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HomeMy WebLinkAboutPC2024-008 - RECOMMENDING CITY COUNCIL ADOPTION OF A GENERAL PLAN AMENDMENT, AFFORDABLE HOUSING IMPLEMENTATION PLAN, DEVELOPMENT AGREEMENT, ENVIRONMENTAL IMPACT REPORT ADDENDUM NO. 9 TO THE 2006 GENERAL PLAN UPDATE PROGRAM ENVIRONMENTAL IMPACT REPORT ANDRESOLUTION NO. PC2024-008 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, RECOMMENDING CITY COUNCIL ADOPTION OF A GENERAL PLAN AMENDMENT, AFFORDABLE HOUSING IMPLEMENTATION PLAN, DEVELOPMENT AGREEMENT, ENVIRONMENTAL IMPACT REPORT ADDENDUM NO. 9 TO THE 2006 GENERAL PLAN UPDATE PROGRAM ENVIRONMENTAL IMPACT REPORT AND 2008-2014 CITY OF NEWPORT BEACH HOUSING ELEMENT UPDATE INITIAL STUDY/NEGATIVE DECLARATION, AND TRAFFIC STUDY FOR THE RESIDENCES AT 1600 DOVE PROJECT LOCATED AT 1600 DOVE STREET (PA2022-0297) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by The Picerne Group (“Applicant”), with respect to the property located at 1600 Dove Street, and legally described in Exhibit “A,” which is attached hereto and incorporated by reference (“Property”). 2. The Applicant requests approvals to that would allow future development of a seven-story apartment complex consisting of up to 282 apartment units (“Project”), which requires the following approvals: • General Plan Amendment (“GPA”)- A request to add 49 dwelling units above the General Plan allowance, and amend Anomaly Number 12 of the General Plan Table LU2 (Anomaly Locations) to allow 49 residential dwelling units at the Property; • Affordable Housing Implementation Plan (“AHIP”)- A preliminary plan specifying how the Project would meet the City’s affordable housing requirements, in exchange for a request of 50% increase in density including a request for three development standard waivers related to height, park dedication requirement, and overall residential density along with two development concessions related to the payment of park in-lieu fees and affordable unit mix pursuant to Chapter 20.32 (Density Bonus) of the Newport Beach Municipal Code (“NBMC”) and Government Code Section 65915 et seq. (“State Density Bonus Law”); • Development Agreement (“DA”) – A development agreement between the Applicant and the City, pursuant to Section 15.45.020 (Development Agreement Required) of the NBMC, which would provide the Applicant with the vested right to develop the Project for a term of 10 years and to provide negotiated public benefits to the City; DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 2 of 24 01-17-23 • Traffic Study - A traffic study pursuant to Chapter 15.40 (Traffic Phasing Ordinance) of the NBMC. • Addendum to the 2006 General Plan Update Program Environmental Impact Report (“Addendum No. 9”) - Pursuant to the California Environmental Quality Act (“CEQA”), the Addendum addresses reasonably foreseeable environmental impacts resulting from the Project; and 3. The Property is designated Mixed-Use Horizontal 2 (MU-H2) by the General Plan Land Use Element and located within the Newport Place Planned Community (PC-11) Zoning District Professional and Business Office Site 7. 4. The Property is not located within the coastal zone, therefore amending the Local Coastal Program or obtaining a coastal development permit is not required. 5. A public hearing was held on May 23, 2024, in the Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of the time, place, and purpose of the hearing was given in accordance with Government Code Section 54950 et seq. (“Ralph M. Brown Act”), and Chapter 15.45 (Development Agreements), and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to and considered by, the Planning Commission at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. The City Council adopted Resolution No. 2006-75 on July 25, 2006, thereby certifying the adequacy and completeness of the Environmental Impact Report (“EIR”) for the General Plan Update (SCH No. 2006011119). The EIR was prepared in compliance with California Public Resources Code Section 21000 et seq. and its implementing State regulations set forth in the California Code of Regulations Title 14, Division 6, Chapter 3 (“CEQA Guidelines”) and City Council Policy K-3. Additionally, in accordance with Section 15168(a) of the CEQA Guidelines, the City prepared the EIR as a Program Environmental Impact Report (“PEIR”). This PEIR analyzed the potential impacts of a citywide land use plan and the goals and policies of 10 general plan elements. 2. The City Council adopted General Plan Amendment No. GP2008-003 on November 22, 2011, thereby approving the 2008-2014 City of Newport Beach Housing Element Update and its associated Housing Element and Initial Study/Negative Declaration under CEQA. 3. The City Council adopted Resolution Nos. 2007-79 and 2012-62 on December 11, 2007 and July 24th, 2012, respectively, approving Addenda Nos. 1 and 2 to the 2006 General Plan Update EIR to analyze changes to the development intensities within the North Newport Center Planned Community (“NNCPC”) Development Plan. 4. The City Council adopted Resolution No. 2020-78 on September 8, 2020, approving Addendum No. 3 (ER2020-002), to the 2006 General Plan Update EIR to amend the General Plan Land Use Designation of the Newport Airport Village project located 4341, 4361, and 4501 Birch Street; 4320, 4340, 4360, 4400, 4500, 4520, 4540, 4570, 4600, and DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 3 of 24 01-17-23 4630 Campus Drive; and 4525, 4533, and 4647 MacArthur Boulevard, from Airport Office and Supporting Uses (AO) to Mixed -Use Horizontal 2 (MU-H2) and amend Table LU2 (Anomaly Locations) to add Anomaly No. 86 to allow for the development of 329 dwelling units, exclusive of any permitted density bonus, and 297,572 square feet of commercial uses. No analysis specific to the Property was included in Addendum No. 3. 5. The City Council adopted Resolution No. 2021-2 on January 26, 2021, approving Addendum No. 4 (ER2020-003), to the PEIR to amend Planned Community Development Plan No. 15 (Koll Center Newport Planned Community) for the creation of a residential overlay zone and a park overlay zone to allow for residential use and a public park within the Koll Center Newport Professional and Business Office Site B, including a major site development review, traffic study, lot line adjustment, affordable housing implementation plan, and development agreement for the Residences at 4400 Von Karman Project. No analysis specific to the Property was included in Addendum No. 4. 6. The City Council adopted Resolution No. 2022-19 on March 22, 2022, approving Addendum No. 5 (ER2022-001), to the PEIR to approve the Residences at 1300 Bristol Street Project. No analysis specific to the Property was included in Addendum No. 5. 7. The Planning Commission approved Resolution No. PC2022-011 on May 12, 2022, approving Addendum No. 6 (ER2022-002), to the PEIR to approve the Ritz Carlton Residences Project. No analysis specific to the Property was included in Addendum No. 6. 8. The City Council approved Resolution No. 2024-22 on April 9, 2024, approving Addendum No. 7 (PA2022-0296) to the PEIR to approve the Residences at 1400 Bristol Project. No analysis specific to the Property was included in Addendum No. 7. 9. The City Council approved Resolution No. 2024-25 on April 9, 2024, approving Addendum No. 8 (PA2022-0040), to the PEIR for the consideration of the Residences at 1401 Quail Street Project. No analysis specific to the Property was included in Addendum No. 8. 10. Pursuant to Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, when an EIR has been certified for a project, no subsequent EIR is required unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following: a. Substantial changes are proposed in the Project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; b. Substantial changes occur with respect to the circumstances under which the Project is undertaken which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 4 of 24 01-17-23 c. New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete, shows any of the following: i. The project will have one or more significant effects not discussed in the previous EIR; ii. Significant effects previously examined will be substantially more severe than shown in the previous EIR; iii. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the Project, but the Project proponents decline to adopt the mitigation measure or alternative; or iv. Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the Project proponents decline to adopt the mitigation measure or alternative. 11. Addendum No. 9 to PEIR was prepared pursuant to Section 15162 (Subsequent EIRs and Negative Declarations) and 15164 (Addendum to an EIR or Negative Declaration) of the CEQA Guidelines. 12. The following environmental topics were analyzed for the Project: Aesthetics, Air Quality, Biological Resources, Cultural Resources, Energy, Geology and Soils, Greenhouse Gas Emissions, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation, Tribal Cultural Resources, Utilities and Service Systems, and Wildfire. The Addendum includes analysis of new topics that were not included in the previous EIRs; specifically, it includes a new Energy, Wildfire, and Tribal Cultural Resources section. These additional analyses are appropriate for inclusion in Addendum No. 9, but none result in new or increased significant impacts that would require preparation of a subsequent EIR pursuant to Section 15162 of the CEQA Guidelines. 13. On the basis of the PEIR and entire environmental review record, including Addenda Nos. 1-9, the Project (inclusive of recommended conditions of approval) will not result in any new significant impacts that were not previously analyzed in the PEIR, Addenda Nos. 1, 2, 3, 4, 5, 6, 7, and 8 to the PEIR. Addendum No. 9, which is attached hereto as Exhibit B and includes Addenda Nos. 1-8, confirms and provides substantial evidence that the potential impacts associated with this Project would either be the same or less than those described in either the PEIR, Addenda Nos. 1, 2, 3, 4, 5, 6, 7, and 8 to the PEIR. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the PEIR, Addenda Nos. 1, 2, 3, 4, 5, 6, 7 and 8 to the PEIR nor has any new information regarding the potential for new or more DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 5 of 24 01-17-23 severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, an addendum to the previously adopted PEIR, including Addenda Nos. 1, 2, 3, 4, 5, 6, 7, and 8 to the PEIR is the appropriate environmental document for the Project. In taking action to approve any of the requested applications for the Project, the data presented in the PEIR, Addenda Nos. 1, 2, 3, 4, 5, 6, 7, and 8 to the PEIR as augmented by Addendum No. 9 for this Project, are considered part of the record. 14. Addendum No. 9 is hereby recommended for approval by the Planning Commission given its analysis and conclusions. Addendum No. 9 and related and referenced documentation, constitute the administrative record upon which this decision was based, are on file with the Planning Division, City Hall, 100 Civic Center Drive, Newport Beach, California. 15. The Planning Commission finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time-consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages that may be awarded to a successful challenger. SECTION 3. REQUIRED FINDINGS. General Plan Amendment An amendment to the 2006 Newport Beach General Plan Land Use Element is a legislative act. Neither Title 20 (Planning and Zoning) nor California Government Code Section 65000 et seq., set forth any required findings for approval of such amendments. Finding and Facts in Support of Findings: 1. The Property is designated Mixed Use Horizontal 2 (MU-H2) by the General Plan. The Mixed-Use Horizontal 2 (MU-H2) designation applies to properties located in the Airport Area. It provides for a horizontal intermixing of uses that may include regional commercial office, multifamily residential, vertical mixed-use buildings, industrial, hotel rooms, and ancillary neighborhood commercial uses. No changes are proposed to the underlying land use designation of the Property. 2. The GPA and the resulting increase in dwelling units is compatible with the existing surrounding uses and planned land uses identified by the General Plan, because the Project would introduce additional residential units in the Airport Area, within an area that already allows residential development. The Airport Area includes a diverse mix of land uses including the gradual development of residential multifamily dwellings. The additional residential development would consolidate growth and support commercial properties within the Airport Area. DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 6 of 24 01-17-23 3. The requested GPA to add 49 dwelling units within the Mixed-Use Horizontal 2 (MU-H2) designation does not eliminate existing or future land uses to the overall detriment of the community given the site’s size, location, and surrounding uses. The existing office building on-site was built in the 1970’s and there are sufficient office facilities in the Airport Area to support the business needs of the community. The proposed change to allow additional residential density would increase the City’s housing stock including the provision of units that will be affordable to lower incomes, as required by the PC-11 Residential Overlay. 4. The Property is located in an area of the city that has sufficient utility systems to serve the Project. No off-site improvements other than typical utility connections are currently proposed or required as part of the Project. 5. The Project is consistent with the following City of Newport Beach General Plan policies that establish fundamental criteria for the formation and implementation of new residential villages in the Airport Area with additional policy analysis included in the EIR Addendum No. 9: a. Land Use Element Policy LU 1.1 (Unique Environment): Maintain and enhance the beneficial and unique character of the different neighborhoods, business districts, and harbor that together identify Newport Beach. Locate and design development to reflect Newport Beach’s topography, architectural diversity, and view sheds. The Project enhances the distinct, urban character of the Airport Area by providing a means for replacing parking lots and a 1970’s era office building with functional residential development, in line with the General Plan goal of transitioning the Airport Area to a mixed-use community. The Property is not in or near any of the City’s areas that feature the harbor, unique topography, or view sheds. The proposed project would introduce residential units to the Property consistent with the uses and urbanized character of the Airport Area and the existing Mixed-Use Horizontal 2 (MU-H2) designation. b. Land Use Element Policy LU 2.3 (Range of Residential Choices). Provide opportunities for the development of residential units that respond to community and regional needs in terms of density, size, location, and cost. Implement goals, policies, programs, and objectives identified within the City’s Housing Element. The Project includes up to 282 multi-family residential units, inclusive of 139 base units from the conversion of 60,675-square-foot office building, 49 added units from the requested GPA, and 94 units from the requested 50% density bonus. Of the 282 residential units, 28 or 15% will be set aside for very low-income households. The Project responds to market needs and diversifies the City’s housing stock by adding additional dwelling units to the Airport Area. c. Land Use Element Policy LU 3.8 (Project Entitlement Review with Airport Land Use Commission) - Refer the adoption or amendment of the General Plan, Zoning Code, specific plans, and Planned Community development plans for land within the John DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 7 of 24 01-17-23 Wayne Airport planning area, as established in the JWA Airport Environs Land Use Plan (“AELUP”), to the Airport Land Use Commission (“ALUC”) for Orange County for review, as required by Section 21676 of the California Public Utilities Code. In addition, refer all development projects that include buildings with a height greater than 200 feet above ground level to the ALUC for review. The Project is within the boundaries of the Airport Environs Land Use Plan (“AELUP”), therefore, the overseeing agency, ALUC, must review the proposed GPA pursuant to Government Code Section 65302.3 and Public Utilities Code Section 21676. The purpose of ALUC’s review is to determine whether the Project is consistent with the AELUP prior to the City Council taking action on the Project. The Project is located within the City’s updated 60 decibel (“dBA”) community noise equivalent level (“CNEL”) contour as shown in Figure N5 of the Noise Element of the General Plan as well as the 60 dBA contour identified in the AELUP, where residential development is allowed. As a result, the Project will be required to comply with the development standards set forth in Section 20.30.080(F) (Residential Use Proximate to John Wayne Airport) of the NBMC. Further, the Project site is located within Safety Zone 6, which allows residential development. d. Land Use Element Policy 6.15.3 (Airport Compatibility). Require that all development be constructed in conformance with the height restrictions set forth by the Federal Aviation Administration (FAA), Federal Aviation Regulations (FAR) Part 77, and Caltrans Division of Aeronautics, and that residential development shall be allowed only on parcels with noise levels of less than John Wayne Airport 65 dBA CNEL noise contour area as shown in Figure N5 of the Noise Element of the General Plan, unless and until the City determines, based on substantial evidence, that the sites wholly within the 65 dBA CNEL noise contour shown in Figure N5 are needed for the City to satisfy its Sixth Cycle RHNA mandate. Nonresidential uses are, however, encouraged on parcels located wholly within the 65 dBA CNEL contour area. The Project is located within the updated 60 dBA CNEL contour as shown in Figure N5 of the Noise Element of the General Plan as well as the 60 dBA contour of the AELUP, where residential development is allowed, subject to the development standards set forth in Section 20.30.080(F) (Residential Use Proximate to John Wayne Airport) of the NBMC. e. Land Use Element Policy LU 6.15.5 (Residential and Supporting Uses). Accommodate the development of a maximum of 2,200 multi-family residential units, including work force housing, and mixed-use buildings that integrate residential with ground level office or retail uses, along with supporting retail, grocery stores, and parklands. Residential units may be developed only as the replacement of underlying permitted nonresidential uses. When a development phase includes a mix of residential and nonresidential uses or replaces existing industrial uses, the number of peak hour trips generated by cumulative development of the site shall not exceed the number of trips that would result from development of the underlying permitted nonresidential uses. However, a maximum of 550 units may be developed as infill DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 8 of 24 01-17-23 on surface parking lots or areas not used as occupiable buildings on properties within the Conceptual Development Plan Area depicted on Figure LU22 provided that the parking is replaced on site. General Plan Land Use Policy LU 6.15.5 established a development limit of 2,200 maximum dwelling units for the Airport Area. Of the 2,200 residential units allowed, 1,650 units may be developed as replacement of existing office, retail, and/or industrial uses. The remaining 550 units are classified as additive units meaning they are not required to replace other units and they may be constructed as “in-fill” units to existing commercial or office development within the Conceptual Development Plan Area (“CDPA”) of the Airport Area. Any eligible density bonus allowed by Government Code Section 65915 (Density Bonus Law) and Chapter 20.32 (Density Bonus) of the NBMC are not included in the 2,200-unit allowance. The 550 additive units have been previously allocated to the Uptown Newport and Residences at 4400 Von Karman projects. Considering the dwelling unit sum of the previously approved projects, the remaining and available development allocation within the Airport Area would be 209 dwelling units. With the development of this Project, there would be 70 dwelling units (209-139=70) remaining, exclusive of density bonus units and units authorized through a GPA. The Property is developed with an existing 4-story commercial office building totaling 60,675 square feet. Since the Project can be developed only as the replacement of the underlying nonresidential office use (without a GPA), and the number of peak hour trips generated by cumulative development of the Property shall not exceed the number of trips that would result from development of the underlying permitted nonresidential uses, a conversion rate of 2.29 dwelling units per 1,000 square feet of commercial floor area is required. This results in a total of 139 dwelling units. The Project includes a request for a GPA to increase the base units by 49 dwelling units, which results in a total base unit count of 188 dwelling units. With the application of a 50% density bonus (i.e. 94 units), a maximum of 282 units could be constructed. f. Land Use Element Policy LU 6.15.6 (Size of Residential Villages). Allow development of mixed-use residential villages, each containing a minimum of 10 acres and centered on a neighborhood park and other amenities (as conceptually illustrated in Figure LU23). The first phase of residential development in each village shall encompass at least 5 gross acres of land, exclusive of existing rights-of-way. This acreage may include multiple parcels provided that they are contiguous or face one another across an existing street. At the discretion of the City, this acreage may also include part of a contiguous property in a different land use category, if the City finds that a sufficient portion of the contiguous property is used to provide functionally proximate parking, open space, or other amenity. The “Conceptual Development Plan” area shown on Figure LU22 shall be exempt from the 5-acre minimum, but a conceptual development plan described in Policy LU 6.15.11 shall be required. The Property is 2.49 acres in size. The Residential Overlay of PC-11 allows residential development on sites containing less than 10 acres if housing units DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 9 of 24 01-17-23 affordable to lower income households are provided. The Project will allocate a minimum of 15% of the base dwelling units as affordable for very-low income households. Therefore, the Project will be exempt from General Plan Policy LU 6.15.6 (Size of Residential Villages). g. Land Use Policy LU 6.15.7 (Overall Density and Housing Types). Require that residential units be developed at a minimum density of 30 units and maximum of 50 units per net acre averaged over the total area of each residential village. Net acreage shall be exclusive of existing and new rights-of-way, public pedestrian ways, and neighborhood parks. Within these densities, provide for the development of a mix of building types ranging from townhomes to high-rises to accommodate a variety of household types and incomes and to promote a diversity of building masses and scales. The Project proposes 188 base units at a density of 75.5 dwelling units per acre on the 2.49 net-acre site. A waiver from Land Use Policy LU 6.15.7 regarding maximum density is requested as part of the AHIP. The base density does not include the 50% density bonus (94 units) that is allowed by the State Bonus Density law and Section 20.32 (Density Bonus) of the NBMC. Altogether, the Project would reach an overall maximum density of 113 dwelling units per acre, which is exclusive of rights-of-ways, public pedestrian ways, and neighborhood parks. The Project is a for rent apartment building with up to 282 units. There will be a mixture of unit types, ranging from studios to two-bedroom units, and possibly 3-bedroom units, accommodating a variety of household types and incomes. Of the dwelling units, 28 units will be affordable to very-low income households and the remaining units will be market-rate housing, which will increase the City’s overall housing stock for various household income levels. h. Land Use Policy LU 6.15.8 (First Phase Development Density). Require a residential density of 45 to 50 units per net acre, averaged over the first phase for each residential village. This shall be applied to 100 percent of properties in the first phase development area whether developed exclusively for residential or integrating service commercial horizontally on the site or vertically within a mixed-use building. On individual sites, housing development may exceed or be below this density to encourage a mix of housing types, provided that the average density for the area encompassed by the first phase is achieved. The Project would be developed in one phase on an individual site with a maximum density of 113 units per acre. The Project provides a mixture of residential unit types that include 28 units of affordable housing to very-low-income households. The proposed density is above the required minimum of 45 units per acre and the Applicant is requesting a development standard waiver allowed by State Density Bonus Law to exceed the maximum density of 50 units per acre. i. Land Use Policy LU 6.15.9 (Subsequent Phase Development Location and Density). Subsequent phases of residential development shall abut the first phase or DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 10 of 24 01-17-23 shall face the first phase across a street. The minimum density of residential development (including residential mixed-use development) shall be 30 units per net acre and shall not exceed the maximum of 50 units per net acre averaged over the development phase. See finding LU 6.15.9 First Phase Development Density above. Tribal Consultation (SB18) 6. Pursuant to California Government Code Section 65352.3 (SB18), a local government is required to contact the appropriate tribes identified by the Native American Heritage Commission (NAHC) each time it considers a proposal to adopt or amend the General Plan. If requested by any tribe, the local government must consult for the purpose of preserving or mitigating impacts to cultural resources. The City received comments from the NAHC indicating that 12 tribal contacts should be provided notice regarding the proposed amendment. The tribal contacts were provided notice on February 23, 2023. California Government Code Section 65352.3 requires notification 90 days prior to Council action to allow tribal contacts to respond to the request to consult. The Project will not be heard by the City Council until after the 90-day period, which expired on April 26, 2023. The City participated in consultations with three tribes: the Gabrieleno Band of Mission Indians – Kizh Nation, the Juaneno Band of Mission Indians, Acjachemen Nation-Belardes, and the Gabrielino Tongva Indians of California. Based on consultation with the participating Native American Tribes, conditions of approval have been included to address potential concerns regarding the protection of Tribal Cultural Resources. Charter Section 423 Analysis Finding: Charter Section 423 requires voter approval of any major General Plan amendment to the General Plan. A major General Plan amendment is one that significantly increases allowed density or intensity by 40,000 square feet of non-residential floor area, increases traffic by more than 100 peak hour vehicle trips (AM/PM), or increases residential dwelling units by more than 100 units. These thresholds apply to the total of increases resulting from the amendment itself, plus 80% of the increases resulting from other amendments affecting the same neighborhood (defined as a Statistical Area as shown in the General Plan Land Use Element) and adopted within the preceding 10 years. Council Policy A-18 (Guidelines for Implementing Charter Section 423) requires that proposed amendments to the General Plan be reviewed to determine if a vote of the Newport Beach electorate would be required. This policy includes a provision that all General Plan amendments be tracked as “Prior Amendments” for 10 years to determine if minor amendments in a single Statistical Area cumulatively exceed the thresholds indicated above. Facts in Support of Findings: DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 11 of 24 01-17-23 1. The Project is the second General Plan Amendment in Statistical Area L4 within the last 10 years that included additional dwelling units or non-residential floor area. The proposed amendment results in 49 additional dwelling units and no change in the square footage of non-residential floor area. Conversions of existing commercial development is allowed by the current General Plan (2,200 in-fill units maximum in the Airport Area based on conversion of existing commercial floor area). Reductions in commercial floor area are not tracked as part of the Charter Section 423 analysis. Density bonus units are not included in Charter Section 423 analysis nor the General Plan Anomaly calculations. 2. The 49 additional dwelling units result in a net increase of 18 a.m. peak hour trips and 19 p.m. peak hour trips based on the “Multifamily Housing (Mid Rise) Not Close to Rail” ITE 11th Edition trip rate for the proposed use, as provided in Council Policy A-18. No credit is given to the existing non-residential uses on-site because the existing office floor area was converted to residential dwelling units so that the proposed Project (less the density bonus and GPA units) is traffic neutral. Therefore, the Project individually does not exceed the Greenlight thresholds. 3. There has been one other relevant GPA within Statistical Area L4 within the last 10 years, which resulted in an increase of 64 dwelling units at 1400 Bristol Street (PA2022-0296). Considering 80% of the prior amendments (80% of 64 dwelling units) results in 51 dwelling units. The Project includes a GPA for 49 dwelling units. Therefore, cumulative development of 80% of prior GPAs from the last 10 years coupled with the Project results in an increase of 100 dwelling units. In terms of peak hour trips, the prior GPA resulted in a net increase of 24 a.m. peak hour trips and 25 p.m. peak hour trips. Considering 80% of the prior amendment, results in 19 and 20 a.m. and p.m. peak hour trips, respectively. Therefore, cumulative development of 80% of prior GPAs from the last 10 years coupled with the proposed project results in a change of 37 and 39 a.m. and p.m. peak hour trips, respectively. As none of the thresholds specified by Charter Section 423 are exceeded, no vote of the electorate is required if the City Council chooses to approve the requested GPA. Affordable Housing Implementation Plan The AHIP is consistent with the intent to implement affordable housing goals within the City pursuant to Government Code Sections 65915-65918 (State Density Bonus Law), and Chapter 20.32 (Density Bonus) of the NBMC for the following reasons: 1. Consistent with the requested 50% density bonus, 28 units (15% of the base units) would be set aside as affordable units to lower income households. Lower income households are defined as households with 80% or less of the area median income, adjusted for family size for minimum term of 55 years for very low-income households. The Project is consistent the provisions of the Residential Overlay of Newport Place Planned Community, which requires a minimum of 15% of base units to be set aside for lower income households. 2. The State Density Bonus Law and Chapter 20.32 (Density Bonus) provide for an increase in the number of units above the General Plan and zoning limits for projects that include a minimum of 15% of the base units affordable to very-low-income households earning 50% or less of area median income. The Project’s inclusion of 28 very-low-income units, which DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 12 of 24 01-17-23 is 15% of the base unit count of 188 units makes the Project eligible for 94 additional units. Inclusive of all base units, density bonus units, and affordable units the total project includes 282 units. 3. In addition to the 94 density bonus units, the Project is entitled under California Government Code Section 65915(d) and Section 20.32.070 of the NBMC, to receive up to three incentives or concessions that would result in identifiable, financially sufficient, and actual cost reductions. The Project includes a development concession for the proposed affordable unit mix that does not meet Section 20.32.070 (Design and Distribution of Affordable Units) of the NBMC. Section 20.32.070 (Design and Distribution of Affordable Units) of the NBMC requires affordable units in a density bonus project reflect the same range of unit types in the residential development as a whole. In this case, the Project would provide a higher percentage of affordable studio units and fewer affordable two-bedroom units and three-bedroom compared to market rate units. Granting this incentive will result in identifiable, financially sufficient, and actual project cost reductions by reducing the long-term rental subsidy costs associated with the two- and three-bedroom units and affording additional rental income for the project to ensure financial feasibility. The Project includes a second development concession to waive a portion of the required in-lieu park fee for a half-acre park. The reduction in park in-lieu fees would allow the Applicant to contribute to the overall fund for parks in the Airport Area, while providing identifiable cost reduction that make the provision of affordable units feasible. 4. In addition to the density bonus units and qualified concessions, the Project is entitled under California Government Code Section 65915(e), Section 20.32.080 of the NBMC, and recent caselaw to receive waivers or reductions of development standards where application of the development standard would physically preclude construction of a density bonus project. In this case, the following development standards are entitled to a waiver: a. Park dedication requirement. General Plan Land Use Policy LU 6.15.13 requires a public park equal to 8% of the gross land area of the development, or a minimum one-half acre, whichever is greater, be provided. In this case, the 2.49-acre Project site is too small to feasibly accommodate a half-acre park. b. Residential density. General Plan Land Use Policy LU 6.15.7 and PC-11 requires residential density between 30-50 dwelling units per acre. Inclusive of only the conversion units, the proposed density of 55.8 dwelling units per acre would exceed the maximum density of 50 dwelling units per acre. Including the proposed GPA units, conversion units, and density bonus units, the Project would not comply at a density of 113 dwelling units per acre and a waiver is necessary to implement the project. c. Building height. The Newport Place Planned Community (PC-11) limits building height to 55 feet from established grade. In this case, a higher building height is necessary to accommodate 282 residential units within seven stories. The Project is anticipated to have a height of 100 feet from established grade. DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 13 of 24 01-17-23 Traffic Study In accordance with Section 15.40.030 (Standards for Approval-Findings-Exemptions) of the NBMC, the following findings and facts in support of such findings are set forth: Finding: A. That a traffic study for the project has been prepared in compliance with this chapter and Appendix A. Fact in Support of Finding: A traffic study, entitled 1600 Dove Street Residences Revised Traffic Impact Analysis, prepared by Ganddini Group, Inc., dated August 14, 2023, was prepared for the Project in compliance with Municipal Code Chapter 15.40 (Traffic Phasing Ordinance) and Appendix A of the NBMC. Finding: B. That, based on the weight of the evidence in the administrative record, including the traffic study, one of the findings for approval in subsection 15.40.030(B) can be made: i. Construction of the project will be completed within 60 months of project approval in accordance with Section 15.40.030(B)(1) of the NBMC. ii. Additionally, the project will neither cause nor make worse an unsatisfactory level of traffic service at any impacted intersection in accordance with Section 15.40.030(B)(1)(a) of the NBMC. Facts in Support of Finding: 1. Based on the weight of the evidence in the administrative record, including the Traffic Study, and the conditions of approval, all of the findings for approval in Section 15.40.030(B)(1)(a) can be made in that: a. The Project is anticipated to be completed by the end of 2029, within the 60-month criteria. Therefore, the Traffic Study addresses the entire project development. b. The Traffic Study provides an evaluation of morning and evening peak hours at 14 existing intersections that are located in the City and the adjoining City of Irvine. c. The Project is projected to generate an additional (i.e. net increase of) 622 daily trips, including 12 peak a.m. trips and 22 peak p.m. trips. When these trips distributed to these studied intersections, the analysis concludes that there is no significant impact as the Project will neither cause nor make worse an unsatisfactory level of service at any impacted primary intersection, and all intersections are forecasted to continue to operate at acceptable Levels of Service. DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 14 of 24 01-17-23 Finding: C. That the project proponent has agreed to make or fund the improvements, or make the contributions, that are necessary to make the findings for approval and to comply with all conditions of approval. Fact in Support of Finding: No improvements or mitigation are necessary because implementation of the Project will neither cause nor make worse an unsatisfactory level of traffic service at any impacted primary intersection within the City of Newport Beach. The Applicant will be required to pay any applicable Traffic Fair Share fees for the net increase in vehicles trips, which will be used to fund future planned improvements to the City’s circulation system. The Applicant will also be subject to the payment of San Joaquin Hills Transportation Corridor Fees. Development Agreement In accordance with Section 15.45.020(A)(2)(a) (Development Agreement Required) of the NBMC, a development agreement is required as the Project requires an amendment to the General Plan that includes the development of more than 50 residential units. In this case the Project has a total of 188 base residential units. The proposed development agreement satisfies the requirements of Chapter 15.45 (Development Agreements) of the NBMC as follows: 1. A development agreement is requested by the Applicant, as the Project would include a base density of 139 units and 49 units from the requested General Plan Amendment. The development agreement includes all the mandatory elements including a term of 10 years and public benefits that are appropriate to support conveying the vested development rights consistent with the City’s General Plan, the NBMC, and Government Code Sections 65864 et seq. 2. Public benefits include the payment of a public safety fee to satisfy any obligation the Project could have to provide new emergency response services or Fire Department equipment to serve the Airport Area whether a Community Facilities District is formed or not. The Applicant has also agreed to pay a park fee to support the provisions of new parks in the Airport Area and a separate public benefit fee to be used by the City Council as it deems appropriate. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: The Planning Commission of the City of Newport Beach hereby recommends the following to the City Council: DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 15 of 24 01-17-23 1. Adopt Environmental Impact Report Addendum No. 9 to the 2006 General Plan Update EIR (SCH2006011119), as depicted in Exhibit “B” which is attached hereto and incorporated by reference; 2. Approve General Plan Amendment as depicted in Exhibit “C” which is attached hereto and incorporated by reference; 3. Approve Affordable Housing Implementation Plan as depicted in Exhibit “D” which is attached hereto and incorporated by reference; 4. Approve Development Agreement, as depicted in Exhibit "E” which is attached hereto and incorporated by reference; and 5. Approve Traffic Study, as depicted in Exhibit “F” which is attached hereto and incorporated by reference. PASSED, APPROVED, AND ADOPTED THIS 23rd DAY OF MAY, 2024. AYES: Barto, Ellmore, Langford, Rosene NOES: Salene RECUSED: Harris ABSENT: Lowrey BY:_________________________ Curtis Ellmore, Chair BY:_________________________ Tristan Harris, Secretary Attachment(s): Exhibit A – Legal Description Exhibit B – Addendum No. 9 to the 2006 General Plan Update EIR (SCH NO. 2006011119) Exhibit C – General Plan Amendment Exhibit D – AHIP Exhibit E - Development Agreement Exhibit F – Traffic Study Exhibit G – Conditions of Approval DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 16 of 24 01-17-23 Exhibit A Legal Description THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF NEWPORT BEACH, IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: LOT 3 OF TRACT NO. 7770, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 299, PAGES 15 AND 16 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM THE FULL RIGHTS AND ALL MINERALS, PETROLEUM, GAS AND OTHER HYDROCARBON SUBSTANCES EXISTING BELOW 500 FEET FROM THE SURFACE OF SAID REAL PROPERTY DESCRIBED ABOVE; PROVIDED, HOWEVER, THAT GRANTOR HEREBY EXPRESSLY WAIVES THE RIGHT TO ENTER UPON THE SURFACE OF SAID REAL PROPERTY OR THE PURPOSE OF EXPLORING FOR, OR PRODUCING THE MINERALS, PETROLEUM, GAS AND OTHER HYDROCARBON SUBSTANCES AS RESERVED BY DEED RECORDED IN BOOK 10328, PAGE 506 OF OFFICIAL RECORDS. DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 17 of 24 01-17-23 Exhibit B Addendum No. 9 to the 2006 General Plan Update EIR (SCH NO. 2006011119) Available separately due to bulk at: www.newportbeachca.gov/ceqa DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 18 of 24 01-17-23 Exhibit C General Plan Amendment DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 19 of 24 01-17-23 Exhibit D AHIP DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 20 of 24 01-17-23 Exhibit E Development Agreement DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 21 of 24 01-17-23 Exhibit F Traffic Study DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 22 of 24 01-17-23 Exhibit G CONDITIONS OF APPROVAL (Project-specific conditions are in italics) Planning Division 1. The development shall be in substantial conformance with the approved Residences at 1600 Dove Street Affordable Housing Implementation Plan and Density Bonus Application dated April 22, 2024 (except as modified by applicable conditions of approval). 2. Prior to the issuance of building permits, the applicant shall obtain all applicable discretionary permits (e.g. Site Development Review). The Applicant shall comply with all conditions of approval for said discretionary permits. 3. The Project is subject to compliance with all applicable submittals approved by the City of Newport Beach (“City”) and all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 4. The Approval of the Affordable Housing Implementation Plan granted under PA2022- 0297 shall expire unless exercised within twenty-four (24) months from the date of approval as specified in Section 20.54.060 of the Newport Beach Municipal Code (“NBMC”), unless an extension is otherwise granted by the City for a period of time provided for in the Development Agreement pursuant to California Government Code Section 66452.06(a). 5. The proposed residential development shall consist of 282 apartment units, inclusive of 188 base units (conversion and GPA units) and 94 density bonus units. 6. A minimum of 28 apartment units shall be made affordable to very-low-income households consistent with the approved Residences at 1600 Dove Street Affordable Housing Implementation Plan and Density Bonus Application dated April 22, 2024. 7. Prior to the issuance of a building permit, an affordable housing agreement shall be executed in a recordable form as required by the City Attorney’s Office. 8. The Applicant shall comply with all provisions of the Development Agreement including payment and timing of the public benefit fees. 9. A qualified monitor from the Gabrieleno Band of Mission Indians - Kizh Nation, shall be retained and compensated as a Native American Monitor for the project site prior to the DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 23 of 24 01-17-23 commencement of any ground-disturbing activity to the completion of ground disturbing activities to monitor grading and excavation activities. 10. The monitor shall be retained prior to the commencement of any “ground-disturbing activity” for the subject project. “Ground-disturbing activity” shall include any demolition that includes subterranean impacts, mass grading, and excavation. The monitor is expected to accommodate the construction schedule provided by the Applicant. The Applicant shall make a good faith effort to notify the monitor of any changes to the construction schedule at least 24 hours in advance. 11. A copy of the executed monitoring agreement shall be submitted to the City prior to the commencement of any ground-disturbing activity, or the issuance of any permit necessary to commence a ground-disturbing activity. 12. The monitor shall complete daily monitoring logs that will provide descriptions of the relevant ground-disturbing activities, the type of construction activities performed, locations of ground-disturbing activities, soil types, cultural-related materials, and any other facts, conditions, materials, or discoveries of significance to the Tribe. Monitor logs will identify and describe any discovered TCRs, including but not limited to, Native American cultural and historical artifacts, remains, places of significance, etc., (collectively, tribal cultural resources, or “TCR”), as well as any discovered Native American (ancestral) human remains and burial goods. Copies of monitor logs shall be provided to the project applicant/lead agency upon written request to the monitors. 13. On-site tribal monitoring shall conclude upon the earlier of the following: (1) written confirmation to the consulting tribe from a designated point of contact for the project applicant/lead agency that all ground-disturbing activities and phases that may involve ground-disturbing activities on the project site or in connection with the project are complete; or (2) a determination and written notification by the consulting tribe to the project applicant/lead agency that no future, planned construction activity and/or development/construction phase at the project site possesses the potential to impact TCRs of the consulting tribe. 14. Upon discovery of any TCRs, all construction activities in the immediate vicinity of the discovery shall cease (i.e., within the surrounding 25 feet) and shall not resume until the discovered TCR has been fully assessed by the monitor and/or archaeologist. The monitor will recover and retain all discovered TCRs in the form and/or manner the tribe deems appropriate, in the tribe’s sole discretion in coordination with the applicant, and for any purpose the tribe deems appropriate, including for educational, cultural and/or historic purposes. 15. Native American human remains are defined in PRC 5097.98 (d)(1) as an inhumation or cremation, and in any state of decomposition or skeletal completeness. Funerary objects, called associated grave goods in Public Resources Code Section 5097.98, are also to be treated according to this statute. DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C Planning Commission Resolution No. PC2024-008 Page 24 of 24 01-17-23 16. If Native American human remains and/or grave goods are discovered or recognized on the project site, then Public Resource Code 5097.9 as well as Health and Safety Code Section 7050.5 shall be followed. 17. Human remains and grave/burial goods shall be treated alike per California Public Resources Code section 5097.98(d)(1) and (2). 18. Preservation in place (i.e., avoidance) is the preferred manner of treatment for discovered human remains and/or burial goods. 19. Any discovery of human remains/burial goods shall be kept confidential to prevent further disturbance. 20. A copy of the Resolution, including conditions of approval Exhibit “A” shall be incorporated into the Building Division and field sets of plans before issuance of the building permits. 21. Should the property be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by either the current business owner, property owner or leasing agent. 22. To the fullest extent permitted by law, the applicant shall indemnify, defend and hold harmless the City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs, and expenses (including without limitation, attorney’s fees, disbursements, and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to City’s approval of the Residences at 1600 Dove Street including, but not limited to, General Plan Amendment, Affordable Housing Implementation Plan, Development Agreement, Addendum to the 2006 General Plan Update Program Environmental Impact Report, and Traffic Study, (PA2022-0297). This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorney’s fees, and other expenses incurred in connection with such claim, action, causes of action, suit, or proceeding whether incurred by the applicant, City, and/or the parties initiating or bringing the such proceeding. The applicant shall indemnify the City for all the City's costs, attorneys' fees, and damages that which City incurs in enforcing the indemnification provisions outlined in this condition. The applicant shall pay to the City upon demand any amount owed to the City under the indemnification requirements prescribed in this condition. DocuSign Envelope ID: 958E5150-F6B7-46B2-95DA-16F4273E139C