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HomeMy WebLinkAbout1976 - TENTATIVE TRACT MAP AMENDMENT - 4311 Jamboree Rd RESOLUTION NO. 1976 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH RECOMMENDING CITY COUNCIL APPROVAL OF THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT NO. DA2012-003 FOR THE 25.05 ACRE PLANNED COMMUNITY KNOWN AS UPTOWN NEWPORT LOCATED AT 4311 & 4321 JAMBOREE ROAD (PA2015.015) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. An application was filed by TSG-Parcel 1, LLC. ("Uptown Newport') with respect to a 25.05-acre property located at 4311& 4321 Jamboree Road which has already been approved for the development of up to 1,244 residential dwelling units, 11,500 square feet of retail commercial uses and 2.05 acres of parklands (the 'Project'), legally described as Parcels 1 through 4 of Parcel Map No. 2013-108, requesting an amendment to Development Agreement No. DA2012-003. 2. The applicant proposes to amend the following sections of Development Agreement No. DA2012-003: a. Section 3.1: To defer the payment of public benefit fees to the City from the issuance of building permits to the issuance of certificates of occupancy; and b. Section 3.2.1: To defer the payment of fees in-lieu of parkland dedication for all units at the issuance of the first building permit for any unit to the issuance of building permits on a per-unit basis. 3. The subject property is located within the Uptown Newport Planned Community Zoning District (PC-58) and the General Plan Land Use Element category is Mixed- Use Horizontal 2 (MU-1-12). 4. The subject property is not located within the coastal zone. 5. On February 26, 2013, the Newport Beach City Council ("City") held first reading of Ordinance No. 2013-6 for approval of Development Agreement No. DA2012-003. In addition, on March 12, 2013, the City Council held second reading and adopted Ordinance No. 2013-6 approving Development Agreement No. DA2012-003. Ordinance No. 2013-6 became effective on or around April 11, 2013. 6. Development Agreement No. DA2012-003 is dated March 12, 2013, for reference purposes, and was recorded in the Official Records of Orange County on March 26, 2013, as document number 2013000180939 (the "Development Agreement'). Planning Commission Resolution No. 1976 Page 2 of 5 7. On or around February 14, 2014, Uptown Newport transferred ownership of the Property and assigned the Development Agreement to TSG-Parcel 1, LLC, a Delaware limited liability company, Uptown Newport Jamboree, LLC, a Delaware limited liability company, and TPG/TSG Venture I Acquisition, LLC, a Delaware limited liability company (collectively, the 'Property Owners"). 8. Section 3.1 of the DA requires the payment of a Public Benefit Fee to the City in the sum of Thirty-Two Thousand Five Hundred Dollars ($32,500.00) (subject to an inflationary escalator at the time of payment) per residential dwelling unit developed as part of the Project at the time a building permit is issued for each residential dwelling unit. 9. In addition to constructing and improving two (2) approximately one (1) acre parks, Property Owners are also required to pay fees in-lieu of parkland dedication to the City, based on the pro-rated gross acreage of the final map minus any parkland dedication and applicable credits, for all units included on a final map at the time that the first building permit is issued for a unit within that final map. 10. On January 27, 2015, the Property Owners submitted an application to amend the Development Agreement as set forth in the First Amendment to Development Agreement, attached hereto as "Exhibit A" and incorporated herein by reference (the "First Amendment'). 11. The Uptown Newport Final Environmental Impact Report (SCH No. 2010051094), which consists of the Comments, Responses to Comments, and Revisions to the DEIR (Draft Environmental Impact Report), a Statement of Overriding Considerations, and Mitigation Monitoring and Reporting Program was prepared for the Project in compliance with the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and City Council Policy K-3. 12. The Newport Beach City Council, having final approval authority over the Project, adopted and certified as complete and adequate, the Uptown Newport Final Environmental Impact Report, and adopted "Findings and Facts in Support of Findings for the Uptown Newport Project Final Environmental Impact Report' ("CEQA Findings") contained within Resolution No. 2013-21 on February 26, 2013, which are hereby incorporated by reference. 13. A public hearing was held on March 19, 2015 in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the meeting was given in accordance with the Newport Beach Municipal Code. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this meeting. 07-22-2014 Planning Commission Resolution No. 1976 Page 3 of 5 SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. All significant environmental concerns for the proposed project have been addressed in the previously certified Environmental Impact Report No. ER2012-001 (SCH No. 2010051094), and the City of Newport Beach intends to use said document for the above-noted project, and further that there are no additional reasonable alternative or mitigation measures that should be considered in conjunction with said project. Copies of the previously prepared environmental document are available for public review and inspection at the Planning Division or at the City of Newport Beach website at www.newportbeachca.gov/cegadocuments. SECTION 3. REQUIRED FINDINGS. In accordance with Chapter 15.45 of the Newport Beach Municipal Code, the following findings and facts in support of such findings are set forth: Finding: A. The First Amendment is consistent with the General Plan and the Uptown Newport Planned Community Development Plan (PCDP), Municipal Code and Subdivision Map Act. Facts in Support of Finding: 1 . The Amendment will continue to allow the development of a residential community, containing a mix of housing types, supporting retail and active parklands, consistent with the land uses, densities and intensities of the PCDP which is the zoning document for the Project, the General Plan Land Use designation of Mixed-Use Horizontal-2 and the Airport Business Area Integrated Conceptual Development Plan. 2. The changes included in the Amendment are to defer the timing for the payment of the Public Benefit Fee to be on a per-unit basis upon issuance of certificates of occupancy, instead of building permits, and to change the timing of the payment of fees in-lieu of parkland dedication to a per-unit basis at the time a building permit for an individual Project is issued, rather than issuance of the first building permit for all units within a final map. 3. These changes do not add any lots, units, building sites or structures to the Project and does not change the approved design or uses allowed by the Uptown Newport Planned Community. The fee payments and parkland dedication will remain a requirement for the project. . 4. The Uptown Newport project approval included detailed findings and facts in support of these findings that demonstrate the Project's conformity with, among other things, the General Plan, PCDP, Municipal Code and the Subdivision Map 07-22-2014 Planning Commission Resolution No. 1976 Page 4 of 5 Act. All of those findings are still applicable to the Project, and are incorporated by reference into this Resolution. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Statement of Facts, CEQA Determination and Required Findings set forth above are true and correct and incorporated herein by reference. 2. The Planning Commission of the City of Newport Beach hereby recommends the City Council approve the First Amendment to Development Agreement No. DA2012-003 and consider the imposition of additional financial incentives benefiting the City in exchange for the delay in the fee payments. PASSED, APPROVED, AND ADOPTED THIS 19th DAY OF MARCH, 2015. AYES: Hillgren, Koetting, and Myers NOES: Kramer and Tucker RECUSED: Lawler ABSENT: Brown BY: I Larry Tucker, Chairman BY: J y yer Se retary 07-22-2014 Planning Commission Resolution No. 1976 Page 5 of 5 EXHIBIT "A" First Amendment to Development Agreement No. DA2012-003 07-22-2014 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Attn: City Clerk (Space Above This Line Is for Recorder's Use Only) This Agreement is recorded at the request and for the benefit of the City of Newport Beach and is exempt from the payment of a recording fee pursuant to Government Code §§ 6103 and 27383. FIRST AMENDMENT TO DEVELOPMENT AGREEMENT between CITY OF NEWPORT BEACH and TSG-PARCEL 1, LLC, TPG/TSG VENTURE I ACQUISITION, LLC, AND UPTOWN NEWPORT JAMBOREE, LLC CONCERNING UPTOWN NEWPORT PROPERTY 3/20/2015 Q 6655-100442\1238697.1 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (Pursuant to California Government Code sections 65864-65869.5) This FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the "First Amendment') is dated for reference purposes as of the _ day of 2015 (the "Amendment Date"), and is being entered into by and between the CITY OF NEWPORT BEACH ("City"), on the one hand, and TSG-Parcel 1, LLC; a Delaware limited liability company, TPG/TSG Venture I Acquisition, LLC, a Delaware limited liability company and Uptown Newport Jamboree, LLC, a Delaware limited liability company (collectively, the "Landowners"), on the other. City and Landowners are sometimes collectively referred to in this Agreement as the "Parties" and individually as a"Party." RECITALS A. Landowners are the owners of that certain real property located in the City of Newport Beach, County of Orange, State of California commonly referred to as Uptown Newport, located at 4311-4321 Jamboree Road (APN# 445-131-02, 445-131-03), and generally located on the west side of Jamboree Road, between Birch Street and Fairchild Road (the "Property"). The Property is more particularly described in the legal description attached hereto as Exhibit A and incorporated herein by reference. B. City and Uptown Newport LP, a Delaware limited partnership, entered into that certain Development Agreement dated March 12, 2013, for reference purposes and recorded in the Official Records of Orange County on March 26, 2013, as document number 2013000180939 (the "Agreement'). All terms not otherwise defined in this First Amendment shall have the meanings given them in the Agreement. C. On or around February 14, 2014, Uptown Newport, LP, a Delaware limited partnership, transferred ownership of the Property and assigned the Agreement to TSG-Parcel 1, LLC, a Delaware limited liability company, TPG/TSG Venture I Acquisition, LLC, a Delaware limited liability company and Uptown Newport Jamboree, LLC, a Delaware limited liability company. D. Under the Agreement, Landowners must pay a Public Benefit Fee to the City in the sum of Thirty-Two Thousand Five Hundred Dollars ($32,500.00), as adjusted according to the Agreement, per residential dwelling unit developed as part of the Project at the time each residential building permit is issued. The Parties now desire to amend the Agreement as set forth in this First Amendment to require payment of the Public Benefit Fee at the issuance of certificates of occupancy per residential dwelling unit rather than the issuance of building permits. E. In addition to constructing and improving two (2) approximately one (1) acre parks, Landowners are also required to pay certain parkland dedication in-lieu fees to the City, based on the pro-rated gross acreage of the final map minus any parkland dedication and applicable credits, for all units included on a final map at the time that the first building permit is issued for a unit on that final map. The Parties now desire to amend the Agreement as set forth 3/20/2015 v2 4- 6655-100442V1238697.1 in this First Amendment to require payment of parkland dedication in-lieu fees, as applicable, on a per-unit basis at the issuance of a building permit for individual buildings in the Project. F. On March 13, 2007, the City Council adopted Ordinance No. 2007-6, entitled "Ordinance Amending Chapter 15.45 of City of Newport Beach Municipal Code Regarding Development Agreements" (the "Development Agreement Ordinance"). This First Amendment is consistent with the Development Agreement Ordinance. G. This First Amendment is consistent with the City of Newport Beach General Plan, including without limitation the General Plan's designation of the Property as "Mixed-Use Horizontal-2," Airport Business Area Integrated Conceptual Development Plan, and the Uptown Newport Planned Community Development Plan. H. On , 2015, the Planning Commission held a properly noticed public hearing on this First Amendment and considered the testimony and information submitted by City staff, Landowners, and members of the public. On 2015, consistent with applicable provisions of the Development Agreement Statute and Development Agreement Ordinance, the Planning Commission adopted Resolution No. , recommending the City Council approve this First Amendment. I. In recognition of the significant public benefits that the Agreement, as amended, provides, the City Council has found that this First Amendment: (i) is consistent with the City of Newport Beach General Plan as of the date of the Agreement and this First Amendment; (ii) is in the best interests of the health, safety, and general welfare of City, its residents, and the public; (iii) is entered into pursuant to, and constitutes a present exercise of, City's police power; (iv) is consistent and has been approved consistent with the final Environmental Impact Report (No. ER2012-001) (SCH#2010051094) ("EIR") that has been certified by the City Council on or before the Agreement Date, which analyzed the environmental effects of the proposed development of the Project on the Property, and all of the findings, conditions of approval and mitigation measures related thereto; and (v) is consistent and has been approved consistent with provisions of California Government Code section 65867 and City of Newport Beach Municipal Code chapter 15.45. J. On 2015, the City Council held a properly noticed public hearing on this First Amendment and considered the testimony and information submitted by City staff, Landowners, and members of the public. On 2015, consistent with applicable provisions of the Development Agreement Statute and Development Agreement Ordinance, the City Council held second reading and adopted Ordinance No. , finding the First Amendment to be consistent with the City of Newport Beach General Plan and approving this First Amendment. AGREEMENT NOW, THEREFORE, City and Landowners agree as follows: 1. Public Benefit Fee. Section 3.1 is hereby amended in its entirety to read as follows: 320/2015 v2 2 6655-100442V238697.1 "As consideration for City's approval and performance of its obligations set forth in this Agreement, Landowner shall pay to City a fee that shall be in addition to any other fee or charge to which the Property and the Project would otherwise be subject (herein, the "Public Benefit Fee") in the sum of Thirty-Two Thousand Five Hundred Dollars ($32,500.00) per residential dwelling unit Developed as part of the Project, with the unpaid balance of said Public Benefit Fee increased beginning on January 1, 2015, by the percentage increase in the CPI Index between the Effective Date and said January 1st date (the first "Adjustment Date") and thereafter with the unpaid balance of said Public Benefit Fee increased on each subsequent January 1 during the Term of this Agreement (each, an "Adjustment Date") by the percentage increase in the CPI Index in the year prior to the applicable Adjustment Date. The amount of the percentage increase in the CPI Index on the applicable Adjustment Dates shall in each instance be calculated based on the then most recently available CPI Index figures such that, for example, if the Effective Date of this Agreement falls on July 1 and the most recently available CPI Index figure on the first Adjustment Date (January 1 of the following year) is the CPI Index for November of the preceding year, the percentage increase in the CPI Index for that partial year (a 6-month period) shall be calculated by comparing the CPI Index for November of the preceding year with the CPI Index for May of the preceding year(a 6-month period). In no event, however, shall application of the CPI Index reduce the amount of the Public Benefit Fee (or unpaid portion thereof) below the amount in effect prior to any applicable Adjustment Date. Landowner shall pay the Public Benefit Fee on a per unit basis at the time each residential buil ing ffilit certificate of occupancy is issued. Notwithstanding any other provision set forth in this Agreement to the contrary, during the Term of this Agreement City shall not increase the Public Benefit Fee except pursuant to the CPI Index as stated in this Section 3.1. Landowner acknowledges by its approval and execution of this Agreement that it is voluntarily agreeing to pay the Public Benefit Fee, that its obligation to pay the Public Benefit Fee is an essential term of this Agreement and is not severable from City's obligations and Landowner's vesting rights to be acquired hereunder, and that Landowner expressly waives any constitutional, statutory, or common law right it might have in the absence of this Agreement to protest or challenge the payment of such fee on any ground whatsoever, including without limitation pursuant to the Fifth and Fourteenth Amendments to the United States Constitution, California Constitution Article I Section 19, the Mitigation Fee Act (California Government Code Section 66000 et seq.), or otherwise. In addition to any other remedy set forth in this Agreement for Landowner's default, if Landowner shall fail to timely pay any portion of the Public Benefit Fee when due City shall have the right to withhold issuance of any further building permits, occupancy permits, or other development or building permits for the Project." 2. Park Fees. Section 3.2.1, subdivision (iv), is hereby amended in its entirety to read as follows: "In-lieu of parkland dedication fees shall be paid to the City prior to the issuance of building permits. Payment shall be made for all ....:ts included en any fifia1 map(s) at the lioip4;at flqR &-St _uilding pena4it is issued for any, single unit 3/20/2015 Q 3 6655-100442V1238697.1 :^^luded en a final maps' on a per unit basis at the issuance of a building permit per individual building(s) in the Project. For instance, if a building permit is sought for a building that will contain 100 units, park in-lieu fees must be paid for those 100 units before that building permit can be issued. The fee amount shall be based on the pro-rated gross acreage of the final map minus any parkland dedication and applicable credits for recreational improvements approved by the City pursuant to the General Plan and the Subdivision Code within the area encompassed by the final map. For example, if a final map encompasses 10 acres of the 25.05 acre planned community (or 39.92% of the total acreage), the fee required prior to final map recordation would be 39.92% of the 13.62 acre parkland dedication requirement minus any parkland dedication and any approved credits for recreational improvements." 3. Full Force and Effect. Except as modified by this First Amendment, the Agreement shall remain in fall force and effect. 4. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. 5. Counterparts. This First Amendment may be signed by the parties in different counterparts and the signature pages combined shall create a single document binding on all parties. 6. Recordation. The City Clerk of City shall record this First Amendment in the Office of the County Recorder of the County of Orange within the period required by California Government Code section 65868.5 and City of Newport Beach Municipal Code section 15.45.090. The date of this First Amendment and the date of recordation of this First Amendment shall not modify or amend the Effective Date or the Termination Date of the Agreement. [SIGNATURE PAGE FOLLOWS] 3/20/2015 Q 4 6655-100442\1239697.1 LANDOWNERS SIGNATURE PAGE TO FIRST AMENDMENT TO DEVELOPMENT AGREEMENT "LANDOWNERS" UPTOWN NEWPORT JAMBOREE, LLC, a Delaware limited liability company By: Name: Title: TPG/TSG VENTURE I ACQUISITION, LLC, a Delaware limited liability company By: Name: Title: TSG-PARCEL 1, LLC, a Delaware limited liability company By: Name: Title: 3/20/2015 v2 5 6655-100442\1238697.1 CITY SIGNATURE PAGE TO FIRST AMENDMENT TO DEVELOPMENT AGREEMENT "CITY" CITY OF NEWPORT BEACH By: Edward Selich, Mayor ATTEST: Leilani I. Brown, City Clerk APPROVED AS TO FORM: Aaron Harp, City Attorney 3/20/2015 v2 6 6655-100442\1238697.1 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy,or validity of that document. STATE OF CALIFORNIA ) COUNTY OF ) On 2015, before me, a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature(s) on the instrument the person, or the entity upon behalf of which the person acted,executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached,and not the truthfulness, accuracy,or validity of that document. STATE OF CALIFORNIA ) COUNTY OF ) On 2015, before me, a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature(s) on the instrument the person, or the entity upon behalf of which the person acted,executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: 3/20/2015 v2 -7- 6655-100442\1238697.1 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY Parcels 1 through 4 of Parcel Map No. 2013-108, in the City of Newport Beach, County of Orange, State of California. 3/20/2015 v2 - 6655-100442\1238697.1