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HomeMy WebLinkAbout17 - Final Tract Map No. 19222 for a Residential Condominium Development Located at 900 Newport Center DriveQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report September 13, 2022 Agenda Item No. 17 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: David Keely, Senior Civil Engineer, dkeely@newportbeachca.gov PHONE: 949-644-3349 TITLE: Final Tract Map No. 19222 for a Residential Condominium Development Located at 900 Newport Center Drive ABSTRACT: City Council to consider approval of Final Tract Map No. 19222 for Condominium Purposes for a residential condominium development located at 900 Newport Center Drive. RECOMMENDATION: a) Find that potential environmental impacts have been previously mitigated through the implementation of the policies of the General Plan as evaluated in Program Environmental Impact Report for the 2006 General Plan Update (SCH No. 2006011119) (PEIR); b) Review and approve the Subdivision Agreement for Final Tract Map No. 19222 pursuant to Section 19.36.010 of the Municipal Code, and authorize the Mayor and City Clerk to execute the Subdivision Agreement; c) Review and approve the required construction securities for Final Tract Map No. 19222 pursuant to Section 19.36.030 of the Municipal Code, and authorize the Public Works Director to execute and release securities; and d) Review and approve the Final Tract Map No. 19222 located at 900 Newport Center Drive pursuant to Section 19.60.010 of the Municipal Code. DISCUSSION: Newport Center Hotel, LLC, a Delaware limited liability company (Property Owner) proposes a residential condominium development located at 900 Newport Center Drive (Attachment A). The Property Owner proposes to convert up to 30 percent of the existing 532 hotel rooms into hotel branded residences pursuant to City Council Policy K-4 and the Community Development Director's Determination No. DD2021-001. 17-1 Final Tract Map No. 19222 for a Residential Condominium Development Located at 900 Newport Center Drive September 13, 2022 Page 2 The proposed new 22-story building would include up to 159 hotel branded residential condominiums and the total number of hotel rooms at the VEA Newport Beach would be reduced from 532 currently existing to 373. The project site can be accessed from Newport Center Drive and Santa Barbara Drive. Fashion Island is located to the east, the Newport Beach Country Club golf course to the west, VEA Newport Beach hotel is located to the north and the Granville community to the south of the subject property. On May 12, 2022 the Newport Beach Planning Commission approved Tentative Tract Map No. 19222 (City Tentative Tract Map No. NT2021-003) (Attachment B) for the proposed development. (Planning Commission Resolution No. PC2022-011) (Attachment C). Per Section 19.60.010 of the Municipal Code, the City Council shall review Final Tract maps. On June 22, 2022, the applicant made the initial submittal for Final Tract Map No. 19222 (Attachment D) to the Public Works Department for approval, which is required to construct the proposed residential condominium development. Staff has confirmed that Final Tract Map No. 19222 conforms to the applicable Tentative Tract Map, its conditions of approval, all requirements of the Subdivision Map Act and the City's Subdivision regulations. Additionally, the applicant has already satisfied all applicable Tract Map conditions of approval for the residential condominium development. Per Section 19.36.010 of the Municipal Code, the City Council shall review the Subdivision Agreement (Attachment E) and required surety bonds that guarantee the completion of various required public and private improvements. On September 7, 2022, the applicant submitted construction surety bonds (Attachment F), consistent with Sections 19.36.030 of the Municipal Code, and consistent with the Public Works Department's approved cost estimate. The Subdivision Agreement and bonds have been reviewed and approved by the City Attorney's Office and Public Works Department. a 1*97_lm I►Y, U_To 6 There is no fiscal impact related to this item. ENVIRONMENTAL REVIEW: On July 25, 2006, the City Council adopted Resolution No. 2006-75, certifying the adequacy and completeness of a Program Environmental Impact Report ("EIR") for the General Plan 2006 Update (SCH No. 2006011119). The EIR was prepared in compliance with CEQA as set forth in California Public Resources Code Section 21000 et seq. and its implementing State regulations set forth in the California Code of Regulations Title 14, Division 6, Chapter 3 ("CEQA Guidelines") and City Council Policy K-3. On May 12, 2022, the Planning Commission determined on the basis of the entire environmental review record that the Project will not result in any new significant impacts that were not previously analyzed in the PEIR. An Addendum to the PEIR was prepared for the proposed Ritz -Carlton Residences that supports this conclusion. 17-2 Final Tract Map No. 19222 for a Residential Condominium Development Located at 900 Newport Center Drive September 13, 2022 Page 3 The Planning Commission found that all potential impacts associated with this Project would either be the same or less than those described in the PEIR. In addition, there are no substantial increases in the severity of any previously identified significant environmental impacts and no new mitigation measures are required for the implementation of the proposed Project; there are no changes in circumstances under which the proposed Project would be undertaken that would result in new or more severe significant environmental impacts; and there is no new information of substantial importance that would result in one or more new or substantially more severe significant impacts. Therefore, in accordance with Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, no subsequent EIR or new environmental analysis was required for the Project. 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). ATTACHMENTS: Attachment A — Location Map Attachment B — Tentative Tract Map No. NT2021-003 Attachment C — Planning Commission Resolution No. PC2022-011 Attachment D — Final Tract Map No. 19222 Attachment E — Subdivision Agreement Attachment F — Surety Bonds 17-3 ATTACHMENT A f If tl;� CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT 17-4 PROP. RET WALL , 2`i.i�i EX. TREE TO BE REMOVED LEGEND VESTING TENTATIVE TRACT MAP NO. 19222 (CITY OF NEWPORT BEACH TENTATIVE TRACT MAP NO. NT2021-003) IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA FOR CONDOMINIUM PURPOSES PROP. BLDG GROUND LEVEL VEHICLE PARKING 160.20TW 159.65TC 159.15FL ENTRY 158.20TC 157.70TG 158.20TW 150.2FG 8' RET PUMP STORM WATER TO NEWPORT CENTER DRIVE \ PROP. RET WALL-, PROP. BLDG WALL P 'X20' ODULAR WETLAND SYSTEMS CNNECT TO \ EX 18" SD VEHICLE \ TURN -AROUND BEFORE GATE LINE OF SIGHT RIGHT OF WAY/PROPERTY LINE CENTER LINE - — — — — — — — - EX. EASEMENT PROPOSED LOT LINE PROPOSED RETAINING WALL EXISTING RETAINING WALL 170 EXISTING CONTOUR w - EXISTING DOMESTIC WATER Fw — EXISTING FIRE WATER ss — EXISTING SEWER MAIN EXISTING STORM DRAIN PROP. RET WALL U) U1 \\ I \\ I CATV EXISTING CABLE TV LINE BF BACKFLOW E EXISTING ELECTRIC LINE BLDG BUILDING CB CATCH BASIN — E(Ts) EXISTING TRAFFIC SIGNAL CONDUIT CL CENTER LINE — E(SQ EXISTING STREET LIGHT CONDUIT DW DOMESTIC WATER G - EXISTING GAS LINE ESMT EASEMENT T - EXISTING TELEPHONE LINE EX. EXISTING FH FIRE HYDRANT *_0 EXISTING STREET LIGHT FW FIRE WATER SD PRIVATE STORM DRAIN LINE L LENGTH LINE OF SIGHT P/L PROPERTY LINE R RADIUS R/W RIGHT OF WAY SD STORM DRAIN rn CAS; , L F 173.09 171.18 FS FS EX. HOTEL o� <1 �— BUILDING TO BE DEMOLISHED 173.73 FS 174.00 PROP. FIRE COPING TRUCK TIIRNI—AP011NIf1 kr oc� C/) cf) o c_-4 O CV w w w EXISTING EASEMENTS PARCEL 2 MAP 2004-225, BOOK 361, PAGES 1-3 APN: 939-631-80 LOT 1 EX. HOTEL BUILDING TO REMAIN y EX. HOTEL BUILDING TO REMAIN PARCEL 1 MAP 2004-225, BOOK 361, PAGES 1-3 i APN: 939-631-80 rL1 �L2 Z co EX. SEWER ci l / CLEANOUT PER \\� f-N 19 '25"E /,2.CvF-1 - AS -BUILT PLANS c2 \j / EX. SEWEf� MANHOLE v oo­ R W 184.00FF ' (176.76FS) I � i I 11 c 6' 1 1 I I 183.64' /vo FS83.24 / , �/ ,r N<. / WIDE DWY ~1� ci 4 SD G — � ' RAW o=aF°48'22" 5WIDE cDWY 1_=37.44 R=25-OC'NEWPORTCENTER pRIVE / I o-+- WE =79.04' R-945.00' PUBLIC UTILITY EASEMENT, BOOK 11301, PAGE 1203 (TO REMAIN) WATERLINE EASEMENT, BOOK 11318, PAGE 1747 (TO REMAIN) 15' UTILITY EASEMENT 93-3805 (TO REMAIN) SOUTHERN CALIFORNIA EDISON COMPANY PUBLIC UTILITIES EASEMENT INST. 85-149874 50' 0' 25' 50' SCALE: 1 " = 50' LINE TABLE LINE # LENGTH BEARING L1 12.90' N00° 1 6'04"E L2 9.70' N89°45'48"E L3 12.84' N00°23'09"W Curve Table Curve # Length Radius Delta C 1 12.53' 19.50' 36.82' C2 3.45' 19.50' 10.14' C3 10.75' 1010.00' S p,N �o Q V SAN Q Q m G' Q NEWPORT BEACH COUNTRY CLUB SITE IENTE DR FOUR ?SEASO N\S\,��, HOTEL� �' FASHION ISLAND 0 w LOCATION MAP NITS GENERAL NOTES BIG CANYON COUNTRY CLUB 1. EXISTING LAND USE: HOTEL 2. PROPOSED LAND USE: HOTEL & HOTEL BRANDED RESIDENCES 3. NO PUBLIC UTILITIES ARE PROPOSED FOR THIS PROJECT 4. SEWAGE DISPOSAL SERVICE IS PROVIDED BY CITY OF NEWPORT BEACH 5. WATER SERVICE IS PROVIDED BY CITY OF NEWPORT BEACH 6. NO PUBLIC AREAS ARE PROPOSED 7. SEE LANDSCAPE PLANS FOR TREE PLANTING 8. SEE CONCEPTUAL GRADING PLAN FOR DIRECTION OF FLOW OF WATER COURSES AREAS GROSS AREA = 415,004 SF (9.527 AC) LOT 1 = 294,137 SF (6.752 AC) LOT 2 = 120,868 SF (2.775 AC) FLOOD ZONE THE AREA OF LAND SHOWN HEREON LIES ENTIRELY WITHIN FLOOD ZONE "AE", AS DEFINED ON INFORMATION PUBLISHED BY U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AS REFLECTED BY FLOOD INSURANCE RATE MAP PANEL NO. 06059CO382K, EFFECTIVE 3/21/2019 OWNER SITE ADDRESS NEWPORT CENTER HOTEL, LLC 4901 BIRCH ST NEWPORT BEACH, CA 92660 CONTACT: KEVIN MARTIN PHONE: (949) 838-1274 CIVIL ENGINEER 900 NEWPORT CENTER DRIVE NEWPORT BEACH, CA 92660 ORIANA SLASOR, P.E. FUSCOE ENGINEERING, INC. o QROFEss�o^ 16795 VON KARMAN, SUITE 100 IRVINE, CA 92606 PHONE: (949) 474-1960 N0. C63451 FAX: (949) 474-5315 �y Exp. 09/30/22 T ry. wivysuaos apiaa�a Sr civic- i LEGAL DESCRIPTION PARCEL 2, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP 2004-225 FILED IN BOOK 361, PAGES 1, 2, AND 3 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AS MODIFIED BY THE PARCEL MAP CERTIFICATE OF CORRECTION RECORDED APRIL 23, 2008 AS INSTRUMENT NO. 2008-190230 OF OFFICIAL RECORDS. BASIS OF BEARINGS BEARINGS HEREON ARE IN TERMS OF THE CALIFORNIA COORDINATE SYSTEM OF 1983 (CCS-83) ZONE VI, 2017.50 EPOCH, AS DERIVED LOCALLY BY ORANGE COUNTY HORIZONTAL GPS CONTROL STATIONS TRAK AND SACY, BEING N30°42'07"W AS PUBLISHED BY THE ORANGE COUNTY SURVEYOR. ALL DISTANCES WERE SCALED TO GROUND BY APPLYING THE COMPUTED COMBINATION FACTOR (CF) 0.99996333. BENCH MARK ELEVATIONS HEREON ARE IN TERMS OF THE NATIONAL VERTICAL DATUM (NAVD88), BASED LOCALLY ON THE COUNTY OF ORANGE BENCHMARK: 3K-46-91 = 95.484 FEET (1991 LEVELED) 0 Q N N a N N 01 CD 0 N i a a 0 .o i .c w 0 a_ a 0 N i U N 2 d Li 17-5 ATTACHMENT C RESOLUTION NO. PC2022-011 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA ADOPTING ENVIRONMENTAL IMPACT REPORT ADDENDUM NO. 6 (ER2022-002), MAJOR SITE DEVELOPMENT REVIEW NO. SD2021-005, MODIFICATION PERMIT NO. 2022-001, CONDITIONAL USE PERMIT NO. UP2021-053, COASTAL DEVELOPMENT PERMIT NO. CD2021-077, AND VESTING TENTATIVE TRACT MAP NO. NT2021-003 AND MAKING FINDINGS OF CONSISTENCY WITH COUNCIL POLICY K-4 AND DIRECTOR'S DETERMINATION NO. DD2021-001 FOR THE RITZ- CARLTON RESIDENCES PROJECT LOCATED AT 900 NEWPORT CENTER DRIVE (PA2021-296) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. An application was filed by Newport Center Hotel, LLC, ("Applicant") with respect to the Vea Newport Beach, a Marriott Resort and Spa, property located at 900 Newport Center Drive, and legally described as Parcel 2 in the City of Newport Beach, County of Orange, State of California. As per Map 2004-225 filed in Book 361, Pages 1, 2, and 3 of Parcel Maps, in the Office of the Orange County Recorder, as modified by the Parcel Map Certificate of Correction recorded April 23, 2008, as instrument No. 2008000190230 of the official records ("Property"). 2. The Applicant proposes the conversion of up to 159 hotel units to residential units; construction of a new building to accommodate the residential units, as well as a spa, pool, gym/fitness center and other amenities; 408-space subterranean parking structure; and 6-level (4-levels below ground and 2-levels above ground) 400-parking space parking structure to replace the existing hotel parking structure in substantially the same location which require the following land use approvals ("Project"): • Major Site Development Review No. SD2021-005: A site development review in accordance with Newport Beach Municipal Code ("NBMC") Section 20.52.080 to allow for the construction of the Project. • Modification Permit No. MD2022-001: A modification permit to allow for the tandem parking spaces in conjunction with a parking management plan. • Conditional Use Permit No. UP2021-053: A conditional use permit to allow residential use as an allowed use at a resort hotel in conjunction with a parking management program consistent with the requirement of Director's Determination No. DD2021-001 and NBMC Section 20.52.020 (Conditional Use Permits and Minor Use Permits). 17-6 Planning Commission Resolution No. PC2022-011 Paae 2 of 72 • Coastal Development Permit No. CD2021-077: A coastal development permit in authorizing the construction of the project within the Coastal Zone, consistent with the requirement of Director's Determination No. DD2021-001. • Vesting Tentative Tract Map No. NT2021-003: A vesting tentative tract map for the creation of a condominium map. • Addendum No. 6 (ER2022-002) to the 2006 General Plan Update Program Environmental Impact Report: Pursuant to the California Environmental Quality Act ("CEQA"), the addendum determined there are no new significant environmental impacts resulting from the Project. 3. The Property is designated Visitor Serving Commercial (CV) by the General Plan Land Use Element and is located within the Commercial Visitor -Serving (CV) Zoning District. 4. The Property is located within the coastal zone, but outside of the California Coastal Commission Appeal Areas. The Coastal Commission does not have jurisdiction over the Project because it is outside the Appeal Area and because prior development on the Property (e.g., Santa Barbara Condos, CDP No. 5-07-085) has been processed under a new Coastal Development Permit rather than an amendment to the original Marriott Coastal Development Permit (CDP No. 5-83-139). The subject property's Coastal Land Use Plan category is Visitor Serving Commercial (CV-B) and it is located within the Coastal Zone Commercial Visitor -Serving (CV) Coastal Zone District. 5. A public hearing was held on May 12, 2022, in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and NBMC Chapters 20.62 (Public Hearings) and 21.62 (Public Hearings). Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. All potential environmental impacts for this Project have been previously addressed and mitigated through the implementation of the policies of the General Plan as evaluated in Program Environmental Impact Report for the 2006 General Plan Update (SCH No. 2006011119) ("PEIR"); therefore, in accordance with Section 15164 of the CEQA Guidelines, an addendum to the previously certified PEIR is the appropriate environmental documentation for the Project. Pursuant to Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, when an environmental impact report has been certified for a Project, no subsequent EIR is required unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following: 1. Substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 17- 7 Planning Commission Resolution No. PC2022-011 Paae 3 of 72 2. Substantial changes occur with respect to the circumstances under which the Project is undertaken, which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or 3. New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete, shows any of the following: a. The Project will have one or more significant effects not discussed in the previous EIR; b. Significant effects previously examined will be substantially more severe than shown in the previous EIR; C. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the Project, but the Project proponents decline to adopt the mitigation measure or alternative; or d. Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the Project proponents decline to adopt the mitigation measure or alternative. On the basis of the entire environmental review record, the Project will not result in any new significant impacts that were not previously analyzed in the PEIR for the General Plan 2006 Update (SCH No. 2006011119). All potential impacts associated with this Project would either be the same or less than those described in the PEIR. In addition, there are no substantial increases in the severity of any previously identified significant environmental impacts and no new mitigation measures are required for the implementation of the proposed Project; there are no changes in circumstances under which the proposed Project would be undertaken that would result in new or more severe significant environmental impacts; and there is no new information of substantial importance that would result in one or more new or substantially more severe significant impacts. Therefore, in accordance with Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, an addendum to the previously adopted PEIR is the appropriate environmental document for the Project. SECTION 3. REQUIRED FINDINGS. In accordance with the NBMC, City Council Policy K-4, and Director's Determination No. DD2021-001, the following findings and facts in support of such findings for each of the required approvals is set forth below. 17-8 Planning Commission Resolution No. PC2022-011 Paae 4 of 72 Major Site Development Review In accordance with NBMC Section 20.52.080(F) (Site Development Reviews), the Planning Commission may approve or conditionally approve a site development review application, only after first finding that the Project is: Finding: A. Allowed within the subject zoning district; Facts in Suaaort of Findina: 1. The Property has a General Plan designation of Visitor Serving Commercial (CV), a Coastal Land Use Plan designation of Visitor Serving Commercial (CV-B), and a zoning designation of Commercial Visitor -Serving (CV). General Plan Anomaly Number 43 allows for 611 hotel rooms at the Property. In 2012, 79 of the 611 rooms were converted to residential dwelling units leaving approved 532 allowed hotel rooms in General Plan Anomaly Number 43. 2. On March 9, 2021, the City Council adopted City Council Policy K-4 (Reducing the Barriers to the Creation of Housing) by way of Resolution No. 2021-18. City Council Policy K-4 directed City staff to develop, modify as necessary, and aggressively implement strategies and action plans designed to accelerate housing production consistent with the policy, including encouraging the development of mixed -use hotels. 3. The goals of City Council Policy K-4 include interpreting ambiguities in the City's General Plan, Coastal Land Use Plan, Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the NBMC to allow hotels and motels, located outside the Coastal Commission Appeal Areas, to convert up to 30% of their approved hotel rooms into residential units on a one -for -one basis. 4. On April 30, 2021, the Community Development Director issued Director's Determination No. DD2021-001. The Director's Determination implemented City Council Policy K-4 and found that residential uses are allowable accessory use within four resort hotels, including the Newport Beach Marriott Resort Hotel. The Director's Determination also found that such residential uses are consistent with a hotel's and motel's underlying General Plan, Zoning Code, and Local Coastal Plan Program land use and zoning designations. Director's Determination No. DD2021-001 was considered on appeal by the Planning Commission on July 8, 2021 and was considered by the City Council on appeal on August 24, 2021. Both the Planning Commission and the City Council denied the appeal and upheld the Director's Determination. The time to challenge the Director's Determination has lapsed, all applicable statutes of limitations has run, and the Director's Determination is now final. 5. Project is located within the Newport Beach Marriot Resort Hotel which was identified in Director's Determination No. DD2021-001 as one of the properties where conversion of hotel rooms to residential units is allowable in order to spur housing. 17-9 Planning Commission Resolution No. PC2022-011 Paae 5 of 72 6. The primary use of the Property will remain a hotel which is identified as an allowable use within the Commercial Visitor -Serving (CV) zone. 7. Additionally, the Project is allowed as an accessory use within the zoning district in that it would allow a maximum of 30% (up to 159 hotel units) of the 532 existing units to be converted to residential units at the Property. As such, the Project, as an accessory use to the primary use as a hotel, is consistent with the applicable Commercial Visitor -Serving (CV) zoning district. Finding: B. In compliance with all of the following applicable criteria: a. Compliance with this Section, the General Plan, this Zoning Code, any applicable specific plan, and other applicable criteria and policies related to the use or structure; b. The efficient arrangement of structures on the site and the harmonious relationship of the structures to one another and to other adjacent developments; and whether the relationship is based on standards of good design; c. The compatibility in terms of bulk, scale, and aesthetic treatment of structures on the site and adjacent developments and public areas; d. The adequacy, efficiency, and safety of pedestrian and vehicular access, including drive aisles, driveways, and parking and loading spaces; e. The adequacy and efficiency of landscaping and open space areas and the use of water efficient plant and irrigation materials; and f. The protection of significant views from public right(s)-of-way and compliance with Section 20.30.100 (Public View Protection). Facts in Support of Finding: 1. The Property has a General Plan designation of Visitor Serving Commercial (CV), a Coastal Land Use Plan designation of Visitor Serving Commercial (CV-B), and a zoning designation of Commercial Visitor -Serving (CV). All CV designations allow for overnight accommodations and accessory land uses. 2. The Project is an allowable accessory land use to the primary use as a hotel based upon the facts and findings set forth in finding I.A above. As such, the Project is consistent with the applicable CV land use designations. 3. The Project is designed so as to be harmonious with the existing hotel and other adjacent developments. 4. The residential building will be setback 15 feet from Newport Center Drive and 5 feet from the westerly (interior) property line, in excess of City development standards. The height of the 22-story building would be 279 feet with additional accessory improvements and rooftop appurtenances such as elevator overruns and screened mechanical equipment up to 295 feet consistent with the existing high-rise 300 ft height limitation zone. Lastly, although there 17-10 Planning Commission Resolution No. PC2022-011 Paae 6 of 72 is no minimum standard for open space, the proposed site plan provides approximately 42% of the site as open space consisting of hardscape and landscaping. 5. The Project is compatible with surrounding development and public spaces in terms of bulk, scale and aesthetic treatments. The existing buildings at the Property range from 30 feet to 151 feet in height and overlook the Newport Beach Country Club golf course. The Project is located in Newport Center which is characterized by high- and mid -rise office buildings surrounding Fashion Island. The majority of the high-rise buildings are located nearby in Blocks 400-600, with building heights exceeding 300 feet above ground level. Low- and mid -rise buildings are concentrated in the southeastern portion of Newport Center closest to MacArthur Boulevard and Pacific Coast Highway. Several other residential communities, including Meridian, Granville, the Colony Apartment Homes, Villas at Fashion Island, Vivante Senior Housing (currently under construction), and other approved projects, are located in Newport Center. The residential building will be constructed using high -quality materials including stone, metal, wood, steel, and glass glazing accents. 6. The Project draws inspiration from the California Post Modernism architectural style which is embedded in the original vision of Fashion Island as set forth by Master Architect William Pereira. William Pereira's nautical inspired building forms, most prevalent in Pereira's work at the Pacific Life Building at Block 700 in Newport Center, combined with the vision from the original vessels of The Ritz -Carlton Yacht Collection helped form the design of the Residences. Authentic Yacht inspired detailing is integrated into the architecture through the abundant use of natural materials and the emphasis on indoor and outdoor spaces. The building architecture respects the design pillars rooted in the formation of Fashion Island, while showcasing a modern interpretation that exemplifies the enduring qualities of The Ritz -Carlton brand. 7. The Project has been designed as a 22-story building structure constructed to include a range of indoor and outdoor common space and amenities. The indoor open space amenities will include gym and fitness facilities, locker rooms, spa treatment rooms, on -site private storage, concierge services, an owners room featuring billiards, a library and other uses. The outdoor amenities will include a resort style pool and spa, lounge seating, tranquil gardens, and a dog relief area. Common indoor amenities totaling 32,424 square feet will be located at the ground floor, basement level (132), and on floors 16 and 17. Common outdoor amenities totaling 9,496 square feet will be located on the ground level and on floor 16. In addition to outdoor amenity areas, there will be 65,534 square feet of hardscape and landscape area. Each unit will contain private open space via a balcony. There is 143,038 square feet of private open space, which averages 899 square feet per unit. 8. The Project is integrated as a unified development through the use of similar architectural style and design elements, on -site parking, and adequate vehicular and pedestrian circulation with adjacent properties. The residential building will replace an existing building at the Property where setbacks along each street frontage are appropriate to support pedestrian connectivity within Newport Center and reduce the appearance of bulk. The street setbacks are consistent with surrounding zoning districts and afford a greater interface with the adjacent rights -of -way to ensure compatibility with the pedestrian environment. 17-11 Planning Commission Resolution No. PC2022-011 Paae 7 of 72 9. The Project includes extensive landscape and hardscape areas with pedestrian circulation throughout the Property with a variety of plant materials including trees, vines, shrubs, and turf throughout the site and in open space areas. Evergreen specimen trees (Pinus species or similar) will be planted at the outer portions of the site while canopy shade trees will be planted around the motorcourt and event lawn. Smaller accent trees (such as Olea europea or similar) are proposed around the pool area. 10. The height, bulk, and scale of the Project buildings are comparable to heights of existing buildings within Newport Center. The Property is located within the City's High -Rise Height Limitation Zone, which in Newport Center includes the Property, and the seven surrounding blocks to the north and east. Building heights in these blocks range from approximately 100 feet to 315 feet above ground level. The Property was originally contemplated to have buildings with a height of 375 feet; however, this height limit was reduced in 2010 to the current height limit of 300 feet above ground level. 11. Mechanical equipment for the residential units has been located within the parking garage as well as enclosures at the roof level to reduce noise impacts and minimize aesthetic impacts. The rooftop equipment, stairways, and elevator overrun will be screened from street view. 12. The Project has been designed to avoid conflicts among uses, such as noise, vibration, lighting, odors, and similar impacts. The Project's new residential building will replace an existing hotel building and is designed to maintain privacy and protection for the surrounding residential and commercial uses as well as its residential tenants. Walkways and egress are sufficient throughout the Project as reviewed by the Building Division and the City Traffic Engineer. Existing pedestrian easements will be maintained at an appropriate width along the eastern property line and along Newport Center Drive to ensure adequate access across the site. 13. Pursuant to Title 20 (Planning and Zoning) of the NBMC, the Project exceeds the minimum standard requirements for parking. All of the parking is provided on -site via a subterranean valet -served parking structure with tandem parking approved by Modification Permit 2022- 001 and the Ritz -Carlton Residences Parking Management Plan dated April 13, 2022 ("Parking Management Plan") that was prepared for the Project. 14.Access to the site, on -site circulation, and parking areas are designed to comply with City standards. Vehicle traffic will be directed to an entrance on the south side of the Property along Newport Center Drive (separate from the hotel entrance). The new access will align with the existing intersection and direct vehicles to the new porte cochere to valet services. Service and fire access will be maintained by a new secondary driveway constructed along the southern boundary of the site. All parking will be valet -served with a new 5-level, 408- space subterranean parking structure constructed under the porte cochere and entry drive area. 15.On-site circulation, project access, and parking areas are designed to provide standard sized parking spaces (with the exception of a number of tandem parking spaces), a 17-12 Planning Commission Resolution No. PC2022-011 Paae 8 of 72 minimum 44' wide driveway, 26' wide drive aisles, and the minimum vehicle turning radius to provide adequate access for residents and guests, including a new secondary drive for emergency vehicles, delivery trucks, and refuse collections vehicles, as determined by the City Traffic Engineer. 16. The site design provides a new curb cut for emergency access along Newport Center Drive. The Project provides adequate sight distance at each driveway, as determined by the City Traffic Engineer. 17. The Project's material palate consists of a neutral stone and glass building fagade compatible with the surrounding development in Newport Center. The design will complement, enhance, and be compatible with the adjacent retail and office properties. The exterior will be comprised predominantly of concrete, metal finishes and glass; design accents at the ground elevation such as finished wood coverings and other stone and metal accents are integrated to enhance the expression of a modern architectural style. 18. The Project is subject to the City's Water -Efficient Landscape Ordinance (Chapter 14.17 of NBMC) and compliance will be confirmed at plan check prior to issuing building permits. 19.Addendum No. 6 prepared for the Project analyzed whether the Project would conflict with applicable zoning and other regulations governing scenic quality. The Project uses would be consistent with the CV zoning designation. The PEIR emphasizes that the General Plan Update would concentrate infill development and redevelopment in several specific subareas, including Newport Center/Fashion Island (i.e., high -density residential uses are proposed in the Newport Center/Fashion Island area). The Project will demolish a 1970s building and replace it with new hotel branded residences, and remove the existing structured parking on -site to develop a new parking structure and subterranean parking for the hotel branded residences. The Project's new residential building will be aesthetically compatible with existing surroundings and will not have a material impact on visual character or public views. 20. The Project will be visible from SR-1, which is designated a Coastal View Road, and also from several public view points within the City. The majority of these view points feature views of the Newport Back Bay, and Newport Harbor, and are generally oriented in a westerly orientation. The Project is located more than 3,000 feet from the water, and will not block views from a Coastal View Road or public viewpoints because the predominate view from SR-1 is to the coastline, which is in the opposite direction compared to the Project. When the Project is developed as proposed, it would be of a comparable height to other nearby structures in Newport Center with no potential impact to scenic resources visible from SR-1. The photo simulations provided in Section 3.2 of Addendum No. 6 depict the new structure from several view points and demonstrate that Project will not impact or degrade coastal views. Finding: C. The proposed development is not detrimental to the harmonious and orderly growth of the City, nor endanger, jeopardize, or otherwise constitute a hazard to the public convenience, 17-13 Planning Commission Resolution No. PC2022-011 Paae 9 of 72 health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed development. Facts in Support of Finding: The Project has been designed to ensure that potential conflicts with surrounding land uses are minimized to the extent possible to maintain a healthy environment for both businesses and residents by providing an architecturally pleasing Project with articulation and building modulations to enhance the urban environment consistent with development in Newport Center. 2. The Project provides an architecturally pleasing nautical/contemporary design theme, which is consistent with the original master plan design for Newport Center, and features articulation and building modulation to enhance the urban environment consistent with existing buildings in Newport Center. The Project provides pedestrian paths and landscape areas that will create connectivity to surrounding uses. 3. The Property is located in a developed commercial area with limited sensitive land uses located nearby. The overall height of the Project is consistent with the High -Rise Height Limitation Zone and will not materially impact any public views from General Plan designated vantages or significantly shade surrounding properties as demonstrated in Section 3.1, Aesthetics, of Addendum No. 6. a. The Property is located in close proximity to the Granville Condominiums and will introduce a new high-rise residential building where existing low-rise hotel rooms are developed. Section 20.20.030 of the NBMC requires a 5-foot setback in the CV zone when adjacent to residential development. The property line is located within a sloped landscape area between the hotel and the Granville Condominiums. The nearest point of the residential structure will be setback approximately 35 feet from the property line. There will be a 5-foot setback from the internal property line to a 24' to 30' wide emergency access and service drive. The service drive will gradually slope downward and provide access to the subterranean parking structure. The service drive will provide a buffer between the development at grade level. b. A shade and shadow analysis was prepared to assess the impacts of the new residential building on the Granville Condominiums and the Meridian condominium complex. The Project would cast shadow on the garage portion of one residence at the Grandville community at 9:00 a.m. during Midsummer Solstice (June 21), and over some residences at the Meridian condominium complex at 9:00 a.m. during Midwinter Solstice (December 21), as shown in Section 3.1.C, Aesthetics of Addendum No. 6 Exhibit 3.1- lb and 3.1-1d, respectively. By 10:00 a.m., the shadows would not cover these residences and there would be no impact from shade/shadow to people residing in the area. Due to the short duration of anticipated shadows on off -site properties, Addendum No. 6 concluded that the Project would result in less than significant shade and shadow impacts and that no mitigation is required. 17-14 Planning Commission Resolution No. PC2022-011 Paae 10 of 72 4. The proposed subterranean parking structure provides 408 parking spaces including ADA accessible spaces, standard spaces and tandem parking spaces, and through the use of valet parking will accommodate 100% of the Project's anticipated parking demand based upon the Parking Management Plan. Additionally, the parking lot and vehicular access thereto has been designed to accommodate and provide safe access for passenger vehicles, emergency vehicles, delivery trucks, and refuse collection vehicles, as analyzed in Section 3.17 (Transportation) of Addendum No. 6. 5. The Project includes a new parking structure including four levels below ground and 2 levels above ground to serve the existing hotel. The new parking structure will replace the existing parking structure in substantially the same location and provide 400 parking spaces. A total of 808 parking spaces (408 for hotel -branded residence and 400 for hotel use) are proposed for the Project which will adequately serve the Property. The Project will not result in any changes in vehicular circulation for the hotel. 6. Direct vehicular access to the Project will be provided from an existing driveway on Newport Center Drive along the south side of the Property. Vehicles will be directed along a new access drive to the new porte cochere where valet service will deliver cars into a new subterranean parking structure. A new secondary driveway will be constructed along the southern boundary of the Property to provide service and fire access from Newport Center Drive along the western boundary of the Property to the Event Lawn. 7. Emergency vehicles would access the Property along Newport Center Drive and onto the new service drive. The staging area will be marked for exclusive use by the Fire Department. 8. The Project has been designed to accommodate and provide access for delivery trucks, moving trucks, and refuse collections vehicles, as determined by the City Traffic Engineer. Delivery trucks will utilize the entry off of Newport Center Drive, while refuse collections vehicles will load trash along the service driveway. The Project includes the provision of freight elevators to ensure that residents can safely move in and staff can adequately service the building. 9. The Project is subject to the City's Outdoor Lighting requirements contained within NBMC Section 20.30.070 (Outdoor Lighting) of the Zoning Code. Condition No. 14 requires the preparation of a photometric study based on the final lighting plans to ensure that site and architectural lighting conforms with lighting requirements that the project is not excessively illuminated. Condition No. 15 also provides additional protection where the Community Development Director can order the diming of lighting should it be necessary. 10.The construction will comply with all Building, Public Works, and Fire Codes. All ordinances of the City and all conditions of approval shall be complied with. The Project includes a Fire Master Plan to ensure enhanced public safety and fire access to the property. II. Modification Permit 17-15 Planning Commission Resolution No. PC2022-011 Paae 11 of 72 This Project requires a modification permit, consistent with Section 20.52.050 (Modification Permits) of the NBMC. In accordance with Section 20.52.050(E), the Planning Commission may approve or conditionally approve a modification permit if on the basis of the application, materials, plans, and testimony (orally and/or in writing) submitted, the Planning Commission first finds all of the following: Finding: A. The requested modification will be compatible with existing development in the neighborhood, Facts in Support of Finding: 1. The Project requires the demolition of an existing hotel building and parking structure, and construction of a new residential building, a new 408-space subterranean parking structure and new 400-space above grade parking structure. 2. The residents will be served by valet service that will deliver vehicles into a new 408-space subterranean parking structure that includes tandem parking. The Project is required to provide 398 parking spaces, and 408 will be provided. 3. Tandem spaces reduce the footprint and depth of the subterranean garage, making it a more efficient use of land. The Project will be adequately served by the new subterranean parking structure. At grade, parking features include a porte cochere where residents and guests will be met by a valet for vehicle drop off. Tandem parking in a subterranean parking garage is compatible with the existing commercial, retail, residential, and hotel uses in Newport Center. 4. Valet and tandem parking arrangements for hotel, commercial, and high -end residential building operations are used within the City. When operated according to an approved valet plan and by a professional valet service, valet parking has proven a proficient way to maximize parking efficiency and on -site parking demand. 5. Access to the Property and valet -services is from Newport Center Drive and has been determined to be adequate for the use and is compatible with the other commercial lots in the area. Finding: B. The granting of the modification is necessary due to the unique physical characteristic(s) of the property and/or structure, and/or characteristics of the use; Facts in Support of Finding: The Project is located in Newport Center which is characterized by high- and mid -rise office buildings surrounding Fashion Island. The Property was originally developed in 1975 and the existing parking garage was built in 1984. Because Newport Center Drive is circular, 17-16 Planning Commission Resolution No. PC2022-011 Paae 12 of 72 many of the properties fronting it are not a precise square or rectangular shape. However, the Property's shape is even more unique in that it is elongated and can be characterized as a cross between rhombus and trapezium shaped. 2. Due to the lot size, width and depth of the site, subterranean parking with tandem parking spaces is necessary to accommodate the parking. 3. The Project's 100% valet service for all residents and guests is consistent with the use of the Property as a Ritz -Carlton Residence. Finding: C. The granting of the modification is necessary due to practical difficulties associated with the property and that the strict application of the Zoning Code results in physical hardships that are inconsistent with the purpose and intent of the Zoning Code; Facts in Support of Finding: 1. The Project is located in Newport Center which is characterized by high- and mid -rise office buildings surrounding Fashion Island. The Project will provide parking in excess of the City's residential parking requirements to ensure that all residents, guests and employees will have adequate access to parking. 2. However, as indicated above, the shape of the Property is unique. Given its unique shape of the property combined with the building setback requirements, landscaping, vehicular access and open space requirements at the Property, tandem parking is appropriate. 3. The available on -site area to provide parking has been maximized and can accommodate a maximum of 408 parking spaces in the Project's subterranean parking structure while still providing landscaping, adequate vehicular access, and open space at the Property. 4. Granting Modification Permit No. 2022-001 meets the intent of the NBMC by providing the required number of parking spaces on -site without the need to use off -site parking spaces. Finding: D. There are no alternatives to the Modification Permit, that could provide similar benefits to the applicant with less potential detriment to surrounding owners and occupants, the neighborhood, or to the general public; and Facts in Support of Finding: 1. An alternate solution would be to expand the footprint of the subterranean residential parking structure or increase the size of the hotel parking structure. Both of those options would require a significant change to the scope of work and may result in a structure with undesirable bulk, or scale. 17-17 Planning Commission Resolution No. PC2022-011 Paae 13 of 72 2. Vehicles for the Project will access the property from an existing driveway on Newport Center Drive that will take residents and guests to the porte cochere where valet services will park vehicles in the subterranean parking garage. On -site circulation is not expected to be impacted by the use of tandem spaces for valet parking 3. The inclusion of tandem parking stalls will not be a detriment to the surrounding neighborhood or general public because the number of parking spaces will exceed the code requirement. Valet operations will manage all resident and guest parking, thereby eliminating any impact to the general public or surrounding owners, occupants and the neighborhood. The subterranean parking structure takes up the majority of the property to the east of the building and allows for the above grade surface to contain substantial setbacks, open space, and landscape treatments. Because the parking will be managed by valet operations, as is standard for a Ritz -Carlton Residence, there is no alternative to the tandem parking that would provide similar benefits of increased open space and landscape treatments. Finding: E. The granting of the modification would not be detrimental to public health, safety, or welfare to the occupants of the property, nearby properties, the neighborhood, or the City, or result in a change in density or intensity that would be inconsistent with the provisions of this Zoning Code. Facts in SUDDort of Findina: 1. The parking lot has been reviewed for adequate access and circulation for use by residents, guests, employees, and access by emergency vehicles. 2. Prior to implementation of the Project a final valet parking management plan is required to be reviewed and approved by the Public Works Department and Community Development. 3. The inclusion of tandem parking will not be a detriment to public health, safety, or welfare to the occupants of the property or nearby properties, the neighborhood or the City because the parking will be managed by valet operation, and will exceed the required number of parking spaces which will ensure that there is adequate parking on -site and that off -site parking will not be required by residents, guests or employees. Tandem parking is allowed by the zoning code, subject to a modification permit. The addresses the provision of valet parking for the Project. III. Conditional Use Permit This Project requires a conditional use permit, consistent with NBMC Section 20.52.020 (Conditional Use Permits and Minor Use Permits) and the requirements of Director's Determination No. DD2021-001. In accordance with Section 20.52.020(F), the Planning Commission may approve or conditionally approve a conditional use permit, only after first finding all of the following: 17-18 Planning Commission Resolution No. PC2022-011 Paae 14 of 72 Finding: A. The use is consistent with the General Plan and any applicable specific plan; Facts in Support of Finding: 1. The conversion of up to 159-hotel branded residences is consistent with General Plan designation of Visitor Serving Commercial (CV); a Coastal Land Use Plan designation of Visitor Serving Commercial (CV-B); and a Zoning designation of Commercial Visitor - Serving (CV), which allows for the Project site to provide overnight accommodations and accessory land uses. City Council Policy K-4 and Directors Determination No. DD2021-001 permit residential dwellings as an accessory use to the primary use of the Property as a resort hotel. The Director's Determination contains regulations and restrictions to ensure the allowance of residential accessory units within a hotel property does not change the primary land use, which remains resort hotel. 2. The Project site is not located within a Specific Plan area. Finding: B. The use is allowed within the applicable zoning district and complies with all other applicable provisions of this Zoning Code and the Municipal Code; Facts in Support of Finding: 1. On March 9, 2021, the City Council adopted Resolution No. 2021-18 Reducing the Barriers to the Creation of Housing (City Council Policy K-4). City Council Policy K-4 directed City staff to develop, modify as necessary, and aggressively implement strategies and action plans designed to accelerate housing production consistent with the policy, including encouraging the development of mixed -use hotels. 2. The goals of City Council Policy K-4 include interpreting ambiguities in the City's General Plan, Coastal Land Use Plan, Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the NBMC. City Council Policy K-4 allows hotels and motels, located outside the Coastal Commission Appeal Areas, to convert up to 30% of their approved hotel rooms into residential units on a one -for -one basis. 3. On April 30, 2021, the Community Development Director issued Director's Determination No. DD2021-001. The Director's Determination implemented City Council Policy K-4 and found that residential uses are allowable as an accessory use within four resort hotels, including the Newport Beach Marriott Resort Hotel. The Director's Determination also found that such residential uses are consistent with a hotel's and motel's underlying General Plan, Zoning Code, and Local Coastal Plan Program land use and zoning designations. Director's Determination No. DD2021-001 was considered on appeal by the Planning Commission on July 8, 2021, and was considered by the City Council on appeal on August 24, 2021. Both the Planning Commission and the City Council denied the appeal and upheld 17-19 Planning Commission Resolution No. PC2022-011 Paae 15 of 72 the Director's Determination. The time to challenge the Director's Determination has lapsed, the statute of limitations has run, and the Director's Determination is now final. 4. The conversion of hotel units to residential as an accessory use is consistent with City Council Policy K-4 and Director's Determination No. DD2021-001. The City has already identified the Property as a qualifying resort hotel offering destination accommodations, including restaurant and recreation facilities. 5. The Project complies with City Council Policy K-4 and Director's Determination No. DD2021-001 for a conversion of up to 30% (up to 159 hotel units) of the 532 existing units to hotel branded residences. The conversion will result in a 30% decrease in number of hotel rooms. The total number of units at the property will remain the same, at 532 units. The VEA Newport Beach, A Marriott Resort and Spa is located outside the California Coastal Commission Appeal Areas, identified in California Public Resources Code Section 30603(a). 6. The new hotel -branded residence building complies with the CV zoning district design standards. The proposed building will be setback 15 feet from Newport Center Drive and 5 feet from the southerly (interior) property line all in excess of the standards. The height of the 22-story building would be 279 feet with additional accessory improvements and rooftop appurtenances such as elevator overruns and screened mechanical equipment up to 295 feet consistent with the existing high-rise 300 ft height limitation zone. Lastly, although there is no minimum standard for open space, the proposed site plan provides approximately 42% of the site as open space consisting of hardscape and landscaping. Finding: C. The design, location, size, and operating characteristics of the use are compatible with the allowed uses in the vicinity, Facts in Support of Finding: The Project is located in Newport Center which is an area characterized by high- and mid - rise office buildings surrounding Fashion Island. The majority of the high-rise buildings are located nearby in Blocks 400-600, with building heights exceeding 300 feet above ground level. Low- and mid -rise buildings are concentrated in the southeastern portion of Newport Center closest to MacArthur Boulevard and Pacific Coast Highway. The Project height is consistent with the City's High -Rise Height Limitation Zone established in the Zoning Code. 2. The design of the structure will include high -quality materials including wood, stone, steel and metal accents, and glass fiber reinforced concrete (GFRC), and expansive openings, which is consistent with the high -quality design in Newport Center. The new hotel -branded residence building will be oriented on the site in such a manner as to reduce the bulk and scale as viewed from Newport Center Drive, and from surrounding properties. 3. The Project is compatible with the existing resort hotel, and the surrounding area. There are several other residential communities, including Meridian, the Colony, Villas at Fashion 17-20 Planning Commission Resolution No. PC2022-011 Paae 16 of 72 Island, Vivante Senior Housing (currently under construction), and other approved residential projects, located in Newport Center. 4. The Project will provide residents the opportunity to access the shopping, dining and other resident -serving amenities within the Fashion Island/Newport Center area. Finding: D. The site is physically suitable in terms of design, location, shape, size, operating characteristics, and the provision of public and vehicle (e.g., fire and medical) access and public services and utilities; and Facts in Support of Finding: The proposed improvement area consists of 2.775 acres within the 9.53-acre VEA Newport Beach, A Marriott Resort and Spa property. The new hotel -branded residence building will replace an existing hotel building. The site can accommodate the new hotel -branded residence building and provide adequate parking. The Project would result in less traffic compared to the existing 532 room hotel. The hotel branded residences would generate 43 AM peak hour trips, 51 PM peak hour trips, and 722 average daily trips (ADTs). Combined, the existing hotel and new hotel branded residences would generate 215 AM peak hour trips and 271 PM peak hour trips, while the existing hotel generates 245 AM peak hour trips and 314 PM peak hour trips. The ADT generation for the combined existing hotel and new hotel branded residences is 3,702, and the ADT for the existing hotel is 4,251. The anticipated trip generation for the combined existing hotel and the proposed hotel branded residences would result in a trip reduction of 549 ADTs. 2. The Project is compatible with surrounding development and public spaces in terms of bulk, scale and aesthetic treatments. The existing buildings at the Project site range from 30 feet to 151 feet in height and overlook the Newport Beach Country Club golf course. The Project is located in Newport Center which is characterized by high- and mid -rise office buildings surrounding Fashion Island. The majority of the high-rise buildings are located nearby in Blocks 400-600, with building heights exceeding 300 feet above ground level. Low- and mid -rise buildings are concentrated in the southeastern portion of Newport Center closest to MacArthur Boulevard and Pacific Coast Highway. Several other residential communities, including Meridian, Villas at Fashion Island, Vivante Senior Housing (currently under construction), and other approved projects, are located in Newport Center. The residential building will be constructed using the highest quality materials including stone, metal, wood, steel, and glass glazing accents. 3. Service and fire access will be maintained by a new secondary driveway from Newport Center Drive and drive aisle along the southern boundary of the site. All parking will be valet -served with a new 5-level, 408-space subterranean parking structure constructed under the porte cochere and entry drive area. 4. The Project includes a new parking structure (4-levels below ground, 2-levels above ground) to serve the existing hotel. The new parking structure will replace the existing 17-21 Planning Commission Resolution No. PC2022-011 Paae 17 of 72 parking structure in substantially the same location and provide 400 parking spaces via four subterranean levels and two above ground levels. A total of 808 parking spaces (408 for hotel -branded residence and 400 for hotel use) are proposed for the Project which will adequately serve the site. The Project will not result in any changes in vehicular circulation for the hotel. Finding: E. Operation of the use at the location proposed would not be detrimental to the harmonious and orderly growth of the City, or endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the proposed use. Facts in Support of Finding: The Project provides an architecturally pleasing theme with articulation and building modulation to enhance the urban environment consistent with existing buildings in Newport Center. The Project provides pedestrian paths and landscape areas that will create connectivity to surrounding uses. 2. The Project will redevelop an old building with high -density hotel branded residences and remove the existing surface parking on -site to develop a parking structure and subterranean parking for the hotel branded residences. 3. The Project includes extensive landscape and hardscape areas with pedestrian circulation throughout the site with a variety of plant materials including trees, vines, shrubs, and turf throughout the site and in open space areas. Evergreen specimen trees (Pinus species or similar) will be planted at the outer portions of the site while canopy shade trees will be planted around the motorcourt and event lawn. Smaller accent trees (such as Olea europea or similar) will be planted around the pool area. 4. Access to the site, on- site circulation, and parking areas are designed to comply with City standards. Vehicle traffic will be directed to an entrance on the south side of the property along Newport Center Drive (separate from the hotel entrance). The new access will align with the existing intersection and direct vehicles to the new porte cochere to valet services. Service and fire access will be maintained by a new secondary driveway constructed along the southern boundary of the site. All parking will be valet -served with a new 5-level, 408- space subterranean parking structure constructed under the porte cochere and entry drive area. 5. The Project provides parking in excess of the parking requirements via the inclusion of tandem parking spaces. The use of valet parking will allow for the active management of tandem parking without resident or guests facing the task of tandem parking themselves. The tandem parking combined with the valet parking program will accommodate 100% of the Project' s anticipated parking for residents, guests and employees. Additionally, a service drive is included to provide safe and separate access for emergency vehicles, 17-22 Planning Commission Resolution No. PC2022-011 Paae 18 of 72 service and delivery trucks, moving vans, and refuse collection vehicles as detailed in the Parking Management Plan. IV. Coastal Development Permit This Project requires a coastal development permit, consistent with NBMC Section 21.52.015 (Coastal Development Permits) and the requirement of Director's Determination No. DD2021- 001. In accordance with Section 21.52.015(F), the Planning Commission may approve or conditionally approve a coastal development permit, only after first finding that the proposed development: Finding: A. Conforms to all applicable sections of the certified Local Coastal Program (e.g. development standards, no impacts to public views, natural resources, etc.); and Facts in Support of Finding: 1. The hotel branded residences are consistent with the General Plan designation of Visitor Serving Commercial (CV); a Coastal Land Use Plan designation of Visitor Serving Commercial (CV-B); and a Zoning designation of Commercial Visitor -Serving (CV), which allows for the Project site to provide overnight accommodations and accessory residential uses as part of a resort hotel land use. 2. The proposed Project is consistent with City Council Policy K-4 (Reducing the Barriers to the Creation of Housing) and Director's Determination No. DD2021-001, which allows for accessory residential uses within resort hotels subject to seven separate requirements including the following: a. Accessory residential is only allowed within resort hotels, a self-contained destination that provides for all needs in one location. The Project is part of the VEA Newport Beach, A Marriott Resort and Spa, which is a self-contained destination providing restaurant, bar, recreational facilities including a pool, spa, and a variety of other guest -serving uses. b. Must be located outside the appeal area identified in California Public Resource Code Section 30603(a). The Project is located outside the appeal area identified in California Public Resources Code Section 30603(a) as depicted on the Post-LCP Certification Permit and Appeal Jurisdiction Map, and is located at the northeastern most boundary of the coastal zone. c. Approved hotel rooms may be converted to residential units but only on a one -for -one basis. PA2012-020 set the General Plan limit for hotel rooms at 532 in Anomaly 43 where the Project is located, which is consistent with the Coastal Implementation Plan. The proposed hotel branded residences would include up to 159 hotel branded residences with a corresponding reduction in the number of hotel rooms. No new intensity would be created, rather the units would be converted on a one-to-one basis 17-23 Planning Commission Resolution No. PC2022-011 Paae 19 of 72 via the reduction in the existing number of approved hotel rooms. The total units at the VEA Newport Beach, A Marriott Resort and Spa would remain at 532. Of the 532 units, 373 would be traditional hotel rooms and up to 159 would be hotel branded residences. d. The residential use shall at all times be accessory to the hotel use, and the residential units shall comprise no more than 30% of the approved hotel rooms. The hotel branded residences will be part of the resort hotel campus and are accessory to the hotel use. The Project will result in up to 159 hotel branded residences which represents the conversion of up to 30% of the existing 532 hotel rooms. e. The residential units may be located within a repurposed hotel or in a new residential structure. The proposed hotel branded residences will be located within a new hotel - branded residential structure. f. A conditional use permit and coastal development permit is required to ensure adequate parking through surplus parking, shard parking, or the adoption of a parking management plan. The Project exceeds the parking requirements for both the project itself and the hotel. The parking will be managed via valet operations as detailed in the Parking Management Plan, and the Parking Management Plan for the VEA Newport Beach, A Marriott Resort and Spa, dated April 13, 2022. g. Potential impacts to public access, affordable housing, and the loss of transient occupancy tax must be mitigated by entering into a Development Agreement with the City of by some other means deemed appropriate. (1) The Project does not result in impacts to public access insomuch as the property is an existing resort hotel which is available to paying guests. The property does not provide public access to the coast or public access to other recreational opportunities. In addition, the existing resort hotel does not provide low-cost accommodations, and the Project will not result in an impact to existing low-cost accommodations as analyzed in NBMC Section 21.48.025 Feasibility and Impact Analyses for The Ritz -Carlton Residences dated March 18, 2022, and attached as Exhibit I. (2) The Project will result in the creation of new housing consistent with the purpose and intent of City Council Policy K-4 and Director's Determination No. DD2021-001. The City does not have an Inclusionary Housing Ordinance or an Affordable Housing Implementation Plan. Nevertheless, it is recognized that affordable housing is an important component of any new residential housing project, and the proposed Project will provide an in -lieu fee related to affordable housing as a condition of approval to the Vesting Tentative Tract Map as detailed in those findings. (3) The Transient Occupancy Taxes (TOT) Analysis Consistent with Newport Beach City Council Policy K-4 for Conversion of Hotel Rooms to Project dated March 18, 2022 and attached as Exhibit J analyzed the potential loss of TOT associated with the reduction of up to 159 hotel rooms. The analysis concludes that although the reduction in hotel rooms associated with Project implementation would affect TOT 17-24 Planning Commission Resolution No. PC2022-011 Paae 20 of 72 receipts to the City, this reduction in TOT would be fully mitigated because the 373 remaining hotel rooms would be significantly upgraded compared to the existing 532 hotel rooms, and each upgraded room is expected to rent for a higher room rate — and thus, generate higher TOT- than would the existing unrenovated rooms. The analysis concludes that the projected 20-Year combined TOT and property taxes to be generated by the Project would result in total tax receipts to the City of approximately $136,413,736, which is $7,694,975 more than the City would otherwise receive if the Project was not built. This represents a net increase in revenue for the City compared to the hotel alone. As such, no mitigation is necessary because the overall assessment of TOT and property taxes will result in a net financial benefit to the City. 3. The proposed Project complies with the CV zoning district design standards including setback, height, parking, open space as further detailed in the Site Development Review findings. The proposed hotel -branded residence building will exceed all required setbacks. The height of the 22-story building would be 279 feet with additional accessory improvements and rooftop appurtenances such as elevator overruns and screened mechanical equipment up to 295 feet which is within the existing high-rise height limitation zone of 300 feet. Parking for the hotel branded residences will be subterranean, and the Project will provide parking in excess of the code requirement. Although there is no minimum standard for open space, the proposed site plan provides approximately 42% of the site as open space consisting of hardscape and landscaping and provides parking in excess of the parking requirements. The Project will include the construction of a new parking structure to replace the existing hotel parking structure in a similar location but with a smaller footprint and enhanced vehicular circulation. The hotel parking structure will include four subterranean levels and two above ground levels and be setback from Newport Center Drive approximately 15 feet. 4. The Project is compatible with surrounding development and public spaces in terms of bulk, scale and aesthetic treatments. The property is within the High -Rise Height Limitation Zone, allow for buildings up to 300 feet. The existing buildings at the Project site range from 30 feet to 151 feet in height and overlook the Newport Beach Country Club golf course. The Project is located in Newport Center which is characterized by high- and mid -rise office buildings surrounding Fashion Island. The majority of the high-rise buildings are located nearby in Blocks 400-600, with building heights exceeding 300 feet above ground level. Low- and mid -rise buildings are concentrated in the southeastern portion of Newport Center closest to MacArthur Boulevard and Pacific Coast Highway. Several other residential communities, including Meridian, Villas at Fashion Island, Vivante Senior Housing (currently under construction), and other pending projects, are located in Newport Center. The residential building will be constructed using high quality materials including stone, metal, wood, steel, and glass glazing accents. 5. The Project site is not abutting a coastal view road, public access way, or Coastal Viewpoint as identified in the Coastal Land Use Plan. Extensive photo simulations were prepared to depict the proposed Project from more than 10 locations throughout the City, from vantage points near and far. These photo simulations depict the proposed Project within the broader context of large buildings in Newport Center. Public views and viewpoints were assessed 17-25 Planning Commission Resolution No. PC2022-011 Paae 21 of 72 including views from Newport Harbor, Castaways Park, Back Bay View Park, and many other prominent locations. The proposed Project does not inhibit public views of the bay nor do they inhibit views from public viewpoints or parks. 6. The Project includes extensive landscape and hardscape areas with pedestrian circulation throughout the site with a variety of plant materials including trees, vines, shrubs, and turf throughout the site and in open space areas. Evergreen specimen trees (Pinus species or similar) will be planted at the outer portions of the site while canopy shade trees will be planted around the motorcourt and event lawn. Smaller accent trees (such as Olea europea or similar) will be planted around the pool area. 7. Access to the site, on- site circulation, and parking areas are designed to comply with City standards. Vehicle traffic will be directed to an entrance on the south side of the property along Newport Center Drive (separate from the hotel entrance). The new access will align with the existing intersection and direct vehicles to the new porte cochere to valet services. Service and fire access will be maintained by a new secondary driveway constructed along the southern boundary of the site. All parking will be valet -served with a new 5-level, 408- space subterranean parking structure constructed under the porte cochere and entry drive area. 8. The Project includes the replacement of the existing hotel parking structure with a new parking structure to serve the hotel. The new parking structure will replace the existing parking structure in substantially the same location but with a smaller footprint and increased internal circulation. The parking structure will include four levels subterranean and two levels above ground, with a total of 408 parking spaces. A total of 808 parking spaces (408 for hotel -branded residence and 400 for hotel use) are proposed for the Project which will exceed the parking requirements. The Project will not result in any changes in vehicular circulation for the hotel. 9. The Project is subject to the City's Water -Efficient Landscape Ordinance (Chapter 14.17 of NBMC) and compliance will be confirmed at plan check prior to issuing building permits. 10.Addendum No. 6 analyzed whether the Project would conflict with applicable zoning and other regulations governing scenic quality. The Project uses would be consistent with the CV zoning designation. The 2006 EIR emphasizes that the General Plan Update would concentrate infill development and redevelopment in several specific subareas, including Newport Center/Fashion Island (i.e., high -density residential uses are proposed in the Newport Center/Fashion Island area). The Project will redevelop an old building fapade with new hotel branded residences and remove the existing surface parking on -site to develop a parking structure and subterranean parking for the hotel branded residences. The new building will be aesthetically compatible with existing surrounding and will not have a material impact on visual character or public views 17-26 Planning Commission Resolution No. PC2022-011 Paae 22 of 72 Finding: B. Conforms with the public access and public recreation policies of Chapter 3 of the Coastal Act if the project is located between the nearest public road and the sea or shoreline of any body of water located within the coastal zone. Facts in Support of Finding: The Project is not located between the nearest public road and the sea or shoreline of any body of water located within the coastal zone. The Project site is located approximately 3,300 feet from Newport Harbor. As such, it is not necessary to assess the consistency with the public access and public recreation policies of Chapter 3 of the Coastal Act. The Project site does not provide public access or public recreation opportunities and will not impact any public access or public recreational opportunities as detailed in Chapter 3 of the Coastal Act. V. Vesting Tentative Tract Map This Project requires a vesting tentative tract map, consistent with NBMC Section 19.20.040 (Filing and Review). In accordance with Section 19.12.070(A), the Planning Commission may approve a vesting tentative tract map, only after first making the following findings: Finding: A. That the proposed map and the design or improvements of the subdivision are consistent with the General Plan and any applicable specific plan, and with applicable provisions of the Subdivision Map Act and this Subdivision Code; Facts in Support of Finding: Refer to Facts A. 1-2 and B. 1-2 under Site Development Review that discuss the Project's consistency with the Commercial Visitor (CV) General Plan land use designation. 2. The Tentative Tract Map (for condominium purposes) provides a cohesive development with a pattern of dwelling unit orientations and vehicle circulation that provides a pedestrian - friendly environment with strong connectivity to adjacent commercial and office areas. 3. The Public Works Department has reviewed the proposed tentative map and found it consistent with Title 19 (Subdivisions) of the NBMC and applicable requirements of the Subdivision Map Act as set forth in California Government Code Section 66410 et seq. 4. Conditions of approval have been included to ensure compliance with Title 19 (Subdivisions) of the NBMC. Finding: B. That the site is physically suitable for the type and density of development; 17-27 Planning Commission Resolution No. PC2022-011 Paae 23 of 72 Facts in Support of Finding: 1. The site is not located in a flood zone. The geotechnical feasibility study and geotechnical report will provide additional recommendations for construction of the Project to ensure the suitability for the proposed development that will be required for construction prior to the issuance of building permits. 2. The 2.775-acre site is large enough to accommodate the proposed new residential building while providing sufficient landscape setbacks, open space areas, as well as vehicle access and guest parking areas that meet applicable standards. The existing developed site is devoid of natural resources and it is located in an area that provides adequate access to roadways and utilities. 3. Noise levels at the Project site are up to 58.3 dBA CNEL. Per the City's General Plan Noise Element, noise levels of up to 60 dBA CNEL are considered clearly compatible. Additionally, the outdoor activity/amenity area including the proposed pools, lounge, and deck would be set back from the adjacent roadways. With appropriate noise control measures under conventional construction and design of the Project (e.g., closed windows, fresh air supply systems or air conditioning), the interior noise levels will be well below the City and State interior noise standard of 45 dB CNEL for residential units. Finding: C. That the design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage nor substantially and avoidably injure fish or wildlife or their habitat. However, notwithstanding the foregoing, the decision making body may nevertheless approve such a subdivision if an environmental impact report was prepared for the project and a finding was made pursuant to Section 21081 of the California Environmental Quality Act that specific economic, social or other considerations make infeasible the mitigation measures or project alternatives identified in the environmental impact report; Facts in Support of Finding: 1. Under existing conditions, the Property and surrounding land areas are fully developed with urban uses and do not contain sensitive biological resources. The vegetation that occurs on -site is ornamental in nature, including trees and ornamental shrubs, groundcover, and vines growing on the existing building's facades and screen walls. A Mitigation Measure is provided by the 2006 EIR to ensure adequate protection of nesting birds during the construction process. The Project will have no substantial change from the previous EIR analysis, as documented in the EIR Addendum. 2. No drainages traverse the property and no potential jurisdictional waters or wetlands areas are present on or immediately adjacent to the Property. 17-28 Planning Commission Resolution No. PC2022-011 Paae 24 of 72 3. Addendum No. 6 to the City of Newport Beach General Plan Update Environmental Impact Report (SCH No. 2006011119) was prepared for the Project. On the basis of the entire environmental review record, Addendum No. 6 concludes that the Project will have no substantial change to biological resources, cultural resources, geology and soils, and tribal cultural resources from the previous EIR analysis, as documented in the EIR Addendum. Finding: D. That the design of the subdivision or the type of improvements is not likely to cause serious public health problems; Facts in Support of Finding: 1. At full build -out, air quality and Green House Gas ("GHG") emissions associated with construction of the Project will have no substantial change from the previous EIR analysis, as documented in the EIR Addendum. 2. Potential impacts associated with biological resources, cultural resources, geology and soils, and tribal cultural resources will have no substantial change from the previous EIR analysis, as documented in the EIR Addendum. 3. No evidence is known to exist that would indicate that the planned subdivision pattern will generate any serious public health problems. 4. All construction for the Project complies with Building, Public Works, and Fire Codes. Public improvements will be required of the developer per NBMC Section 19.28.010 and Sections 66410 et seq. of the Subdivision Map Act. All ordinances of the City and all conditions of approval will be complied with. The anticipated trip generation for the combined existing hotel and the proposed hotel branded residences would result in a trip reduction of 549 ADTs relative to the existing uses on site. Finding: E. That the design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of property within the proposed subdivision. In this connection, the decision -making body may approve a map if it finds that alternate easements, for access or for use, will be provided and that these easements will be substantially equivalent to ones previously acquired by the public. This finding shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to the City Council to determine that the public at large has acquired easements for access through or use of property within a subdivision; 17-29 Planning Commission Resolution No. PC2022-011 Paae 25 of 72 Facts in Support of Finding: Public improvements, consisting of the reconstruction of the curb, gutter, and sidewalks, one (1) new driveway along the Newport Center Drive frontage, and street trees along Newport Center Drive will be required of the applicant per Title 19 (Subdivisions) and the Subdivision Map Act. A common sewer and water connection will be provided for the Project as approved by the Public Works Department that will connect to an existing main that serves the existing hotel. 2. There are no easements that will be impacted by this Project. Finding: That, subject to the detailed provisions of Section 66474.4 of the Subdivision Map Act, if the land is subject to a contract entered into pursuant to the California Land Conservation Act of 1965 (Williamson Act), the resulting parcels following a subdivision of the land would not be too small to sustain their agricultural use or the subdivision will result in residential development incidental to the commercial agricultural use of the land, - Fact in Support of Finding: The Property does not contain prime farmland, unique farmland, or farmland of statewide importance and no portion of the Property is covered by a Williamson Act contract. Finding: F. That, in the case of a "land project" as defined in Section 11000.5 of the California Business and Professions Code: (1) There is an adopted specific plan for the area to be included within the land project; and (2) the decision -making body finds that the proposed land project is consistent with the specific plan for the area; Facts in Support of Finding: California Business and Professions Code Section 11000.5 has been repealed by the Legislature. However, this Property is not considered a "land project" as previously defined in Section 11000.5 of the California Business and Professions Code because the Property does not contain 50 or more parcels of land nor is it located within the boundaries of a specific plan. Finding: G. That solar access and passive heating and cooling design requirements have been satisfied in accordance with Sections 66473.1 and 66475.3 of the Subdivision Map Act, 17-30 Planning Commission Resolution No. PC2022-011 Paae 26 of 72 Fact in Support of Finding: Tentative Tract Map No. 19222 and improvements are subject to Title 24 of the California Code of Regulations, referred to as the California Building Code or CBC, which requires new construction to meet minimum heating and cooling efficiency standards depending on location and climate. The Newport Beach Community Development Department ensures compliance with the CBC through the plan check and inspection process. Finding: H. That the subdivision is consistent with Section 66412.3 of the Subdivision Map Act and Section 65584 of the California Government Code regarding the City's share of the regional housing need and that it balances the housing needs of the region against the public service needs of the City's residents and available fiscal and environmental resources; Facts in Support of Finding: 1. The Property is improved with hotel uses, and there are no residential units on the Property. The Project includes the construction of up to 159 hotel -branded residence units to contribute to the City's population needs consistent with City Council Policy K-4, Reducing the Barriers to the Creation of Housing and Director's Determination No. DD2021-001 which allows for accessory residential uses within resort hotels subject to seven separate requirements including the following: a. Accessory residential is only allowed within resort hotels, a self-contained destination that provides for all needs in one location. The Project is part of the VEA Newport Beach, A Marriott Resort and Spa, which is a self-contained destination providing restaurant, bar, recreational facilities including a pool, spa, and a variety of other guest -serving uses. b. Must be located outside the appeal area identified in California Public Resource Code Section 30603(a) as depicted on the Post-LCP Certification Permit and Appeal Areas Map. The Project is located outside the appeal jurisdiction, at the northeastern most boundary of the coastal zone. c. Approved hotel rooms may be converted to residential units on a one -for -one basis. The existing resort hotel is allowed a maximum of 532 rooms in the Coastal Implementation Plan. The proposed hotel branded residences would include up to 159 hotel branded residences with a corresponding reduction in the number of hotel rooms. No new intensity would be created, rather the units would be converted on a one-to-one basis via the reduction in the existing number of approved hotel rooms. The total units at the VEA Newport Beach, A Marriott Resort and Spa would remain at 532. Of the 532 units, 373 would be traditional hotel rooms and up to 159 would be hotel branded residences. d. The residential use shall at all times be accessory to the hotel use, and the residential units shall comprise no more than 30% of the approved hotel rooms. The hotel branded residences will be part of the resort hotel campus and are accessory to the hotel use. 17-31 Planning Commission Resolution No. PC2022-011 Paae 27 of 72 The Project will result in up to 159 hotel branded residences which represents the conversion of 30% of the existing 532 hotel rooms. e. The residential units may be located within a repurposed hotel or in a new residential structure. The proposed hotel branded residences will be located within the existing resort hotel property, within a new residential structure. f. A conditional use permit and coastal development permit is required to ensure adequate parking through surplus parking, shard parking, or the adoption of a parking management plan. The proposed Project exceeds the parking requirements for both the hotel branded residences and the hotel. The parking will be managed via valet operations as detailed in the Parking Management Plan, and the Parking Management Plan for the VEA Newport Beach, A Marriott Resort and Spa, dated April 13, 2022. g. Potential impacts to public access, affordable housing, and the loss of transient occupancy tax must be mitigated by entering into a Development Agreement with the City of by some other means deemed appropriate. (1) Any reduction in public access is limited to the reduction of hotel rooms available to the general public to paying guests. The property does not provide public access to the coast or public access to other recreational opportunities in the area. The existing resort hotel does not provide low-cost accommodations, and the Project will not result in an impact to existing low-cost accommodations as analyzed in NBMC Section 21.48.025 Feasibility and Impact Analyses for The Ritz -Carlton Residences dated March 18, 2022, and attached as Exhibit I. The general decrease of access associated with the reduction of up to 159 high -cost hotel rooms is mitigated through the payment of $10,700 per unit fee to the City that will be used a condition of approval of the Vesting Tentative Tract Map. (2) The Project will result in the creation of new housing consistent with the purpose and intent of City Council Policy K-1 and Director's Determination No. DD2021-001. The City Council is considering adoption of an inclusionary housing ordinance in light of the City's RHNA allocation and State mandated housing requirements. As a result, the Project will provide an in -lieu fee related to affordable housing as a condition of approval to the Vesting Tentative Tract Map as detailed in those findings. (3) The Transient Occupancy Taxes (TOT) Analysis Consistent with Newport Beach City Council Policy K-4 for Conversion of Hotel Rooms to Residential dated March 18, 2022, and attached as Exhibit J analyzed the potential loss of TOT associated with the reduction of up to 159 hotel rooms. The analysis concludes that although the reduction in hotel rooms associated with Project implementation would affect TOT receipts to the City, this reduction in TOT would be fully mitigated because the 373 remaining hotel rooms would be significantly upgraded compared to the existing 532 hotel rooms, and each upgraded room is expected to rent for a higher room rate — and thus, generate higher TOT- than would the existing unrenovated rooms. The analysis concludes that the projected 20-Year combined TOT and property taxes to be generated by the Project would result in total tax receipts to the City of 17-32 Planning Commission Resolution No. PC2022-011 Paae 28 of 72 approximately $136,413,736. This represents a net increase in revenue for the City compared to the hotel alone. As such, no mitigation is necessary because the overall assessment of TOT and property taxes will result in a net financial benefit to the City. Finding: That the discharge of waste from the proposed subdivision into the existing sewer system will not result in a violation of existing requirements prescribed by the Regional Water Quality Control Board, and Facts in Support of Finding: A National Pollutant Discharge Elimination System ("NPDES") permit is required from the Regional Water Quality Control Board ("RWQCB") for the proposed construction activities. A permit is required for all construction activities that include clearing, grading, and/or excavation that disturb at least 1 acre of total land area. Additionally, a Preliminary Water Quality Management Plan ("WQMP") has been prepared, pursuant to the requirements of the NPDES permit. 2. Compliance with the NPDES permit and the Santa Ana River Basin Water Quality Control Program involves the preparation and implementation of a stormwater pollution prevention plan ("SWPPP") for construction -related activities, which would specify the Best Management Practices ("BMP") that the Project would be required to implement during construction activities to ensure that all potential pollutants of concern (including sediment) are prevented, minimized, and/or otherwise appropriately treated prior to being discharged from the Property. 3. Sewer connections will be installed per City Standards, the applicable provisions of NBMC Chapter 14.24 (Sewer Connection, Permits), and the latest revision of the Uniform Plumbing Code. 4. There is adequate sewer system capacity to serve the requirements of the Project. The Project is served by existing sewer service. The Project will not adversely affect the system, or cause any water quality affects, or violate existing requirements prescribed by the Regional Water Quality Control Board. 5. NBMC Section 14.24.020 (Dwelling Unit and Business Structure Sewer Connection Required) requires each dwelling unit to maintain individual water meter and sewer connections. The Project has received a waiver of this requirement from the Utilities Director since the units are located in one building and will together connect to the existing water and sewer systems. Finding: J. For subdivisions lying partly or wholly within the Coastal Zone, that the subdivision conforms with the certified Local Coastal Program and, where applicable, with public access and recreation policies of Chapter Three of the Coastal Act. 17-33 Planning Commission Resolution No. PC2022-011 Paae 29 of 72 Facts in Support of Finding: The Property is located in the Coastal Zone but outside of the California Coastal Commission appeal jurisdiction. The subdivision conforms with the certified Local Coastal Program as detailed in the Findings for the Coastal Development Permit. Public access and recreation policies of Chapter Three of the Coastal Act are not applicable to the Project. Additionally, pursuant to Section 19.16.010(A) of the NBMC, an approved tentative tract map expires 24 months after the date of its approval or conditional approval. Under Section 19.16.020(A), the subdivider shall have the right to request an extension of the map for up to 5 years. The subdivider has submitted an application for an extension of Vesting Tentative Tract Map No. NT2021-003 and has requested that the extension be granted after the Planning Commission adopts Resolution No. PC2022-011; thus, providing for an initial term of the vesting tentative tract map of 24 months, followed by extension of 5 years, for a total term of 7 years from the date of approval of Resolution No. PC2022-011. VI. Consistency with Council Policy K-4 and Director's Determination No. DD2021-001 The Project is consistent with City Council Policy K-4 (Reducing the Barriers to the Creation of Housing) and Director's Determination No. DD2021-001, which allows for accessory residential uses within resort hotels subject to seven separate requirements including the following: 1. Accessory residential is only allowed within resort hotels, a self-contained destination that provides for all needs in one location. The Project is part of the VEA Newport Beach, A Marriott Resort and Spa, which is a self-contained destination providing restaurant, bar, recreational facilities including a pool, spa, and a variety of other guest -serving uses. 2. Must be located outside the appeal area identified in California Public Resource Code Section 30603(a). The Project is located outside the appeal area identified in California Public Resources Code Section 30603(a) as depicted on the Post-LCP Certification Permit and Appeal Jurisdiction Map, and is located at the northeastern most boundary of the coastal zone. 3. Approved hotel rooms may be converted to residential units but only on a one -for -one basis. PA2012-020 set the General Plan limit for hotel rooms at 532 in Anomaly 43 where the Project is located, which is consistent with the Coastal Implementation Plan. The Project would include up to 159 hotel branded residences with a corresponding reduction in the number of hotel rooms. No new intensity would be created, rather the units would be converted on a one-to-one basis via the reduction in the existing number of approved hotel rooms. The total units at the VEA Newport Beach, A Marriott Resort and Spa would remain at 532. Of the 532 units, 373 would be traditional hotel rooms and up to 159 would be hotel branded residences. 4. The residential use shall at all times be accessory to the hotel use, and the residential units shall comprise no more than 30% of the approved hotel rooms. The hotel residential units will be part of the resort hotel campus and are accessory to the hotel use. The Project will 17-34 Planning Commission Resolution No. PC2022-011 Paae 30 of 72 result in up to 159 hotel branded residences which represents the conversion of up to 30% of the existing 532 hotel rooms. 5. The residential units may be located within a repurposed hotel or in a new residential structure. The proposed hotel branded residences will be located within a new hotel - branded residential structure. 6. A conditional use permit and coastal development permit is required to ensure adequate parking through surplus parking, shard parking, or the adoption of a parking management plan. The Project exceeds the parking requirements for both the project itself and the hotel. The parking will be managed via valet operations as detailed in the Parking Management Plan, and the Parking Management Plan for the VEA Newport Beach, A Marriott Resort and Spa, dated April 13, 2022. 7. Potential impacts to public access, affordable housing, and the loss of transient occupancy tax must be mitigated by entering into a Development Agreement with the City of by some other means deemed appropriate. (1) Any reduction in public access is limited to the reduction of hotel rooms available to the general public to paying guests. The property does not provide public access to the coast or public access to other recreational opportunities in the area. The existing resort hotel does not provide low-cost accommodations, and the Project will not result in an impact to existing low-cost accommodations as analyzed in NBMC Section 21.48.025 Feasibility and Impact Analyses for The Ritz -Carlton Residences dated March 18, 2022, and attached as Exhibit I. The general decrease of access associated with the reduction of up to 159 high -cost hotel rooms is mitigated through the payment of $10,700 per unit fee to the City that will be used a condition of approval of the Vesting Tentative Tract Map. (2) The Project will result in the creation of new housing consistent with the purpose and intent of City Council Policy K-4 and Director's Determination No. DD2021-001. The City is consideration adoption of an Inclusionary Housing Ordinance or an Affordable Housing Implementation Plan. Council Policy K-4 recognized that affordable housing is an important component of any new residential housing project, and the Project will provide an in -lieu fee related to affordable housing as a condition of approval to the Vesting Tentative Tract Map as detailed in those findings. (3) The Transient Occupancy Taxes (TOT) Analysis Consistent with Newport Beach City Council Policy K-4 for Conversion of Hotel Rooms to Project dated March 18, 2022, and attached as Exhibit J analyzed the potential loss of TOT associated with the reduction of up to 159 hotel rooms. The analysis concludes that although the reduction in hotel rooms associated with Project implementation would affect TOT receipts to the City, this reduction in TOT would be fully mitigated because the 373 remaining hotel rooms would be significantly upgraded compared to the existing 532 hotel rooms, and each upgraded room is expected to rent for a higher room rate — and thus, generate higher TOT- than would the existing unrenovated rooms. The analysis concludes that the projected 20- Year combined TOT and property taxes to be generated by the Project would result in 17-35 Planning Commission Resolution No. PC2022-011 Paae 31 of 72 total tax receipts to the City of approximately $136,413,736, which is $7,694,975 more than the City would otherwise receive if the Project was not built. This represents a net increase in revenue for the City compared to the hotel alone. As such, no mitigation is necessary because the overall assessment of TOT and property taxes will result in a net financial benefit to the City. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: The Planning Commission finds that potential environmental impacts for this Project have been previously mitigated through the implementation of the policies of the General Plan as evaluated in Program Environmental Impact Report for the 2006 General Plan Update (SCH No. 2006011119) ("PEIR"); therefore, in accordance with Section 15164 of the California Environmental Quality Act ("CEQA") Guidelines, an addendum to the previously adopted PEIR is the appropriate environmental documentation for the Project. 2. The Planning Commission of the City of Newport Beach hereby approves Project (PA2021-296), which includes a finding that the Project is eligible for accessory residential uses under Director's Determination No. DD2021-001 and City Council Policy K-4, and approval of Environmental Impact Report Addendum No. 6, Major Site Development Review No. SD2021-005, Modification Permit No. 2022-0001, Conditional Use Permit No. UP2021-053, Coastal Development Permit No. CD2021-077, and Vesting Tentative Tract Map No. NT2021-003, subject to the conditions set forth in Exhibit "A," which is attached hereto and incorporated by reference. 3. This action shall become final and effective 14 days following the date this Resolution was adopted unless within such time an appeal is filed with the City Clerk in accordance with the provisions of Title 20 (Planning and Zoning) of the Newport Beach Municipal Code. PASSED, APPROVED, AND ADOPTED THIS 12th DAY OF MAY, 2022. AYES: Ellmore, Klaustermeier, Kleiman, Koetting, Lowrey, Rosene and Weigand NOES: None ABSTAIN: ors ABSE None Lee Lowrey, Chairman --------------- BY: C Curtis Ellmore, Secretary 17-36 Planning Commission Resolution No. PC2022-011 Paae 32 of 72 Attachments: Exhibit A — Conditions of Approval Exhibit B — 2006 General Plan Update EIR Exhibit C — Addendum No. 1 (North Newport Center) Exhibit D — Addendum No. 2 (North Newport Center Planned Community Amendment — ER2020-002) Exhibit E — Addendum No. 3 (Newport Airport Village) Exhibit F — Addendum No. 4 (Residences at Von Karman — ER2020-003) Exhibit G — Addendum No. 5 (Residences at 1300 Bristol — ER2022-001) Exhibit H — Addendum No. 6 (Ritz -Carlton Residences — ER2022-002) Exhibit I - Newport Beach Municipal Code Section 21.48.025 Feasibility and Impact Analyses for The Ritz -Carlton Residences dated March 18, 2022 Exhibit J - Transient Occupancy Taxes (TOT) Analysis Consistent with Newport Beach City Council Policy K-4 for Conversion of Hotel Rooms to Hotel -Branded Residences dated March 18, 2022 17-37 Planning Commission Resolution No. PC2022-011 Paae 33 of 72 1 *:/:111I ifi_A CONDITIONS OF APPROVAL (Project -specific conditions are in italics) Planning Division The development shall be in substantial conformance with the approved site plan, floor plans and building elevations stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2. The project is subject to all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 3. The applicant shall comply with all federal, state, and local laws. Material violation of any of those laws in connection with the use may be cause for revocation of this Use Permit. 4. All proposed signs shall be in conformance with an approved Comprehensive Sign Program for the project site and provisions of Chapter 20.42 (Signs) of the Newport Beach Municipal Code. 5. Major Site Development Review No. SD2021-005, Conditional Use Permit No. UP2021- 053, Modification Permit No. 2022-001, Coastal Development Permit No. CD2021-077, and Vesting Tentative Tract Map No. NT2021-003 shall expire unless exercised within 24 months from the date of approval as specified in Section 20.91.050 of the Newport Beach Municipal Code, unless an extension is otherwise granted. Demolition of the existing Harbor Landing building shall deem the approvals in this resolution exercised. 6. Vesting Tentative Tract Map No. NT2021-003 shall expire 7 years from the date of approval of Resolution No. PC2022-011. Pursuant to NBMC Section 19.16.010(A) an approved tentative tract map expires 24 months after the date of its approval or conditional approval. Under NBMC Section 19.16.020(A), the subdivider shall have the right to request an extension of the map for up to 5 years. The subdivider has submitted an application for an extension of Vesting Tentative Tract Map No. NT2021-003 and has requested that the extension be granted after the Planning Commission adopts Resolution No. PC2022-011; thus, providing for an initial term of the vesting tentative tract map of 24 months, followed by extension of 5 years, for a total term of 7 years from the date of approval of Resolution No. PC2022-011. 7. The applicant shall pay a public benefit fee of one hundred thousand dollars $100, 000 per unit to be paid prior to the issuance of a certificate of occupancy for the hotel -branded residences. The $100, 000 per unit fee will be utilized in the following manner: $22, 300 per unit for general public benefit to be used at City Council's discretion; $2, 000 per unit for public safety; $10, 700 per unit for future improvements to public coastal access; and 17-38 Planning Commission Resolution No. PC2022-011 Paae 34 of 72 $65, 000 of this shall be used at the City's discretion for the future acquisition and construction of affordable housing units. 8. Major Site Development Review No. SD2021-005, Conditional Use Permit No. UP2021- 053, Modification Permit No. 2022-001, and Coastal Development Permit No. CD2021- 077 may be modified or revoked by the Planning Commission should they determine that the proposed uses or conditions under which it is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity or if the property is operated or maintained so as to constitute a public nuisance. 9. Any substantial change in operational characteristics, expansion in area, or other modification to the approved plans, shall require an amendment to said plans or processing of new approvals. 10. A copy of the Resolution, including conditions of approval Exhibit "A" shall be incorporated into the Building Division and field sets of plans prior to issuance of the building permits. 11. Prior to the issuance of a building permit, the applicant shall submit to the Planning Division an additional copy of the approved architectural plans for inclusion in the Site Development Review/Modification Permit file. The plans shall be identical to those approved by all City departments for building permit issuance. The approved copy shall include architectural sheets only and shall be reduced in size to 11 inches by 17 inches. The plans shall accurately depict the elements approved by this Site Development Review/Modification Permit file and shall highlight the approved elements such that they are readily discernible from other elements of the plans. 12. Prior to the issuance of a building permit, the applicant shall submit a landscape and irrigation plan prepared by a licensed landscape architect. These plans shall incorporate drought tolerant plantings and water efficient irrigation practices, and the plans shall be approved by the Planning Division. 13. All landscape materials and irrigation systems shall be maintained in accordance with the approved landscape plan. All landscaped areas shall be maintained in a healthy and growing condition and shall receive regular pruning, fertilizing, mowing and trimming. All landscaped areas shall be kept free of weeds and debris. All irrigation systems shall be kept operable, including adjustments, replacements, repairs, and cleaning as part of regular maintenance. 14. Prior to the issuance of a building permit, the applicant shall prepare photometric study based on the final site and architectural lighting plans for approval by the Planning Division. The study shall show that lighting values are " 1 " or less at all property lines and the site and buildings are not excessively lighted. 15. The site shall not be excessively illuminated based on the luminance recommendations of the Illuminating Engineering Society of North America, or, if in the opinion of the 17-39 Planning Commission Resolution No. PC2022-011 Paae 35 of 72 Director of Community Development, the illumination creates an unacceptable negative impact on surrounding land uses or environmental resources. The Director may order the dimming of light sources or other remediation upon finding that the site is excessively illuminated. 16. Prior to the issuance of a building permit, the applicant shall pay any unpaid administrative costs associated with the processing of this application to the Planning Division. 17. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 and other applicable noise control requirements of the Newport Beach Municipal Code. The maximum noise shall be limited to no more than depicted below for the specified time periods unless the ambient noise level is higher: Between the hours of 7:OOAM and 10:OOPM Between the hours of 10:OOPM and 7:OOAM Location Interior Exterior Interior Exterior Residential Property 45dBA 55dBA 40dBA 50dBA Residential Property located within 100 feet of a commercial property 45dBA 60dBA 45dBA 50dBA Mixed Use Property 45dBA 60dBA 45dBA 50dBA Commercial Property N/A 65dBA N/A 60dBA 18. Should the property be sold or otherwise come under different ownership, any future owners or assignees shall be notified of the conditions of this approval by either the current business owner, property owner or the leasing agent. 19. Construction activities shall comply with Section 10.28.040 of the Newport Beach Municipal Code, which restricts hours of noise -generating construction activities that produce noise to between the hours of 7:00 a.m. and 6:30 p.m., Monday through Friday, and 8:00 a.m. and 6:00 p.m. on Saturday. Noise -generating construction activities are not allowed on Sundays or Holidays. 20. No outside paging system shall be utilized in conjunction with this establishment. 21. All trash shall be stored within the building or within dumpsters stored in the trash enclosure (three walls and a self -latching gate) or otherwise screened from view of neighboring properties, except when placed for pick-up by refuse collection agencies. The trash enclosure shall have a decorative solid roof for aesthetic and screening purposes. 22. Trash receptacles for patrons shall be conveniently located both inside and outside of the establishment, however, not located on or within any public property or right-of-way. 23. The exterior of the business shall be maintained free of litter and graffiti at all times. The owner or operator shall provide for daily removal of trash, litter debris and graffiti from the premises and on all abutting sidewalks within 20 feet of the premises. 17-40 Planning Commission Resolution No. PC2022-011 Paae 36 of 72 24. The applicant shall ensure that the trash dumpsters and/or receptacles are maintained to control odors. This may include the provision of either fully self-contained dumpsters or periodic steam cleaning of the dumpsters, if deemed necessary by the Planning Division. Cleaning and maintenance of trash dumpsters shall be done in compliance with the provisions of Title 14, including all future amendments (including Water Quality related requirements). 25. Deliveries and refuse collection for the facility shall be prohibited between the hours of 10:00 p.m. and 7:00 a.m. on weekdays and Saturdays and between the hours of 10:00 p.m. and 9:00 a.m. on Sundays and Federal holidays, unless otherwise approved by the Director of Community Development, and may require an amendment to this Use Permit. 26. Storage outside of the building in the front or at the rear of the property shall be prohibited, with the exception of the required trash container enclosure. 27. A Special Events Permit is required for any event or promotional activity outside the normal operational characteristics of the approved use, as conditioned, or that would attract large crowds, involve the sale of alcoholic beverages, include any form of on -site media broadcast, or any other activities as specified in the Newport Beach Municipal Code to require such permits. 28. To the fullest extent permitted by law, applicant shall indemnify, defend and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to City's approval of The Ritz -Carlton Residences including, but not limited to, Environmental Impact Report Addendum No. 6 (ER2022-002), Major Site Development Review No. SD2021-005, Modification Permit No. 2022-001, Conditional Use Permit No. UP2021-053, Coastal Development Permit No. CD2021-077, and Vesting Tentative Tract Map No. NT2021-003 (PA2021-296). This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by applicant, City, and/orthe parties initiating or bringing such proceeding. The applicant shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. The applicant shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this condition. Fire Department 29. The high-rise building shall be constructed with fire and life safety systems and construction features as required for high-rise buildings per applicable California fire and building codes as adopted by the City of Newport Beach. This includes but is not limited to the following systems: an automatic fire sprinkler system, a stand pipe system, fire 17-41 Planning Commission Resolution No. PC2022-011 Paae 37 of 72 pump system, a fire alarm system, an emergency responder radio system, a 2-way communication system and a smoke control system. 30. A fire command center (fire control room) shall be constructed as part of the high-rise building. 31. A generator (gas or diesel only) shall be installed to provide emergency power for the high-rise building. 32. A fire master plan shall be submitted and approved prior to issuance of any grading or building permit. The fire master plan shall indicate fire department access for the high- rise building; however, the fire department access shall not include any turf block or other vegetative materials. 33. The developer/property owner shall record a reciprocal fire department access easement for both parcels proposed with the tentative map. The "event lawn" is considered part of the fire department access providing protection to both the existing hotel complex and the proposed high-rise building. Building Division 34. The applicant is required to obtain all applicable permits from the City's Building Division and Fire Department. The construction plans must comply with the most recent, City - adopted version of the California Building Code. The construction plans must meet all applicable State Disabilities Access requirements. Approval from the Orange County Health Department is required prior to the issuance of a building permit. 35. The applicant shall employ the following best available control measures ("BACMs") to reduce construction -related air quality impacts: Dust Control • Water all active construction areas at least twice daily. • Cover all haul trucks or maintain at least two feet of freeboard. • Pave or apply water four times daily to all unpaved parking or staging areas. • Sweep or wash any site access points within two hours of any visible dirt deposits on any public roadway. • Cover or water twice daily any on -site stockpiles of debris, dirt or other dusty material. • Suspend all operations on any unpaved surface if winds exceed 25 mph. Emissions • Require 90-day low-NOx tune-ups for off road equipment. • Limit allowable idling to 30 minutes for trucks and heavy equipment Off -Site Impacts • Encourage carpooling for construction workers. • Limit lane closures to off-peak travel periods. • Park construction vehicles off traveled roadways. • Wet down or cover dirt hauled off -site. 17-42 Planning Commission Resolution No. PC2022-011 Paae 38 of 72 • Sweep access points daily. • Encourage receipt of materials during non -peak traffic hours. �Iacement Sandbag construction sites for erosion control. Fill • The number and type of equipment for dirt pushing will be limited on any day to ensure that SCAQMD significance thresholds are not exceeded. • Maintain and utilize a continuous water application system during earth placement and compaction to achieve a 10 percent soil moisture content in the top six-inch surface layer, subject to review/discretion of the geotechnical engineer. 36. Prior to the issuance of a grading permit, a Storm Water Pollution Prevention Plan (SWPPP) and Notice of Intent (NOI) to comply with the General Permit for Construction Activities shall be prepared, submitted to the State Water Quality Control Board for approval and made part of the construction program. The project applicant will provide the City with a copy of the NOI and their application check as proof of filing with the State Water Quality Control Board. This plan will detail measures and practices that will be in effect during construction to minimize the project's impact on water quality. 37. Prior to the issuance of a grading permit, the applicant shall prepare and submit a Water Quality Management Plan (WQMP) for the proposed project, subject to the approval of the Building Division and Code and Water Quality Enforcement Division. The WQMP shall provide appropriate Best Management Practices (BMPs) to ensure that no violations of water quality standards or waste discharge requirements occur. 38. A list of "good housekeeping" practices will be incorporated into the long-term post - construction operation of the site to minimize the likelihood that pollutants will be used, stored or spilled on the site that could impair water quality. These may include frequent parking area vacuum truck sweeping, removal of wastes or spills, limited use of harmful fertilizers or pesticides, and the diversion of storm water away from potential sources of pollution (e.g., trash receptacles and parking structures). The Stage 2 WQMP shall list and describe all structural and non-structural BMPs. In addition, the WQMP must also identify the entity responsible for the long-term inspection, maintenance, and funding for all structural (and if applicable Treatment Control) BMPs. Public Works Department 39. The Ritz -Carlton Residences and the VEA Newport Beach Resort and Spa shall implement City -approved parking management plan(s) that include a valet operations plan(s). The parking management plans, and valet operations plans, shall be reviewed and approved by both the Public Works and Community Development Departments prior to the issuance of certificated of occupancy. The parking management plans shall be in substantial conformance with the Ritz -Carlton Residences and the VEA Newport Beach Resort and Spa parking management plans, dated April 13, 2022. 40. Overhead utilities serving the site shall be undergrounded to the nearest appropriate pole in accordance with Section 19.24.140 of the Municipal Code. 17-43 Planning Commission Resolution No. PC2022-011 Paae 39 of 72 41. County Sanitation District fees shall be paid prior to the issuance of any building permits. 42. Prior to the commencement of demolition and grading of the proiect, the applicant shall submit a construction management and delivery plan for the project to be reviewed and approved by the Public Works Department. The plan shall include a discussion of project phasing; parking arrangements for both the VEA Resort and Ritz -Carlton Residences sites during demolition and construction; anticipated haul routes and construction mitigation to ensure the orderly demolition and construction of the project. Parking arrangements shall address construction worker parking as well as all operations occurring at the VEA Resort during construction. Upon approval of the plan, the applicant and their contractors and employees shall be responsible for implementing and complying with the plan and all conditions set forth in the approved plan. Demolition permits shall be issued once project approvals are final provided said permits are deemed compliant with all applicable construction regulations and applicable conditions of approval. 43. Traffic control and truck route plans shall be reviewed and approved by the Public Works Department before their implementation. Large construction vehicles shall not be permitted to travel narrow streets as determined by the Public Works Department. Disruption caused by construction work along roadways and by movement of construction vehicles shall be minimized by proper use of traffic control equipment and flagman. 44. A Tract Map shall be recorded prior to the sale of any residential units. The Map shall be prepared on the California coordinate system (NAD83). Prior to recordation of the Map, the surveyor/engineer preparing the Map shall submit to the County Surveyor and the City of Newport Beach a digital -graphic file of said map in a manner described in Section 7-9-330 and 7-9-337 of the Orange County Subdivision Code and Orange County Subdivision Manual, Sub article 18. The Map to be submitted to the City of Newport Beach shall comply with the City's CADD Standards. Scanned images will not be accepted. 45. Prior to recordation of the tract map, the surveyor/engineer preparing the map shall tie the boundary of the map into the Horizontal Control System established by the County Surveyor in a manner described in Section s 7-9-330 and 7-9-337 of the Orange County Subdivision Code and Orange County Subdivision Manual, Sub article 18. Monuments (one -inch iron pipe with tag) shall be set On Each Lot Corner unless otherwise approved by the Subdivision Engineer. Monuments shall be protected in place if installed prior to completion of construction project. 46. Prior to the recordation of the Tract Map, a Subdivision Agreement shall be obtained and approved by the City Council consistent with subdivision Code Section 19.36.010. 47. Prior to Final Map approval, the applicant shall provide a Faithful Performance Bond and a Labor and Materials Bond, each for 100 percent of the estimated improvement cost for improvements in the public right of way, as prepared by a Registered Civil Engineer 17-44 Planning Commission Resolution No. PC2022-011 Paae 40 of 72 and approved by the Public Works Director, for each of the following, but not limited to, public and private improvements, street improvements, monumentation, sidewalks, striping, signage, street lights, sewer system, water system, storm drain system, water quality management system, erosion control, landscaping and irrigation within public right of way, common open spaces areas accessible by the public, fire access and off - site improvements required as part of the project. 48. Warranty bond for a minimum of 10 percent of the engineers cost estimate (final percentage to be determined by the Public Works Director) to be released 1-year after improvements have been accepted. 49. All improvements shall be constructed as required by Ordinance and the Public Works Department. 50. An encroachment permit is required for all work activities within the public right-of-way. 51. Reconstruct the existing broken and/or otherwise damaged concrete curb, gutter, sidewalk along the Newport Center Drive frontage per City Standard. 52. All improvements shall comply with the City's sight distance requirement. See City Standard 110. 53. In case of damage done to public improvements surrounding the development site by the private construction, additional reconstruction within the public right-of-way could be required at the discretion of the Public Works Inspector. 54. Install a manhole per City Standard at the proposed sewer lateral within the sidewalk area along the Newport Center Drive frontage. 55. Parking layout and ramp slopes shall comply with City Standard 805. All dead-end drive aisle shall have a dedicated turn around space and 5-foot minimum drive aisle extension to accommodate vehicular maneuvering. 56. A temporary bus stop shall be provided throughout the duration of project construction. The location of the permanent post -construction bus stop shall be evaluated during construction and coordinated and approved by the Public Works Department prior to installation. 57. The ultimate dimensions of the landscape median at the center of the Ritz Carlton Residences project's porte cochere shall be reevaluated prior to issue of building permits to ensure adequate vehicle circulation subject to the approval of the Public Works Department. 17-45 Planning Commission Resolution No. PC2022-011 Paae 41 of 72 Exhibit "B" The 2006 General Update EIR (PEIR) Available separately due to bulk at: https://www.newportbeachca.gov/qovernment/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 17-46 Planning Commission Resolution No. PC2022-011 Paae 42 of 72 Exhibit "C" Addendum No. 1 (North Newport Center) Available separately due to bulk at: https://www.newportbeachca.gov/qovernment/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 17-4 7 Planning Commission Resolution No. PC2022-011 Paae 43 of 72 Exhibit "D" Addendum No. 2 (North Newport Center Planned Community Amendment) Available separately due to bulk at: https://www.newportbeachca.gov/qovernment/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 17-48 Planning Commission Resolution No. PC2022-011 Paae 44 of 72 Exhibit "E" Addendum No. 3 (Newport Airport Village — ER2020-002) Available separately due to bulk at: https://www.newportbeachca.gov/qovernment/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 17-49 Planning Commission Resolution No. PC2022-011 Paae 45 of 72 Exhibit "F" Addendum No. 4 (Residences at 4400 Von Karman — ER2020-003) Available separately due to bulk at: https://www.newportbeachca.gov/qovernment/departments/community- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 17-50 Planning Commission Resolution No. PC2022-011 Paae 46 of 72 Exhibit "G" Addendum No. 5 (Residences at 1300 Bristol — ER2022-001) Available separately due to bulk at: https://www. newportbeachca.gov/qovernment/departments/com munity- development/planning-division/general-plan-codes-and-regulations/general- plan/general-plan-environmental-impact-repor 17-51 Planning Commission Resolution No. PC2022-011 Paae 47 of 72 Exhibit "H" Addendum No. 6 (Ritz -Carlton Residences — ER2022-002) Available separately due to bulk at: https://www. newportbeachca.gov/qovernment/departments/com munity- development/planning-division/general-plan-codes-and-regulations/general-plan/general- plan-environmental-impact-repor 17-52 Planning Commission Resolution No. PC2022-011 Paae 48 of 72 Exhibit "I" Newport Beach Municipal Code Section 21.48.025 Feasibility and Impact Analyses for The Ritz -Carlton Residences dated March 18, 2022 17-53 Planning Commission Resolution No. PC2022-011 Paae 49 of 72 Maurice Robinson & Associates LLC 28 Dover Place Manhattan Beach., CA 90266 March 18, 2022 Mr. Kevin Martin Vice President, Development Newport Center Hotel. LLC 4901 Birch Street Newport Beach, CA 92660 Re: Newport Beach Municipal Code Section 21.48.025 Feasibility and Impact Analyses for The Ritz -Carlton Residences Dear Mr. Martin: Maurice Robinson & Associates LLC ("MR&A") has prepared a Feasibility and Impact Analysis for Newport Center Hotel, LLC ("Client") with respect to its proposed development and sale of up to 159 hotel branded residences at 900 Newport Center Drive ("Project"). In this report, we present our findings of the two requested analyses, as follows: 1) The feasibility of the Project to include lower -cost visitor accommodations; and 2) The impact of the Project on the existing lower -cost visitor accommodations in the City of Newport Beach ("City"). The following analyses conclude that it is not feasible to provide lower -cost visitor accommodations as part of the Project, and the Project would not impact the availability of lower - cost visitor accommodations in the City, If you have any questions, please do not hesitate to call us at 310-640-9656 or email us at Maurice(ii,,,MauriecRobinsotl.coin. My CV is attached at the end of this report. Sincerely, R. Maurice Robinson. ISHC President 1 17-54 Planning Commission Resolution No. PC2022-011 Paae 50 of 72 1. Feasibility Analysis Newport Beach Municipal Code (" NBMC") Section 21.48.025(C)(2) requires "an analysis of the feasibility of providing lower -cost visitor accommodations... for any application involving the. ..conversion ... of...visitor accommodations." This analysis is required regardless of whether the accommodations to be converted are "lower -cost." The Project proposes to convert up to 159 high -cost visitor accommodations into hotel -branded residences. Thus, the NBMC requires the preparation of this feasibility analysis, at the Client's expense, to determine if the Project could provide lower -cost visitor accommodations on the Project site. As explained below, it is not feasible to include lower -cost visitor accommodations on the Project site. This infeasibility is due to the site's high land value, the Project's high development costs, the lack of annual operating revenue given the type of for -sale product created by the Project, and other constraints related to the Ritz -Carlton brand. Summary of Findings Location The Project is located on a 2.775-acre development footprint at 900 Newport Center Drive within Newport Center (see map below). Newport Center is a mixed -use area of the City that is home to Fashion Island, commercial office developments, residential developments, and the Newport Beach Country Club. The location of the property makes it an inappropriate designation for lower - cost accommodations. The property is within the urban nucleus of Newport Center, which is on the inland side of Pacific Coast Highway, and does not allow for suitable access to public coastal recreational resources or amenities. The property's location is not suitable for lower -cost accommodations to encourage coastal access. Hyatt The Newport Newport Back Beach Bayy Country Golf Club Fa,1 Course Rolect s tocatian Newport Beach Land Value Land in Newport Beach is extremely valuable, and Newport Center is known to have some or the most expensive real estate in the entire City. Land in Newport Center can typically trade for S20,000,000 per acre, as supported by the purchase of the Newport Beach Marriott in 2020. This high land value acquisition cost renders the property financially impractical and unsuitable for 17-55 Planning Commission Resolution No. PC2022-011 Paae 51 of 72 lower -cost visitor accommodations. Additionally, given the relatively small size of the project, there is no physical area to construct lower -cast visitor accommodations at the Project site. High Development Costs The estimated construction costs for the Project are nearly $1,200 per square foot. Additionally, the project is burdened by nearly S400,000 per branded residence in design, financing and pennitting costs. Assuming 65% debt financing; 4 more years of design and construction costs; and nearly 3 year,, of sales; the overall leveraged internal rate of return ("IRR") of the Project is projected at 20.0%. Inclusion of lowercost visitor accommodations would reduce the IRR to a level that would dissuade investors from investing in the Project, and would ultimately have the effect of preventing the Project from being developed. Lack ofAnnual Operating Income The Project is developing up to 159 hotel -branded residences. The Project does not include the development of visitor accommodations. As a consequence, the Project will not generate any annual operating income that could be used to develop, operate, or service lower -cost visitor accommodations. Therefore, the lack of annual operating income further renders the Project infeasible for lower -cost visitor accommodations. Ritz -Carlton Brand The contract with Ritz -Carlton to brand and service the Project does not allow for the on -site operation of lower -cost visitor accommodations. The Ritz -Carlton brand is dependent on our Client's ability to provide operational exclusivity on the proposed 2.775-acre property. Ritz - Carlton does not operate any lower -cost accommodations, and by including them on -site, the Client will be unable to adhere to the terms of their agreement with Ritz -Carlton. Without the Ritz -Carlton brand, the sales prices of the hotel -branded residential units would be severely reduced. The pricing premium generated by a luxury hotel brand is typically 25% or more, compared to comparably located and finished non -banded residential product_ Tile RCLCO market analysis dated 12/14/2020 concluded the premium was 35% for the Ritz -Carlton residences studied. i Without Ritz -Carlton and its associated premium pricing, the Project's ability to be financed would suffer, resulting in a reduction of the amount of debt that could be sourced, and an offsetting requirement for additional, higher -cost equity. It would also be much more difficult to attract a lender for the Pn>ject if there were lower -cost visitor accommodations at the property. Thus, it is infeasible to include lower -cost visitor accommodations, because their inclusion would effectively terminate the Project. ' See "Market Analysis and Strategic Development Recommendations, Proposed Hotel -Branded Condominiums, Newport Beach, California", dated 12/12/2020, by RCLCO, pages 21 and 64, 17-56 Planning Commission Resolution No. PC2022-011 Paae 52 of 72 Methodolotrr• and Assumutions This section, along with the tables in our model`, discusses the key assumptions used in our analysis of both scenarios, and the results of the analyses. The Project as proposed is depicted in the architectural renderings document prepared by MVE + Partners, dated 1I21/2022', The proposed 22-story tower would contain 421,973 gross square feet of space, excluding 5 levels of -underground parking. The up to 159 residences would be located on floors 2 through 22, and contain a total of341,766 square feet of saleable residential space. The hotel r(x)ms would be considered "lower -cost" rooms, per the definition of the California Coastal Commission and the definition provided in NBMC Section 21.48.025(C)(1)(a), and their average daily rental rate ("ADR") would be limited to $135 (stated in 2021 dollars), plus inflation. For the duration of the projections, inflation has been assumed to average 3% per year for development and operating costs, as well as for the pricing of the residences. The price per square foot for the sale of the residential units with the Ritz -Carlton branding has been estimated to be $2,500 per square foot, stated in 2021 dollars. This was derived from both actual sales and current listings of several hotel -branded residential projects in Southern California, and supported by an RCLCO market analysis dated 12/14/202W. The Project development budget and timetable were prepared by the Client and seem reasonable. The absorption period for the sale of the residential units is projected to be 20 units pre -sold, then 4 units per month until sold. The proposed capital stack, interest rates, cap rates, and the various costs and fees are our estimates, and are based on our observations of the current real estate development and investment environment. The hotel occupancy levels and operating ratios are our estimates, based upon our understanding of lower -cost visitor accommodation operating metrics and our professional judgment as to how such an operation would fit into the proposed Project, within the context of the Orange County hotel market. Z See Excel Workbook entitled "MRA model Newport Beach Ritz". See "The Ritz -Carlton Residences, Newport Beach, Site Development Review", dated U2U2022. ° See "Market Analysis and Strategic Development Recommendations, Proposed Hotel -Branded Condominiums, Newport Beach, California", dated 12/12/2020, by RiCLCO, pages 9 and 32. 4 17-57 Planning Commission Resolution No. PC2022-011 Paae 53 of 72 11. Impact Analysis NBMC Section 21.48.025(C)(3)(a) provides that "an analysis of a development's impact on the availability of lower -cost visitor accommodations in the City shall be required for any application involving ... the ... conversion ... ol'...visitor accommodations...." The Project proposes to convert up to 159 high -cost visitor accommodations into hotel -branded residences. There have never been lower -cost visitor accommodations at the Project site. Thus, the NBMC requires the preparation of this impact analysis, at the Client's expense, to determine if the Project impacts the availability of lower -cost visitor accommodations in the City. As explained below, this Project does not impact the City's existing lower -cost visitor accommodations. The number of lower -cost visitor accommodations in the City will remain the same, and both the supply and demand for them will be unchanged by this Project. Summary of Findines F-risting Supply of Visitor Accommodations There are a variety of visitor accommodations within the City, as depicted on the table below. The majority of hotels within the City are located in the Coastal Zone. These hotels offer a range of costs from economy class to luxury class, as further detailed below. Address Coastal 1 Balboa Bay Resort 1221 W Coast H $579 X 2 Balboa Inn 105 Main St $299 X 3 Bay Shores Peninsula I800 W Newport Blvd $399 X 4 Bayview Marriott 500 Rayview Circle $389 X 5 Dorymans 2102 West Oceanfront $499 X 6 Extended Stay America Suites 4881 Birch St $128 7 Holiday Inn Express 2300 W Coast Hwy $256 X 8 Hatt JWA 4545 MacArthur Blvd $167 9 H tt Newport Beach 1107 Jamboree Rd $332 X 10 Lido House 1100 Nei+port Bled $769 X I 1 Little Inn by (lie Bay _2627 Newport Blvd $250 X 12 Marriott Newport Coast Villas 23000 Newport Coast Dr. $549 X 13 Newport Beach Hotel 2306 W Oceanfront $313 X 14 VEA Newport Beach Marriott 900 Newport Center Dr $319 X 15 Newport Channel Inn 6030 W Coast H $259 X 16 Pelican Hill 22701 Pelican Hill Rd South $1,625 X 17 Renaissance Newport Beach 4500 MacArthur $161 18 Sonder Solarena 6208 W Coast H $201 X Source: Booking,coni, March 17, 2021 17-58 Planning Commission Resolution No. PC2022-011 Paae 54 of 72 8 7083 14,167 Dlsclwnne .. Ewry rcacrr,aple Nbrt Has Haan made 10 aswre Iha ace -r :f Ifr dete pranded. 1»cver Thc City of Newpan Bwch end to empl gees and %Mnle dadam any and all reeponsiml[y from ar relate® 16 any mw"s abtaned in its use 17-59 Planning Commission Resolution No. PC2022-011 Paae 55 of 72 Existing Supply of Lower -Cost Visitor Accommodations NBMC Section 21.48.O25(C)(1)(a) defines lower -cost visitor accommodations as the "average daily room rate for all economy hotels and motels in the City that have room rates that are below the Statewide average daily room rate or lower. Economy hotels and motels are AAA -rated one or two diamond hotels, or equivalent." Based upon our research, the City only has one lower -cost visitor accommodation facility, the 164-room Extended Stay America motel, located at 4881 Birch Street. As depicted below, this motel is located adjacent to John Wayne Airport and is sandwiched between the 405 and 73 freeways. The Project is not located anywhere near this lower -cast visitor accommodation facility, and the Project will have no impact on the lower -cost visitor accommodations provided at this facility. - pp.l�yy IRVINE BUSINESS �yW _ COMPLEX John Wayne AirportD 9useum° Boor r Legacya�Nighhtclubb 4891 Birch St, Newport Staples Print&(f7� I Beach, CA 92bti4 Marketing Services= 0C Wellness ©Michael Grossman, MD Future Supply of Lower -Cost Visitor Accommodations Based upon our research, there are no proposed lower -cost visitor accommodation developments in the City. This is likely due to the high cost of land in the City, which discourages investors from developing any lodging facilities in the lowest -priced segment, as it is financially infeasible. High land costs force investors to develop higher -priced lodging. This Project will not impact the proposed development of lower -cast visitor accommodations, Demand for Lower Cost Visitor Accommodations Since there would be no loss to the supply of existing lower cost visitor accommodations due to the Project, the question is whether the Project would cause an increase in the demand for lower - cost visitor accommodations in the City. We are of the opinion that it would not. There has never been any correlation between the demand for lower -cast visitor accommodation and providing either high -cost visitor accommodations or hotel -branded residences. Similarly, the conversion of the existing high -cost visitor accommodations at the Project's site, which rented for an average of $197 per night in 2021, will not generate demand for additional lower -cost visitor accommodation, which has been defined by the California Coastal Commission 17-60 Planning Commission Resolution No. PC2022-011 Paae 56 of 72 as hotels with pricing under $135 per night. STR categorizes hotels into six different levels by their average daily room rates, as follows: • Luxury Class • Upper -Upscale Class • Upscale Class • Upper-Midscale Class • Midscale Class • Economy Class. The existing high -cost hotel rooms at the Project's site are currently in the Upper -Upscale class, which is four levels above the Economy class of lodging, which covers the lower -cost visitor accommodations segment. Hotel guests who would have stayed at the existing high -cost hotel rooms have plenty of options for alternative lodging choices in the Upper -Upscale, Upscale, Upper-Midscale and Midscale classes, and would not likely end up staying in an Economy hotel. Virtually every other hotel in the City falls into these middle four classes, and the supply of these alternative hotel choices is unchanged by the Project. Thus, the conversion of up to 159 Upper - Upscale hotel rooms into hotel -branded residence would not create any new demand for the Extended Stay America, the single lower -cost visitor accommodation in the City. In summary, since neither the supply of, nor demand for existing lower -cost visitor accommodations is impacted by the Project, we conclude the Project will not have any impact on the City's existing lower -cost visitor accommodations. and no mitigation measures are required. 17-61 Planning Commission Resolution No. PC2022-011 Paae 57 of 72 Statement of Qualifications R. Maurice Robinson, ISHC Mr. Robinson has over 40 years of experience as a consultant in the real estate and hospitality development industry_ He is an expert in the field of facilitating full -service hotel development, ground leases, concession contracts, market and financial feasibility analysis, fiscal and economic benefit studies, structuring public subsidies for new hotel development, and public/private development partnerships. He specializes in public sector counseling, and typically assists California and Federal agencies in: • facilitating hotel, commercial and residential development on public properties • structuring hospitality development deals using public financing vehicles • negotiating ground and building leases for new hospitality developments • identifying and soliciting hospitality brands, operators and developers • Performing economic feasibility and fiscal impact studies for hotel projects • valuing private investment on public lands • providing expert witness testimony in disputes; and • analyzing and structuring development and management agreements. A partial list of his public -sector clients in California follows: • Alameda • California Coastal Commission • Cathedral City • Crescent City • Del Mar • Department of State Parks and Recreation • Escondido • Fresno • Glendale • Gorden Gate Bridge District • llealdsburg • Inglewood • Laguna Beach • Long Beach • Los Angeles, Community Redevelopment Agency • Los Angeles, Department of Airports • Los Angeles, Department of City Planning • Los Angeles, Grand Ave JPA • Manhattan Beach • Metropolitan Water District • Monterey County 9 17-62 Planning Commission Resolution No. PC2022-011 Paae 58 of 72 • Mountain View • Napa • National Park Service • Oceanside • Orange County • Palm Desert • Poway • Richmond • Riverside • Riverside County Transportation Commission • San Diego City • San Diego County • San Diego Metropolitan Transit System • San Diego Unified Port District • San Jose, Redevelopment Agency • San Mateo County • San Mateo County Harbor District • Santa Clara Valley Transportation Authority • Santa Monica • Solano County • South Coast Air Quality Management District • Southern California Association of Governments • U.S. Department of Justice • West Sacramento Public clients and the hotels that have been developed, or are now being developed, • City of San Diego's 170-room 5-diamond Lodge at Torrey Pines • City of Manhattan Beach's 400-room Westdrift Autograph Hotel and Golf Course • City of San Jose's downtown 506-room Marriott Hotel • City of Beverly Hills's 201-room Montage Hotel & 25 Branded Residences • City of Laguna Beach's 258-room Montage Resort and 27 Branded Residences • National Park Service's 252-room Argonaut Hotel in San Francisco (conversion of the historic Ilaslett Warehouse on Fisherman's Wharf) • National Park Service's 142-room Lodge at Cavallo Point in Golden Gate Park (conversion of the historic Fort Baker Army post near Sausalito). • City of San Diego's Liberty Station 200-room Courtyard and 1.50-unit Homewood Suites (conversion of the ex -Naval Training Center adjacent to the airport) • Port of San Diego's 253-room Springhill Suites and 147-unit Residence Inn • Port of San Diego's 400-room Intercontinental Hotel 10 17-63 Planning Commission Resolution No. PC2022-011 Paae 59 of 72 • City of Mountain View's 255-room Ameswell Hotel • City of Oceanside's 161-room Mission Pacific hotel and 226-room Seabird hotel • City of Mountain View's proposed 180-room Joic de Vivre hotel (to be developed) • City of Santa Monica's Fairmont Miramar Hotel and 60 Branded Residences (to be redeveloped) Affiliations: Mr. Robinson is a member of the prestigious international Society of Hospitality Consultants (ISHC), where he served for nine years on the Board of Directors and as Chairman of the Professional Conduct Committee. Other professional memberships include the American Society of Appraisers (ASA), and the Forensic Expert Witness Association (FEWA). He is also a member of the Board of Arbitrators for the Financial Industry National Regulatory Authority (F1NRA). Background: Mr. Robinson is President of Maurice Robinson & Associates LLC, providing advisory services to investors and developers in the Hospitality and Real Estate industries. Prior to founding his current firm in 1999, he was a Principal with KPMG Peat Marwick LLP, leading their western region Hospitality and Real Estate consulting practice for twelve years (1986-1998). Prior to KPMG, Ire was a Senior Consultant and Manager in the real estate and hospitality consulting practice of Pannell Kerr Forster (now PKF Consulting) for five years (1982-1986). 1 [is previous work experience also includes three years as Senior Economist with the real estate consulting firm of Williams-Kuebelbeck and Associates (1979-1982), and a year as an independent consultant (1978). Education: Mr. Robinson holds a General Real Estate Appraisal certificate from the State of California; a Master of Public Administration degree from the University of Southern California; a Bachelor of Arts degree in economics from Macalester College in St_ Paul, Minnesota; a certificate of environmental management with a specialty in public/private partnerships from the Environmental Management Institute in Los Angeles; and a professional designation in financial planning from UCLA. Speeches, Teaching and Writing: Mr. Robinson is a frequent lecturer, having spoken more than two dozen times at various real estate and hospitality industry -related seminars and conferences across the United States, and was an annual guest lecturer at the UC Berkeley MBA program. He is the author of numerous articles, book chapters, and was the editor of KPMG's Hospitality Update newsletter. He has co-authored an article entitled "How to Value Commercial improvements in a National Park" in the Winter 2000lSpring 2001 edition of Real Estate Issues; a chapter entitled "Alternative Dispute Resolution in the Hospitality industry" in the textbook Hotel Investments: Issues and Perspectives. 4"' edition (2006); a chapter entitled "Converting Existing Historic Buildings into Hotels" in the textbook Hotel Sustainable Development: Principals and Best Practices, I' edition (2011); and an article entitled "Issue Review BoardsTM — The Next Wave of Alternative Dispute Resolution for the Hospitality Industry". Awards: Mr. Robinson received the coveted James Felt Creative Counselor Award from his peers in the real estate counseling community for his ground -breaking work appraising the Grand Canyon for the National Park Service. He is also the recipient of the Member of the Year award 11 17-64 Planning Commission Resolution No. PC2022-011 Paae 60 of 72 by his peers in the ISHC for his efforts in establishing an Alternative Dispute Resolution training program. In 2016, he facilitated the acquisition by the NPS of the final parcel of land to complete the 67-mile Backbone Trail in the Santa Monica Mountains. Contact info: 28 Dover Place, Manhattan Beach, CA 90266. Tel: 310-640-9656. Fax: 310-640- 9276. Cell: 310-713-3220. E-mail: Maurice(dMauriceRobinson,coin Web site: www. M auri ceR obin son. com. 12 17-65 Planning Commission Resolution No. PC2022-011 Paae 61 of 72 Exhibit J Transient Occupancy Taxes (TOT) Analysis Consistent with Newport Beach City Council Policy K-4 for Conversion of Hotel Rooms to Hotel -Branded Residences dated March 18, 2022 17-66 Planning Commission Resolution No. PC2022-011 Paae 62 of 72 Maurice Robinson & Associates LLC 28 Dover Place Manhattan Beach., CA 90266 March 19, 2022 Mr. Kevin Martin Vice President, Development Newport Center Hotel, LLC 4901 Birch Street Newport Beach, CA 92660 Subject: Transient Occupancy Taxes (TOT) Analysis Consistent with Newport Beach City Council Policy K-4 for Conversion of Hotel Rooms to Hotel -Branded Residences Dear Mr. Martin: Maurice Robinson & Associates LLC ("MR&A") has prepared this TOT analysis for Newport Center I lotel, LLC ("Client") with respect to your proposed project in Newport Beach, CA (the "Project"). The Project would involve the reduction of 159 existing hotel rooms at the VEA Newport Beach, A Marriott Resort and Spa (the "Hotel"), and the construction of 159 Ritz -Carlton Residences. Client proposes to replace 159 hotel rooms with the same number of hotel -branded residences, which would reduce the number of hotel rooms on the property from 532 to 373. City Council Policy K-4, Reducing the Barriers to the Creation of Housing, requires a fiscal impact analysis to disclose and mitigate any reduction in TOT due to the conversion of hotel rooms to residences. This analysis has been prepared consistent with Policy K-4. The reduction in hotel rooms would affect TOT receipts to the City of Newport Beach. The reduction in TOT due to the replacement of 159 hotel rooms with hotel -branded residences would be fully mitigated, however, because the 373 remaining hotel rooms would be significantly upgraded from their current condition, and each upgraded room is expected to rent for a higher room rate — and thus, coupled with a reduction in hotel supply, would collectively generate higher TOT- than would the existing unrenovated rooms. The following analysis concludes that the projected TOT and property taxes to be generated by the Project would, together, result in a net increase in revenue for the City of Newport Beach. It is important to note that this analysis does not consider the anticipated increase in sales taxes generated by the property's food and beverage operations as a result of the Project. It also does not account for the additional retail food and beverage sales in the area surrounding the property as a result of the project, which would be expected to have a positive economic benefit for the City. If you have any questions, please do not hesitate to call us at 310-640-9656 or email us at Maurice@MauriceRobinson.com. My CV is attached at the end of this report. Sincerely, Gi4441z /'�' R. Maurice Robinson, ISHC President 17-67 Planning Commission Resolution No. PC2022-011 Paae 63 of 72 Transient Occunancv Tax (TOT) Analysis Consistent with City Council Police K4, Reducing the Barriers to the Creation of Housing We have prepared an analysis of the potential future TOT from the Hotel under three scenarios: Scenario 1: The Proposed Project, with 373 upgraded rooms (and 159 hotel -branded residences); Scenario 2: No Project, with 532 unrenovated rooms (and no residential units), and Scenario 3: The Hybrid Hotel Project, with 373 upgraded rooms and 159 unrenovated rooms for a total of 532 rooms (and no hotel -branded residences). Summary of Findings: The table below summarizes the projected TOT only for each Scenario for the next twenty years: Year Twenty -Year TOT projections Scenario 1 Scenario 2 (1) Scenario 3 2022 $ 2,130,503 $ 3,093,560 S 3,055,082 2023 $ 3,328,113 $ 3,333,381 S 4,324,368 2024 $ 3,564,769 $ 3,476,945 S 4,603,931 2025 $ 3,730,373 $ 3,595A76 S 4,804,961 2026 $ 3,842284 $ 3,703,341 S 4,949,1 10 2027 $ 3.957.553 $ 3,814,441 S 5,097,583 2028 $ 4,076279 $ 3,928,874 S 5,250,510 2029 $ 4,198,568 S 4.046,740 S 5,408,026 2030 $ 4,324,525 S 4,168,143 S 5,570,267 2031 $ 4,454,260 S 4,293,187 S 5,737,375 2032 $ 4,587,888 S 4,421,982 S 5,909,496 2033 $ 4,725,525 S 4,554,642 $ 6,086,781 2034 $ 4,867,291 S 4,691,281 S 6,269,394 2035 $ 5,013,309 S 4,832,020 S 6,457,466 2036 $ 5,163,709 S 4,976,980 S 6,651,190 2037 $ 5318,620 S 5,126,290 $ 6,850,725 2038 $ 5,478,179 S 5,280,078 S 7,056247 2039 $ 5,642,524 S 5,438,481 S 7,267,934 2040 $ 5,811,800 S 5,601,635 S 7,485,972 2041 $ 5,986,154 S 5,769,684 S 7,710,55" 20-F7 total $ 90,202.225 S 88,147,162 $116,546,960 1. Applied STR recovery prqicctions for US Hotels for 2022 through 2025, then 3% inflation through 2041. As shown in the following table, combining the projected TOT and property taxes generated for the City of Newport by the Project under each Scenario results in the fallowing estimates of City tax receipts over the next twenty years: 1IPage 17-68 Planning Commission Resolution No. PC2022-011 Paae 64 of 72 20- ear total of TOT + Property Taxes for the City Year Scenario 1 Scenario 2 Scenario 3 202 $ 2,531,847 $ 3,523,529 S 3,556,034 2023 $ 4,051334 $ 3,771949 S 4,835,339 2024 $ 4,610,028 $ 3,924,284 $ 5,125,121 2025 $ 5,097,832 $ 4,051,762 S 5,336,574 2026 $ 5,465,579 $ 4,168,752 $ 5,491,356 2027 $ 5,998,798 $ 4289,161 S 5,650,674 2028 $ 6,422,092 $ 4,413,088 S 5,814,663 2029 $ 6,696,051 $ 4,540,639 S 5,983,461 2030 $ 6,871,957 $ 4,671,919 $ 6,157,211 2031 $ 7,052,642 $ 4.807.039 S 6,336,058 2032 $ 7,238,237 $ 4946,111 S 6,520,153 2033 $ 7,428,881 $ 5,089,254 S 6,709,651 2034 $ 7,624,714 $ 5,236,585 S 6,904,712 2035 $ 7,825,881 S 5,388230 S 7,105,500 2036 $ 8,032,531 S 5344.314 $ 7,312,184 2037 $ 8,244,819 $ 5,704,970 $ 7,524,940 2038 $ 8,462,902 $ 5,870,333 S 7,743,946 2039 $ 8,686.942 $ 6,040,540 S 7,969,387 2040 $ 8,917,106 $ 6,215,736 5 8,201,454 2041 $ 9,153,566 $ 6396,067 S 8,440343 20-yeartotal $ 136,413,736 $ 98,594,261 $ 128,718,761 In summary, the inclusion of property taxes in the analysis would result in Scenario I's projected City tax receipts exceeding those of Scenario 2 (the No Project) by almost S38 million (-38%), and Scenario 3 (the Hybrid Hotel Project) by almost S8 million, or —6%. Methodoloy-Y and Sources of Data We started with the Hotel's most recent four years of historical performance, when it was operated as the Newport Beach Marriott Hotel and Spa. 2019 and 2019 were the peak years in the previous economic cycle, while 2020 and 2021 were negatively impacted by Covid-19. Additionally, the Hotel's 2021 performance was further impacted by an ongoing renovation at the Hotel. The table below summarizes the actual historical annual occupancy levels, ADRs', RcvPars2, total room revenues, and TUT realizedlgenerated by the Hotel from 2018 through 2021: 1 ADR = Average Daily Room rate. z RevPar = Room Revenue Per Available Room; also, daily occupancy rate times ADR. 21Pa«k� 17-69 Planning Commission Resolution No. PC2022-011 Paae 65 of 72 Historical Performance of the Newport Beach larriott Hotel (2019 - 21121) Year 4 ofrooms Oce ADR RevPar' Room Revenues TOT 10% 2018 532 90.7% S 198.70 $ 160.40 $ 31,145,978 $ 3,114,598 2019 532 78.9% S 203.11 $ 1(4.25 $ 31J26,378 $ 3,112,638 2020 532 29.0416 S 186.23 $ 54.01 $ 10,531,213 $ 1,053,121 2021 532 33.00% S 196.95 $ 64.96 S 12,606,113 $ 1,261t,611 Source: Marriott annual P&Ls For the projected TOT for Scenario 1 (the Proposed Project), we reviewed Marriott's proforma for the proposed Project, and accepted their projections, on a per -room basis.' In Scenario 1, the upgraded rooms are forecast to achieve ADRs that are 47O10 more than would the unrenovated rooms, which translates into an increase of approximately $100 per night by 2023, The table below summarizes the proposed Project's forecast occupancy levels, ADRs, RevPars, total room revenues, and TOT by year for 2022 through 2025: Year ## of rooms Scenario 1: 373 uuLraded rooms (The Proieet) Oce ADR RevPar Room Revenues TOT a• 10% 2022 373 55.5% S 281.96 S 156.49 S 21,305,032 $ 2,130,503 2023 373 76.6% $ 319.13 S 244.45 $ 33281,133 $ 3,32 4113 2024 373 79.6% S 328.94 S 261.84 $ 35,647,695 $ 3,564,769 2025 373 80.8% S 339.11 5 274.00 S 37.303 730 $ 3 ?30.373 Source: Marriott budget & profornxis For the forecast TOT for Scenario 2 (the No Project Alternative), we obtained the current forecast by STR for the U.S. hotel market's recovery, using 2019 performance levels as the base Again, 2019 was used as the base year due to the anomalous impacts on the lodging market and the Hotel in the years 2020 and 2021. As an example, room revenues per available hotel room (RevPar) are expected to reach 99% of 2019 levels in 2022; 107% of 2019 levels in 2023; 112% in 2024: and 116% in 2025. The table below summarizes the STR US Hotel Recovery Forecast, as of January, 2022: Summary of STR US Hotel Recovery Forecast 1/2022 as a % of 2019 levels Year occ ADR RevPar occ ADR RevPar 2019 65.9"/, $ 13130 S 86.53 IW% IW/o 10("/) 2020 41.8% $ 130.90 S 54,74 63% 100°/u 63% 2021 57.6% $ 125.00 S 72.00 87% 95% 83% 2022 63.8% $ 134.00 S 86.00 97% 103% W/o 2023 66.1 % $ 140,00 S 92,00 ] W% 107% 107% 2024 66.8% $ 145.00 S 97.00 101% 1100/0 1120/0 2425 6T 1 % $ 149.03 S 99,94 102% 114% 1160/a Source_ STR 1/2022 forecast for US Hotel Market recovery 3 The Marriott proforma assumed a 400-room upgraded hotel at the completion of the renovation, and the current estimate is 373 rooms. Since this analysis is based on 373 rooms, we used a pro-rata share of the Marriott proforma. 31Pa_ 17-70 Planning Commission Resolution No. PC2022-011 Paae 66 of 72 We applied these forecasted recovery factors to the actual 2019 performance levels achieved by the existing Hotel to generate estimates of how the unrenovated hotel would perform in 2022 through 2025, if no renovations were undertaken. The table below summarizes the unrenovated hotel's forecasted performance, and its resulting TOT receipts, for these years: Year # ofrooms Scenario 2: 532 unrenovated rooms (No froiectl Oce ADR RevPar RoomRevenues T07 ia: 10% 2022 532 76.41t,o S 208.59 S 159.31 S 30,935,605 $ 3,r193 tG0 2023 532 79A% $ 216.92 S 171.66 $ 33,333,813 $ 3,333,3 41 2024 532 79.90/0 $ 224.03 S 179.06 $ 34,769,445 $ 3,476,945 2025 532 80.3°! $ 230.53 $ 1.85.1E $ 35,954,764 $ 3,595,47E Source: Gnnvth rates from STR forecast applied to 2019 actuals For the forecasted TOT under Scenario 3 (the Hybrid Hotel Project), we used the forecasted performance levels under Scenario I above, which reflects 373 upgraded rooms added to Scenario 2's forecasted perfonmance for the remaining 159 unrenovated rooms, to forecast room revenues under the hypothetical 532-room Scenario 3, as shown in the table below: Scenario 3: 373 ungraded rooms & 159 unrenovated rooms (Hybrid Hotel Proiectl Year # of rooms Occ ADR RevPar Room Revenues TOT @ 10% 2022 532 61.7% $ 254.83 $ 157.33 $ 30,550,823 $3,055,082 2023 532 77.4% $ 287.88 $ 222.70 $ 43,243,682 $4,324,368 2024 532 79.7% $ 297.50 $ 237.10 $ 46,039,315 $4,603,931 2025 532 80.7°% $ 306.79 $ 247.45 $ 48,049,609 $4,804,961 Source: MR&A calculations based on blended Scenarios In swnmary, Scenario 1 (the Proposed Project) is forecast to generate slightly more TOT than Scenario 2 (the No Project Alternative) over the next twenty years, while Scenario 3 (the Hybrid Hotel Project) would generate approximately 30% more TOT than either of the other two Scenarios during this period, as shown in the table below. 41 P i 17-71 Planning Commission Resolution No. PC2022-011 Paae 67 of 72 Trrr my -Ye ar TOT pro ie ctions (1) Year Scenario 1 Scenario 2 Scenario 3 2022 $ 2,130.503 $ 3,093,560 S 3,055,082 2013 S 3,328,113 $ 3,333,381 S 4,324,368 2024 $ 3,564,769 $ 3,476 945 S 4,603,931 2025 $ 3,730,373 $ 3,595,476 S 4,804,961 2026 S 3,842,284 $ 3,703,341 $ 4,949,1 10 2027 S 3,957,553 $ 3,814,441 S 5,097,593 2028 $ 4,076279 $ 3,928,874 S 5,250,510 2029 $ 4,198,568 S 0461740 S 5,408,026 2030 $ 4,324,525 S 4,168,143 S 5,570,267 2031 $ 4,454,260 S 4,293,187 S 5,737,375 2032 $ 4,587,888 S 4,421,982 $ 5,909,496 2033 $ 4,725,525 S 4,554,642 $ 6,086,781 2034 $ 067,291 S 4,691,281 $ 6,269,384 2035 $ 5,013,309 S 4,832,020 $ 6,457,466 2036 $ 5.163,709 S 4,976,980 $ 6,651,190 2037 $ 5,318.620 S 5,126,290 $ 6,850,725 2038 $ 5,478,179 S 5,280,078 $ 7,056,247 2039 $ 5,642,524 S 5,438,481 S 7,267,934 2040 $ 5,811,800 S 5,601,635 S 7,485,972 2041 $ 5,986,154 S 5,769,684 S 7,710,552 20-yr total $ 90,202,225 $ 88,147,162 $116,546,960 1. ,applied STR recovery prgicctions for US Hotels for 2022 through 2025, then 3% inflation through 2041. Comparison of Scenarios With the Addition of Property Taxes Although not required as part of the TUT comparison analysis, it is clear that the City would receive additional tax revenues from Scenario 1 that would not accrue under Scenarios 2 and 3, specifically an increase of about $2 million per year in property taxes once the sell -out of the 159 hotel -branded residences under Scenario 1 is projected to be completed. We have prepared an analysis of the property taxes that would be expected to accrue to the City for each of the Scenarios, assuming the sale of the residences during the 2026 through 2029 period, Property taxes in Orange County are estimated at 1.05% of the sales price of each residence, and the City receives approximately 17.15% of the property taxes paid each year to the County. The sales of the proposed 159 hotel -branded residences under Scenario I are projected to occur during the years 2026 through 2029, and once sold, would generate an estimated approximately S10.5 million of property taxes for the County, with approximately $1,8 million (17.15%) of those monies flowing directly to the City of Newport Beach's general field. There would be no such additional property taxes generated under Scenarios 2 or 3. 51Pagk� 17-72 Planning Commission Resolution No. PC2022-011 Paae 68 of 72 Thus, for the twenty-year projection period, the Project would be expected to generate well over $30 million more in property taxes for the City than either of the other Scenarios, as shown in the table below: Twenty -Year Newport Beach Proip Tax Projections Year Scenario 1 Scenario 2 Scenario 3 2022 $ 401344 S 429,968 S 500051 2023 $ 723,221 S 438,568 S 510.970 2024 $ 1,045,258 S 447,339 $ 521,190 2025 $ 1,367,459 S 456,286 S 531,614 2026 $ 1,623294 $ 465,412 S 542,246 2027 $ 2,041,246 S 474,720 S 553,091 2028 $ 2,345,812 S 484,214 $ 564,153 2029 $ 2,497,483 S 493,898 $ 575,436 2030 $ 2,547,432 S 503,776 $ 586,944 2031 $ 2,598,381 S 513,852 $ 598,683 2032 $ 2,650,349 S 524,129 S 610,657 2033 $ 2,703,356 S 534,612 S 622,870 2034 $ 2.757,423 S 545,304 $ 635,327 2035 $ 2,812,571 S 556,210 S 648,034 2036 $ 2,868,823 S 567,334 S 660,995 2037 $ 2,926,199 S 578,681 $ 674,215 2038 $ 2,984,723 S 590,254 $ 687,699 2039 $ 3,044,418 S 602,059 S 701,453 2040 $ 3,105,306 S 614,101 S 715,482 2041 $ 3,167.412 S 626,383 $ 729,792 20-yrtotal S 46,211,5,10 S 10,447,099 S 12,171,801 Combining the projected TOT and the property taxes for each Scenario would, correspondingly, be expected to result in the following amounts of these tax receipts for the City of Newport Beach for the next twenty years, as shown in the following table: 61Pa_c 17-73 Planning Commission Resolution No. PC2022-011 Paae 69 of 72 24-year total of TOT + Property Taxes for the City Year Scenario 1 Scenario 2 Scenario 3 2022 $ 2,531,847 S 3,523,529 $ 3,556,034 2023 $ 4,051,334 S 3,771,949 $ 4,935,339 2024 $ 4,610,028 S 3,924,284 $ 5,125,121 2025 $ 5,097,832 S 4,051,762 $ 5,336,574 2026 $ 5,465,578 S 4,168,752 $ 5,491,356 2027 $ 5,998,798 S 4,289,161 $ 5,650,674 2029 $ 6,422,092 S 4,413,088 $ 5,814,663 2029 $ 6,696,051 S 4,540,639 $ 5,983,461 2030 $ 6,871,957 S 4,671,919 $ 6,157211 2031 $ 7,052,642 S 4,807,039 $ 6,336,058 2032 $ 7,238,237 S 4,946,111 $ 6,520,153 2033 $ 7,428,881 S 5,089,254 $ 6,709,651 2034 $ 7,624,714 S 5,236,585 $ 6,904,712 2035 $ 7,825,881 S 5,388,230 $ 7,105.500 2036 $ 8,032,531 S 5,544,314 $ 7,312,184 2037 $ 8,244,819 S 5,704,970 $ 7,524,940 2038 $ 8,462,902 S 5,870,333 $ 7,743,946 2039 $ 8,686 942 S 6,040,540 $ 7,969,387 2040 $ 8,917,106 S 6,215,736 $ 8201,454 2041 $ 9,153,566 S 6,396,067 $ 8,440,343 20-year total $ 136,413,736 5 98,594,261 $ 128,718,761 The total tax receipts to the City would be greatest in Scenario 3 for the early years, but because the property taxes associated with the residences would reset with each sale of a residential unit, eventually the total taxes generated by Scenario I would overtake those of Scenario 3. In this instance, the lines cross in 2027, after which the projected annual taxes generated by the Project under Scenario 1 exceed those of Scenario 3. In summary, the inclusion of property taxes in the analysis would result in Scenario I's projected City tax receipts exceeding those of Scenario 2 by almost $38 million (--38%), and Scenario 3 by almost $8 million, or 6%. Additional tables showing the assumptions and calculations for our analysis are presented in the Excel workbook entitled "MRA model NB Ritz -Carlton 3.18.77". 71E'a ,c 17-74 Planning Commission Resolution No. PC2022-011 Paae 70 of 72 Statement of Qualifications R. Maurice Robinson, ISHC Mr. Robinson has over 40 years of experience as a consultant in the real estate and hospitality development industry. He is an expert in the field of facilitating full -service hotel development, ground leases, concession contracts, market and financial feasibility analysis, fiscal and economic benefit studies, structuring public subsidies for new hotel development, and public/private development partnerships. He specializes in public sector counseling, and typically assists California and Federal agencies in: • facilitating hotel, commercial and residential development on public properties • structuring hospitality development deals using public financing vehicles • negotiating ground and building leases for new hospitality developments • identifying and soliciting hospitality brands, operators, and developers • Performing economic feasibility and fiscal impact studies for hotel projects • valuing private investment on public lands • providing expert witness testimony in disputes; and • analyzing and structuring development and management agreements. A partial list of his public -sector clients in California fol lows: • Alameda • California Coastal Commission • Cathedral City • Crescent City • Del Mar • Department of State Parks and Recreation • Escondido • Fresno • Glendale • Golden Gate Bridge District • Healdsburg • Inglewood • Laguna Beach • Long Beach • Los Angeles, Community Redevelopment Agency • Los Angeles, Department of Airports • Los Angeles, Department of City Planning • Los Angeles, Grand Ave .TPA • Manhattan Beach • Metropolitan Water District • Monterey County • Mountain View 8 1 P a g e 17-75 Planning Commission Resolution No. PC2022-011 Paae 71 of 72 • Napa • National Park Service • Oceanside • Orange County • Palm Desert • Poway • Richmond • Riverside • Riverside County Transportation Commission • San Diego City • San Diego County • San Diego Metropolitan Transit System • San Diego Unified Port District • San Jose, Redevelopment Agency • San Mateo County • San Mateo County Harbor District • Santa Clara Valley Transportation Authority • Santa Monica • Solano County • South Coast Air Quality Management District • Southern California Association of Governments • U.S. Department of Justice • West Sacramento Public clients and the hotels that have been developed, or are now being developed: • City of San Diego's 170-room 5-diamond Lodge at Torrey Pines • City of Manhattan Beach's 400-room Westdrift Autograph Hotel and Golf Course • City of San Jose's downtown 506-room Marriott Hotel • City of Beverly Hills's 201-room Montage Hotel & 25 Branded Residences • City of Laguna Beach's 258-room Montage Resort and 27 Branded Residences • National Park Service's 252-room Argonaut Hotel in San Francisco (conversion of the historic Haslett Warehouse on Fisherman's Wharf) • National Park Service's 142-room Lodge at Cavallo Point in Golden Gate Park (conversion of the historic Fort Baker Army post near Sausalito). • City of San Diego's Liberty Station 200-room Courtyard and 150-unit Homewood Suites (conversion of the ex -Naval Training Center adjacent to the airport) • Port of San Diego's 253-room Springhill Suites and 147-unit Residence Inn • Port of San Diego's 400-room Intercontinental hotel • City of Mountain View's 255-room Ameswell hotel • City ofOceanside's 161-room Mission Pacific hotel and 226-room Seabird hotel • City of Mountain View's proposed 180-room Joie de Vivre hotel (to be developed) 91Pagc 17-76 Planning Commission Resolution No. PC2022-011 Paae 72 of 72 • City of Santa Monica's Fairmont Miramar Hotel and 60 Branded Residences (to be redeveloped) Affiliations: Mr. Robinson is a member of the prestigious International Society of Hospitality Consultants (ISHC), where he served for nine years on the Board of Directors and as Chairman of the Professional Conduct Committee. Other professional memberships include the American Society of Appraisers (ASA), and the Forensic Expert Witness Association (FEWA). He is also a member of the Hoard of Arbitrators for the Financial Industry National Regulatory Authority (FINRA). Background: Mr. Robinson is President of Maurice Robinson & Associates LLC, providing advisory services to investors and developers in the Hospitality and Real Estate industries. Prior to founding his current firm in 1999, he was a Principal with KPMG Peat Marwick LLP, leading their western region Hospitality and Real Estate consulting practice for twelve years (1986-1998). Prior to KPMG, he was a Senior Consultant and Manager in the real estate and hospitality consulting practice of Pannell Kerr Forster (now PKF Consulting) for five yearn (1982-1986). His previous work experience also includes three years as Senior Economist with the real estate consulting firm of Williams- Kuebelbeck and Associates (1979-1982), and a year as an independent consultant (I 978). Education: Mr. Robinson holds a General Real Estate Appraisal certificate from the State of California; a Master of Public Administration degree from the University of Southern California; a Bachelor of Arts degree in economics from Macalester College in St. Paul, Minnesota; a certificate of environmental management with a specialty in public/private partnerships from the Environmental Management Institute in Los Angeles; and a professional designation in financial planning from UCLA. Speeches, Teaching and Writing: Mr. Robinson is a frequent lecturer, having spoken more than two dozen times at various real estate and hospitality industry -related seminars and conferences across the United States, and was an annual guest lecturer at the UC Berkeley MBA program. He is the author of numerous articles, book chapters, and was the editor of KPMG's Hospitality Update newsletter. He has co-authored an article entitled "How to Value Commercial Improvements in a National Park" in the Winter 2000fSpring 2001 edition of Real Estate Issues; a chapter entitled "Alternative Dispute Resolution in the Hospitality Industry" in the textbook Hotel Investments: Issues and Perspectives, 4' edition (2006); a chapter entitled "Converting Existing Historic Buildings into Hotels" in the textbook Hotel Sustainable Development: Principals and Best Practices, I" edition (2011); and an article entitled "Issue Review BoardsTM The Next Wave of Alternative Dispute Resolution for the Hospitality Industry". Awards: Mr. Robinson received the coveted James Felt Creative Counselor Award from his peers in the real estate counseling community for his ground -breaking work appraising the Grand Canyon for the National Park Service. He is also the recipient of the Member of the Year award by his peers in the ISHC for his efforts in establishing an Alternative Dispute Resolution training program. In 2016, he facilitated the acquisition by the NPS of the final parcel of land to complete the 67-mile Backbone Trail in the Santa Monica Mountains. Contact info: 28 Dover Place, Manhattan Beach, CA 90266, Tel: 310-640-9656. Fax: 310-640- 9276. Cell: 310-713-3220. E-mail: MauricefciiMauriceRobinson.com; Web site: Nvww.MauriceRobinson. com. 101Pagc 17-77 ATTACHMENT D SHEET 1 OF 4 SHEETS NUMBERED LOTS: 2 GROSS AREA=9.528 ACRES DATE OF SURVEY: JUNE 2022 TRACT NO. 19222 ALL OF TENTATIVE TRACT NO. 19222 NT 2021-003 IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA BEING A SUBDIVISION OF PARCEL 2 AS SHOWN ON A MAP FILED IN BOOK 361, PAGES 1 THROUGH 3, INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND AS MODIFIED BY CERTIFICATE OF CORRECTION RECORDED APRIL 23, 2008 AS INSTRUMENT NO. 2008000190230 OF OFFICIAL RECORDS. FOR CONDOMINIUM PURPOSES KURT R. TROXELL, L.S. 7854 OWNERSHIP CERTIFICATE: WE, THE UNDERSIGNED, BEING ALL PARTIES HAVING RECORD TITLE INTEREST IN THE LAND COVERED BY THIS MAP, DO HEREBY CONSENT TO THE PREPARATION AND RECORDATION OF SAID MAP, AS SHOWN WITHIN THE DISTINCTIVE BORDER LINE. WE HEREBY DEDICATE TO THE CITY OF NEWPORT BEACH "EMERGENCY ACCESS", AS SHOWN ON THIS MAP. NEWPORT CENTER HOTEL, LLC, A DELAWARE LIMITED LIABILITY COMPANY IR NAME: TITLE: m. NAME: TITLE: JUNE 2022 BENEFICIARY: PCRED LENDING VI LLC, A DELAWARE LIMITED LIABILITY COMPANY, AS BENEFICIARY UNDER A DEED OF TRUST RECORDED NOVEMBER 2, 2020 AS INSTRUMENT NO. 2020000625928 OF OFFICIAL RECORDS. NAME: TITLE: NOTARY ACKNOWLEDGMENT NAME: TITLE: A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONLY THE IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ATTACHED, AND NOT THE TRUTHFULNESS, ACCURACY, OR VALIDITY OF THAT DOCUMENT. STATE OF COUNTY OF ON BEFORE ME, A NOTARY PUBLIC, PERSONALLY APPEARED WHO PROVED TO ME ON THE BASIS OF SATISFACTORY EVIDENCE TO BE THE PERSON(S) WHOSE NAME(S) IS/ARE SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED TO ME THAT HE/SHE/THEY EXECUTED THE SAME IN HIS/HER/THEIR AUTHORIZED CAPACITY(IES), AND THAT BY HIS/HER/THEIR SIGNATURES) ON THE INSTRUMENT THE PERSON(S), OR THE ENTITY UPON BEHALF OF WHICH THE PERSON(S) ACTED, EXECUTED THE INSTRUMENT. 1 CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING PARAGRAPH IS TRUE AND CORRECT. WITNESS MY HAND: SIGNATURE NOTARY PUBLIC IN AND FOR SAID STATE (PRINT NAME) NOTARY ACKNOWLEDGMENT MY PRINCIPAL PLACE OF BUSINESS IS IN COUNTY MY COMMISSION EXPIRES: MY COMMISSION NO.: A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONLY THE IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ATTACHED, AND NOT THE TRUTHFULNESS, ACCURACY, OR VALIDITY OF THAT DOCUMENT. STATE OF COUNTY OF ON BEFORE ME, A NOTARY PUBLIC, PERSONALLY APPEARED WHO PROVED TO ME ON THE BASIS OF SATISFACTORY EVIDENCE TO BE THE PERSON(S) WHOSE NAME(S) IS/ARE SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED TO ME THAT HE/SHE/THEY EXECUTED THE SAME IN HIS/HER/THEIR AUTHORIZED CAPACITY(IES), AND THAT BY HIS/HER/THEIR SIGNATURES) ON THE INSTRUMENT THE PERSON(S), OR THE ENTITY UPON BEHALF OF WHICH THE PERSON(S) ACTED, EXECUTED THE INSTRUMENT. I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING PARAGRAPH IS TRUE AND CORRECT. WITNESS MY HAND: SIGNATURE NOTARY PUBLIC IN AND FOR SAID STATE (PRINT NAME) MY PRINCIPAL PLACE OF BUSINESS IS IN COUNTY MY COMMISSION EXPIRES: MY COMMISSION NO.: FUSCOE ENGINEERING, INC. SURVEYOR'S STATEMENT: ACCEPTED AND FILED AT THE REQUEST OF CHICAGO TITLE COMPANY DATE TIME FEE INSTRUMENT BOOK PAGE HUGH NGUYEN COUNTY CLERK —RECORDER BY DEPUTY THIS MAP WAS PREPARED BY ME OR UNDER MY DIRECTION AND IS BASED UPON A FIELD SURVEY IN CONFORMANCE WITH THE REQUIREMENTS OF THE SUBDIVISION MAP ACT AND LOCAL ORDINANCE AT THE REQUEST OF NEWPORT CENTER HOTEL, IN JUNE 2022. 1 HEREBY STATE THAT ALL THE MONUMENTS ARE OF THE CHARACTER AND OCCUPY THE POSITIONS INDICATED, OR THAT THEY WILL BE SET IN SUCH POSITIONS WITHIN 90 DAYS AFTER ACCEPTANCE OF IMPROVEMENTS; AND THAT SAID MONUMENTS ARE SUFFICIENT TO ENABLE THE SURVEY TO BE RETRACED. I HEREBY STATE THAT THIS FINAL MAP SUBSTANTIALLY CONFORMS TO THE CONDITIONALLY APPROVED TENTATIVE MAP. KURT R. TROXELL, L.S. 7854 DATE COUNTY SURVEYOR'S STATEMENT: I HEREBY STATE THAT I HAVE EXAMINED THIS MAP AND FOUND THAT ALL MAPPING PROVISIONS OF THE SUBDIVISION MAP ACT HAVE BEEN COMPLIED WITH AND I AM SATISFIED SAID MAP IS TECHNICALLY CORRECT. DATED THIS DAY OF 2022. KEVIN R. HILLS, COUNTY SURVEYOR L.S. NO. 6617 BY: LILY M. N. SANDBERG, DEPUTY COUNTY SURVEYOR P.L.S. 8402 CITY ENGINEER'S STATEMENT: LAND SU�� O NO. 8402 �\ CF CAL�FOj I HEREBY STATE THAT I HAVE EXAMINED THIS MAP AND HAVE FOUND IT TO BE SUBSTANTIALLY IN CONFORMANCE WITH THE TENTATIVE MAP, IF REQUIRED, AS FILED WITH, AMENDED, AND APPROVED BY THE CITY PLANNING COMMISSION; THAT ALL PROVISIONS OF THE SUBDIVISION MAP ACT AND CITY SUBDIVISION REGULATIONS HAVE BEEN COMPLIED WITH. THIS STATEMENT WILL BE EFFECTIVE ON THE DATE UPON WHICH THE COUNTY OF ORANGE APPROVES THE MAP AS TECHNICALLY CORRECT. DATED THIS DAY OF 2022. JAMES M. HOULIHAN DEPUTY PUBLIC WORKS DIRECTOR/CITY ENGINEER CITY OF NEWPORT BEACH R.C.E #51568 EXPIRES 06/30/2024 CITY CLERK'S STATEMENT: STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF NEWPORT BEACH ) /QROFESS/ON\ HOUR z u No.51568 rn CIVIL O/ F OF CP�-�F PURSUANT TO SECTION 19.60.010 OF THE SUBDIVISION CODE, AND PURSUANT TO THE PROVISIONS OF SECTION 66436(a)(3)(4) OF THE SUBDIVISION MAP ACT, I HEREBY CERTIFY THAT THIS MAP WAS PRESENTED FOR APPROVAL TO THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AT A REGULAR MEETING THEREOF HELD ON THE _____ DAY OF ------------- 2022, AND THAT THEREUPON SAID COUNCIL DID, BY AN ORDER DULY PASSED AND ENTERED, APPROVE SAID MAP. AND DID ACCEPT ON BEHALF OF THE CITY OF NEWPORT BEACH THE DEDICATION OF "EMERGENCY ACCESS". AND DID ALSO APPROVE SUBJECT MAP PURSUANT TO THE PROVISIONS OF SECTION 66436(A)(3)(4) OF THE SUBDIVISION MAP ACT. DATED THIS DAY OF 2022. tw LEILANI I. BROWN CITY CLERK, CITY OF NEWPORT BEACH DEPUTY COUNTY TREASURER -TAX COLLECTOR'S CERTIFICATE: STATE OF CALIFORNIA ) ) SS COUNTY OF ORANGE ) I HEREBY CERTIFY THAT ACCORDING TO THE RECORDS OF MY OFFICE, THERE ARE NO LIENS AGAINST THE LAND COVERED BY THIS MAP OR ANY PART THEREOF FOR UNPAID STATE, COUNTY, MUNICIPAL OR LOCAL TAXES OR SPECIAL ASSESSMENTS COLLECTED AS TAXES, EXCEPT TAXES OR SPECIAL ASSESSMENTS COLLECTED AS TAXES NOT YET PAYABLE. AND DO CERTIFY TO THE RECORDER OF ORANGE COUNTY THAT THE PROVISIONS OF THE SUBDIVISION MAP ACT HAVE BEEN COMPLIED WITH REGARDING DEPOSITS TO SECURE PAYMENT OF TAXES OR SPECIAL ASSESSMENTS COLLECTED AS TAXES ON THE LAND COVERED BY THIS MAP. DATED THIS DAY OF 2022. SEE SHEET 2 FOR ADDITIONAL NOTARY ACKNOWLEDGMENT AND SIGNATURE OMISSIONS SHARI L. FREIDENRICH COUNTY TREASURER —TAX COLLECTOR BY: TREASURER —TAX COLLECTOR 1112-008 17-78 SHEET 2 OF 4 SHEETS NUMBERED LOTS: 2 GROSS AREA=9.528 ACRES DATE OF SURVEY: JUNE 2022 TRACT NO. 19222 ALL OF TENTATIVE TRACT NO. 19222 NT 2021-003 IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA FOR CONDOMINIUM PURPOSES KURT R. TROXELL, L.S. 7854 FUSCOE ENGINEERING, INC. JUNE 2022 NOTARY ACKNOWLEDGMENT MONUMENT AND BOUNDARY ESTABLISHMENT NOTES: A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONLY THE IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ATTACHED, AND NOT THE TRUTHFULNESS, ACCURACY, OR VALIDITY OF THAT DOCUMENT. STATE OF SS COUNTY OF ON BEFORE ME, A NOTARY PUBLIC, PERSONALLY APPEARED WHO PROVED TO ME ON THE BASIS OF SATISFACTORY EVIDENCE TO BE THE PERSON(S) WHOSE NAME(S) IS/ARE SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED TO ME THAT HE/SHE/THEY EXECUTED THE SAME IN HIS/HER/THEIR AUTHORIZED CAPACITY(IES), AND THAT BY HIS/HER/THEIR SIGNATURES) ON THE INSTRUMENT THE PERSON(S), OR THE ENTITY UPON BEHALF OF WHICH THE PERSON(S) ACTED, EXECUTED THE INSTRUMENT. I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING PARAGRAPH IS TRUE AND CORRECT. WITNESS MY HAND: SIGNATURE NOTARY PUBLIC IN AND FOR SAID STATE (PRINT NAME) INDICATES CONTINUOUS OPERATING REFERENCE STATIONS (CORS) AS REFERENCED IN BASIS OF BEARINGS AND CONTROL POSITIONS SHOWN HEREIN. �S GPS STA. "SACY" N=2218016.19 E=6061432.27 �T GPS STA. "TRAK" N=2171992.61 E=6088761.20 • FOUND MONUMENT AS NOTED O SET 2" I.P. TAGGED "L.S. 7854" OR 8" SPIKE & WASHER STAMPED "L.S. 7854" IN ASPHALT PAVING HAVING A THICKNESS OF 2" OR MORE, OR LEAD & TACK TAGGED "L.S. 7854" IN CONCRETE AT ALL TRACT BOUNDARY CORNERS AS SHOWN WITHIN 90 DAYS AFTER ACCEPTANCE OF IMPROVEMENTS UNLESS OTHERWISE NOTED. ❑ SET 1" I.P. TAGGED "L.S. 7854" OR 8" SPIKE & WASHER STAMPED "L.S. 7854" IN ASPHALT PAVING HAVING A THICKNESS OF 2" OR MORE OR LEAD & TACK TAGGED "L.S. 7854" IN CONCRETE AT ALL LOT CORNERS AS SHOWN WITHIN 90 DAYS AFTER ACCEPTANCE OF IMPROVEMENTS UNLESS OTHERWISE NOTED. MY PRINCIPAL PLACE OF BUSINESS IS IN COUNTY 10024 FOUND 2" BRASS CAP IN WELL MON. PER R1, DN. 1.0' MY COMMISSION EXPIRES: 10027 FOUND 2" BRASS CAP IN WELL MON., ACCEPTED AS EC PER R1, DN. 1.0'. MY COMMISSION NO.: 10028 FOUND 2" BRASS CAP IN WELL MON., ACCEPTED AS EC (R=600') AND BC (R=2400') PER R1, DN. 1.0'. SIGNATURE OMISSIONS: PURSUANT TO THE PROVISIONS OF SECTION 66436 (a)(3)(A) OF THE SUBDIVISION MAP ACT, THE FOLLOWING SIGNATURES HAVE BEEN OMITTED: THE COUNTY OF ORANGE, OWNER OF AN AVIGATION EASEMENT PER DOCUMENT RECORDED MARCH 17, 1964 IN BOOK 6965, PAGE 721, OF OFFICIAL RECORDS. SOUTHERN CALIFORNIA EDISON COMPANY, A CORPORATION, OWNER OF AN EASEMENT FOR PUBLIC UTILITIES AND RIGHTS INCIDENTAL THERETO, PER DOCUMENT RECORDED DECEMBER 9, 1974 IN BOOK 11301, PAGE 1203, OF OFFICIAL RECORDS. THE CITY OF NEWPORT BEACH, A MUNICIPAL CORPORATION, OWNER OF AN EASEMENT FOR WATER LINES PURPOSES AND INCIDENTAL RIGHTS HERETO, PER DOCUMENT RECORDED JANUARY 7, 1975 IN BOOK 11318, PAGE 1747, OF OFFICIAL RECORDS. SOUTHERN CALIFORNIA EDISON COMPANY, A CORPORATION, OWNER OF AN EASEMENT FOR RIGHT TO WAY TO CONSTRUCT, USE AND REPAIR UNDERGROUND ELECTRICAL SUPPLY SYSTEMS, PER DOCUMENT RECORDED APRIL 26, 1985 AS INSTRUMENT NO. 85-149874, OF OFFICIAL RECORDS. THE IRVINE COMPANY, OWNER OF EASEMENTS FOR NON-EXCLUSIVE PUBLIC UTILITIES PURPOSES AND RIGHTS INCIDENTAL, PER DOCUMENT RECORDED JANUARY 4, 1993 AS INSTRUMENT NO. 93-003805, OF OFFICIAL RECORDS. PURSUANT TO THE PROVISIONS OF SECTION 66436 (a)(3)(C) OF THE SUBDIVISION MAP ACT, THE FOLLOWING SIGNATURES HAVE BEEN OMITTED: THE IRVINE COMPANY, A MICHIGAN CORPORATION, OWNER OF OIL, OIL RIGHTS, MINERAL RIGHTS, NATURAL GAS RIGHTS AND OTHER HYDROCARBONS AS RESERVED IN THE DEED RECORDED JANUARY 4, 1993 AS INSTRUMENT NO. 93-003805 OF OFFICIAL RECORDS. THE IRVINE COMPANY, A MICHIGAN CORPORATION, OWNER OF ANY AND ALL WATER, RIGHTS OR INTEREST THEREIN AS RESERVED IN THE DEED RECORDED JANUARY 4, 1993 AS INSTRUMENT NO. 93-003805 OF OFFICIAL RECORDS. 10029 FOUND 2" BRASS CAP IN WELL MON., ACCEPTED AS BC PER R1, DN. 0.9'. 10039 FOUND PUNCHED 2" BRASS CAP IN WELL MON. PER R1 & R2, DN. 1.0'. 10063 FOUND PUNCHED 2" BRASS CAP IN WELL MON. PER R2 & R3, DN. 0.9', ACCEPTED AS PCC. 10064 FOUND PUNCHED 2" BRASS CAP IN WELL MON. PER R4, DN. 0.9', ACCEPTED AS POC. 10066 FOUND PUNCHED 2" BRASS CAP IN WELL MON. PER R2, DN. 0.8'. 10074 FOUND 2" BRASS CAP IN WELL MON. PER R2, DN. 0.9'. 10101 FOUND 2" IRON PIPE TAGGED "LS 3246" PER R3, DN. 0.8'. FOUND LEAD, TACK & TAG "LS 3246" ON SIDEWALK PER R3 AT N13°11'22"E 1.00' M & R3, FLUSH. 10102 FOUND 2" IRON PIPE, TACK SHANK, NO TAG, ACCEPTED AS 2" IRON PIPE TAGGED "LS 3246" PER R3, DN. 1.0'. SET TAG "LS 7854". FOUND LEAD, TACK & TAG "LS 3246" PER R3 AT N13°10'44"E 1.00' M & R3, FLUSH. 10103 FOUND LEAD & TACK TAGGED "LS 4136" PER R5 AT S80°59'39"E 1.07' (1.11' R5), FLUSH. 10104 FOUND LEAD & TACK TAGGED "LS 4136" PER R5 AT S81°36'08"E 1.07' (1.11' R5), FLUSH. 10106 FOUND 1-1/2" IRON PIPE TAGGED "LS 2996" PER R3, DN. 0.7'. 10107 FOUND LEAD & TACK TAGGED "LS 2996" PER R3 AT N69°27'44"E 1.00' M & R3, FLUSH. 10108 FOUND 2" IRON PIPE TAGGED "LS 3109" PER R3, DN. 0.5'. 10109 SEARCHED, FOUND NOTHING. ESTABLISHED BY RECORD BEARING/DISTANCE PER R3 FROM MON NO. 10110. FOUND LEAD & TACK TAGGED "LS 4136" ON TREE PER R4 AT S50°54'05"W 1.27', FLUSH. (A +12" INDEX WAS APPLIED TO THE RECORD BEARING BASED ON THE BASIS OF BEARINGS PER R3 AS CALCULATED ALONG THE CHORD OF NEWPORT CENTER DRIVE FROM 10063 TO 10066 PER P.M.B. 37/49 BEING N11°57'12"W MEASURED AND N 1 1 °57'00"W RECORD.) 10110 FOUND 2" IRON PIPE, TAGGED "LS 3246" PER R3, DN. 3.50'. 10111 FOUND 2" IRON PIPE, ILLEGIBLE, ACCEPTED AS 2" IRON PIPE TAGGED "LS 3109" PER R3, DN. 0.7'. 10201 FOUND LEAD & TACK TAGGED "LS 2996" AT N69°27'44"E 14.78', NO REFERENCE, FLUSH. FOUND LEAD & TACK, NO REFERENCE, FLUSH. 10202 A❑ SEARCHED, FOUND NOTHING. REESTABLISHED POSITION BY HOLDING ORIGINAL MEASURED OBSERVATION VECTORS OF FOUND MONUMENT POSITION FROM FUSCOE 2012 SURVEY PER R1. © SEARCHED, FOUND NOTHING. ESTABLISHED BY RECORD BEARING/DISTANCE PER R3 (A +12" INDEX WAS APPLIED TO THE RECORD BEARING BASED ON THE BASIS OF BEARINGS PER R3 AS CALCULATED ALONG THE CHORD OF NEWPORT CENTER DRIVE FROM 10063 TO 10066 PER P.M.B. 37/49 BEING N11°57'12"W MEASURED AND N11°57'00"W RECORD.) 1112-008 17-79 SHEET 3 OF 4 SHEETS NUMBERED LOTS: 2 GROSS AREA=9.528 ACRES TRAr,.T NO lq.999 DATE OF SURVEY• JUNE 2022 ALL OF TENTATIVE TRACT NO. 19222 10024 NT 2021-003 Lu IN THE CITY OF NEWPORT BEACH, W o COUNTY OF ORANGE, STATE OF CALIFORNIA o 00 Z S `- FOR CONDOMINIUM PURPOSES KURT R. TROXELL, L.S. 7854 FUSCOE ENGINEERING, INC. 10027 \ JUNE 2022 �o" ss��9 �I BOUNDARY ESTABLISHMENT & LOT DETAIL '75: CD ry oosG� c� �I o BASIS OF BEARINGS: N to THE BEARINGS SHOWN HEREON ARE BASED ON THE BEARING BETWEEN ORANGE o COUNTY SURVEYORS HORIZONTAL CONTROL STATIONS GPS NO. TRAK AND GPS NO. J m � C) N SACY, BEING N30°42'07"W PER RECORDS ON FILE IN THE OFFICE OF THE ORANGE 1 COUNTY SURVEYOR. s v� N DATUM STATEMENT: a COORDINATES SHOWN HEREON ARE BASED ON THE CALIFORNIA COORDINATE SYSTEM o (CCS83), ZONE VI, 1983 NAD, (2017.50 EPOCH OCS GPS ADJUSTMENT). a COORDINATES SHOWN ARE IN US SURVEY FEET. 10074 _N87°37'59"E (R) (R=2400.00') 10028 ALL DISTANCES SHOWN ARE GROUND, UNLESS OTHERWISE NOTED. TO OBTAIN GRID \ DISTANCES, MULTIPLY GROUND DISTANCE BY 0.99996333. COMBINATION FACTOR IS PROJECT SPECIFIC BASED AT MONUMENT NO. 10029 AT AN ELEVATION OF 177.63'. \\moo o N87°37'43"E Rh/ 0 (R=600.00') - - - pro;\N�A Cyi cb .001 N80'28'22"w rriA c r N oko \ / Ail , l\il , 9 4 9 / 4 9 5 050 5 /,;\-7 h' 00 RECORD DATA REFERENCES: R1 - TRACT NO. 16774, M.M. 914/49-50 �7'9 R2 - PARCEL MAP, P.M.B. 37/49 LLJI R3 - PARCEL MAP, P.M.B. 75/33-34 � col R4 RECORD OF SURVEY NO. 2005-1144, R.S.B. 211/5-6 SEE DETAIL "A" 6' E' /� R5 PARCEL MAP NO. 2004-225, P.M.B. 361 /1-3 BELOW `6SS- OS 4� z �1S�A 4) 9 092�' (41�002p9 10039 10110 p04,) 10101 N7 1Op'R 1) 649 �6" 76 Q � 1 ��p W - N°4 w �' 836 OW iR P Jill 1\1 J, 7 9 7 0 4 o N13°11'57"E _/ c�' I-�' -- - -(R)- - 10102 / C4 - N80�g'3g_'w�R P Jill , B , J 5 2 -1 7 � 0 - - - N81 °36 C -� 10103 - - '08 10104 PCC w�R N 10063 LOT 1 6.753 AC. GROSS p 1 0' / Cl 65' 65' �h A / A DETAIL "A" N I -o A // L300 SCALE: 1 " L4 =60'/ O; o c„ -� L2 / / B a cn - J m N CD � II tQ °�T, ono° ram' 1.00' PROD ulo N90°00'00"W 229.84' J00 u m N <\\ \c9 6'. �c9.�s. ��oo �o �, 5� \ ���\ 6��, �pF- N86°23'18"E (�/ J IP 0-os.. ������ \ l ' 0 � \ `�(-)g5` PCC ;u ;;o 70� - N58°44 17 E I I 1 � °J°0oo n _4748»E N58° - - - 00CD o 600 \\<��Lo�� s� o� 101 1 1 / � a\ I \ rp61 m O�� s�� / //// 0 (5" lam. pco 1� LINE TABLE NO. BEARING LENGTH RECORD L1 N52°05'53"E 87.08' M & R1 L2 N00°29'10"E 12.90' M & R1 L3 N89°33'31 "E 9.70' M & R1 L4 N00°35'26"W 12.85' M & R1 L5 N56°09'54"E 85.35' M & R1 L6 N 19°24' 12"E 42.63' M & R 1 L7 N60°48'29"W 71.49' 71.65' R3 L8 N60°48'29"W 9.84' 9.82' R4 10.00' R3 L9 N60°48'29"W 61.65' M & E3) L10 N76°49' 16"W 52.76' M & R3 L11 N69°27'44"E 115.33' L12 N69°27'44"E 50.33' CURVE TABLE NO. DELTA RADIUS LENGTH C1 36°45'42" 19.50' 12.51' M & R1 C2 09°52'34" 19.50' 3.36' M & R1 C3 85°49'37" 25.00' 37.45' 85°49'00" 25.00' 37.45' R3 C4 00°36'29" 1010.00' 10.72' 00°36'43" 1010.00' 10.79' R3 C5 04°47'32" 945.00' 79.04' 04°47'43" 945.00' 79.09' R2 R3 C6 06°03'53" 1805.00' 191.06' 06°03'57" 1805.00' 191.10' R4 LOT 2 >> Cy! iAo 2.775 AC. GROSS w --tl� w o o0 R \ 9co N 9-0. N � � ��� ��� 1 1 N 1d3 r n r I 1 FR r' 1 r 1 1 y D 1 4 8 3 9 �i3 co � N r �N a �Lo_ N s� "so 713/l�r� 10106 Nc9 w �✓ ��9� ✓ 10064 os�� NOTE: SEE SHEET 2 FOR: MONUMENT AND BOUNDARY ESTABLISHMENT NOTES pwSEE SHEET 4 FOR: EASEMENT PLAT I 100 50 0 100 200 300 SCALE: 1 "=100' s r'rnoJ� 10202 �. 6 .00' 65, Qi N87GPS TI5.28"E�- (22870.50 GRID) I \ T 10108 I 10201 10107 I I N69°27'44"E (R) 10066 - - - - N57°41 45 W (R) ------- 1112-008 17-8 SHEET 4 OF 4 SHEETS NUMBERED LOTS: 2 GROSS AREA=9.528 ACRES DATE OF SURVEY: JUNE 2022 TRACT NO. 19222 ALL OF TENTATIVE TRACT NO. 19222 NT 2021-003 IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA FOR CONDOMINIUM PURPOSES KURT R. TROXELL, L.S. 7854 FUSCOE ENGINEERING, INC. JUNE 2022 EASEMENT PLAT NOTE: SEE SHEET 2 FOR: MONUMENT AND BOUNDARY ESTABLISHMENT NOTES SEE SHEET 3 FOR: BOUNDARY ESTABLISHMENT AND LOT DETAIL, BASIS OF BEARINGS, DATUM STATEMENT AND RECORD DATA REFERENCES CURVE TABLE NO. DELTA RADIUS LENGTH C7 04° 18'41 " 1010.00' 76.00' C8 04°41'54" 1870.00' 153.34' C9 14°44'48" 20.00' 5.15' C10 62°47'44" 34.00' 37.26' C11 90°00'00" 3.00' 4.71' C 12 12° 17'09" 981.34' 210.43' C13 26°16'48" 210.00' 96.32' C14 28°26'20" 190.00' 94.31' C15 05°07'54" 961.34' 86.10' C 16 60° 15'28" 10.00' 10.52' C17 12°56'55" 20.00' 4.52' C18 00°45'48" 1870.00' 24.91' C 19 00°24' 15" 1870.00' 13.19' C20 04°20'54" 209.49' 15.90' C21 17°37'52" 60.93' 18.75' C22 43°03'26" 28.24' 21.22' C23 43°03'25" 28.24' 21.22' C24 25°23'34" 60.93' 27.00' C25 21°45'52" 90.84' 34.51' C26 21 °45'52" 96.84' 36.79' C27 25°23'34" 66.93' 29.66' C28 43°03'26" 28.24' 21.22' C29 43°03'25" 28.24' 21.22' C30 25°23'34" 60.93' 27.00' C31 21°45'52" 90.84' 34.51' C32 13°22'34" 90.84' 21.21' C33 24°07'55" 19.92' 8.39' EASEMENTS: 1 AN AVIGATION EASEMENT GRANTED TO THE THE COUNTY OF ORANGE FOR USE OF AIRCRAFT, PRESENT OR FUTURE, FROM OR TO THE ORANGE COUNTY AIRPORT RECORDED MARCH 17, 1964 IN BOOK 6965, PAGE 721, OF OFFICIAL RECORDS. (BLANKET IN NATURE AND NOT SHOWN HEREON.) (D AN EASEMENT GRANTED TO SOUTHERN CALIFORNIA EDISON COMPANY FOR PUBLIC UTILITIES AND INCIDENTAL RIGHTS, RECORDED IN DECEMBER 9, 1974 IN BOOK 11301, PAGE 1203, OF OFFICIAL RECORDS. O3 AN EASEMENT GRANTED TO THE CITY OF NEWPORT BEACH FOR WATER LINES PURPOSES AND INCIDENTAL RIGHTS, RECORDED JANUARY 7, 1975 IN BOOK 11318, PAGE 1747, OF OFFICIAL RECORDS. R) R) a _ N76°49 , N7 14p 0 p, W 6° g 198.065.00 0' -7- _ I N83 3 5 T 0 8 w 2 N63058,w I \ 185 O0_ N81°07'19"W / 65' 65' I _ 15' N01 °00'58"W 9.00' 13 3'rN83°30I --I � 58 W � I 30.00' I C,4 I N88°59'02"E I N m 30.00' I 0 \ N88°59'02"E / I f LOT 1 6.753 AC. GROSS 4 AN EASEMENT GRANTED TO SOUTHERN CALIFORNIA EDISON COMPANY FOR RIGHT TO WAY TO CONSTRUCT, USE AND REPAIR UNDERGROUND ELECTRICAL SUPPLY SYSTEMS, RECORDED APRIL 26, 1985 AS INSTRUMENT NO. 85-149874, OF OFFICIAL RECORDS. (THE EXACT LOCATION CANNOT BE DETERMINED FROM RECORD INFORMATION.) O5 AN EASEMENT FOR NON-EXCLUSIVE PUBLIC UTILITIES PURPOSES AND RIGHTS INCIDENTAL, AS RESERVED BY THE IRVINE COMPANY IN DOCUMENT RECORDED JANUARY 4, 1993 AS INSTRUMENT NO. 93-003805, OF OFFICIAL RECORDS. O AN EASEMENT FOR "EMERGENCY ACCESS" AS DEDICATED HEREON. n m - - SEE DETAIL "B" I I m \ BELOW / A I N90°00'00"E 229.84' I� r<r► LOT 2 I 2.775 AC. GROSS \ O`°/ \\ \ 1 `J \ C11 C2 7 -� to ^ 1 0��2 No �/ 1 co fir/o \ \ \ \ III N47°46'51"W (� \ NI31025 ° PCC PCB , A \A 6s� /o \ \ \ �-- `p 1 \ I `' \ p , 1 6� �6�0� E �Rl,� // �1 r �oo�`r-o, / / , /� \ \�� \��5 N32 R,20 6 po C21 �' N83°46'40"� I �g0 \ �oo� (R) UI �, I \ ���� �5 \ C1 p \ 09 �R,�a \\��----- I �1� 1 DETAIL „B„ / \ „ \ 69 1 SCALE: 1 "=20\ N21 55 47 W R� ' / 1 \� PRC / �b�6 1112-008 17-81 ATTACHMENT E SUBDIVISION AGREEMENT BY AND BETWEEN THE CITY OF NEWPORT BEACH AND NEWPORT CENTER RESIDENCES, LLC FOR TRACT NO. 19222 THIS AGREEMENT ("Agreement") is entered into this day of September, 2022, by and between the CITY OF NEWPORT BEACH, a municipal corporation and charter city of the State of California, hereinafter referred to as "CITY," and NEWPORT CENTER RESIDENCES, LLC, a Delaware limited liability company, hereafter referred to as "SUBDIVIDER." RECITALS WHEREAS, SUBDIVIDER is the owner of a tract of land in CITY, which it is seeking to subdivide into lots and to make certain private and public improvements, and is about to file with CITY a map of the tract of land known as Tract No. 19222 ("Tract"); WHEREAS, as conditions of approval of and prior to the recordation of this subdivision map for the Tract, SUBDIVIDER is required to complete street (including street, curb and gutter, sidewalk, drive approach and parkway culvert); water, and sewer improvements (utilities); and fire access (collectively, "Improvements") as shown on public improvement plans for Tract No. 19222 dated September , 2022 ("Improvement Plans"), and to perform certain other improvements in the subdivision; and WHEREAS, SUBDIVIDER desires to enter into an agreement with CITY to delay performance of certain portions of the work; to agree to perform this work as herein provided; and to execute and deliver to CITY bonds for the faithful performance of this Agreement, for the payment of all labor and material in connection therewith, and for the guarantee and warranty of the work for a period of one (1) year following completion and acceptance thereof against any defect in work or labor done, or defective materials furnished, and subdivision monumentation, as required by Sections 66499 through 66499.10 of the California Government Code and Section 19.36.030 (Improvement Security (66499 et seq.)) of the Newport Beach Municipal Code. NOW, THEREFORE, in consideration of the promises and agreements of the parties as herein set forth, the parties agree as follows: GENERAL IMPROVEMENTS SUBDIVIDER hereby agrees to do, perform, and pay for all of the work for the Improvements as shown on the Improvement Plans for said Tract as required by the conditions of approval of the subdivision map for the Tract ("Map") which are not completed at the time of the recordation thereof. SUBDIVIDER also agrees to pay all engineering costs and any other deposits, fees, or conditions associated with the Tract and with the Improvements as required by CITY ordinance or resolution and as may be required by the City Engineer. All of the work for the Improvements ("Work") shall be done and performed in accordance with the Improvement Plans, specifications, and profiles which have been approved by the City Engineer and filed in the office of the City Engineer. All of the Work shall be done at the sole cost and expense of SUBDIVIDER. All of the Work shall be completed on or before three (3) years from the date hereof, 17-82 unless the conditions of approval of the Map require an earlier completion date. All labor and material costs and expenses for the Work shall be paid solely by SUBDIVIDER. CITY may withhold all occupancy permits until completion of the Improvements. 2. STREET. UTILITIES. AND FIRE ACCESS IMPROVEME SUBDIVIDER agrees to complete any and all street, utilities, and fire access improvements, including perimeter sidewalks, medians, and landscaping required by the conditions of approval of the Map, prior to release or connection of utilities for occupancy for any lot in the Tract. 3. GUARANTEE SUBDIVIDER shall guarantee all Work and material required to fulfill its obligations as stated herein for a period of one (1) year following the date of the City Council's acceptance of same. 4. IMPROVEMENT PLAN WARRANTY SUBDIVIDER warrants the Improvement Plans, specifications, and profiles which have been approved by the City Engineer and filed in the office of the City Engineer are adequate to accomplish the Work as promised herein and as required by the conditions of approval of the Map. If at any time before the City Council accepts the Work as complete or during the one (1) year guarantee period in Section 3 hereof, the Improvement Plans, specifications, and profiles which have been approved by the City Engineer and filed in the office of the City Engineer prove to be inadequate in any respect, SUBDIVIDER shall make whatever changes, at its own cost and expense, as are necessary to accomplish the Work as promised. 5. NO WAIVER BY CITY Inspection of the Work and/or materials for the Improvements, or approval of Work and/or materials for the Improvements, or any statement by any officer, agent or employee of CITY indicating the Work or any part thereof complies with the requirements of this Agreement, or acceptance of the whole or any part of the Work and/or materials for the Improvements, or payments therefor, or any combination of all of these acts, shall not relieve SUBDIVIDER of its obligations under this Agreement; nor shall CITY be stopped from bringing any action for damages arising from SUBDIVIDER'S failure to comply with any of the terms and conditions hereof. 6. COSTS SUBDIVIDER shall, at its own cost and expense, pay when due, all the costs of the Work, including inspections thereof and relocation of existing utilities required thereby. 7. SURVEYS SUBDIVIDER shall set and establish survey monuments in accordance with the filed Map and to the satisfaction of CITY before acceptance of any Work by the CITY. 8. IMPROVEMENT SECURITY Upon executing this Agreement, SUBDIVIDER shall, pursuant to California NEWPORT CENTER RESIDENCES, LLC Page 2 17-83 Government Code Section 66499, and the Newport Beach Zoning and Subdivision Ordinance, provide as security to CITY: PUBLIC WATER, PUBLIC SEWER, PUBLIC STREET, MONUMENTATION, FIRE ACCESS A. Performance: For performance security, in the amount of Eight Hundred Ninety Five Thousand Four Hundred Ninety Nine Dollars and 95/100 ($895,499.95), which is one hundred percent (100%) of the estimated cost of the work. SUBDIVIDER shall present such additional security in the form of: Cash, certified check, or cashier's check. X Acceptable corporate surety bond. Acceptable irrevocable letter of credit. With this security, SUBDIVIDER guarantees performance under this Agreement and maintenance of the Work for one (1) year after its completion and acceptance against any defective workmanship or materials or unsatisfactory performance. B. For Labor and Material: Security in the amount of Eight Hundred Ninety Five Thousand Four Hundred Ninety Nine Dollars and 95/100 ($895,499.95), which is one hundred percent (100%) of the estimated cost of the work. SUBDIVIDER shall present such security in the form of: Cash, certified check, or cashier's check. X Acceptable corporate surety bond. Acceptable irrevocable letter of credit. With this security, SUBDIVIDER guarantees payment to the contractor, to its subcontractors, and to persons renting equipment or furnishing labor or materials for the Improvements or to SUBDIVIDER. C. Maintenance: Security in the amount of Eighty Nine Thousand Five Hundred Forty Nine Dollars and 99/100 ($89,549.99), which is ten percent (10%) of the estimated cost of the work. SUBDIVIDER shall present such security in the form of: Cash, certified check, or cashier's check. X Acceptable corporate surety bond. Acceptable irrevocable letter of credit. With this security, SUBDIVIDER provides a one (1) year guarantee period on all work and materials. Such Maintenance Bond shall be released one (1) year after acceptance of all improvements. SUBDIVIDER may, during the term of this Agreement, substitute improvement security provided that the substituted security is approved in advance in writing by the City Attorney; however, any bond or other security given in satisfaction of this condition NEWPORT CENTER RESIDENCES, LLC Page 3 17-84 shall remain in full force and effect until one (1) year after the Improvements are accepted in writing by CITY. SUBDIVIDER may be required by CITY to provide a substitute security at any time until one (1) year after the Improvements are accepted in writing by CITY. 9. INDEMNIFICATION. DEFENSE. HOLD HARMLESS City and all officers, employees, and representatives thereof shall not be responsible in any manner for any loss or damage to any of the materials or other things used or employed in performing the Work or for injury to or death of any person as a result of SUBDIVIDER's performance of the Work required hereunder; or for damage to property from any cause arising from the performance of the Work by SUBDIVIDER, or its subcontractors, or its workers, or anyone employed by either of them. SUBDIVIDER shall be responsible for any liability imposed by law and for injuries to or death of any person or damage to property resulting from defects, obstructions, or from any cause arising from SUBDIVIDER's performance of the Work, performance of the Work by any contractor, subcontractor, or agent of SUBDIVIDER, or a supplier providing materials for the Work on behalf of the SUBDIVIDER. To the fullest extent permitted by law, SUBDIVIDER shall indemnify, defend and hold harmless City, its City Council, boards, committees and commissions, officers, agents, volunteers, and employees (collectively, the "Indemnified Parties") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate (directly or indirectly) to any breach of the terms and conditions of this Agreement by or on behalf of SUBDIVIDER, any Work performed for the Improvements including, without limitation, defects in workmanship or materials or SUBDIVIDER's presence or activities conducted on the Work (including the negligent and/or willful acts, errors and/or omissions of SUBDIVIDER, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require SUBDIVIDER to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorneys' fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all Claims regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by SUBDIVIDER. SUBDIVIDER shall perform all Work in a mannerto minimize public inconvenience and possible hazard, to restore other work areas to their original condition and former usefulness as soon as possible, and to protect public and private property. SUBDIVIDER shall be liable for any private or public property damaged during the performance of the Work by SUBDIVIDER or its agents. NEWPORT CENTER RESIDENCES, LLC Page 4 17-85 In addition to the other rights of City hereunder, in the event that any Claims are brought against the CITY as a result of SUBDIVIDER'S breach of the terms and conditions of this Agreement, any Work performed by or on behalf of SUBDIVIDER, or as a result of SUBDIVIDER's presence or activities conducted on the Tract, the City, as it deems necessary and to the extent authorized by law, may retain any security under Section 8 of this Agreement until disposition of any such Claims. The rights and obligations set forth in this Section shall survive the termination of this Agreement. 10. INSURANCE Any insurance required by the City pursuant to any permit issued to City including but not limited to, any encroachment permits, shall be obtained by SUBDIVIDER. The requirement for carrying the insurance coverage shall not derogate from SUBDIVIDER'S defense, hold harmless and indemnification obligations as set forth in Section 9 of this Agreement. CITY or its representatives shall at all times have the right to demand the original or a copy of the policy of insurance. SUBDIVIDER shall pay, in prompt and timely manner, the premium on all insurance hereinabove required. 11. NONPERFORMANCE AND COSTS If SUBDIVIDER fails to complete the Work within the time specified in this Agreement, or any subsequent extensions, if any, or fails to maintain the Work, CITY may proceed to complete and/or maintain the Work by contract or otherwise, and SUBDIVIDER agrees to pay all costs and charges incurred by CITY (including, but not limited to: engineering, inspection, surveys, contract, overhead, etc.) immediately upon demand. In such event, the CITY may utilize the security provided under Section 8 to cover costs and charges incurred by CITY (including, but not limited to: engineering, inspection, surveys, contract, overhead, etc.) for the Work. SUBDIVIDER hereby consents to entry on the subdivision property by CITY and its forces, including subdividers, in the event CITY proceeds to complete and/or maintain the Work. Once action is taken by CITY to complete or maintain the Work, in the event that City does not elect to use the security provided by SUBDIVIDER for the Improvements or does elect to use such security and such security is insufficient for City to complete or maintain the Work, SUBDIVIDER agrees to pay all costs incurred by CITY even if SUBDIVIDER subsequently completes the Work. 12. RECORD MAP In consideration hereof, CITY agrees that SUBDIVIDER is permitted to file and record the final Map for the Tract. 13. NOTICES Any notices, certificates, or other communications hereunder shall be given either NEWPORT CENTER RESIDENCES, LLC Page 5 17-86 by personal delivery to SUBDIVIDER or to CITY as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below. CITY and SUBDIVIDER may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, reputable overnight courier or U.S. certified mail -return receipt requested: TO CITY: City of Newport Beach Attn: Director of Public Works 100 Civic Center Drive Newport Beach, CA 92660 TO SUBDIVIDER: NEWPORT CENTER RESIDENCES, LLC Attn: Peter Zak Executive Manager 4901 Birch Street Newport Beach, CA 92660 14. CONSENT When CITY'S consent/approval is required under this Agreement, its consent/ approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transaction or event. 15. MODIFICATION No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 16. CITY APPROVALS The City Manager of the City of Newport Beach is hereby authorized, on behalf of the CITY, to sign all documents necessary and appropriate to carry out and implement this Agreement and to administer the CITY's obligations, responsibilities and duties to be performed under this Agreement. 17. SECTION HEADINGS The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit, describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 18. INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties NEWPORT CENTER RESIDENCES, LLC Page 6 17-87 have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 19. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 20. IMMIGRATION SUBDIVIDER shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 21. LEGAL SERVICES SUBCONTRACTING PROHIBITED SUBDIVIDER and CITY agree that CITY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. SUBDIVIDER understands that pursuant to Newport Beach City Charter Section 602, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not be liable for payment of any legal services expenses incurred by SUBDIVIDER. 22. NO ATTORNEY'S FEES In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 0c�Yo1:iv/\%\l Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement shall so survive. 24. GOVERNING LAW This Agreement shall be governed and construed in accordance with the laws of the State of California. 25. SIGNATORIES Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiations, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The NEWPORT CENTER RESIDENCES, LLC Page 7 parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement. This Agreement contains the entire agreement between the parties respecting the subject matter of this Agreement and supersedes all prior understandings and agreements whether oral or in writing between the parties respecting the subject matter hereof. [SIGNATURES ON NEXT PAGE] NEWPORT CENTER RESIDENCES, LLC Page 8 17-89 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. APPROVED AS TO FORM: CITY ATT RN Y'S OFFICE Date: fT2-2- in AaroMC. Harp City �%orney ATTEST: Date: in Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: Bv: Kevin Muldoon Mayor SUBDIVIDER: NEWPORT CENTER RESIDENCES, LLC, a Delaware limited liability company BY: Newport Center Ventures, LLC, a Delaware limited liability company, Its Member Date- By - Peter D. Zak Manager Date: By: Kory Kramer Manager NEWPORT CENTER RESIDENCES, LLC Page 9 17-90 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of } ss. On 20 before me, Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of } ss. On 20 before me, Notary Public, personally appeared proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) NEWPORT CENTER RESIDENCES, LLC Page 10 17-91 ATTACHMENT F a Al—i—t 1:1'r hssurmia• map SUBDIVISION IMPROVEMENTS PERFORMANCE BOND Bond No. 0811853 Initial Premium $ 7,612 Subject to Renewal M_ KNOW ALL MEN BY THESE PRESENTS: That we, Newport Center Residences, LLC as Principal, and Harco National Insurance Company , a corporation duly authorized under the laws of the State of Illinois to become surety on bonds and undertakings, as Surety, are held and firmly bound unto City of Newport Beach , as Obligee in the full and just sum of Eight hundred ninety five thousand four hundred ninety nine dollars and ninety five cenloollars, ($ 895,499.95 ) lawful money of the United States of America, to be paid to the said Obligee, successors or assigns; for which payment, well and truly to be made, we bind ourselves, our heirs, executors, successors, administrators and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THE OBLIGATION IS SUCH THAT: Whereas, the Principal and Obligee have entered into an agreement whereby principal agrees to install and complete certain designated public improvements, which said agreement, dated , and identified as project THE RITZ-CARLTON RESIDENCES , is hereby referred to and made a part hereof; and Whereas, said Principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement. Now, Therefore, the condition of this obligation is such that if the above bounded Principal. its heirs executors, administrators, successors er assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the Obligee, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As Part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by Obligee in successfully enforcing such obligation, all to be taxed as costs and included in any judgement rendered. The surety herby stipulates and agrees that no charge, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or the specifications. IN WITNESS WHEREOF. the seal and signature of said Principal is hereto affixed and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney -In Fact this 7th day of September , 2022 Principal NEWPORT CENTER RESIDENCES, LLC, a Delaware limited liability co By Its Member. NEWPORT CENTER VENTURES LLC_ a Delaware limited liability company By: Michael Barmettler, Authorized signatory a o atio In om an Y either M. Val tier/ Attorney -in -Fact 17-92 CALIFORNIA NOTARY ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ORANGE On 2 ( -7 , 2022, before me, Hayley Doehler, a Notary Public, personally appcai! 1(��,�[y�,Q, l! MA—f �.( , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that she/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the Foregoing paragraph is true and correct. WITN 1✓SS my h n n 77, ]seal. Sign re (Seal) HAYLEY DOEHLER a " NotaryPublic California = Orange County Commission R 2311489 µy Comm. Expires Nov 4, 2023 17-93 POWER OF ATTORNEY Bond # 0811853 HARCO NATIONAL INSURANCE COMPANY INTERNATIONAL FIDELITY INSURANCE COMPANY Member companies of [AT Insurance Group, Headquartered: 702 Oberlin Road, Raleigh, North Carolina 276DS KNOW ALL MEN BY THESE PRESENTS: That HARCO NATIONAL INSURANCE COMPANY, a corporation organized and existing under the laws of the State of Illinois, and INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the laws of the State of New Jersey, and having their principal offices located respectively in the cities of Rolling Meadows, Illinois and Newark, New Jersey, do hereby constitute and appoint SKYLAR ROMINES, MICHAEL J. PERRY, ROBERT RANALLO, SANDRA L. SIKORA, DANA DOWERS, HEATHER M. VALTIER, RAY CHAO Irvine, CA their true and lawful attomey(s)-in-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract or otherwise, and the execution of such instrument(s) in pursuance of these presents, shall be as binding upon the said HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY, as fully and amply, to all intents and purposes, as If the same had been duly executed and acknowledged by their regularly elected officers at their principal offices. This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By -Laws of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY and is granted under and by authority of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 13th day of December, 2018 and by the Board of Directors of HARCO NATIONAL INSURANCE COMPANY at a meeting held on the 13th day of December, 2018. "RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Senior Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys -in -Fact or agents with power and authority as defined or limited in their respective powers of attomey, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint -control custodians, agents for acceptance of process, and Attomeys-in-fact with authority to execute waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed." IN WITNESS WHEREOF, HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY have each executed and attested these presents on this 31st day of December, 2018 INS(/,q'' �`OtrL1TY SG STATE OF NEW JERSEY STATE OF ILLINOIS r �G)�•oPvaaa �yc+= �y pf�QR9j �9y County of Essex County of Cook o °seal : x : SEAL ; o 1904� e� O's 1984 } :Jbti/ZCitt4�5ra. 1E�`' a�' Kenneth Chapman •''6�'� Executive Vice President, Harco National Insurance Company and International Fidelity Insurance Company On this 31st day of December, 2018 , before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly swom, said he is the therein described and authorized officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies. '10 A r ,f" IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, ���..•••-•:., New Jersey the day and year first above written. `Q . a•� Asa. oP' , � rn ? u,OTARi 'o : �-4 = d"Ut 19 uE�S�� Shireile A.Outley a Notary Public of New Jersey ''•r����.•'` My Commission Expires April 4, 2023 CERTIFICATION I, the undersigned officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By -Laws of said Companies as set forth in said Power of Attorney, with the originals on file in the home office of said companies, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect. IN TESTIMONY WHEREOF, I have hereunto set my hand on this day, May 27, 2022 A01718 Irene Martins, Assistant Secretary 17-94 CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange On 1/7 a before me, Megan Elizabeth Graham , Notary Public, (Here insert name and title of the officer) personally appeared Heather M. Valtier who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. hand and of MEGAN ELIZABETH GRAHAM Notary Public • California Oranga County ConMltlalon 0 2390660 MY Comm- 1 ;ref Jan 13, 2026 (Notary Seal) ADDITIONAL OPTIONAL INFORMATION DESCRIPTION OF THE ATTACHED DOCUMENT (Title or description of attached document) (Title or description of attached document continued) Number of Pages Doctnnent Date (Additional information) CAPACITY CLAIMED BY THE SIGNER ❑ Individual (s) ❑ Corporate Officer (Title) ❑ Partner(s) Attorney -in -Fact ❑ Trustee(s) ❑ Other INSTRUCTIONS FOR COMPLETING THIS FORM Anv acknowledgment completed in California must contain verbiage exactly as appears above in the notary section or a separate acknowledgment form must be properly completed and attached to that document. The only exception is if a document is to be recorded outside of California. In such instances, any alternative acknowledgment verbiage as may be printed on such a document so long as tire verbiage does not require die notary to do something that is illegal for a notary in California (i.e. certifying the authorized capacity of the signer). Please check the document carefully for proper notarial warding and attach this form if required. • State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her [tame as it appears within his or her commission followed by a comma and then your title (notary public). • Print the name(s) of document signel(s) who personally appear at the time or notarization. • Indicate the correct singular or plural forms by crossing off incorrect forms (i.e. helshelg+ey- is lase ) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording. • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges, re -seal if a sufficient area permits, otherwise complete a different acknowledgment form. • Signature of the notary public must match the signature on file with the office of the county clerk. Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. Indicate title or type of attached document, number of pages and date. Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document C 2004-2015 ProLink Signing Service, Inc. - All Rights Reserved im v.ThePrnLink.com - Nationwide Notary Service 17-95 IFIC n Surety �4RCa ® rG�mvee rem�uwrCouvur SUBDIVISION IMPROVEMENTS LABOR AND MATERIAL BOND Bond NO. 0811853 Premium included in Performance Bond KNOW ALL MEN BY THESE PRESENTS: ' That we, Newport Center Residences, LLC as Principal, and Harco National Insurance Company duly authorized under the laws of the State of Illinois to become surety on bonds and undertakings, as Surety, are held and firmly bound unto City of Newport Beach as Obligee in the full and just sum of Eight hundred ninety five thousand four hundred ninety nine dollars and ninety five cents Dollars, ($895,499.955 ) lawful money of the United States of America, for the payment whereof, said Principal and Surety bind themselves, their heirs, executors, successors, administrators and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THE OBLIGATION 15 SUCH THAT , Whereas, the Principal and Obligee have entered into an agreement whereby the Principal agrees to install and complete certain designated public improvements, which agreement, dated , and identified as project THE RITZ-CARLTON RESIDENCES is hereby referred to and made a part hereof and Whereas, under the terms of the agreement, the Principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the Obligee to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California. Now, therefore, the Principal and the undersigned as corporate Surety, are held firmly bound unto the Obligee and all contractors, subcontractors, laborers, materialmen, and other persons employed in the performance of the agreement and referred to in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code in the sum of Eight hundred ninety rive thousand four hundred ninety nine dollars and Dollars ($ 895,499.95 ) f or materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this work or labor, that the surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney' s fees, incurred by county (or city) in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect. The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration, or addition. Sealed with our seals and dated this 7th day of September 12022 NEWPORT CENTER RESIDENCES, LLC, a Delaware limited liability co By Its Member. Harco National Insurance Company NEWPORT CENTER VENTIJREs. LLC, a Delaware limited liability company rinci l By: By: Mi aeI Barmettler, Authorized Signa ry He er M. Valtier Attorney-in-r�:aet 17-96 CALIFORNIA NOTARY ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ORANGE On S . 2022, before me, Hayley Doehler, a Notary Public, personally appeared CVz,4 R& f w I -CS— . who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that she/she/they executed the same in hisiher/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my ha >fticial seal. Si ature (Seal) �• rti HAYLEY DOEHLER Notary Public • California Orange County Commission 9 2311489 •i"Ok My Comm. Expires Nov 4, 2023 17-9 7 POWER OF ATTORNEY Bond# 0811853 HARCO NATIONAL INSURANCE COMPANY INTERNATIONAL FIDELITY INSURANCE COMPANY Member companies of IAT Insurance Group, Headquartered: 702 Oberlin Road, Raleigh, North Carolina 27605 KNOW ALL MEN BY THESE PRESENTS: That HARCO NATIONAL INSURANCE COMPANY, a corporation organized and existing under the laws of the State of Illinois, and INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the laws of the State of New Jersey, and having their principal offices located respectively in the cities of Rolling Meadows, Illinois and Newark, New Jersey, do hereby constitute and appoint SKYLAR ROMINES, MICHAEL J. PERRY, ROBERT RANALLO, SANDRA L. SIKORA, DANA DOWERS, HEATHER M. VALTIER, RAY CHAO Irvine, CA their true and lawful attomey(s)-in-fact to execute, seal and deliver for and on its behalf as surety, arty and all bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract or otherwise, and the execution of such instrument(s) in pursuance of these presents, shall be as binding upon the said HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY, as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by their regularly elected officers at their principal offices. This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By -Laws of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY and is granted under and by authority of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 13th day of December, 2018 and by the Board of Directors of HARCO NATIONAL INSURANCE COMPANY at a meeting held on the 13th day of December, 2018. "RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Senior Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys -in -Fact or agents with power and authority as defined or limited in their respective powers of attomey, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint -control custodians, agents for acceptance of process, and Attorneys -in -fact with authority to execute waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed." IN WITNESS WHEREOF, HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY have each executed and attested these presents on this 31st day of December, 2018 Q�, �hSilq �\O�Ut>rlpso STATE OF NEW JERSEY STATE OF ILLINOIS : 0 .`` kPOitgra�'�' 4pY��9,��y County of Essex County of Cook : z SEAL c SEAL / I$04 n (/// -Orasa r:.JE ;. Kenneth Chapman .. Executive Vice President, Harco National Insurance Company and International Fidelity Insurance Company On this 31st day of December, 2018 , before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said he is the therein described and authorized officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies. "t"Ittst"'�, IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, .40;4E A, oGT : New Jersey the day and year first above written. J"(4 a. soUrv?,. y Shirelle A. Outley a Notary Public of New Jersey F My Commission Expires April 4, 2023 CERTIFICATION I, the undersigned officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By -Laws of said Companies as set forth in said Power of Attorney, with the originals on file in the home office of said companies, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect. IN TESTIMONY WHEREOF, I have hereunto set my hand on this day. May 27. 2022 A01718 Irene Martins, Assistant Secretary 17-98 CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange On 7 0�000� before me, Megan Elizabeth Graham , Notary Public, (Here insert name and title of the officer) personally appeared Heather M. Valtier who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. hand and Signature of Notk Public 611:N EUMOM GRAHAM Notary Public . California orange County OF Comnituton # 2390660 tar Comm. Expires Jan t 3, 2026 (Notary Seal) ADDITIONAL OPTIONAL INFORMATION DESCRIPTION OF THE ATTACHED DOCUMENT (Title or description of attached document) (Title or description of attached document continued) Number of Pages Document Date (Additional information) CAPACITY CLAIMED BY THE SIGNER ❑ Individual (s) ❑ Corporate Officer (Title) ❑ Partner(s) F1 Attorney -in -Fact ❑ Trustee(s) ❑ Other INSTRUCTIONS FOR COMPLETING THIS FORM Anv acknowledgment completed in California must contain verbiage exactly as appears above in the notary section or a separate acknowledgment form must be properly completed and attached to that document. The only exception is if a document is to be recorded outside of California. In such instances, any alternative acknowledgment verbiage as may be printed on such a document so long as the verbiage does not require the notary to do something that is illegal for a notary in California (i.e. certifying the authorized capacity of the signer). Please check the document carefullvfor proper notarial wording and attach this form if required. • State and County information must be the State and County where the document signers) personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization. • Indicate the correct singular or plural forms by crossing off incorrect forms (i.e. lre/sheMiey- is /are ) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording. • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges, re -seal if a sufficient area permits, otherwise complete a different acknowledgment form. • Signature of the notary public must match the signature on file with the office of the county clerk. Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. Indicate title or type of attached document, number of pages and date. Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document C 2004-2015 Prol ink signing Service. Inc. - All Rights Reserved x­w%v.ThcPrnLmk.com - Nationwide Notary Service 17-99 IFIC ---0- Surety4RCQ Bond No. 0811853 -M Premium $ 0.00 SUBDIVISION MAINTENANCE BOND KNOW ALL MEN BY THESE PRESENTS: That we, Newport Center Residences, LLC as Principal, and Harco National Insurance Company a corporation duly organized and by the virtue of the laws of the State of Illinois and authorized to become sole surety on bonds in the State of California , as Surety, are held and firmly bound unto the City of Newport Beach -hereinafter hereinafter called the Obligee, in the just and penal sum of Eighty nine thousand five hundred forty nine and ninety ninecentsDollars ($ 89 549.99 ), lawful money of the United States of America, to be the payment of which well and truly to be made the Principal binds itself, its successors and assigns, and the Surety binds itself, its successors and assigns, jointly and severally, firmly by these presents. WHEREAS, the said Principal hereby guarantees against defective workmanship and material for the following improvements: THE RITZ-CARLTON RESIDENCES PROVIDED, HOWEVER, that this bond is subject to the following conditions and provisions: 1, This bond is for the term of _ the work by the Obligee to expire One year(s) from the date of acceptance of 2. In the event of default by the Principal in the performance of the maintenance during the term of this bond, the Surety shall be liable only for cost of maintenance up to the termination of the term of this bond. 3. No claim, action, suit or proceeding, except as hereinafter set forth, shall be had or maintained against the Surety on this instrument unless same be brought or instituted and process served upon the Surety after the expiration date of the bond. Signed and sealed this 7th day of September , 2022 NEWPORT CENTER RESIDENCES, LLC. a Delaware limited liability co By Its Member: NEWPORT CENTER VENTURES. LLC. a Delaware limited liah+tlty company P ipaI B y: 4_ Michael Barmettler, Authorized Signatory co Nati nal Insurance Company By: H at er M. Valtler 1 Attorney -in -Fact 17-100 CALIFORNIA NOTARY ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ORANGE On -7 , 2022, before me, Hayley Doehler, a Notary Public, personally appeare �(1111C�nC _1 CGS Mk.�'ri who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that she/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand ai official seal. Signa re (Seal) o.. FIAYLEY DOEHLER Notary Public - California e =r Orange County Commission R 2311489 r :,i;,�•�' My Comm. Expires Nov 4, 2023 17-101 Op� �jG9y STATE OF NEW Co my of E sex STATE OF N01$ JERSEY County of Cook c SEAL t $04 � O JET>,� Kenneth Chapman Executive Vice President, Harco National Insurance Company and International Fidelity Insurance Company POWER OF ATTORNEY Band# 0811853-M HARCO NATIONAL INSURANCE COMPANY INTERNATIONAL FIDELITY INSURANCE COMPANY Member companies of IAT Insurance Group, Headquartered: 702 Oberlin Road, Raleigh, North Carolina 27605 KNOW ALL MEN BY THESE PRESENTS: That HARCO NATIONAL INSURANCE COMPANY, a corporation organized and existing under the laws of the State of Illinois, and INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the laws of the State of New Jersey, and having their principal offices located respectively in the cities of Rolling Meadows, Illinois and Newark, New Jersey, do hereby constitute and appoint SKYLAR ROMINES, MICHAEL J. PERRY, ROBERT RANALLO, SANDRA L. SIKORA, DANA DOWERS, HEATHER M. VALTIER, RAY CHAO Irvine, CA their true and lawful attomey(s)-in-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract or otherwise, and the execution of such instrument(s) in pursuance of these presents, shall be as binding upon the said HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY, as fully and amply, to ail intents and purposes, as if the same had been duly executed and acknowledged by their regularly elected officers at their principal offices. This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By -Laws of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY and is granted under and by authority of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 13th day of December, 2018 and by the Board of Directors of HARCO NATIONAL INSURANCE COMPANY at a meeting held on the 13th day of December, 2018. "RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Senior Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attomeys-in-Fact or agents with power and authority as defined or limited in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint -control custodians, agents for acceptance of process, and Attorneys -in -fact with authority to execute waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer, and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed." IN WITNESS WHEREOF, HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY have each executed and attested these presents on this 31st day of December, 2018 SEAL c= 1984 On this 31st day of December, 2018 , before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said he is the therein described and authorized officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies. �"1111ts ,I, IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, <,,.:..-A: .G� ; New Jersey the day and year first above written. $'.a F'R ao •'•. �F ; c° �O'rAgl o'• �•C r� : 50079''... k ` .,� 1V JEFFS Shirelle A.Outley a Notary Public of New Jersey `0111111" My Commission Expires April 4, 2023 CERTIFICATION I, the undersigned officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By -Laws of said Companies as set forth in said Power of Attorney, with the originals on file in the home office of said companies, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect. IN TESTIMONY WHEREOF, I have hereunto set my hand on this day, May 27, 2022 A01718 Irene Martins, Assistant Secretary 17-102 CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Orange On q170�4o�o'Z before me, Megan Elizabeth Graham ,Notary Public, (Here insert name and title of the officer) personally appeared Heather M. Valtier who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. SS rffv hand and o of MEGAN EUZAIErH GRAHAM Notery Public . California ge County Cornet�fon # 2390660 My COMM. F-M. s Ian 13, I025 r (Notary Seal) ADDITIONAL OPTIONAL INFORMATION DESCRIPTION OF THE ATTACHED DOCUMENT A( (Title or description of attached document) (Title or description of attached document continued) Number of Pages Document Date (Additional information) CAPACITY CLAIMED BY THE SIGNER ❑ Individual (s) ❑ Corporate Officer (Title) ❑ Partner(s) E] Attorney -in -Fact ❑ Trustee(s) ❑ Other INSTRUCTIONS FOR COMPLETING THIS FORM Any acknowledgment completed in California must contain verbiage exactly as appears above in the notary section or a separate acknowledgment form must be properly completed and attached to that document. 77re only exception is if a document is to be recorded outside of California In such instances, any alternative acknowledgment verbiage as may be printed on such a document so long as lire verbiage does not require the notary to do something that is illegal for a notary in California (i.e. certifying the authorized capacity of the signer). 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Inc. - All Riglus Resemed mvw.ThcProUnk.com - Nationwide Notary Semce 17-103 '' E W G I 0 F E 2 1 m G TENTATIVE TRACT NO: 19222 ENGINEER: Fuscoe PUBLIC WATER 6" PVC WATER & BACKFLOW 2" IRRIGATION SERVICE W/ BACKFLOW 6" FIRE SERVICE & DCDA FDC PUBLIC SEWER CONSTRUCT 8" VCP SEWER MANHOLE - 5-FT DIAMETER (< 20-FT DEEP) JOIN EXSTING SEWER PUBLIC STREET DRIVEWAY CONSTRUCTION REMOVE - V WIDE AC PAVEMENT ALONG C&G REMOVE - CURB & GUTTER REMOVE - SIDEWALK CONSTRUCT D/W APPROACH, COMPLETE CONSTRUCT SIDEWALK, 4" TRUNCATED DOME PAVER STRIPING, 4" SLD WHT/YLW RELOCATE/INSTALL TEMP SIGN Page 1 CLIENT Newport Center Hotel, LLC CALCULATED BY: MI JN: 1112-008-02 THE RITZ-CARLTON RESIDENCES BOND ESTIMATE 9/1/2022 1 EA @ $15,000.00 $15,000.00 1 EA @ $6,300.00 $6,300.00 2 EA @ $20,000,00 $40,000.00 1 EA @ $7,500.00 $7,500.00 PUBLIC WATER COST ESTIMATE $68,800.00 10 LF @ $150.00 $1,500.00 1 EA @ $15,000.00 $15,000.00 1 EA @ $10,000.00 $10,000.00 PUBLIC SEWER COST ESTIMATE $26,500.00 200 SF @ $3.00 $600.00 200 LF @ $16.00 $3,200.00 1,600 SF @ $8.00 $12,800.00 2,205 SF @ $16.00 $35,280.00 800 SF @ $13.00 $10,400.00 6 EA @ $700.00 $4,200.00 235 LF @ $2.00 $470.00 3 EA @ $150.00 $450.00 16795 Von Korman, Suite 100, Irvine, California 92606 lei 949,474.1960 fax 949.474.5315 www.fuscoe.Caryl 17-104 m T3i f.o .q I H c u w a I R t 0 e PERMANENT BUS STOP REMOVE EXISTING CURB & GUTTER REMOVE EXISTING SIDEWALK REMOVE EXISTING CONCRETE PAVING CONSTRUCT CURB & GUTTER CONSTRUCT SIDEWALK CONSTRUCT CONCRETE PAD RELOCATE BUS STOP SIGN RELOCATE/INSTALL TEMP SIGN TEMPORARY BUS STOP RELOCATE/INSTALL TEMP SIGN TEMPORARY RED CURB STRIPING, 4" SLID WHT/YLW RESTORATION OF STREET PARKING REMOVE/RELOCATE SIGN REMOVE TEMPORARY RED CURB STRIPING, 4" SLD WHT/YLW OFFSITE LANDSCAPE 30' WASHINGTON ROBUSTA PALM TURF AND IRRIGATION MONUMENTATION MONUMENTATION Page 2 132 LF @ $16.00 $2,112.00 1,078 SF @ $8.00 $8,624.00 1,004 SF @ $10.00 $10,040.00 , 129 LF @ $20.00 $2,580.00 1,039 SF @ $13.00 $13,507.00 948 SF @ $20.00 $18,960.00 1 EA @ $150.00 $150.00 1 EA @ $150.00 $150.00 2 EA @ $150.00 $300.00 85 LF @ $2.00 $170.00 40 LF @ $2.00 $80.00 2 EA @ $150.00 $300.00 85 LF @ $2.00 $170.00 100 LF @ $2.00 $200.00 2 EA @ $1,500.00 $3,000.00 600 SF @ $1.50 $900.00 PUBLIC STREET COST ESTIMATE $128,643.00 1• LS @ $18,000.00 $18,000.00 16795 Von Korman, Suite 100, Irvine, California 92606 tel 949.474.1960 fox 949.474.5315 www.fuscoe.com 17-105 Page 3 I N fr I M I E 0 1 N 0 FIRE ACCESS FIRE ACCESS CONSTRUCT CURB CONSTRUCT CURB & GUTTER CONSTRUCT V-GUTTER INSTALL FAUX TURF AT TURNAROUND CONSTRUCT CONCRETE SUBSLAB (FIRE TRUCK RATED) CONSTRUCT SIDEWALK (FIRE TRUCK RATED) CONSTRUCT 6" ACOVER 12" AB RETAINING WALL DRAINAGE SPPWC 303-4 (ONE GRATE) CONSTRUCT 12" PVC CONSTRUCT 8" PVC JUNCTION STRUCTURE/JOIN JS SUMP PUMP IN CATCH BASIN (880 GPM @ 10' LIFT) L9 'L s s Fc D o t m. Cg3a51 rn d * 4rj \�OF CP��F MONUMENTATION ESTIMATE $18,000.00 255 LF @ $18.00 $4,590.00 670 LF @ $20.00 $13,400.00 58 LF @ $15.00 $870.00 8,060 SF @ $12.00 $96.720.00 8,060 SF @ $10.00 $80,600.00 781 SF @ $15.00 $11,715.00 14,685 SF @ $10.50 $154,192.50 2,471 SF @ $60.00 $148,260.00 3 EA @ $5,000.00 $15,000.00 260 LF @ $50.00 $13,000.00 45 LF @ $40.00 $1,800.00 1 EA @ $2,000.00 $2,000.00 3 EA @ $10,000.00 $30,000.00 FIRE ACCESS ESTIMATE $572,147.50 TOTAL $814,090.50 10%CONTINGENCY $81,409.05 TOTAL COST ESTIMATE $895,499.55 16795 Von Korman, Suite 100, Irvine, Colifornia 92606 lel 949.474,1960 fox 949 474.5315 www.fuscoe.com 17-106