Loading...
HomeMy WebLinkAboutGPAC_2005_07_23111111111 lill 11111111111111111111 *NEW FILE* rraer* 2nn- n7 21 • July 23, 2005 9:00 a.m. CITY OF NEWPORT BEACH GENERAL -PLAN ADVISORY COMMITTEE REVISED AGENDA Central Library Friend's Meeting Room 1000 Avocado Avenue I. Call to Order II. Rezoning of R-2 Areas to R-1 III. Selection of Preferred Land Use Alternatives for: Mariner's Mile Newport Center/Fashion Island Corona del Mar Airport Area IV. Reconsideration of Land Use Alternatives West Newport Highway Banning Ranch West Newport Industrial Old Newport Boulevard Balboa Penninsula (Cannery/Lido/McFadden Square) Balboa Village V. Public Comments Public Comments are invited on items generally considered to be within the subject matter jurisdiction of this Committee -- Speakers are asked to limit comments to 5 minutes. Before speaking, please state your name and city of residence for the record. *Reports are available on line at www.nbvision2025.com City of Newport Beach Planning Department r Memorandum To: GPAC From: Patricia Temple, Planning Director Date: July 18, 2005 Re: Rezoning of R-2 Areas to R-1 The possible reclassification of certain two-family residential areas was previously discussed and generally found acceptable by GPAC. The areas discussed were the portions of West Newport ocean ward of Coast Highway, the Balboa Peninsula and Balboa Island. The reasons staff asked for this consideration were two- fold: to recognize the growing trend to single family development in these areas, and as a way to eliminate projected traffic that might never be realized. At the West Newport Beach Association vision meeting and at the recent public workshop, we have received feedback that this idea is strongly supported in West Newport. GPAC recommended this change for West Newport at the last meeting's discussion on the West Newport Highway sub -area. • Through discussions with some community members on Balboa Island (although we are still trying to meet with the Associations on Balboa Island to confirm this), staff believes that this idea is also supportable. However, feedback received to date from the Balboa Peninsula has not been supportive of this idea. Therefore, we would like direction from GPAC on whether the Balboa Peninsula should continue to be considered for this change. This question will be on the agenda of the next GPAC meeting on July 23`d. As an alternative to rezoning strictly to R-1, some accommodation of small "Second Dwelling Units" could be provided for through the application of an overlay zone. There are provisions in State Law which encourage second dwelling units in single family areas, as a means to improve housing supply and to provide more affordable housing. Second units typically are limited in size, and may be subject to alternative development standards. If this concept in incorporated into this rezoning concept, the possibility of a second unit would be permissible, but not mandatory. 0 CITY OF NEWPORT BEACH GENERAL PLAN_ PRELIMINARY LAND USE RECOMMENDATIONS II FOR GENERAL PLAN ADVISORY COMMITTEE DISCUSSION July 23, 2005 Mariner's Mile Newport Center/Fashion Island Corona Del Mar John Wayne Airport Area • CITY OF NEWPORT BEACH EIP In association with URBAN CROSSROADS ■ APPLIED DEVELOPMENT ECONOMICS • TABLE OF CONTENTS • Introduction Mariner's Mile Newport Center/Fashion Island Corona Del Mar John Wayne Airport Area • • 1 3 8 12 15 \J INTRODUCTION Two meetings are scheduled for the Newport Beach General Plan Advisory Committee (GPAC) to prepare its land use recommendations, with the planning sub -areas divided between the two meetings. This document provides the framework for the GPAC's deliberations and recommendations for the second group of sub -areas, to be discussed at the July 23 meeting. Unlike previous discussion papers, where the study areas were presented alphabetically, they have been organized sequentially from west to east to enable the GPAC to ensure that adjacent areas can be considered together. This report presents the City of Newport Beach staff's and consultant team's recommendations for preferred land use alternatives for: ■ Mariner's Mile ■ Newport Center/Fashion Island ■ Corona del Mar ■ John Wayne Airport Area The recommendations are based on consideration of the benchmark documents prepared for the General Plan Update including the Community Directions for the Future developed during the General Plan Update Visioning Process., the Guiding Principles and Land Use Alternatives formulated by the GPAC with modifications to reflect Planning Commission and City Council input, and the Land Use Alternatives Traffic, Fiscal, and Environmental Impact Analyses prepared by the • consultant. Additionally, our recommendations were influenced by the public input received at the June 25 Land Use Alternatives Public Workshop. Finally, we have considered the goals of property owners with whom we have met, as well as our professional judgment. Cumulatively, the study area land use recommendations represent selections from thealternatives defined by the GPAC, the combination of elements from one or more of these, and modifications of these in consideration of their comparative traffic, fiscal, and environmental impacts and public input. In determining the recommendations, it is acknowledged that the City of Newport Beach will continue to experience some population and employment growth, though it is almost fully developed with few remaining vacant lands. The challenge is to accommodate the incremental growth in a manner that is consistent with, complements, and does not incur undue impacts on the qualities that uniquely distinguish the City. Important among the staffs and consultant's considerations for the recommended land use alternatives are the following goals: ■ Traffic impacts —reduction of citywide traffic volumes below those that would result from continued implementation of the existing adopted General Plan. ■ Fiscal impacts —attainment of a net fiscal benefit (citywide revenues exceed costs), while providing jobs and services for residents. ■ Environmental impacts —minimization of impacts on public services, infrastructure, natural resources, and scenic quality. ■ Community character —maintenance of the character of the City's distinct neighborhoods and commercial and business districts. PRELIMINARY LAND USE RECOMMENDATIONS 1 ■ Community viability —assurance of the economic viability of the City's uses through • improvement of underperforming and incompatible mixes of land uses and reinforcement of key business sectors that support the vision for the role and character of Newport Beach. • L� Inherently, it is recognized that it is impossible to optimize each of the goals in each of the sub -areas and trade-offs among these may be necessary. For example, the maintenance of a pedestrian - oriented "village" character for Corona del Mar, where the objective normally wouldbe to slow traffic, may conflict with intentions for efficient traffic flows on Coast Highway. As a result, in selecting the recommendations, it has been necessary to prioritize the most important goal, or goals, for each planning sub -area in consideration of the choices and trade-offs that may be required. The staffs and consultant's considerations in submitting the recommendations are documented In this report. To facilitate review, information pertaining to the existing characteristics and visioning process input for each planning sub -area previously distributed to the GPAC has been incorporated in this document. Land use recommendations, supplemented by a discussion of their related policy implications and basis for selection, are graphically presented in a text box to facilitate access. The latter includes a summary of applicable input from the June 25 Land Use Alternatives Public Workshop. PREI 0 MARINER'S MILE Description Mariner's Mile is a primarily auto -oriented area located along Coast Highway, which runs west to east, from the Arches Bridge on the west to Dover Drive on the east end. Commercial uses account for 82.9 percent of land uses in the study area: a mix of marine -related commercial uses (boat sales, sailing schools, and marina), some auto -related uses (auto dealerships and service) and neighborhood -serving commercial are located throughout the area. The Balboa Bay Club and Resort, a hotel and a private club located on City tidelands, represents 19.4 percent of uses in the area. Marine related uses account for 12.8 percent of the area, while auto -oriented uses account for 9.0 percent of the area. Multi -tenant commercial uses that combine a number of related or complementary uses in a single building or buildings that are connected physically or through design, account for almost 25 percent of area land uses. Waterfront development, such as dockside restaurants, is concentrated on the southern side of Coast Highway, while there are more general commercial uses along the northern side. Secondary uses include salons, restaurants, apparel, and other specialty shops ranging from wine stores to home furnishings stores. There are a high number of vacancies in Mariner's Mile relative to the other areas; 8.5 percent of the area contains vacant buildings. Many of these vacancies are sites with development potential. The City has recently embarked on a plan, Mariner's Mile Strategic Vision and Design Plan (adopted by City Council in 2000), to accomplish the following: create a pedestrian -friendly retail district along the northern portion of Coast Highway in the vicinity of Tustin Avenue, Riverside Avenue, and Avon Street; improve the auto -oriented strips located on the north side of Coast Highway, in the western and easternmost portion of the area; create a vibrant public waterfront south of Coast Highway; upgrade the visual character of the area with new landscaping and streetscape amenities; and improve private development standards associated with signage, architecture, and lighting. Parts of the area may not easily adopt a pedestrian character as there are commercial uses with parking in the front and traffic on Coast Highway is heavy. In addition, there is a possibility that Coast Highway could be widened in this area in the future, which would detract from the intentions of a more pedestrian -friendly environment by potentially narrowing sidewalks and allowing more traffic in the area. An issue to consider is how future development will affect the character of Mariner's Mile, and what kind of uses the community would like to have in this area. The western half of this area is within the Mariner's Mile Specific Plan area. The Specific Plan has designated the bay side of Coast Highway for Recreational and Marine Commercial, which allows for the following: (1) continuation of marine -oriented and visitor -serving uses; (2) maintains the marine theme and character of the area; and (3) encourages public physical and visual access to the bay. For the area inland of Coast Highway, the Specific Plan allows for Retail and Service Commercial uses, which is intended to serve as an active pedestrian -oriented retail area with a wide range of visitor -serving, neighborhood commercial, and marine -related uses. PRELIMINARY LAND USE RECOMMENDATIONS 3 • 0 Recommendations Vision A corridor that reflects and takes advantage of its location on the Newport Bay waterfront, supports and respects adjacent residential neighborhoods, and exhibits a quality visual image for travelers on Coast Highway. Uses (refer to Figure 7) ■ Bay frontage properties (sub -area "A"): marine -related and visitor -serving retail commercial, restaurant, hotel, institutional, and recreational uses. ■ Inland side of Coast Highway: a mix of visitor and local -serving retail commercial, residential, and public uses. • All property frontages on Coast Highway shall be developed for commercial uses. • The rear portion of properties generally east of Tustin Avenue and the southerly projection of Tustin Avenue (sub -area "D") may be developed for free-standing multi -family residential. • Inland parcels generally between Riverside Avenue and Tustin Avenue (sub -area "C") may be developed for commercial or mixed -use buildings with housing integrated above ground level retail or office uses. • Remaining parcels (sub -area "B") maybe developed for commercial uses. Development Capacity ■ Retail: 0.35 FAR and 0.5 FAR with lot consolidation. ■ Mixed use: 1.5 FAR. ■ Residential: 18 — 22 units per acre. Policy Discussion ■ Consider adopting design guidelines so that the development of inland properties with a mix of commercial and residential uses does not create land use conflicts, provides adequate circulation and parking and preserves views of the water. These should also provide for the protection of the bluff faces. ■ Consider options for the relocation of the City parking lot on Avon Street to better support the corridor's retail uses. ■ Consider options for the relocation of the postal distribution center to reduce parking impacts in the immediate area. ■ Consider modifying the Shoreline Height limit (26') on the inland side of Coast Highway to accommodate mixed use buildings provided that the limits fully protect views of the water. PRELIMINARY LAND USE RECOMMENDATIONS 4 0 !I LAND USE RECOMMENDATIONS A) Coastal Marine -Related Commercial and Institutional Use `C) Neighborhood -Serving Retail and M xed-Use Buildings (Housing Above Retail) (B Commercial D Retail on Highway Frontage, Residential Behind L� o 170M.ms m 1=1 CITY of NEWPORT BEACH GENERAL PLAN Figure 7 MARINER'S MILE mm.o iaee R.e ex M.l MW-FOMPy ReN fiol ammercipl lwlo-Reloletl COMY10iClol - MaMe-Rdia Commet Ial Perspml SeMces NnXure . MJtI-Tenant Commercial . R embnal OI cC u&rewlcavvet Ca Mmfty Commei u - NA e h RB6t Imt. Fast Fa Restaumnr Hotel �Ofla MWM Tenant lwus sMummVopan Space PibIIGSeM PLbtlo - 5cnaot me, � Fudic Pcv" vacant ailahg V..,t W option Bountlary xes. rilsum ernacmn.uswmre.mree.xuxv. zei R a. IXyalXwNnBwcv�Gwad Nm ,Wy7md,ON mom+/NOWa PobMWM Smb+Cn IDll. M,Ra AU: �Oequesletl� HN Createtl by: MJ(PP El P • • • ■ Development on 'the Bay frontage should implement amenities that assure access for coastal visitors, including views of the Bay from Coast Highway and a pedestrian promenade along the Bayfront. Basis for Recommendations 1. Visioning process participants identified Mariner's Mile as a location that needed revitalization and suggested that an overall vision be defined to meet this objective. It was also defined as a location appropriate for mixed -use development integrating housing and commercial or office space. A majority of survey respondents opposed hotel development in Mariner's Mile. 2. Participants in the Public Workshop (22 people) were almost equally divided on the questions of preserving opportunities for coastal -related uses in Mariner's Mile and whether the City should require or offer incentives to assure such uses. A number of participants indicated that high land values and rents limit the number of marine -related uses that can be economically sustained in the area. 3. ADE's study of the local marine industry found that rising costs have resulted in fewer firms serving the demand for boat service and parts, and businesses that do not have to be on the water have moved to inland locations. There is a possibility that reduced availability of boat services in Newport Beach could cause boat sales businesses to move inland as well, costing the City sales and property tax revenues. 4. Approximately 83% of the Workshop participants supported the development of housing in Mariner's Mile. This was evenly split between those who believed that housing should be located on both sides of Coast Highway and those who favor limiting it to inland parcels. 5. The Coastal Act prioritizes the development of coastal -related uses over the development of housing in the Coastal Zone and Coastal Commission staff have advised the City that provision of marine -related uses must be made along the Newport Beach waterfront. 6. Housing developed as free-standing structures or in buildings that integrate housing above ground level commercial uses can serve as a transition from Coast Highway's intensive commercial development and upland residential neighborhoods. 7. Inland properties flanking Riverside and Tustin Avenues offer the opportunity for the development of additional retail uses that support upland residential neighborhoods. These can be located and designed to promote active pedestrian activity, and, with adjoining housing development, could establish a "village" character, as proposed in the Mariner's Mile Strategic Vision and Design Plan. 8. Among the Guiding Principles that support the recommendations are: a. Encourage the revitalization of older commercial areas. b. General Plan land use policies should facilitate an economically viable concentration of marine uses. c. Support the careful expansion of visitor -serving businesses and facilities, including hotels. d. Protect and, where feasible, enhance the natural setting that contributes to the character and identity of Newport Beach and the sense of place it provides for its residents and visitors. PRELIMINARY LAND USE RECOMMENDATIONS 6 0 • • e. Encourage the redevelopment of under -performing commercial areas to allow residential or mixed -use development. f. Encourage the maintenance of natural landforms. g. Encourage the protection and, where feasible and appropriate, creation of public viewsheds within the City. PRELIMINARY LAND USE RECOMMENDATIONS 7 C, FASHION ISLANDINEWPORT CENTER Description Newport Center is generally located in the center of the city, north of Coast Highway between Jamboree Road and MacArthur Boulevard. Newport Center is a regional center of business and commerce that includes major retail, professional office, entertainment, recreation, and housing in a master planned mixed -use development. Fashion Island, a major retail shopping center, forms the nucleus of Newport Center, and is framed by this mixture of office, entertainment, residential, and housing. Newport Center Drive, a ring road that surrounds Fashion Island, connects to a number of interior roadways that provide access to the various sites within the Center and to the four major arterials that service this development. High-rise office and hotels buildings to the north of the Center form a visual background for lower rise buildings and uses to the south and west. Newport Center is essentially built out with the exception of a couple of vacant strips of land in the eastern portion of the site. There is entitlement for 111 additional rooms on the Four Seasons hotel site and just less than .300,000 square feet of entitled undeveloped retail space in Fashion Island. Combined, Newport Center and Fashion Island contain commercial land uses that represent 57.4 percent of this sub area. Fashion Island, a regional mall with a mix of specialty shopping, accounts for 15.8 percent of the uses within the sub area. Newport Center consists of professional office uses (26.6 percent of the study area), two hotels (6.3 percent), multi -tenant commercial (5.9 percent), public and semi-public uses such as the Police and Fire Departments and Orange County Museum of Art and Sports Museum (2.9 percent), and entertainment (1.5 percent) uses along the perimeter of • Newport Center Drive. The Center is also the site of a transportation center, located at San Joaquin Hills Drive and MacArthur Boulevard that includes a Park and Ride. A large open space area (26.1 percent) adjacent to Coast Highway and Jamboree Road in the western portion of the sub area is the site of the Newport Beach Country Club and Balboa Bay Tennis Club. Single- family attached residential uses (10.4 percent) also are located in this quadrant. There is a considerable amount of vacant land (approximately 16 acres) between MacArthur Boulevard and Avocado Avenue. Newport Center is largely built out, but there has been discussion of future development of office, hotel, retail, and residential uses in this area. • Recommendations Vision A successful mixed -use district that combines an economic and commercial center, which serves the needs of Newport Beach residents and the sub -region, with expanded opportunities to live close to jobs, commerce, entertainment, and recreation, and is supported by a pedestrian -friendly environment. Uses (refer to Figure 8) ■ Fashion Island: retail, restaurant, entertainment, and comparable uses. Opportunity should be provided to accommodate the development of an additional anchor tenant and supporting uses. ■ Newport Center: professional office, hotel, entertainment, housing, and recreational uses. Opportunity should be provided to expand housing, and hotel uses, but additional office development should be limited to existing buildings. PRELIMINARY LAND USE RECOMMENDATIONS 8 CITY of NEWPORT BEACH LAND USE RECOMMENDATIONS Retail - + 425,000 Square Feet Housing - + 450 Units GENERAL PLAN Figure 8 Office - + 44,000 Square Feet Hotel - + 111 Rooms NEWPORT CENTER/ FASHION ISLAND I I � L:c—J� I 1 � aall.l use F,�11L�177� R9itleMlol Resibentlal, SNgle-Fanlly Regbentlal MUIR-Family Resibenhol om AUto- nuto�Rebtetl Commeabl I Personal Senses, Rhless/Gyrns SpecloHy Retail, Shopping Mal Muh-Tenant ComsneRdct _Profess lOfAce/&sslnesyMetllcaWe' Dhe-In Restaurant Hotel Enterlalrment InetBRhonaVDpen 9pssce PublaISeml-Pubic 104 Open Space oP�e Vacant Lot Op Option Boantlay mems,�.. ram t m o soR tzn PROJECT NUMBER 105]9,01 ( 1 Reques bv: HLR Crew by. MN/PP Dale: 07113/05 L1P CJ is ■ "Newport Village" site, north of the Library, shall be developed as a City park. Development Capacity ■ Retail/entertainment: increase entitlement by approximately 125,000 square feet (for a total of 425,000) ■ Office: increase entitlement by 40,000 square feet ■ Housing: increase entitlement by 450 dwelling units ■ Hotel: no change to 111 room entitlement Policy Discussion ■ Pedestrian access and connectivity should be improved with additional walkways and streetscape amenities. ■ Additional retail entitlement should not be used for office development. Basis for Recommendations 1. in the Visioning process a majority of residents and businesses supported little or no change to Newport Center, but some were willing to allow growth for existing companies. At the same time, a majority supported keeping retail space at current levels, but many were willing to support expansion of existing stores and moderate increases for new businesses. Some participants favored mixed -use development and stressed the need for more affordable housing in particular. A majority of resident and business survey respondents supported building new hotels in Newport Center. 2. In the Public Workshop, approximately, two-thirds of the participants expressed moderate to strong support for the expansion of retail and entertainment uses in Fashion Island and about half supported the development of another retail anchor. Over half were opposed to further office development, while two thirds indicated support for additional hotel rooms. Development of additional housing was strongly supported by three-quarters of the participants. 3. The flexibility to develop retail space and hotel rooms will enable Fashion Island to respond to market demands as they evolve over the next 20 years and help to maintain its economic viability. 4. Additional hotel, retail, and residential uses will contribute to the City's fiscal well-being, while more office development would not pay the full costs to provide needed City services. 5. Increased residential entitlement will enable a larger number of persons to live close to their jobs, commerce, entertainment and recreation, reducing vehicle trips and length, energy consumption, and air pollution below those resulting from more dispersed patterns of development. Newport Center residents who commute to jobs outside the area will be traveling in the opposite direction of peak hour traffic. 5. Among the Guiding Principles that support the recommendations are: a. Support City efforts to optimize retail sales capture in the PRELIMINARY LAND USE RECOMMENDATIONS 10 0 • b. Facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. c. Capitalize on market and demographic changes and opportunities that emerge in key economic centers of the community d. Support the careful expansion of visitor -serving businesses and facilities, including hotels and meeting facilities e. Consider mixed -use development as a means to create additional housing opportunities. f. Consider urban scale development in areas where there is potential for development patterns that will minimize traffic. g. Additional development entitlement needs to demonstrate significant fiscal, economic or other community benefit. h. Establish land use and density/intensity limits that will have less impact on peak hour traffic. PRELIMINARY LAND USE RECOMMENDATIONS 11 0 • CORONA DEL MAR Description The Corona del Mar planning area is located along Pacific Coast Highway from Avocado Avenue to Hazel Drive. Figure 6-1 shows the regional location of the Corona del Mar area. Commercial land uses front Coast Highway with residential land uses directly to the east and west of the commercial uses. This area is primarily commercial (78.6 percent), with a mix of neighborhood -serving commercial (approximately 10.0 percent) and specialty shops (6.0 percent). Primary retail uses include restaurants (more than 8.0 percent), home furnishings, and other specialty shops ranging from apparel to architectural design services. Many commercial uses (about 40.2 percent of the area) are located in multi -tenant buildings with retail on the first floor of buildings and professional services located on the second floor. While there were a few commercial vacancies at the time of the land use survey, the most prominent was that of the Port Theatre located at the corner of Coast Highway and Heliotrope. Sherman Library and Gardens (about 9.0 percent of the area) is a private facility and research library open to the public. There is an assisted -living residential complex representing 7.4 percent of land uses in the area. Corona del Mar is pedestrian -oriented with a dense mix of commercial uses, streetscape amenities, street medians, and a limited number of signalized crosswalks. The Corona del Mar Business Improvement District (BID) was established in 1996 to enhance the shopping district of Corona del Mar to create an exciting, pedestrian and resident friendly experience. In 1999, the BID developed the "Vision 2004" Plan to implement community improvements for Corona del Mar. The plan envisions the creation of a linear park -like environment along Coast Highway from Avocado Avenue to Seaward Drive. The plan also calls for sidewalk landscaping, street furniture, street lighting fixtures, pedestrian activated crosswalks, parking lanes and various other improvements. A Specific Plan has also been contemplated for this area, but one has not been developed. Recommendations Vision A pedestrian -oriented "village" that serves as the center of community commerce, culture, and social activity and provides identity for Corona del Mar. Uses (refer to Figure 9) ■ Retail, office, cultural, and civic uses (comparable to and compatible with existing development). ■ Shared parking structures, provided that the ground floor of the street frontage contains retail uses. ■ Surface parking on parcels directly behind commercial uses. Development Capacity ■ Retail commercial and office uses: 0.5 FAR (per existing General PRELIMINARY LAND USE RECOMMENDATIONS 12 LAND USE RECOMMENDATIONS Retail and Office on Coast Highway Per Existing General Plan Possible Acquisition of Adjoining Residential Lots For Parking Shared Parking Facilities with Street -Facing Retail IAN . ? ]Tl AX CBY of NEWPORT BEACH GENERAL PLAN FIGURE 9 CORONA DEL MAR Edsting Lmd Use Re5l pfld R.etl fld MU FamNROVOOMial C4migralal Auto Related Commercbl Pe l Sema AmcmlPkccessory, Fur m. ButongEHard!/arcVGardea Supply MuwTeraM Commend ProfesOmal 0EBCe1Suv lvtwIaaWet Dmp , Community Cammercd, Footl Stores Nnah Raslaurml, Fast Food Rmiu.l helButbnWOpen Space rfs Publk /J ml Publb, Chu,a S/ Relgbus Uses D B LwJ Vacant BWItlYrg Vocal Lot O OpNm Boundary nn. 6tlOYi Pp�v�m-GR/sFw, We 6N'M\ frt. W a zse aco FwE moe, anuewMmar.ow.asb.+Nana an So.mw. w,w >om. w�.� mwew Sao. wm. ocow aao> oa ses.wawrm uwiwr, x.o�.+m.. XOS. MJECT NUMBER: IM79-01 Req a by, HUE Created W. W/PP Dote: 07/13/05 C • • • Policy Discussion ■ Permit the use of residential properties adjoining commercial parcels for surface parking, requiring that it be designed to mitigate visual, noise, vibration, lighting, and other impacts on residents. ■ Explore other methods to provide parking convenient to commercial uses, such as a parking district or relocation of the City parking lot at the old school site. ■ Consider adopting design guidelines to promote pedestrian activity along Coast Highway. ■ Continue implementation of Vision 2004 streetscape improvements that contribute to the corridor's pedestrian character. Basis for Recommendations 1. Visioning process participants expressed support for protecting Corona del Mar as an important historic village of,the City. 2. Approximately two-thirds of the Public Workshop participants indicated moderate to strong support for the enhancement of Corona del Mar as a pedestrian -oriented commercial center that serves its adjoining neighborhoods. A significant majority (61%) indicated moderate to strong opposition to the development of mixed -use buildings at key intersections and more (70%) opposed the clustering of commercial at intersections and redevelopment of intervening parcels for housing. 3. Redevelopment of residential properties abutting commercial uses for parking was supported by slightly more than half of the Workshop participants and opposed by about one-third. 4. Development of centralized parking facilities would provide opportunities for customers to park once and walk among the corridor's businesses, reducing vehicle trips and pollution. 5. Among the Guiding Principles that support the recommendations are: a. Facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. b. Enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. c. Preserve the community's heritage. PRELIMINARY LAND USE RECOMMENDATIONS 14 • JOHN WAYNE AIRPORT AREA Description The Airport Area covers approximately 360 acres and is bound by Campus Drive to the north, Bristol Street North/Corona del Mar Freeway to the south and Jamboree Road to the east. As the study area name implies, the area is adjacent to the John Wayne Airport. It is also in close proximity to the University of California, Irvine. This proximity has influenced the many uses in the area that support the airport and the university, such as research and development, high technology industrial and visitor -serving uses, such as hotel and car rental agencies. This area consists of 83.7 percent commercial uses with administrative, professional, and financial office uses accounting for 62.0 percent of the area's land uses. Multi -tenant commercial accounts for 7.5 percent of the area's land uses and provide support retail and services for office and industrial employment centers in the area. A number of industry headquarters are located in the Airport Business Area including Conexant and Jazz Industries, along with other major businesses located in Koll Center at MacArthur Boulevard and Jamboree Road. Industrial related uses account for 13.1 percent of the study area. Three large hotel developments account for 4.5 percent of the area's land uses. Also significant are a number of auto -related commercial uses located primarily in the northwest portion of the area. These auto -related uses include carwash, auto -detailing, rental, repair, and parts shops. The Airport Area is surrounded by John Wayne Airport in the County of Orange on the west, and the • City of Irvine on the north and east. Recent development activity in the City of Irvine's Business Complex has included the transfer of development rights, bringing more intense development closer to the AirportBusiness area, and resulting in the conversion of office to residential entitlement. This activity is changing the area to a mixed -use center. • Recommendations Vision A mixed -use center that provides jobs, housing, and supporting services in close proximity, with pedestrian -oriented amenities that facilitate walking and enhance livability. Uses (refer to Figure 10) Office and hotel uses on parcels not targeted for residential development. Retail services that support local housing, such as a grocery store, office tenants, and supporting uses (sub -area "A"). ■ - Residential development and buildings that integrate housing with retail or office uses (sub -area PRELIMINARY LAND USE RECOMMENDATIONS 15 CITY of NEWPORT BEACH GENERAL PLAN FIGURE 10 AIRPORT BUSINESS AREA Comm clal P 0 Relored Commemlal AW FltneWGy s swialryRetail Muttl-Tenant Comm lal Pra mllonol OBbe/[!W eWMedlcaWet M Cartvnunity Com mlal pine-In RaSloutant Fast Food Raelaumnt Ibtal Intludrbl Light lnduslllal r Business P ik lndusMal Multi Te .a llwu al MR CTNUMBER10579UI Requesledby. AM Cealed by NMRP • • • ■ Non-residential uses such as office, industrial, airport -related, and residential -supporting retail in the Campus tract (sub -area 'B") A higher development intensity than exists should be allowed as an incentive for redevelopment (within prescribed airport height restrictions). Development Capacity ■ Retail: maximum of 100,000 square of additional development (50% less than existing General Plan). ■ Office: no net increase above existing use, with transfer of capacity from sites redeveloped for housing to other locations such as the Campus tract (reduction of 350,000 square feet from existing General Plan) ■ Industrial: maximum of 43,000 square of additional development (per existing General Plan). ■ Hotel: additional 600 rooms. ■ Residential: maximum of 3,500 units as re -use of properties currently developed for office, industrial, and retail uses with corresponding reduction of their development capacity on parcels where residential replaces existing office. Policy Discussion ■ Establish development standards and design guidelines to assure that residential development creates a cohesive district that is compatible and integrated with adjoining office, retail, and industrial uses. At a minimum, the guidelines should address site planning, architectural character, landscape, site access/driveways, parking, streetscape/urban design elements, and inclusion of open space and recreational amenities. ■ To assure compliance with State Noise Guidelines and the Airport Environs Land Use Plan, housing should be located outside of areas exposed to a 65 dBA CNEL. ■ Underperforming retail uses located on parcels at the interior of large blocks should be redeveloped for other uses, with retail clustered along major arterials (e.g., Bristol, Campus, Macarthur, and Jamboree). ■ Incentives should be given to encourage lot consolidation and the re -use and improvement of properties located in the "Campus tract," west of Birch Street. Basis for Recommendations 1. Visioning process participants prefer revitalization of the Airport Area with income generating land uses over undirected growth. Generally, a range of development types were acceptable as long as traffic is not adversely affected. There was strong support for new hotels and broad consensus on mixed -use development with residential and revenue -generating uses. Survey respondents were comfortable with low-rise office buildings, and opposed to more car dealerships and industrial uses. There was split support for high-rise development and retail. 2. A majority of Visioning process participants believe it is acceptable to have more traffic congestion in certain locations of the City, such as the Airport Area, than in other parts of the PRELIMINARY LAND USE RECOMMENDATIONS 17 0 • • 3. Almost 80% of the Public Workshop participants expressed moderate to strong agreement that the Airport Area is urban in character, different than other City neighborhoods, and suitable for additional development. 4. Almost 80% of Workshop participants supported the development of housing in the Airport Area. Of those, about 60% favored a mix of low and mid -high rise buildings and the remainder supported high rise. 5. Almost all Workshop participants supported the revitalization of economically underperforming properties, such as the Campus tract, for office, industrial, and other uses. An equal number indicated that allowing somewhat higher densities was acceptable as an incentive for the area's revitalization. 6. Strong market demands and nearby development in the Irvine Business Complex make the Airport Area suitable for housing, provided that it is developed to achieve a cohesive district that is integrated with adjoining office/ retaillindustrial uses, as well as incorporates amenities that support an urban residential neighborhood. 7. Development of housing with the office uses provides the opportunity for residents to live close to jobs, reducing vehicle trips in the sub -region, air pollution, energy consumption, and noise. Airport Area residents who commute to jobs outside the area will be traveling in the opposite direction of peak hour traffic. 8. Areas generally west of Birch Street are within the 65 dbA CNEL for John Wayne Airport and unsuitable for housing development, based on State noise guidelines. While housing can be insulated, experience indicates that this would result in higher energy costs that contradict community conservation objectives, and outdoor spaces would be adversely impacted. 9. Increasing hotel and residential uses, while reducing office and industrial entitlement, will have a positive fiscal impact. 10. Clustering of retail uses along the major arterials will enhance their economic viability, provide shopping services for workers and residents in the Airport Area, and draw customers from Irvine's residential developments, increasing fiscal benefits for Newport Beach. 11. Among the Guiding Principles that support the recommendations are: a. Encourage the revitalization of older commercial areas. b. Facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. c. Additional development entitlement needs to demonstrate significant fiscal, economic, or other community benefit. d. Offer a distinct land use concept and policy framework for the Airport Area. e. Encourage the redevelopment of under -performing commercial areas to allow residential or mixed -use development. f. Consider establishing a different level of service standard for the airport area, subject to evaluation of possible impacts on residential areas. g. Consider urban scale development in areas where there is potential for development patterns that will minimize traffic. h. Establish land uses and density/intensity limits that will have less impact on peak hour traffic. PRELIMINARY LAND USE RECOMMENDATIONS 18 • Guiding, the Irvine Business Complex Particlpants:ln a weeklong, series of meetings created proposed guideline's for future development in the Irvine Business Complex, Existing residential [i charter' Apartments 403 units The:14etr6politan 261condos Villa Siena'Apartments 1,442 units 13 Toscana Apartments 563 units U 1 Watermarke 535 units Sources: city of hv6ie 0-16552 Von Kerman 104'apartments Avalon Bay 290 Apartments ® 2801 Alton Park*ay 184 condo units �2851.Alton 171condos 2801.2823 MCGBw 305 apartments 2801 Kelvin and'17,421 Murphy 248 units and 71 units 0 Retail centers ® Main Street Plaza ®,Michelson Market' �G Jamboree Promenade Olgmond ,x Jamboree CAI �. �i' •' � � A �'�. �' ;��`•-. - � � ,1�J, is �••. r"''YP�t���,, ;�' e Projects approved or pending approval: O Essex O'110 boson/Legacy 132 units 290 units (a, Irvine Crossings 2400 Michelson 752units 185 condos 0 O2323 Main (jl 2132.2168 Michelson 317apartments 444cond3Ma Central Park O n 1,380 ut units 1929-20 7819Gillette 306apartments, 0Marquee,atParkPlade 798 units Q MetLlfo ® Carlyle @ Colton Plaza 481 units . 156 condo units Whe'!.Ots 0 Von Kerman 115'dnlls 91Martin street' Condominiums 82vnits Campus Center 394 units Q Plaza -Irvine 357 units Graphics reporting by Jett Rowe, The Register • 4 �gW PpRT CITY OF NEWPORT BEACH ECONOMIC DEVELOPMENT COMMITTEE General Plan Update Land Use Alternatives Options Review and Recommendations to GPAC July 20, 2005 INTRODUCTION On June 22, 2005, the Economic Development Committee established a subcommittee to review the proposed land use alternatives for the general plan update developed by the General Plan Advisory Committee (GPAC). The charge of the subcommittee was to examine the proposed Options and report back to the entire EDC for consideration and adoption of formal recommendations to GPAC and the City Council. At their regular meeting of July 20, 2005, the full EDC discussed the subcommittee's • report and voted to forward the following recommendations for ten (10) geographic sub- areas. The Committee then continued the discussion until its August 17, 2005 regular meeting, to complete discussions on the remaining seven (7) sub -areas. These recommendations will be provided for the Planning Commission and City Council meetings on August 30, 2005. GENERAL DISCUSSION As noted in the fiscal analysis of the General Plan Alternatives, the City has the potential for increased annual revenues in a wide range of between $317,000 and $10.7 million per year, depending upon which of the various Options for each sub -area is selected. Significantly, increases in lodging (short-term hotel and vacation home rental) and retail sales are projected to provide the largest coritributions to increased revenue. However, in order to provide balance for the City and its quality of life, the EDC discussed and agreed a number of 'overriding principles' affecting the discussion, and by which the committee's conclusions were guided. 1. Changes to the General Plan should show an overall positive fiscal impact on the City, although not necessarily in each geographic sub -area. 2. It is clear that the City's residents do not believe a general citywide increase in traffic • is acceptable. Therefore the "true maximum" Option —which in most areas increases Pagel of 5 traffic within a sub -area —will not be the EDC's recommended Option unless there are • overriding issues or mitigating factors that would recommend otherwise. 3. It may be advantageous to recommend an Option that would anticipate additional traffic in a few geographic sub -areas; if in exchange, the Option adds substantial fiscal benefits, and that results in less overall potential traffic impact in other sub -areas. 4. All of the recommendations regarding the General Plan require a balancing of trade- offs —between providing for increased revenue for the City; increasing traffic; addressing environmental concerns; and quality of life. 5. The Committee notes the comments of the Harbor Commission regarding the fact that the harbor is an economic engine for the City, and notes that there is a need to preserve marine uses where possible, while allowing for market activity to enhance those uses. 6. The Committee notes that the financial data used in the Fiscal Analysis of the General Plan Alternatives is three years old, taken mainly from the FY 2002-2003 budget. If possible and practicable, the EDC suggests that staff examine the cost and feasibility of updating the numbers to the newly adopted FY 2005-2006 budget when the model is used to analyze the preferred land use plan. • RECOMMENDATIONS BY SUB -AREA • Airport Business Area: The addition of 6,600 residential units under Option 3 appears to be excessive for the area because of the 65 CNEL restriction, height restrictions, land use restrictions and CC&R's. Residential use is a good idea for the area along with a mixed -use concept, but with less housing. By concentrating increased traffic in the airport area, the City is projected to have a 16% increase in traffic as a trade-off for a $2.8 million increase in annual revenue. The increase in traffic concentrated in an area with good arterial roadways and three major freeways appears to be a good trade-off for the additional revenue. Recommendation: The EDC recommends Option 2 with a reduction of the potential 6,600 residential units to an amount consistent with the ability of the area to accommodate growth. The EDC also recommends that residential use be considered throughout the Airport Area, including the 'Campus Tract.' Balboa Village: The EDC does not support the addition of 300 hotel rooms in Option 5. We conclude that it is impractical for the area. Options 1, 2, and 3 provide for 34 infill hotel rooms which we feel is more consistent with the scale of the area. Page 2 of 5 • Recommendation: The EDC supports Options 1, 2 and 3 and rejects Options 4 & 5. Banning Ranch: The purchase of the entire property for open space by the City is prohibitive, and debt service on this single project would utilize all of the potential City-wide increases iri net revenue; therefore, that is not a readily -viable option. Second, the idea of a large hotel or a resort overlooking a sewer plant is not realistic and does not make economic sense. However, a viable solution may be the provision of a mix of housing types with generally local -serving commercial development for the upper area, along with the use of much of the lower area as open space and a tie-in to a potential trail system. The mix of housing would provide a positive fiscal benefit to the property owner and the City, and would provide the fiscal resources to restore the degraded oil field property to a viable open space tract. Recommendation: The EDC recommends Option 2. Cannery Village West: There is an ongoing need for the neighborhood retail and services now in place to continue to provide necessary goods and services to the area, and the potential for increased long-term revenues to the City are minimal. isRecommendation: The EDC recommends no change to the existing General Plan designations for this sub -area. • Cannery Village East: The proposed increase in vertical residential -over -commercial mixed -use development will have a mutually beneficial relationship with the existing commercial stock, and will help keep it viable as well. The residential community, then, can be served by the commercial development with minimal additional traffic impacts. Recommendation: The EDC recommends Option 1, with the bay front remaining in land uses that support recreational and marine commercial use. Corona del Mar: The existing commercial area in Corona del Mar is a very viable pedestrian -oriented retail and service strip that provides a net economic benefit to the City, by serving both the local community and by bringing in substantial sales tax revenues from non- residents. Recommendation: The EDC recommends no change to the existing General Plan designations for this sub -area. Page 3 of 5 • Lido Isle: The subcommittee's review notes that the Option to amend the existing General Plan designation regarding Lido Isle does not address economic or fiscal issues related to new revenue, but is primarily an option addressing residential lot line adjustments related to existing housing units already on the island. Recommendation: The EDC makes no recommendation, as the Option is not within the purview of the Committee. Lido Village North: Although both Options 1 and 2 include the allowance of mixed -use development in Lido Village North, Option 1 includes the potential for a small amount of boutique -style lodging space. And although they differ in land uses, because of the potential for a hotel both Options 1 and 2 provide substantial economic benefit to the City of approximately $1.3 million annually. In addition to its general recommendation for this area, the committee further recommends that the current program of tideland boat slip permits be shifted to a program of leases, which would increase revenues to the City. It also recommends providing additional visitor boat slips in this sub -area, which accommodate and enhance marine tourism while having few traffic impacts. Recommendation: The EDC recommends Option 1. • Lido Village South: Option 1 would increase the retail development potential and reduce the amount of potential office space; while Option 2 proposes mixed -use residential and retail space and no new office space. Both of the Options are positive fiscally; however, Option 2 performs much better at $78,000 per year in revenue. Recommendation: The EDC recommends Option 2 Newport Center / Fashion Island: The subcommittee's review notes that the projected retail revenue from the Fashion Island is underestimated as a result of the technical aspects of the fiscal impact model; the current model divides property zoned as " commercial" into 40% "service commercial" and 60% "retail commercial" throughout the City without reference to area. Service commercial generates a lower sales tax ratio than retail commercial. For Fashion Island, however, this assumption is not reasonable; and tends to understate the sales tax revenue from a center that has almost all retail commercial. Staff will work with the City's consultants in the next update of the economic model to adjust the sales tax revenue estimates from Fashion Island. However, the EDC notes that Option 1 provides for the addition of 480 hotel rooms and • 1,100 housing units, with only limited increases of retail and office space. The estimated Page 4 of 5 potential for a $3.9 million increase in annual net revenue to the City represents almost • 40% of the greatest possible increase suggested in the entire General Plan alternatives. Almost 98% of this increase is related to the increased lodging (hotel rooms). The EDC, mirroring the community survey results, supports the construction of an additional hotel or additional hotel rooms in the Newport Center/Fashion Island sub -area if proposed. The increased traffic from hotels does not occur at peak travel times, and thus the traffic impact is mitigated to some extent. Conversely, the increase in housing units by 1,100 units proposed in Option 1 appears to be excessive, and the EDC has concluded that a smaller number of units may be more appropriate. Recommendation: The EDC recommends Option 1; however, with a reduction in the proposed number of housing units from 1,100 to an amount consistent with the area's ability to accommodate growth. ADDITIONAL COMMENT 1. A motion was approved by the EDC to recommend that the Marinapark property discussion be included in the General Plan Update, if it would not unduly delay the process. Although the EDC is aware that a separately -appointed Council committee is addressing this matter, it is also clear that General Plan land use decisions affecting the use of the harbor do have a significant impact on the economic and fiscal health of the City and its residents, and on the quality of life in Newport Beach. Further, the EDC • recommends that any project on the Marinapark site incorporate additional visitor boat slips, which are almost non-existent outside of yacht clubs, and which enhance marine - related tourism that has little traffic impact on citizens. 0 • • Summary of recommendations and'Fiscal Impact • Traffic Impact Yr. Net I j I I I., Service I - I Dailyt l Subarea Option Revenues Housing Office Retail Industrial Lodging Marine Commercial Institutional Public increases Airport Business Area 2 Balboa Village 1,2,3 Banning Ranch 2 Cannery Village West Ext GP Cannery Village East 1 Corona Del Mar Ext GP Lido Isle NR Lido Village North 1452 1 Lido Village South 1463 2 Mariner's Mile McFadden Square East McFadden Square West Newport Center/Fashion Isle 1 Old Newport Blvd. W. Newport Hwy. A W. Newport Hwy. C West Newport Industrial S2,809,528 $80,465 (5233,614) $141.331 ($42,868) $2,984,052 $0 $50,632 ($88,402) ($82,068) 17,623 16% ($93,547) ($70,558) ($36,041) $4,530 so $0 $0 $5,880 $0 $2,642 (324) -2% $702,731 $213.592 $0 $34,389 $0 5489,691 $o $6.457 ($33,792) ($7,606) (5,319) -24% ($746) ($2,590) $0 $1,427 $0 $0 $o $298 $0 $119 0 0% $66,862 $31,836 $49,612 $26,367 ($39,144) $0 S0 ($1,461) $0 (5348) 1,218 12% $129,552 586,603 ($34,302) S54,370 $0 So So $15,827 $0 $7,054 0 0% $64,569 $63,271 $0 50 $0 $0 50 $o $0 $1.298 0 0% $1.368,587 $17,848 $49,014 $54,089 $0 $1,301,961 ($1,893) $0 ($52,432) $0 3.191 51% $78,307 $14,384 $12,832 $41,972 $0 So $6,958 $o $2.161 $0 1,655 28% Recommendation from EDC forthcoming. Recommendation from EDC forthcoming. Recommendation from EDC forthcoming: $3,931,206 551,529 ($118,438) $264,749 $0 S3,839,177 so $68,599 (551,672) ($122,738) 22,734 21% Recommendation from EDC forthcoming. Recommendation from EDC forthcoming. Recommendation from EDC forthcoming. Recommendation from EDC forthcoming. CITY OF NEWPORT BEACH HARBOR COMMISSION September 10, 2003 Ms. Sharon Wood, Assistant City Manager CITY OF NEWPORT BEACH 3300 Newport Boulevard Newport Beach, CA 92658-8915 Dear Ms. Wood: The Harbor Commission has reviewed -the current (May 2003) draft of the "Fiscal Impact Analysis & Model -Newport Beach General Plan Update" process prepared by the City's • GP update economic consultant, Applied Development Economics, Inc. • As a result of this review,(see Summary sections below), the Harbor Commission has identified a number of harbor —related land/water-use, economic and financial factors which it wishes the City, its consultants and GPAC to seriously consider in the continuing input to,'and refinement of, the update process. These factors are covered In the 'Recommendations" section at the end of this letter. Summary -Marine Industry Land Use, Economic & Fiscal. Characteristics & Trends-20'03 As summarized on pages 31 and 32 of the consultant's report, marine uses, and the marine industry "...account for over 1000 jobs and generate nearly $2.7 million in net revenues..." to the City of Newport Beach. The report summary accurately describes the steadily -evolving reduction in numbers of Newport Beach Marine Industry uses and their total revenues, as well as "leakage" to other market locations resulting from general marine industry attrition, consolidation, environmental regulation, and increasing land and operations costs. �7 J • The implications of the loss to the City of significant positive net revenues by further unchecked shrinkage and leakage of Marine Uses is noted in the report and by the Commission. Finally, the (seeming) inability of the Newport Beach Marine Uses to hold position or expand/diversify in Newport Beach in the face of these larger forces is also noted. The potential cooperative roles of private and public sector in creative solutions to these problems and arresting the trend of decline are described in the report summary. Summary- Fiscal Analysis of Existing General Plan Marine Uses-2003 This analysis (Table 13-pp24&25) shows Marine Uses in 5th place (of 91, contributing an estimated/allocated $4.6 million of City Revenues, and in 7 h place in terms of City Expenditures at $1.9 million, with a net positive balance to the City of $2.67 million, putting it in 3`d place in this category, behind Lodging (1s10) and Retail (2"d) This role of Marine Uses is significant in illustrating their importance to the City and its citizens/taxpayers, since it is one of the very few positive - balance uses offsetting the negative -balance Residential, Office, Industrial and Public uses, and enabling the City to show a modest positive balance • overall. Boat and Marine Equipment Sales Tax Revenues represent 5% of the total sales tax revenues generated by all of the land use categories , placing Marine Uses in 4th place in the 9 categories , ahead of light industrial and hoteis.(p22-Fig 1) • Marine Uses Gross Revenues are also 5% of gross City revenues , tied for 5th with public uses, and behind lodging, but still ahead of light industrial and service commercial, etc. (p22-Fig 2) Summary.; Fiscal Analysis of Potential General Plan Marine Uses at GP Buildout - 2025 The projected General Plan Buildout (pp 41&42) indicates growth by 2025 in all land use categories and in visitor levels, except for Marine Uses. The consultant's Fiscal Analysis GP Buildout Marine Uses Development Summary -2025 (Table 20-pp43&44) shows Marine Uses slipping to 6th place, with an estimated $4.9 million In City Revenues, reflecting only $0.3 million increase in 22 years. It shows Marine Uses holding in 7th place in terms of City Expenditures at $1.9 million, also no change in 22 years. Marine Uses although not increasing substantially, retain their net positive balance to the City of approximately $3 million, staying in 3rd place in this category, behind Lodging (Vto) and Retail (2"d). 2 jl 4. The report summary states: "We have not assumed, however, a commensurate Increase in the marine industry or the number of boats moored in Newport Harbor. The general plan buildout projection does not include additional marina berths, and as discussed earlier, some elements of the marine industry are tinder pressure from rising real estate prices and may not be able to expand readily In Newport Beach." Harbor Commission Recommendations Recommendation 1-Analyze Both No -Growth and Growth Alternatives for Marine Uses The current GP update projection for Marine essentially a passive "hold -the -line" position for Newport Beach.over the next 22 years, which the overly conservative and not a reasonable basis 1 current experience of Newport Beach and communities. Uses, as noted above, assumes Marine Uses in the community of Harbor Commission believes to be or future planning based upon the other waterfront/marine industry The Harbor Commission believes that there are actually two alternative scenarios/choices which should be analyzed for Newport Beach marine uses in • the General Plan Update process, in order to provide perspective for GPAC/City decision -making: A. Passive -No Growth: Experience indicates that a passive, non -proactive approach to a dynamic land use and economic element such as marine uses and related activities would not maintain the status quo, as permitted in the existing General Plan. Rather there would be a significant, potentially catastrophic decline in the role of marine industry uses as a Newport Beach "economic engine', employment and visitor generator, and as an important image maker over the next two decades through complacency and inaction and through market forces. This condition should be unacceptable to the Newport Beach community, but it Is important that its negative implications for City fiscal health, overall economics, image and heritage should be fully examined in the General Plan update effort, to serve as a cautionary example of potential decline. The Harbor Commission feels that this issue requires a more comprehensive discussion of the potential negative economic impacts on Newport Beach of a decline In marine uses and revenues, supplementing the existing consultant report text and financial projections, to serve as a cautionary example for City, GPAC and consultant analysis, and to lend perspective to an alternate, preferred approach, described below. B. Proactive -Sustainable Growth: The Harbor Commission and its predecessor Harbor Committee have, over several years, had numerous discussions on the potential evolution of the existing marine uses and activities, as well as their • revenue potentials, on the land and water areas of Newport Harbor. These discussions, also incorporating the experience of other evolving waterfront communities, project a diversification and consolidation as well as more efficient grouping of the Newport Beach marine uses and related water -dependent activities on both land and water. Numbers, types, locations, and combinations of uses and activities will chanbe and evolve, as will their primary and secondary economic, • people, environmental and image benefits. Rather than a "wishful thinking projection this positive evolution of marine uses and activities would be the result of proactive efforts already underway by the Newport Beach private and public sectors to retain and strengthen this important sector of the community. Thus this active and developing trend, rather than a simple projection of existing conditions, should be considered by the General Plan update process. It is the position of the Harbor Commission that the Proactive -Sustainable Growth option for marine uses in Newport Beach needs to be analyzed and discussed in more detail among City Staff, Harbor Commission representatives, GPAC and the City's consultants during the current GP update process. It can then be refined and integrated into a updated General Plan through City, GPAC and consultants as the desirable choicelbasis for General Plan policies, objectives and implementation strategies for marine uses, using the already -adopted Harbor and Bay Element, in conjunction with the other elements of a new General Plan. Recommendation 2- Expand Marine Uses SIG/NAICS Categories, Revenue Sources The Commission feels that the sources and amounts of "Marine Industry" revenues potentially ascribable to this category, need to be reviewed as to the comprehensiveness of its SIC and NAICS subcategodes(see attached list), as well as all other related revenue sources, in subsequent GPAC discussions and In GP consultant/staff analysis. Recommendation 3- Add Marine Tourism Uses and Revenue Sources to Marine Uses The Harbor Commission believes that the important existing (and potential) roles of the Marine Uses in the General Plan, and in the economic and fiscal "balance" of uses in the community are not yet fully addressed in the General Plan update process to date, and need to be expanded to encompass all harbor -related, uses, both traditional "marine", as well as marine tourism and water -related uses. Ongoing marine industry data gathering and analysis efforts and results need to be provided to the City, GPAC and consultants for use in this marine tourism analysis. Recommendation 4- Expand Consideration of Tidelands Uses to New Water - Based Uses 0 • The Commission feels that the consultant's analysis of potential economic and fiscal sources and solutions needs to be extended to the water areas of the City. General Plan options with additional implementation recommendations should be considered for City actions and public/private partnerships. These options would conserve key waterfront locations and important marine uses, enhance user -pay public access and uses atton the harbor, sustain and improve the harbor environment, improve harbor operations and sustain and create uses and activities providing secondary economic benefits to the City and harbor. The Harbor Commission sees the potential for a sustained and growing marine user base to contribute needed revenue for dredging and other harbor quality initiatives of the Commission. Absent same, the burden will fall solely upon the waterfront residential users and boaters, or in combination, a further burden on City expenditures. We stand ready to support the ongoing processes by City staff, consultants, and GPAC. Respectfully Submitted, Newport Beach Harbor Commission • Timothy C. Collins, Chairman 40 1�. • Recommendation #2 Attachment Comments/ Questions Related to Marine Land Use Definitions by SIC/NAICS Codes (Appendix A of Fiscal Impact Analysis and Model -Newport Beach General Plan Update) Background The Harbor Commission acknowledges and is pleased that the Fiscal Impact Study consultant has provided a very useful distinction between marine and general land uses by their creation and analysis of a separate category of marine uses in the GP update. In a harbor -based community such as Newport Beach, with numerous marine services, berthing, and water -based tourism and transportation uses which are evolving from a past dominant role, scale and mix to still -important current and future new roles, it is essential to be able to define and measure this change, see important trends and plan the future proactively in documents such as the General Plan, Local Coastal Plan, RAMP, etc. ' It is understood by the Harbor Commission that the Marine Uses data available to the consultant for this study may not have been assembled by, or available from, the data sources in a number of the SIC/NAICS categories and subcategories of "marine uses". It is further understood that data for many specialized land use subcategories may have • been aggregated, either at the sources or by the consultant for simplification purposes, since this is only one of a number of land uses being considered in the broader scope of the overall General PIan Update process. Questions In asking these questions, The Harbor Commission does not propose to extend the scope, tinting or cost of the consultant's work or City Staff effort, or to delay the GP update process, but rather to seek clarification on: 1. whether certain general categories of data were computed and analyzed including some key subcategories, 2, if other data sources were consulted to determine revenues and costs and, "3. if allocations of revenues and costs for Tidelands areas were proportionately allocated between the harbor/bay area and the ocean beaches/related areas. Question 1- Comprehensiveness of Categories/Subcategories Data Inclusion a. SIC4493/NAICS713930 Marinas & NAICS713990 Boating Clubs w/o Marinas Do these categories include data on subcategories: Boating Clubs w/Marinas, Sailing Clubs w/Marinas, Yacht Basins, Yacht Clubs w/Marinas, Recreational Kayaking, Recreational Rowing Clubs, Parasailing, Charter Fishing? 0 V / 1 L_J b. SIC 7997/7999 Beaches, Piers, etc. Do these categories include data on subcategories: Bathing Beaches, Beaches, Beach Clubs, Beach Amusement/Regreation Services, Fishing Piers? Question 2 - Inclusion of Other Data Sources Are/where are the revenue and cost sources listed below included in the analysis? It is assumed that some are grouped under Tidelands, others under general retail, etc. Can we get a clarification? If not can these issues/sources be flagged for future consideration and analysis by the City, others? a. Moorings (offshore and shore), including annual and visitor sources, OC costs b. Private piers and docks (presumed estimated thru permits) c. Commercial piers and docks (" 11 11 11) d. Public piers, launch ramps, dry storage of vessels e. Beach parking, other water -related uses parking (public, lessees) f. Institutional/non-profit/educational marine uses and activities S. Waterfront/water-related tourism and retail (boat rentals, restaurants, etc.) • Has there been any research into sources of tourism data other than that from the annual NB Visitors Bureau estimates which might be able to define the magnitude of "marine/water-related tourism economic impacts? (universities, private sector?) Are any of the unique* direct and indirect revenues/economic benefits to the community of marine/waterfront land use -based events and activities included? (Christmas Boat Parade; Newport to Ensenada Race, major regional, national, international sailing & rowing regattas; other YC and BBC events; NH Nautical Museum Events/Tall Ships Visits; OCC Sailing Center events; Scout Sea Base events; NH Aquatic Center events, Backbay Fireworks, other events; In -Water Boat Shows, BI Art Walk, etc. * (It should be noted that most of these activities are unique to a harbor community Iike NB with a protected water area and a varied -uses, public - access waterfront. They are seasonally/annually cyclical and economically very significant in their attendance levels, as differentiated from the general flow/levels of beach -city tourism focused primarily on the ocean beach(es) and pier(s). In the state, only San Francisco Bay and San Diego Bay have similar activity diversity/.added value from an enclosed harbor/waterfront uses. The Newport Beach economy significantly benefits from these water - uses events, and is/will be increasingly dependent on their economic • benefits, derived from a balanced mix of key waterfront uses and activities.) 17 Question 3- Tidelands Areas Revenues/Costs Allocation Is it possible to differentiate or proportionally allocate between those Tidelands costs and revenues ascribable�to the ocean beaches and related areas and services and those ascribable to the harbor and bay and their interior beaches, wetlands and services? This would be helpful in attempting to project and allocate future costs and services associated with both areas, setting of lease and rental rates; fees, etc, on appropriate user-pay/balanced-budget approaches. It would also be helpful in defining and weighing land use, public use planning choice -making for the Tidelands areas during the GP update process. n U 0 Jul 22 05 12:37p Rera Energy 7145779149 p.2 July 22, 2005 City of Newport Beach General Plan Advisory Committee c/o Ms. Sharon Wood, Assistant City Manager 3300 Newport Boulevard Newport Beach, CA 92663 SUBJECT: GENERAL PLAN ADVISORY COMMITTEE (GPAC) PROPOSED LAND USE ALTERNATIVE NEWPORT BANNING RANCH (TRANSMITTED BY FAX) Dear Ms. Wood: This letter is written on behalf of the owners of the Banning Ranch property and in response to the current GPAC land use recommendation which was selected at its July 16t' meeting. As you know, I attended this meeting as well as several others along the way to in an effort to share background information about the property and to try understand the evolution of thoughts and ideas being • considered for our land. I would like to commend City staff, your consultant team and last, but not least, the outstanding community volunteers that have devoted so much time and effort to help shape the vision for Newport Beach in the coming years. Although the bulk of our property remains in unincorporated Orange County territory, it remains our sincere preference to work with the City on future planning and processing for the Banning Ranch. Nevertheless, we urge you to reconsider the recommendation adopted by GPAC last Saturday morning. We have serious concerns related to the economic feasibility of the selected Reduced Taylor Woodrow Alternative (RTWA). It remains unclear to us how the RTWA came to be. It appears to be only an arbitrary cutting in half of the so-called Taylor Woodrow Proposal (TWP). Over the many months of shaping the proposals for the City's General Plan, we have heard several references to a need to address affordable/workforce housing with an eye on the Banning Ranch as perhaps one of the City's few remaining candidate sites. The massive reduction in allowable units in the RTWA conflicts with our ability to work with the City in attempting to address this important issue. As you know, the Banning Ranch has been and continues to host an active producing oil field. A comprehensive, and expensive, oil field abandonment and clean-up pursuant to stringent oversight agency requirements and consolidation of these operations to smaller drilling and producing islands is a fundamental • prerequisite to any reuse or potential public access to portions of the land in the Aera Energy LLC • 3030 Saturn Street, Suiie 101 • Brea, CA 92821 • (714) 577-9154 Jul 22 05 12:37p Rera Energ9 7145779149 p.3 • reasonably near future. The land use yield reductions set forth in the RTWA diminish the incentives to the owners to accelerate these clean-up activities. In addition to these costly efforts, a host of other local, State and Federal agencies will have to be consulted and permits obtained before reclamation of the Banning Ranch property can be implemented. It is typical that these permits and approvals involve significant additional financial commitments. In light of the above, we continue to believe the TWP (as was suggested in your staff report) represents a reasonable foundation for a viable project with benefits to all stakeholders. This alternative was developed on the basis of several years of detailed technical studies and, in our view, would provide the best hope for a near term, high quality redevelopment of the property that will include substantial open space complementing the ongoing efforts in support of the Orange Coast River Park. In fact, the TWP is consistent in its open space design with those concepts in circulation from the River Park advocates. The TWP also incorporates a commitment to a "State of the Art" water quality treatment program that will handle not only on site drainage and run-off but upstream discharges from existing urban lands that drain onto and across our property towards the ocean. It is also very important to remember the TWP represents a very significant density, use and traffic generation reduction from the City's currently adopted General Plan. All of these factors are clearly consistent with the expressed GPAC priorities. We are also deeply concerned about the discussion regarding what appeared to be an "in effect" moratorium regarding some kind of mandatory acquisition process of the property for open space. In addition to the obstacles discussed above related to oil field clean-up and consolidation (or buy-out), we don't believe it appropriate to incorporate a delay to the owner's ability to plan, entitle and develop its property. In closing, we appreciate the opportunity to provide these comments and want to reiterate our desire to work with the City and its residents on future planning of the Banning Ranch. We ask only that the foundations outlined in the City's General Plan create the positive framework and incentive for continued coordination in what firmly believe can be very high quality community addition to Newport Beach. We would be happy to meet with you to further discuss these matters at your convenience. Sincerely, Geor Basyev Vice President GENERAL PLAN ADVISORY COMMITTEE Saturday, July 23, 2005 Roger Alford Ronald Baers Patrick Bartolic Phillip Bettencourt Carol Boice Elizabeth Bonn Gus Chabre John Corrough Lila Crespin Laura Dietz Grace Dove • Nancy Gardner Gordon Glass Louise Greeley Ledge Hale Bob Hendrickson Tom Hyans Mike Ishikawa Kim Jansma Mike Johnson Bill Kelly Donald Krotee Lucille Kuehn Philip Lugar William Lusk • Barbara Lyon 1 r '► Marie Marston • Jim Naval d Catherine O'Hara Charles Remley Larry Root John Saunders Hall Seely Jan Vandersloot Tom Webber Ron Yeo, Raymond Zartler • L� T GENERAL PLAN AASORY COMMITTEE Saturday, July 23, 2005 PUBLIC SIGN -IN NAME ADDRESS/PHONE E-MAIL ADDRESS Mp(w1"I1i✓b✓a, 7q-3! W, ' jI NWy,`Y`2-Co �?n)1��y2�'�, t ✓jtYl'h/!'r����YIUr/2�•torn >S� V v, i 2,077ti , Co�rT ra �v3 9LG G� ��,.� e/s e �r/fSti�w�✓, oa S-ry I C, Iz r 120 S �v elk, �`L4 (� l lAM 4-� - k." PA."�cl �St� Q SYicE�s a 14 54i-fluovrz C�73-1 o70 .. Zj 0 Mill r GENERAL PLAN AXISORY COMMITTEE Saturday, July 23, 2005 PUBLIC SIGN -IN NAME ADDRESS/PHONE E-MAIL ADDRESS ak M07S iqz& w .�A T2 �G L Sia- ��� y7G�X��DS � (LA(LEN T2ni�q��mrN.co� �I � \Ilut � ��'Ii �jovvv�°� � ��•�� • GENERAL PLAN AASORY COMMITTEE Saturday, July 23, 2005 PUBLIC SIGN -IN NAME ADDRESS/PHONE E-MAIL ADDRESS �c nna 33115 e-tjporf Zo3 ,�. B, c A 9 z6'63 6 A. Co 1Zyu; Q(� kq�� st c� L � , W 04� w'i-N 2W Q 6✓f - L�2gC (� ��o r Wge54 , - a GENERAL PLAN AASORY COMMITTEE Saturday, July 23, 2005 PUBLIC SIGN -IN NAME ADDRESS/PHONE E-MAIL ADDRESS GENERAL PLAN ARISORY COMMITTEE Saturday, July 23, 2005 PUBLIC SIGN -IN NAME ADDRESSIPHONE E-MAIL ADDRESS CITY OF NEWPORT BEACH GENERAL PLAN ADVISORY COMMITTEE Minutes of the General Plan Advisory Committee Meeting held on Saturday, July 23, 2005, at the Newport Beach Central Library. Members Present: Roger Alford Phillip Bettencourt Carol Boice Elizabeth Bonn John Corrough Lila Crespin Laura Dietz Grace Dove Nancy Gardner Members Absent: • Ronald Baers Patrick Bartolic Gus Chabre Kim Jansma Gordon Glass Louise Greeley Ledge Hale Bob Hendrickson Mike Ishikawa Mike Johnson Bill Kelly Donald Krotee Lucille Kuehn Philip Lugar Marie Marston Jim Naval John Saunders Hall Seely Jan Vandersloot Ron Yeo Raymond Zartler Tom Hyans (sick leave) Charles Remley William Lusk Larry Root Barbara Lyon Tom Webber Catherine O'Hara (sick leave) Staff Present: Patricia Temple, Planning Director Gregg Ramirez, Senior Planner Debbie Lektorich, Executive Assistant Woodie Tescher, EIP Consultant Carleton Waters, Urban Crossroads Members of the Public Present: Seymour Beek Steve Koen Mark Murrell Walt Boice Robert Launsbury Nelson Nio Robert Brower C. Lush Dennis O'Neil Dan Daniels Adele Mann Dolores Offing Mike Erickson Mel Mann Mayone Saweps Magdi Hanna Carol McDermott Dolly Shaw Jack Hardy Stu McKenzie Karen Tringali Kelly Hillman Craig Morissette • I. Call to Order Philip Lugar called the meeting to order. II. Rezoning of R-2 Areas to R-1 Patty Temple reviewed the memo distributed with the agenda packets and the feedback received from some of the community associations regarding this issue. Raymond Zartler asked why some people considered it a bad idea. Ms. Temple stated there were two concerns: one from people who rely on the second unit for retirement income and the other from those who feel it would reduce the housing supply. Gordon Glass asked if the process included a vote of the affected properly owners. Ms. Temple indicted it did not, however they must be notified by mail. Philip Bettencourt asked if R-1.5 would reduce the building bulk/mass and still allow the opportunity for income. Ms. Temple indicated R-1.5 is still two family zoning with a FAR difference. She added that the areas being discussed are already R-1.5. John Corrough asked if creating a second unit overlay would address some of the concerns. Ms. Temple thought conceptually it would give someone the right to have the second unit within certain parameters. Ron Yeo didn't recalling discussing this change for Balboa Village. Ms. Temple confirmed we had not discussed Balboa Village. Mr. Yeo asked if it would remain the same if we did nothing. Mr. Tescher indicated It would. John Saunders suggested a compromise which would be to change the zoning to R-1, • however build in very generous grandfathering/rebuilding provisions. Jim Naval pointed out that parking is an important issue to consider so we don't increase the problem. Ms. Temple indicated that the second units are usually granted a lower parking requirement because of the size of the unit. Nancy Gardner pointed out that the second units have assisted first time home buyers get into the market. Mike Ishikawa asked if any parking was lost when making the change to R-1. Ms. Temple indicated that many of the existing duplexes do not provide the amount of parking that would be required if built today; the parking requirements have changed. Lucille Kuehn asked if it would be possible to allow the current owner to take advantage of the second unit and when the property changed hands go to the lower density. Ms. Temple explained that existing units would still be legal, just non -conforming which would limit the amount of modification allowed. However if a new owner wanted to tear down the structure they could only build a single unit. Bill Kelly pointed out that there was no reason to change the zoning, the trend is already taking place. Ms. Temple indicated we base traffic projections on the zoning which assumes there are two units; which could penalize the city has a whole when trying to get an accurate picture of traffic conditions for the future. Mr. Tescher added • that there could also be impacts to the infrastructure systems. 2 • Mr. Yeo pointed out that in Corona del Mar people are tearing down single family units and replacing them with two large units. Mike Johnson thought that we should not discourage owners who want to retain their duplex units from remodeling a structure that may be 25-40 years old. Mr. Lugar opened the discussion to the public. Craig Morrisette, Central Newport Community Association, stated he had received input from association members regarding this issue. They are concerned with what would happen if their homes were destroyed by fire or natural disaster —would they be permitted to rebuild their duplex units and they were also concerned about income from the second units. They don't want the City second guessing what they may want to do with their properties in the future. They feel there is no compelling reason to rezone the area to R-1. He pointed out that developers who are purchasing multiple lots, are rebuilding single family units due to the market today. He feels this is a temporary trend that will not last. He added that granny units are for people 62 and over, however these units are usually on the second floor and not conducive to seniors. He stated that the Central Newport Association supports the enforcement of current code and reinforced their major concerns. Stewart McKenzie, Newport Beach, stated he was involved in the last down zoning when the area went from R-3 to R-2 which also affected the height of structures. He also pointed out that parking is reduced when you go to a single family unit. He • pointed out when homes are over 2,000 square feet at least 3 parking spaces are needed and R-2 provides 4 parking spaces. He felt that we are trying to change the peninsula into something it really isn't. Jack Hardy, Newport Beach, pointed out that lenders do not like to loan on non- conforming structures, so it may be difficult to resell these properties. Mr. Yeo made a motion to retain the decision to change West Newport to R-1 and rescind previous actions taken for Balboa Island and the peninsula. Mr. Glass suggested amending the motion to leave Balboa Island open for discussion until staff has met with the homeowner associations to determine how they feel about the issue. Mr. Yeo accepted the amendment. Mr. Lugar called for the vote. Motion passes. III. Selection of Preferred Land Use Alternatives for: Mariner's Mile Woodie Tescher reviewed the staff recommendation for the area. Ms. Temple reported that the Economic Development Committee reviewed the alternatives and could not come to any firm conclusion for this area. • Don Krotee asked what the traffic impacts would be for the staff recommendation. Carleton Waters indicated that adding residential to the area would be a positive impact with a slight reduction in peak hour traffic. 3 • Jan Vandersloot pointed out that the alternatives summary showed an increase in traffic. Mr. Tescher indicated that summary was based on the GPAC alternatives not the staff recommendation. Mr. Navai is concerned about preserving the views from the parks and homes located above this area. Mr. Tescher pointed out that this issue would be addressed in policy and added that staff recommended the mixed use in the back of the property so the buildings would not impact the views. Mr. Yeo made a motion to approve the staff recommendation. Mr. Johnson asked if the staff recommendation considered moving the post office. Mr. Lugar indicated that would be a policy decision. Mr. Johnson was also concerned with the safety of bicyclists in the area and asked how we could address the issue. Mr. Tescher indicated Mr. Waters was making a notation and it would be discussed when we deal with the Circulation Element. Ms. Dietz suggested additional signage might help with the situation. Mr. Vandersloot pointed out that the staff recommendation is being presented without the benefit of analysis we have been able to review for previous alternatives. He would have liked to see the analysis prior to voting on the recommendations. Mr. Lugar opened the discussion to the public. Carol McDermott, Government Solutions, stated she was representing property owners isin the area and participated extensively with the subcommittee discussions. She offered the committee wording changes to the staff recommendation document. She recommended adding residential as a permitted use on the bay side of the highway. She felt that a mixed use development would spur revitalization for the area, and recognized that the Coastal Commission would have to evaluate each request. She also recommended adding housing above retail or office uses on the Coast Highway frontages. She also asked that the words "rear portion" be removed from 'the bullet referring to Sub Area D with the recommendation to take into account the views of the residents above. Under development capacity, Ms. McDermott recommended adding "which results in a minimum frontage of 100 feet" to the requirement for .5 FAR. She pointed out that discussion of height limits might be more of a zoning issue rather than a General Plan issue. Dan Daniels, Ardell Marina, pointed out the need for revitalization in Mariners Mile. He felt that restaurants do not do well because of the complaints of noise from residents of Lido Isle. He added that most residents surveyed during this process have objected to a hotel on Mariners Mile. He stated that he was very excited early in the process when residential was considered for the area and felt that without residential there won't be revitalization on the bay side. He added that without additional development the walkway will not happen. Mark Murrell, Mariners Mile property owner, pointed out that communication among the • property owners is better than it has been in 25 years. The property owners want revitalization for Mariners Mile. He added that they had just worked with CalTrans to III • get streetlights for the area. He acknowledged that redevelopment could be difficult due to the number of small parcels owned by families/trusts. He asked the committee to allow mixed use on both sides of the highway and also to consider softening the requirements for marine uses. Dolores Offing, Newport Beach, indicated she appreciates the rights of property owners however she feels there may come a day when you won't see water anywhere in the city. Seymour Beek, Balboa Island, indicated he had attended the Economic Development Committee meeting when they discussed the area and the committee was split on whether to allow residential on the bay side of the highway. He felt that if residential was allowed it will take over and marine uses will suffer. Ms. McDermott disagreed with Mr. Beek stating that the Coastal Commission has the ultimate control and is required to balance the provisions of the Coastal Act. She believes that residential could not take over because of those provisions. Mr. Vandersloot pointed out that there has been a lot of degradation of views from the parks above for many years and this may be the last chance to preserve the remaining view. He added that in the document Ms. McDermott presented she suggested striking out the word "preserve" and replace it with "consider" under the policy discussion regarding views. He is also concerned with traffic in the area and even though it was stated that the staff recommendation would reduce traffic he would like to see it in a • document he could study. Ms. 'Dietz asked for clarification of what views were being discussed, she felt that we have a large number of public view sites already in the city. She pointed out that we need to balance the loss of view against what is economically beneficial. • Mr. Bettencourt stated he supported residential on the coastal side of the highway. Ms. Dietz suggested an alternate motion accepting Ms. McDermott's changes under Uses. Mr. Yeo did not accept the alternate. Lucille Kuehn stated that when she was on the City Council in 1974 they were talking about revitalization of Mariners Mile and it hasn't succeeded yet. She felt we need to take into consideration all that we have seen in presentations from other areas of the state in order to make it work. Mr. Corrough added that this area is trapped in 1974 and other communities have found ways to work with the private sector to seek creative proposals. He added that the Harbor and Bay Element of the General Plan and the LCP are currently treated passively by the City. Roger Alford indicated he would be voting against this motion because he agrees that the uses need to be expanded to include residential and allow owners to take full advantage of their property. 5 Mr. Bettencourt also indicated he would be voting no because he felt that with proper • design standards developments could still provide view protection and provide public access along with residential uses. Mr. Johnson asked if we allowed residential would there be any impact for the City from the Coastal Commission. Ms. Temple responded that she really didn't know how the Coastal Commission would view this type of development. Hall Seely stated he would also vote no on this motion because he felt residential would create no more of an impact on the marine environment than a hotel or other commercial use. He felt that providing flexibility to the property owners was important. Mr. Glass pointed out that the reason some of the restaurants have failed on the bay side is because they were trying to become more of a nightclub instead. Carol Boice asked about the traffic impacts of residential on the bay side of the highway. Carleton Waters responded that the addition of residential compared to the staff recommendation would increase traffic. Mr. Lugar called for a vote. Motion Passes. Newport Center/Fashion Island Woodie Tescher reviewed the staff recommendation for the area. Ms. Temple reported that the Economic Development Committee reviewed the alternatives and favored • Option 1 which added 480 hotel rooms and 1,100 housing units. Ms. Boice pointed out that adding residential to the area increases traffic as well as impacts the local schools which are already overflowing. Bob Hendrickson felt that the additional 40,000 sq. ft. for office was not going to be adequate considering the amount existing in that area. He added that the subcommittee thought allowing more hotel use would have positive fiscal affects. Ms. Boice added that with the amount of traffic that would be generated in the area the noise levels would be higher than 65 CNEL at the airport which would impact the neighborhoods on MacArthur, Jamboree and Coast Highway. Mr. Yeo made a motion to accept the staff recommendation. Mr. Vandersloot was concerned with the additional trips generated by the staff recommendation and made an alternate motion to stay with the existing general plan instead. Mr. Yeo did not accept the alternate motion. Mr. Krotee asked what the impact on traffic would be if the housing was cut in half and the hotel numbers were doubled. Mr. Waters thought it would be a slight reduction in overall trip generation. Mr. Glass offered an alternative motion to accept Option 3 instead of the staff recommendation. Mr. Yeo accepted this alternative. 11 Mr. Vandersloot pointed out that Option 3 adds approximately 600 peak hour trips. Mr. • Glass questioned that amount because there is less office and the hotel traffic is trickle traffic. Ledge Hale pointed out that Option 3 adds 1,226 housing units versus the staff recommendation of 450 units. Mr. Tescher added that Option 3 triples the housing units and does not provide for another anchor in Fashion Island. Ms. Kuehn asked what the fiscal impact would be if the additional anchor was deleted and housing was increased. Mr. Tescher indicated there would be a significant impact however did not have the exact amount. Mr. Glass withdrew his motion because he felt it did not make economic sense. He then offered another motion to accept Option 3 and add the additional anchor. Mr. Yeo accepted that alternative motion. Lila Crespin asked what type housing was recommended. Mr. Tescher indicated it would be multi family units. Ms. Gardner was concerned with the amount of housing because recent legislation increases housing numbers by 35%. Mr. Tescher indicated pending legislation may require minimum density be 30 units per acre. Ms. Boice again pointed out that the schools in the area cannot handle the number of students that would come from the additional housing. • Mr. Lugar called for a vote. Motion failed. Mr. Yeo made a motion to accept the staff recommendation. Mr. Krotee recommended an alternative motion to limit the housing to 600 units and raise the hotel rooms to 200. Mr. Hendrickson agreed adding that the hotel should be 250 units instead. Mr. Yeo agreed to the changes. Ms. Dietz asked if the Marriott renovations had been factored into the numbers. Ms. Temple indicated that the Marriott had reduced their current unit numbers. Ms. Kuehn asked about the rationale of decreasing the housing units when the community needs housing. Ms. Gardner responded that we added approximately 2,000 units at last week's meeting and we have some large numbers in the airport area also. Mr. Lugar called for a vote. Motion passes. Corona del Mar Woodie Tescher reviewed the staff recommendation for the area. Ms. Temple reported that the Economic Development Committee reviewed the alternatives and recommended the retention of the existing general plan. Mr. Glass pointed out that even though the study did not include the strip behind the • commercial, this area is a section that could make a difference. 7 Mr. Yeo pointed out that there is a lot of parking behind the commercial areas that is currently zoned residential. He indicated there is concern about loosing that parking due to the current market. He made a motion to accept the staffs recommendation and grandfather existing buildings to allow a maximum 1.0 FAR under development capacity. Mr. Lugar opened the discussion to the public. Walt Boice, Newport Beach, told the group that the current .5 FAR discourages redevelopment of the older buildings in Corona del Mar and asked the group to consider allowing the leeway similar to Balboa Village to encourage redevelopment. Ms. Crespin asked how this would affect parking. Ms. Temple explained that in Balboa Village allows for complete reconstruction of non -conforming buildings without required parking. Ms. Dietz pointed out we should keep in mind that is a walking community. Ms. Crespin added that the restaurants get more visitors than any other area and parking impacts the residents who live near them. Ms. Gardner agreed and asked if there was a way to encourage added parking. Mr. Vandersloot pointed out that Option 2 causes the least amount of traffic. Mr. Lugar called for a vote. Motion passes. Airport Area Woodie Tescher reviewed the staff recommendation for the area. Ms. Temple reported that the Economic Development Committee reviewed the alternatives and recommended Option 3. They didn't think the area could accommodate the 6,600 dwelling units so their recommendation was consistent with the staff recommendation. Mr. Yeo asked if the City was trying to take over the airport. Ms. Temple responded that the City was talking with the County about becoming part of the management of the airport. Mr. Kelly asked if the housing would be multi -story buildings. Mr. Tescher indicated there was a separate study going on looking at a variety of housing types for this area. Mr. Seely pointed out that the subcommittee thought part of Area A would also be suitable for housing, currently one story office buildings between Teller and Von Karman. Mr. Tescher indicated the dilemma was that there were so many property owners there and staff felt that the area would not be redeveloped because of that. Mr. Seely stated the property owners he knew were waiting for redevelopment opportunities and would not be opposed to residential. Mr. Tescher indicated he would get that information to the people doing the study. Mr. Bettencourt indicated he was going to abstain on this issue and reviewed the Brookfield project he is working on in the area. Mr. Corrough asked where the Council thought 6,000 housing units would fit in this • area. Mr. Tescher indicated the analysis had not been done at the time Council indicated they thought residential would work in this area. A Mr. Saunders made a motion to accept the staff recommendation with the addition of residential in Area B and in the area of Area A referred to by Mr. Seely. Ms. Kuehn asked where the affordable housing would be designated in this area. Mr. Tescher indicated that would be a policy, not a designated area on the map. Mr. Vandersloot indicated he was in favor of more residential in the area however felt we should subtract other elements to make it traffic neutral. Mr. Tescher indicated the motion would have slightly higher traffic numbers. Mr. Vandersloot asked to have the motion amended to neutralize the traffic impact. Mr. Saunders asked how much office would need to be eliminated to do this. Mr. Waters indicated it would be approximately 600,000 square feet. Mr. Saunders agreed to amend his motion to reduce office by 300,000 square feet. Mr. Lugar opened the discussion to the public. Carol McDermott, Newport Beach, distributed a document with language changes to the recommendations presented to the Committee. She agreed that housing is appropriate in Area C and thought the most logical place will be in existing parking lots. She felt the amended language would make it clear housing would be allowed as replacement of an existing building or parking lot. Steve Koen, Newport Beach, stated he agreed with the motion made by Mr. Saunders which allows 3,500 units plus any exchange of office space that will neutralize the • traffic concern. Mr. Lugar called for the vote. Motion Passes. III. Reconsideration of Land Use Alternatives West Newport Highway Banning Ranch West Newport Industrial Old Newport Boulevard Balboa Penninsula (Cannery Village/Lido Village/McFadden Square) Balboa Village The Committee did not want to reconsider any of the Land Use Alternatives decided for any of the areas discussed at the meeting. IV. Public Comments No additional comments were offered. N