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HomeMy WebLinkAbout1.0_Draft Minutes_08-04-20111NEWPORT BEACH PLANNING COMMISSION MINUTES Council Chambers — 3300 Newport Boulevard Thursday, August 4, 2011 REGULAR MEETING 4:00 p.m. A. CALL TO ORDER - The meeting was called to order at 4:00 p.m. B. PLEDGE OF ALLEGIANCE — Led by Commissioner Hillgren. C. ROLL CALL PRESENT: Ameri, Hawkins, Hillgren, Kramer, Myers, Toerge, Unsworth ABSENT (EXCUSED): None. Staff Present: Kimberly Brandt, Community Development Director, James Campbell, Principal Planner, Gregg Ramirez, Senior Planner, Leonia Mulvihill, Assistant City Attorney, Tony Brine, City Traffic Engineer, Rosalinh Ung, Associate Planner, and Marlene Burns, Administrative Assistant D. PUBLIC COMMENTS Barbara Peters, resident, spoke regarding the remodel plan at 3002 Breakers Drive and in opposition to the City's current position on this matter. Community Development Director Kimberly Brandt offered to provide an in -depth report to the Commission regarding the project at 3002 Breakers Drive. E. REQUEST FOR CONTINUANCES — None. F. CONSENT ITEMS ITEM NO. 1 Minutes of July 21, 2011 Motion made by Commissioner Hawkins and seconded by Commissioner Ameri, and carried (4 — 0, 3 abstentions) to approve the minutes, as corrected. AYES: Ameri, Hawkins, Kramer, and Unsworth NOES: None. ABSENT(EXCUSED): None. ABSTAIN: Hillgren, Myers, and Toerge G. PUBLIC HEARING ITEMS For the record, Chair Unsworth recused himself from participation in Public Hearing Items No. 2 and No. 3, citing his membership in the Newport Beach Country Club. Commissioner Myers recused himself from participation in Items No. 2 and No. 3, citing his economic interest in the Golf Realty Fund. They both left the dais and the Chamber for the remainder of both items. Page 1 of 10 NEWPORT BEACH PLANNING COMMISSION MINUTES 08/04/2011 Vice Chair Toerge presided over the meeting and outlined the procedures for the consideration of Items No. 2 and No. 3. ITEM NO.2 Newport Beach Country Club — Golf Realty Fund (PA2005 -140) 1600 & 1602 E. Coast Highway Golf Realty Fund, the land owner, proposes a Planned Community Development Plan (PCDP) for the redevelopment of the existing private golf course clubhouse, parking lot, and tennis club. Additionally, the PCDP provides for five (5) single -unit residential dwellings, Villas, and 27 short- term lodging units, Bungalows. ITEM NO. 3 Newport Beach Country Club — International Bay Clubs (PA2008 -152) 1600 E. Coast Highway The International Bay Clubs, Inc. (IBC) operates the Newport Beach Country Club clubhouse and golf course and leases the property from Golf Realty Fund, the property owner. As a long- term lease holder, IBC, herein after referred to as Newport Beach Country Club (NBCC), proposes to redevelop the existing golf clubhouse. A staff report was presented by Rosalinh Ung, Associate Planner. A PowerPoint Presentation was displayed. Ms. Ung outlined the three (3) options recommended by staff. Vice Chair Toerge opened the public hearing on Item No. 2. Robert O Hill, applicant, representing Golf Realty Fund, displayed a PowerPoint Presentation which detailed the history of the subject property. He noted the thirteen (13) years of various iterations of development at the project site, concluding with the description of the current proposed PCDP, including residential properties, hotel bungalows, landscaping buffers, renovation of the tennis clubhouse and stadium, impacts of the project on the existing golf course, spa and fitness center, dining areas, banquet facilities, outside design elements, and parking availability. Vice Chair Toerge requested Commissioners announce any ex parte communications with Mr. O Hill and /or the NBCC applicants. Commissioner Hillgren stated he met with both applicants and toured both properties. Commissioner Ameri announced he had toured the project sites and met with the NBCC representatives and the Marriott. Commissioner Hawkins announced he had toured the project sites and met with Mr. O Hill, the NBCC representatives, and spoke with a representative of the Marriott. Commissioner Kramer announced he had visited the site several times and met with the lessee (NBCC). Vice Chair Toerge announced he had met with Mr. O Hill, Mr. Wooten and the NBCC team, and has had conversations with representatives of the Marriott. Page 2 of 10 NEWPORT BEACH PLANNING COMMISSION MINUTES 08/04/2011 Commissioner Hillgren also noted that he had conversations with representatives with the Marriott. He disclosed that his family has a membership in the Balboa Bay Club, and based upon his discussions with the Assistant City Attorney, it was determined that there was no conflict of interest in his participation in Items No. 2 and 3. Mr. O Hill disclosed and distributed documents that detail that the easement on the property has been terminated. He also noted that he is not in opposition of NBCC's proposed larger clubhouse; however, he is objecting to the proposed public use of the clubhouse, which is not consistent with the General Plan and will also create negative impacts for a private equity club use. Mr. O Hill stated that he is not in objection if the proposed larger clubhouse retains the same type of use and is in support of a condition of approval in this regard. Mr. O Hill also stated that none of the hotel units will be lock -off units, which would increase the number of units. Mr. O Hill stated that, in general, he is support of the proposed PC text. He also noted that Golf Realty Fund is the managing or lease fee owner. He detailed various aspects of the lease agreement with NBCC. Mr. O Hill disclosed that two of the tenants in common of the property have an alternative concept for the property, the group met in mediation and determined a price for buyout. In closing, he stated that a date is still to be set for the buyout. Tim Paone, Counsel for the applicant, noted that the General Plan states the rules on the transfer of development rights and that the Marriott is not claiming vested rights in the property. Mr. O Hill noted that the easement is owned by the property owner, and that Golf Realty Fund pays a pro rata share to the Irvine Company for maintenance of the parking lot. He also detailed the revenue studies that were conducted as related to the bungalow hotel units. Mr. O Hill has not yet determined the specific hotel operator for the project; however, he has several viable parties interested in the hotel operations contract. Mr. O Hill stated that his architect has not designed a golf clubhouse; however, he has designed hospitality suites. Mr. Paone, Counsel for the applicant, stated that the General Plan controls as related to the matter relative to the Marriott and the Zoning Code cannot be inconsistent with the General Plan. Mr. O Hill identified his architect as Leland Stearns, who was in attendance during the public hearing. Mr. O Hill stated that he is not in objection of a larger clubhouse; however, he would be in support of a condition of approval for the larger size that would restrict the use to private, equity Club owners only. Assistant City Attorney Leonie Mulvihill stated that staff is confident that the applications were filed properly under the prior Zoning Code; however, a condition of approval will be included that all ownership interests must sign prior to moving to the building permit stage. Ms. Mulvihill noted that it is the City's position that Marriott is not a required signer to the transfer of development intensities. Page 3 of 10 NEWPORT BEACH PLANNING COMMISSION MINUTES 08/04/2011 Community Development Director Kimberly Brandt noted that there is ability within the Newport Center statistical area to transfer development intensities between different anomaly areas. If there is an unbuilt entitlement, which is vested, it would require the signature of the entity who retains the vested entitlement. Vice Chair Toerge opened the public hearing Paul Christ, resident, expressed that in the past there have been noise impacts related to the adjacent marriage lawn and banquet facility. He also stated concern regarding the reduction of the number of tennis courts and recommended fourteen (14) to twenty -one (21) courts. Elliot Feuerstein, owner and managing member of Mira Mesa Shopping Center West and Mesa Shopping Center East, who, along with Irving Chase, retain fifty (50 %) percent ownership of the Newport Beach Country Club and Tennis Club properties, noted that he supports the NBCC plans for the Country Club. He stated that he is not in favor of the Golf Realty Fund's plans and that he has not authorized them to submit plans for development on this property. Mr. Feuerstein commented that it is not the proper role of Golf Realty Fund to submit a competing plan on the property that NBCC rents from them for the next fifty -six (56) years. He expressed support for the access easement for Armstrong Nursery. He mentioned that he had spoken to Mr. O Hill regarding their opposition to the tennis club development and that Golf Realty Fund's plans are economically unfeasible. Irving Chase, manager of the Feuerstein Trust, strongly endorsed the NBCC plan for the new clubhouse and parking facility for the Country Club. He expressed concerns that the proposed project by Golf Realty Fund could not be built, even if approved by the Planning Commission and City Council and that the proposal is not financially feasible. In closing, Mr. Chase stated that they would be in favor of a residential project with public tennis courts, or some public -use element. Marisa Wayne, Tennis Club member, requested that the Commission not delay in having the members get new courts and clubhouse. Carol McDermott, Government Solutions, representing Marriott, spoke regarding the transfer of property rights between anomalies. They disagree with staffs opinion regarding the property rights on this property and believe that Marriott has a clear understanding that they retain the rights to the six hundred and eleven (611) units. Ms. McDermott suggested that the Community Development Director utilize her discretion to impose a condition requiring Golf Realty Fund to gain Marriott's sign -off and distributed documentation to this effect. She further requested that the condition be attached to the Tentative Map and that Marriott would like to find a solution to the removal of valuable property rights which have long been connected to the Marriott. Ms. McDermott stated that Marriott, as a result of the original approval, had a vested right even if not part of a development agreement. She stated that had they known there was going to be such a need, they would have filed a Development Agreement to protect their vested rights. Ms. McDermott commented that the six hundred and eleven (611) units were approved over two (2) separate approval processes, and that currently, even with the 2004 remodel, all but seventy -nine (79) hotel rooms are constructed. She stated that Marriott does not have current plans to build out the seventy -nine (79) units. Page 4 of 10 NEWPORT BEACH PLANNING COMMISSION MINUTES 08/04/2011 Assistant City Attorney Mulvihill stated that staff disagreed that the six hundred and eleven (611) units, just by their inclusion in a Land Use table of the General Plan, creates a vested right in the owner of the property located within Anomaly 43 and that this has been discussed with Ms. McDermott. The 2004 remodel was not a substantial conformance finding; rather, it was a minor change. The units are available for those who are going to pursue development by way of a Development Agreement, and, until then, they are up for use in the Newport Center statistical area. Ms. McDermott stated that Marriott is open to sharing the units since they are not being used and noted that there is no projected use. However, she commented on the value of the entitlements and Marriott's interest into entering into a compensatory agreement with Golf Realty Fund. Shawna Schaffner, on behalf of Newport Beach Country Club, stated her objection to Golf Realty Fund's plan for the golf course clubhouse, due to the long -term lease over the property. She expressed concern regarding the potential for the proposed bungalows to encroach over the lease -hold and suggested that staff require the bungalow position to be revised and the set- back be appropriate to avoid the lease -hold boundary. Ms. Schaffner noted that the buildings do not encroach over the lease -hold property, rather, the landscape is what encroaches (pursuant to information provided by Mr. Doug Lee, architect for Newport Beach Country Club). Seeing that there were no further speakers to provide public testimony, Vice Chair Toerge closed the public hearing on Item No. 2. Motion (Item No. 2) made by Commissioner Hawkins and seconded by Commissioner Hillgren, and carried (5 — 0, 2 recusals) to table Item No. 2 to a later time in the meeting. AYES: Ameri, Hawkins, Hillgren, Kramer, and Toerge NOES: None. ABSENT (RECUSED): Myers and Unsworth ABSTAIN: None. Vice Chair Toerge opened the public hearing on Item No. 3 David Wooten, CEO of the Newport Beach Country Club, provided a historical picture of the Country Club, its membership, tournaments, and reiterated that they will continue the current business plan. With the development of the clubhouse, they are looking to increase the tournament activity which will provide a valuable resource to the community. It is also home to the Corona del Mar High School Boys and Girls Golf Teams. The clubhouse is over 50 years old, and needs refurbishment, and its small size does not fit the current business model. The ballroom is less that 10% of the proposed increase, and the biggest increase is in the locker room and the kitchen. Mr. Wooten spoke regarding the steps for designing the clubhouse and would like to start right after the Toshiba Tournament in 2013, with the soonest start date being late March 2013, assuming they have obtained the necessary approvals from the City and the Coastal Commission. During construction, amenities will be available to existing members. Mr. Wooten stated that the Irvine Company has approved the project. Page 5 of 10 NEWPORT BEACH PLANNING COMMISSION MINUTES 08/04/2011 Mr. Wooten stated that the banquet room seats approximately one hundred twenty (120) to one hundred thirty (130) guests and spoke regarding the larger number of people who need to be served dinner during the tournaments. Doug Lee, architect for the proposed development at the Newport Beach Country Club, presented a PowerPoint Presentation outlaying the details of the upgraded clubhouse. He spoke regarding the parking elements, ocean view opportunities, noise impacts, and stated that the existing property does not provide enough space for their current and future needs. Mr. Lee stated that the design of the porte - cochere was to create an impressive entry into a world -class development. He stated he would be open to changing the proposed entry; however, he noted in his professional opinion that it was not a large structure. Shawna Schaffner, CAA Planning, stated the comparison seating for other similar banquet facilities and that their proposed plan is only thirty (30) seats above the number of seats Mr. O Hill is proposing. Mr. Lee stated that there are guidelines for the slope on development projects and that they have been accommodated and met. He mentioned their concern regarding the visual impact of the parking lot and would prefer the sunken parking lot design. In closing, he stated that the pad level of the proposed project would be two (2) feet higher than the current level, and the second story would be fifteen (15) feet above that to achieve an ocean view. Commissioner Hillgren agreed with the porte - cochere concept; however, he finds the ingress choppy and suggested that the porte - cochere should be located at the end of a direct entrance to the location. Mr. Lee stated that most clubs do not want to mix the banquet facility with the member's entry; however, they would be open to reviewing the porte- cochere and make entrance to the development more direct. Commissioner Hillgren expressed concern related to the Prairie design concept. Commissioner Ameri stated that the frontage road, from the physical aspect, unless absolutely necessary for access to Armstrong Nursery, should be eliminated altogether. He expressed concern that access to the frontage road as it exists today is dangerous and would rather see a direct entry into the project. Mr. Lee stated that there would be no signs on the building; however, there is a placeholder on the corner of the property for a monument with low, understated signage. Shawna Schaffner CAA Planning, support staff's recommendation to continue this matter to October and is in support the alternative PC text that staff has developed with a few minor modifications. Mr. Wooten clarified that he is the President of the NBCC and has not provided any input or comment to Mr. O Hill, as Mr. O Hill had stated earlier in the public hearing. Given unanimous consent from the remaining members of the Commission to take a fifteen (15) minute break. The Commission recessed at 7:12 p.m. Page 6 of 10 NEWPORT BEACH PLANNING COMMISSION MINUTES The Commission reconvened at 7:28 p.m. 08/04/2011 Tim Paone provided comments on NBCC's proposal. They have no objections to the Monday tournaments, member and their guest's events, charity events, or the Toshiba tournaments. Their main concern is with the public use of the facility. In addition, Mr. Paone expressed concerns with that the clubhouse was created independently from the Planned Community concept and that he would prefer a classic arrival entrance to a world -class resort. He expressed interest in working with NBCC, as their primary concern is the public use of the facility, not the size or the design. Mr. Paone expressed concern regarding the nine (9) weeks of import of fill materials. Commissioner Ameri stated that the final implementation of the General Plan and Zoning Code issue must be answered prior to entering into a final Development Agreement. Mr. Paone stated that they do not believe that public use is allowable under the lease and those issues should be sorted out privately. Dan Purcell, resident, stated his agreement with Mr. Paone, and that the alternate plan is likely driven by the desire for public events. Mr. O Hill stated that the elevation of the NBCC proposed clubhouse is two (2) feet above the existing clubhouse; however, because the land is sloping, in certain areas it is twelve (12) to fourteen (14) feet higher than the existing clubhouse. Seeing no speakers to provide further public comment, Vice Chair Toerge closed the public hearing. Shawna Schaffner, CAA Planning, stated that the General Plan allows for the golf course and clubhouse and requested staff to come to an understanding of this. She stated that the hedge can be reduced on the perimeter fence, so that views can go through to the parking lot. Landscaping can also be layered in this area, and if the frontage road is retained, the landscaping can be viewed from Coast Highway. In closing, she stated that all on -going events have been fully disclosed in the required CEQA documents, and that the import of fill materials will only take twenty -seven (27) days as stated in the development documents. Motion (Item No. 3) made by Commissioner Hawkins and seconded by Commissioner Hillgren, and carried (5 — 0, 2 recusals) to table Item No. 3. AYES: Ameri, Hawkins, Hillgren, Kramer, and Toerge NOES: None. ABSENT (RECUSED): Myers and Unsworth ABSTAIN: None. Vice Chair Toerge reopened the public hearing for Item No. 2, for the purpose of allowing rebuttal arguments. Mr. Paone stated for the record his concerns regarding the potential for staff to interpret the Ordinance that any entity with an interest in a piece of real property can object and stop it from being built. He stated this means that any partner in a business relationship can intervene, even Page 7 of 10 NEWPORT BEACH PLANNING COMMISSION MINUTES 08/04/2011 where there is a document showing that they have granted the authority solely to another individual to represent the entity in obtaining permits and submit applications, and this would create a barrier to development in the City. Mr. Paone stated that a General Plan Amendment could accomplish what the Marriott is trying to achieve with the transfer of development rights sign -off process. In closing, he commented on the proper process for encroachments, and the requirement of the developer to adhere to the building permit requirements. Commissioner Hawkins expressed concerns related to the partnership issue and would object to a condition that would require signature or consent of all partners. He requested that Mr. Paone provide evidence that the owners have delegated that responsibility to a single owner. Vice Chair Toerge closed the public hearing. Commissioner Hawkins stated that consideration of these projects was difficult, and expressed hope that within the sixty (60) days, all parties can return with a unified plan that addresses all concerns and does not have impact on the tennis court site. Commissioner Ameri expressed his concerns regarding the signage identity of the project; however, he was in agreement with Mr. Paone regarding the Planned Community Development. He stated his support for a unified entry from Coast Highway for the entire project, and recommended to NBCC to revisit the circulation and the aesthetics of the project from the perspective of Coast Highway. Commissioner Hillgren expressed support for developing world -class units. He expressed concern regarding the parking lot issue and suggested landscaping as a way to mitigate the view of the parking lots from the proposed units. In closing, he recommended reconciliation of the projects by potential relocation of certain development elements or limits to the hours of operation of certain features between the club community and the residential /hotel section. Motion (Item No. 2) made by Commissioner Hawkins and seconded by Commissioner Hillgren and carried (5 — 0, 2 recusals) to continue this item to October 20, 2011. Vice Chair Toerge requested that Golf Realty Fund provide documentation regarding ownership and the authority to move forward on development at the proposed site. AYES: Ameri, Hawkins, Hillgren, Kramer, and Toerge NOES: None. ABSENT (RECUSED): Myers and Unsworth ABSTAIN: None. Vice Chair Toerge reopened the public hearing on Item No. 3. Vice Chair Toerge requested clarification as to the ownership of the easement and to NBCC's objection in removing it. He suggested that NBCC consider reorienting the landscape and asked staff to clarify the rights of a use in this particular zone to conduct activities such as banquets that are open to the public. He inquired whether the rights would change if the Commission approves a new use. Vice Chair Toerge requested additional information as to the relative differences in heights of the projects and how the height of the proposed building compares to the existing structure. In closing, he stated that access to the entire development should be logical as related to the primary access points. Page 8 of 10 NEWPORT BEACH PLANNING COMMISSION MINUTES 08/04/2011 Commissioner Hawkins requested additional information on the heights of the proposed project and expressed concerns regarding grading, the banquet room size, and that the NBCC applicant needs to apply further consideration in terms of standards in the banquet industry. He also stated that in regard to page four (4) of the parking study submitted for NBCC's project, there is no similarly sized parking plan in the City, suggesting that there may be an inaccuracy in the report. Commissioner Hawkins requested clarification on the parking plan. Commissioner Kramer noted that NBCC has the right to build and is requiring a certain size for their facility. He stated that parking is not a concern due to the reciprocal agreements in place, and that the banquet room size is acceptable. He expressed concerns with the Prairie style and requested the addition of Craftsman -style elements to the design. Commissioner Kramer stated that the proposed fence may create an exclusivity to the project that may not be necessary, and that a hedge or landscaping could be used to mitigate this need for the project. He stated that the parking lot should be oriented in the direction of the guest's or resident's destination and that NBCC has the preferred design. Commissioner Kramer suggested the elimination of the easement. He stated that he has no issue with the building size, although he recommended that the porte- cochere should be redesigned because of the impact on the lessor's future development. In closing he noted that staff should provide resolution and clarification related to the use issues. Commissioner Hillgren stated that clarification should be given to the easement ownership matter and who has the authority rights to make determinations. He further stated that the Commission is only opining on land use issues. He is supportive of the parking plan as stated, noting that the only issue may be during evening events; however, adjacent properties may be open to parking agreements. Commissioner Hillgren suggested potential removal of a few parking spaces in order to create a more aesthetically pleasing landscape and removal of the easement. He referenced the entrance to the Newport Center project and recommended that a fence may not be necessary for this proposed project. He encouraged the use of Americana Prairie design and encouraged both projects to move forward. In closing, Commissioner Hillgren stated that he would like to assist both projects in navigating through the Coastal Commission review and move forward as quickly as possible. He stated his preference to maximize the opportunity at this site for a world -class project. Community Development Director Brandt affirmed that staff has the appropriate direction to move forward in analyzing the concerns and comments raised during tonight's public hearings as related to Items No. 2 and 3. Vice Chair Toerge clarified that at the next Regular Commission meeting, the Commission will consider the creation of one PC text, and can approve one, both, or neither of the proposed plans. Community Development Director Brandt stated that the PC text would be applicable to both applications and would provide overarching standards for the subsequent site plan reviews. At that point in the process, the projects can take different paths. Motion (Item No. 3) made by Commissioner Hillgren and seconded by Commissioner Hawkins and carried (5 — 0, 2 recusals) to continue this item to October 20, 2011. AYES: Ameri, Hawkins, Hillgren, Kramer, and Toerge NOES: None. ABSENT (RECUSED): Myers and Unsworth ABSTAIN: None. Page 9 of 10 NEWPORT BEACH PLANNING COMMISSION MINUTES 08/04/2011 H. NEW BUSINESS — None. I. STAFF AND COMMISSIONER ITEMS ITEM NO. 5 Community Development Director's report. Community Development Director Brandt reported that the City Council will review the Mariner's Pointe Project at their August 9, 2011, Regular Meeting. Staff noted that the Whitacre residence project will be reviewed at a City Council meeting in September at the applicant's request. ITEM NO. 6 Announcements on matters that Commission members would like placed on a future agenda for discussion, action, or report. Community Development Director Brandt stated that staff would return at the next Regular Commission meeting with a report on 3002 Breakers Drive. ITEM NO. 7 Request for excused absences. None. ADJOURNMENT - The Planning Commission meeting adjourned at 8:11 p.m. Page 10 of 10