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HomeMy WebLinkAbout08/13/1975COMMISSIONERS CITY OF NEWPORT BEACH '� Special Planning Commission Meeting m Place: City Hall Annex Conference Room MINUTES m p ; Time: 7:00 p.m. Wee w„ m m w Date: August 13, 1975 Present X X X X Absent X X X EX- OFFICIO MEMBERS R. V. Hogan, Community Development Director STAFF MEMBERS Tim Cowell, Advance Planning Administrator Fred Talarico, Senior Planner Joanne Bader, Secretary MARINERS' Commissioner Heather announced that she would be IE�— chairing this special meeting in the absence of Chairman Beckley. Community Development.Director Hogan introduced Commissioner Agee and the City staff to the • audience. Mr. Hogan advised that staff has prepared a basis for a plan to be used as a foundation for discussion purposes. Mr. Hogan further advised that pursuant to discussions with both the property owners and the Planning Commission, it was felt by both groups that we should start at a more - informal level and give everyone a chance to say what they feel the area should be developed for. Mr. Hogan stated that the Specific Plan, as it is developed, will replace the existing zoning and will include, in addition to that, any proposals for physical development that may come out of the plan. He then advised that in replacing the existing zoning, the plan may include some of the same things that are included in the existing zoning and may also call for the elimination of some of the uses that are provided in the existing zoning. Mr. Hogan stated that when the City Council adopted the General Plan, the direction was that the Mariners' Mile area was to be used mainly for two purposes, i.e., the development of services on the waterfront, which provided for facilities or businesses which were related to the waterfront and for those services • on the adjacent area across Coast Highway which were related to commercial services that would tie in with the commercial area that is developed here. He added that it is proposed to eliminate residential uses and large office buildings _7_ COMMISSIONERS CITY OF NEWPORT BEACH MINUTES Abell T August 13, 1975 - IN DEY as there are other office complex areas in the City that are more appropriate than it was felt this area is. Mr. Hogan then stated that the intent is to devote the area mainly to commercial uses with water - oriented uses adjacent to the bay. Additionally, to upgrade the area as far as its parking capabilities and aesthetics. Mr. Hogan stated that it is possible to amend the General Plan to include more uses than are presently provided or to exclude some of the uses presently provided. He discussed the possibility of developing an identity in the area in the sense of architectural style or street furniture and advised that this type of item could be incorporated in the Specific Area Plan. He advised that the purpose of this meeting is to open discussion to find out what the property owners and tenants would like to see developed within the area. The Planning Commission will then have an indication of that which is desired by the property owners and business people of the area so the Specific • Area Plan can be developed around those desires. Mr. Hogan then reviewed the agenda topics and advised that he hoped the discussion would stay within this framework. Mr. Hogan advised that the City Council has directed that additional study be done on the Coast Highway problem; however, the potential highway widening will not be a part of this discussion. Mr. Hogan informed the audience that when staff gets into further study with Coast Highway, notice of the meeting will be sent to them. ITEM Fred Talarico, Senior Planner and project leader N0. 1 for the Mariners' Mile Specific Area Plan, addressed the audience and Planning Commission LAND USE and advised that the Land Use Element establishes the parameters for the Specific Area Plan and establishes City policy on land use and the visual environment. Mr. Talarico discussed the present zoning for the area and advised of the three objectives of the Land Use Element, i.e., 1) to resolve problems of traffic conflict, parking and access, 2) to enhance the visual environment and 3) to preserve the existing marine uses. He then advised that the potential • uses listed on the handout are only for a basis of discussion. Mr. Talarico then advised that the area northerly of Pacific Coast Highway is designated "Retail and Service Commercial" and reviewed the description of this category -2- COMMISSIONERS � m T T • one i A11 n CITY OF NEWPORT BEACH August 13, 1975 MINUTES as described in the Land Use Element. He then reviewed the Land Use Element description of "Recreational and Marine Commercial" that is designated for the area southerly of Coast Highway. Ken Watson of Occidental Land addressed the Planning Commission and advised that he repre- sented the lease holder of the Jakosky property. He advised that when they acquired this property, the height limitation was around 100 feet and that most commercial uses were permitted. He informed the Planning Commission that by the time they decided what they wanted to do with the property,the height limitation had dropped to around 50 feet. They reconsidered their uses and the limitation had dropped to 35 feet and is now 26 feet. Mr. Watson stated that economically they cannot develop the property within the 26 -foot height limit and open space requirement. He advised that they would also like to be allowed more uses than is proposed here. • He then discussed the possibility of allowing height incentives for setback. He voiced disappointment that because so many constraints are placed on the property, they are unable to build. Further, that under the "Preliminary Draft" they could not use open space for parking. Mr. Watson did not want any further limits to the use of this property or to take any of the present uses away. He felt the height limit should come under a site plan review of the Planning Commission so that they can con- trol it, but not stipulate a minimum. Dan Daniels of Ardell Investment Company addressed the Planning Commission and advised that his comments would represent approximately one -third of the owners of the property on the waterfront between the county dock and the Sea Scout Base. He advised that they do not want exclusively marine - oriented uses. He used as an example the Occidental property which has been owned by them for nine years and has not yet been developed. He advised that since they are talking about a Specific Area Plan, a plan tends to indicate that we will be talking about development. He stated that under the current • restrictions on property, there won't be any development so he could see no reason for a plan. Mr. Daniels felt the followin uses should be permitted: 1) residential, 23 general offices (because they don't feel any property owner should -3- COMMISSIONERS CITY OF NEWPORT BEACH . DG1 m D T D m MINUTES 'AlI m August 13. 1975 - INDEX be told he cannot have an office on property he owns), 3) yacht clubs and other social clubs, 4) all retail and commercial uses, 5) restaurants, 6) any combination of those uses within one parcel and 7) to allow any use currently within Mariners' Mile. John Jakosky addressed the Planning Commission and gave an economic analysis of the property values on Mariners' Mile. He stated that he acquired these values directly from the Tax Assessor. Mr. Jakosky advised that there are 25 parcels starting at the county dock and stopping at the Sea Scout Base and stated that according to the Tax Assessor, the full cash value of that land is $8,329,760; on a square footage basis, the full cash value from the county dock to Riverside Avenue is $9.06 per square foot and from the parcel that American Marine recently acquired to the Sea Scout Base, the full cash value is $11.07 per square foot. He stated that averaging those two numbers, one comes out with what the Tax Assessor says is the full cash value on a square footage basis. That value is $10:07 per square foot. He further stated that this puts the land in a little dif- ferent category because it indicates the land to be valued at $438,649 per acre. Mr. Jakosky advised that one of the proposals the City indicated in the "Preliminary Draft" was a 20% sideyard setback, which means that $1,665,952 of land must be added to this base value of a little over eight million dollars for revenue - producing purposes, so we're really looking at land on the south side of the highway worth $9,995,712. He stated that from an investment standpoint, he thinks that the expected return on land is eight percent in the industry, and that ten percent is expected on improvements, which is a six percent return on your money and four percent amortization. He stated that taking our current tax rate at 9.1649 per $100 assessed valuation, we find that in order to pay the taxes and get the return on the land and the improvement, you're looking at required rents of $.81 per square foot. He then voiced doubt as to whether marine - oriented activities can survive at this rent. He then advised that from the Arches to the Bayshore residential area, there is 5,307 lineal feet of bay frontage, and that 2,775 lineal feet of this area is owned -4- COMMISSIONERS CITY OF NEWPORT BEACH 5,,r: I '� MINUTES ;1111 August 13, 1975 by the City and County. Mr. Jakosky felt that if the City wishes to maintain as a policy the idea of encouraging marine uses, the City should in some way subsidize those uses or get the Tax Assessor to cut these rates. Mr. Rosan of J. R. Investment Company addressed the Planning Commission and advised that they have been operating a boatyard in the area since 1950 and the only way they can operate this boatyard is by supporting it with other uses. He stated that if they had to strictly run a boatyard on that property, there is no way they could do it. Pete Syracusa addressed the Planning Commission and suggested the use of City and County land for boatyards. Mrs. Wells with Brown property on the northerly side of the highway, addressed the Planning Commission and stated that office buildings would . only be heavy traffic generators during the week and not on the weekends when the traffic is here automatically. Dick Shaffer, of Henry's Restaurant, addressed the Planning Commission and questioned whether restaurants are being eliminated from the northerly side of the highway because they are not listed in the report north of the highway but are listed south of the highway. Community Development Director Hogan advised that restaurants are listed for both sides of the highway. Carl Lorcle, owner of a house on the bluffs, addressed the Planning Commission and stated that he is present at this meeting to keep an eye on what's happening. Pete Syracusa of Rusty Pelican, Ancient Mariner and Rebecca's addressed the Planning Commission. He stated that there is not much you can do with land when you can't go at least 30, 40 or 50 feet up because you cannot get a return on your • money. He further stated that if you can't get a return on your money, the land won't be developed. He then spoke in favor of more water - oriented hotel uses because he felt this -5- COMMISSIONERS CITY OF NEWPORT BEACH n m T 1K August 13, 1975 MINUTES lunEv type of use would benefit all the property owners and businesses in Mariners' Mile and would also help the City because it would bring more people to the City to enjoy what we have. Mrs. Bieger, 2940 West Coast Highway, addressed the Planning Commission and spoke in favor of permitting "Residential" uses. She did not feel she could get a return on her money with the 26' height limit that is on her property. Ms. Minney, part -owner of Minney's Ship Chandlery, addressed the Planning Commission and questioned where the boat services will go if they are forced to leave this area. She stated that boat people need to be located near the water because people coming from the water don't want to go to Costa Mesa for water - oriented shops. Ed Gribble addressed the Planning Commission and spoke in favor of more parking in the area. Ken Nisbit, owner of the property across from . the post office on Riverside, addressed the Planning Commission and advised he has no problems. Jeff Jones, of Ski Mart, addressed the Planning Commission and advised that he is opposed to a 100' height limit but feels we do need a realistic height limit that would allow property owners a return on their investment. Owen Minney, representing several pieces of property, some as an owner and some as a tenant, addressed the Planning Commission and stated that he wouldn't like to see any manufacturing of a general nature, but felt light manufacturing (e.g., boat repair) is very important to the area. A representative of Mrs. Oser addressed the Planning Commission and advised that Mrs. Oser does not feel that the 26' height limit would justify her investment. He stated that part of Mrs. Oser's property is zoned for "Retail and Service Commercial" and the other part for "Residential ", which makes an uneasy situation . for her. I. Richardson, of Richardson Trust, addressed the Planning Commission and advised that she is -6- COMMISSIONERS CITY OF NEWPORT BEACH 0 q p p N August 13, 1975 ceu m MINUTES now receiving about one and a half percent on her investment above taxes. She stated that she is looking for either a better rental rate or just to sell it. She further stated that her taxes are almost up to the rental rate. Mark Schultz, trailer park resident, addressed the Planning Commission and advised that he has lived at the trailer park for a couple of years and is at this meeting to find out what will happen in the area. Dan Arthoffer, owner of residential property on Coast Drive on the bluffs above the north side of the highway, addressed the Planning Commission and stated that he would like to see something done below, other than what is there now, (i.e., stores and vacant lots). He stated that he feels people should be able to go up high enough to make it economically feasible for them to develop their property and not block others' views of the bay. r. Vin Jorgensen addressed the Planning Commission and stated that it is economically impossible for marine uses to survive in the Mariners' Mile area when the property is being priced off the market as far as marine uses are concerned. He then stated that you cannot get the return you need from marine uses to support the Tax Assessor's valuation of your property. E. G. Miller, representing Rosan's, addressed the Planning Commission. He stated that 21 years ago when Rosan's started, the taxes were 30% of what they are now. Mr. Miller did not feel that boat - oriented businesses can make it., especially with the 26' height limit; the only hope is for a single -story restaurant. He then questioned how big you have to go to class something as "corporate office ". He stated that there are 60 to 80 office employees in Rosan's and that Rosan's has approximately 10,000 sq. ft. of office space and 45,000 sq. ft. of manufacturing space. He felt that one of the main constraints Rosan's has from making the ultimate use of the property is the height limit. • Jack Walsh, of Interior Design Shop at 2640 Avon Street, addressed the Planning Commission and advised that he is present at this meeting to see what is happening with Mariners' Mile and for business reasons to try to find out when. -7- COMMISSIONERS CITY OF NEWPORT BEACH n m o &roll n! A w August 13, 1975 MINUTES 1MULA Larry Miller, a tenant Marine Consultant at 2400 West Coast Highway, addressed the Planning Commission. He stated that he has been working with the Marine Division of the Chamber of Commerce for many years and that many times they have dealt with the problem of the future of the marine service industry. He then advised that he is not talking for the Marine Division tonight but as an individual. He then suggested that if the City has not yet done so, that they take a positive or even an aggressive approach to investigating what legal and /or planning tools they might have to approach the tax situation, possibly to set up a special tax district, to try to help get this tax burden off of the waterfront owners and get it more toward an existing use base rather than its highest and best use base. He stated that he thinks on a long -range approach that the City might have the ability to sell some waterfront property that they have in other areas of the harbor that are not conducive to marine use and purchase areas in Mariners' Mile or elsewhere • that would be much more appropriate for establishment of the marine service industry. Dick Dwyer, owner of property at 2001 West Coast Highway, addressed the Planning Commission and advised that he is just listening tonight. Guy Thall, Real Estate Broker in Newport Beach, addressed the Planning Commission and spoke in favor of zoning the area C -4 to accommodate most of the ideas he's heard tonight with the exception of agriculture and residential development. George Friedall, representing American Marine, addressed the Planning Commission and advised that he is present just to listen. Ben Jackson, representing the Transportation Committee of the Newport Harbor Chamber of Commerce, addressed the Planning Commission and advised that he is present to see what is happening. Commissioner Agee stated that it seems that • most people are saying that the height limit should be reconsidered and types of uses expanded to include residential and business offices. He further stated that according to Mr. Jakosky's economic analysis, there is -8- COMMISSIONERS CITY OF NEWPORT BEACH • D m S S b m£ c - o�rs�� August 13, 1975 MINUTES ,u nev m vcn either going to have to be a change in the way this property is assessed or'if it's the wish of the property owners to have it upgraded, there will have to be a way that people can economically develop it. Community Development Director Hogan discussed the possibility of, on large pieces of property, working out a combination kind of incentive which would allow other uses that are not marine oriented, provided that a percentage of the land is devoted to a marine - oriented use so that we can make development economically viable for the property owner, and at the same time allow him to devote a portion of that property at a lower rent to marine - oriented uses. Commissioner Parker stated that he thinks that if we're going to talk about pursuing the City's policy which has been adopted of encouraging marine usage around the bay, we're going to have to subsidize marine uses or in some way make • the County and City taxes lower for marine uses only. * * * * * * * ITEM NO. 2 Senior Planner Talarico advised that it has been the policy of the City of Newport Beach and the DEVELOP - MENT Coastal Commission to require public access, visual and physical, to the bay. This policy is STANDARDS stated in the Recreational and Marine Commercial description of the Land Use Element. He then stated that in terms of development standards, we should discuss tonight height limits, setbacks from Coast Highway, public access easements and landscape requirements. He advised that Page Two of the agenda information indicates the existing development standards for each zoning designation in Mariners' Mile. Mr. Talarico then indicated that the area northerly of Coast Highway is presently zoned C -2 -H and C -1 -H and the area southerly of Coast Highway C -O -Z. The exception to this is the City /County marina property which is zoned C -2. He stated that the chart on Page Two also indicates the relationship between the development standards of the existing zoning and the adopted objectives and policies of the General Plan. John Jakosky addressed the Planning Commission and stated that it seems to him that the City -9- COMMISSIONERS CITY OF NEWPORT BEACH re„ T m August 13, 1975 MINUTES INDEX should encourage incentive types of zoning. He suggested the possibility of constructing buildings with a minimal disruption of views. Dan Daniels addressed the Planning Commission and commented on the 20% setback requirement as proposed by the preliminary draft. He stated that 20% of eight million dollars (which is the value of the land according to the Tax Assessor's figures) is around two million dollars. He added that the property owners most likely do not want to donate two million dollars worth of property, especially when on the preliminary draft the property owner could not use the setback area for parking and would be required to landscape half of it. He stated that in considering setbacks, incentives, height for example, go hand -in -hand. In regards to public access easements along the bayfront in Mariners' Mile, Mr. Daniels stated that at the Dana Point marina, that the County owns, there is public access; this • necessitates a locked gate at the foot of every dock, so that is to that public access only locked gate. He stated that along Mariners' Mile now, there are no locked gates. He stated that Ardell has 700 feet of dock space and that no one has ever been thrown off that dock who was behaving. He stated that if there are public access easements along Mariners' Mile, there aregoing to be chain -link fences and gates the full length of the dock because the property owners who control these docks will no longer have the right to allow those that behave to enter the docks nor any controls to stop those people that don't behave from entering the docks. He stated that he thinks that theft and vandalism have to be taken account of when public access is being considered. Byron Chamberlain, of Mariners' Insurance, addressed the Planning Commission and spoke in opposition to public access to the water. He felt it would result in locked gates such as at Dana Point and Marina del Rey. E. G. Miller addressed the Planning Commission • and commented on the lack of sandy beach in Mariners' Mile and, therefore, no need for public access. Mr. Rosan addressed the Planning Commission and -10- COMMISSIONERS CITY OF NEWPORT BEACH August 13, 1975 MINUTES - INUCA advised that they are trying to keep unauthorized people away from his business because of the danger involved in heavy equipment used in his factory. Mr. Rosan did not think there should be sidewalks along the bay. Planning Commission recessed at 9:05 p.m. and reconvened at 9:20 p.m. ITEM Senior Planner Talarico advised that at the N0. 3 Mariners' Mile Workshop Meeting held in March, alternatives regarding parking and circulation PUBLIC were reviewed. An "informal" property owners PROJECTS committee was formed to review these alternatives; their recommendation in terms of parking was to develop two parking lots on Cal -Trans property. They further suggested that staff investigate into the lease or purchase of the • H. R. Brown property. He advised that the total potential parking as recommended by the property owners committee, including the Brown parcel, would be approximately 315 spaces. Community Development Director Hogan advised that the State has indicated that they are currently interested in disposing of the State properties that were in the right -of -way for the defunct freeway and they've asked the City to indicate which of these properties the City recommends be withheld from this sale. He stated that the City Council, at their last meeting, indicated that for the time being it would like to see three properties withheld pending this planning effort. Mr. Hogan advised that the City has a parking meter fund; however, this fund is not sufficient to acquire any, much less all, of the properties. He then discussed the possibility of acquiring the property through the City's general fund. He advised that the potential acquisition could possibly come out of the general fund or out of the general tax payers' pockets for the original acquisition; however, somehow it is going to be • paid back by the people who own and develop the property within the area (e.g., parking meters). -11- COMMISSIONERS CITY OF NEWPORT BEACH m m ; o PAlI P p August 13, 1975 MINUTES INUCA Senior Planner Talarico advised that in the Mariners' Mile area, there is a parking deficiency of approximately 130 spaces and showed the locations of deficient and surplus areas on the map. Dan Daniels addressed the Planning Commission in terms of aesthetics and suggested that, when street trees are planted, thought be given to their potential to become a traffic problem due to blocking views. Mr. Daniels felt that parking should be funded by the people with deficiencies and that people who want to develop the bayfront (e.g., restaurants) will be quite willing to pay for parking spaces. Mr. Rosan addressed the Planning Commission and suggested the possibility of a multiple - story parking structure to be allowed in the zoning. Vin Jorgensen addressed the Planning Commission and stated that he felt parking should either • be metered or parking areas leased out to those who want it. He further stated that the people with ample parking should be left alone. He did not feel the City should blanket assess the entire area. Owen Minney addressed the Planning Commission and stated that he is against the Avon Street extension because it takes away his display area and a great part of his work yard. He advised that he would be willing to pay for his own parking or pay assessments. Mr. Minney does not feel a blanket assessment policy should be adopted. John Jakosky addressed the Planning Commission and stated that about 12 years ago he paved 24,000 sq. ft. on the northerly side of the highway, back about 200 feet from the highway. He stated that he has run ads in the paper and that no one is interested in leasing parking spaces. Mr. Jakosky stated that in this area approximately 80 to 90 cars could be accommodated. He stated that if this deficiency really exists, he is surprized because he hasn't been contacted to date. He advised that in 20 years there has been only one organization that has leased space for parking and that was on a short -term basis by the Rosan Corporation. -12- COMMISSIONERS CITY OF NEWPORT BEACH r• m � August 13, 1975 MINUTES II�VCA Owen Minney addressed the Planning Commission and advised that he does not feel there is a parking problem. Larry Miller addressed the Planning Commission and stated that we must acquire public parking lots if the highway is to be widened. Owen Minney addressed the Planning Commission and questioned the status of his proposal to move the post office to alleviate traffic and provide parking. John Jakosky addressed the Planning Commission and stated that currently there is no parking shortage. He stated that the future parking requirement of the area will be determined by land use and by the type of development that takes place. He then spoke in opposition to the City purchasing additional lots for parking. He felt that this would be a poor investment from the City's standpoint and to ask the surrounding property owners to underwrite this cost at • this point in time would be a poor investment from the standpoint of the property owners. He then suggested the City hold these parcels in abeyance, or at least have the first right of refusal on the purchase of them from the State of California, and then see what can be done with the area as far as development is concerned. He stated that.at that time we will have a better chance of looking at what the future parking requirements are going to be. Vin Jorgensen addressed the Planning Commission and stated that there are people on the northerly side of the highway with parking shortages and that some are built out to the front of the road. He then questioned what will happen when someone purchases that property. He stated that they cannot do anything with it because there isn't space to park and no one is going to tear it down and be subjected to a requirement that they provide parking. Vin Jorgensen displayed several drawings that showed the approved development proposal for the burned -out block. • Susan Cuse, owner of property next to Mrs. Wells and contiguous to the Cal -Trans property, addressed the Planning Commission. She stated -13- COMMISSIONERS CITY OF NEWPORT BEACH r m= = 9 m f ROcAO. m p August 13, 1975 MINUTES E IND X that if she loses land in the front of her property and the land behind her were to be acquired for parking, her business would be jeopardized. Mrs. Cuse stated further her feeling that there is not a parking problem in the area and indicated that it might be solved with just the purchase or lease of the Brown property. She then stated that she would like to have an opportunity to perhaps expand the existing development that she has and lease some of the State property for parking. Community Development Director explained to Mrs. Cuse, since she arrived late, that we have been requested by the State to determine which properties the City has an interest in. He advised that the use of that parking lot, if the City did acquire it, could be done in several ways including such things as leasing spaces to the property owners. Community Development Director Hogan advised . that it is the intent of the staff, assuming the Commission gives the indication that this is the proper direction, to start over again with the development of a plan for the area, taking into consideration the items we heard tonight and the ideas that have been suggested and come back to the Planning Commission with a new draft Specific Area Plan. He then informed the audience that staff is willing, at any time, to meet with any group or individual to discuss the Specific Area Plan. Motion X There being no further business, motion was made Ayes X X X X to adjourn the meeting. Time: 10: p.m. Absent X X X AVIES A K R, Secretary Planning Commission City of Newport Beach -14-