HomeMy WebLinkAbout22 - Non-habitable Use Covenant for NNCPC�EWPOR� CITY OF
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City Council Staff Report Agenda Item No. 22
November 27, 2012
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Community Development Department
Kimberly Brandt, AICP, Director
949 - 644 -3226, kbrandt @newportbeachca.gov
PREPARED BY: James Campbell, Principal Planner
APPROVED: A �Q
TITLE: Non - habitable Use Covenant Applicable to Block 100 Newport
Center Drive and San Joaquin Hills Plaza within the Newport Center
Planned Community
ABSTRACT
The Irvine Company is presently processing building permits for the construction of a
new, 20 -story office tower in Block 500 of the North Newport Center Planned
Community ( "NNCPC "). To accommodate the 330,973 square foot - building, previous
Council- approved transfers of existing building area must either be demolished or
rendered non - habitable pursuant to Section 6.1 of the Zoning Implementation and
Public Benefit Agreement ( "Zoning Agreement') between the City and Irvine Company.
RECOMMENDATION
1. Find the requirement for environmental review pursuant to the California
Environmental Quality Act is satisfied by the prior certification of the Final
Environmental Impact Report for the 2006 General Plan Update (SCH No.
2006011119) including Addendums Nos. 1 and 2; and
2. Authorize the Community Development Director to sign a covenant on behalf of the
City regarding the restriction and use of building area within the NNCPC, specifically
Block 100 and San Joaquin Hills Plaza.
FUNDING REQUIREMENTS
There is no fiscal impact related to this item.
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Non - habitable Use Covenant for NNCPC
November 27, 2012
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❑North Newport Center Planned
Community
DISCUSSION
In December of 2007, the City Council adopted the North Newport Center Planned
Community and a Zoning Implementation and Public Benefit Agreement that vested the
Irvine Company with the right to develop the NNCPC. California Environmental Quality
Act ( "CEQA ") compliance was accomplished by the preparation and adoption of an
Addendum No. 1 to the Final Environmental Impact Report ( "FEIR ") for the 2006
General Plan Update (SCH No 2006011119) on December 11, 2007, by Resolution No.
2012 -62. The Planned Community text was been amended several times since and the
Zoning Agreement was amended in August of 2012. Further CEQA compliance was
accomplished by the preparation and adoption of Addendum No. 2 to the FEIR for the
2006 General Plan Update on July 24, 2012, by Resolution No. 2012 -62.
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Non - habitable Use Covenant for NNCPC
November 27, 2012
Page 3
Section IV.0 of the NNCPC allows for transfers of development rights among the
various sub -areas consistent with Policy LU 6.14.3 in the General Plan. Several past
transfers have been approved by the City Council in accordance with the NNCPC to
facilitate new construction. Approvals related to this specific request were the
transference of all existing building area within Block 100 and San Joaquin Hills Plaza to
Blocks 500 and 600. These transfers allowed the construction of a 20 -story office
building in Block 600 located at 650 Newport Center Drive ( "650 Building "), the future
construction of 524 residential units at San Joaquin Hills Plaza, and the planned
construction of a 20 -story office building in Block 500 located at 520 Newport Center
Drive ( "520 Building ").
Pursuant to Section 6.1 of the Zoning Agreement, Irvine Company must demolish or
render non - habitable any existing square footage that is transferred to a new building
before it can obtain final building approval or a certificate of occupancy. The Zoning
Agreement does not specify a method or standard for rendering square footage non -
habitable. However, the City authorized a restrictive covenant in February 2012,
rendering a portion of existing building area within Block 100 and Block 600 "non -
habitable" for the 650 Building. Following construction of the 650 Building, the building
area subject to the covenant will cease to be used, and maintenance and security will
be provided in accordance with the executed covenant (Attachment CC -1).
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Non - habitable Use Covenant for NNCPC
November 27, 2012
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The Irvine Company intends to construct the 520 Building, which is 330,973 square feet
in size in Block 500. To maintain consistency with the maximum allowable entitlement,
the Irvine Company proposes to demolish or render the remaining portion of existing
building area within Block 100 and all of the existing building area within San Joaquin
Hills Plaza non - habitable prior to the occupancy of the 520 Building. As indicated, the
existing buildings within San Joaquin Hills Plaza will be replaced with residential uses
consistent with the NNCPC and prior Council- approved transfers of entitlement. Use of
all of Irvine Company owned buildings within Block 100 will cease upon occupancy of
the 650 and 520 Buildings. The buildings in Block 100 may be reoccupied only if the
Irvine Company renders equivalent square footage non - habitable elsewhere in the
NNCPC or the Irvine Company obtains City Council approval of a transfer of
development rights in accordance with Section VI.0 of the Planned Community
Development Plan and Policy LU 6.14.3 in the City's General Plan.
The proposed restrictive covenant (Attachment CC -2) requires that no one use the
buildings and access will only be provided for maintenance or security. Electricity in the
buildings will remain activated to preserve the appearance that the buildings have not
been abandoned and to provide security lighting at night. Water service will be
maintained to preserve existing landscaping. Building exteriors, landscaping and
irrigation systems, and parking lots will be maintained to ensure continued aesthetic
compatibility with surrounding properties. Lastly, security personnel will continue to
patrol building grounds.
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Non - habitable Use Covenant for NNCPC
November 27, 2012
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Non - habitable Use Covenant for NNCPC
November 27, 2012
Page 6
ENVIRONMENTAL REVIEW
The proposed action is consistent with anticipated activities permitted by the NNCPC
and Zoning Agreement, and the corresponding environmental analysis that has been
previously certified by the City Council. Therefore, staff recommends the City Council
find the CEQA requirement for environmental review satisfied by the prior certification of
the FEIR for the 2006 General Plan Update (SCH No. 2006011119) including
Addendums Nos. 1 and 2.
NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item) and on the City website.
Submitted by:
. I _yk"'Z�-
Kimberly
Brand 0�
Director
Attachments: CCA Executed Covenant Rendering Square Footage Non - Habitable
in Block 100 and Block 600
CC -2 Draft Covenant Rendering Square Footage Non - Habitable in
Block 100 and San Joaquin Plaza
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Attachment CC -1
Executed Covenant Rendering Square Footage
Non - Habitable in Block 100 and Block 600
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14
NORTH NEWPORT CENTER PLANNED COMMUNITY
COVENANT RENDERING SQUARE FOOTAGE NON - HABITABLE
IN BLOCK 100 AND BLOCK 600
This Covenant Rendering Square Footage Non - Habitable in Block 100 and Block 600
(Covenant) is entered into on Mal/ �1 , 2012, by and between the City of Newport Beach (City)
and The Irvine Company LLC (Irvine Company).
RECITALS
A. Irvine Company is the owner of the parcels of real property collectively known as
the North Newport Center Planned Community ( NNCPC). The property consists of Fashion
Island; Block 600; Block 800; and portions of Block 100, Block 400, Block 500, and San
Joaquin Plaza.
B. The City of Newport Beach City Council (City Council) adopted the North
Newport Center Planned Community Development Plan (PC Text) on December 18, 2007
(Ordinance No. 2007 -20) and amended it on November 24, 2009 (Ordinance No. 2009 -28) and
on May 24, 2011 (Ordinance No. 2011 -16). Section VI.0 of the PC Text allows for transfers of
development rights among NNCPC sub -areas consistent with Policy LU 6.14.2 in the City's
General Plan.
C. The City Council adopted the Zoning Implementation and Public Benefit
Agreement between the City and Irvine Company concerning properties located in the NNCPC
(Zoning Agreement) on December 18, 2007 (Ordinance No. 2007 -21). Under Section 6.1 of the
Zoning Agreement, Irvine Company must demolish or render non - habitable any square footage
that was transferred to a new use before Irvine Company can obtain final building approval or a
certificate of occupancy for the square footage transferred to that new use. The Zoning
Agreement included Fashion Island, Block 500, Block 600 and San Joaquin Plaza. Although
Block 100 was not included in the Zoning Agreement, subsequent transfers of development
rights approved by the City Council require development in Block 100 to be considered non-
habitable.
D. On December 11, 2007, the City Council approved the transfer of 17,300 square
feet (sq. ft.) from the 24 Hour Fitness in Block 600 to Block 500 (Resolution No. 2007 -82). In
the same action, the City Council approved transfer of 8,289 sq. ft. of miscellaneous office space
in Block 600 to Block 500 and 16,447 sq. ft. from Palm Garden in Block 600 to Block 500. On
January 26, 2010, the City Council approved the transfer of the 16,447 sq. ft. originating in Palm
Garden from Block 500 back to Block 600 (Resolution No. 2010 -15).
E. On October 26, 2010, the City Council approved the transfer of 121,114 sq. ft. of
commercial office space from Block 100 to Block 600 and to San Joaquin Plaza (Resolution
No. 2010 -124).
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F. Following Transfer 2010 -1 (Resolution No. 2010 -124), the remaining intensity in
Block 600 was 434,736 sq. ft.
G. Irvine Company has received building permits from the City allowing the
construction of an office building totaling 387,472 sq. ft. in Block 600 (650 Building).
H. Following construction of the 650 Building, 47,264 un -built sq. ft. will remain in
North Newport Center and 73,850 sq. ft. will need to be rendered non - habitable in Block 100
(Block 100 entitlement was 121,114 sq. ft. prior to transfer TD2011 -1. 121,114 less 47,264
unbuilt entitlement = 73,850 sq. ft.).
I. On November 8, 2011, the City Council approved the transfer of 47,264 sq. ft.
from Block 600 to Block 500.
J. The 650 Building would use the 17,300 sq. ft. from the 24 Hour Fitness in Block
600; the 8,289 sq. ft. of miscellaneous office space in Block 600; the 16,447 sq. ft. from Palm
Garden in Block 600.
K. Irvine Company has demolished 8,289 sq. ft. of miscellaneous office space in
Block 600 and 16,447 sq. ft. from the Palm Garden building in Block 600. In addition, Irvine
Company intends to render non - habitable the 17,300 sq. ft. from the 24 Hour Fitness in Block
600 and the 73,850 sq. ft. of office space in Block 100, The Zoning Agreement does not specify
a method or standard for rendering square footage non- habitable.
NOW, THEREFORE, it is mutually agreed by and between the City and Irvine Company
as follows:
1. Maintenance of Buildings. Irvine Company does not intend to demolish the
24 Hour Fitness in Block 600 or the existing commercial office space in Block 100. Rather,
Irvine Company will render the 17,300 sq. ft. 24 Hour Fitness in Block 600 and 73,850 sq. ft. of
existing commercial office space in Block 100 non - habitable and will maintain them as follows:
a. Neither Irvine Company, any tenants, nor any other third parties will
occupy the office buildings.
b. Irvine Company will provide access to the buildings only for the purpose
of maintenance or security.
C. Electricity in the buildings will remain activated to preserve the
appearance that the buildings have not been abandoned and to provide security lighting at night;
d. Water service will continue to preserve the existing landscaping;
e. Building exteriors, landscaping and irrigation systems and parking lots
will be maintained to ensure continued aesthetic compatibility with surrounding properties; and
Page 2 of 4
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f. Security personnel will continue to patrol building grounds.
2. Reoccupation of Square Footage. The square footage rendered non - habitable may
be reoccupied when Irvine Company has demonstrated that it has rendered equivalent square
footage non - habitable elsewhere in NNCPC. Irvine Company can demonstrate this by obtaining
approval of a transfer of development rights consistent with Section VI.0 of the PC Text and
Policy LU 6.143 in the City's General Plan or by rendering a commensurate amount of other
existing square footage within the NNCPC non - habitable. This covenant will be modified or
terminated upon the approval of such a transfer.
3. Tracking of Square Footage. The City and Irvine Company shall determine the
best method of tracking square footage within the NNCPC rendered non - habitable and
reoccupation of such square footage in the City's building permit database. The City and Irvine
Company agree to track each occurrence related to square footage rendered non - habitable or
reoccupation of such square footage within the NNCPC.
4. Future Transactions. Any future transfer of development rights within NNCPC
that requires rendering square footage non - habitable will conform to Section 1, Section 2, and
Section 3 of this Agreement.
(Signatures on following page)
Page 3 of 4
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AGREED TO AND ACCEPTED:
THE IRVINE COMPANY LLC
't By
Name
Title 12 . �� ( �n ✓ 1 /
W.Arzw�m ��
/ I tea. i
CITY OF NEWPORT BEACH
UZ
ATTEST:
Kimberly Brand AICP
Community De lopment Director
Page 4 of 4
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Attachment CC -2
Draft Covenant Rendering Square Footage Non -
Habitable in Block 100 and San Joaquin Plaza
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20
NORTH NEWPORT CENTER PLANNED COMMUNITY
COVENANT RENDERING SQUARE FOOTAGE NON - HABITABLE
IN BLOCK 100 AND SAN JOAQUIN PLAZA
This Covenant Rendering Square Footage Non - Habitable in Block 100 and San
Joaquin Plaza ( "Covenant ") is entered into on the day of 2012, by
and between the City of Newport Beach, a California municipal corporation and charter
city ( "City ") and The Irvine Company LLC, a California limited liability company ( "Irvine
Company') and is made with reference to the following:
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws
of the State of California with the power to carry on its business as it is now being
conducted under the statues of the State of California and the Charter of City.
B. Irvine Company is the owner of the parcels of real property collectively known as
the North Newport Center Planned Community ( "NNCPC "). The property
consists of Fashion Island; Block 600; Block 800; and portions of Block 100,
Block 400, Block 500, and San Joaquin Plaza.
C. On December 18, 2007, the City of Newport Beach City Council ( "City Council ")
adopted the North Newport Center Planned Community Development Plan ( "PC
Text') (Ordinance No. 2007 -20) and amended it on November 24, 2009
(Ordinance No. 2009 -28), on May 24, 2011 (Ordinance No. 2011 -16), and on
August 14, 2012 (Ordinance No. 2012 -19).
D. Section IV.0 of the PC Text allows for transfers of development rights among
NNCPC sub -areas consistent with Policy LU 6.14.3 in the City's General Plan.
E. On December 18, 2007, the City Council adopted the Zoning Implementation and
Public Benefit Agreement between the City and Irvine Company concerning
properties located in the NNCPC ( "Zoning Agreement') (Ordinance No. 2007 -21)
and on August 14, 2012, the City Council amended the Zoning Agreement to
include all properties located in the NNCPC (Ordinance No 2012 -20). Under
Section 6.1 of the amended Zoning Agreement, Irvine Company must demolish
or render non - habitable any existing square footage that is transferred to a new
use before it can obtain final building approval or a certificate of occupancy for
the square footage transferred to that new use. The amended Zoning
Agreement does not specify a method or standard for rendering square footage
non - habitable.
F. Pursuant to the "North Newport Center Planned Community Covenant Rendering
Square Footage Non - Habitable in Block 100 and Block 600 ", dated March 21,
2012, Irvine Company agreed that square footage associated with the
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construction of 650 Newport Center Drive ("650 Building ") would be rendered
non - habitable upon receipt of a certificate of occupancy for the 650 Building.
Following construction of the 650 Building, 47,264 square feet remained unbuilt
in Block 600. Of this remaining unbuilt square footage in Block 600, 45,236
square feet originated from, and currently exists as constructed office buildings in
Block 100 (TD 2010 -1).
G. On November 8, 2011, the City Council approved the transfer of the 47,264
unbuilt square feet from Block 600 to Block 500, and the transfer of 241,711
existing square feet from San Joaquin Plaza to Block 500 (TD 2011 -1; Resolution
No. 2011 -102). Following this transfer, the available unbuilt entitlement in Block
500 is 288,975 square feet and there is no remaining unbuilt entitlement in Block
600.
H. Irvine Company intends to construct an office building totaling 330,973 square
feet in Block 500 ("520 Building ").
The 288,975 square feet of available unbuilt entitlement, combined with the
planned demolition of 40,894 square feet and conversion of 1,224 square feet of
existing development in Block 500 will provide sufficient square feet to allow
construction of 330,973 square feet in the 520 Building.
J. Based on the transfers approved in TD 2010 -1 and TD 2011 -1, and prior to the
issuance of certificates of use and occupancy for the 520 Building, a total of
241,711 square feet of commercial office space in San Joaquin Plaza and 47,264
square feet of commercial office space in Block 100 must be rendered non -
habitable.
K. Following construction of the 330,973 square foot 520 Building, 120 square feet
of unbuilt entitlement will remain in Block 500 and the entirety of entitlement
within Block 100, totaling 121,114 square feet, will be rendered non - habitable.
NOW, THEREFORE, it is mutually agreed by and between the City and Irvine
Company as follows:
1. Recitals.
The City and Irvine Company acknowledge that the Recitals set forth above are
true and correct and are hereby incorporated by reference in this Covenant.
2. Non - Habitability and Maintenance of Buildings.
Irvine Company shall render 241,711 square feet of commercial office space in
San Joaquin Plaza and 47,264 square feet of commercial office space in Block 100
non - habitable no later than the date a certificate of occupancy is issued for the 520
NORTH NEWPORT CENTER PLANNED COMMUNITY COVENANT RENDERING 2
SQUARE FOOTAGE NON - HABITABLE IN BLOCK 100 & SAN JOAQUIN PLAZA
Building. Irvine Company shall ensure that no persons occupy or access the space,
except as set forth in this Covenant, and shall maintain the existing space as follows:
a. Neither Irvine Company, nor any tenants or any other third parties shall occupy
the space;
b. Irvine Company shall provide access to the buildings only for the purpose of
maintenance or security;
c. Electricity in the buildings shall be continued to preserve the appearance that the
buildings have not been abandoned and to provide security lighting at night;
d. Water service shall be continued to preserve the existing landscaping;
e. Building exteriors, landscaping and irrigation systems, and parking lots shall be
maintained to ensure continued aesthetic compatibility with surrounding
properties; and
f. Security personnel shall continue to patrol building grounds.
3. Reoccupation of Square Footage.
The square footage rendered non - habitable may be reoccupied by Irvine
Company upon the approval of a transfer of development rights consistent with Section
IV.0 of the PC Text and Policy LU 6.14.3 of the City's General Plan or by rendering a
commensurate amount of other existing square footage within the NNCPC non -
habitable. This Covenant shall be modified or terminated upon the approval of such a
transfer and /or rendering of other square footage non - habitable.
4. Tracking of Square Footage.
The City and Irvine Company shall mutually determine the best method of
tracking square footage within the NNCPC that has been rendered non - habitable, as
well as reoccupation of such square footage, in the City's building permit database. The
City and Irvine Company agree to track each occurrence related to square footage
rendered non - habitable or reoccupation of such square footage within the NNCPC.
5. Future Transactions.
Any future transfer of development rights within NNCPC that requires rendering
square footage non - habitable shall conform to Section 2, Section 3, and Section 4 of
this Covenant.
[SIGNATURES ON NEXT PAGE]
NORTH NEWPORT CENTER PLANNED COMMUNITY COVENANT RENDERING 3
SQUARE FOOTAGE NON - HABITABLE IN BLOCK 100 & SAN JOAQUIN PLAZA
AGREED TO AND ACCEPTED:
THE IRVINE COMPANY LLC,
a California limited liability company
Date:
By
Its
Date:
By
Its
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
VA
ATTEST:
Date:
Leilani I. Brown
City Clerk
APPROVE E AS O FORM:
A ron C. Harp
City Attorney
Kimberly Brandt, AICP
Community Development Director
NORTH NEWPORT CENTER PLANNED COMMUNITY COVENANT RENDERING 4
SQUARE FOOTAGE NON - HABITABLE IN BLOCK 100 & SAN JOAQUIN PLAZA
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