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Home My WebLink About03 - Annual Reviewof Uptown Newport Development Agreement - PA2014-039COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION 100 Civic Center Drive, P.O. Box 1768, Newport Beach, CA 92658 -8915 (949) 644 -3200 Fax: (949) 644 -3229 www.newportbeachca.gov CITY OF NEWPORT BEACH ZONING ADMINISTRATOR STAFF REPORT April 24, 2014 Agenda Item No. 3 SUBJECT: Annual Review of Uptown Newport Development Agreement (PA2014 -039) 4311 -4321 Jamboree Road APPLICANT: Shopoff Management, Inc. (Uptown Newport LP) PLANNER: Rosalinh Ung, Associate Planner (949) 644 -3208, rung(c)newportbeachca.gov ZONING DISTRICT /GENERAL PLAN • Zone: PC 58 (Uptown Newport) • General Plan: MU -H2 (Mixed -Use Horizontal 2) PROJECT SUMMARY An annual review of Development Agreement No. DA2012 -003 for Uptown Newport Planned Community, pursuant to Section 15.45.080 of the Newport Beach Municipal Code and Section 65865.1 of the California Government Code. RECOMMENDATION 1) Conduct a public hearing; and 2) Find the annual review is exempt from the California Environmental Quality Act ( "CEQA ") pursuant to Section 15321, Class 21 (Enforcement Actions by Regulatory Agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; 3) Find that the applicant has demonstrated good faith compliance with the terms of Development Agreement No. DA2012 -003; and 4) Receive and file the Annual Report of Development Agreement for Uptown Newport Planned Community (Attachment No. ZA 2). 1 INTENTIONALLY BLANK PAGE 9 Annual Review of Development Agreement No. DA2012 -003 Zoning Administrator April 24, 2014 Page 2 Section 15.45.080 of the Municipal Code requires the City to periodically review development agreements to determine if the applicant has complied with the terms of the agreement. This review should be conducted at least once every 12 months. The applicant is required to demonstrate good faith compliance with the terms of the agreement, and should the Zoning Administrator find that the applicant has not complied in good faith with the terms of the agreement; the Zoning Administrator should refer the matter to the City Council. Background On March 12, 2013, the City Council adopted Ordinance No. 2013 -6, approving Uptown Newport Development Agreement for the development of a 25 -acre, mixed -use residential project consisting of 1,244 residential units, two one -acre public parks and 11,500 square feet of retail uses. The agreement became effective on April 22, 2013. The agreement term is 15 years, with two 5 -year extensions and the earliest expiration could be in 2028. The Development Agreement is available online at: http://www.newportbeachca.gov/developmentagreements. On June 11, 2013, the City Council adopted Ordinance No. 2013 -10 delegating annual reviews to the Zoning Administrator. Annual Review The Shopoff Group continues to plan for the first phase of development of the Uptown Newport Planned Community. They are preparing infrastructure plans and they have identified the Picerne Group as the first developer of two apartment buildings within Phase 1. Phase 1 demolition plans have been submitted to the City for review and approval. The existing office building within Phase 1 is now vacant and the site has been fenced and many of the parking lot trees have been removed. Demolition is expected to commence in the spring of 2014, followed shortly by grading and infrastructure development. Building permits for new residential development have not been issued so no public benefit fees required pursuant to the DA are due at this time. After reviewing the attached annual report and applicable documents, staff believes that the applicant is in good faith compliance with the terms and conditions of the Development Agreement. ENVIRONMENTAL REVIEW This annual review is exempt from the California Environmental Quality Act ( "CEQA ") pursuant to Section 15321, Class 21 (Enforcement Actions by Regulatory Agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it TmpIt:10 -15 -13 S Annual Review of Development Agreement No. DA2012 -003 Zoning Administrator April 24, 2014 Page 3 has no potential to have a significant effect on the environment. This section exempts actions by regulatory agencies to enforce or revoke a lease, permit, license, certificate, or other entitlement for use issued, adopted, or prescribed by the regulatory agency or enforcement of a law, general rule, standard, or objective, administered or adopted by the regulatory agency. PUBLIC NOTICE Notice of this review was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights -of -way and waterways) including the applicant and posted on the subject property at least 10 days before the scheduled hearing, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. APPEAL PERIOD: An appeal may be filed with the Director of Community Development within 14 days following the date of action. For additional information on filing an appeal, contact the Planning Division at (949) 644 -3200. Prepared by: (Q�� o alinh Ung As ociate Planner JC/M Attachments: ZA 1 Vicinity Map ZA 2 Uptown Newport Development Agreement Annual Report TmpIt:10 -15 -13 -4 Attachment No. ZA 1 Vicinity Map 5 INTENTIONALLY BLANK PAGE w Annual Review Uptown Newport Development Agreement (PA2014 -039) 4311 -4321 Jamboree Road INTENTIONALLY BLANK PAGE 2 Attachment No. ZA 2 Uptown Newport Development Agreement Annual Report 9 INTENTIONALLY BLANK PAGE 10 S&6Roff P REAL ESTATE INVESTMENT CAPITAL March 7, 2014 City of Newport Beach City Attorney 100 Civic Center Drive Newport Beach, California 92660 Attention: Ms. Leonie Mulvihill RE: Annual Report for Uptown Newport Development Agreement No. DA2012 -003 Dear Ms. Mulvihill: This Annual Report for the Uptown Newport Development Agreement DA2012 -003 (the "Agreement') is being provided to the City pursuant to Section 7 of the Agreement. Uptown Newport is a mixed use development consisting of: 1,244 residential units; 11,500 square feet of retail uses, and; two 1 -acre public parks on approximately 25.05 acres of real property located at 4311 -4321 Jamboree Road, Newport Beach, California. On March 23, 2013 (the "Agreement Date'), the City Council adopted its Ordinance No. 2013 -6 (the "Adopting Ordinance "), finding the Agreement to be consistent with the City of Newport Beach General Plan and approved the Agreement. The Effective Date is thirty days after the Agreement Date, or April 22, 2013. The Uptown Newport project is proceeding with development of Phase 1 of the Uptown Newport Planned Community, with site development activities expected to commence in the spring of 2014. The current plan for Phase 1 is to develop approximately 483 apartment units in two buildings on the parcels that front Jamboree Road and for -sale townhomes or condominiums on the parcels that surround the Phase 1 park. The number of for -sale units has not yet been determined. The apartment buildings will include approximately 97 affordable apartment units that will be incorporated into the same buildings and the market rate apartments. A tentative schedule of development activities planned for Phase 1 development is provided below for your reference. Please note that this is a tentative schedule and subject to change: • Demolition of the building and parking lots at 4311 Jamboree: mid -April 2014 • Commence Grading: June 2014 • Commence Construction of For Sale Town homes/Co ndos: November 2014 • Commence Construction of Apartments: January 2015 A member of The Shopoff Group of Companies www.shopoff.com I Main: 949 - 417 -1396 I Fax: 949 -417 -1399 1 info ®shopoff.com 1 2 Park Plaza, Suite 700, Irvine, California 92614 11 Ms. Leonie Mulvihill March 10, 2014 Page 12 Uptown Newport LP has complied in good faith with the terms and conditions of the DA. A summary of the activities performed by the Landowner, its agents and affiliates during the past year are provided below for the City's review: 1. On June 17, 2013, Shopoff Management, Inc. submitted an application for the Uptown Newport Master Site Development Review (MSDR No. SD2013 -002). The MSDR application includes Phase 1 and 2 development plans that are consistent with the Uptown Newport Phasing Plan of the Planned Community Development Plan (PCDP). Each plan set contained landscape plans, wall and fence plans, lighting plans, signage plans, and civil engineering plans. 2. On September 5, 2013, the Planning Commission of the City of Newport Beach approved Master Site Development Review No. SD2013 -002. 3. Parcel Map No. 2013 -108 was recorded on December 20, 2013, which subdivided the Uptown Newport property into four parcels (Parcels 1 through 4 of Parcel Map No. 2013 -108). 4. A Declaration of Easements benefitting Parcels 1 through 4 of Parcel Map No. 2013 -108 was recorded on December 24, 2013. 5. Pursuant to Section 11 of the Agreement, Uptown Newport LP assigned the Agreement with respect to Parcel 1 of Parcel Map No. 2013 -108 to TSG — Parcel 1, LLC on February 14, 2014. Concurrently, Uptown Newport LP conveyed Parcel 1 of the Uptown Newport property to TSG — Parcel 1, LLC. 6. Pursuant to Section 11 of the Agreement, Uptown Newport LP assigned the Agreement with respect to Parcels 2 and 4 of Parcel Map No. 2013 -108 to Uptown Newport Jamboree, LLC on February 14, 2014. Concurrently, Uptown Newport LP conveyed Parcels 2 and 4 of the Uptown Newport property to Uptown Newport Jamboree, LLC. 7. Pursuant to Section 11 of the Agreement, Uptown Newport LP assigned the Agreement for Parcel 3 of Parcel Map No. 2013 -108 to TPG/TSG Venture 1 Acquisition, LLC on February 14, 2014. Concurrently, Uptown Newport LP conveyed Parcel 3 of the Uptown Newport property to TPG /TSG Venture 1 Acquisition, LLC. 8. On January 23, 2014, representatives of Uptown Newport LP and the above assignees met with City staff at a Development Review Committee meeting to discuss the planned development activities. 9. Uptown Newport submitted the Phase 1 demolition plan for review by the City on February 18, 2014. 10. On February 25, 2014, the City adopted Resolution No. 2014 -18 approving an amendment of Affordable Housing Implementation Plan (AHIP) No. AH2O12 -001 for the Uptown Newport Planned Community. The AHIP amendment allows for up to 100% of the affordable units for the Uptown Newport Planned Community to be developed within Phase 1. Copies of pertinent documents referenced above, including copies of the assignment of the Agreement are enclosed for your reference. A member of The Shopoff Group of Companies www.shopoff.com I Main: 949 - 417 -1396 1 Fax: 949 -417 -1399 1 info ®shopoff.com 1 2 Park Plaza, Suite 700, Irvine, California 92614 12 Ms. Leonie Mulvihill March 10, 2014 Page 13 We look forward to continuing our development efforts for Uptown Newport, and appreciate the City's cooperation in our efforts. Please contact me at (949) 231 -5068 or at brupp @shopoff.com. Should you have any questions or require additional information. Sincerely, Brian G. Rupp Director —Asset Management Cc: Rosalinh Ung, Newport Beach Planning Department Gregory Powers, Jackson DeMarco Tidus & Peckenpaugh Attachments A member of The Shopoff Group of Companies www.shopoff.com I Main: 949 - 417 -1396 I Fax: 949 -417 -1399 1 info ®shopoff.com 1 2 Park Plaza, Suite 700, Irvine, California 92614 13