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HomeMy WebLinkAbout2014-08-27 GPLCP_Agenda PacketCity of Newport Beach y General Plan/LCP Implementation Committee Agenda s Newport Beach Civic Center - 100 Civic Center Drive Newport Coast Meeting Room (Bay E, Second Level, Room 2017) Wednesday, August 27, 2014 - 12:30 p.m. to 2:30 p.m. Committee Members: Staff Members: Edward Selich, Mayor Pro Tem (Chair) Kimberly Brandt, Community Development Director Tony Petros, Council Member Brenda Wisneski, Deputy Community Development Director Nancy Gardner, Council Member Patrick Alford, Planning Manager Bradley Hillgren — Planning Commissioner Leonie Mulvihill, Assistant City Attorney Kory Kramer — Planning Commission Vice Chair James Campbell, Principal Planner Jay Myers, Planning Commission Secretary Michael Toerge — At -Large Member 1) CALL MEETING TO ORDER 2) ROLL CALL 3) APPROVAL OF MINUTES Recommended Action: Approve June 25, 2014 Minutes (attached) 4) CURRENT BUSINESS A. Implementation of CLUP Lower -Cost Visitor Accommodation Policies. A discussion on implementing Coastal Land Use Plan (CLUP) policies relating to visitor accommodations. Recommended Action: Review attached memorandum and provide direction to staff. 5) COMMITTEE ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON -DISCUSSION ITEM) 6) PUBLIC COMMENTS Public comments are invited on agenda and non -agenda items generally considered to be within the subject matter jurisdiction of the Committee. Speakers must limit comments to three (3) minutes. Before speaking, we invite, but do not require, you to state your name for the record. The Committee has the discretion to extend or shorten the speakers' time limit on agenda or non -agenda items, provided the time limit adjustment is applied equally to all speakers. 7) NEXT MEETING 9) ADJOURNMENT This Committee is subject to the Ralph M. Brown Act. Among other things, the Brown Act requires that the Committee's agenda be posted at least seventy-two (72) hours in advance of each regular meeting and that the public be allowed to comment on agenda items before the Committee and items not on the agenda but are within the subject matter jurisdiction of the Committee. The Committee may limit public comments to a reasonable amount of time, generally three (3) minutes per person. It is the intention of the City of Newport Beach to comply with the Americans with Disabilities Act ("ADA") in all respects. If, as an attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, the City of Newport Beach will attempt to accommodate you in every reasonable manner. If requested, this agenda will be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. Please contact the City Clerk's Office at least forty-eight (48) hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible at (949) 644-3005 or citvclerk(cDnewportbeachca.gov. City of Newport Beach General Plan/LCP Implementation Committee Minutes Date: June 25, 2014 Location: Newport Beach Civic Center — 100 Civic Center Drive Newport Coast Meeting Room (Bay E, Second Level, Room 2017) Members Edward Selich, Mayor Pro Tem (Chair), Nancy Gardner, Council Present: Member; Tony Petros, Council Member; and Michael Toerge, Member -At -Large Members Absent: Fred Ameri, Planning Commissioner; Bradley Hillgren, Planning Commission Chair; Jay Myers, Planning Commissioner; Staff: Kimberly Brandt, Community Development Director; Brenda Wisneski, Deputy Community Development Director; Leonie Mulvihill, Assistant City Attorney; Daniel Campagnolo, Systems and Administration Manager; and Patrick Alford, Planning Program Manager Public: Jim Mosher, Jerry King, Donald Schmitz, Brion Jeannette, and Tom Mathews 1) CALL MEETING TO ORDER The meeting was called to order at approximately 12:33 pm. 2) ROLL CALL Planning Commissioners Ameri, Hillgren, and Myers were absent. 3) APPROVAL OF MINUTES The minutes of the May 28, 2014, meeting were approved as amended by a vote of 3-0 with Council Member Petros abstaining. 4) CURRENT BUSINESS A. Coastal Commission Update Mr. Patrick Alford reported that the June 23, 2014, meeting with California Coastal Commission (CCC) had to be rescheduled because CCC staff had not heard back from their legal staff on the question of incorporating the Categorical Exclusion (Cat Ex) in the Implementation Plan (IP). The meeting was rescheduled to July 1, 2014. Council Member Gardner commented that the tour of Newport Banning Ranch on June 11, 2014, gave the CCC a realistic view of the challenges of the site. General Plan/LCP Implementation Committee June 25, 2014, Minutes Page 2 Chair Selich commented that the CCC staff is focusing on the cities that received LCP grants. Ms. Brandt added that the City continues to struggle with getting commitment s from CCC staff even though Newport Beach is considered a high-priority city. Mr. Alford added that the City will be submitting an application for the second of grants round next week. B. Coastal Zone Permit and Appeal Jurisdiction Analysis Mr. Alford and Mr. Campagnolo presented a set of maps providing a quantitative analysis of permit and appeal areas. The Committee proceeded to discuss the following: • Costs and benefits to the City from certification. • Potential consequences of not pursuing certification. • Strategies for negotiating with CCC staff. • Dealing directly with the commissioners. Mr. Schmitz related his experience with such issues and stated that most communities were happier processing their own coastal permits rather than continue to go through the CCC. A discussion ensued on narrowing the scope of the appeal areas and broadening the scope of the Cat Ex. The Committee proceeded to discuss potential areas of impasse, including the coastal canyons. In response to a question from Chair Selich, Mr. Schmitz suggested that the City would be in a strong position to communicate with commissioners that it is not fair to give up the Cat Ex in the canyons. Ms. Brandt went over how the City currently determines the predominate line of existing development (PLOED) and suggested that the City could continue to do so on a case-by-case basis in the LCP. The Committee proceeded to discuss the following: • Establishing a "White Hole" deferred certification area for the canyon properties. • Work remaining on the IP. • The amount of time CCC staff would spend reviewing the IP. Chair Selich directed staff wrap up work on the IP and return it to the Committee. Mr. Mosher commented on CCC acceptance of City procedures in original permit jurisdiction areas, the Cat Ex and appeals, and rules relating to appeals. Staff responded to Mr. Mosher's questions. General Plan/LCP Implementation Committee June 25, 2014, Minutes Page 3 C. Potential Coastal Zone Boundary Adjustments Mr. Alford and Mr. Campagnolo presented exhibits depicting properties that are outside the Coastal Zone in the certified Coastal Land Use Plan, but which are actuality within the Coastal Zone pursuant to the CCC -interpreted boundary. Chair Selich acknowledged the importance of keeping these properties out of the Coastal Zone through boundary adjustments. Following a discussion by the Committee, staff was directed to staff to proceed with only the boundary adjustments that would not add properties to the Coastal Zone. Mr. Mosher commented on the boundary adjustment adjacent to Hoag Hospital. 5) COMMITTEE ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON - DISCUSSION ITEM) None. 6) PUBLIC COMMENTS Mr. Mosher commented on the CCC staff's response to the Land Use Element Amendment. 7) NEXT MEETING Wednesday, July 23, 2014, at 12:30 p.m. 8) ADJOURNMENT The meeting adjourned at approximately 2:01 p.m. Edward Selich, Chair Memorandum CITY OF NEWPORT BEACH COMMUNITY DEVELOPMENT DEPARTMENT 100 CIVIC CENTER DRIVE NEWPORT BEACH, CA 92660 (949)644-3200 To: General Plan/LCP Implementation Committee From: Community Development Department, Planning Division Date: August 20, 2014 Re: Implementation of CLUP Lower-cost Visitor Accommodation Policies The Coastal Land Use Plan (CLUP) contains several policies addressing visitor accommodations (i.e., hotels, motels, bed and breakfast inns, recreational vehicle parks, and time shares). These CLUP polices generally expand on Coastal Act sections that are intended to protect and encourage lower cost visitor and recreation facilities (see attached Summary of Coastal Act and CLUP Policies Relating to Visitor -Serving and Recreational Development). These CLUP polices call for the City to establish regulations and programs that are not in the current Zoning Code and that will need to be addressed in the Implementation Plan (IP). Therefore, staff needs direction from the Committee on how these policies should be carried out in the IP. A. Identification of Lower -Cost Visitor Accommodations CLUP Policy 2.3.3-8 requires the City to devise a method of determining whether a visitor accommodation is low, moderate or high cost, relative to other accommodations in the City's Coastal Zone. Potential Approaches: 1. Project by Project. Require coastal development permit applications for projects involving the demolition, conversion, remodel, or development of visitor accommodations to provide information on current and/or proposed rates and a survey of rates of other City Coastal Zone visitor accommodations. 2. Set Rate. Define lower-cost visitor accommodations by a specific per night rate (e.g., $150/night or less), adjusted periodically by an appropriate price index. 1 3. Percentage. Define low, moderate, and high cost visitor accommodations as a percentage of the median room rate in the City's Coastal Zone (e.g., low = 80 percent or lower, moderate = 81 to 120 percent, and high = above 120 percent). Survey data could be conducted periodically by the City or provided by the applicant. B. Determination of Impacts Under CLUP Policy 2.3.3-1, new development that eliminates 1) existing lower-cost visitor accommodations, or 2) provides high-cost visitor accommodations, or 3) provides time shares to mitigate the impact lower-cost visitor accommodations. The mitigation must be commensurate with the impact; however, policy provides no guidance for determining the impact. Potential Approaches: 1. Project by Project. Require coastal development permit applications for projects involving the demolition, conversion, remodel, or development of visitor accommodations or time shares to conduct an analysis to determine impacts of the development on lower-cost visitor accommodations. 2. Limit the Definition of Impact. Establish that CLUP Policy 2.3.3-1 is only applicable to projects that eliminate existing lower-cost visitor accommodations. C. Mitigation Policy CLUP 2.3.3-1 also requires mitigation for impacts to lower-cost visitor accommodations by either providing lower-cost visitor accommodations or payment of an in -lieu fee to the City, which will be used to provide lower-cost visitor accommodations. Potential Approaches: 1. Provide or Pay. Require projects that impact lower-cost visitor accommodations to provide lower-cost visitor -serving accommodations, either on- site or elsewhere in the Coastal Zone, or pay an in -lieu fee. 2. Project by Project. Require projects that impact lower-cost visitor accommodations to provide a mitigation plan. The mitigation plan could include providing new lower-cost visitor accommodations, protecting existing lower-cost visitor accommodations elsewhere, supporting lower-cost visitor accommodations programs (i.e., campgrounds, RV parks, hostels, etc.), payment of in -lieu fees, or any combination thereof. 2 D. Rehab Feasibility CLUP Policy 2.3.3-8 requires a project proposing to demolish existing visitor accommodations to demonstrate that the rehabilitation of the units is not feasible. Potential ADDroach: Require a feasibility analysis along the lines of what the Zoning Code requires for the protection of affordable housing in the Coastal Zone under the Mello Act. The feasibility analysis would be prepared by an independent firm and take into account economic, environmental, social, and technical factors. E. Time Shares CLUP Policies 2.3.1-13 and 2.3.3-7 prohibit the conversion of any hotel or motel unit with a certificate of occupancy on or before July 14, 2009, to a limited -use overnight visitor accommodation (LUOVA), which includes time shares, fractional ownerships, and condominium -hotels. There is an exemption for up to 88 units at the Hyatt Newporter. Potential ADDroach: Incorporate the prohibit into the IP along with other City time share regulations, including: 1. The prohibition on the conversion of existing residential dwelling units to time shares. 2. The requirement that time share projects have a minimum of 100 units, unless developed in conjunction with a resort hotel of 300 or more units. 3. The requirement that time share projects include substantial recreational amenities, such as golf courses, tennis courts, swimming pools, etc. 3 Summary of Coastal Act and CLUP Policies Relating to Visitor -Serving and Recreational Development Coastal Act Policies 30213. Lower cost visitor and recreational facilities shall be protected, encouraged, and, where feasible, provided. Developments providing public recreational opportunities are preferred. 30221. Oceanfront land suitable for recreational use shall be protected for recreational use and development unless present and foreseeable future demand for public or commercial recreational activities that could be accommodated on the property is already adequately provided for in the area. 30222. The use of private lands suitable for visitor -serving commercial recreational facilities designed to enhance public opportunities for coastal recreation shall have priority over private residential, general industrial, or general commercial development, but not over agriculture or coastal -dependent industry. 30223. Upland areas necessary to support coastal recreational uses shall be reserved for such uses, where feasible. 30250 (c). Visitor -serving facilities that cannot feasibly be located in existing developed areas shall be located in existing isolated developments or at selected points of attraction for visitors. CLUP Polices 2.3.1-13. Any proposal to demolish existing overnight accommodations shall be required to demonstrate that rehabilitation of the units is not feasible. Any hotel/motel rooms for which a certificate of occupancy has been issued on or before the effective date of adoption of Coastal Land Use Plan Amendment No. 2007-001 (NPB-MAJ-1-07) shall not be permitted to convert to a Limited Use Overnight Visitor Accommodation, except as provided in Policy 2.3.3-7. 2.3.3-1. Lower-cost visitor and recreational facilities, including campgrounds, recreational vehicle parks, hostels, and lower-cost hotels and motels, shall be protected, encouraged and, where feasible, provided. Developments providing public recreational opportunities are preferred. New development that eliminates existing lower-cost accommodations or provides high-cost overnight visitor accommodations or limited use overnight visitor accommodations such as timeshares, fractional ownership and condominium -hotels shall provide lower-cost overnight visitor accommodations commensurate with the impact of the development on lower-cost overnight visitor accommodations in Newport Beach or pay an "in -lieu" fee to the City in an amount to be determined in accordance with law that shall be used by the City to provide lower-cost overnight visitor accommodations. 2.3.3-2. Encourage new overnight visitor accommodation developments to provide a range of rooms and room prices in order to serve all income ranges. Consistent with Summary of Coastal Act and CLUP Policies Relating to Visitor -Serving and Recreational Development Section 30213 of the Coastal Act, the City shall in no event (1) require that overnight room rental be fixed at an amount certain for any privately owned and operated hotel, motel, or other similar visitor -serving facility located on either public or private land; nor (2) establish or approve any method for the identification of low or moderate income persons for the purpose of determining eligibility for overnight room rentals in any such facilities. 2.3.3-4. Encourage visitor -serving and recreational developments that provide public recreational opportunities. 2.3.3-7. Permit limited -use overnight visitor accommodations on the hotel resort property located at 1107 Jamboree Road where such accommodations are provided together with traditional overnight, hotel visitor accommodations and which shall be subject to specific restrictions, including on: quantity (no less than 391 units shall be traditional hotel units available for transient overnight use by the general public year round and no more than 88 of the total 479 units planned may be limited -use overnight visitor accommodations), duration of owner use of such facilities (maximum use of 90 days per calendar year with a maximum of 29 days of use during any 60 day period), management of the units as part of the hotel facility and allowance for transient overnight use by the general public when not owner occupied; all of which shall be further defined in the implementing regulations for this land use plan (when such regulations are certified) and through the coastal development permit process. 2.3.3-8. A method to define whether a facility providing overnight accommodations is low, moderate, or high cost for the City of Newport Beach coastal zone shall be developed in the implementing regulations for this land use plan (when such regulations are certified) and through the coastal development permit process. BURNS, MARLENG From: Alford, Patrick Sent: Monday, August 25, 2014 8:18 AM To: Burns, Marlene Subject: FW: GP- Local Coastal Plan Implementation- COMMENTS FOR THE PUBLIC RECORD Please distribute to the Committee and "Additional Materials Received" From: Brandt, Kim Sent: Monday, August 25, 2014 8:09 AM To: Alford, Patrick; Wisneski, Brenda Subject: FW: GP- Local Coastal Plan Implementation- COMMENTS FOR THE PUBLIC RECORD FYI. From: Denys Oberman[mailto:dho0obermanassociates.com] Sent: Sunday, August 24, 2014 5:31 PM To: Brown, Leilani; City Clerk's Office; Brandt, Kim; eselich@roadrunner.com; Petros, Tony; Gardner, Nancy Cc: Linda Klein; dho0obermanassociates.com; 'Kathryn Branman'; Nora Lehman; Drew Wetherholt; Ed Cook; ddixon@)dianedixon20l4.com Subject: GP- Local Coastal Plan Implementation- COMMENTS FOR THE PUBLIC RECORD PLEASE DISTRIBUTE TO MEMBERS OF THE GPLCP Committee AND ENTER INTO THE PUBLIC RECORD Re. CEQA Compliance and "Lower Cost Visitor Accomodation" policy Committee Members: As we are interested parties, and are unable to attend the Committee Session scheduled for August 27,2014 where this topic is to be addressed, we wish to make the following comments: 1. The Lido/Balboa Penninsula coastal area current has a number of "lower-mid level quality/ cost" visitor accomodations in the form of hotels and motels that currently operate in this coastal zone. It also offers numerous vacation homes, that accommodate one to multiple families per unit. There are NO more upscale hotel -type accomodations in this coastal zone. 2. CEQA encourages public access—right now, Newport Beach does not offer hotel/motel visitor accomodations to serve the full range of public demand. 3. We understand staff's desire for guidance. However, we believe it is potentially misleading to suggest guidance that proposes specific Price Points as the metric for making this type of determination. a) Hotel/motel pricing and specificially Average Daily Rates, are not static, and vary widely, even within a particular locale, dependent on such Market –based factors as seasonality, special events , weather,etc. Daily rates for a particular room can swing as much as 80% throughout the year.(ref. studies of experts such as PKF Consulting ). Therefore, a particular price point is potentially misleading and not a sound indicator on which to establish a broad -sweeping interpretation as to whether any particular project is "lower-cost". Even Ratings(star system) can take a like- for- like specific project and,dependent on its location, and vary considerably. b) More meaningful is the overall offering in a particular coastal area -----are there overall, offerings which accommodate visitors across a broad public spectrum? c) There can be no doubt that the Lido/Balboa Penninsula coastal area is UNDER -SERVED OVERALL WITH HOTEL ACCOMODATIONS, AND SERVED ONLY BY LOWER -END HOTE/MOTEL/INN-TYPE ACCOMODATIONS AT THIS TIME. d) Furthermore, in an area subject to Revitalization, and where there are both resident and visitor - serving objectives in close proximity, it is important to maintain uses which help economically uplift an under -performing area, and are complimentary to the surrounding neighborhood( ex. Would be the Lido Hotel project). Representative Lower -end accomodations which already exist in the Lido /Balboa Penninsula coastal zone follows: Best Western Little Inn by the Bay There are currently NO upscale -type Hotel accomodations to serve this coastal zone. We request that the Committee direct staff to focus on Items b -d, rather than attempting to establish specific Price Point that could well be meaningless, and subject to misinterpretation. Thank you. Denys H. Oberman Resident We request that the Committee direct staff to address to Regards, Denys H. Oberman, CEO NOBERMAN Shategy €end fin©ncraI Advwn OBERMAN Strategy and Financial Advisors 2600 Michelson Drive, Suite 1700 Irvine, CA 92612 Tel (949) 476-0790 Cell (949) 230-5868 Fax (949) 752-8935 Email: dho(a-)_obermanassociates.com CONFIDENTIALITY NOTICE: The documents accompanying this transmission contain confidential information belonging to the sender which is legally privileged. 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