTNERSHIP 1401 WAIL STREET, SUITE 120, NEWPORT BEACH, CA 92660 APPLICANT: INTRACORP SW, LLC 895 DOVE STREET, SUITE 400, NEWPORT BEACH, CA 92660 I � SURVEY/ENGINEER: ADAMS-STREETER CIVIL ENGINEERS INC. EX. PARKING COT e FG A� BUILDING 16755 VON KARMAN AVENUE, SUITE 150 IRVNE CA 92606 so a - - MI (949) 474-2330 46.0 11.2' I PROJECT ADDRESS: 1401 WAIL STREET FG 119' I A WORT BEACH, CA 92660 EC APN NO.: 427-332-04 VGyB B A.T.S.BOUNDARY AREA: BASED UPON MEASURED BEARINGS AND DISTANCES AS SHOWN I I HEREON, THE AREA IS: 1.71 ACRES. FLOOD ZONE: SUBJECT PROPERTY LIES WITHIN FLOOD ZONE X (AREA OF MINIMAL FLOOD HAZARD) AS SHOWN ON FLOOD INSURANCE RATE MAP NO, 06059CO286J DATED DECEMBER 3, 2009 AS PUBLISHED BY THE FEDERAL MANAGEMENT AGENCY EXISTING USE: OFFICE BUILDING (22,536 SF) w a > I EXISTING LAND USE: CO-G GENERAL COMMERCIAL OFFICE $ Rom, EXISTING ZONING: PLANNED COMMUNITY - PC11 NEWPORT PLACE �+ PROPOSED NUMBER OF UNITS: 78 RESIDENTIAL UNITS PROPOSED DENSITY: 45.61 DU/ACRE C W I VARIES 81' MIN d L 1 I PARKING: RESIDENTIAL PARKING REQUIRED (1.77 SPACES/ONIT AVERAGE): 138 SPACES ICJ RESIDENTIAL PARKING PROVIDED: 159 SPACES BUILDING III I G LEGAL DESCRIPTION REAL PROPERTY IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF 8• I ' 6 CALIFORNIA, DESCRIBED AS FOLLOWS: 4' 34' a a sroEwauc 8.1' 0' 24' 24' I ^ _ - �- _ WM/L PARCEL 1 OF PARCEL MAP N0, 341, AS PER MAP FILED IN BOOK 44, PAC{ 38 OF PARCEL ti 3 - _ _ _ _ _ _ MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THE FULL RIGHTS TO ALL MINERALS, PETROLEUM, GAS AND OTHER HYDROCARBON SUBSTANCES EXISRNC BELOW 500 FEET FROM THE SURFACE OF SAID REAL PROPERTY I DESCRIBED ABOVE, PROVIDED, HOWEVER, THAT GRANTOR HEREBY EXPRESSLY WAIVES THE W RIGHT TO ENTER UPON THE SURFACE OF SAID REAL PROPERTY FOR THE PURPOSE OF EXPLORING FOR, OR PRODUCING THE MINERALS, PETROLEUM, GAS AND OTHER HYDROCARBON III SUBSTANCES SO RESERVED, AS RESERVED IN THE DEED RECORDED AUGUST 22, 1973 IN w F SECWN C-C BOOK 10863, PAGE 782 OF OFFICIAL RECORDS. xis APN: 427-332-04 EXISTING EASEMENTS J a PER PRELIMINARY REPORT NO. NHSC-6827206 DATED APRIL 18, 2022 BY FIRST AMERICAN J -- TITLE COMPANY, THERE ARE NO EXISTING EASEMENTS ENCUMBERING THE PROPERTY. ° W I PROPOSED EASEMENT NOTES D .IIII 0 I R�% e OA NON-EXCLUSIVE EASEMENT FOR EMERGENCY VEHICULAR ACCESS AND FIRE PROTECTION FACILITIES PURPOSES. 14' I VARIES - 10 MIN td 32 O NON-EXCLUSIVE EASEMENT RESERVED FOR UTILITIES AND PRIVATE DRIVE. T a1` O I BUILDING © PROPOSED ELECTRICAL EASEMENT OD PROPOSED UTILITY EASEMENT DEDICATED TO THE CITY OF NEWPORT BEACH. SUNT ALIN FC NE T 5 / I SIDEWALK I _ 3(I' TRAVEL WAY ANO _ SPRUCE AVENUE ., I EASEMENT FOR EMERGENCY ACCESS __-- L - - - - - - - ml Im 8 r SECTION D D `i 2OX 4 a i CURB & GUTTER CURB 3 PRIVATE DRIVE w Nrs I R/W R/W R/W R/W 68' ROW L84' ROW CC I roo' 24• za' roo' 16.6' az• sz' roo' ' 4• 6• 6' 4' 4• 6' 6• 4• I I 2$ 2.2% 2.23T 2% T2.2% 111 T SIDEWALK SIDEWALK SIDEWALK SIOEWALN QUAIL STREET (PUBLIC) SPRUCE AVENUE (PUBLIC) N.TS N.TS. GRAPHIC SCALE: 1" 20• PLOT DATE: 10/3/=