HomeMy WebLinkAboutHoag Health Center (PA2007-013)CITY OF NEWPORT BEACH
PLANNING COMMISSION STAFF REPORT
January 17, 2008 C4
Agenda Item 3 !moo
SUBJECT: Hoag Health Center (PA 2007 -013) !�
500 -540 Superior Avenue
• Amendment to Use Permit No. 2006 -010
• Traffic Study No. 2007 -002
• Certification of Final Environmental Impact Report
(SCH. No. 2006101105)
APPLICANT: Newport Beach Healthcare Center, LLC
PLANNER: Jaime Murillo, Associate Planner
(949) 644 -3209, imurillo (c�city.newoort- beach.ca.us
SUMMARY
The applicant is requesting to amend Use Permit No. 2006 -010 (redevelopment of the
former Newport Technology Center) to: (1) convert 232,414 square feet of general office
and research and development (R &D) floor area to medical office use; and (2) authorize
the construction of an additional 20,586 square feet of medical office space, for a total
of 350,000 gross square feet of medical office floor area. The following are required in
order to implement the project as proposed:
Certification of Final Environmental Impact Report; and
2. Preparation of a traffic study pursuant to Chapter 15.40 (Traffic Phasing
Ordinance); and
3. Amendment to Use Permit No. 2006 -010 to allow the conversion of the balance
of general office and R &D space on the site to medical office use.
The project was continued from the November 15, 2007 Planning Commission meeting
as a result of a new significant impact that was identified (see Environmental Review,
page 14 of this staff report) requiring recirculation of a limited portion of the Draft
Environmental Impact Report (DEIR) for an additional 45 -day public review period. This
staff report is intended to replace and supersede the November 15, 2007, staff report.
Staff recommends that the Planning Commission take the following action:
1. Receive staff presentation, receive applicant's presentation, open public hearing,
and receive public comments.
2. Adopt resolution (Exhibit 1) certifying the Final Environmental Impact Report
(SCH. No. 2006101105) and adopting a Mitigation Monitoring and Reporting
Program.
3. Adopt resolution (Exhibit 2) approving the amendment to Use Permit No. 2006-
010 and finding the preparation of Traffic Study No. 2007 -002 in compliance with
the Traffic Phasing Ordinance, subject to findings and conditions.
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ON-SITE
Medical Commercial
Medical
Controlled Manufacturing
General office and R &D uses
CC -M
District M -1 -A
Governmental, Educational
City of Newport Beach
NORTH
Public Facilities [PF]
and institutional Facilities
Corporation Yard
GEIF
General
Old Newport Blvd- Specific
EAST
Commercial Office
Plan (SP -9) /Retail & Service
Office and commercial uses
CC-G)
Commercial RSC
Multi - Family Residential
Multiple -Unit Residential
[MFR] ! Administrative,
Multiple - Family Residential and
SOUTH
[RMjlPrivate Institutions
Professional, Financial
Flagship Medical Care Center
[Pl)
APF
Harbor Homes Trailer Part and
WEST
RM 1 CO -M
MFR I M-1 -A
Su Briar Medico€ Center
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Hoag Health Center
January 17, 2008
Page 3
Proiect Description
The applicant is requesting approval of an amendment to the existing Use Permit to
convert the remaining 232,414 square feet of general office and R &D floor area, of the
total existing 329,414 square feet of floor area, to medical office use. The applicant is
also seeking preliminary approval to construct an additional 20,586 square feet of floor
area for a cafe or medically - related retail space. To allow for future flexibility, the future
additional square footage is assumed to be medical office use, resulting in total
development of 350,000 square feet of medical office floor area. The total new medical
office floor area requested as part of this amendment is 253,000 square feet (232,414 +
20,586).
Although there is currently no precise plan for the additional 20,586 square feet of floor
area, the applicant is requesting approval of a building to be located between the two
parking structures as shown on the proposed site plan (Exhibit 1) with a height not to
exceed the 32 -foot base height limitation. Given the location and height limitation of the
proposed building envelope in relationship to the existing buildings on -site, the new
building will be shielded from view from the residential developments to the west and
south, as well as any views from Newport Boulevard.
The applicant is also seeking to expand the previously - permitted shuttle service from
two round -trips per hour to four round -trips per hour, and to extend the interim one -year
parking provision permitting ancillary parking at Hoag Health Center for Hoag Hospital
for an additional one year to facilitate completion of Hoag's construction of its Lower
Campus.
Project Setting
The project site is located at 500 -540 Superior Avenue, west of Newport Boulevard,
east of Superior Avenue, and north of Dana Road. The area in the vicinity of the site is
developed with a variety of land uses, including medical facilities, industrial and office
uses as well as residential development. The site is approximately 13.7 acres in size
and is developed with general office and R &D land uses. The site is currently improved
with four buildings totaling 415,493 square feet of floor area and a four - level, above -
grade parking structure. Demolition of one of the four buildings (86,079 sq. ft.) is
contemplated, which would leave a total of 329,414 square feet of useable gross floor of
medical office, general office, and R &D uses.
Background
In early 2001, the Planning Commission and City Council reviewed and approved Use
Permit No. 3679 and a traffic study for the construction of the Newport Technology
Center. The project consisted of demolition, reconstruction, and renovation of the former
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Hoag Health Center
January 17, 2008
Page 4
Raytheon Company facility, resulting in approximately 415,500 square -feet of R &D
space. The Use Permit also allowed the structures to exceed the base 32 -foot height
limit to the maximum 50 -foot height limit.
A year after project completion, a use permit amendment was approved by the Planning
Commission and City Council in 2004 to change the range of uses allowed to occupy
the Newport Technology Center to provide for additional leasing flexibility. The Use
Permit authorized 43 percent (178,661 gross square feet) of the project site to be
occupied by commercial office uses (except medical or dental office or clinics), with the
remaining 57 percent (236,831 gross square feet) occupied by industrial/R &D uses;
however, leasing of Newport Technology Center still proved unsuccessful.
Hoag Hospital purchased the site in 2006 in order to accommodate its medical office
needs in support of the hospital. On December 7, 2006, the Planning Commission
approved Use Permit No. 2006 -010 and adopted a Mitigated Negative Declaration
(SCH. No. 2006 - 101105) authorizing conversion of 97,000 square feet of the
R &D /general office use to medical office use. In order to satisfy the increased medical
parking requirements, an 86,079 square -foot building was proposed for demolition and
a parking structure was proposed to be constructed in its place. Demolition of this
building would have resulted in a reduced overall project gross floor area of 329,414
square feet. After the allocation of 97,000 square feet for medical office uses, the
remaining floor area allocation was approved as follows: 136,000 square feet for
general office use and 96,414 square feet for R &D use. The parking structure was also
permitted to exceed the maximum building bulk limitation for the site. On -site parking
was increased from 1,332 parking spaces to 1,985 parking spaces, including 697
spaces within the new parking structure.
The Use Permit authorized a shuttle service that consists of a 20- passenger van that
carries physicians and patients between Hoag Hospital and Hoag Health Center during
the hours of 7:00 a.m. to 7:00 p.m. The shuttle service was limited to two round -trips per
hour between the two facilities and was prohibited from traveling on local roads through
the residential areas. No ancillary parking is permitted at Hoag Health Center for Hoag
Hospital, except during an interim period (expired December of 2007) to facilitate
completion of Hoag's construction of its Lower Campus.
With the exception of the shuttle service and interim ancillary parking, the Use Permit
has not been exercised; however, plans to demolish the office building and construct
the new parking structure are currently under review by the City and building permits
are expected to be issued early this year.
Hoag Health Center
January 17, 2008
Page 5
DISCUSSION
Analysis
General Plan
The project site is located within the West Newport Mesa area of the Land Use Element
of the General Plan and is designated as CO -M (Medical Commercial Office). Within the
West Newport Mesa area, existing development is characterized by residential, office,
retail, industrial, and public uses. The CO -M land use designation is intended to provide
primarily for medical - related offices, other professional offices, retail, short-term
convalescent and long -term care facilities, research labs, and similar uses. The project
site, in particular, is allocated a development limitation of 350,000 square feet of floor
area (Anomaly No. 74).
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
Draft Environmental Impact Report on pages 4.1 -11 through 4.1 -18 and concludes that
the project is consistent with each of the adopted goals and policies. Land Use Goal 6.6
(LU 6.6) promotes medical service uses that support Hoag Hospital and facilitate
residential development in the West Newport Mesa area. Policy LU 6.6.1 (Hospital
Supporting Uses Integrated with Residential Neighborhoods) states:
LU 6.6.1: Prioritize the accommodation of medical - related and supporting facilities on
properties abutting the Hoag Hospital complex [areas designated as "CO -M
(0.5)° (Figure LU 18, Sub Area A)] with opportunities for new residential units
[areas designated as "RM (18 1ac)] and supporting general and neighborhood -
serving retail services (CG (0.75)" and "CN (0.3)], respectively.
This policy is applicable to the proposed project and indicates that future development
should be compatible with the future mix of land uses in the area and should also
complement and support the major medical activity (i.e., Hoag Hospital) in the area.
Project implementation is consistent with the policy as it results in the conversion of
existing general office and research & development floor area to medical office floor
area to support Hoag Hospital. Implementation of the project would not compromise the
character and /or integrity of the mixed uses with the West Newport area and is
consistent with the Land Use Element.
Parking
With completion of the second parking structure permitted under the previous use permit,
a total of 1,985 parking spaces will be provided onsite: 861 spaces within the existing
parking structure; 697 spaces within the new parking structure; and, 427 surface parking
spaces. Based on the Zoning Code requirements for medical office uses, a total of 1,750
parking spaces are required as shown in the following calculations:
Medical 1 350,000 1 1/200 sq.
235
1. The total parking count is anticipated to vary
mechanical, electrical, and structural components.
Hoag Health Center
January 17, 2008
Page 6
spaces
As shown, the project will provide parking in excess of the Zoning Code requirements.
Shuttle Operation
Of
The previously approved shuttle operation consisted of a single 20- passenger van that
provides transportation services for physicians and patients between Hoag Hospital and
the project site between the hours of 7:00 a.m. and 7:00 p.m. The shuttle service is limited
to two round -trips per hour between to the two facilities. The shuttle is prohibited from
traveling on local roads and through residential areas, and permitted only on the City's
arterial system (i.e. Newport Boulevard, Superior Avenue, Placentia Avenue, and Hospital
Road). The shuttle is to be used by physicians who have offices in Hoag Health Center, as
well as by patients visiting physicians at Hoag Health Center who require further medical
services such as lab work, x -rays, and medical tests to be provided at Hoag Hospital.
In order to further reduce the number of personal vehicle trips between Hoag Hospital and
the Hoag Health Center sites, the applicant is requesting to increase the frequency of the
shuttle trips to four round -trips per hour (i.e., every 15 minutes) and clarify that Hoag staff
(in addition to physicians) needing to attend meetings or perform other duties at either
Hoag Health Center or Hoag Hospital may also utilize the shuttle. Although this
proposal increases the frequency of the shuttle trips, none of the trips would occur on
the residential streets and would reduce personal vehicle trips between the hospital and
proposed health center facilities. LSA Associates has reviewed the potential effects the
proposed increase in shuttle trips may have and concluded that a significant reduction
in personal vehicle trips is expected and, therefore, a reduction in traffic- related air
quality and noise impacts is expected (Exhibit 4).
Ancillary Parking
The previously approved interim one -year parking provision permitting ancillary parking
to occur at Hoag Health Center for Hoag Hospital to facilitate completion of Hoag's
construction of its Lower Campus expired in December of 2007. The applicant states
that construction of the Lower Campus is still on -going and is requesting to extend the
arrangement for an additional year. Staff believes an additional year is appropriate
given the fact that the Hoag Health Center site is not yet fully occupied and a parking
surplus currently exists. Should the Planning Commission choose to extend this interim
provision, staff recommends that the following condition be implemented to insure
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Hoag Health Center
January 17, 2008
Page 7
adequate on -site parking is provided to serve tenant spaces within the Hoag Health
Center development:
No ancillary parking shall be permitted to occur at the project site for the use of Hoag
Hospital, except during the interim period, which concludes on December 7, 2009, to
facilitate the completion of Hoag Hospital's construction of the Lower Campus. Use
of the Hoag Health Center parking by Hoag Hospital personnel shall only be allowed
so long as the minimum Zoning Code required number of parking spaces to facilitate
the operation of on -site uses is provided.
Traffic Study
A traffic study is required pursuant to the Traffic Phasing Ordinance (TPO) when a
project will generate in excess of 300 average daily trips (ADT). A traffic study was
prepared by Kunzman Associates under the supervision of the City Traffic Engineer
pursuant to the TPO and its implementing guidelines. The traffic analysis also included
a cumulative impact analysis to assess project- related impacts pursuant to CEQA.
For the preparation of this traffic study, trip generation rates were derived from two
sources. The City of Newport Beach trip generation rates are based on the Newport
Beach Traffic Analysis Model (NBTAM)1 and were used for analysis of Newport Beach
intersections. The City of Costa Mesa trip generation rates are derived from the Institute
of Transportation Engineers (ITE), Trip Generation, 70 Edition (2003) 2 and were used
for evaluation of Costa Mesa intersections. The TPO analysis was required only for
primary intersections in the City of Newport Beach. For the purposes of studying the
cumulative impacts, the traffic study analyzed intersections in the City of Costa Mesa,
utilizing the ITE trip generation rates.
The project will generate 12,743 additional trips per day based on the NBTAM trip
generation rates, including 449 additional a.m. peak hour trips and 1,084 p.m. peak
hour trips. Based on the ITE trip generation rates utilized to analyze impacts at
intersections in the City of Costa Mesa, a total of 8,758 additional trips are anticipated
as a result of project implementation, including 297 additional a.m. peak hour trips and
779 trips during the p.m. peak hour.
Based on consultation between the Cities of Newport Beach and Costa Mesa staff, the
following 32 intersections were evaluated:
At the time the traffic study was prepared, the TPO required the use of NBTAM trip generation rates for
the analysis of Newport Beach intersections; however, on July 24, 2007, the City Council adopted
Ordinance No. 2007 -12 amending the TPO to delete references to NBTAM and made the Institute of
Transportation Engineers' Trip Generation the primary source for calculating trip generation rates in the
City.
2 The ITE trip generation manual is based on hundreds of trip generation surveys nationwide for a range
of land use types. It is the most commonly accepted data source for trip generation rates, including the
County of Orange and the City of Costa Mesa, and recently determined to be the most appropriate
source of inputs for traffic studies prepared for the City of Newport Beach.
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Hoag Health Center
January 17, 2008
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TPO Analysis- Potential impacts to the 14 intersections in the City of Newport Beach
were analyzed using the one percent methodology required by the TPO. The one
percent methodology provides that if any leg of any of the 14 evaluated intersections
experience a peak hour traffic volume increase larger than one percent, additional
analysis is required utilizing the Intersection Capacity Utilization (ICU) methodology.
ICU values are calculated based on the volume of traffic using the intersection
compared to the capacity of the intersection. A Level of Service (LOS) rating (A through
F) is then assigned to the intersection based on the ICU value. The City of Newport
Beach considers LOS A through D to be operating at acceptable levels, while LOS E
and F are considered to be operating at unacceptable levels. According to the City's
established significance threshold criteria, a significant impact would occur if project -
generated traffic would cause an intersection to deteriorate from LOS D or better to LOS
E or F. For intersections operating at LOS E or F under existing conditions, a significant
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Hoag Health Center
January 17, 2008
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impact would occur if project - generated traffic would increase the ICU value by 0.01 or
more.
Based on the TPO ICU /LOS analysis, all 14 study intersections will continue to operate
at acceptable levels of service during both the a.m. and p.m. peak hours. Therefore,
pursuant to the TPO, no mitigation is required.
Cumulative Traffic Analysis- The cumulative analysis reflects the future (2009)
development scenario that includes development of `cumulative" projects identified by
the Cities of Newport Beach and Costa Mesa as well as the proposed project.
Reasonably foreseeable projects and approved projects that are not included in the
committed project list were added to project - related traffic and evaluated. The analysis of
Newport Beach intersections using NBTAM rates showed that all of the intersections will
continue to operate at acceptable levels of service. The analysis indicates that 2
intersections in the City of Costa Mesa, using the ITE trip rates, are currently forecast to
operate at an unacceptable level of service (LOS E) in the 2009 with approved projects
and cumulative projects. The intersections are:
-Superior Avenue /17th Street (LOS F during the a.m. and LOS E during p.m. peak
hours)
-Newport Boulevard /18th Street - Rochester Street (LOSE during the p.m. peak hour)
As indicated in the table below, when the project - related traffic is added to the future
traffic scenario for 2009, the project- generated traffic results in an ICU value increase of
0.01 or more at the same two intersections forecasted to operate at unacceptable levels
without the project.
The degradation of the 2 intersections with the project - related traffic will result in a
significant impact at the two intersections. The following mitigation measures prescribed
for the proposed project would reduce ICU values to levels that are less than pre - project
ICU values, reducing potential project - related traffic impacts at these intersections to a
less than significant level:
MM 4.2 -1 Prior to the issuance of a certificate of occupancy for a medical office tenant improvement
permit which would cause the site to exceed 155,000 square feet of medical office floor area, the
project applicant shall be required to restripe to provide a westbound left turn lane, shared
lefbthrough lane, through lane, and right turn lane at the Superior Avenua/1 J"' Street intersection.
This improvement would require modification to the traffic signal phasing and interconnect with the
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Hoag Health Center
January 17, 2008
Page 10
Newport Boulevard/i70' Street intersection. The applicant shall work in conjunction with the City of
Costa Mesa to complete this improvement.
MM4.2 -2 Prior to the issuance of a certificate of occupancy for a medical office tenant improvement
permit which would cause the site to exceed 285,000 square feet of medical office floor area, the
project applicant shall pay a fair share fee to the City of Costa Mesa through the City's established
fee program, provided that the City has established a mechanism to accept a fair share fee, to
provide a southbound throughAight turn lane at the Newport Boulevard/18"' Street - Rochester Street
intersection. The southbound improvement would require right-of-way acquisition. The applicant
shall not be subject to the fair share fee if the City of Costa Mesa has not adopted a mechanism for
collecting the fair share fee prior to buildout of the project (i.e., 350,000 square feet).
As discussed in more detail within the Environmental Review section of this report, the
City of Costa Mesa does not currently have a mechanism for accepting the fair share
fee contribution from the project applicant to pay for the Newport Boulevard /18th Street -
Rochester St. improvements; therefore, implementation of the mitigation measure to the
impact cannot be assured and is considered legally infeasible. The impacts to that
intersection will remain significant and unavoidable and will necessitate the adoption of
a Statement of Overriding Considerations finding that the benefits of the project
outweigh the impact prior to approving the project.
Traffic Signal
As part of the previously approved project ( 97,000 sq. ft. of medical office use), a traffic
signal warrant analysis was performed for a potential signalized intersection at Superior
Avenue and the main project driveway (central driveway). The analysis indicated that a
traffic signal was warranted due to project - related traffic volumes; however, project
access could function adequately without the signal. Additionally, since there is a lack of
available right -of -way precisely where the signal would be located, a condition of
approval was included requiring the applicant to post a 10 -year bond for the installation
of the traffic signal at the main project driveway and for roadway improvements
(medians, striping, planting) prior to the issuance of any permit for medical offices at the
site to allow the City to acquire the required right -of -way.
As a result of the increased traffic volumes associated with the currently proposed
project (350,000 sq. ft. of medical office use), it is anticipated that a signalized
intersection at Superior Avenue and the main project driveway will be required in order
to avoid on -site circulation and site access problems. The City Traffic Engineer has
determined that a traffic signal must be in place prior to issuance of a certificate of
occupancy for a medical office tenant improvement permit that would cause the site to
exceed 110,000 square feet of medical office floor area. The City will be responsible for
completing the traffic signal and street improvements upon acquisition of the right -of-
way and the applicant will be required to reimburse the City for all costs associated with
the improvements, including acquisition costs. Therefore, staff is recommending the
following conditions of approval:
• The applicant shall be responsible for all costs, expenses and fees for all roadway improvements
along Superior Avenue across the property frontage, as deemed necessary by the City. The
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January 17, 2008
Page 11
roadway improvements shah include, but not be limited to, the widening of Superior Avenue to the
ultimate width, construction of medians and landscaping, all signing and striping work, and the
installation of the traffic signal at the main project driveway (center driveway). The roadway
improvement costs shall include, but not be limited to, all design, construction, project
management, acquisition, relocation assistance and other costs, consultant fees, expert fees,
attorney fees, permit fees, and any litigation expenses related in any way thereto. Prior to the
issuance of building permits for any new medical office tenant improvement, the applicant shall
post a new 10 -year performance bond (or other form of security satisfactory to the City Attorney)
with the City to guarantee payment of all fees, costs and expenses identified in this condition. The
City will determine the bond amount by reasonably estimating the fees, costs and expenses
identified in this condition. if at any point it is determined that the bond amount is insufficient to
cover the actual or projected fees, costs, and expenses identified in this condition as determined
by the City, Hoag shall increase the bond amount accordingly.
• Prior to the issuance of a certificate of occupancy for a medical office tenant improvement permit
which would cause the site to exceed 110,000 square feet of medical office floor area, the
installation of the traffic signal at the main project driveway and the widening of Superior Avenue,
as referenced in Condition No. 40, shall have first been completed, and the traffic signal shall be
in full operation. Should the City be unable to complete the improvements within a reasonable
timeframe, the applicant may elect to complete the improvements per the approval and direction
of the Public Work's Department and shall reimburse the City for all costs and expenses
associated with such an arrangement.
Use Permit Findings
Section 20.91.075 of the Zoning Code requires that the Planning Commission make
certain findings for use permit requests. These findings and facts in support of such
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.
The project is located in the M -1 -A (Controlled Manufacturing) Zoning District, which
provides for a wide range of moderate to low intensity industrial uses and limited
accessory and ancillary commercial and office uses. Business and Professional Office
uses are permitted within the M -1 -A zone, with the exception that medical offices are
permitted with the approval of a use permit. Otherwise, there are no specific operational
criteria for medical office uses in the Zoning Code. Therefore, the proposed project is
consistent with this designation and complies with all development standards.
It should be noted that the City is currently in the process of updating the Zoning Code for
consistency with the recently adopted General Plan. The proposed zoning designation for
the site is OM (Office- Medical), which is intended to provide for medical- related offices,
other professional offices, retail, short-term convalescent and long -term care facilities.
Medical office uses are anticipated to be permitted by right within this new OM
designation; therefore, the project should not conflict with future zoning implementation.
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
IN
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January 17, 2008
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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.
The proposed medical office use, pursuant to the conditions of approval, is consistent
with the Medical Commercial Office (CO -M) land use designation of the General Plan
Land Use Element, which provides primarily for medical - related offices, other
professional offices, retail, short-term convalescent and long -term care facilities,
research labs, and similar uses. The proposed overall total gross floor area of the site is
consistent with the 350,000 square foot development limitation assigned for the site.
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:
• The 232,414 square feet of general office and R &D floor area to be converted to
medical office floor area will be limited to interior remodeling within the existing
building, with no changes to the exterior appearance.
The future addition of 20,586 square feet of floor area is conditioned to be limited
within a building envelope located between two parking structures with a height
not to exceed the 32 -foot base height limit. Given the location and height
limitation of the proposed building envelope in relationship to the existing
buildings on -site, the new building will be shielded from view from the residential
developments to the west and south, as well as any views from Newport
Boulevard.
• With the completion of the previously- approved parking structure, the site will
provide a total of 1,985 parking spaces on -site, exceeding the minimum code
requirement by 235 spaces, thereby providing sufficient parking to accommodate
the proposed project.
• The City Traffic Engineer has reviewed the proposed shuttle operation and has
approved a route and operation that will avoid travel on streets adjacent to
residences and convalescent homes.
• The increased frequency in the number of the shuttle trips per hour will serve to
reduce personal vehicle trips between the hospital and the proposed health
center facilities. The reduction of personal vehicle trips would have the effect of
further reducing potential traffic, noise and air quality impacts.
• The project has been conditioned to include installation of the traffic signal at the
main project driveway and completion of the related roadway improvements
(medians, striping, widening, planting) prior to the issuance of any occupancy
permit that results in the conversion equal to, or in excess of, 110,000 square
feet medical office floor area.
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• The project has been conditioned so as to control and reduce excess lighting and
to avoid off -site light spillage.
The traffic study has determined that ft
of project implementation will not result
traffic circulation in the City of Newport
vicinity of the project site.
increased traffic generated as a result
in significant impacts to intersections or
Beach, and more specifically, within the
All potential environmental impacts have been analyzed in the Initial Study and
Draft EIR (DEIR) and were found to be less than significant with the incorporation
of specific mitigation measures, with the exception of the long -term operational
emissions and traffic impact to the intersection of Newport Boulevard /18th Street -
Rochester Street in the City of Costa Mesa. As discussed in the Environmental
Review section of this report, 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.
• With the approval of the applications with conditions of approval (including all
mitigation measures) designed to minimize or avoid areas of concern, the use
can be found compatible with, and not detrimental to, the surrounding
neighborhood or City.
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 medical office uses. The
proposed conditions of approval and mitigation measures for this project will ensure that all
potential conflicts with surrounding land uses are minimized to the greatest extent
possible, or are eliminated.
ENVIRONMENTAL REVIEW
Prior to taking action on the requested Use Permit amendment and Traffic Study, the
Planning Commission must first review, consider and certify the Final Environmental
Impact Report (EIR).
The City contracted with Keeton Kreitzer Consulting to prepare an Initial Study and EIR for
the proposed project (Exhibit No. 5). The Initial Study was prepared in accordance with the
requirements of the California Environmental Quality Act (CEQA). Based upon the
analysis of the Initial Study, the following environmental topics were identified as
potentially affected by the implementation of the proposed project: Air Quality, Land Use
and Planning, Hazards and Hazardous Materials, Noise, Traffic/Circulation, and Utilities.
These topics were the subject of the EIR analysis, and potential impacts were identified;
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however, in those instances, specific mitigation measures have been included to reduce
the potentially significant adverse effects to a less than significant level, with the exception
of two impacts related to air quality and traffic that are discussed in the Unavoidable
Adverse Impacts discussion section below.
The Initial Study indicated that impacts related to Aesthetics and Cultural Resources will
be less than significant with mitigation. These topics were not discussed further in the EIR.
The issue areas identified to be affected at either a no impact or a less than significant
level are: Agricultural Resources, Biological Resources, Geology and Soils, Hydrology and
Water Quality, Mineral Resources, Population and Housing, Public Services, and
Recreation. These topics were not discussed further in the EIR.
Keeton Kreitzer Consulting prepared a DEIR (State Clearinghouse No. 2006101105) that
focused upon the environmental issues identified as "potentially affected." The DEIR was
completed and circulated for a mandatory 45 -day review period that began on September
11, 2007 and concluded on October 25, 2007, and was previously transmitted to the
Planning Commission. Comments were received from several interested parties, including
the City's Environmental Quality Affairs Committee, California Department of
Transportation (Caltrans) and the City of Costa Mesa. The consultant and staff have
prepared written responses to each of the comments received on the adequacy of the
DEIR. Subsequently, Caltrans and the City of Costa Mesa submitted follow -up comments,
for which responses have also been prepared and included in the Final Response to
Comments (Exhibit 6 & 7). An Errata was also prepared which provides minor clarifications
and correction to the DEIR (Exhibit 8).
Recirculated Partial Draft Environmental Impact Report (RPDEIR)
During the initial 45 -day public comment period for the DEIR, the California Department
of Transportation (Caltrans) made the following comment:
Comment No. 2 This project is anticipated to adversely impact intersection turning
pockets. It should be noted that demands at turning pockets are at or
reaching capacities. Please provide the storage length analysis for left
and right turn pockets at the intersections on Newport Boulevard and
PCH within the study area.
As a result of the comment, a new analysis was performed to determine queuing
impacts and the adequacy of the turning pockets within the Caltrans intersections within
the study area. Based on the new analysis, the vehicle storage length of the
northbound, left -tum pocket at the intersection of Newport Boulevard /Hospital Road was
determined to be deficient with the addition of project- related trips. A new mitigation
measure (MM 4.2 -3) has been prescribed to require the lengthening of the left turn
pocket to provide sufficient vehicle storage length and to ensure this impact can be
reduced to a level of less than significant.
As a result of this new significant information identified, a Recirculated Partial Draft
Environmental Impact Report (RPDEIR) was prepared to disclose the deficiency noted
r,
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January 17, 2008
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above (Exhibit 9). Pursuant to CEQA, the RPDEIR was recirculated for an additional
mandatory 45 -day public review period (began November 16, 2007 and concluded
December 31, 2007) to allow the public tin opportunity to comment on the new
information prior to the certification of the Final EIR. No comments were received on the
adequacy of the RPDEIR (although as previously stated, follow -up comments were
received in regards to the City's Response to Comments).
Alternatives
The DEIR discusses project altematives as required pursuant to CEQA. These
alternatives include a No Project Alternative (slower build -out of the site under the existing
General Plan), a No Development Alternative (allowing for redevelopment of the site in
accordance with the previous approval of Use Permit No. 2006 -010), Reduced Intensity
Alternative (resulting in the conversion of the remaining existing floor area to medical office
without the additional 20,586 square feet of floor area requested by the applicant), and
Non - Medical Office Alternative (assuming the remaining 232,414 square feet of office and
R &D floor area are fully converted to general office use only). Although in some cases the
alternatives are considered to have reduced impacts and considered environmentally
superior, neither of the alternatives were found to achieve several of the project's
objectives related to providing adequate health care services. The project objectives are
identified in Section 1.1.4 of the DEIR (page 1 -2).
Unavoidable Adverse Impacts
As previously stated, 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 two impacts:
Impact 4.3 -1 Project implementation will result in pollutant emissions from both
mobile and stationary sources that would exceed the South Coast Air Quality
Management District significance thresholds for CO, ROC, NO., and PM10, in
both winter and summer months.
Because the responsibility for the control of pollutant emissions associated with mobile
sources lies with State and federal agencies, no mitigation measures are available to
reduce the potentially significant mobile- source emissions to a less than significant
level. Therefore, these project - related emissions impacts remain a significant
unavoidable adverse impact.
Impact 4.2 -3 Project implementation will result in significant cumulative impacts
to the Newport Boulevard /18th Street- Rochester Street intersection, which is
forecast to operate at a LOS E (ICU 0.941) during the p.m. peak hour with
addition of project - related traffic.
As previously indicated in the Traffic Study discussion, because the City of Costa Mesa
does not currently have a mechanism for accepting the fair share fee contribution from the
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January 17, 2008
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project applicant for the Newport Boulevard /1 eh Street - Rochester Street improvements,
implementation of the requisite mitigation measure to address that impact cannot be
assured and is, therefore, considered legally infeasible. As a result, the project - related
cumulative impact identified for the Newport Boulevard /18`h Street - Rochester Street
intersection will remain significant and unavoidable. If the City of Costa Mesa subsequently
establishes a mechanism to accept a fair share fee for the necessary improvements within
the time specified by Mitigation Measure No. 4.4 -2, the applicant will be required to pay
fees in accordance with the mitigation measure.
If the Planning Commission believes the benefits of the project outweigh the two
unavoidable adverse environmental impacts, the preparation of a Statement of Overriding
Considerations is required in order to approve the project. A draft Statement of Overriding
Considerations has been prepared for the Planning Commission that identifies a number
of economic and social benefits of the project related to the growing demand and need for
medical office space and out - patient care facilities in the City of Newport Beach and in the
County of Orange (Attached as Exhibit B of Draft Resolution Certifying the EIR; Exhibit 1).
SUMMARY
Proposed conversion of the site for full medical office use is reasonable use of the site and
should provide for medical services and support for Hoag Hospital. The project is
consistent with the long -range goals and policies of the General Plan, and will result in no
adverse environmental impacts that cannot be mitigated, with the exception of two impacts
that necessitate the adoption of a Statement of Overriding Considerations. Therefore, staff
recommends that the Planning Commission certify the Environmental Impact Report, and
approve the requested applications.
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.
Alternatives
1. If the Planning Commission determines that not all the facts in support of the
findings can be made, the Planning Commission should direct staff to prepare
findings and a resolution denying the request and return at the next Planning
Commission meeting date with such resolution for adoption.
2. The Planning Commission may suggest specific modifications to the project
determined to be needed in order to make required findings for approval. If this is
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January 17, 2008
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done, the item should be continued if the changes are reasonable and easy to
incorporate.
3. If the Planning Commission finds there is insufficient information regarding the
additional 20,586 square feet of floor area requested in order to make required
findings for approval, the Planning Commission may deny that portion of the
request and only approve the conversion of the 232,414 square feet of general
office and R &D floor area to medical office use. The applicant would then be
required to apply for a subsequent use permit amendment once precise plans for
the construction of the additional floor area are prepared.
Prepared by:
J Mme Murillo, Associate Planner
Submitted by:
David repo, P nning Director
EXHIBITS
1. Draft Resolution of Certification
2. Draft Resolution of Approval
3. Project Plans
4. Shuttle Analysis
5. Draft EIR (distributed separately due to bulk)
6. Response to Comments on DEIR; November 2007
7. Response to Comments on RPDEIR; January 2008
8. Errata
9. Recirculated Partial Draft EIR
F. AUsemWLMShamcftPA 's1PAs- 20071PA2007- 0131Pianning CommissionlPC1_17 20081PA2007- 013PCrptFina1011708.doc
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