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HomeMy WebLinkAboutKoll Center Newport (PA2006-095) 4450 MacArthur BlvdCITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT Agenda Item No. 4 September 7, 2006 TO: PLANNING COMMISSION FROM: Rosalinh Ung, Associate Planner (949) 644 -3208 rung@city.newport-beach.ca.us SUBJECT: Koll Center Newport 4450 MacArthur Blvd. General Plan Amendment No. 2006 -003 Planned Community Development Amendment No. 2006 -001 (PA2006 -095) APPLICANT: The Koll Company REQUEST The Koll Company proposes to construct a 21,311 square foot, two -story office building over a subterranean parking garage on a 1.49 -acre site at 4450 MacArthur Boulevard. Additionally, the applicant proposes an amendment of the General Plan to increase the total gross floor area of general office in Sub -Area 1 -1 (Office Site A) of the Airport Area (Statistical Area L4) by 24,016 gross square feet; and an amendment to the Koll Center Newport Planned Community (PC -15) to allow the transfer of 24,016 gross square feet of unused retail, restaurant and office square footage from Office Site B to Office Site A. RECOMMENDATION Recommend approval of General Plan Amendment No. 2006 -003 and Planned Community Text Amendment No. 2006 -001 to the City Council by adopting the attached draft resolution. Koll Center Newport September 7, 2006 Page 3 DISCUSSION The basis upon which this project rests is the fact that there is unbuilt floor area identified by the Koll Center Planned Community that the 1988 and 2006 Land Use Elements do not recognize. Office Building Construction The applicant proposes to construct a two -story, 21,311 gross square foot office building to function as their new corporate headquarters. The proposed 40 foot high building is designed over a 17 -space subterranean parking garage. Once completed, the building would ultimately be situated on its own footprint lot of 22,200 square feet. The applicant would be required to obtain an approval of a parcel map or a lot line adjustment application for the subdivision. The landscaping and remaining surface parking would be located within the parking pool parcel for Office Site A. The building features a modern, contemporary architectural design which consists of glass and stone fascia and stucco wall elements (Exhibit 5). Background The proposed construction site is centrally located in Office Site A of the Koll Center Newport Planned Community. Office Site A is bounded by Von Karman Avenue to the east and south, MacArthur Boulevard to the west, and Birch Street to the north and has a total area of approximately 19 acres. The area proposed to be developed is approximately 1.49 acres in size and is a portion of a 17.17 -acre parcel that currently improved as a paved, common parking area for Office Area A, which is owned by the applicant. This area is specifically located at the southeast corner of MacArthur Boulevard and the entry driveway west of the Fairmont Hotel. Office Area B is located immediately adjacent to Office Area A, on the east side of Von Karman Avenue and is bounded by Birch Street to the northeast, Jamboree Road to the southeast, MacArthur Boulevard to the west and Von Karman Avenue to the northwest and is approximately 44 acres in size. The Koll Center Newport Planned Community was originally adopted in 1972. The intent of this Planned Community District was to provide a comprehensive zoning for the former Collins Radio property to facilitate the development of an office /industrial park. The Planned Community was to consist of a hotel with banquet and convention facilities, a small retail and service center, service stations, restaurants, bars and Koll Center Newport September 7, 2006 Page 4 theater /nightclubs, offices, industrial sites and a courthouse. The Koll Center has a total of nine development sites: Office Sites A through F, Industrial Site 1, Retail and Service Site 1 and the Court House. Each of the sites have specific allowable net floor area. The PC also has five (5) restaurant sites and a majority of them are located within Office Sites A and B. It should be noted that Restaurant Sites 1 through 5 are "floaters ", meaning that they do not have a specific location assigned within either office site. Since the PC Text adoption, there have been numerous amendments, and two of the amendments in the mid 1980's allowed the transfer of restaurant sites from Office Area A to B (Exhibit No. 4). Prior to the adoption of the 1988 Land Use Element, Office Site A had a total of 340,002 square feet of office square and a 30,000 square foot private club ". Office Site B permitted 965,216 square feet of office, 10,000 square feet of retail, and 19,000 square feet for restaurant development. The following chart shows the current maximum net floor area authorized by PC Text for Office Site A, existing floor area derived from a combination of building plans and permits and remaining square footage for each category: 'Reserved for Steadfast The following chart shows the current maximum net floor area authorized by PC Text for Office Site B, existing floor area derived from a combination of building plans and permits and remaining square footage for each category: Maximum Allowed I Existing Remaining Office 1342,131 1340,506 1-1,625 Private Club 145,000 42,029 12,971 'Reserved for Steadfast The following chart shows the current maximum net floor area authorized by PC Text for Office Site B, existing floor area derived from a combination of building plans and permits and remaining square footage for each category: As demonstrated above, Office Site A has utilized the maximum allowable floor area of the PC Text with exception that the remaining floor area of 1,625 square feet recently permitted for Steadfast Investment Properties for their office expansion (2006). Office Site B has a remaining unused balance of 24,016 square feet for office, retail and restaurant development. This unused square footage within the PC Text, however, was 1 The General Plan also authorizes a 471 room hotel within Office Site A. Maximum Allowed Existing Remainin Office 965,216 960,735 4,481 Retail Site 2 10,000 0 10,000 Restaurant Site 2 5,000 2,397 2,603 Restaurant Site 4 7,000 7,068 -68 Restaurant Site 5 7,000 0 7,000 Total: 24,016 As demonstrated above, Office Site A has utilized the maximum allowable floor area of the PC Text with exception that the remaining floor area of 1,625 square feet recently permitted for Steadfast Investment Properties for their office expansion (2006). Office Site B has a remaining unused balance of 24,016 square feet for office, retail and restaurant development. This unused square footage within the PC Text, however, was 1 The General Plan also authorizes a 471 room hotel within Office Site A. Koll Center Newport September 7, 2006 Page 5 not recognized by the 1988 Land Use Element due to the fact that there was no projected growth allowed for Office Area B. The estimated growth table within the 1988 Land Use Element shows that the existing building area in 1988 equals the maximum allowed and zero growth in floor area. The 1988 Land Use Element should have been consistent with the PC Text. A recent review of all existing building permits for Statistical Area L4, including Koll Center Newport Office Site B, revealed that the overall building gross floor area of this Sub -Area is approximately 1,060,146 square feet, which includes the 1,750 gross square feet permitted for the Master Development Corporation in 2005. Presently, Office Site B has a general plan projection of 1,062,648 gross square feet also including a projected growth of 1,750 square feet for Master Development Corporation. The difference between the maximum allowable floor area indicated in the 1988 Land Use Element for Office Site B and the existing overall building gross floor area of this site is 2,502 gross square feet. As with Office Site A, the 1988 Land Use Element also had existing floor area equal to the maximum allowed with zero project growth in floor area. Since the 1988 Land Use Element did not account for the unbuilt floor area that the PC Text allowed in Office Area B, an amendment to the Land Use Element is being sought to increase the floor area in Office Site B by the unbuilt amount identified in the PC Text and then transferring it to Office Site A to facilitate the development of the new Koll Company Headquarters. ANALYSIS Due to the fact that the recently adopted General Plan update is not effective until such time as the voters approve it in November 2006, staff has evaluated the project in the context of the 1988 Land Use Element and the 2006 Land Use Element. 1988 Land Use Element The 1988 Land Use Element designates both office sites as Administrative, Professional and Financial. The proposed office development is consistent with this designation. Koll Center Newport Office Site A (Sub -Area 1 -1) is presently allocated a maximum of 436,079 gross square feet for non hotel uses, which includes the projected growth of 1,740 square feet for Steadfast Investment Properties (GP2005 -007) and 1,222 square feet for the Pacific Club (A890). Koll Center Newport September 7, 2006 Page 6 Koll Center Newport Office Site B (Sub -Area 1 -2) is presently allocated a maximum of 1,062,648 gross square feet, which includes a projected growth of 1,750 square feet for the Master Development Corporation (GP2004 -006). With the adoption of 1988 Land Use Element, the City acknowledged that every care was taken in the preparation of the floor area estimates, given the technology and source information, and that there was a possibility for errors. As shown previously with the identification of unbuilt floor area authorized by the Koll Center PC Text, the unused square footage .allowed by the PC Text in the Office Area B was not included in the 1988 update. The change suggested by the applicant will result in the following: Office Site B Current Limit: 1,062,648 GPA Proposed Limit: 1,060,146" GPA *This total accounts for Master Development Corporation Office Site A Current Limit: Proposed Limit: 436,079 GPA 460,095'"` GPA "' This total accounts for Pacific Club, Steadfast and present application for the Koll Company. Applicable General Policies The objective of the Land Use Element is to provide an orderly balance of residential and commercial uses with an emphasis of maintaining a high quality environment for people living, working and visiting the City. Amendments can be approved upon finding that they are consistent with the surrounding land uses and the policies of the Land Use Element. The following discussion relates to those general land use policies that are applicable to the proposed project. A. The city shall provide for sufficient diversity of land uses so that schools, employment, recreation area, public facilities, churches and neighborhood shopping centers are in close proximity to each resident of the community. The proposed project would increase the development allocation in the Office Area A by 24,016 square feet. However, only a total of 21,311 square feet would be used for the Koll Center Newport September 7, 2006 Page 7 construction of the new office building to be occupied by the Koll Company. The remaining un -built square footage of 2,705 would be reserved for future office development within Office Area A. The proposed project, therefore, is consistent with this policy in the fact that the proposed project does not change the diversity of land use and the continuation of office development is consistent with those intended for both office sites by the General Plan. Furthermore, the PC Text allows unused floor area allocated for restaurant, bar, theater /nightclub to be converted to professional and business office use (Section Group V - Restaurants). B. To ensure redevelopment of older or underutilized properties, and to preserve the value of property, the floor area limits specified in the Land Use Element allow for some modest growth. To ensure that traffic does not exceed the level of service desired by the City, variable floor area limits shall be established based upon the trip generation characteristics of land uses. Although the project consists of an increase in the development allocation for Office Site A of 24,016 square feet of which 21,311 will be used for the development of proposed office building, the increased area was planned as evidenced by its inclusion in the Koll Center PC Text prior to 1988. The proposed development is anticipated to generate less than 300 daily trips and therefore, does not required the preparation of a traffic analysis pursuant to the City's Traffic Phasing Ordinance. F. The City shall develop and maintain suitable and adequate standards for landscaping, sign control, site and building design, parking and undergrounding of utilities and other development standards to ensure that the beauty and charm of existing residential neighborhoods are maintained, that commercial and office projects are aesthetically pleasing and compatible with the surrounding land uses and that the appearance of, and activities conducted within industrial developments are also compatible with surrounding land uses and consistent with the public health, safety and welfare. The City implements this policy through the Koll Center Planned Community Text. The project is designed to meet all applicable development standards contained within. The proposed building height, size, and architectural design of the project will be physically compatible with the existing and surrounding professional office and commercial developments. Staff believes that, based on the analysis of the land Use Element policies, the proposed project can be found consistent with the General Plan and the increase in development allocation can be approved. Koll Center Newport September 7, 2006 Page 8 2006 Land Use Element The land use designation for the subject property is MU -H2 (Mixed -Use Horizontal). This designation is intended to provide for a horizontal intermixing of uses that may include regional commercial office, multi - family residential, vertical mixed -use buildings, industrial, hotel rooms, and ancillary neighborhood commercial uses. The underlying uses for Office Sites A and B are office, hotel, support retail, residential village: housing and mixed -use (commercial /residential). The project, as proposed, would be consistent with this land use designation. The maximum floor area of Area 1 (Office Site A) is 436,079 gross square feet and for Area 2 (Office Site B) is 1,062,648 gross square feet, identical to the current limits within the 1988 Land Use Element. These numbers would also need to be modified to reflect the adjustment and the requested transfer as described in the previously analysis. Land Use Policies 4.3 and 5.3.6 are applicable to the proposed project. 4.3 Transfer of Development Rights — Permit the transfer of development rights. from a property to one or more other properties when: a. The donor and receiver sites are within the same Statistical Area. b. The reduced density /intensity on the donor site provides benefits to the City such as, but not limited to, the (1) provision of extraordinary open space, public visual corridor(s), parking or other amenities; (2) preservation of a historic building, property or natural landscapes; (3) improvement of the area's scale and development character; (4) consolidation of lots to achieve a better architectural design than could be achieved without lot consolidation; and /or (5) reduction of local vehicle trips and traffic congestion. c. The increment of growth transferred to the receiver site complements and is in scale with surrounding development, complies with community character and design policies contained in the General Plan, and does not materially degrade local traffic conditions and environmental quality. The project would not be in conflict with this policy as the proposed transfer of development rights would occur within the Airport Statistical Area. The reduction of allowed development within the donor site would serve to reduce traffic trips (general office uses generate fewer trips than restaurant or retail uses) and therefore, would not result in any impacts to the local circulation system. The proposed development to be located on the receiver site has been designed with an architectural style that appears to be compatible with existing development in the business complex. Koll Center Newport September 7, 2006 Page 9 5.3.6 Parking Adequacy and Location — Require that adequate parking be provided and is conveniently located to serve tenants and customers. Set open parking lots back from public streets and pedestrian ways and screen with buildings, architectural walls, or dense landscaping. As discussed more fully in the Parking Section of the staff report, parking for the new office building would be provided in a combination of surface and below -grade lots immediately adjacent to the proposed structure. The parking areas will be convenient and accessible to the tenants and customers. Views of the parking lot would be minimized through the placement of parking underground and through the placement of the structure nearest to the public sidewalk that would sere to shield the existing parking lot to the east of the building. Landscaping of the lot is also proposed. Charter Section 423 Analysis Statistical Area L4 has a current General Plan limit of 8,180,453 square feet. The project will add 24,016 gross square feet of non - residential intensity in Koll _Center Newport Office Site A. However, this increase should be viewed as the correction of the gross floor area to properly reflect what was authorized by the Koll Center Newport Planned Community prior to the adoption of the 1988 Land Use Element. Based upon staffs belief that the limits established in the 1988 Land Use Element were not intended to eliminate this entitlement, it is staff's opinion that the additional 24,016 square feet is not new entitlement that should be subject to the Section 423. If the increase is determined to be subject to Section 423, the following analysis is presented to determine whether or not a vote would be required. The increase is 24,016 square feet of non - residential intensity, and 0 residential units. Based on the trip generation rates contained in the Council Policy A -18, the proposed project is forecast to generate an additional 42.7 AM peak hour trips and 41.3 PM peak hour trips. The project would be considered a minor amendment as it would not require a vote by itself based upon the thresholds established for a vote by Section 423. Although the proposed project does not exceed the 100 peak trip threshold, Section 423 of the Charter requires that all General Plan Amendments be tracked as prior amendments for ten years to determine if minor amendments in a single Statistical Area cumulatively exceed the thresholds. Eighty- percent of the increases attributable to prior amendments are added to the increases of the proposed project to determine if any thresholds have been exceeded. There have been four (4) prior amendments approved for Statistical Area L4, and the following chart shows the area and peak hour trip analysis. Koll Center Newport September 7, 2006 Page 10 As indicated in the preceding chart, the resulting total of the proposed amendment and prior amendments would not exceed the 100 peak hour trip or 40,000 square foot thresholds and a vote pursuant to Charter Section 423 is not required. If it is determined that the proposed amendment is a correction and not subject to Charter Section 423; staff will track the amendment with zero increases. Should it be determined that the amendment is subject to Section 423, staff will tract the 80% of the increases noted in the table above. Planned Community Text Amendment The proposed project requires an amendment to the Planned Community Text to allow for the transfer of development intensity of 24,016 square feet of unused retail, restaurant and office uses from Office Site B to Office Site A. No net increase in square footage will result from this Amendment. The applicant plans not to utilize the entire 24,016 gross square feet; only 21,311 square feet would be used for the proposed office building. The proposed office development meets all the development standards specified in the Koll Center Planned Community development standards for building setbacks and on -site parking. The remaining square footage of 2,705 will be reserved for future office development. The applicant is proposing to amend Group I (Professional and Business Offices), Group V (Restaurants) and Group VI (Retail and Service Center) of Section I of Part II (COMMERCIAL) of the Koll Center Planned Community Text. Under Group I, Office Site A would gain 24,016 square feet (from 342,131 to 366,147), Office Site B would change from 965,216 to 967, 803 square feet [965,216 — 4,481 (unused office area) + 7,068 (Koto Restaurant is being converted to office building which is allowed per the PC Text, included for tracking purposes)]. Group V would reflect the deletion of Restaurant Site Nos. 4 and 5 from Office Site B. Group VI would reflect the deletion of Retail Site No. 2 from Office Site B. Area A.M. Peak Hour P.M. Peak Hour Trips Tri s Prior Amendment GP 2001 -004 1,272 s.f. 2.4(80%) 2,4(80%) 80% Prior Amendment GP 2004 -004 0 17.0(80%) 24.8(80%) Prior Amendment 1,400 s.f. 1.6(80%) 1.6(80%) GP 2004 -006 80% Prior Amendment 1,392 s.f. 2.4(80%) 2.4(80%) GP2005 -007 80 %) Proposed Amendment 24,016 42.7(100%) 41.3(100%) 100% Total 28,080 66.1 72.5 As indicated in the preceding chart, the resulting total of the proposed amendment and prior amendments would not exceed the 100 peak hour trip or 40,000 square foot thresholds and a vote pursuant to Charter Section 423 is not required. If it is determined that the proposed amendment is a correction and not subject to Charter Section 423; staff will track the amendment with zero increases. Should it be determined that the amendment is subject to Section 423, staff will tract the 80% of the increases noted in the table above. Planned Community Text Amendment The proposed project requires an amendment to the Planned Community Text to allow for the transfer of development intensity of 24,016 square feet of unused retail, restaurant and office uses from Office Site B to Office Site A. No net increase in square footage will result from this Amendment. The applicant plans not to utilize the entire 24,016 gross square feet; only 21,311 square feet would be used for the proposed office building. The proposed office development meets all the development standards specified in the Koll Center Planned Community development standards for building setbacks and on -site parking. The remaining square footage of 2,705 will be reserved for future office development. The applicant is proposing to amend Group I (Professional and Business Offices), Group V (Restaurants) and Group VI (Retail and Service Center) of Section I of Part II (COMMERCIAL) of the Koll Center Planned Community Text. Under Group I, Office Site A would gain 24,016 square feet (from 342,131 to 366,147), Office Site B would change from 965,216 to 967, 803 square feet [965,216 — 4,481 (unused office area) + 7,068 (Koto Restaurant is being converted to office building which is allowed per the PC Text, included for tracking purposes)]. Group V would reflect the deletion of Restaurant Site Nos. 4 and 5 from Office Site B. Group VI would reflect the deletion of Retail Site No. 2 from Office Site B. Koll Center Newport September 7, 2006 Page 11 Parking Parking for the proposed office building will be provided by a 17 -space garage below the building and within the common parking pool on the surrounding Koll Center common parcel. The proposed building will be utilizing the parking immediately available on the easterly and southerly sides of the building and underneath the building. The existing and proposed office use parking pool for Office Site A is as follows: Net Office Area Parking Spaces Provided Parking Spaces Required Parking Space Surplus Existing Proposed 342,131 362,631 1,314 1,335 1,224 1,293 90 42 Although the proposed building will remove surface parking, the project will increase the total supply with the 17 -space garage under the building and restriping of the common parking lot creating a surplus of parking. Environmental Review A Mitigated Negative Declaration (MND) has been prepared by EDAW, Inc. for the proposed project in accordance with the implementing guidelines of the California Environmental Quality Act (CEQA). The MND is attached as Exhibit No. 3. The MND identifies seven (7) issue areas with 32 mitigation measures. Those issues are: Air Quality, Cultural Resources, Hazards /Hazardous Materials, Hydrology/Water Quality, Noise, Transportation/Traffic, Utilities and Service Systems. The MND was circulated for public review between August 10 and September 5, 2006. Staff has not received any comments on the MND as of the date of staff report preparation. Staff will prepare responses to comment for consideration, if comments are received, and present them to the Planning Commission at the September 7 t hearing for consideration. 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. Koll Center Newport September 7, 2006 Page 12 Finally, the item appeared upon the agenda for this meeting, which was posted at City Hall and on the city website. PUBLIC COMMENTS On August 30, 2006, staff received a letter from Pres- Lakeside L.P., owners of a 1.28 acre parcel (Koto Restaurant site) located within Office Area B of Koll Center Newport requesting the Commission take no action of the Koll application at the September 7th hearing. The purpose of the request is to allow the owner of this site to have further discussions with the Koll Company pertaining to the parking and other development matters for their property. In response to this request, the Koll Company responds with a letter stating their reasons for the Planning Commission not to grant the request (Exhibit 6). SUMMARY The Koll Center Newport Planned Community allows 24,016 square feet of additional development that the 1988 and 2006 Land Use Elements do not. This entitlement pre- dated the 1988 Land Use Element and staff believes that there was no intent to eliminate it. The proposed General Plan Amendment will recognize this unbuilt entitlement and make the Land Use Elements consistent with the Koll Center Newport Planned Community. Staff believes that the proposed General Plan Amendment does not conflict with the policies identified in the 1988 and 2006 Land Use Elements; does not exceed any of the thresholds for a vote established by Charter Section 423, and the transfer of unused office, retail and restaurant square footage within the statistical area can be supported. Additionally, staff believes that the Planned Community Development Plan Amendment request for the transfer of unused square footage can also be supported, as the proposed office development meets all the development standards specified in the Koll Center Planned Community development standards and will not be detrimental to the surrounding office developments as the new construction occurs within a sizable parcel owned by the applicant. The proposed building height, size, and architectural design of the project will be physically compatible with the existing and surrounding professional office and commercial developments. There will be no impact to the overall pool parking for the entire Office Site A. The draft resolution recommending approval of the project has three components. First, it suggests that the 1988 Land Use Element be amended as described in the report. The amendment will become effective upon adoption by the Council and it would remain effective if the 2006 Land Use Element is not adopted by the voters. Second, it recommends that the subject amendment affect the 2006 Land Use Element only upon its effectiveness since it can not be amended at this time as it will appear on the November 2006 ballot. This is the only way to avoid having this project re -heard after Koll Center Newport September 7, 2006 Page 13 the effectiveness of the 2006 General Plan Update. Third, the resolution recommends adoption of the suggested changes to the Koll Center Newport Planned Community by ordinance. Prepared by: Ro alinh M. Ung, As ociate Planner Submitted by: Gregg RgmirezActing Plannin irector Exhibits: 1. Planning Commission Resolution No. 2006- (to be provided under a separate cover) 2. Applicant's Letter of Request 3. Initial Study & Mitigated Negative Declaration' 4. Prior PC Text Amendment (1972 -2005) for Koll Center's Office Areas A &B 5. Project Plans 6. Public Comments EXHIBIT NO. 1 DRAFT .PLANNING COMMISSION RESOLUTION (to be provided under a separate cover) "REVISED" RESOLUTION NO. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH RECOMMENDING THAT THE CITY COUNCIL ADOPT APPROVEAL OF GENERAL PLAN AMENDMENT NO. 2006 -003 TO INCREASE THE DEVELOPMENT ALLOCATION OF STATISTICAL AREA L4, KOLL CENTER NEWPORT OFFICE SITE A BY 24,016 GROSS SQUARE FEET AND PLANNED COMMUNITY DEVELOPMENT PLAN AMENDMENT NO. 2006- 001 TO INCREASE THE DEVELOPMENT ALLOCATION FOR PROFESSIONAL AND BUSINESS OFFICES OF SITE A AND ELIMINATE THE ENTIRE RETAIL SITE #1, AN UNDEVELOPED PORTION OF RESTAURANT SITE #2 AND THE ENTIRE RESTAURANT SITE#5 (PA 2006 -095) WHEREAS, an application was filed by The Koll Company with respect to Office Sites A and B of the Koll Center Newport Planned Community generally bounded by MacArthur Boulevard to the west, Birch Street to the north and northeast and Jamboree Road to the southeast, requesting a General Plan Amendmend to increase the maximum gross floor area permitted in Sub -Area 1 -1 (Office Site A) of the Airport Area (Statistical Area 1-4) by 24,016 square feet and an amendment to the Koll Center Newport Planned Community (PC -15) to allow the transfer of 24,016 gross square feet of unused retail, restaurant and office square footage from Office Site B to Office Site A. The aplications are requested to facilitate the construction of a 21,311 square foot, two -story office building over a subterranean parking garage on a 1.49 -acre site at 4450 MacArthur Boulevard; and WHEREAS, a public hearing was held on September 7, 2006, in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California. A notice of time, place and purpose of the meeting was given in accordance with the Municipal Code. Evidence, both written and oral, was presented to and considered by the Planning Commission at this meeting; and WHEREAS, as part of the development and implementation of the Newport Beach General Plan, the Land Use Element has been prepared which, sets forth objectives, supporting policies and limitations for development in the City of Newport Beach and designates the general distribution and general location and extent of the uses of land and building intensities in a number of ways, including commercial floor area limitations; and WHEREAS, the project site is designated Administrative; Professional, & Financial Commercial by the General Plan Land Use Element. The City has adopted Planned Community District Regulations (PC -15 Koll Center) that establish development standards and use regulations to implement the General Plan. The property is presently improved with a paved common parking area for the Office Site A; and, WHEREAS, the Land Use Element presently allocates a maximum of 436,079 gross square feet for non hotel uses for Koll Center Newport Office Site A (Sub -Area 1 -1). This floor area limit includes the projected growth of 1,740 square feet for Steadfast Investment Properties permitted by General Plan Amendment No. 2005 -007 and 1,222 square feet for the Pacific Club remaining after the implementation of their current expansion authorized by GPA EXHIBIT NO.2 APPLICANT'S LETTER OF REQUEST THE KOLL COMPANY HEADQUARTERS PROJECT August 18, 2006 Koll Center Newport. PROJECT DESCRIPTION The proposed Koll Headquarters Project consists of a two -story 21,311 square foot ( "floor area, gross ") office building, a partial subterranean level containing 17 parking spaces and related site improvements. The design concept for the new headquarters project will complement the established Koll Center Newport (KCN) architectural and landscape site environment. The project will be integrated into a portion of the existing KCN Site A office use common area surface parking improvements. This two -story, small scale structure, located at the southeast corner of the entry drive from MacArthur to Block A will be a visual counterpoint to its larger scale office and hotel neighbors to the north, east and south. The modern, contemporary exterior architecture is comprised of glass and stone or stone -like fascia and wall elements. The U- shaped massing articulation blends the dominant horizontal emphasis with the complementary two-story, glass building entry and colonnade. The project will be integrated into the existing mature KCNi landscape by maintaining the existing eucalyptus and liquidambar tree vocabulary and ground cover /shrub foundation planting. New accent specimen landscaping will provide visual focus and orientation at the building's main plaza and entry.: When completed, the Koll Headquarters building will be an integral, complementary addition to Koll Center Newport's established environment. Approximately 20,500 square feet of "floor area, net" will require ± 69 parking spaces. These spaces will be part of Site A's parking pool common area per KCN's PC Text Part III, Section I.B.I. Exception. Additional parking is being provided by modifications to the existing common area parking and the addition of 17 spaces under the building. Site A's existing and proposed office use parking pool is as follows. Existing Proposed Net Office Area 342,131 t 362,631 Parking Spaces Provided 1,314 ± 1,335 Parking Spaces Required 1,224 ± 1,293 Parking Space Surplus 90 42 GENERAL PLAN AND PC TEXT AMENDMENTS LANG DO N W I LS ON Architecture Planning Interiors \4 THE KOLL COMPANY HEADQUARTERS PROJECT August 18, 2006 Koll Center Newport I Page 2 The proposed project requires amendments to the General Plan Land Use Element, Planning Area L-4 (GPA) and to the Planned Community Development Standards for Koll Center Newport (PC Text). GPA Administrative, Professional and Financial Commercial — Gross Square Feet (Includes Office and the Pacific Club — Excludes Hotel) Existing Proposed Projection Projection Increase Site A 436,079 457,390 21,311' PC TEXT Professional and Business Offices Allowable Building Area — Net Square Feet Existing Proposed Change Site 342,131 366,147 +24,016 Site B 972,284 967,803(') - 4,481 See attached Proposed PC Text Amendment No. 30 Summary for. detail. Includes Koto reverted to allowable office area: for tracking purposes, not a part of proposed Amendment No. 30. Y11970s17242690MWP1Ko11 Headquarters Project Description- 8- 18-08.doc LANG DON W I LSO N A r c h j.t e c t u r e P l a n n i n g In t e r i o rIs X� PLANNED COMMUNITY DEVELOPMENT Langdon Wilson STANDARDS FOR KOLL CENTER NEWPORT (KCN) August 18, 2006 PROPOSED AMENDMENT NO. 30 The following summarizes the current status and proposed changes to KCN's Sites A& B. SITE A Current Allowable Office Building 342,131 net sq. ft. Area through Amendment No. 29 Proposed Transfers from Site B • Undeveloped Allowable Office Area 4,481 • Undeveloped floating Retail Site 2 reverted to Allowable Office Area 10,000 • Undeveloped portion of Restaurant Site 2 (Taco Bell) reverted to Allowable 2,603 Office Area • Undeveloped floating Restaurant Site 5 reverted to Allowable Office Area 7,000 • Reduction for Restaurant Site 4 (Koto) <68> Overage Transfer Total 24,016 24.016 net sq. ft. New (Proposed) Allowable Office Building Area 366,147 net sq. ft. SITE B Current Allowable Office Building Area • Allowable Office Building Area through Amendment No. 28 965,216 • Adjustment for Restaurant Site 4 (Koto) reverted to Allowable Office Area(i) 7.068 Total Current Allowable Office Area 972,284 972,284 net sq. ft. Transfer to Site A of Undeveloped <4.481> net sq. ft. Allowable Office Area New (Proposed) Allowable Office Building Area 967,803 net sq. ft. 11� Not part of proposed Amendment No. 30. Included for tracking purposes only per P.C. Text Part II, Section I, Group V -A. Y:\1970s\7242\- 900\WP\Planned Comm Dev Standards -8-1 M6.doc l� 0 o�g..w p"O aaH RZ /, z Ta W H O, f1.J..1 Z W z W V J So zz XSj(j W z ce O J U z U Q W Q7 H K 0 w z 1a U 0 °� 8 VVL po ON 0 \\00 I I Ls m zz: ; :: LL) go. .• z `x'39._. ,1p�( V a; m FOB C up 0 X O W mo >>yyyyJJ O aOC r&V mow/. I..L W H U 0 °� 8 VVL po ON 0 \\00 I I Ls m zz: ; :: LL) go. .• z `x'39._. ,1p�( V N 0 J U 6 m O R4 II a; up 0 NRo >>yyyyJJ O aOC r&V mow/. I..L W H Z w U J N 0 J U 6 m O R4 II Acreages shown are net buildable land area including landscape setbacks with property lines. (4) IN Site A Site B Site C Site D Site E Site F Site G Site A Site B Site C Site D Site E Site F Site G C. Building Sites (4) Total Acreaee 30.939 acres 43.703 acres (11) 18.806 acres (10) 19.673 acres 2.371 acres 1.765 acres 5.317 acres (8) 122.574 acres (8)(10)(11) Allowable Building Area 674,800 square feet (I 0)(15) 240,149 square feet (8)(13) 32,500 square feet (4) 24,300 square feet (4) 45.000 square feet (8) Statistical Analysis (4) Office Acreaee 30.939 acres 43.703 acres (11) 18.806 (10) 19.673 acres 2.371 acres 1.765 acres 5.317 acres (8) 122.574 acres (8)(10)(11) The following stastics are for information only. Development may include but shall not be limited to the following: Story heights shown are average heights for possible development. The buildings within each parcel may vary. Assumed Parking Criteria: a. One (1) space per 225 square feet of net building area @ 120 cars per acre for sites C, D, E, F and G. 15 /x, *(3)(4) In addition to 19.399 acres of office use, there is 9.54 acres for hotel and motel and 2.0 acres of lake within Office Site A. Therefore, there are 30.939 acres net within Office Site A. (3)(4)(16) b. One (1) space per 300 square feet of net building area @ 120 cars per acre for Sites A, B and C. (11) 1. Site A Allowable Building Area 347 191 square feet (16(29) Site Area ..... 19.399 acres *(3)(4)(16) a. Building Height Land Coverage (1 Two story development 3.922$ re Three story development '.`z 61 aere Four story development ' . "z 96 aeres Five story development '..`TT aefes Six story development 1.31 aeres Seven story development 1. 12 acres Eight story development 0.98 aeres Nine story development 0.87 aeres Ten story development 0.'e 78 aeres Eleven story development 0.71 acres Twelve story development O.65 acres b. Parking Land Coverage i r 139 om-a " "� 9.49 aeres (11 of 6)(29) -- a�r ate.=_'""" -_�'_ C. Landscaped Open Space (4) (11) (16)Land Coverage ; Two story development 5.9mow Three story development 7.'r 30 aeres Four story development 7.9§ ass Five story development 8.34 acres Six story development 8.60 acres Seven story development 8.79 affe Eight story development ° ^n 93 affes Nine story development 9.04 ae Ten story development 9.13 ago Eleven story development 9.20 aeres Twelve story development 9.26 aem 2. Site B Allowable Building Area 28) Site Area ........43.703 acres (4)(11) 16 MMI a. Building H eight Two story development Three story development Four story development Five story development Six story development Seven story development Eight story development Nine story development Ten story development Eleven story development Twelve story development b. Parking 3,218 e 6 C. Landscaped Open Space (11 Two story development Three story development Four story development Five story development Six story development Seven story development Eight story development Nine story development Ten story development Eleven story development Twelve story development Site C 10 Land Coverage (11) (13) (16) 26.92 aere t ms° M Allowable Building Area ........674,800 square feet (15) (17)* Site Area ..........18.806 acres (4) a. Building g eight Land Coverage (15) Two story development ........7.75 acres Three story development ........5.16 acres Four story development ........3.87 acres Five story development ........3.10 acres Six story development ........2.58 acres Seven story development ........2.21 acres Eight story development ........1.94 acres Nine story development ........1.72 acres Ten story development ........1.55 acres Eleven story development ........1.41 acres Twelve story development ........1.29 acres 17 13 E. Building g eieht Maximum building height shall not exceed height limits set by the Federal Aviation authority for Orange County Airport. Group IV. SERVICE STATIONS A. Building Site (4) (5) (11) Site 3: 1.765 acres ................ ..........................1.765 acres Service station site 3 shall be located within Office Site F and shall not exceed 1.765 acres in size. Any portion or all of Site 3 not utilized for service station use shall revert to either professional and business office use or restaurant use. (4) Group V. RESTAURANTS (1) (4) A. Building Site Maximum acreages for Site 2 shall not exceed 1.25 (18) acres. Maximum acreage for Site 3: 1.765 acres. Maximum acreages for Sites 4 and 5 shall not exceed 3.0 acres. Maximum acreage for Sites 6 and 7 shall not exceed 2.2 acres. (8) (The following acreages are for information only.) Site 1 Deleted see Group VII. ..........1111.... (18) Site 2 .......................... ...........................1.25 acres Site 3 ........................... ..........................1.765 acres Site 4 ! t Site 5 t° ; i ..�i, .............................. 11It 1.50 serer 1.50 a Site 6 .......................... ...........................1.50 acres (8) Site 7 .......................... ...........................0.70 acres (8) .E4YAhnfii %44 N;_ Site 1 Deleted see Group VII Private Club (18) Site 3 located within Office Site "F ". (4) Any portion or all of the restaurant, bar, theater /nightclub acreage for Sites 2, 4, 5, 6 or 7 not utilized for that purpose shall revert to professional and business office use. Any portion or all of the restaurant acreage for Site 3 not utilized for that purpose shall revert to either professional and business office use or service station use. (4) (8) (18) 22 Group Vt. The following statistics are for information only. Development may include but shall not be limited to the following. B. Building Are (4) Site 2 ..................... 5,000 sq . . ............ 0. 11 aefe OMOMMWOOM Site 3 ................... 10,000 sq. ft . ............ 0.22 acres Site 4 ..................... :7,000 sq, ft . ............ 0.16 aefes- site 5 ..................... 7,000 sq. A . ............ 0.16 aere-s Site 6 (8) ............... 7,OW sq, ft . ............ 0. 16 acres Site 7 (8) ...............3.000 sg . ft ............. 0.07 acre C. Parkin Criteria: 300 occupants/ 10,000 sq. ft. I space/3 occupants and 120 cars per acre. Site 2 ..........................50 effs . .............. 0. 42 seas Site 3 ........................100 cars............... 0.84 acres Site 4-............ 70 e&ra ....... aeres- Site 5 .......................... 70 effs . . . ........... 0.158 aeres- Site 6 (8) ....................70 cars ............... 0.58 acres Site 7 (8) ....................30 cars ............... 0.25 acres 41A RAF's 4 M a Ar&9 10 D Landscaped Qpm Space (4) Site2 ............................ 0.72 aefes ........................ ........ Site 3 . ...........................0.70 acres Site 4 ............................ 0.76 aere Site 5............................9.7.6 aems Site 6 (8) ......................0.76 acres Site 7 (8) ......................0.38 acres 4 09 Asreq (9 E. Building Height Building height of structures shall be limited to a height of thirty-five (35) feet. RETAIL & SERVICE CENTER A. Building Site (4) (5) 23 Site 1 .. ........ .... .... .......... 5.026 acres Site ............................ 1.500 .. � ,. 6 526 a ...... 6.526 ams w.:�� Site 2 shall be located within Office Site `B." any portion or all of the retail and service Site 2 acreage not utilized for that purpose shall revert to professional and B. Allowable Building Area (5) *Retail Site No. 1 ..................102,110 sq. ft. (14)(27) Retail Site Ne. 2 .................... 10,000 *Retail Site No. 1 (S. Ft.) Parcel Existing Total Parcel 1 R/S 588 (H) (H) 70,630 Parcel 3,R/S 506 (R) (R) 0 (0) (0) 22,000 Parcel 4, R/S 506 (R) 4,115 (R) 21,896 (0) 0 (0) 5,474 Subtotal (R) 12,315 (R) 21,896 (0) 0 (0) 27,474 (H) 70,630 Total 120,000 (14)(27) (R) = Retail (0) = Office (H)= Hotel C. Landscape Area (5) Twenty -five (25) percent of the 5.026 acres constituting retail and service center Site No. 1 shall be developed as landscape area. If twenty-five (25) percent of the 5.026 acres constituting retail and service center Site No. 1 is not developed as landscape area, a specific site plan shall be submitted to the City of Newport Beach Planning Commission for approval prior to the issuing of a building permit. D. Statistical Analysis (5) The following statistics are for information only. Development may include but shall not be limited to the following. 24 a0 Assumed parking criteria: One (1) space per 200 square feet of net building area at 120 cars per acre. 1. Site 1 Allowable Building Area ....................... ........................120,000 sq. ft.(24)(27) (14) Site Area ................ ............................... ..........................5.026 acres a. Building Height (14) Two story development . ...........................1.17 acres Three story development ..........................0.78 acres Four story development ...........................0.59 acres Five story development . ...........................0.47 acres b. Parking (14) 460 cars ......................... ...........................3.83 acres C. Landscaped Open S ace (14) Two story development . ...........................0.03 acres Three story development ..........................0.87 acres Four story development ...........................0.61 acres Five story development . ...........................0.73 acres - t E. Building Height Building height of structures shall be limited to a height of thirty -five (35) feet above mean existing grade as shown on Exhibit `B." (5) Group VII. PRIVATE CLUB (18) A. Building Site Site 1 ....................2.0 acres ......... ............................ 2.0 acres 25 a01 EXHIBIT NO, 3 INITIAL STUDY & MITIGATED NEGATIVE DECLARATION (Distributed separately due to bulk. The entire document is available in Planning Department) M EXHIBIT NO.4 PRIOR PC TEXT AMENDMENT (1972 -2005) FOR KOLL CENTER'S OFFICE AREAS A & B a PC TEXT AMENDMENTS (1972 -2005) FOR KOLL CENTER'S OFFICE AREAS A & B Amend Office Site Office Site Retail Site Restaurant Restaurant Restaurant Restaurant Restaurant Private Clu Nos. A (OSA) B (OSB) #2 Site #1 Site #2 Site #3 Site #4 Site #5 OSA 313 350,200 860,600 10,000 5,000 5,000 5,000 - - - #1 &2) OSA (floater) (floater) (floater) 972 381 350,200 860,600 10,000 5,000 OSA 5,000 OSA 5,000 - - - #3) OSA (floater) 973 420 350,200 86 0,600 10,000 5,000 OSA 5,000 OSA 10,000 OSF 7,000 OSB 7,000 OSB #4) OSA (add 5,000) 1974 550 350,200 953,651 10,000 5,000 OSA 5,000 OSA 10,000 OSF 7,000 OSB 7,000 OSB #13) (860,600 OSA 1980 +93,051) transfer from OSD to OSB 606 340,002 963,849 10,000 5,000 OSA 5,000 OSB 10,000 OSF 7,000 OSB 7,000 OSB - #16) (350,200- ( +10,198) OSB (transfer 1984 10,198) transfer (transfer from OSA transfer from OSA from to OSB from OSA to OSB OSA to to OSB OSB) 635 340,002 963,849 10,000 Deleted 5,000 OSB 10,000 OSF 7,000 OSB 7,000 OSB 30,000 #18) OSB with the OSA 1986 creation of a private club in OSA 890 418,346' 963,849 10,000 0 5,000 OSB t 0,000 OSF 7,000 OSB 7,000 OSB 45,000 #26) OSB ( +15,000) 000 P2004 418,346 965,216 10,000 0 5,000 OSB 10,000 OSF 7,000 OSB 7,000 OSB 45,000 006 ( +1,367) OSB #28) 005 P2005 342,131*' 965,216 10,000 0 5,000OSB 10,0000SF 7,000OSB 7,000OSB 45,000 007 OSB #29) 006 urrent 342,131 965,216 10,000 D 5,000 OSB 10,000 OSF 7,000 OSB 7,000 OSB 46,000 OSB I - I his number was incorrectly changed from 340,002 to 418,346 as part the Pacific Club amendment in 2000. " The net floor area was corrected and increased 340,002 as a part the Steadfast amendment in 2006. EXHIBIT NO.5 PROJECT PLANS 3i QLU rvoo �D `.J r) LU Q Z r) 0 U J J 0 .J M. z O a z 0 U w z -� J O O L.LJ Y Z IQp- o z J I A . ........ . .. YiYf All, x X, GS I Z CL U 0 22 8„ o t 33 ZO War, u ��,P a, Ir� Flu"! 401; ol w N z 00 ° -Z. ri - Z Z g 53:::: a a i w H � < H � a w u Z u u w Z w F u O Y r til "'R dU c? Ik .' g 44 901. -28 m li. 1 f ffi � u ir 1, so I 1 00 ° -Z. ri - Z Z g 53:::: a a i w H � < H � a w u Z u u w Z w F u O Y ............. x F} e ,_ :..... F Z: '� V N =� ^� v V_ . y Z 3:. Q J � 3� O 2 E J E J Q ' d W U Z 0 U w H Q a 0 Q W r Z a � goW v z J � J W 0 ~ Z Y �j W —� H �Y I 1 3 li 1 I ............. J G Izz::, s ^S ° €_ , N zJ '" oil i= a jl w 3 J v W Wy U4;1 Oj Q d U J J O Y w_ r 0 O 3 z a w z Z w :l J .7 Y es EXHIBIT NO. 6 PUBLIC COMMENTS 3l L �J AUG 8 0 20M PROFESSIONAL REAL ESTATE SERVICES, INC. Ms. Rosalinh Ung City of Newport Beach, Planning Department 3300 Newport Blvd. Newport Beach, California 92663 RE: PUBLIC HEARING SEPTEMBER 7, 2006 KOLL CENTER NEWPORT REQUEST FOR TRANSFER OF DEVELOPMENT RIGHTS Pres - Lakeside L.P. ( "Owner ") owns a 1.28 acre parcel within office area B of Koll Center Newport (KCN). There is currently on the parcel one (1) restaurant structure being renovated to commercial office use. Additionally, Owner is in the design process for a second building to be located on the same parcel, which will require the remaining development rights in office area B and a general plan amendment for the balance of square footage requirements. Owner has yet to conclude discussions pertaining to parking and other development matters with KCN as relates to the second building, Owner requests that the Planning Commission take no action at this time on the KCN request for transfer of development rights to allow sufficient time for further discussion and conclusion of arrangements between Owner and KCN. O..ner appreciates your consideration and should you have any questions regarding the request, please feel free to contact the undersigned. T. D. Austin Senior Vice President Construction & Development 1201 Dave Street, Suite 100 Newport Beach, CA 92660 Tel: (948) 261.7737 Fax: V)4424925 The Koll Company 4343 Von Karman Avenue Suite 150 Newport Beach, CA 92660 (949) M3030 (949) 250 -4344 Fax August 30, 2006 Ms. Rosalinh Ung City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 AUG i 1 W Hu RE: Koll Center Newport — PRES Letter Requesting Continuance Ms. Ung: The purpose of this correspondence is to respond to the attached PRES letter which requests a continuance of the September 7, 2006 Planning Commission due to their contention that they will require the remaining development rights in Koll Center Newport ( "KCN ") Office Area B. In fact, it is The Koll Company ( "TKC ") that retains these rights as master developer of KCN and therefore PRES has no basis for requesting a continuance. Furthermdre, we have been processing this application for over five (5) months and can see no basis by which PRES or any other group should be granted a continuance. Below I will review the basis for this finding: History pf KCN — The Koll Company master developed KCN in 1972. Over the years, TKC has developed and sold off individual buildings and parcels to other various owners, while owning and maintaining all the common areas including the common parking pool, and enforcing the extensive CC &Rs governing various issues, including modifications to any development in KCN. Each one of the building and parcel sales slowly reduced the remaining available entitlement owned ley TKC within KCN. The proposed 21,311 square foot office building, the future TKGcorporate headquarters, represents almost all of the remaining entitlement and could be viewed as the last phase of a multi phased master development under the current regulations. Additionally, the PC Text Amendment being requested by TKC deals with square footage that TKC has been contemplating for development for over 25 years. PC Text Amendment Number 14 (Recorded March 23, 1981) originally transferred a majority of the square footage currently proposed from KCN -A to KCN -B. TKC' is now just reversing Amendment Number 14. Pursuant to the CC &Rs, TKC, as Declarant, has the sole right to make this transfer. KCN Owners — Within KCN, as mentioned above, there are numerous individual building and land owners. TKC encourages all owners to improve their property to help maintain the quality of the overall development. In order for an owner to process their improvement, TKC requires owners to follow the steps laid out within the CC &Rs to gain the approval of TKC, who is the Declarant of said CC &s. 3� Ms. Rosalinh Ung Page 2 PRES, who is an owner of a parcel within KCN, is in the middle of an exterior improvement to their existing building located on Von Karman. We have met in the past and discussed their site. They are well aware of the process they must go through in order to comply with the CC &Rs. To date, TKC has not received a submittal regarding their proposed office building mentioned in their letter referenced above. • TKC's Submittal — TKC has been worldng with the City of Newport Beach staff for the last couple of years regarding its proposed 21,311 square foot office building. At the request of the City, Pat Allen of Langdon Wilson reviewed the plans; for every existing building within KCN to determine exactly what square footage remained within KCN to build TKC's proposed building. Subsequently, Patty Temple and Jim Campbell issued their review of Pat Allen's analysis and determined the. amount of square footage they deemed to be remaining with KCN. Based upon the, determination of the exact square footage remaining, TKC and the City collaborated on the proposed PC Text and General Plan Amendments. At that point, TKC assembled the required information and submitted to City Staff on March 16, 2006. As of this writing, the Environmental Impact review has been completed the FAA has approved the project, and we are slated for Planning Commission on September 7, 2006. • TKC, as Declarant — TKC will meet with PRES to discuss their future building plans, but it is important to note that they have made no submittal to date and they will be required to follow the process laid out within the CC &Rs and if necessary process any required approvals with the City. In fact, this is the same process that Master Development Company and Steadfast Properties have recently completed for their modifications to their respective properties within KCN. As you will recall, neither Master Development Company nor Steadfast Properties were able to claim any of the remaining development rights within the PC Text, and as a result both. ottheir proposed square footage increases required a PC Text amendment increasing the total square footage allowed within the PC Text and a General Plan Amendment. Based upon the details listed above, we request that you recommend TKC's proposed office building maintain its Planning Commission date of September 7, 2006. PRES has absolutely no legitimate claim to any remaining development rights within KCN that would be the basis for their requested continuance. If you have any questions or comments regarding the details listed above, please, feel free to call me at (949) 833 -3030. Regards, / Scott M. Meserve The Koll Company Cc: Government Solutions, Inc iO r ERRATA and RESPONSE TO COMMENTS for the proposed KOLL COMPANY CORPORATE HEADQUARTERS PROJECT Prepared for: City ofNewport Beach Planning Department 3300 Newport Boulevard Newport Beach, CA 92663 Rosalinh M. Ung, Associate Planner (949) 644 -3208 Prepared by: EDAW, Ine 8954 Rio San Diego Dr., Suite 610 San Diego, CA 92108 Dustin Fuller, Project Manager (619) 291 -1347 ERRATA FINAL MND FOR THE KOLL COMPANY CORPORATE HEADQUARTERS PROJECT Upon completion of the Public Review period and receipt of comments for the Draft Mitigated Negative Declaration (MIND), errors and areas requiring clarification or modification in the MND text were identified The text has been changed in instances where information presented in the Draft MND required the clarification of the following: application requests and environmental analysis, or where information presented was unclear or additional information was deemed warranted within the Draft MND. These changes are provided below in strike-out/underlme format. The changes have also been reviewed and none of them affect the impact conchrsions of the MND. Minor typographical errors (i.e., punctuation, capitalization, etc.) identified within the Draft MND are not shown below. In addition, the following is provided solely to clarify the IS/MND discussion of the proposed General Plan Amendment for a net increase of 24,016 gross square feet within Office Site A. It does not represent new information that was not included in the IS44ND. As a result, the impact analyses and mitigation measures of the IS/MND remain the same; this clarification does not result in impacts beyond those identified within the IS/MND. An amendment to the Land Use Element is being sought to: 1) increase the floor area in Office Site B by the unbuilt floor area identified in the PC Text; and 2) transfer the unbuilt floor area to Office Site A to facilitate the development of the new Koll Company Headquarters, since the existing Land Use Element did not account for the unbuilt floor area that the PC Text allowed within Office Site B of the Koll Center Planned Community. The Use Permit application is no longer applicable as it is only required when there are no other legislative requests as part of an application. However, for the proposed project, the application includes amendments to both the General Plan and Planned Community. Both of these amendments are considered legislative actions that require findings and public participation. For these reasons, the Use Permit is not required for the proposed project. All comments received during the review period from August 4 through September 5, 2006 for the Draft Koll Company Corporate Headquarters Initial Study and Mitigated Negative Declaration document were noted and incorporated into the document as appropriate. All comments on the draft MND and the responses to these comments are provided m the Responses to Comments section. Section 1.1 Introduction: ua¢e 1 -1: narairraoh 1 This Initial Study evaluates and identifies the potential environmental impacts which may result from the proposed Koll Company Corporate Headquarters project ( "proposed project'), in the City of Newport Beach. The proposed project site encompasses approximately 64,897 square feet (1.49 acres) within the Airport Area of the City in Koll Center Newport Planned Community, Office Site A, approximately one -half mile south/southeast of John Wayne Airport. The proposed project includes the development of a two -story (40 feet tall or maximum 88.5 feet above mean sea level) office building totaling 21,311 gross square feet (GSF), 17 subterranean parking spaces, and 94 surface parking spaces on an existing paved parking lot. Discretionary actions required for the project are discussed in Section 2.4 of this Initial Study and briefly listed below: Section 1.1 Introduction: naae 1 -1: naratranh 2 As discussed above, a Use Permit is needed when there are no other legislative requests as part of an application. However, since the proposed project includes the General Plan and Planned Community amendments, which are considered legislative actions that require findings and public participation, the Use Permit is not required for the proposed project. The following language has been deleted from the Draft IS/MND. Section 1.3 Summary of Findings: page 1 -2: paragraph 2 Based on the findings of the environmental analysis in Section 3 of this Initial Study, the proposed Koll Company Corporate Headquarters Project has the potential for creating significant adverse impacts to Air Owlity Cultural Resources, Hazards and Hazardous Materials, Hydrology/Water Quality, Noise, Transportation/ Traffic, and Utilities and Service Systems. Mitigation measures have been identified to prevent or reduce these impacts to less than significant levels. These measures are listed below. Section 1.3 Summary of Findings: page 1 -3: paragraph 4 Mitigation Measure 3,3-8: Where vehicles leave the construction site and enter adjacent public streets, the streets shall be swept daily to remove soil tracked onto the paved surface. Any visible track -out extending for more than fifty (50) feet from the access point shall be swept of washed - within thirty (30) mirnutes of deposition. Section 2.1.2 Proiect Area: page 2 -2: paragraph 4 The Airport Area (Statistical Area 1-4) is divided into three Planned Communities: 1) Koll Center Newport; 2) Newport Place; and 3) Campus Drive. The proposed project is located in the approximately 179acre Koll Center Newport (KCN) Planned Community, which is divided into multiple sub - areas. The project is located in the 30.9 -acre sub -area known as KCN Office Site A, which is bounded by MacArthur Boulevard to the west, Birch Street to the north and northeast, and Von Karman Avenue to the east and south The project site is located on the approximately 64,897 square foot (1.49 acres) in the central portion of Office Site A, abutting MacArthur Boulevard and the entry drive to Office Site A from MacArthur Boulevard between Birch Street and Von Karman Avenue. Office Site B is located immediately south of Office Site A and bounded by Von Karmen Avenue, Birch Street, MacArthur Boulevard, and Jamboree Road. Section 2.1.2 Protect Area--page 2 -3: paragraph 1 The proposed project site is currently improved with paved surface parking, ornamental landscaping and trees, and hardscape area surrounding the existing 9 -story office building (Figure 2 -2). The proposed two-story office building would replace the existing surface parking spaces and ornamental landscaping and trees in the northern portion of the project site while additional surface parking spaces would replace the existing ornamental landscaping and trees and hardscape area in the southern portion of the project site near the existing 9 -story office building. The proposed project site has a relatively flat terrain due to past grading and site development activities associated with the existing use of the site. On -site elevations range from approximately 47.5 to 48.5 feet above mean sea level (amsl). Section 2.2 Description of the Proposed Proiect: page 2 -3: paragraph 3 The proposed project includes the development of a two-story (40 -feet tall or maximum 88.5 feet amsll, 21,311 gross square foot (GSF) office building above one subterranean parking level consisting of 18 spaces (Figure 2-3) on the approximately 64,897 square foot (1.49 acres) site. The remaining 54,197 square feet (1.24 acres) of the site includes 98 parking spaces and ornamental landscaping and trees. The proposed project requires a General Plan Amendment (GP2006 -003) to allow an additional 24,016 GSF of general office within Office Site A for the Koll Center Newport of the Airport Area (Statistical Area L-4); however, the proposed project would only utilize 21,311 square feet of this area. The proposed project would also require an amendment to the Koll Center Newport Planned Community (PD 2006 -0001) to allow the transfer of 24,016 net square feet (NSF) of unused retail (10,000 NSF), restaurant (9,535 NSF), and office (4,481 NSF) uses from Office Site B to Office Site A. " Use n,_...it (UP 2006 008) is also reqk4ed 4e allow the ftlansfer ef develepment imeasity from Offlee Site B to Offiee Site A withift the Kell Center Ne"ea4 Planned Gemmunity. Section 2.2 Description of the Proposed Proiect: pave 2 -8: paragraph 1 The proposed project would provide approximately 16,844 square feet of area for ornamental landscaping and entry plaza. or 26 percent of the 1.49 -acre project area. tFees. The proposed landscaping would integrate the project with the mature landscaping of Koll Center Newport by maintaining and complimenting the existing Eucalyptus and Liquidambar tree vocabulary and ground cover /shrub foundation planting Complimentary accent specimen landscaping will provide visual focus at the building's main plaza and entry. The existing 30 foot landscape setback on MacAruthur Boulevard as well as the existing Mimeter landscaping along the entry drive will not be altered by the proposed proiect. Section 3.1 Aesthetics: page 3 -2: paragraph 6 The proposed project would change the. existing use of the site from paved surface parking spaces and ornamental landscape and hardscape areas to a two -story (40 -feet tall or maximum 88.5 feet amsll office building with one level of subterranean parking surrounded by surface parking areas and ornamental landscaping and trees. Section 3.3 Air Onality: page 3-8: paragraph 9 Mitigation Measure 33-8: Where vehicles leave the construction site and enter adjacent public streets, the streets shall be swept daily of voushed d&vm a the end of the weAE day to remove soil tracked onto the paved surf ace. Any visible track -out extending for more than fifty (50) feet from the access point shall be swept or washed- within thirty (30) minutes of deposition. Section 3.7 Hazards and Hazardous Materials: page 3-22: paragraph I The regulations include established measures for proper storage, use, and disposal, and a risk management and prevention plan for accidents. Truck oil change, equipment maintenance, and other activities that may release hazardous materials during construction would be conducted in accordance with existing regulations, such as the National Pollutant Discharge Elimination System (NPDES), to prevent soil and water contamination and accidents. Compliance with all applicable regulations would prevent spills and accident conditions that could release hazardous materials into the environment. Further, traffic safety signs and controls would be provided to create safe driving conditions and prevent vehicle accidents. Thus, potential impacts caused by hazardous materials accidents are expected to be less than significant. Section 3.7 Hazards and Hazardous Materials: page 3 -22: paragraph 4 No Impact. According to EPA, the project site is not listed on the Department of Toxic Substances Control Hazardous Waste and Substance List (Cortese List) — the list of hazardous materials sites compiled pursuant to Government Code Section 65962.5. The proposed project site is also not listed on the U.S. EPA Envirofacts Toxics Release Inventory (TRI). Therefore, implementation of the proposed project would not result in a risk to the public or the environment. As discussed above, the nearest hazardous material users are Conexant Systems, Inc. and Newport Fab LLC at 4311 and 4321 Jamboree Road, respectively, approximately 0.5 miles southeast of the proposed project site. No impacts on the public or the environment caused by these hazardous material users would occur with because of the proposed project. Section 3.8 Hvdroloev and Water Duality: ogee 3 -24: paragraph 5 Less than Significant Impact with Mitigation Incorporated. The City of Newport Beach is located within Region 8 (the Santa Ana Regional Water Quality Control Board [RWQCBj). The City of Newport Beach is a co- pexmittee with Orange County in the NPDES Program. Accordingly, the Project Applicant is would-be required to comply with all applicable Federal, State, regional, and local regulations to protect water quality during construction and operation of the proposed project as described in further detail below. Section 3.8 Hydrology and Water Ouality: nage 3-27: naraeranh 2 Less than Significant Impact. As discussed throughout this section, operation of the proposed office building would not substantially alter the amount of impervious surfaces on the proposed project site; thus, the amount of runoff water generated on -site and entering existing and planned stormwater drainage facilities would not be substantially increased by operation of the proposed project. Street sweeping of public streets is provided to remove and prevent debris from entering the storm drain system. The City requires catch basin stenciling to discourage waste disposal from entering into the storm drain system. Continued implementation of these city-wide programs would further reduce potential stormwater pollution from development. Furthermore,_. mandatory compliance with WQMP.. requirements regarding the implementation of on -site stormwater pollution mitigation and treatment and other BMPs for urban stormwater pollutant prevention would ensure that substantial additional sources of polluted runoff are not generated on -site. Section 3.9 Land Use and Planning: Page 3 -32: paragranh 1 The proposed project is located within the Koll Canter Newport Planned Community (KCN PC). The City has adopted Planned Community District Regulations (PC -154 Koll Center) that establish development standards and use regulations to implement the General Plan As shown in Figure 3 -2, Planned Community Map, this planned community area is bounded by Campus Drive, Jamboree Road, and MacArthur Blvd. Areas within the Planned Community text are broken down still further into what are referred to as office site areas (KCN Office Sites A -G) as well as two industrial areas, a courthouse, and a retail service site. The proposed project is located within KCN ice Site A of the KCN PC. This area includes Administrative, Professional. Financial Commercial (APF) uses. Office Site B is located immediately south of Office Site A and bounded by Von Kannarn Avenue, Birch Street. and Jamboree Road. Section 3.9 Land Use and Planning: nage 3 -34: uaraeraah 2 Less than Significant Impact. The proposed project would involve a general plan amendment, and an amendment to the Planned Community text. as well as a ■ se °°^^" Each of these areas is discussed in further detail below. Section 3.9 Land Use and Planning: nage 3-34: naraerauh 3 The current General Plan land use designation on the proposed project site is Administrative, Professional, Financial (APF). The nronosed office development is consistent with the APF designation and nNo change in land use designation is proposed by the project. The General Plan Amendment is required to amend the estimated growth for Statistical Area 14 to allow for an additional 24,016 square feet of development within this area. The additional square footage would be transferred from one portion of the Airport Area to another (from KCN Office Site B to KCN Office Site A). The transfer would add to increase the existing total within KCN Office Site A to 834,201 and reduce the square footage within KCN Office Site B to 1,060,146. Since the 1988 Land Use Element did not account for the unbuilt floor area that the PC Text allowed in Office Area B. an amendment to the Land Use Element is being sought to increase the floor area in Office Site B by the unbuilt amount identified in the PC Text and then transferring it to Office Site A to facilitate the development of the new Koll Company Headquarters. Section 3.9 Land Use and Planning: pave 3 -35: paragraph 1 The proposed project's increase of square footage within KCN Office Site A of the Airport Area would not result in a conflict with the General Plan. The increase of square footage once accounted for, would result frem in a transfer of available square footage fiam eae erg of within the Airport Area from KCN Office Site B to KCN Office Site A. to anetllee is allowed in the GeaeFal Plan. As such, the net result of the project would only slightly alter the distribution of allowed square footage but would not result in new square footage that could result in higher population, housing, or work force projections that could lead to increased traffic trips, decreased air quality or a larger need for public services. Additionally, the proposed project would conform to the two land use policies discussed above and would not conflict with or serve to restrict the other land use policies found in the General Plan. A less than significant impact to the General Plan would result with implementation of the proposed project. Section 3.9 Land Use and Planning: ogee 3 -35: paragraph 2 and 3 As discussed above, a Use Permit is not required for the proposed project. As such, the text has been modified to remove this discussion. Use permit In order ie w f the is ................ ......are r ..t..ges Lk en V GN nQ B and KON OS n a use ennit .. l.i Section 3.11 Noise: page 3 -39: paragraph 1 Less than Significant Impact with Mitigation. Implementation of the proposed project would result in short - term construction - related noise increases. Additionally, long -term increased noise levels could result from the introduction of office uses and associated vehicle traffic along the adjacent roadways. Short- and long -teen noise level increases are discussed in further detail in the sections that follow. Section 3.11 Noise: page 341: paragraph 3 During construction, noise impacts would occur from grading, equipment operations, and other construction activities. Noise from scrapers, jackhammers, pavers, and other types of construction equipment may range from 75 to 100 dBA at 50 fed from the source. Typical operating cycles may involve one to two minutes of full power operation followed by three or four minutes at a lower power. Construction noise would occur WWI Section 3.11 Noise: page 3 -39: paragraph 1 Less than Significant Impact with Mitigation. Implementation of the proposed project would result in short - term construction - related noise increases. Additionally, long -term increased noise levels could result from the introduction of office uses and associated vehicle traffic along the adjacent roadways. Short- and long -teen noise level increases are discussed in further detail in the sections that follow. Section 3.11 Noise: page 341: paragraph 3 During construction, noise impacts would occur from grading, equipment operations, and other construction activities. Noise from scrapers, jackhammers, pavers, and other types of construction equipment may range from 75 to 100 dBA at 50 fed from the source. Typical operating cycles may involve one to two minutes of full power operation followed by three or four minutes at a lower power. Construction noise would occur on a short-term and temporary basis, when development is under construction. As discussed in Mitigation Measure 3.11 -1, construction activities would be confined to the designated daytime hours, 7 AM to 6:30 PM on weekdays and 8 AM to 6 PM on Saturday, and would comply with the noise regulations of the City of Newport Beach. Thus, noise from the construction activities on the site would be confined to the daytime hours, when noise sensitivity is less. Inclusion of this mitigation measure would be reduced noise impacts to less than significant levels. Section 3.11 Noise: page 342: paragraph 2 The project is approximately V4-mile southeast of the Airport property boundary line. Within this zone, the height of project is restricted to 200 feet above mean sea level or less to ensure the safety of air traffic and ground structures. Because the project is proposed to be 40 88 feet in height above mean sea level, it will not conflict with the planning guidelines of the Airport Environs Land Use Plan (AELUP). The proposed project lies within the 60 dBA in CNEL, but outside of the 65 dBA in CNEL, contours generated from airport traffic. With standard building design guidelines, the proposed project will keep interior noise levels generated from air traffic at a level that is less than significant. Furthermore, as the project will not affect aircraft or airport operations, there will be no increase in the exposure of people in the area to noise levels associated with these sources. Section 3.12 Population and Housing: page 343: paragraph 3 Less than Significant Impact. The project proposes a two-story office development and will serve as a corporate headquarters employing approximately 50 persons. These Egmployees are currently working e sewhere in Newport Beach; therefore, no immediate local or regional growth in population or employment will occur. No major infrastructure is needed to serve the proposed project. Therefore, the population growth resulting from the proposed project is not expected to result in a significant impact. 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