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HomeMy WebLinkAboutHyatt Regency NB Expansion (PA2005-212)CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT November 6, 2008 Meeting Agenda Item 2 SUBJECT: Hyatt Regency Newport Beach Expansion (PA 2005 -212) 1107 Jamboree Road • Certification of Final Environmental Impact Report • Parcel Map No. 2007 -003 • Use Permit No. 2005 -046 • Modification Permit No. 2007 -095 • Development Agreement No. 2005 -002 APPLICANT: Ken Cruse, Sunstone Hotels PLANNER: Jaime Murillo, Associate Planner (949) 644 -3209, imurilloCd )citv.newport- beach.ca.us This item was continued from the October 23, 2008, Planning Commission meeting per the request of the applicant. At the hearing, several residents in attendance commented and expressed concerns on the project (See Community Concems section of report). The Planning Commission raised concerns and requested staff and the applicant to return at tonight's meeting with additional information (see Planning Commission's Comments section of report). This staff report focuses primarily on the project's discretionary applications, addresses the comments raised at the previous meeting, and supplements the October 23, 2008, staff report which focused on the Draft Environmental Impact Report (DEIR). RECOMMENDATION Staff recommends that the Planning Commission take the following actions: Receive staff report, receive applicant's presentation, re -open public hearing, and receive public comments. Adopt a resolution (Exhibit 1) recommending that the City Council certify the Final Environmental Impact Report (SCH. No. 2006121052) and adopt a Mitigation Monitoring and Reporting Program. 3. Adopt a resolution (Exhibit 2) recommending that the City Council make findings relative to significant environmental effects and adopt a Statement of Overriding Considerations, and approve Parcel Map No. 2007 -003, Use Permit No. 2005- 046, Modification Permit No. 2007 -095, and Development Agreement No. 2005- 002, subject to the attached findings and conditions. 0 0 2 Hyatt Regency Newport Beach Expansion November 6, 2008 Page 2 VICINITY MAP t ®" Project Site ter. ;t e ymff Y r GENERAL PLAN ZONING OSd k i PR \ PC -7 a w I y LOFF 1 21 LOCATION GENERAL PLAN ZONING CURRENT USE ON -SITE Visitor Serving Retail & Service Commercial Hyatt Regency Hotel Commercial CV RSC NORTH Open Space (OS) Newporter North Planned Newporter North Community PC-41 Environmental Study Area SOUTH Multiple -Unit Residential Bayview Landing Planned Bayview Landing Senior RM Community PC -39 Apartments EAST Multiple -Unit Residential Sea Island Planned Community Attached residences RM PC -21 WEST Parks and Recreation Newport Dunes Planned Newport Dunes Resort PR Communit PC -37 A Hyatt Regency Newport Beach Expansion November 6, 2008 Page 3 PROJECT SUMMARY Project Setting The project site consists of 25.7 acres situated on two parcels located at the northwest corner of Jamboree Road and Back Bay Drive. A 403 -room resort-style hotel is currently developed on the site which includes associated restaurants, banquet facilities, an outdoor amphitheater, a nine -hole golf course, three swimming pools, and maintenance and housekeeping sheds. The site is heavily vegetated with mature palm trees and other ornamental trees and shrubs. The Palisades Tennis Club abuts the project site along the northeastern boundary. The remainder of the site's northern boundary abuts open space within the Newporter North Environmental Study Area (ESA), which contains native coastal sage scrub, marsh, and riparian areas. The Harbor Cove residential community is located further north beyond the Environmental Study Area. East of the project site, across Jamboree Road, is the Sea Island residential community. South of the site, across Back Bay Drive, is the Bayview Landing Senior Apartments. To the west of the site, across Back Bay Drive, is the Newport Dunes Resort Community. Project Description The applicant proposes to expand the existing Hyatt Regency Newport Beach hotel with the addition of 88 timeshare units, a new 800 -seat ballroom facility, a new 10,072 - square -foot spa and fitness center, a new housekeeping and engineering building, and a two -level parking garage (Exhibit 3 — Plans). Details of the project components are as follows: Demolition Project implementation requires the demolition of four existing villas located on the northwestern portion of the site. Each villa consists of three rooms; one room on the lower floor and two rooms on the second floor. Each room can be rented out individually, for a total of 12 hotel rooms (keys), or in combinations of one, two, or three rooms. The demolition of the 4 villas results in a loss of a total of 12 hotel rooms, since each room can be rented independently. Also proposed for demolition is the 4,035 square -foot maintenance and engineering building located near the villas and the existing 3,190 - square -foot Terrace Ballroom on the western portion of the site. In addition to the buildings proposed for demolition, project implementation will result in the elimination of the existing nine -hole golf course to accommodate the timeshare units and associated improvements. The proposed project will also require the removal and reconfiguration of the recreational courtyard located in the center of the main hotel complex. I Hyatt Regency Newport Beach Expansion November 6, 2008 Page 4 Timeshares Seven new buildings containing a total of 88 timeshare units are proposed to be constructed on the northern portion of the site over the existing nine -hole golf course. The buildings would consist of either two or three stories with a maximum height of 35 feet to the roof midpoint and 40 feet to the roof ridge. Four of the timeshare buildings also include a subterranean parking garage level. The proposed timeshares are fractional ownership units where the buyers of the timeshare interests would be given a deed subject to a ground lease (leasehold estate). The deed given to the buyers would expire December 31, 2062, consistent with the expiration of the ground lease. A minimum of one week may be purchased, with a maximum consecutive stay of four weeks per year. The maximum number of days a buyer may purchase is 63 days (9 weeks). The applicant's proposed timeshare operations plan is attached as Exhibit 4. Clubhouse Timeshare Building No. 6 (TS -6) includes a one -story, 4,194- square -foot clubhouse. The clubhouse includes offices, restrooms, pool equipment storage space and 1,702 square feet of meeting /assembly space. The clubhouse will be used for timeshare guest check -in, sales, and other timeshare - related activities. Spa and Fitness Center A new 10,072 square -foot building containing a spa and fitness center is proposed to be constructed in the center of main hotel complex. The spa would consist of several massage and treatment rooms, a beauty salon, gift shop, and separate locker rooms, steam rooms, hot tubs and restrooms for men and women. While the spa and fitness center would be oriented for use by both hotel and timeshare guests, it would also be open for use by the general public. New Ballroom A new 800 -seat ballroom facility is proposed in southwest portion of the site. The ballroom would consist of 11,032 net square feet of banquet area, 5,067 square feet of pre- function area, and 8,288 square feet of service area, for a total of 24,387 gross square feet. The banquet area is designed so that smaller banquet/meeting rooms can be created through the use of removable wall partitions. The height of the ballroom structure would be 31 feet 6 inches to the roof midpoint and 36 feet 6 inches to the roof ridge, with the exception of a proposed architectural cupola and tower feature that would measure 57 feet 6 inches in height (62 feet 6 inches to the 5- foot -high finial on top). 0 Hyatt Regency Newport Beach Expansion November 6, 2008 Page 5 Parking Structure A two -level parking structure, with a maximum height of 18 feet to the top of the parapet, is proposed on the southern portion of the site. The roof -level parking deck would include two, 22- foot -6- inch -high light standards, which would result in an overall height of 34 feet, 6 inches from finished grade. The 25,229 - square -foot parking structure would accommodate 170 parking spaces. Circulation Improvements The existing driveway on Jamboree Road would be enhanced with decorative paving. It would remain the hotel's primary entry drive, providing access to the hotel, new timeshares, new spa, and tennis club. The two existing gated entry drives that provide access from Back Bay Drive would be removed and three new access drives from Back Bay Drive would be constructed: 1) a primary access drive to the new ballroom and parking structure that would be aligned with the entry drive to the Bayview Landing Apartments south of the project site; 2) a secondary entry drive to the surface parking adjacent to the ballroom; and 3) a fire access road to the new timeshare units. Storm Drainage Improvements Currently, drainage for the project site occurs via surface flow. Off -site flows from an existing storm drain on the north side of Jamboree Road are discharged to a site near the parking lot adjacent to Back Bay Drive and surface flow to a collection drain in Back Bay Drive. Project implementation requires several drainage improvements, including the construction of a new storm drain on the north side of Jamboree Road (within the public right -of -way), which would then connect to a new on -site storm drain that would traverse the southwest portion of the site beneath the parking lot adjacent to Back Bay Drive and would discharge to an existing storm drain at the northwestern corner of the site at Back Bay Drive. A system of grated inlets and curb opening catch basins at sump locations would capture and direct flows to the new drains. Flows from the northern portion of the site would be collected in a separate storm drain system that would outlet to an existing concrete ditch at the northeast corner of the site. A new storm drain would also be provided along the northern portion of Back Bay Drive, adjacent to Timeshare Building TS -7, and would discharge into the existing public storm drainage. On -site water quality measures are proposed to include several best management practices (BMPs), including various media filters, bio- swales, and filtration trenches. Background Hotel Entitlements The hotel was originally permitted in 1962 while under the jurisdiction of the County of Orange. The area was later annexed to the City of Newport Beach in 1963. Since then, 1 Hyatt Regency Newport Beach Expansion November 6, 2008 Page 6 several additions and activities have been permitted for the hotel over the years. The table provides a breakdown of the various approvals throughout the years: Use Permit No. 2001 -031- Summer Jazz Series Use Permit No. 2001 -031 authorized the Summer Jazz Series as a permanent entitlement under hotel's use permit, thereby eliminating the need to seek annual Special Event Permits and approvals from the City. The use permit authorizes concerts, ancillary to the normal operations of the existing hotel, to take place annually on Friday nights from June 1 through October 31, between the hours of 7:00 p.m. and 10:00 p.m. Performances are required to take place in the existing amphitheatre on the grounds of the hotel. No changes to the operation of the Summer Jazz Series is proposed at this time and all applicable conditions of approval of Use Permit No. 2001 -031 (Exhibit 5) will remain in effect as a separate entitlement from the subject project. Circulation Improvement and Open Space Agreement (CIOSA) In 1992 (amended 1996), the City entered into the CIOSA with the Irvine Company. The agreement granted the Irvine Company vested development rights for 11 projects in 2.1 a t :T.4 County of Orange Use 4110/62 Permitted a 103 -room hotel with restaurants and banquet Variance No. 4897 facilities. Use Permit No. 886 12/20/62 Allowed the addition of 103 rooms to the existing hotel (French Court Building). Use Permit No. 958 616/63 Allowed the construction of a convention building (Plaza Ballroom). Use Permit No. 1099 117/65 Private heliport for 1- ear Use Permit No. 1355 6110168 Allowed construction of 118 additional hotel rooms (Terrace Building and Carousel Room). Use Permit 4117/69 Allowed a kitchen and dining room expansion (Marine Dining No. 1355 Amendment Room). Use Permit No. 1597 813/72 Allowed construction of additional convention facilities; however this use permit was never exercised. Use Permit No. 1697 1014173 Permitted the establishment of the John Wayne Tennis Club and included an off -site parking agreement which allowed the tennis club to use a portion of the hotel parking spaces during major tournaments. Use Permit No. 3161 818185 Permitted the construction of additions and improvements to the hotel which included: 104 additional rooms; an outdoor dining area addition; a 4,100 square -foot addition to an existing ballroom; a cupola addition, and general remodeling. The approval also permitted the use of additional compact and tandem parking spaces in conjunction with valet service. Use Permit 2/22188 Allowed construction of new 8,000 square -foot banquet/meeting No. 3161 Amendment room, the construction of a laundry facility and an 18 square -foot expansion of an existing restaurant. Use Permit 4/18102 Allowed a Summer Jazz Series as an annually recurring event, No. 2001 031 ancillary to the normal operations of the existing hotel facility. Use Permit No. 2001 -031- Summer Jazz Series Use Permit No. 2001 -031 authorized the Summer Jazz Series as a permanent entitlement under hotel's use permit, thereby eliminating the need to seek annual Special Event Permits and approvals from the City. The use permit authorizes concerts, ancillary to the normal operations of the existing hotel, to take place annually on Friday nights from June 1 through October 31, between the hours of 7:00 p.m. and 10:00 p.m. Performances are required to take place in the existing amphitheatre on the grounds of the hotel. No changes to the operation of the Summer Jazz Series is proposed at this time and all applicable conditions of approval of Use Permit No. 2001 -031 (Exhibit 5) will remain in effect as a separate entitlement from the subject project. Circulation Improvement and Open Space Agreement (CIOSA) In 1992 (amended 1996), the City entered into the CIOSA with the Irvine Company. The agreement granted the Irvine Company vested development rights for 11 projects in 2.1 Hyatt Regency Newport Beach Expansion November 6, 2008 Page 7 exchange for prepaid 'fair share" road improvement fees, construction of certain road improvements, granting to the City an interest -free loan, and the conveyance of approximately 140 acres of property to the City for open space and park purposes. The Hyatt Regency site was one of the 11 sites that received vested entitlements under CIOSA, receiving the right to expand to the total maximum development limitation of 479 rooms permitted under the General Plan. General Plan The Land Use Element designates the project site as Visitor Serving Commercial (CV), which is intended to provide for accommodation, goods, and services intended to primarily serve visitors to the City. The project site is allocated a maximum of 479 hotel rooms (Anomaly No. 52). The demolition of the 12 villa hotel rooms and construction of the 88 new timeshare rooms results in a total of 479 rooms, which is consistent with maximum development limitation for the site. The Land Use Element does not establish a maximum square footage development limit for the proposed hotel's ancillary uses (i.e. ballroom, spa, and clubhouse). The General Plan includes goals and policies related to development. A complete consistency analysis of each of the applicable General Plan policies appears within the DEIR on pages 5.8 -13 through 5.8 -24. The environmental analysis concludes that the project is consistent with each of the adopted goals and policies. Local Coastal Program The Coastal Land Use Plan (CLUP) of the Local Coastal Program sets forth goals, objectives, and policies that govern the use of land and water in the coastal zone within the City and addresses land use and development, public access and recreation, and coastal resource protection in accordance with the California Coastal Act. The project site is designated as Visitor- Serving Commercial (CV -B). This designation is intended to provide for accommodations, goods, and services intended for visitors to the City. The proposed project will provide expanded accommodations and services in the City and result in a total gross floor area of 374,104 square feet. This equates to a 0.34 floor area to land area ratio, which is below the 0.50 to 1.25 floor area ratio permitted under the CV -B land use designation. Comments were received from the California Coastal Commission staff suggesting that timeshare developments are not appropriate within the CV -B designation as they are only .quasi" visitor - serving when compared to hotel rooms, and that since the CLUP does not specifically permit timeshares within the CV -B designation, the project would require an amendment to the CLUP. As explained in more detail in the response to the Coastal Commission comment letter (Response to Comment A2 -2 of the Final EIR), City staff disagrees with this interpretation since 100 percent of the proposed timeshare units are I\ Hyatt Regency Newport Beach Expansion November 6, 2008 Page 8 visitor - serving as they provide overnight lodging accommodations and other services to visitors to the coastal zone. Although the CLUP does not define "accommodations" or describe specific uses that are permitted under the CV -B designation, timeshares are described as a visitor - serving use in the narrative within Section 2.3.1 (Visitor- serving and Recreational Development) of the CLUP, which states, 'Visitor- serving and recreational activities are an important part of the character and economy of Newport Beach. In 2003, Newport Beach had 14 hotels, motels, timeshares and bed & breakfast inns in the coastal zone and 18 citywide." Timeshares are also included in the definition of 'Visitor Accommodations" within the City's Zoning Code, along with hotels and motels. Therefore, the proposed project is consistent with the CV -B land use designation and no amendment to the CLUP is necessary for project approval by the City. Although the project has been reviewed for consistency with all applicable CLUP policies in the DEIR, the following policies warrant additional discussion relative to the proposed development: ESHA Protection 4.1.1 -3 Prohibit new development that would necessitate fuel modification in ESHA 4.1.1 -6 Require development in areas adjacent to environmentally sensitive habitat areas to be sited and designed to prevent impacts that would significantly degrade those areas, and to be compatible with the continuance of those habitat areas. 4.1.1 -10 Require buffer areas of sufficient size to ensure the biological integrity and preservation of the habitat they are designed to protect. Terrestrial ESHA shall have a minimum buffer width of 50 feet wherever possible. Smaller ESHA buffers may be allowed only where it can be demonstrated that 1) a 50 -foot wide buffer is not possible due to site - specific constraints, and 2) the proposed narrower buffer would be amply protective of the biological integrity of the ESHA given the site - specific characteristics of the resource and of the type and intensity of disturbance. 4.1.1 -11 Provide buffer areas around ESHAs and maintain with exclusively native vegetation to serve as transitional habitat and provide distance and physical barriers to human and domestic pet intrusion. 4.1.1 -12 Require the use of native vegetation and prohibit invasive plant species within ESHAs and ESHA buffer areas. 4.1.1 -13 Shield and direct exterior lighting away from ESHAs to minimize impacts to wildlife. As previously stated, the Newporter North Environmental Study Area is located north of the project site and consists of native coastal sage scrub. Coastal sage scrub (CSS) provides habitat for the coastal California gnatcatcher (CAGN), which is a federally - listed threatened species and a California Department of Fish and Game - designated species of concern. As described in detail in Section 5.3 (Biological Resources) of the DEIR, Glen Lukos Associates observed gnatcatchers in the coastal sage scrub to the northwest of the site (including a pair that was observed approximately 30 feet beyond the limits of the proposed fuel modification zone) and has also confirmed that the is Hyatt Regency Newport Beach Expansion November 6, 2008 Page 9 Newporter North Environmental Study Area qualifies as an Environmentally Sensitive Habitat Area (ESHA). Upon discovering the need for a fuel modification in accordance with the City's Fire Prevention Guidelines, the project was redesigned so that grading and required fuel modification activities would completely avoid disturbance of all off -site delineated CSS vegetation and that a minimum 50 -foot buffer would be provided between the proposed timeshare structures and the CSS vegetation. To ensure project lighting along the northern perimeter of the site does not cause a significant impact to nesting gnatcatchers, a mitigation measure has been proposed requiring all lighting within 100 feet of the CSS to consist of low intensities, directed away from the CSS habitat, and that the lighting plans be reviewed by a qualified biologist. Concerns were also raised by the California Coastal Commission staff in regards to the use of the required 50 -foot buffer as the fuel modification zone; however, as explained in Response to Comment No. A2 -3, none of the CLUP policies specifically prohibit the buffer from providing dual functions of fuel modification and setback from sensitive habitat where such functions be accomplished with the use of native species. The project design proposes the use of native, fire- resistant species planted exclusively in the 50 -foot buffer between the ESHA and proposed buildings and would only require periodic minor maintenance that would not result in any impacts to or degradation of the adjacent CSS habitat. Scenic and Visual Resources Policies 4.4.1 -1 through 4.4.2 -3 of the CLUP pertain to the design of structures to protect gqtk coastal views and preserve or enhance the visual qualities of the coastal zone. Coastal views from designated roads are to be protected and enhanced. There are two such coastal view roads in close proximity to the project site: Back Bay Drive and a short segment of Jamboree Road north of the project site. The coastal views from Back Bay Drive are to the Back Bay and not the project site; therefore, there is no impact. Visual Simulation 1 (Figure 5.1 -2 of the DEIR) is from a vantage point nearest the Jamboree Road segment; the simulation indicates that no coastal views currently exist from this location. The DEIR also includes view simulations from other public vantage points (Visual Simulations 2 through 9) in the immediate vicinity of the site and concludes that project implementation will not impact any public views. Although private views are not protected, surrounding land uses with existing private views above or through the project site include the Harbor Cove residential community on the bluff north of the project site across the Newporter North ESA and the Sea Island community east of the project site across Jamboree Road. Private view impact concerns were raised at the October 23, 2008, Planning Commission meeting by several residents of these communities. The Community Concerns section of this report addresses these impacts in more detail. Hyatt Regency Newport Beach Expansion November 6, 2008 Page 10 Timeshare Developments Sales, Management, and Contingency Plans Timeshare development projects are subject to the regulations of Chapter 20.84 (Timeshare Developments) of the Zoning Code. Per Section 20.84.040 (Application Process), timeshare development applications shall be accompanied by a sales plan, management plan, and a contingency plan, subject to the approval of the Planning Director. The sales plan is intended to address the times, areas, and methods that will be used to sell the timeshare units. The management plan is intended to guarantee the future adequacy, stability, and continuity of a satisfactory level of management and maintenance of the timeshare project. The contingency plan is intended to address the actions to be taken by the applicant if the timeshare project is an economic failure or fails to sell 50 percent of the units within 2 years of receiving a permit to occupy the first unit. The applicant's proposed sales, management, and contingency plans are attached as Exhibit 6. Staff believes the proposed plans adequately address the purpose of Section 20.84.040, and in conjunction with the recommended conditions of approval, should not negatively impact surrounding uses. Development Agreement Section 20.84.050 (Development Agreement) of the Zoning Code requires that the City and the operator of a timeshare project enter into a development agreement relating to the amount of tax payable to the City by a timeshare owner for the right of occupancy of any timeshare unit (in order to off -set the loss of transit occupancy tax revenues). An Ad Hoc Committee, comprised of Mayor Selich and Council Member Rosansky, was established for the purpose of negotiating the required development agreement between the applicant and the City. As of this writing, the terms and conditions of the development agreement were in the process of being finalized; however, a draft copy of the development agreement is attached as Exhibit 7 for reference. In exchange for vested rights to construct the project, the applicant has agreed to the following terms: • Timeshare Development- Payment of an in -lieu transient occupancy tax fee of Three Million Dollars ($3,000,000). The first half of the fee shall be paid at the time of recording the final parcel map or issuance of the first timeshare building permit, which ever is sooner. The second half of the fee shall be paid at the issuance of the first timeshare building permit • Visitor and Recreational FacilitieslMarinapark- As a public benefit, a visitor and recreational facilities fee of Two Million Dollars ($2,000,000) shall be paid at the time of issuance of the first timeshare building permit. This fee shall be used for improvements that provide visitor and recreational facilities at Marinapark or �a Hyatt Regency Newport Beach Expansion November 6, 2008 Page 11 at any other site designated by the City, at its sole discretion. The fee may be used by the City to provide public access to Newport Bay, public parking, picnic areas, playground equipment, basketball and tennis courts, concessions, and recreational programs. • Off- Site Water Quality Improvements- As a public benefit, payment of One Million Dollars ($1,000,000) for off -site water quality improvements shall be paid at the time of recording the final parcel map or the issuance of the first timeshare building permit, which ever is sooner. The City shall use the fee to pay for specific water quality improvements identified in the draft agreement. The City retains discretion to select the specific improvements for implementation from the list, or to identify other water quality improvements adjacent to Upper Newport Bay and the Dunes Resort and in the general vicinity of the property as may be deemed appropriate by the City. ■ Cancellation of CIOSA Agreement- The CIOSA Agreement shall automatically terminate on the effective date of the proposed development agreement. ■ Maintenance of CIOSA Pre -Paid Transportation Fund- The cancellation of CIOSA terminates the parties' remaining rights and obligations under the CIOSA, including any obligation of the City to repay funds that were provided pursuant to the CIOSA. The City may retain any balance of pre -paid transportation funds the City may be holding as a result of unused CIOSA mitigation. The City may use any such remaining balance of prepaid transportation funds for transportation improvements in accordance with the Protocol Agreement for CIOSA. Subdivision — Tentative Parcel Man The applicant is requesting the approval of a tentative parcel map to reconfigure two existing lots to place the timeshares on one parcel and the hotel on the other, and to establish finished grades for the purposes of measuring height. Pursuant to Section 19.12.070 of the City Subdivision Code (Title 19), the following standard findings must be made to approve the tentative parcel map. If the Planning Commission determines that one or more of the findings listed in relation to the map cannot be made, the tentative parcel map must be denied. 1. That the proposed map and the design or improvements of the subdivision are consistent with the General Plan and any applicable specific plan, and with applicable provisions of the Subdivision Map Act and this Subdivision Code. As noted in the previous sections, the project is consistent with the General Plan. The Public Works Department has reviewed the proposed tentative map and believes that it is consistent with the Newport Beach Subdivision Code (Title 19) and applicable requirements of the Subdivision Map Act. Conditions of approval have been included to ensure compliance with Title 19. Hyatt Regency Newport Beach Expansion November 6, 2008 Page 12 Unaltered, natural grade typically is utilized for the purpose of measuring building height, in accordance with Section 20.65.030.8 (Measurement of Height) of the Zoning Code. Whenever a tentative map is approved, the finished grade as shown on the approved grading plan shall be utilized for measuring building height. The proposed finished grades, as shown on the proposed site grading plan and site section (Sheets C- 2 and A -3 of Project Plans), are not unreasonable given the variable topography of the site. As illustrated in Figure 10 of the previously distributed Final EIR, a majority of the natural grade elevations will actually be lowered, particularly the highest portions of the site where the proposed timeshare buildings are proposed. Overall, 24,000 cubic yards of earth are proposed to be exported (40,000 c.y of cut — 16,000 c.y. of fill). The proposed finished grade beneath the ballroom is approximately 7 feet higher than the underlying existing grade because proposed storm drain improvements will eliminate the need for the existing drainage swale. The ballroom's finished floor was set at an elevation convenient for handicapped accessibility and for management of storm water runoff. 2. That the site is physically suitable for the type and density of development. As previously discussed in the report, the proposed project is consistent with the maximum General Plan development limitation established for the site and significantly below the applicable maximum floor area limit established by the CV -B CLUP designation. The site is physically suitable for development based on the following: • The site is currently utilized as a resort style hotel complex. The hotel expansion and addition of the 88 timeshare units will not change the principal use of the site. • The project is not on a site that is included on a list of hazardous materials sites. • No releases of hazardous substances that would require investigation and /or remediation have been identified at the site. • As designed, the proposed project would not result in significant biological resource impacts and would protect existing resources through the use of native vegetation. • A geotechnical feasibility study was prepared by Kleinfelder which concludes that the site can be developed as planned from a geotechnical perspective. Although the project requires excavation for subterranean parking, the results of the study conclude that excavation required for the timeshare structures would not encounter any groundwater. • The project is located within a Special Fire Protection Area as defined by the City's Fire Department. A Fire Protection Plan prepared by Dudek, and preliminarily approved by the Fire Department, concludes that through code and mitigation requirements, the buildings can be designed to be defensible from wildfire and, in turn, do not represent a significant threat of ignition source from the adjacent native habitat. Hyatt Regency Newport Beach Expansion November 6, 2008 Page 13 3. That the design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage nor substantially and avoidably injure fish or wildlife or their habitat. However, notwithstanding the foregoing, the decision- making body may nevertheless approve such a subdivision if an environmental impact report was prepared for the project and a finding was made pursuant to Section 21081 of the Califomia Environmental Quality Act that specific economic, social, or other considerations make infeasible the mitigation measures or project alternatives identified in the environmental impact report. The DEIR concludes that the proposed development will not result in a significant environmental impact with respect to fish, wildlife, or their habitat. As previously discussed, the project was redesigned so that grading and required fuel modification activities would completely avoid disturbance of all off -site delineated CSS vegetation and compliance with mitigation measures will ensure impacts to wildlife within the adjacent ESHA are minimized. 4. That the design of the subdivision or the type of improvements is not likely to cause serious public health problems. The project consists of 479 hotel timeshare units and ancillary eating, drinking, banquet, and spa facilities as permitted by the Zoning Code and the General Plan. No evidence is known to exist that would indicate that the proposed project will generate any serious public health problems. All mitigation measures will be implemented as outlined in the DEIR to ensure the protection of the public health. 5. That the design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the decision- making body may approve a map if it finds that alternate easements, for access or for use, will be provided and that these easements will be substantially equivalent to ones previously acquired by the public. This ,finding shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to the City Council to determine that the public at large has acquired easements for access through or use of property within a subdivision. No public easements for access through the property currently exist or have been retained for use by the public at large. Other types of existing public easements exist on -site, including utility, sewer, water, drainage, and traffic signal maintenance easements. Project implementation will require modification of the sewer, water, and storm drain easements to avoid constructing permanent improvements over said easements. 6. That, subject to the detailed provisions of Section 66474.4 of the Subdivision Map Act, if the land is subject to a contract entered into pursuant to the Califomia 15 Hyatt Regency Newport Beach Expansion November 6, 2008 Page 14 Land Conservation Act of 1965 (Williamson Act), the resulting parcels following a subdivision of the land would not be too small to sustain their agricultural use or the subdivision will result in residential development incidental to the commercial agricultural use of the land. The site is not subject to a Williamson Act contract; therefore, this finding is not applicable. That, in the case of a "land project" as defined in Section 11000.5 of the Califomia Business and Professions Code: (a) there is an adopted specific plan for the area to be included within the land project, and (b) the decision- making body finds that the proposed land project is consistent with the specific plan for the area. The subject property is not located within the boundaries of a specific plan; therefore, this finding is not applicable. 8. That solar access and passive heating and cooling design requirements have been satisfied in accordance with Sections 66473.1 and 66475.3 of the Subdivision Map Act. Title 24 of the California Building Code requires new construction to meet minimum heating and cooling efficiency standards depending on location and climate. The Newport Beach Building Department enforces Title 24 compliance through the plan check and field inspection processes. 9. That the subdivision is consistent with Section 66412.3 of the Subdivision Map Act and Section 65584 of the Califomia Government Code regarding the City's share of the regional housing need and that it balances the housing needs of the region against the public service needs of the City's residents and available fiscal and environmental resources. The site is designated for Visitor Serving Commercial land uses by the General Plan and Coastal Land Use Plan. Residential development is not proposed or permitted on the site; therefore, this finding is not applicable. 10. That the discharge of waste from the proposed subdivision into the existing sewer system will not result in a violation of existing requirements prescribed by the Regional Water Quality Control Board. Waste discharge into the existing sewer system will be consistent with commercial use of the property which does not violate Regional Water Quality Control Board (RWQCB) requirements. The RWQCB has not provided any comments related to the proposed DEIR during the 45 -day review period. \�a Hyatt Regency Newport Beach Expansion November 6, 2008 Page 15 11. For subdivisions lying partly or wholly within the Coastal Zone, that the subdivision conforms with the certified Local Coastal Program and, where applicable, with public access and recreation policies of Chapter Three of the Coastal Act. As previously discussed, staff believes that the proposed project is consistent with the City's CLUP and the Coastal Act. Modification Request The Zoning Code does not permit the utilization of tandem parking for commercial uses unless a modification permit is approved for the deviation in access of parking spaces. Pursuant to Section 20.65.070.A (Exceptions to Height Limits) of the Zoning Code, architectural features such as, but not limited to, cupolas, weathervanes, open protective railings for stairways, and other roof -top features of an open nature may be permitted in excess of the height limits subject to the approval of a modification permit. Section 20.93.030 of the Zoning Code requires the Planning Commission to make certain mandatory findings in order to approve a modification permit. These findings and the facts in support of these findings are discussed below: 1. The granting of the application is necessary due to practical difficulties associated with the property and that the strict application of the Zoning Code results in physical hardships that are inconsistent with the purpose and intent of the Zoning Code. Tandem Parking The purpose and intent of the off -site parking regulations of the Zoning Code is to ensure sufficient parking is provided for new and expanded land uses, and to ensure efficiency, protect the public safety, and, where appropriate, insulate land uses from adverse impacts. Strict application of the parking requirements would only require a total of 396 spaces, which could be accommodated on -site without the need for tandem parking; however, as described in the Parking section of this report, the proposed 912 parking spaces is consistent with the project's total parking needs. This number of parking spaces cannot be accommodated on -site without the extensive use of tandem parking, unless the construction of a much larger parking structure is proposed. The applicant opted to construct a smaller, less visually intrusive parking structure and expand the use of tandem parking through out the site. This increased parking meets the intent of the Zoning Code by ensuring sufficient parking is being provided for the expanded uses, while the proposed valet operation will insure efficient and safe parking management for the hotel and banquet guests. 1I Hyatt Regency Newport Beach Expansion November 6, 2008 Page 16 Cupola & Tower Feature General Plan Land Use Element Policy LU 5.2.1 (Architecture and Site Design) requires that new development within existing commercial districts centers and corridors complement existing uses and exhibit high quality architectural and site design in consideration of a number of design principles. One principle in particular requires modulation of building masses, elevations, and rooflines to promote visual interest. Use Permit No. 3161 permitted a cupola over the main hotel entry measuring a total height of 52 feet 9 inches, which was used to establish an identifying feature for the hotel visible from Jamboree Road. This was similar to the ballroom cupola proposed with this project and intended to serve a similar function. The proposed architectural cupola and tower feature is intended to complement the existing hotel and cupola, create visual interest, and establish a separate identifiable feature for the ballroom building. Strict application of the height limits would eliminate the ability to provide this enhanced architectural treatment of the ballroom structure. 2. The requested modification will be compatible with the existing development in the neighborhood. Tandem Parking The existing hotel and banquet facilities currently operate primarily with valet service utilizing tandem parking (previously approved by Use Pen-nit No. 3161). Proposed operations will not change significantly from current operations, with the exception of the increased utilization of tandem parking spaces. Continued valet parking service will ensure guests arriving for large banquet events can be parked more efficiently and safely than can be achieved through self - parking. To minimize the visual impact of the parking lots as viewed from the adjacent right -of- ways and properties, the parking areas will remain extensively screened from view with the use of groundcover, hedges, and trees. Cupola & Tower Feature The ballroom's proposed cupola and tower feature is 57 feet 6 inches in height with an additional 5- foot -high finial on top. This is approximately 10 feet higher than the height of the existing cupola located at the hotel entrance. Besides the height differential, the difference in location within the site is also important. The existing cupola is located at a higher elevation, but is less visibly intrusive since it is buffered from adjacent properties due to the extensive landscaping throughout the site and its location in the center of the property. The proposed cupola and tower feature, on the other hand, are located on the lowest elevation of property, but in a location that will be highly visible by the Sea Island Community, Bayview Landing Senior Apartment, and Newport Dunes. Hyatt Regency Newport Beach Expansion November 6, 2008 Page 17 Within the context of a 25 -acre site, the cupola and tower feature are a rather minor projection; however, given its prominent location, staff would recommend that the cupola and tower be reduced in height 5 feet, consistent with the height of the existing cupola over the hotel entrance (exclusive of the finial). As shown in Exhibit 8, the recommended reduced height of the cupola and tower feature still achieves visual interest and articulation, but is more in line with the scale of the existing development. 3. The granting of such an application will not adversely affect the health or safety of persons residing or working in the neighborhood of the property and will not be detrimental to the general welfare or injurious to property or improvements in the neighborhood. Tandem Parking As previously stated, the existing hotel and banquet facilities were previously approved and currently operate primarily with valet service utilizing tandem parking. To date, the utilization of a tandem parking with valet service has not proven detrimental to persons residing or working in the neighborhood. It should also be noted that several other large hotels in the City, such as the Island Hotel and Fairmont Hotel, operate exclusively with valet service utilizing tandem parking and have also not proven detrimental. This parking configuration provides guests with direct access to the hotel uses, eliminates the need for guests to park a significant distance from the hotel entry, and enhances safety for guests by eliminating the need to walk through parking lot areas, separating them from vehicles circulating the parking lots, particularly during large banquet events where guests tend to arrive simultaneously. To ensure that the valet parking services needed to effectively utilize the large number of tandem spaces do not result in a significant impact, particularly during large wedding, banquet, conference, and special events, preparation of, and compliance with, a valet parking management plan has been included as a mitigation measure. Cupola & Tower Feature The proposed cupola and tower feature will be visible from Jamboree Road and Back Bay Drive, as well as the adjacent Sea Island residential community and the Bayview Landing senior apartment complex. Above the maximum height limit, the edges of the tower are tapered, and arched openings (5.5 feet wide x 8 feet high) exist on each of its four sides, visually reducing the mass of the tower feature and allowing it to remain open in nature. The cupola and tower feature will not block any private or public views, but will project into the panoramic views of the site, similar to the existing cupola over the main hotel structure which is not detrimental to the visual quality of the area. A condition of approval has been added to limit the illumination of the cupola to soft accent lighting at night so as not to become a nuisance to the Sea Island residents. \A Hyatt Regency Newport Beach Expansion November 6, 2008 Page 18 Use Permit for Increased Height The site is located in the 26135 -foot height limitation zone that permits buildings and structures to exceed the 26 -foot height limit up to a maximum of 35 feet through the approval of a use permit. Ridges of pitched roofs are permitted to exceed the height limit by 5 additional feet. The proposed project exceeds the 26 -foot base height limit. The proposed roof midpoint and ridge heights, as measured from the proposed finished pad elevations, are as follows: TS -1 33 feet 37 feet TS -2 35 feet 40 feet TS -3 35 feet 40 feet TS-4 35 feet 40 feet TS -5 35 feet 40 feet TS -6 35 feet 40 feet Ballroom 31 feet 6 inches 36 feet 6 inches (excluding cupola) Spa 17 feet 22 feet Parking Structure 18 feet (top of parapet) 34 feet 6 inches (top of light standards Section 20.65.055 of the Zoning Code requires the Planning Commission to make certain mandatory findings in order to approve a use permit to exceed the base height limit. These findings and the facts in support of these findings are discussed below: The increased building height would result in more public visual open space and views than is required by the basic height limit in any zone. Particular attention shall be given to the location of the structure on the lot, the percentage of ground cover, and the treatment of all setback and open areas. The proposed timeshare buildings are to be located on a portion of the site with the highest grade elevations and most visible from the Newport North View Park to the north. Currently, development is not visible from this location. Maintaining the 26 -foot height limit would not allow the design of structures greater than two- levels in height, resulting in the need to create much larger building pads in order to develop the remaining entitled rooms. This required increase in horizontal dimensions of these structures would reduce the amount of open space and landscaping that can be provided on the site. Instead, the proposed project clusters the taller, three -level buildings throughout the site to provide increased public visual open space, not only by allowing a significant amount of open space to remain around the timeshare structures as viewed from the Newporter North View Park, but also by allowing approximately 40.4 percent of the site to remain as open space and visually enhanced with landscaping. a� Hyatt Regency Newport Beach Expansion November 6, 2008 Page 19 In contrast to the timeshare buildings, the proposed ballroom consists of a single level; however, increasing the height limitation for the ballroom accommodates ceiling heights approximate to the size of the 800 -seat capacity ballroom. An alternative to developing one large ballroom, which can be divided up into smaller ballrooms and meeting rooms, would be to simply construct three or four smaller ballroom structures that can be designed with lesser ceiling heights consistent with the base 26 -foot height limit. It is important to note, however, that the consolidation of smaller ballroom /meeting spaces into one grand ballroom structure, results in the consolidation of the support uses, such as kitchens, storage rooms, restrooms, pre - function areas, trash areas, etc. Consolidation reduces the amount of floor area and lot coverage that would otherwise be dedicated to these various support uses. The development of one large ballroom also allows for the retention of increased setbacks from Jamboree Road (approx. 379 feet) and Back Bay Drive (approx. 94 feet), whereas, smaller detached ballrooms would likely have reduced setback distances. 2. The increased building height would result in a more desirable architectural treatment of the building and a stronger and more appealing visual character of the area than is required by the basic height limit in any zone. Maintaining the 26 -foot height limit would result in increased lot coverage. Clustering the proposed buildings throughout the site and around the existing buildings, which are approximately 9 feet lower in height, would create variation in roof heights. This would enhance the visual character of the area. The additional height would also allow significant use of sloping roof planes, which would add visual interest. The alternative would be to utilize flatter roofs and low sloping roofs to achieve higher ceilings, similar to the existing hotel buildings. 3. The increased building height would not result in undesirable or abrupt scale relationships being created between the structure and existing developments or public spaces. Particular attention shall be given to the total bulk of the structure including both horizontal and vertical dimensions. The proposed project, which consists of one, two, and three -story structures, is consistent with the development of the existing hotel buildings. The proposed heights of the buildings are only approximately 9 feet higher than the existing buildings, and are comparable in height to the adjacent Bayview Landing Senior Apartments. Also, as reflected on the view simulations contained within the DEIR (Figures 5.1 -2 through 5.1 -11), the proposed building heights will not result in an abrupt scale relationship with the other existing developments in the area due to the distance between the project site and adjacent neighborhoods, and the significant amount of mature landscaping on the site. a� Hyatt Regency Newport Beach Expansion November 6, 2008 Page 20 4. The structure shall have no more floor area than could have been achieved without the use permit. The proposed structures will have no more floor area than could have been achieved without requesting the increased height. The structures could have been designed to comply with the height limit; however to achieve the same room count, the buildings would have to be enlarged horizontally, thus increasing horizontal bulk and reducing open space. Parking The proposed project would provide a total of 912 parking spaces to serve the hotel and timeshare facilities. The hotel rooms and ballroom facilities, located on Parcel 1, would be served by 785 parking spaces, configured as 345 standard parking spaces and 440 tandem spaces. The timeshare units and clubhouse facility, located on Parcel 2, would be exclusively served by 127 standard parking spaces for use by timeshare unit guests only. Any additional parking spaces needed for the timeshare units would be provided on Parcel 1. Based on the following Zoning Code parking requirements, the proposed project only requires a total of 336 parking spaces: The Zoning Code hotel parking requirement assumes incidental eating, drinking and banquettmeeting facilities for the convenience of guests will be provided. In reality, the one -space per two -rooms parking ratio is unrealistic given the size of this project and significant area devoted to banquet use. The 1989 amendment to Use Permit No. 3161 established a parking ratio for the hotel based on a demonstrated parking formula supported by a parking study prepared by Linscott, Law & Greenspan, Traffic Engineers. The parking study concluded that under normal day to day operations, a parking ratio of 1.5 spaces per guest room would be adequate for the hotel and related uses; however, that parking study also concluded that when the proposed banquettmeeting rooms were heavily used by groups that were not staying at the hotel, additional off -site parking would be necessary (expected to occur only 4 to 5 times per year during special events). To address the need for the additional off -site parking, conditions of approval were imposed requiring a contingency parking plan that identified various off -site parking opportunities that would be available to the hotel when needed and requiring the approval of a special events permit for those said occasions. a� _M1 .ME. , Hotel 1 per 91 rooms 196 785 Timeshare Units 7rooms 1.2 8 units 106 127 Timeshare 1 pe,702 net sq. ft. 34 Clubhouse Meetin Facility Total 336 812 The Zoning Code hotel parking requirement assumes incidental eating, drinking and banquettmeeting facilities for the convenience of guests will be provided. In reality, the one -space per two -rooms parking ratio is unrealistic given the size of this project and significant area devoted to banquet use. The 1989 amendment to Use Permit No. 3161 established a parking ratio for the hotel based on a demonstrated parking formula supported by a parking study prepared by Linscott, Law & Greenspan, Traffic Engineers. The parking study concluded that under normal day to day operations, a parking ratio of 1.5 spaces per guest room would be adequate for the hotel and related uses; however, that parking study also concluded that when the proposed banquettmeeting rooms were heavily used by groups that were not staying at the hotel, additional off -site parking would be necessary (expected to occur only 4 to 5 times per year during special events). To address the need for the additional off -site parking, conditions of approval were imposed requiring a contingency parking plan that identified various off -site parking opportunities that would be available to the hotel when needed and requiring the approval of a special events permit for those said occasions. a� Hyatt Regency Newport Beach Expansion November 6, 2008 Page 21 Applying the 1988 use permit amendment parking ratio of 1.5 spaces per hotel room to the proposed project would result in the following parking demands: w_ 391 Guest Rooms 1.5 spaces/room 587 spaces Timeshare 1.2 spaces /room 106 88 units Timeshare Clubhouse /Meeting 1 space /50 sq ft of meeting 34 Facilities area 1 702 s . ft. net Total 727 spaces A recent parking demand analysis was prepared as part of the traffic analysis for the proposed project by IBI Group, utilizing the Urban Land Institute (ULI) manual Shard Parking, 2 "d Edition. The analysis compares the hotel and ballroom facility parking demand data included in the ULI publication with the parking proposed for the project. The ULI manual contains parking data from land uses throughout the United States and identifies typical peak parking rates for specific land uses and opportunities for shared parking. Shared Parking identifies a peak demand of 20 parking spaces per 1,000 square feet of facility space for hotels with ballrooms /banquet facilities that exceed 50 square feet per guest room (project provides 70.1 sq. ft. per guest room). Adjustments to the parking demands for certain uses are recommended to account for captive and non - captive users; banquet/meeting space at hotels is identified as such a use. The parking analysis assumed a conservative, non - captive ratio of 90 percent. In other words, 90 percent of the banquet guests drive to the hotel and park for the sole purpose of attending a banquet function (Shard Parking actually recommends ratios between 25 percent and 60 percent). Applying the ULI Shared Parking peak parking demand of 20 spaces per 1000 square feet of facility space, with a 90 percent adjustment to account for captive users, to the required Zoning Code parking requirements, results in the following parking demands: 30,432 net meeting /banquet 120 per 1000 sq. ft. 1608.64 x 90% = 547.78 spaces Timeshare Clubhouse /Meeting 11 space/50 sq ft of meeting 1 34.04 Facilities area Shard Parking also forecasts peak parking demand time periods based on actual parking surveys. The parking demand analysis concludes that at no time would the hotel demand exceed the 785 parking spaces located on Parcel 1 for use by the hotel guest rooms and ballroom/banquet facilities. The analysis also concluded that Hyatt Regency Newport Beach Expansion November 6, 2008 Page 22 anticipated parking demand generated by the timeshare units and the associated clubhouse facility would not exceed the 127 parking spaces designated exclusively for the timeshare facilities on Parcel 2. The following table summarizes the parking demand analysis for the entire project on an hourly basis for a typical weekday, with the peak parking demand occurring at 5:00 p.m.: _ Ml 8:00 AM M, a 479 106 585 39:00 AM 762 88 850 10:00 AM 742 78 820 11:00 AM 742 76 818 12:00 PM 732 103 835 77 1:00 PM 732 103 835 77 2:00 PM 742 85 827 85 3:00 PM 742 78 820 92 4:00 PM 752 83 835 77 5:00 PM 762 95 857 55 6:00 PM 469 109 578 334 7:00 PM 348 111 459 453 8:00 PM 358 119 477 435 9:00 PM 247 123 370 542 10:00 PM 186 121 307 605 Based on the forecast parking demand summarized in the table above, the proposed project is expected to provide sufficient parking to meet the parking demand generated by the hotel and the timeshare facilities. In order to ensure that sufficient parking is continued to be provided during occasional large events, such as the Summer Jazz Series permitted by Use Permit No. 2001 -031 and other special events (requiring a special events permit), the applicant has maintained reciprocal parking arrangements with the Newport Dunes and the Palisades Tennis Club for use of overflow parking, as well as an arrangement with the Irvine Company for additional overflow parking at Newport Center office building facilities. Letters have been provided (Exhibit 9) from each of these facilities stating that they have, and will continue to provide, off -site parking to the Hyatt Regency during the occasional large special events. General Use Permit Findings In addition to the required findings for the increased height request, the Zoning Code requires the Planning Commission to make certain findings for use permits. These findings and facts in support of findings are listed and discussed below. 1. That the proposed location of the use is in accord with the objectives of this code and the purposes of the district in which the site is located. ��k Hyatt Regency Newport Beach Expansion November 6, 2008 Page 23 The subject property is located within the Retail and Service Commercial (RSC) Zoning District. Hotels and timeshares are considered visitor accommodations that are permitted land uses with the approval of a use permit. The proposed expansion of the existing hotel uses and addition of the 88 timeshare units is consistent with RSC zoning designation. With the exception of the use permit request for increased height, and modification request for the commercial tandem parking and increased height of the architectural tower element, all required development regulations of the RSC District have been met. 2. That the proposed location of the use permit and the proposed conditions under which it would be operated or maintained will be consistent with the General Plan and the purpose of the district in which the site is located, will not be detrimental to the public health, safety, peace, morals, comfort, or welfare of persons residing or working in or adjacent to the neighborhood of such use, and will not be detrimental to the properties or improvements in the vicinity or to the general welfare of the city. Staff believes the project will not be detrimental to the public or properties in the vicinity, or to the general welfare of the City for the following reasons: • All potential environmental impacts have been analyzed in the Initial Study and DEIR and were found not to be significant with the incorporation of specific mitigation measures, with the exception of temporary construction noise impacts to nearby noise - sensitive uses. No feasible mitigation measures exist that would reduce these impacts to less than significant levels; therefore, a Statement of Overriding Considerations must be adopted that finds that the benefits of the project outweigh the unavoidable adverse environmental effects. • The proposed conditions of approval and mitigation measures for this project will ensure that all conflicts with surrounding land uses are minimized to the greatest extent possible or eliminated. • The project has been designed to avoid disturbances to the adjacent ESHA. • Adequate off - street parking and related vehicular circulation are being provided in conjunction with the proposed project. • A contingency parking plan for additional off -site parking will provide sufficient parking for those special occasions in hotel operation when demand for parking exceeds the number of available on -site parking spaces. • Traffic analysis has determined that the increased traffic generated as a result of project implementation will not result in significant impacts to intersections or traffic circulation in the City of Newport Beach, and more specifically, within the vicinity of the project site. • The project has been conditioned so as to control and reduce excess lighting and to avoid off -site light spillage. a Hyatt Regency Newport Beach Expansion November 6, 2008 Page 24 3. That the proposed use will comply with the provisions of this code, including any specific condition required for the proposed use in the district in which it would be located. The Zoning Code requires the approval of a use permit for hotel and timeshare uses. As previously noted, the sales, management, and contingency plans required per Section 20.84.040 adequately address the purpose of each required plan. Community Concerns At the October 23, 2008, Planning Commission meeting, several residents from the adjacent communities of Sea Island (across Jamboree Rd.) and Harbor Cove (north of the site) expressed concerns with the project. Their concerns focused on impacts associated with traffic, noise, lighting, ESHA buffer, and private views. These concerns are similar to comments received during the public comment period for the Draft EIR. The following summarizes the verbal concerns received at the last meeting and provides a reference to the associated response to comment number: Traffic Concerns General Concern- Project will generate excessive traffic. Response- Section 5.11 (Transportation and Traffic) of the DEIR evaluates the project's potential to result in transportation and traffic impacts in the City. As stated in several responses to comments, including R1 -1, R2 -1, R6 -1, R8 -2, and R8 -3, the traffic impact analysis identified no significant impact to the surrounding roadway network, per the guidelines established by the City. General Concern- Project will increase the number of accidents that occur at the intersection of Jamboree and the project driveway as a result of vehicle stacking. Response- As illustrated in detail in Response to Comment No. R9 -7 and R5 -4, and based on accident history for 2005 through 2007, it is not anticipated that the project would cause an increase in traffic accidents along Jamboree Road adjacent to the project. It should also be noted that the events cited to cause excessive vehicular stacking at the driveway intersection were not associated with normal hotel operations, but rather associated with special events such as the Summer Jazz Series and the Jazz Festival that require a separate special events permit. Noise Concerns General Concern- Increased noise generation associated with the new location of the housekeeping and engineering building. a� Hyatt Regency Newport Beach Expansion November 6, 2008 Page 25 Response- As indicated in Response to Comment No. R5 -3, stationary noise from operation of the project was addressed in the DEIR under Impact 5.9 -2 and, per Section 10.26.025 of the Municipal Code, noise generated at the Hyatt Regency property is prohibited from generating noise levels at residential properties that exceed 55 dBA L25 during the day and 50 dBA L25 during the night. General Concern- Additional noise generated as a result of the increased traffic. Response- As indicated in Response to Comment Nos. R8 -2 and R11- 42(7), DEIR Section 5.9 provides a detailed, qualitative analysis of the noise impacts that would be caused by the project. The increase in traffic noise associated with the project was specifically addressed in the DEIR under Impact 5.9 -1, which concludes that future noise levels would not significantly contribute to the existing noise environment in the vicinity of noise - sensitive receptors. Lighting Concerns General Concern- Lighting from the roof -level of the parking structure will negatively impact adjacent residences. Response- Due to the existing ambient lighting conditions of the project site, the proposed lighting necessary for the illumination of the parking structure, as designed with full cut -off luminaries, will not create a significant new source of substantial light and glare that would adversely affect day or nighttime views in the area. As described in Response to Comment Nos. 01 -8, R5 -5, R6 -1, and R8- 6, lighting will have to comply with standard lighting conditions of approval, including the preparation of a photometric study in conjunction with a final lighting plan, which must show that lighting values would be 1- foot - candle or less at all property lines. Also, prior to occupancy, the lighting improvements would be inspected by Code Enforcement personnel to confirm that lighting levels to confirm the control of light and glare and that lighting levels do not exceed the requirements of the approved lighting plan E5HA Buffer Concern General Concern— The proposed 50 -foot buffer is not sufficient, given the ecologic significance of the Upper Newport Bay ecosystem and the proximity of nesting gnatcatchers. A buffer of 100 meters should be provided, similar to a recent project in Bolsa Chica. Response- As explained in detail by Response to Comment No. R3 -1, the determination of appropriate buffer widths depends on a variety of factors, including the species potentially affected, the extent of the interface between development and environmentally sensitive habitat areas, and other measures to mitigate potential indirect impacts. For this project, a 50 -buffer is sufficient given I'A Hyatt Regency Newport Beach Expansion November 6, 2008 Page 26 the site conditions and the type of species impacted. The project referenced in Bolsa Chica was approved with a variable buffer to mitigate impacts to the white - tailed kite, a species that is more sensitive to development than the gnatcatcher. The gnatcatcher has been documented to nest within 19 feet of a major interstate. Private View Concerns General Comment- Existing views of Catalina Island, Back Bay, and the golf course (greenbelt) will be compromised or lost, and replaced with views of new buildings, parking structure, and/or more cars. Impacts to private views may result in a decrease in property values. Response- As explained in Response to Comment Nos. R5 -6, R7 -2, and R8 -6, and as documented in Section 5.1 (Aesthetics) of the DEIR, the City's General Plan and Coastal Land Use Plan policies focus on the protection of public views. The City does not have any private view protection ordinances or policies. The DEIR acknowledges that surrounding residential communities have existing views of the site and some existing views may be impacted. The economic issue of the potential loss of property values is not in the realm of the environmental review under CEQA; however, the Planning Commission may consider these impacts when reviewing the project's discretionary applications related to the increased heights of the structures. Also, for the benefit of the public and the Planning Commission, the applicant will be preparing view simulations, from both the adjacent Sea Island and Harbor Cove communities to provide better visual representations of what the anticipated private view impacts will be. General Comment- The view of the proposed timeshare buildings from the Harbor Cove community should be screened with increased landscaping to visually soften and /or obstruct views of these buildings. Response- As indicated in response to Comment No. R11- 26(6), the new view simulations in Section 3 of the FEIR have been revised to accurately reflect the landscape plan and fuel modification plan. Due to the potential fire hazard, fuel modification is required along the northern boundary of the project which includes compliance with specific landscaping requirements, such as limiting the planting of trees to groupings of three maximum, with groupings spaced a minimum of 30 feet apart; therefore, the timeshare buildings cannot to be fully screened by increased landscaping. Environmental Review Prior to taking action on the requested use permit, modification permit, tentative parcel map, and development agreement, the Planning Commission must first review, consider, and recommend City Council certification of the Final Environmental Impact Report XX Hyatt Regency Newport Beach Expansion November 6, 2008 Page 27 (FEIR). Refer to the October 23, 2008, staff report that provides a detailed overview of the DEIR, and includes formal response to comments and revisions to the DEIR, which together comprise the FEIR. Additional comment letters were recently received by Unite Here! Local 11 (October 21, 2008) and the City of Irvine (October 22, 2008), regarding the adequacy of the DEIR. Both letters were received outside the public comment period, which concluded on March 27, 2008. The letter from Unite Here! reiterates previous comments made by the organization in their original March 26, 2008, comment letter and comments made by the California Coastal Commission staff in their letter dated March 25, 2008. The previously prepared response to these comment letters adequately addresses their recent comments. The City of Irvine did not previously comment during the formal public comment period, and although not required per CEQA, staff will be preparing formal responses for the Planning Commission's consideration and for inclusion in the FEIR. Planning Commissions' Concerns At the last meeting, the Planning Commission provided comments on the DEIR and requested staff to return at tonight's meeting with additional information. The following section provides a summary and response to each of these comments: Comment- The environmental topic area of Recreation may have been improperly scoped out from further discussion in the DEIR as a result on the loss of the nine -hole golf course. The Commission requested staff consult with the Newport Beach Chamber of Commerce to receive their opinion on the potential impacts to hotel demand in the City that may result from the loss of the golf course. Response- The typical thresholds used to determine whether a project may have a significant impact are related to whether the project will increase the use of existing neighborhood and regional parks or other recreational facilities, such that substantial deterioration of the facility would occur, and whether the project includes or will require the construction of recreational facilities, which might have a adverse physical effect on the environment. Based on the discussion in the Initial Study, it was determined that impacts related to recreation would be less than significant and no further analysis was required. The timeshare units are short-term vacation units and not permanent residences. Recreational needs would likely be accommodated by several existing recreational facilities located in the surrounding area. With the exception of the new spa, the project does not include any new recreational facilities or require the construction of any new facilities; the spa is not anticipated to have an adverse physical effect on the environment. Staff also consulted with Richard Luehrs, President and CEO of the Chamber of Commerce, who confirmed that the nine -hold golf course is underutilized and the loss of the course should have no impact on the ability of the City to attract hotel guest to the City. b Hyatt Regency Newport Beach Expansion November 6, 2008 Page 28 Comment- Due to the modification request to exceed the height limit, requested staff to look at Sections 15064(e) and 15131 of the CEQA Guidelines related to the economic impacts that the project may have on the impacts to private views. Response- While economic and social impacts of proposed projects are outside the purview of CEQA, pursuant to Sections 5064(e) and 15131 of the CEQA Guidelines, when there is evidence that economic and social effects caused by a project could result in a reasonably foreseeable indirect environmental impact, then the City is obligated to assess this indirect environmental impact. An example of this would be a proposed shopping center located away from a downtown shopping area that would take business away from the downtown area and thereby cause business closures and eventually physical deterioration of the downtown. There is no evidence to suggest that a significant reduction in property values would result from the completion of this project and its impact on private views, and indirectly result in a significant physical change to the environment. Comment - Requests that authority be cited stating that a design -level study is appropriate at the level of analysis that is provided in the DEIR. Response- CEQA Guidelines Section 15146, Degree of Specificity, clarifies that the level of study should correspond to the degree of specificity of the activity described in the EIR. The Hyatt Regency expansion is a project -level analysis which requires a relatively detailed level of analysis (compare to a General Plan for example), but it is not a grading permit level of approval. The geotechnical study that was performed was based on detailed analysis including field exploration (including site borings). The requirement for more detailed analysis does not represent mitigation deferral. The geotechnical report concludes that the development as proposed is feasible if the recommendations in the report are followed. Detailed recommendations (performance standards) are included and have been incorporated into the EIR mitigation measure. Comment- If possible, requested a draft Construction Management Plan be submitted for the Planning Commission's review. Response- Basic and preliminary construction traffic control and parking control activities were described in the DEIR and response to comments; however, detailed construction management plans are typically reviewed and approved by the City's Public Works Department prior to the issuance of demolition and grading permits. Lack of information at this time on staging of the project, method to construction, project phasing, and need for off -site storage or parking makes it infeasible to develop a realistic construction management plan for review. A condition of approval has been included requiring the plan to include a discussion of project phasing, parking arrangements for both sites during construction, 3a Hyatt Regency Newport Beach Expansion November 6, 2008 Page 29 anticipated haul routes, and any required construction mitigation measures. Large construction vehicles will not be permitted to travel narrow streets and disruption caused by construction work along roadways and by movement of construction vehicles must be minimized by proper use of traffic control equipment and Hagman. Should the Planning Commission wish to review the construction management plan for the project, a condition of approval can be included requiring Planning Commission review prior to the issuance of a demolition or grading permit for the project. Comment- Provide data to support the statement in Response to Comment R11- 4, which states that Population and Housing was scoped out of the DEIR for further discussion because "the number of new employees required to support expansion would be minimal ". How many new employees are anticipated to be required upon build -out? Response- The applicant has stated that Hyatt Regency Newport Beach currently employees 220 full -time employees and expects to employee an additional 53 to 63 new full -time employees. The project should not generate significant population growth with respect to the creation of these new jobs. Orange County's unemployment rate is currently estimated at 5.7 percent (State of California, Employment Development Dept.); therefore, employees to staff the hotel expansion would be available from the local labor market. Also, the City's job /housing balance is 1.0 (based on 2008 EDD employment of 44,200 and 2007 Census housing unit estimate of 43,851) which indicates the City is housing rich (jobs poor), given that a range of 1.3 -1.7 is typically considered ideal. Unavoidable Adverse Impacts As described in the October 23, 2008, staff report, all of the potentially significant adverse impacts associated with the proposed project can be reduced to a less than significant level through the implementation of mitigation measures, with the exception of the following impact: Impact 5.9 -5 Construction activities at the Hyatt Regency would significantly elevate the daytime noise environment in the vicinity of noise - sensitive residential and recreational uses. Despite the application of several mitigation measures (MM 9 -1 through 9 -5), to reduce noise levels from construction activities, nearby noise - sensitive uses would be temporarily exposed to elevated noise levels during construction activities and Impact 5.9 -5 would remain Significant and Unavoidable. A Statement of Overriding Considerations will have to be adopted at the time of project approval by the City Council. A draft Statement of Overriding Considerations has been prepared that identifies economic, social, and technological benefits of the project related 3� Hyatt Regency Newport Beach Expansion November 6, 2008 Page 30 to the growing demand and need for visitor accommodations and conference facilities in the City of Newport Beach and the introduction of new storm drainage improvements in the project area (Exhibit 10). Public Notice Notice of this hearing was published in the Daily Pilot, mailed to property owners within 300 feet of the property (excluding roads and waterways) and posted at the site a minimum of 10 days in advance of this hearing consistent with the Municipal Code. The environmental assessment process has also been noticed in a similar manner and all mandatory notices per the California Environmental Quality Act have been given. Finally, the item appeared upon the agenda for this meeting, which was posted at City Hall and on the city website. Summary The proposed addition of the 88 timeshare units fulfills the remaining entitlement permitted under the General Plan and vested development rights granted under CIOSA. The proposed expansion of the hotel, including the new ballroom, will help meet the City's needs of enhancing visitor accommodations and conference facilities. The project is consistent with goals and policies of the General Plan, and will result in no adverse environmental impacts that cannot be mitigated, with the exception of the one impact that necessitates the adoption of a Statement of Overriding Considerations. Therefore, staff recommends that the Planning Commission recommend City Council certification of the Environmental Impact Report and approval of the requested applications. Alternatives Should the Planning Commission conclude that the project as proposed would not be compatible with the surrounding uses and /or that the timeshare component of the project is inappropriate for the CV land use designation and CV -B coastal land use designation, the project should be denied, or modified to address the issues of concern. If a redesigned project is advisable, staff recommends a continuance to allow the applicant time to revise their plans accordingly should this course of action be sought. Prepared by: Mme Murillo, Associate Planner EXHIBITS Submitted by: David Lepo, Pla mg Director 1. Draft resolution recommending certification of FEIR 2. Draft resolution recommending project approval 3. Project Plans 4. Timeshare Operations Plan 3� Hyatt Regency Newport Beach Expansion November 6, 2008 Page 31 5. Use Permit No. 2001 -031 resolution of approval 6. Timeshare sales, management, and contingency plans 7. Draft development agreement 8. Reduced height alternative for ballroom tower 9. Off -site parking arrangement letters 10. Draft Statement of Overriding Considerations F: \USERS\PLN\Shared\PXs\PAs - 2005 \PA2005- 212\Planning Commission\PA2005 -212 110608 PCrpt.doc J 5`