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Home My WebLink About03 - Zoning and Local Coastal Program Amendments Related to Tattoo Services, Density Bonus Regulations, Short Term Lodging, and Food and Alcohol ServiceQ �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report April 14, 2020 Agenda Item No. 3 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: David Blumenthal, AICP, Planning Consultant dblumenthal@newportbeachca.gov PHONE: 949-644-3204 TITLE: Resolution No. 2020-31: Initiation of Zoning Code and Local Coastal Program Amendments Related to Tattoo Services, Density Bonus Regulations, Short Term Lodging, and Food and Alcohol Service in the Industrial Zone ABSTRACT: The City Council will consider initiating amendments to Newport Beach Municipal Code (NBMC) Title 20 (Planning and Zoning) and NBMC Title 21 (Local Coastal Program Implementation Plan). The future amendments relate to updating the code for tattoo services, density bonus regulations, short term lodging, and food and alcohol service in the industrial zone. RECOMMENDATION: a) Determine this action is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3; and b) Adopt Resolution No. 2020-31, A Resolution of the City Council of the City of Newport Beach, California, Initiating Amendments to Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the City of Newport Beach Municipal Code Related to Tattoo Services (PA 2020-030), Density Bonuses (PA 2020- 032), Short Term Lodging (PA2020-048), and Food and Alcohol Service in the Industrial Zoning District (IG) (PA2020-042). FUNDING REQUIREMENTS: There is no fiscal impact related to this item. 3-1 Resolution No. 2020-31: Initiation of Zoning Code and Local Coastal Program Amendments Related to Tattoo Services, Density Bonus Regulations, Short Term Lodging, and Food and Alcohol Service in the Industrial April 14, 2020 Page 2 DISCUSSION: Zoning Code Section 20.66.020 (Initiation of Amendment) provides that a code amendment may be initiated by the City Council with or without a recommendation from the Planning Commission. City Council Policy K-1 (General Plan and Local Coastal Program) provides that a City -sponsored amendment to the certified Local Coastal Program (LCP) shall be initiated by the City Council. This agenda item is not a public hearing. Should the City Council choose to initiate these proposed amendments, the specific text changes will be drafted and considered by both the Planning Commission and the City Council at future public hearings. Additionally, amendments to the certified LCP will require certification by the California Coastal Commission to be effective. There are four proposed projects that will involve amending various sections of Title 20 and Title 21 of the municipal Code. Tattoo Services Newport Beach Municipal Code (NBMC) classifies tattoo service as a Restricted Personal Service, which is permitted in all office zones, commercial zones (except the CM zone) and mixed-use zones, provided the Zoning Administrator approves a Minor Use Permit (MUP). An MUP is a discretionary permit requiring a public hearing and is appealable to the Planning Commission and ultimately to the City Council. As a result of Federal court decisions (Anderson v City of Hermosa Beach and Real v City of Long Beach), tattooing is now categorized as a purely expressive activity that is a protected free speech under the 1St Amendment of the U.S. Constitution. The proposed amendment will allow the City to establish a ministerial process to review new tattoo businesses. It is additionally anticipated that objective land use regulations will be included, such as limits on hours of operations, lighting, appropriate zoning districts, and separation requirements. Density Bonus A density bonus is an incentive that authorizes an increase over the maximum allowed density for a property when a developer of a housing development project agrees to provide a specific percentage of affordable dwelling units. Density bonuses are regulated through NBMC Section 20.32 and California Government Code Section 65915. While the City can provide bonuses and incentives that extend above the State's regulations, local regulations cannot be less than the State's minimum standards. 3-2 Resolution No. 2020-31: Initiation of Zoning Code and Local Coastal Program Amendments Related to Tattoo Services, Density Bonus Regulations, Short Term Lodging, and Food and Alcohol Service in the Industrial April 14, 2020 Page 3 Due to continuous changes in State density bonus law, Newport Beach's density bonus ordinance is no longer consistent with Government Code Section 65915. This proposed amendment is intended to fix this inconsistency. Conversely, the City may also consider amending the code to simply maintain a specific approval process for the City and refer to State density bonus law for implementation of the minimum standards and allowances. This would eliminate the need for future amendments if State law subsequently changes. Short -Term Lodging Short-term lodging refers to a residential dwelling unit that is rented for 30 days or less. While these units serve as a visitor accommodation, it is important to ensure they do not result in a negative impact to the neighborhoods in which they are located. The City Council ad hoc committee on short term lodging has requested to make changes to the NBMC regarding their operation and permitted uses. Food and Alcohol Service in Industrial Zone The Industrial (IG) zoning district is located in the southwest portion of the City, near 16th Street and Placentia Avenue. The IG zone is intended to provide for areas appropriate for a wide range of moderate to low intensity industrial uses (e.g., light manufacturing and research and development) and limited accessory commercial and office uses. While limited take-out service is permitted, businesses cannot provide sit-down food or alcohol service. Should the City Council initiate the amendment, staff seeks additional direction on the Council's preference. In considering the proposal, the Council can consider, but is not limited to, the following options: • Location: The Council can consider whether to allow food and alcohol service throughout the IG zone, a portion of the IG zone, or limited to a single parcel. However, the Council should be aware that allowing the more permissive use to a single parcel could be subject to a "spot zoning" challenge. Review Process: Should the use be permitted by -right, or should a conditional use permit (CUP) be required? While a by -right use can be approved quickly, the CUP will allow for public notification, individual review of use to ensure compatibility, and mitigating impacts through the application of conditions. Development Standards: The City Council can also provide direction on establishing development standards. This can include limits on hours of operations, separation requirements, customer area, minimum lot sizes, etc. 3-3 Resolution No. 2020-31: Initiation of Zoning Code and Local Coastal Program Amendments Related to Tattoo Services, Density Bonus Regulations, Short Term Lodging, and Food and Alcohol Service in the Industrial April 14, 2020 Page 4 ENVIRONMENTAL REVIEW: The initiation of zoning and LCP amendments are statutorily exempt from the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code section 21080.17. Section 21080.17 of the Public Resource Code states the CEQA does not apply to the preparation and adoption of an ADU ordinance. NOTICING: The Municipal Code does not require notice for the initiation of amendments. Notice of this item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. Should the City Council initiate the amendment, public notice will be provided for subsequent public hearings before the Planning Commission and the City Council as required by the Municipal Code. Additionally, notice of the LCP amendments will be sent to all persons and agencies on the Notice of the Availability mailing list. ATTACHMENT: Attachment A — Resolution No. 2020-31 3-4 Attachment A Draft Resolution 3-5 RESOLUTION NO. 2020-31 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, INITIATING AMENDMENTS TO TITLE 20 (PLANNING AND ZONING) AND TITLE 21 (LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN) OF THE CITY OF NEWPORT BEACH MUNICIPAL CODE RELATED TO TATTOO SERVICES (PA2020-030), DENSITY BONUSES (PA2020- 032), SHORT TERM LODGING (PA2020-048), AND FOOD AND ALCOHOL SERVICE IN THE INDUSTRIAL ZONING DISTRICT (IG) (PA2020-042) WHEREAS, Section 20.66.020 (Initiation of Amendment) of Newport Beach Municipal Code ("NBMC") provides that the City Council of the City of Newport Beach ("City Council") may initiate an amendment to Title 20 (Planning and Zoning) of the NBMC with or without a recommendation from the Planning Commission; WHEREAS, City Council Policy K-1 entitled "General Plan and Local Coastal Program" requires amendments to the City of Newport Beach certified Local Coastal Program codified in Title 21 (Local Coastal Program Implementation Plan) of the NBMC to be initiated by the City Council; and WHEREAS, the City Council desires to amend Title 20 and Title 21 of the NBMC related to tattoo services, density bonuses, short term lodging, and food and alcohol service in the Industrial Zoning District (IG). NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby initiates amendments to Title 20 (Planning and Zoning) of the NBMC and Title 21 (Local Coastal Program Implementation Plan) of the NBMC related to tattoo services, density bonuses, short term lodging, and allowing food and alcohol service in the Industrial Zoning District (IG). Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative portion of this resolution. Section 3: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 3-6 Resolution No. 2020 - Page 2 of 2 Section 4: The City Council finds the adoption of this resolution is exempt from environmental review under the California Environmental Quality Act ("CEQA"), pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it involves feasibility or planning studies for possible future actions which the agency, board, or commission has not approved or adopted. Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ADOPTED this 14th day of April, 2020. Will O'Neill Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron C. Harp City Attorney 3-7