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HomeMy WebLinkAbout08-22-2019 - Planning Commission NEWPORT BEACH PLANNING COMMISSION MINUTES CITY COUNCIL CHAMBERS—100 CIVIC CENTER DRIVE THURSDAY, AUGUST 22, 2019 REGULAR MEETING—6:30 P.M. I. CALL TO ORDER—The meeting was called to order at 6:30 p.m. II. PLEDGE OF ALLEGIANCE—Commissioner Rosene III. ROLL CALL PRESENT: Vice Chair Erik Weigand, Secretary Lee Lowrey, Commissioner Curtis Ellmore, Commissioner Sarah Klaustermeier, Commissioner Lauren Kleiman, Commissioner Peter Koetting, Commissioner Mark Rosene ABSENT: None Staff Present: Community Development Director Seimone Jurjis,Assistant City Attorney Yolanda Summerhill, City Traffic Engineer Tony Brine, Principal Planner Jaime Murillo, Principal Planner Gregg Ramirez,Associate Planner Chelsea Crager, Associate Planner Makana Nova, Planning Technician Patrick Achis, Administrative Support Technician Amanda Lee IV. ELECTION OF OFFICERS ITEM NO. 1 Election of Officers Summary: The Planning Commission's adopted rules require the election of officers at its annual meeting, which occurs at the first meeting of July each year. Officers include the Chair, Vice Chair, and Secretary and they would serve for a one-year term. Recommended Action: 1. Find this action not subject to the California Environmental Quality Act ("CEQA") pursuant to 15060(c)(3) (the activity is not a project as defined in Section 15378), of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; 2. Nominate Planning Commission officers consisting of Chair, Vice Chair, and Secretary; and 3. Appoint the officers by majority approval of a motion. Commissioner Lowrey nominated Commissioner Weigand for the office of Chair. Commissioner Ellmore nominated Commissioner Koetting for the office of Chair. In light of the large agenda items in the queue and a relatively young Planning Commission, Commissioner Koetting's experience and tenure on the Planning Commission would be valuable. In response to Commissioner Weigand's inquiries, Commissioner Ellmore indicated the large agenda items are the Newport Village project and the General Plan. Community Development Director Seimone Jurjis advised that the Planning Commission would not vote on the General Plan Update in the next year. Planning Commission review of the Newport Village project is at least a year away. Commissioner Kleiman noted during her tenure Commissioners have supported the most senior Commissioner who has not served in a position. She found no reason to deviate from that practice. Commissioner Koetting advised that he would be honored to serve as Chair. The appointment of former Commissioners Kramer, Tucker, and Hillgren to second terms as Chair did not follow the seniority practice. In reply to Commissioner Weigand's question, Commissioner Ellmore indicated he would support Vice Chair Weigand for a second term as Vice Chair. He supported Commissioner Koetting for Chair because three of the seven Commissioners are relatively new to the Planning Commission. 1 of 10 Planning Commission Minutes August 22, 2019 In answer to Commissioner Weigand's query, Commissioner Koetting related that he has sufficient time to serve as Chair. The Planning Commission unanimously appointed Commissioner Koetting as Chair. Commissioner Ellmore nominated Commissioner Weigand for the office of Vice Chair. The Planning Commission unanimously appointed Commissioner Weigand as Vice Chair. Chair Koetting nominated Commissioner Lowrey for the office of Secretary. The Planning Commission unanimously appointed Commissioner Lowrey as Secretary. V. PUBLIC COMMENTS None VI. REQUEST FOR CONTINUANCES None VII. CONSENT ITEMS ITEM NO. 2 Minutes of August 8,2019 Recommended Action: Approve and file Motion made by Vice Chair Weigand and seconded by Chair Koetting to approve the minutes of the August 8, 2019 meeting with Mr. Mosher's suggested revisions. AYES: Koetting, Weigand, Ellmore, Klaustermeier, Rosene NOES: ABSTAIN: Lowrey, Kleiman ABSENT: VIII. PUBLIC HEARING ITEMS ITEM NO. 3 THE GARDEN OFFICE AND PARKING STRUCTURE(PA2019-023) Site Location: 215 Riverside Avenue Summary: A coastal development permit (CDP) to demolish an existing restaurant/office building and associated surface parking lot and to construct a new 47-space, two-level parking structure and a 2,830-square-foot office building. A conditional use permit is required to authorize the construction of the parking structure adjacent to the residentially zoned property. A modification permit is required for 12 tandem parking spaces on the first and second floor levels of the structure. The project includes hardscape,drainage, and landscape improvements. The proposed development complies with all applicable development standards including height, setbacks, and floor area limits. The project is designed to provide surplus off-site parking for The Garden shopping center located directly south of the project site. Approval of off-site parking use and any other uses which require parking in the structure will require the processing of a separate conditional use permit and coastal development permit. Recommended Action: 1. Conduct a public hearing; 2. Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15332 under Class 32(Infill)of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; and 2of10 Planning Commission Minutes August 22, 2019 3. Adopt Draft Planning Commission Resolution No. PC2019-024 approving Coastal Development Permit No. CD2019-003, Conditional Use Permit No. UP2019-003, and Modification Permit No. MD2019-003. Associate Planner Makana Nova reported the applicant proposes to demolish an existing office building,vacant restaurant, and 18-space surface parking lot and to construct a new 2,830-square-foot office building and 47- space parking structure. A coastal development permit is required for demolition and project development within the coastal zone. A conditional use permit is required for a parking structure located adjacent to residential properties. A modification permit is required for the tandem parking proposed to serve office tenants. Associate Planner Nova indicated that the project site contains 16,290 square feet. Residences are located to the north of the project site. Cliff Drive Park is located immediately west of the site. The project site is located directly north of The Garden shopping center. The development is intended to provide off-site parking for the shopping center. Staff is reviewing an application for a new restaurant located at 2902 West Coast Highway. The proposed office building would contain 2,830 square feet in two stories. The parking structure would provide 47 parking spaces on two levels. A portion of the second level would be covered with a trellis. An existing retaining wall located at the north end of the property would remain, and the parking structure would be built into the slope. Associate Planner Nova continued, identifying that the property is zoned Commercial General (CG)with a floor area ratio (FAR) limit of 0.5. Existing development on the property contains slightly more than 8,000 square feet, and the FAR almost meets the 0.5 limit. Proposed development would reduce the existing square footage significantly, and the use would be office only. The resulting FAR would be 0.17. The height limit for a flat roof is 32 feet, and the project proposes a roofline at 32 feet. The existing development has a flat roof, which measures 28 feet. Associate Planner Nova specified that the applicant proposes a general office use, which requires parking at a rate of one space per 250 square feet of floor area for a total of 12 parking spaces. The applicant proposes providing the 12 parking spaces in a tandem configuration. Vehicles would enter and exit the parking structure's ground level via Avon Street and the second level via Riverside Avenue. Six tandem parking spaces would be located three on the ground level and three on the second level with employees utilizing the front spaces and visitors and/or employees occupying the rear spaces. Associate Planner Nova described the bulk and scale of the proposed development, indicating that the project would be either less than or similar to the existing development. For the most part, the structure would be built into the slope to reduce the bulk and scale of the structure. A coastal view point is located adjacent to the project site at Cliff Drive Park. The project site is visible from the edge of the lawn area in Cliff Drive Park. The architectural exterior elevations of the proposed project are designed to be similar in materials and style to those of The Garden shopping center. Associate Planner Nova reported that staff has analyzed the project as a Class 32 exemption under the CEQA Guidelines and prepared a traffic trip analysis, a noise study, a Water Quality Management Plan, and a water/sewer generation study. The noise study considered a 24-hour operation and vehicle and circulation movement for a similar office use in Lake Forest. In response to public comment regarding the potential for piece-mealing the project, staff is comfortable with the parking structure and office building proceeding. A separate application for a restaurant is under review. The parking structure would provide parking for The Garden shopping center as a whole. The office building and parking structure could operate independent of the restaurant. The traffic study found a reduction in the number of average daily trips (ADT). The existing uses generate 294 ADT, and the proposed uses would generate 46 ADT. The project has been noticed in accordance with Zoning Code and Local Coastal Program (LCP) standards. Associate Planner Nova discussed public noticing provided for the project and noted that contact information for the courtesy notice to the homeowners association has been updated since the submission of the application, and notice has been provided to the new contact person. Ten members of the public have submitted written comments, five supporting the project, three opposing the project, and two requesting a 3of10 Planning Commission Minutes August 22, 2019 continuance of the item. Staff recommends the Planning Commission continue the item so that staff can further analyze the CEQA determination and LCP standards as a result of the comments received. In response to Commissioner Kleiman's questions, Principal Planner Gregg Ramirez indicated the application for the restaurant could be heard independent of the current application because the restaurant applicant could request a parking waiver or other off-site parking solution. Associate Planner Nova explained that the current application includes a parking management plan. Assistant City Attorney Yolanda Summerhill advised Commissioners not to delve into the details of the restaurant application as it has not been agendized. Commissioner Kleiman felt the Planning Commission's inability to discuss the details of the parking structure by itself or in relation to the restaurant project suggests the two projects are reliant on each other or at least interconnected. Associate Planner Nova stated the Planning Commission can discuss use of the tandem parking spaces and the fact that the structure provides surplus parking. The Planning Commission is not considering the manner in which a future use may utilize the surplus parking. In answer to Commissioner Rosene's query, Associate Planner Nova related that the parking supply does not generate traffic in the trip generation calculations. The off-site use of the parking spaces is a component of the future application. In reply to Chair Koetting's questions, Associate Planner Nova stated the project could be considered as a small office building and a large parking supply with or without tandem parking. Chair Koetting remarked that the tandem parking would not work well. Associate Planner Nova explained that a condition of approval requires signage directing customers and employees of the office building to utilize the tandem spaces. A parking operations plan is included in the packet and discusses use of the spaces. The operations plan proposes signage that would limit the tandem spaces to employees. The applicant has provided a materials board and the project architect can address the materials in greater detail. In response to Vice Chair Weigand's inquiries, Associate Planner Nova reported staff relies on homeowners associations to update their contact information with staff. Community Development Director Seimone Jurjis added that staff provided notifications to homeowners associations as a courtesy. Staff may provide email notifications to homeowners associations, but an email notification is not required. Associate Planner Nova clarified that the Code does not allow staff to omit parks when measuring the 300 feet for notices. Associate Planner Nova further advised that Condition of Approval No. 5 requires an on-site parking coordinator to be designated. Chair Koetting opened the public hearing. Scott Laidlaw, applicant representative, reported the project reflects the Mariners Mile Strategic Vision and Design Framework through enhanced architectural finishes, strong integration of landscape, five-sided design, and pedestrian orientation. Exterior finishes are consistent with the Garden project across the street. The roofing material is Flintlastic roofing material with an impregnated aggregate in a sandy buff color. The view from the park was not taken from a public area of the park but from the property line. The project will reduce the existing floor area by 65 percent. The allowed FAR is more than 7,500 square feet of general commercial use. A development of that size would require more than 50 parking spaces. The project will improve sightlines and increase setbacks from adjacent residences. The amount of impervious surfaces has been reduced by 33 percent. Leases for professional office space can include self-management of the six tandem parking stalls. He proposed tandem parking in order to create the most efficient footprint possible. The office building will be restricted to the lowest intensity use, which will be consistent with the intention of the strategic plan. Backfilling the retaining wall will allow significant plantings. With the reduced building footprint, landscape area will increase 150 percent, and encroachments into parkland can be removed. Susan Hori, of Manatt Phelps, and representative for the project applicant, advised that Condition of Approval No. 2 indicates the space is to be used for professional offices. As part of a lease for professional office space, the landlord can assign parking spaces to the tenant. The tandem parking spaces will be managed through assigned parking. On-site security will monitor parking. The applicant held an open house for the community on July 21 to introduce the proposed project. Invitations were sent to residents and owners of homes located within 300 feet of the project site and the Newport Heights Improvement Association. At Council Member 4of10 Planning Commission Minutes August 22, 2019 Avery's request, two additional individuals were invited to the open house because they are actively involved in community issues. At Ms. Palmer's suggestion, the project team spoke with the new owners of a property located in the notification area. Participants in the open house appreciated the project providing additional parking and expressed positive comments about the appearance of the proposed project. The project team invited Cliff Haven residents to the open house, and the residents of 2919 Cliff Drive attended the open house. There are no recorded deed restrictions on the property; therefore, the building height is consistent with requirements. The property manager has contacted a tenant and is making all reasonable efforts to accommodate the tenant, but negotiations are ongoing. The applicant will address pickup times with the trash contractor. The restaurant project can be considered without the parking structure through modification of parking standards or off-site parking. The noise study found that the project would not exceed the City's exterior noise standards of 55 dB during the day and 50 dB during the night. There is no riparian habitat on the project site as it has been fully developed. The project will not impact the vegetated slope. The project continues the redevelopment and revitalization of the area and provides a unified vision for the retail uses. In response to Vice Chair Weigand's inquiry, Associate Planner Nova indicated staff wishes to consider the comment regarding riparian habitat in more detail and requests the item be continued. Chair Koetting and Commissioner Rosene disclosed that they visited the site and spoke with the applicant. Commissioners Kleiman and Ellmore disclosed no ex parte communications. Commissioner Klaustermeier disclosed a drive by the site. Commissioner Lowrey disclosed a conversation with the consultant. Vice Chair Weigand disclosed that he met on-site and communicated via telephone with the consultant and spoke with residents and association members. In reply to Chair Koetting's questions, Ms. Hori stated a parking management plan for 215 Riverside has been submitted. Tandem parking is the best solution for making the best use of the property. Mr. Laidlaw added that tandem parking is a creative and beneficial way to provide an efficient project that serves the community best. Twelve parking spaces are provided for employees and customers. The alternating color of brick will reduce the mass of the structure, provide contrast and visual interest, and respect the corner. The proposed parking ramps will be significantly longer than the existing ramps, and the slopes of the proposed ramps will be 10 to 11 percent. In answer to Vice Chair Weigand's query, Mr. Laidlaw felt a parking structure on the corner would be less desirable than landscaping, an office building, or pedestrian activity. The property owner is interested in the project generating some revenue, which the office building will do. Professional offices will be a good addition to the area. In response to Commissioner Ellmore's inquiry, Mr. Laidlaw advised that the parking structure will not be a fee lot and will not have gates. Charles Klobe, Newport Heights Improvement Association Board Member, remarked that the tandem parking is designed for valet use at another time. The office building will not provide any real revenue because of the ownership of the brokerage firm and tenant. Excess parking is not needed after 5 p.m. unless there is another use on-site. He suggested the Planning Commission continue the project to such time as it includes the restaurant. Peggy Palmer advised that she did not receive an invitation to the open house. Residents opposed rooftop parking in the Mariner's Pointe project. The AutoNation project, which included rooftop parking, was denied. The parking structure appears to be closer to the homes on Cliff Drive than Mariner's Pointe and AutoNation. If the restaurant is proposed atop the existing building, it will block views from public parks. The Planning Commission should review the two projects together. Car carriers for Sterling BMW drop-off and pick-up on Avon in front of the existing building. Jed Robinson, Newport Heights Improvement Association President, questioned whether the applicant could provide additional parking in another manner and how the parking structure would be tied to the two developments as they are located on separate parcels. A parking attendant or parking fee would be important to manage for traffic flow. 5 of 10 Planning Commission Minutes August 22, 2019 David Grant, resident of Cliff Drive, commented that the project is fabulous and one of the best projects in Newport Heights and Newport Beach. It will be a tremendous improvement to the area. Stephanie Sitzer Pilalas appreciated the aesthetics of the project, but she has not investigated its impacts, contrary to Ms. Hori's statement. She would provide her position regarding the project once she received additional information. Jim Mosher had difficulty believing the concept that increasing the supply or access to parking will not increase traffic in the area. He questioned whether parking would be restricted to serving The Garden in some way. The applicant did not discuss pedestrian access to the parking structure. He could not find a condition restricting the use of the office building to professional office. Chair Koetting closed the public hearing. In response to Vice Chair Weigand's inquiry, Associate Planner Nova reported one restaurant is currently operating in the center. In reply to Commissioner Klaustermeier's query, Associate Planner Nova advised that bifurcating the two projects would not change the CEQA findings because staff is considering a similar CEQA exemption for the restaurant project. In answer to Commissioner Lowrey's questions, Associate Planner Nova indicated staff is not required to re- notice the project if it is continued. Staff wishes to review the CEQA analysis and LCP policies in relation to public comments received earlier in the day. Principal Planner Ramirez added that at least 30 days would be needed for a biologist to prepare their analysis and for staff to prepare documents for Planning Commission review in advance of a hearing. In response to Chair Koetting's inquiry, Community Development Director Jurjis related that staff has provided the Planning Commission with an application for a specific project. The Planning Commission may direct staff to present both projects. Chair Koetting opened the public hearing to inquire of the applicant. In reply to questions from the Planning Commission, Ms. Hori stated the property owner is not present. She preferred to keep the two projects separate because the 215 Riverside project has more contained issues and can be processed more quickly than the restaurant project. The two projects can operate independently. The restaurant application has not been deemed complete, and the traffic study is not complete. Vice Chair Weigand suggested presenting the projects together may be in the applicant's best interests. Ms. Hori indicated the project team would discuss the Commission's and the public's comments with the property owner. Chair Koetting remarked that presenting the projects together could facilitate a parking analysis. If the two projects remain separate, he recommended eliminating the tandem parking, which would result in an over- parked office building. Commissioner Kleiman believed the CEQA determination could determine whether the projects remain separate or together. Commissioners appear to agree that the project is well-designed. The applicant intended to create a less impactful project and attempted to scale down the project. The interconnectedness of the two projects is an issue. The restaurant project seems to be reliant on the current project. In reply to Commissioner Klaustermeier's question, Associate Planner Nova explained that staff reviewed the application and felt it could standalone and serve as parking supply for the office use, the shopping center, or a different use. As a standalone project, the applicant could proceed with construction of the project. The shopping center is ready to accept tenants with leases. Assistant City Attorney Summerhill advised that staff could re-notice a hearing if the Planning Commission continues the project to a date certain. The Planning Commission does not have to decide at the current time whether the projects proceed separately or together. 6of10 Planning Commission Minutes August 22, 2019 Vice Chair Weigand remarked that the Planning Commission could approve the current application and later deny the restaurant application. The applicant will probably not construct the two projects separately. He suggested the applicant present the projects together. Motion made by Chair Koetting and seconded by Commissioner Rosene to continue PA2019-023 to September 19, 2019 with staff to provide notice of the new date. AYES: Koetting, Weigand, Lowrey, Ellmore, Klaustermeier, Kleiman, Rosene NOES: RECUSED: ABSENT: ITEM NO.4 COAST BUSINESS CENTER PARKING WAIVER(PA2019-101) Site Location: 2121 East Coast Highway Summary: A coastal development permit and conditional use permit for a reduction of 18 of the required 160 off- street parking spaces to allow the entire 31,806-square-foot Coast Business Center building to be occupied by medical office uses. Coast Business Center is an existing office building currently occupied by a mix of professional office and medical office uses and a tutoring center. The existing on-site parking is provided in a two-level, subterranean, 142-space parking structure accessible from Avocado Avenue. Recommended Action: 1. Conduct a public hearing; 2. Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 under Class 1 (Existing Facilities)of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; and 3. Adopt Resolution No. PC2019-025 approving Coastal Development Permit No. CD2019-025 and Conditional Use Permit No. UP2019-025. Associate Planner Chelsea Crager reported the Coast Business Center is an existing office building. The application requests an 18-space parking wavier, which requires a conditional use permit and a coastal development permit. The office building was constructed in 1984 and contains 31,804 square feet of gross floor area. A two-level, subterranean parking garage provides 142 parking spaces on-site. The zoning district for the site is General Commercial Office(CO-G). Office buildings are located adjacent to and across the street from the project site. Residential zoning and a gas station are located across Avocado Avenue. The applicant would like the ability to convert all uses in the office building to medical office, which would require a total of 160 parking spaces. A parking study for the project concluded that the maximum demand would be 123 parking spaces if the entire building was medical office. Current tenants include medical office, general office, a tutoring center, and outpatient surgery. The entrance to the parking garage is not gated. Staff recommends approval of the project. In response to Chair Koetting's inquiry, Associate Planner Crager indicated the medical office building located at Hospital Road and Superior Avenue has a gross floor area of 45,100 square feet and provides 183 parking spaces, which is approximately one space per 246 square feet. Chair Koetting felt a parking rate of one space per 200 square feet is not sufficient for medical office. Commissioners disclosed no ex parte communications. Steve Mensinger, Mesa Management President, advised that the medical offices would be oriented to cosmetic medicine, which is very light and non-intensive. The building offers an abundance of parking. In reply to Commissioner Kleiman's question, Mr. Mensinger indicated the building is approximately 87 percent occupied. The vacant space was occupied by a retail use and would be divided into smaller medical offices. Chair Koetting remarked that the parking study did not explore the parking need for a 100-percent leased medical building. Therefore,the parking study did not accurately find 123 parking spaces are sufficient. In answer to Chair 7of10 Planning Commission Minutes August 22, 2019 Koetting's queries, Mr. Mensinger stated there are no plans for a pharmacy in the building. Cort Ensign of Mesa Management reported the building is occupied 79 percent by medical uses and 21 percent by office uses. The office space contains 6,400 square feet, which requires 6.5 parking spaces. Staff utilized a parking ratio of five spaces per 1,000 square feet. The building was constructed on a parking ratio of 4.6 spaces per 1,000 square feet,and the City grandfathered 18 parking spaces. With 100 percent medical office,the building needs 6.4 parking spaces per 1,000 square feet. The property manager screens tenants for high-value-per-visit activities. Most of the medical offices support their staff on five to seven visits per day. Leases restrict the number of parking spaces available to tenants. A general medical designation is generic when there are many medical subspecialties. Associate Planner Crager explained that general office is parked at a rate of one space per 250 square feet, and medical office is parked at a rate of one space per 200 square feet. In a building with a mix of uses, up to 20 percent of the building can be occupied by medical offices that are parked at one space per 250 square feet. Parking is based on gross square footage of the building. The building is currently required to have a minimum of 6,695 square feet of general office without approval of a parking waiver. Approval of a parking waiver would remove the general office minimum and allow the entire building to be used as medical office. Community Development Director Jurjis added that medical office is required to provide a higher ratio of ADA spaces. The number of ADA spaces will be reviewed during the building plan review process. Even though an ADA space is counted as a parking space, the total number of parking spaces could decrease. In answer to Vice Chair Weigand's inquiry, Associate Planner Crager indicated 142 parking spaces are provided on-site, but many of the spaces are unoccupied. In response to Commissioner Lowrey's question,City Traffic Engineer Tony Brine reported counts were conducted in the existing parking lot. The existing demand was calculated on occupied uses, and Code requirements were applied to vacant uses. The existing demand and the Code requirement totals 123 spaces. In reply to Commissioner Rosene's query, Associate Planner Crager could not think of a similar parking situation in the City. Principal Planner Ramirez added that real-time parking demand varied based on the medical practice and proximity to Hoag Hospital. Chair Koetting opened the public hearing. Jim Mosher suggested Condition of Approval No. 8 state "surrounding businesses or residences" as residences are located on two sides of the project site. Some buildings in Corona del Mar with surplus parking agree to allow other businesses to utilize the surplus parking for employees. The indicator for north on the aerial photographs is wrong. Chair Koetting closed the public hearing. Motion made by Commissioner Lowrey and seconded by Vice Chair Weigand to adopt Resolution No. PC2019-025 approving Coastal Development Permit No. CD2019-025 and Conditional Use Permit No. UP2019-025. AYES: Koetting, Weigand, Lowrey, Ellmore, Klaustermeier, Kleiman, Rosene NOES: RECUSED: ABSENT: ITEM NO. 5 TRANSFER OF DEVELOPMENT RIGHTS LCP AMENDMENT(PA2019-154) Site Location: Citywide Summary: Local Coastal Program Amendment(LCPA)to include policy and regulations pertaining to the transfer of development rights. Specifically, the proposed LCPA would: 1) include a policy in the Coastal Land Use Plan allowing transfers, and 2) provide regulations within the LCP Implementation Plan (Newport Beach Municipal Code Title 21). Recommended Action: 8of10 Planning Commission Minutes August 22, 2019 1. Conduct a public hearing; 2. Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 21065 of CEQA and State CEQA Guidelines Sections 15060 (c)(2), 15060 (c)(3), and 15378. The proposed action is also exempt pursuant to State CEQA Guidelines Section 15061(b)(3) because it has no potential to have a significant effect on the environment; and 3. Adopt Resolution No. PC2019-026 recommending the City Council authorize staff to submit Local Coastal Program Amendment No. LC2019-003 to the California Coastal Commission. Principal Planner Jaime Murillo reported the City Council initiated the item in April 2019 to include the transfer of development rights (TDR) policy and regulations in the coastal zone. TDR is a common land use tool for growth management and conservation. TDR allows the movement or transfer of development opportunities from one property, a donor site, to another property, a receiver site. TDR may provide an incentive for a property owner to preserve an historic building or a sensitive site. TDR is regulated under General Plan Policy LU 4.3, which allows the transfer of development and emphasizes that a public benefit should result from the transfer. Development on the receiving site should be within scale and compatible with the community character and should not result in traffic impacts to the area. Zoning Code Chapter 20.46 implements Policy LU 4.3. The City Council with a recommendation from the Planning Commission is the review authority for TDR in the City. Findings have to be made consistent with the goals of Policy LU 4.3. Prior to adoption of the LCP, TDR was permitted citywide including the coastal zone through the existing General Plan and Zoning Code policies. The recently certified LCP does not include provisions for TDR; therefore,the proposed amendment is needed. The amendment would add Policy 2.1.1-2 to the Coastal Land Use Plan and Chapter 21.45 to the Implementation Plan. Additional findings for a coastal development permit for a TDR are consistent with the existing Zoning Code findings, and include compliance with the City's Coastal Land Use Plan policies, and that the resulting development shall not impact public access, views, and coastal resources. TDR for Newport Center is governed by General Plan Policy LU 6.14.3. Policy LU 6.14.3 does not include a specific requirement for a public benefit or compatibility of scale. Earlier in the day, staff provided the Planning Commission with a revised resolution clarifying findings needed for TDR in Newport Center, consistent with Policy LU 6.14.3 . Staff recommends adoption of the revised resolution. If approved by the City Council, staff will submit the proposed amendment to the California Coastal Commission for review and approval. Upon approval by the Coastal Commission, staff will present the amendment to the City Council for adoption. In response to Commissioner Rosene's inquiries, Principal Planner Murillo advised that TDR may occur within the same statistical area only. Many of the commercial properties in Mariners' Mile are zoned for mixed use, which requires a commercial component on the ground floor. Many property owners are having difficulty developing a mixed-use project that provides the minimum commercial component and required parking. Mr. Matsler's letter recommends eliminating the requirement for ground-floor commercial uses and allowing 100-percent standalone residential development. That recommendation is not a part of the agenda item. In reply to Chair Koetting's question, Principal Planner Murillo indicated the statistical area restriction is specific to the City of Newport Beach. In answer to Vice Chair Weigand's question, Principal Planner Murillo explained that the Planning Commission recommends the City Council approve or deny the amendment, and the Council will review the amendment and consider the Planning Commission's recommendation. The Council could direct the Planning Commission to consider Mr. Matsler's recommendation. Chair Koetting opened the public hearing. Jim Mosher did not believe the proposed amendment contains the statistical area restriction. The narrative of the Coastal Land Use Plan should be amended to reflect the proposed policy. The Implementation Plan does not reference protections or enhancements of the LCP. He did not believe the Coastal Commission would approve the proposed amendment. Chair Koetting closed the public hearing. 9of10 Planning Commission Minutes August 22, 2019 Principal Planner Murillo explained that the statistical area limitation is contained in the General Plan and the Zoning Code. Statistical areas exist in the General Plan only, not the LCP. Staff attempts to maintain consistency in regulations between Title 20 and Title 21. Motion made by Vice Chair Weigand and seconded by Commissioner Rosene to adopt Resolution No. PC2019-026 recommending the City Council authorize staff to submit Local Coastal Program Amendment No. LC2019-003 to the California Coastal Commission. AYES: Koetting, Weigand, Lowrey, Ellmore, Klaustermeier, Kleiman, Rosene NOES: RECUSED: ABSENT.- IX. STAFF AND COMMISSIONER ITEMS ITEM NO. 6 MOTION FOR RECONSIDERATION None ITEM NO. 7 REPORT BY THE COMMUNITY DEVELOPMENT DIRECTOR OR REQUEST FOR MATTERS WHICH A PLANNING COMMISSION MEMBER WOULD LIKE PLACED ON A FUTURE AGENDA. Community Development Director Jurjis reported Senior Planner Murillo has been promoted to Principal Planner. The September 5 Planning Commission hearing is canceled. The agenda for the September 19 hearing contains several items. The General Plan Update Steering Committee is scheduled to meet on September 12 at Marina Park and September 25 in Council Chambers. ITEM NO. 8 REQUESTS FOR EXCUSED ABSENCES None X. ADJOURNMENT—8:54 p.m. The agenda for the August 22, 2019, Planning Commission meeting was posted on Friday, August 16, 2019, at 2:15 p.m. in the Chambers binder, on the digital display board located inside the vestibule of the Council Chambers at 100 Civic Center Drive, and on the City's website on Friday, August 16, 2019, at 2:30 p.m. Pet airman Lee Lowrey, Secret 10 of 10