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HomeMy WebLinkAbout21 - Appeal of Director's Determination No. DD2021-001 Interpreting Accessory Residential as an Allowed Use within Resort Hotels - Staff Response LetterAugust 23, 2021 Mr. Zach Rehm, District Supervisor California Coastal Commission South Coast Area Office 301 Ocean Blvd., #301 Long Beach, CA 90802 August 24, 2021 Item No. 21 CITY OF NEWPORT BEACV 100 Civic Center Drive Newport Beach, California 92660 949 644-3200 newportbeachca.gov/communitydevelopment RE: Director's Determination No. DD2021-01 (Accessory Residential Uses Within Resort Hotels) Dear Mr. Rehm: This letter is sent in response to your August 20, 2021 correspondence regarding the upcoming appeal of Director's Determination No. DD2021-01 ("Director's Determination"), which is on the City Council's August 24, 2021 agenda. We appreciate the support you expressed for the City of Newport Beach's ("City") City Council Policy K-4, Reducing the Barriers to the Creation of Housing, and its stated goal to increase the City's housing supply for current and future residents. We would like to take this opportunity to address the questions raised in your correspondence: This [Director's Determination], however, is not supported by the plain language of the Local Coastal Program (LCP)... which defines [a] hotel use...." The Director's Determination and City Council Policy K-4 interpret the existing LCP and related regulations to allow accessory residential uses at certain hotels. Both the Director's Determination and City Council Policy K-4 restrict these accessory residential uses to certain resort hotel properties located outside of the Coastal Commission's Appeal Jurisdiction, and limit the number of accessory residential uses to no more than 30% of the approved hotel rooms. As provided in the LCP hotel definition, hotels are allowed to have related accessory uses and those uses "may include conference rooms and meeting rooms, restaurants, bars, and recreational facilities." This listing of accessory hotel uses is meant to be illustrative in nature and not exhaustive. In this manner, the City is allowed discretion under the LCP to make interpretations about other uses which may be appropriately classified within the hotel use category, which the Director's Determination and City Council Policy K-4 both do with regards to accessory residential uses that are no more than 30% of the approved hotel rooms at a hotel property. The Community Development Director does not have the authority to change land uses or interpret the LCP differently from the plain language and designated uses. The appropriate process for changes to land use regulation in the coastal zone is an LCP amendment.... LCP Implementation Plan ("IP") Section 21.12.020 grants the Community Development Director the authority to interpret the LCP in a way that expands the permitted uses, provided that certain findings are made. The Community Development Director made said findings, which are included in the Staff Report for the City Council's agenda. Additionally, Newport Beach Municipal Code ("NBMC") Section 20.12.020(E) and LCP IP Section 21.12.020(E), clearly allow the Community Development Director to determine that an unlisted land use may be allowed, again provided that certain findings are made. The Director's Determination is an appropriate use of the Community Development Director's authority under the LCP, and is consistent with past practice. Most notably, Director's Determination No. DD2017-002/PA2017-207 was issued on October 13, 2017 for an expansion of permitted uses in the Title 20 CV Zoning District and Title 21 CV Coastal Zoning District related to the fire station located at 2708 Newport Boulevard, which is within the Coastal Zone. This interpretation occurred following certification of the City's LCP and expressly added a use that was not previously permitted in the CV Zoning District or the CV Coastal Zoning District. ...[W]e can schedule a Dispute Resolution hearing before the Coastal Commission consistent with Section 21.50.050(6)(4) of the LCP. As clearly explained in Footnote 8, Table 21.50-1 (Review Authority) of LCP Section 21.50.020(A), "Appeal procedure for interpretations shall only apply to interpretations made by the Director on the determination of whether a development is categorically excluded, exempt, non -appealable or appealable to the Coastal Commission according to the dispute resolution process in compliance with Section 21.50.50(8)." First and foremost, there is no coastal development permit application or project before the City at this time; therefore, LCP Section 21.50.050(8)(4) is not applicable in this instance. Instead, the Director's Determination is contemplated by, consistent with, and in furtherance of, City Council Policy K-4. Both City Council Policy K-4 and the Director's Determination require any project located within the coastal zone to obtain a coastal development permit. Thus, there is no question as to whether a future project is subject to a coastal development permit. If a project is located in the coastal zone, it requires a new coastal development permit, period. Similarly, both City Council Policy K-4 and the Director's Determination exclude properties that are located within the Coastal 2 Commission's Appealable Jurisdiction. Thus, there is no question as to whether a future project is appealable to the Coastal Commission. If a project is located within the Coastal Commission's Appealable Jurisdiction it is not eligible for consideration under City Council Policy K-4 or the Director's Determination. Again, thank you for supporting City Council Policy K-4 and sharing your thoughts about the Director's Determination. The clarifications provided above should bring this matter to a close. We share the California Coastal Commission's goals of increasing the State's housing supply, and we believe the Director's Determination is an important first step towards this worthy and critical goal. Sincerely, Seimone Jurjis, PKCBgr Community Development Director cc: Mayor Brad Avery City Council Members Grace Leung, City Manager 3