HomeMy WebLinkAbout05_Uptown Newport Annual Development Agreement Review_PA2014-039 �exEW�ORr
o e COMMUNITY DEVELOPMENT DEPARTMENT
PLANNING DIVISION
100 Civic Center Drive,P.O. Box 1768,Newport Beach, CA 92658-8915
a" (949)644-3200 Fax: (949) 644-3229
�q<iFoaN�P www.newportbeachca.gov
CITY OF NEWPORT BEACH
ZONING ADMINISTRATOR STAFF REPORT
May 11, 2017
Agenda Item No. 5
SUBJECT: Annual Review of Uptown Newport Development Agreement
(PA2014-039)
4311-4321 Jamboree Road
APPLICANT: Uptown Newport, LP (TSG-Parcel 1, LLC)
PLANNER: Rosalinh Ung, Associate Planner
(949) 644-3208, rung(c-)newportbeachca.gov
ZONING DISTRICT/GENERAL PLAN
• Zone: PC 58 (Uptown Newport)
• General Plan: MU-H2 (Mixed-Use Horizontal 2)
PROJECT SUMMARY
An annual review of Development Agreement No. DA2012-003 (DA) for Uptown Newport
Planned Community, pursuant to Section 15.45.080 of the Newport Beach Municipal Code
and Section 65865.1 of the California Government Code.
RECOMMENDATION
1) Conduct a public hearing; and
2) Find the annual review is exempt from the California Environmental Quality Act
("CEQA") pursuant to Section 15321, Class 21 (Enforcement Actions by Regulatory
Agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3;
3) Receive and file the Annual Report of Development Agreement for Uptown Newport
Planned Community (Attachment No. ZA 2); and
4) Find that the applicant has demonstrated good faith compliance with the terms of
Development Agreement No. DA2012-003.
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Annual Review of Development Agreement No. DA2012-003
Zoning Administrator May 11, 2017
Page 2
DISCUSSION
Section 15.45.080 of the Municipal Code requires the City to periodically review
development agreements to determine if the applicant has complied with the terms of the
agreement. This review should be conducted at least once every 12 months.
The applicant is required to demonstrate good faith compliance with the terms of the
agreement, and should the Zoning Administrator find that the applicant has not complied
in good faith with the terms of the agreement; the Zoning Administrator should refer the
matter to City Council.
Background
On March 12, 2013, City Council adopted Ordinance No. 2013-6, approving the DA for
the development of a 25-acre, mixed-use residential project consisting of 1,244 residential
units, two one-acre public parks, and 11,500 square feet of retail uses. The DA became
effective on April 22, 2013. The term of the DA is 15 years, and has two, 5-year extension
options. The earliest expiration could be in 2028.
On April 28, 2015, the City Council approved the First Amendment to the DA that delayed
the timing of payment of public benefit fees and park in-lieu fees.
The DA and its First Amendment are available online at:
htti)://www.newportbeachca.gov/developmentagreements.
On September 5, 2013, the Planning Commission approved the Master Site Development
Review (MSDR) application for the Uptown Newport project. The Planning Commission
also approved prototypical architectural building elevations, master landscape plan and
plant palette, preliminary public parks and paseo plans, preliminary master wall/fence
plans, master signage plans and preliminary site improvement plans for the entire
development. The purpose of this approval is to ensure that the project will be developed
in a cohesive manner in phases consistent with the Planned Community Development
Plan, Development Agreement, environmental mitigation measures required by EIR, and
applicable City codes and standards.
On October 1, 2013, the Parks, Beaches & Recreation Commission reviewed and
approved park amenities on the two public parks concepts for the Uptown Newport
project.
On January 24, 2016, the Community Development Director approved Minor Site
Development Review No. SD2015-004 for the construction of 455 residential apartment
units in two separate buildings, approximately 10,700 square feet of retail use, and a 50-
foot wide paseo within Phase 1 of Uptown Newport Planned Community proposed by the
Picerne Group. The South Building was approved to provide 222 apartment units with
approximately 10,700 square feet of commercial space on the ground floor. The North
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Annual Review of Development Agreement No. DA2012-003
Zoning Administrator May 11, 2017
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Building was approved to provide 233 units. A 50-foot wide paseo will be developed on
an easement area between the two buildings.
On September 2, 2016, the Community Development Director approved Staff Approval
No. SA2016-010, an amendment to Condition No. 34 of Uptown Newport Tentative Tract
Map No. NT2012-002 (TTM No. 17763), to delay completion of the public sidewalk
reconstruction along the Jamboree Road frontage of the Uptown Newport Planned
Community to the occupancy of the Picerne Group's first residential building or July 31,
2018, whichever comes first.
On January 24, 2017, the City Council approved the issuance of up to $192,000,000 of
multi-family housing bonds by the California Statewide Communities Development
Authority (CSCDA) to finance the project. The City does not incur any liability for the
CSCDA financing.
On March 23, 2017, the Planning Commission approved Site Development Review No.
SD2017-001, an amendment to the previously approved Master Site Development
Review application to allow alternative locations and phasing of the commercial
component (up to 11,500 square feet). Specifically, the amendment allows Lot 3 (the
Picerne Group's South Building) to be developed without commercial uses while Lot 2,
located at the intersection of Jamboree Road and Fairchild Road, to be developed with
commercial uses rather than residential uses. Additional commercial uses will be
developed on other lots within the Uptown Newport Planned Community.
On March 24, 2017, the Community Development Director approved Minor Site
Development Review No. SD2017-002 amending Minor Site Development Review No.
SD2015-004 to eliminate the 10,700 square foot commercial component and associated
parking from the South Building. The area formerly planned for commercial use would be
developed with seven additional residential units, for a total of 229 units located in the South
Building of the previously approved apartment project by the Picerne Group. With the
approval of the proposed amendment, a total of 462 apartment units would be developed,
inclusive of the 92 low-income units.
On April 11, 2017, the City Council approved park in-lieu fee credits for Phase 1 of the
Uptown Newport project as follows:
• $2,960,085 for costs associated with the improvement of a 1-acre public park
within Phase 1 of the Uptown Newport Planned Community pursuant to NBMC
Section 19.52.030(B) and Section 3.2.1.i of the Uptown Newport Development
Agreement;
• $2,176,750 based upon the provision of 0.8707 acres of publically accessible open
space consistent with the criteria provided in General Plan Policy LU 6.15.16 at
$2,500,000 per acre within a portion of Phase 1 of the Uptown Newport Planned
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Annual Review of Development Agreement No. DA2012-003
Zoning Administrator May 11, 2017
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Community, pursuant to General Plan Policy LU 6.15.16 and Section 3.2.1.ii of the
Uptown Newport Development Agreement; and
$2,008,130.39 for private recreational amenities provided within Lot 3 of Tract
17763 pursuant to NBMC Section 19.52.080 and Section 3.2.1.iii of the Uptown
Newport Development Agreement
In-lieu Fee and Credit Summary
Total Fee for North Building 233 units $5,063,791.99
Total Fee for South Building (229 units) $4,976,859.94
Total In-lieu Fee $10,040,651.93
Credit Park Construction and Improvement Costs $2,960,085
Credit Public Recreational Open Space Areas $2,176,750
Credit Private Recreational Amenities $2,008,130.39
Total Credits $7,144,965
Total In-lieu Fee for First 462 Units Due $2,895,686.54
Annual Review
A summary of construction-related activities performed by the property owner, its agents
and affiliates during the past year are listed below:
1. Completed rough grading for Phase 1 construction with grading certifications
issued in July 2016. The installation of underground storm drain lines, waterlines,
and sewer lines were also recently completed.
2. Phase I site improvements are anticipated to be completed by the end of May
2017, which include dry utilities, curb and gutter, perimeter walls, and street
paving. Phase 1 landscaping will commence near the completion of the Picerne
Group's apartment project together with the median street and landscaping
improvements, and traffic signal modifications.
3. The DA provides a statement where the City and the landowner may cooperate in
the undergrounding of the 66KV high voltage power line along Jamboree Road.
The City has participated in design discussions with the applicant and Southern
California Edison. The plan is currently in the pre-design stage with SCE with a
completed design plan expected by the end of 2017.
4. Building plans for the construction of Picerne Group's apartment project were
submitted to the City for first review in July, 2015 and were approved for permit
issuance in 2016. Revised building plans on the South Building to reflect the
removal of the commercial component and replacement of seven apartment units
are being reviewed by City staff as of the drafting of this report. Building
construction is anticipated to begin in May 2017.
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Annual Review of Development Agreement No. DA2012-003
Zoning Administrator May 11, 2017
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The applicant has prepared a report with a complete list of accomplishments within the
past year (Attachment ZA 2).
No public benefit fees or park in-lieu fees have been paid as of the drafting of this report.
Permits will be issued by this hearing date if all construction goes as planned. Please
note that the developer is electing to pay for park in-lieu fees at the issuance of building
permits for new residential development in the amount of$2,895,686.54 and $16,089,612
for public benefit fees.
After reviewing the attached annual report and applicable documents, staff believes that
the applicant is in good faith compliance with the terms and conditions of the DA and First
Amendment.
ENVIRONMENTAL REVIEW
This annual review is exempt from the California Environmental Quality Act ("CEQA")
pursuant to Section 15321, Class 21 (Enforcement Actions by Regulatory Agencies) of
the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has
no potential to have a significant effect on the environment. This section exempts actions
by regulatory agencies to enforce or revoke a lease, permit, license, certificate, or other
entitlement for use issued, adopted, or prescribed by the regulatory agency or
enforcement of a law, general rule, standard, or objective, administered or adopted by the
regulatory agency.
PUBLIC NOTICE
Notice of this review was published in the Daily Pilot, mailed to all owners of property
within 300 feet of the boundaries of the site (excluding intervening rights-of-way and
waterways) including the applicant and posted on the subject property at least 10 days
before the scheduled hearing, consistent with the provisions of the Municipal Code.
Additionally, the item appeared on the agenda for this meeting, which was posted at City
Hall and on the City website.
APPEAL PERIOD:
An appeal or call for review may be filed with the Director of Community Development within
14 days following the date of action. For additional information on filing an appeal, contact
the Planning Division at (949) 644-3200.
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Annual Review of Development Agreement No. DA2012-003
Zoning Administrator May 11, 2017
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Prepared by:
Q4S::f= —
Ro alinh Ung
Associate Planner
JC/W
Attachments: ZA 1 Vicinity Map
ZA 2 Uptown Newport Development Agreement Annual Report
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Attachment No. ZA 1
Vicinity Map
VICINITY MAP
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Annual Review Uptown Newport Development
Agreement (PA2014-039)
4311 -4321 Jamboree Road
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Attachment No. ZA 2
Uptown Newport Development
Agreement Annual Report
9
SHOPOFF REALTY
INVESTMENTS
lranslormmg Opportunity into Value
March 17, 2017
City of Newport Beach
Ms. Rosalinh Ung
100 Civic Center Drive
Newport Beach, California 92660
RE: 2016 Annual Report for Uptown Newport
Development Agreement No. DA2012-003
Dear Ms. Ung,
This Annual Report for the Uptown Newport Development Agreement DA2012-003 (the
"Agreement") is being provided to the City pursuant to Section 7 of the Agreement, and
is intended to satisfy the annual reporting requirement for Development Agreements
under section 65865.1 of the Government Code. Uptown Newport is a mixed use
development consisting of: 1,244 residential units, 11,500 square feet of retail uses, and
two 1-acre public parks on approximately 25.05 acres of real property located at 4311-
4321 Jamboree Road, Newport Beach, California.
On March 23, 2013 (the "Agreement Date"), the City Council adopted Ordinance No.
2013-6 (the "Adopting Ordinance"), finding the Agreement to be consistent with the
City of Newport Beach General Plan, and approving the Agreement. Because the
Agreement was approved by Ordinance as required under Government Code section
65867.5, and no appeals or lawsuits challenging the validity of the Adopting Ordinance
were filed, the Agreement became effective thirty days after the Agreement Date, or
April 22, 2013.
The Uptown Newport project is proceeding with development of Phase 1 of the Uptown
Newport Planned Community, with site development in process. The current plan for
Phase 1 is to develop approximately 455 apartment units in two buildings on the parcels
that front Jamboree Road and for-sale townhomes or condominiums on the parcels that
surround the Phase 1 Park. The number of for-sale units has not yet been determined.
The apartment buildings will include approximately 92 affordable apartment units that
will be incorporated into the same buildings and the market rate apartments. An
updated tentative schedule of development activities planned for Phase 1 development
is provided below for your reference. The anticipated dates of construction activities in
2016 were delayed some months due to some plan design changes after plan approvals
as well as some delays by other agencies outside the City of Newport Beach purview. As
2 Park Plaza, Suite 11 Irvine, California949-417-1396 ., . . .
SHOPOFF REALTY
INVESTMENTS
Transforming Opportunity into Value
a result, construction activities were moving in a slower manner as anticipated. Please
note that this is a tentative schedule and subject to change:
• Commence on site street improvements:April- May,2017
• Commence construction of apartments: April, 2017
• Commence wall construction;April 2017
TSG-Parcel 1, LLC, as the Assignee of Uptown Newport, LP, and has complied in good
faith with the terms and conditions of the Agreement. A summary of the activities
performed by the Landowner, its agents and affiliates during the past year are provided
below for the City's review:
1. Design of the 66KV undergrounding on Jamboree Road fronting the Uptown Newport
project was initiated between the City of Newport Beach and Southern California Edison
in September, 2015 and is currently in the pre-design stage with SCE with completed
design expected by the end of 2017.
2. Apartment site plans and architecture were submitted to the City for first review in July,
2015 and were approved in 2016. Currently the plans on the southerly building are
being revised to relocate the commercial component from the apartment building to
other areas within the Uptown Newport PC. Building construction is anticipated to
begin mid-April 2017.
3. An Amendment to Condition of Approval#34 was approved by the city to defer the
construction of the sidewalk along Jamboree until after the building constructability
safety issues could be mitigated and the sidewalk could be completed in a safe and
timely manner.
4. Phase I site improvements are anticipated to be completed by the end of May 2017
which includes dry utilities, curb and gutter, perimeter walls, and street paving. Phase 1
landscaping will commence near the completion of the apartment buildings together
with the median improvements, median landscaping, and traffic signal modifications.
5. Conversations were initiated with the city in mid-2016 regarding finalizing the park fee
credits the phase I and were on going as recent as February 2017.
6. Completed rough grading on lots 1, 3,4, and the park site of Tract 17763 with grading
certifications in July 2016.
7. Completed the installation of underground storm drain lines,waterlines,and sewer
lines.
It should be noted that no activities on the project site during the 2016 calendar year
triggered the payment of park fees or Public Benefit Fees under the Agreement.
2 Park Plaza, Suite 11 Irvine, California96
SHOPOFF REALTY
INVESTMENTS
/ran.stonning Opportunity into Value
We look forward to continuing our development efforts for Uptown Newport, and
appreciate the City's cooperation in our efforts. Please contact me at (949) 417-1867 or
at isantry@shopoff.com. Should you have any questions or require additional
information.
Sincerely,
Jo n Santry
Executive Vice President
Cc: Gregory Powers, Jackson Tidus