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HomeMy WebLinkAboutC-3979(A) - MOU (Affordable Housing for Santa Barbara Condominiums)�A MEMORANDUM OF UNDERSTANDING BETWEEN THE CALIFORNIA COASTAL COMMISSION, CTrY OF NEWPORT BEACH, THE NEW HOME COMPANY SOUTHERN CALIFORNIA, LLC, AND CRYSTAL COVE ALLIANCE This MEMORANDUM OF UNDERSTANDING is entered into this bfh day of (�1�1ti1ViIJL 2012 ( "MOU "), by and among the CALIFORNIA COASTAL COMMISSION, a public agency, created and existing under the authority of section 30300 of the California Public Resources Code ( "Commission "), the CITY OF NEWPORT BEACH, a municipal corporation, through its duly elected, appointed, qualified or acting representatives ( "City "), THE NEW HOME COMPANY SOUTHERN CALIFORNIA LLC, a Delaware limited liability company ( "New Hom ;') an authorized agent for HHR Newport Beach LLC, a Delaware limited liability company ( "Landowner "), and CRYSTAL COVE ALLIANCE, a California non- profit corporation ( "Alliance "), with reference to the following: RECITALS A. WHEREAS, pursuant to Section 30600(a) of the California Public Resources Code and Chapter 20.94 of the Newport Beach Municipal Code, Lennar Homes of California, Inc., a California corporation ( "Original Applicant'% acting as agent for Landowner, applied to the City of Newport Beach for a General Plan Amendment to change the land use designations of a 4.25 acre site from APF to Multiple- family Residential, an Amendment to the 2004 Coastal Land Use Plan ("CLUP ") to change the land use designation from Visitor- Serving Commercial (CV -B) to Medium Density Residential C (RM -C), a parcel map to subdivide the subject property from the hotel development, a Tract Map for the condominium ownership, a Coastal Residential Development Permit and a Zoning code amendment for the adoption of the Santa Barbara Residential Planned Community District Regulations for the property located at 900 Newport Center Drive, which application was assigned by the City the number PA 2004- 169; B. WHEREAS, on January 10, 2006, the Newport Beach City Council passed Resolution No. 2006 -2 approving Code Amendment No. 2005 -003 amending the Zoning Map and adopting the Santa Barbara Residential Planted Community District Development Regulations and approving CLUP Amendment No. 2005 -001 for the 4.25 acre property located at 900 Newport Center Drive ( "Property"); C. WHEREAS, on July 10, 2007 the California Coastal Commission approved Local Coastal Program Land Use Plan Amendment NPB- MAJ- 1- 06( Part A) for the Property with two suggested modifications which required further approval by the City of Newport Beach; D. WHEREAS, on July 24, 2007 the Newport Beach City Council passed Resolution 2007 -56, approving CLUP Amendment No. 2005 -001 (NPB- MAJ -1 -06) as modified by the California Coastal Commission on Iuly 10, 2007; E. WHEREAS, as a result of approving the Commission's suggested modifications in Resolution 2007 -56, the City of Newport Beach CLUP adopted Section 2.3.1 -8 which requires a payment of a fee to mitigate for the loss of visitor - serving land ("Mitigation Fee"); the Mitigation Fee shall be used for the protection, enhancement and provision of lower -cost visitor - serving uses at Crystal Cove State Park; the Mitigation Fee shall be in the amount of Five Million Dollars ($5,000,000.00) to off -set the loss of the priority land use in Newport Center; the Mitigation Fee shall be paid prior to issuance of any coastal development permit granted for any residential project within the newly designated area and to an entity, identified by the permitting agency, capable of implementing the mitigation at Crystal Cove State Park (Crystal Cove Alliance); until paid in accordance with the terms and conditions of the coastal development permit, the amount shall be increased every July lst by an amount calculated on the basis of the percentage change from the year 2007 in the California Consumer Price Index for Urban Consumers as determined by the entity that grants the coastal development permit; F. WHEREAS, on September 5, 2007, the California Coastal Commission ( "Commission ") approved Coastal Development Permit No. 05 -07 -085 ("2007 CDP ') authorizing the development of 79 residential townhome units on a 4.25 acre site including 3 buildings, and subterranean parking (the "Project' ), subject to five (5) Special Conditions (see attached Exhibit A . Although the 2007 CDP has not yet been issued, the Commission has approved three extensions for the permit, through September 5, 2012. The Original Applicant as permittee under the 2007 CDP or any successors in interest, remain responsible for compliance with all outstanding Special Conditions adopted in connection with the 2007 CDP; G. WHEREAS, Special Condition 5 of the 2007 CDP required that, prior to issuance of the 2007 CDP, the Original Applicant acting as agent for Landowner, or any successor(s) in interest to the subject property, to pay a fee to Alliance in accordance with the agreement described and required in Special Condition 5., in an amount not less than $5,000,000.00, to be used for the protection, enhancement and provision of lower -cost visitor- serving uses at Crystal Cove State Park, Newport Beach, California, as more specifically defined in Special Condition 5 of the 2007 CDP; if. WHEREAS, Original Applicant is no longer acting as agent for the Landowner with respect to the 2007 CDP, and Landowner has assumed responsibility for compliance with the 2007 CDP; I. WHEREAS, New Home is under contract to acquire the 4.25 acre property and desires to develop the Project if amended, and is acting as the requesting agent for Landowner with respect to compliance with the 2007 CDP, and intends to accept assignment of any and all rights, obligations and responsibilities of Landowner pursuant to the 2007 CDP; J. WHEREAS, New Home, acting as agent for Landowner, has applied to the Commission for an amendment to, among other things, revise Special Condition 5 of the 2007 CDP to provide for the payment of the $5,000,000.00 Mitigation Fee and construction of the residential condominium units in accordance with New Home's proposed phasing of development of the Project; K. WHEREAS, in its amendment application to the Commission, New Home has proposed to construct the Project in two phases consisting of Twenty -Six (26) residential condominium units in Phase 1, and Fifty -Three (53) residential condominium units in Phase 2; and L. WHEREAS, the Parties desire to enter into this MOU to set forth the measures by which the Parties will implement and satisfy the terms of Special Condition 5 to the 2007 CDP, as may be amended by the Commission in its consideration of New Home's current CDP amendment application ( "2012 Amended CDP'); NOW, THEREFORE, it is mutually agreed by and among the undersigned parties as follows: 1. Upon execution of this MOU by all parties, and in satisfaction of Special Condition 5 of the 2007 CDP, as may be amended by the Commission and in accordance with the payment schedule set forth below, New Home shall provide to Alliance an amount not less than Five Million and Noll 00 DoIiars ($5, 000,000.00) to be used for the protection, enhancement and provision of lower -oost visitor - serving uses at Crystal Cove State Park, Newport Beach. The funds shall be paid by cashier's check and provided in accordance with the following schedule: • $1,645,569.00 prior to the date of issuance of the 2012 Amended CDP by the Commission, if such amendment is approved by the Commission; • $3,354,431.00 prior to issuance by the City of the Building Permit for the construction of New Home's Phase 2 development which shall be the Twenty - Seventh (27th) residential unit for the Project ("Second Payment"}. If New Home does not transfer funds of the Second Payment within 24 months of the Commission's date of issuance of the 2012 Amended CDP ("24 -Month Period "), then New Home shall immediately deliver the Second Payment of $3,354,431.00 to Alliance on the day of the expiration of the 24 -Month Period or as that date may be modified by the provision of Paragraph 8 herein. For the purposes of this MOU, the "date of issuance," if any, of the 2012 Amended CDP means the date the Commission issues the 2012 Amended CDP so that development authorized by the 2012 Amended CDP may be undertaken. 2. Alliance shall utilize all funds transferred to Alliance pursuant to this MOU, including any accrued interest, to plan, design, provide construction management, obtain permits, complete necessary mitigation measures, complete environmental analysis and the ongoing restoration of the Historic District at Crystal Cove State Park in Newport Beach, California, which includes only completion of affordable, overnight accommodations, including 17 cottages and all necessary supporting infrastructure (the "Crystal Cove Project "). The Alliance shall submit a final plan for use of the funds to the Executive Director for review and approval within 24 months of the date on which the funds are transferred to the Alliance. 3. Alliance shall obtain all necessary regulatory approvals, including but not limited to a coastal development permit, which shall specify the elements of the Crystal Cove Project for which the funds transferred pursuant to this MOU are to be used. 4. Notwithstanding Alliance's use of funds derived from fees collected by the Commission, and the review of plans and/or programs by the Commission or its Executive Director pursuant to this MOU prior to the Alliance's use of those funds, Alliance hereby agrees to assume responsibility for and liability arising out of any actions, activities, construction and/or development that Alliance undertakes with the assistance of the funds granted under this MOU. 5. During any period that funds transferred pursuant to this MOU are held by Alliance, the funds shall be deposited in a separate and independent interest- bearing account created solely to manage the funds as well as provisions to limit the use of funds for administrative costs (which shall not exceed 5% of the total funds transferred to the Alliance). All of the transferred monies, along with accrued interest including any interest which may accrue while Alliance holds the funds, shall be utilized solely for the purposes set forth in this MOU. Any reference to the funds or monies to be utilized pursuant to this MOU shall include all such interest. 6. The terms of this MOU shall become effective upon the date set forth by the last party to execute the MOU and shall continue thereafter until the satisfactory completion of the obligations of the parties as described herein and exhaustion of the funds to be utilized pursuant to this MOLT, unless altered by written and signed amendment of this MOU. The MOU may be altered, changed, or amended only by mutual consent of all the parties. Any changes or amendments must be in writing and signed by both all parties before such change or amendment shall take effect. 7. City agrees that it will not issue the Building Permit for Phase 2 of the Project which shall be the Twenty - Seventh (27th) residential unit of the Project until New Home has . provided documentation that it has paid the Second Payment to Alliance, and Alliance has confirmed its receipt. New Home shall provide the Executive Director with a copy of the documentation provided to the City. The Alliance shall also provide the Executive Director with confirmation of its receipt of the Second Payment, prior to the issuance of a Building Permit for Phase 2 of the Project. 8. New Home agrees that it shall pay the Second Payment prior to the issuance by the City of the Building Permit for the 27th residential unit of the Project, but no later than Twenty-Four (24) months from the Commission's date of issuance of the 2012 Amended CDP. New Home may request one extension of time from the Executive Director for one additional period, not to exceed Eighteen (18) months, in which to pay the Second Payment. Such extension of time shall include an increase in the amount of the Second Payment by an amount calculated on the basis of the percentage change in the California Consumer Price Index for Urban Consumers, as determined by the Executive Director, from the year the 2012 Amendment CDP is granted. If approved by the Executive Director, this extension shall expire Forty -Two (42) months from the date of issuance of the 2012 Amended CDP. On or before the date of expiration of the extension, New Home shall deliver the Second Payment to Alliance. The extension request shall be submitted in writing to the Executive Director of the Coastal Commission prior to the Twenty -Fourth (24th) month from the date of issuance of the 2012 Amended CDP, stating the reasons for the delay in making the Second Payment, and the Executive Director may, in his or her discretion, grant an extension of time not to exceed Eighteen (18) months for payment of the Second Payment. 9. The Alliance shall use the funds to complete the project identified in the approved final plan in a diligent manner, not to exceed S years from the date of transfer of all the funds to the Alliance. The final plan shall include provisions to address any failure to complete the project, including but not limited to, transfer of the funds to an alternate entity able to implement the final plan, or, if approved by an amendment to the coastal development permit, to apply the funds to an alternative project that provides lower cost visitor serving opportunities in the coastal area of Orange or Los Angeles County. Only the Commission or the Alliance, as parties to this MOU, may for good cause terminate this MOU as it relates to Alliance's compliance with the terms herein with respect to utilization of the funds, as described in Sections 2 -6 and 9, above. Notice of termination shall be provided in writing 30 days prior to the effective date of termination. In the event of termination, any and all unspent portion of the Mitigation Fee shall be transferred by Alliance to the Commission or a Commission - approved alternate entity within 60 days of termination; provided, however, that any amounts Alliance is required to expend as a result of obligations legitimately incurred by Alliance in implementation of any of the terms of this MOU prior to the termination, and which were unpaid at the time of termination, shall be reimbursed to Alliance from the Mitigation Fee prior to transfer of the remaining funds to the Commission or its designate. "Good cause" shall include, but is not limited to, a determination by the Executive Director that Alliance is not proceeding reasonably and expeditiously to construct the Crystal Cove Project pursuant to this MOU, or is not complying with the plan and budget approved pursuant to this MOU or unreasonable failure of the Commission to approve a final plan for implementation of the Crystal Cove Project in accordance with this MOU. Should this MOU be terminated for good cause as described in the Section 9 of this MOU, all other terms of this MOU shall continue to be in full force and effect as they relate to the remaining parties to this MOU, including the Commission. 10. The MOU may be executed in counterparts, each of which shall be considered a duplicate original. 11. Any demand upon or notice required or permitted to be given by one party to the other shall be in writing, shall be made in the following manner, and shall be effective (a) upon receipt if given by personal delivery, (b) on the date indicated on the receipt if given by certified or registered mail, return receipt requested, or (c) on the succeeding business day after mailing or deposit if given by Express Mail or by deposit with a private delivery service of general use (e.g. Federal Express), postage or fee paid, as appropriate, addressed to the parties in Paragraph 16. Notice of a change of address shall be given by written notice in the manner set forth in this section. 12. For the purposes of this MOU, all information, requests, or other business including any demand upon a party or notice pursuant hereto shall be coordinated through the following agency representatives: Crystal Cove Alliance Harry Helling, President Crystal Cove Alliance Crystal Cove Newport Coast, CA 92657 California Coastal Commission Charles Lester, Executive Director 45 Fremont Street, Suite 2000 San Francisco, CA 94105 -2219 with copy to: California Coastal Commission South Coast District Office Attn: Teresa Henry 200Oceangate, IOthFloor Long Beach, CA 90802 -4325 City of Newport Beach David Kiff, City Manager 3300 Newport Boulevard Newport Beach, CA 92658 -8915 The New Home Company Southern California LLC Tom Redwitz, President 95 Enterprise, Suite 325 Aliso Viejo, CA 92656 13. This MOU shall be binding upon and shall inure to the benefit of the successors and assigns of the parties. The Parties agree that in the event New Home does not assume title to the Property, the rights, benefits and obligations of New Home set forth in this MOU shall inure to the benefit of and be assumed by Landowner, the fee owner of the Property. 14. This MOU shall be governed by, and construed and enforced in accordance with, the laws of the State of California. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. [SIGNATURES ON THE FOLLOWING PAGE] 0 STATE OF CALIFORNIA CALIFORNIA COASTAL C 1SSION B � I`. Y• Charles Lester 'Executive Director CRYSTAL COVE ALLIANCE CITY OF NEWPORT BEACH, A Municipal Corporation By: &-- Da , miff City Manager THE NEW HOME COMPANY SOUTHERN CALIFORNIA LLC, a Delaware Limited Liability Company, an authorized agent for HHR Newport Beach LLC By: Tom Redwitz President -10 FORM; TED A3 Attest NWK-, City Clerk ,100 F- c C-4 /PC) uN` EXHIBIT A SPECIAL CONDITIONS TO CDP 5 -07 -085 STATE OF South Coast Area Office 200 Oceangate, Suite 1000 Long Beach, CA 90802 -4302 (562) 580 -5071 EDMUND G. BROWN, JR., GOVERNOR . NOTICE OF INTENT TO ISSUE IMMATERIAL AMENDMENT TO PERMIT July 13, 2012 Coastal Development Permit Amendment No. 5- 07- 085 -A1 Permit Number 5 -07 -085 issued to Lennar Homes (current applicant is The New Home Company Southern California, LLC) for: Demolition of existing tennis complex and construction of 79 residential townhome units on a 4.25 acre site, including 3 buildings ranging from 50 -60 feet in height above grade, totaling approximately 205,679 square feet and approximately 97,231 square feet of subterranean parking, landscaping, hardscaping, and open space, and payment of a $5,000,000.00 mitigation fee. at: 900 Newport Center Drive, Newport Beach (Orange County) has been amended to include the following change: Construct the approved 79 residential condominiums and associated parking in two phases. Phase 1 to include 26 units and 98 parking spaces. Phase 2 to include 53 units and 143 parking spaces. The applicant also proposes to phase the payment of the required $5,000,000.00 in -lieu -fee for the provision of lower -cost visitor - serving uses to be provided at Crystal Cove State Park, Newport Beach. The phased in-lieu fee payments will be commensurate with the phased construction of the residential condominium units. The applicant has submitted a draft 4 -party Memorandum of Understanding (MOU) between the Commission, the City of Newport Beach, the applicant and the Crystal Cove Alliance to implement the phased in -lieu payment and phased residential condominium construction. Additionally, minor revisions to the project plans include: elimination of westerly driveway entrance to parking garage; revised main entrance, Including shifting driveway to the west to accommodate dual access into subterranean parking garage; relocate westerly building (Bldg.3) slightly west to accommodate minor revisions to the floor plans and subterranean parking to combine the two approved parking structures into one parking structure with two access points from the main entry; increase the number of on -site parking spaces from 201 to 241; minor revisions to exterior elevations including the elimination of external catwalk structures, resulting in no increase in building heights; modify pedestrian circulation and open space /recreation area between Bldgs 2 and 3, reduce total project grading by 29,000 cubic yards (cy) and stockpiling 5,000 cy of cut material from the Phase 1 construction on the Phase 2 portion of the site to be later used in Phase 2 of development. 5-07. 085 -A1 This amendment was determined by the Executive Director to be immaterial, was duly noticed, and no objections were received. The amendment is being held in the Commission office until fulfillment of the Special Conditions of the underlying permit and/or conditions of previous amendments imposed by the Commission. Once these conditions have been fulfilled, the amendment will be issued. For your information, all the imposed conditions are attached. CHARLES LESTER Executive Director �!(-�&'qk By: Teresa Henry i' Title: District Manager ACKNOWLEDGMENT I have read and understand the Notice of Intent to amended Coastal Development Permit 5 -07- 085 -A1 including all conditions imposed. Date Permittee Please sign and return one copy of this form to the Commission office at the above address. 5- 07- 085-A1 SPECIAL CONDITION 5, AS AMENDED BY 5 -07- 086 -A1 S. In -Lieu Fee A. The applicant or any successor(s) in interest to the subject property shall pay a fee to the Crystal Cove Alliance (herein "Alliance "), in accordance with the agreement required in subsection B below, in an amount not less than $5.000,000,00, to be used for the protection, enhancement and provision of lower -cost visitor- serving uses at Crystal Cove State Park, Newport Beach, California. if the protection, enhancement and provision of lower -cost visitor - serving uses at Crystal Cove State Park becomes infeasible (for example, if the available funds are insufficient to complete such a project), the applicant shall submit an application to amend the Coastal Development Permit. The Executive Director shall detennine if the project is infeasible and if so, will make a determination identifying a different feasible project appropriate for the use of this in -lieu fee. B. PRIOR TO THE ISSUANCE OF THIS COASTAL DEVELOPMENT PERMIT, but only after the Executive Director of the Coastal Commission has indicated, In writing, that the Commission has entered into an agreement with the City of Newport Beach, the applicant, and the Alliance (the "Agreement'), the applicant shall provide to the Alliance a payment, by cashier's check, in the amount of $1,645,569.00, payable to the Alliance. The remaining $3,354,431.00 shall be paid to the Alliance in accordance with the terms in the Agreement. This fee shall be used for the purposes described in subsection A of this condition in accordance with the terms and conditions of the Agreement, which, at a minimum, shall include the following provisions: 1) the Alliance shall submit a final plan for use of the funds to the Executive Director for review and approval within 24 months of the date on which the funds are transferred to the Alliance; 2) the final plan shall provide for Phase 3 of the ongoing Crystal Cove Alliance restoration effort of the Historic District at Crystal Cove State Park and which is presently contemplated to include completiontrestoration of 17 cottages, 3) the Alliance must obtain all necessary regulatory permits and approvals, including but not limited to a coastal development permit, for the restoration effort prior to commencement of the project; 4) the funds must be deposited in a separate and independent interest bearing account created solely to manage the funds as well as provisions to limit the use of funds for administrative costs (which shall not exceed 5% of the total funds transferred to the Alliance); 5) a deadline not to exceed 5 years from the date of transfer of the funds to the Alliance by which the funds shall be used by the Alliance to complete the project identified in the final plan, along with provisions to address any failure to complete the project, including but not limited to, transfer of the funds to an alternate entity able to implement the final plan, or, if approved by an amendment to this coastal development permit, to apply the funds to an alternative project that provides lower cost visitor serving opportunities In the coastal area of Orange or Los Angeles County, Wamnoi.dot Printed on July 13, 2012 5 -07 -085 Page 1 of 7 CONDITIONS OF ORIGINAL PERMIT 5 -07 -085 STANDARD CONDITIONS 1. Notice of RecelEt and Acknowledgment. The permit is not valid and development shall not commence until a copy of the permit, signed by the permittee or authorized agent, acknowledging receipt of the permit and acceptance of the terms and conditions, is returned to the Commission office. 2. Expiration. If development has not commenced, the permit will expire two years from the date on which the Commission voted on the application, Development shall be pursued in a diligent manner and completed in a reasonable period of time. Application for extension of the pemtit must be made prior to the expiration date. 3. Interpretation. Any questions of intent or interpretation of any condition will be resolved by the Executive Director or the Commission. 4, Assignment. The permit may be assigned to any qualified person, provided assignee files with the Commission an affidavit accepting all terms and conditions of the permit. 5. Terms and Conditions Run with the Land. These terms and conditions shall be perpetual, and it is the intention of the Commission and the permittee to bind all future owners and possessors of the subject property to the terms and conditions. SPECIAL CONDITIONS.; NOTE: IF THE SPECIAL CONDITIONS REQUIRE THAT DOCUMENT(S) BE RECORDED WITH THE COUNTY RECORDER, YOU WILL RECEIVE THE LEGAL FORMS TO COMPLETE (WITH INSTRUCTIONS). IF YOU HAVE ANY QUESTIONS, PLEASE CALL THE DISTRICT OFFICE. Revised Landscapipg Plan A. PRIOR TO ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, the applicant shall submit, in a form and content acceptable 5 -07 -085 Page 2 of 7 to the Executive Director, two (2) sets of a revised landscaping plan prepared by an appropriately licensed professional which demonstrates the following: (1) The plan shall demonstrate that: a. No plant species listed as problematic and/or invasive by the California Native Plant Society, the California Exotic Pest Plant Council, or as may be identified from time to time by the State of California shall be utilized on the property. No plant species listed as a 'noxious weed' by the State of California or the U.S. Federal Government shall be utilized within the property. Any existing landscaping within the limits of the proposed project that doesn't meet the above requirements in this paragraph and those requirements listed in subsection b below shall be removed; b. With the exception of plants used in drainage swales, all plants employed on the site shall be drought tolerant, (low water use) plants identified by U. C. Davis and the Water Resources Board; c. All planting will be completed within 60 days after completion of construction; d. All vegetation shall be maintained in good growing condition throughout the life of the project, and whenever necessary, shall be replaced with new plant materials to ensure continued compliance with the landscaping plan. (2) The plan shall include, at a minimum, the following components: a. A map showing the type, size, and, location of all plant materials that will be on the developed site, the irrigation system, topography of the developed site, and all other landscape features; b. A schedule for installation of plants. B. The permittee shall undertake development In accordance with the approved plan. Any proposed changes to the approved final plan shall be reported to the Executive Director. No changes to the approved final plans shall occur without a Commission amendment to 5 -07 -085 Page 3 of 7 this coastal development permit unless the Executive Director determines that no amendment is legally required. 2. Conformance with Gootechnical Recommendations A. All final design and construction plans, including foundations, grading and drainage plans, shall be consistent with all recommendations contained in Preliminary Geotechnical Evaluation, Proposed Marriott Condominiums, 900 Newport Center Drive, City of Newport Beach, California, prepared by Petra Geotechnical, Inc., 1116/03. Such recommendations shall be incorporated into all final design and construction plans. B. PRIOR TO THE ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, the applicant shall submit, for the Executive Director's review and approval, evidence that a licensed certified engineering geologist has reviewed and approved all final design and construction plans and certified that each of those final plans is consistent with all of the recommendations specified in the above-referenced geologic evaluation approved by the California Coastal Commission for the project site. C. The permittee shall undertake development in accordance with the approved final plans. Any proposed changes to the approved final plans shall be reported to the Executive Director. No changes to the approved final plans shall occur without a Commission amendment to this coastal development permit unless the Executive Director determines that no amendment is legally required. The permittee shall comply with the following construction- related requirements: (a) Best Management Practices (BMPs) and Good Housekeeping Practices (GHPs) designed to prevent spillage and/or runoff of construction- related materials, and to contain sediment or contaminants associated with construction activity, shall be implemented prior to the on -set of such activity, (b) No construction materials, debris, or waste shall be placed or stored where it may enter a stom-i drain or be subject to tidal erosion and dispersion; 5 -07 -085 Page 4 of 7 (c) All trash and debris shall be disposed in the proper trash or recycling receptacle at the end of every construction day. (d) Construction debris and sediment shall be properly contained and secured on site with BMPs, to prevent the unintended transport of sediment and other debris into coastal waters by wind, rain or tracking. Ail stock piles and construction materials shall be covered, enclosed on all sides, shall be located as far away as possible from drain inlets and any waterway, and shall not be stored in contact with the soil; (e) Construction debris and sediment shall be removed from construction areas as necessary to prevent the accumulation of sediment and other debris which may be discharged into coastal waters. All debris and trash shall be disposed of in the proper trash and recycling receptacles at the end of each construction day; (f) The discharge of any hazardous materials into any receiving waters shall be prohibited; (g) A pre- construction meeting should be held for all personnel to review procedural and BMP /GHP guidelines; (h) All BMPs shall be maintained in a functional condition throughout the duration of the project. (i) Debris shall be disposed at a legal disposal site or recycled at a recycling facility. If the disposal site is located in the coastal zone, a coastal development permit or an amendment to this permit shall be required before disposal can take place unless the Executive Director determines that no amendment or new permit is legally required. 4. Water Quality Management Plan (WQMPI A. PRIOR TO THE ISSUANCE OF THE COASTAL DEVELOPMENT PERMIT, the permittee shall submit for the review and approval of the Executive Director, two (2) copies of a Final Water Quality Management Plan (WQMP) for the post - construction project site, prepared by a licensed water quality professional, and shall include plans, descriptions, and supporting calculations. The WQMP shall be in substantial conformance with the Santa Barbara Condominiums Preliminary Water Quality Management Plan, prepared by Fuscoe Engineering, 4/27/06. The plan shall be in conformance with any geotechnicai recommendations concerning site and development 5- 07-085 Page 5 of 7 stability, where applicable. In addition, the plan shall be in substantial conformance with the following requirements; The WQMP shall incorporate appropriate structural and non- structural Best Management Practices (BMPs) (site design, source control and treatment control) into the development, designed to reduce, to the maximum extent practicable, the volume, velocity and pollutant load of stormwater and dry weather flows leaving the developed site. 2. Post - construction structural BMPs (or suites of BMPs) shall be designed to treat, infiltrate or filter the amount of stormwater runoff produced by all storms up to and including the 85th percentile, 24- hour storm event for volume -based BMPs, and /or the 85th percentile, 1 -hour storm event, with an appropriate safety factor (i.e., 2 or greater), for flow -based BMPs. 3. Impervious surfaces, especially directly connected impervious areas, shall be minimized, and alternative types of pervious pavement considered for use where feasible, and if practicable. 4. Irrigation and the use of fertilizers and other landscaping chemicals shall be minimized through the use of low- maintenance landscaping and efficient irrigation technology or systems. 5. Trash, recycling and other waste containers, as necessary, shall be provided. All waste containers anywhere within the development shall be covered, watertight, and designed to resist scavenging animals. 6. Where feasible and as practicable, the first flush runoff from rooftop downspouts and /or parking lot areas shall be directed and dispersed into permeable landscaped areas such as over turf, through a bioswale, or into an infiltration bed engineered to accept the runoff in a non- erosive manner. The permittee shall arrange for regularly scheduled vacuum sweeping of the parking areas, in order to prevent dispersal of pollutants that might collect on those surfaces. 8. The permittee shall not spray down or wash down the parking lot unless the water used is directed through the sanitary sewer system or a filtered drain. 9. All structural and/or treatment control BMPs shall be designed, installed, and maintained for the life of the project in accordance 5 -07 -085 Page 6 of 7 with well - recognized and accepted design principles and guidelines, such as those contained in the California Stormwater Quality Association Best Management Practice Manuals. 10.At a minimum, all BMP traps /separators and /or filters shall be inspected and cleaned /repaired or otherwise maintained in accordance with the following schedule: (1) prior to the start of the winter storm season, no later than October 15th each year, inspected monthly thereafter for the duration of the rainy season (October 15th -April 30), and cleaned /maintained as necessary based on inspection and, (3) inspected and maintained where needed throughout the dry season. 11. Debris and other water pollutants removed from structural BMP(s) during clean out shall be contained and disposed of in a proper manner. 12. It is the permittee's responsibility to maintain the drainage system and the associated structures and BMPs according to manufacturer's specifications. B. The permittee shall undertake development in accordance with the approved final plans. Any proposed changes to the approved final plans shall be reported to the Executive Director. No changes to the approved final plans shall occur without a Commission amendment to this coastal development permit unless the Executive Director determines that no amendment is legally required. S. In -Lieu Fee A. The applicant or any successor(s) in interest to the subject property shall pay a fee to the Crystal Cove Alliance (herein "Alliance "), in accordance with the agreement required in subsection B below, in an amount not less than $5,000.000.00, to be used for the protection, enhancement and provision of lower -cost visitor- serving uses at Crystal Cove State Park, Newport Beach, California. If the protection; enhancement and provision of lower -cost visitor - serving uses at Crystal Cove State Park becomes infeasible (for example, if the available funds are insufficient to complete such a project), the applicant shall submit an application to amend the Coastal Development Permit. The Executive Director shall determine if the project is infeasible and if so, will make a determination identifying a different feasible project appropriate for the use of this in -lieu fee. B. PRIOR TO THE ISSUANCE OF THIS COASTAL DEVELOPMENT PERMIT, but only after the Executive Director of the Coastal Commission has indicated, in writing, that the Commission has 5 -07 -085 Page 7 of 7 entered into an agreement with the Alliance (the "Agreement', the applicant shall provide to the Alliance, through a financial instrument subject to the review and approval of the Executive Director, a fee in an amount not less than $5.000,000.00 as described in subsection A, payable to the Alliance. This fee shall be used for the purposes described in subsection A of this condition in accordance with the terms and conditions of the Agreement, which, at a minimum, shall include the following provisions: 1) the Alliance shall submit a final plan for use of the funds to the Executive Director for review and approval within 24 months of the date on which the funds are transferred to the Alliance; 2) the final plan shall provide for Phase 2 of the ongoing Crystal Cove Alliance restoration effort of the Historic District at Crystal Cove State Park and which is presently contemplated to provide for the completion of the Outdoor Educational Commons (Cottages 40, 42, 43 and 44), the Beach Museum (Cottage 13), Cottage 5, Cottage 45, the garages and creek restoration within 36 months of approval of the final plan by the Executive Director, 3) the Alliance must obtain all necessary regulatory permits and approvals, including but not limited to a coastal development permit, for the restoration effort prior to commencement of the project; 4) the funds must be deposited in a separate and independent interest bearing account created solely to manage the funds as well as provisions to limit the use of funds for administrative costs (which shall not exceed 5% of the total funds transferred to the Alliance); 5) a deadline not to exceed 5 years from the date of transfer of the funds to the Alliance by which the funds shall be used by the Alliance to complete the project identified in the final plan, along with provisions to address any failure to complete the project, including but not limited to, transfer of the funds to an alternate entity able to implement the final plan, or, if approved by an amendment to this coastal development permit, to apply the funds to an alternative project that provides lower cast visitor serving opportunities in the coastal area of Orange or Los Angeles County. NOTE: IF THE SPECIAL CONDITIONS REQUIRE THAT DOCUMENT($) BE RECORDED WITH THE COUNTY RECORDER, YOU WILL RECEIVE THE LEGAL FORMS TO COMPLETE (WITH INSTRUCTIONS). IF YOU HAVE ANY QUESTIONS, PLEASE CALL THE DISTRICT OFFICE.