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HomeMy WebLinkAbout15 - Reconsideration of the Tennis Club at Newport Beach Project Amendment (PA2021-260)Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report October 25, 2022 Agenda Item No. 15 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: David Lee, Associate Planner, dlee@newportbeachca.gov PHONE: 949-644-3225 TITLE: Ordinance Nos. 2022-19 and 2022-20: Reconsideration of the Tennis Club at Newport Beach Project Amendment (PA2021-260) h\ 3� d:7±Tip 6 At its September 27, 2022, meeting, the City Council conducted a public hearing on the Tennis Club at Newport Beach project and then remanded the project to the Planning Commission for further review by including pickleball courts instead of tennis courts. At the October 11, 2022 meeting, City Council approved a motion to reconsider the project at the October 25, 2022 City Council meeting. For the City Council's reconsideration is the adoption of three resolutions for environmental clearance and planning applications for the project, and the introduction of two ordinances to amend the Newport Beach Country Club Planned Community Development Plan and approval of a second amendment to the approved project's development agreement. If approved, the item will return to the City Council on November 15, 2022, for the second reading and adoption of the two ordinances. The requested local coastal program amendment (Title 21 Amendment) will not become effective until approval by the California Coastal Commission (CCC) and adoption. RECOMMENDATION: a) Conduct a public hearing; b) Adopt Resolution No. 2022-65, A Resolution of the City Council of the City of Newport Beach, California, Adopting an Addendum to Mitigated Negative Declaration No. ND2010-008 for the Tennis Club at Newport Beach Located at 1602 East Coast Highway (PA2021-260); c) Adopt Resolution No. 2022-66, A Resolution of the City Council of the City of Newport Beach, California, Approving a General Plan Amendment, Amendment to Major Site Development Review No. SD2011-002, Amendment to Coastal Development Permit No. CD2017-039, Amendment to Vesting Tentative Tract Map No. NT2005-003, and Amendment to Limited Term Permit No. XP2011-004 for the Tennis Club at Newport Beach Located at 1602 East Coast Highway (PA2021-260); 15-1 Ordinance Nos. 2022-19 and 2022-20: Reconsideration of the Tennis Club at Newport Beach Project Amendment (PA2021-260) October 25, 2022 Page 2 d) Adopt Resolution No. 2022-67, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Submittal of a Local Coastal Program Amendment to the California Coastal Commission to Amend the Newport Beach Country Club Planned Community Development Plan (PC-47) for the Tennis Club Located at 1602 East Coast Highway (PA2021-260); e) Waive full reading, direct the City Clerk to read by title only, and introduce Ordinance No. 2022-19, An Ordinance of the City Council of the City of Newport Beach, California, Approving an Amendment to the Newport Beach Country Club Planned Community Development Plan (PC-47) for the Tennis Club at Newport Beach Located at 1602 East Coast Highway (PA2021-260), and pass on to second reading on November 15, 2022; and f) Waive full reading, direct the City Clerk to read by title only, and introduce Ordinance No. 2022-20, An Ordinance of the City Council of the City of Newport Beach, California, Approving the Second Amendment to the Development Agreement (DA2008-001) for the Tennis Club at Newport Beach Located at 1602 East Coast Highway (PA2021-260), and pass on to second reading on November 15, 2022. DISCUSSION: The recommended actions would approve the applicant's requested amendments that do not include pickleball. Staff has not evaluated the project for pickleball, and parking, traffic and noise are issues that would need to be analyzed as part of the environmental review process. Therefore, pickleball cannot be approved as part of the project and requires an amended project application and further analysis prior to consideration. The September 27, 2022, City Council staff report is attached with a complete summary and analysis of the Proposed Project that does not include pickleball and related entitlement findings (Attachment F). NOTICING: Notice of this hearing was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights -of -way and waterways) including the applicant and posted on the subject property at least 10 days before the scheduled meeting, consistent with the provisions of the Newport Beach Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. ATTACHMENTS: Attachment A —Resolution No. 2022-65 Attachment B —Resolution No. 2022-66 Attachment C — Resolution No. 2022-67 Attachment D —Ordinance No. 2022-19 Attachment E —Ordinance No. 2022-20 Attachment F — City Council Staff Report, Dated September 27, 2022 Attachment G — City Council Minutes, Dated September 27, 2022 Attachment H —Correspondence 15-2 Attachment A Resolution No. 2022-65 15-3 RESOLUTION NO. 2022-65 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADOPTING AN ADDENDUM TO MITIGATED NEGATIVE DECLARATION NO. ND2010-008 FOR THE TENNIS CLUB AT NEWPORT BEACH LOCATED AT 1602 EAST COAST HIGHWAY (PA2021-260) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, in 2012, the City Council approved an application by Golf Realty Fund, Managing Owner ("Applicant") for the reconstruction of the 3,725-square-foot tennis clubhouse, a reduction of tennis courts from 24 to seven courts, construction of a 27-room boutique hotel with 9,700 square feet of ancillary uses, five single-family residential units, and a development agreement for the property ("2012 Entitlements") located at 1602 East Coast Highway, and legally described as Parcels A, B, C, and D of Parcel Map No. 2016- 151 (commonly referred as the "Tennis Club Site" or "Property"); WHEREAS, on November 20, 2018, the Zoning Administrator approved Coastal Development Permit No. CD2017-039, authorizing the redevelopment of the Property consistent with the 2012 Entitlements (2012 Entitlements and Coastal Development Permit No. CD2017-039 are collectively referred to as the "Approved Project"); WHEREAS, the Applicant is requesting an amendment to the Approved Project to allow an increase in the number of future tennis courts from seven to eight, an increase in the number of future hotel rooms from 27 to 41, an increase to the gross floor area of ancillary hotel uses by 4,686 square feet, three attached condominium units and two single- family residences in -lieu of five single-family residences, and an amendment to the 2012 Development Agreement to account for the aforementioned changes to the Approved Project along with extending the term for an additional 10 years ("Project"); 15-4 Resolution No. 2022-65 Page 2 of 8 WHEREAS, the following approvals are requested or required in order to implement the Project: • General Plan Amendment ("GPA") — An amendment to Anomaly No. 46 of Table LU2 of the 2006 Newport Beach General Plan Land Use Element to document the conversion of 17 tennis courts to 27 hotel rooms authorized by City Council Resolution No. 2012-10, and the addition of 14 hotel rooms for a total of 41 rooms and one tennis courts for a total of eight tennis courts; • Local Coastal Program Implementation Plan Amendment ("LCPA") — An amendment to Section 21.26.055(S)(2) (Planned Community Coastal Zoning District Development Standards, Newport Beach Country Club (PC-47, Tennis Club) of the Newport Beach Municipal Code ("NBMC") to modify the permitted uses and development standards allowed on the Property; • Planned Community Development Plan Amendment ("PCDP Amendment") —An amendment to Planned Community Development Plan No. 47 (Newport Beach Country Club Planned Community) to amend land use regulations and development standards on the Property; • Major Site Development Permit Amendment ("SDA") — An amendment to the existing site development review in accordance with PC-47 and Section 20.52.080 (Permit Review Procedures, Site Development Reviews) of the NBMC for the construction of the Project; • Coastal Development Permit Amendment ("CDPA") — A coastal development permit for the demolition of existing structures, further subdivision on the Property, and implementation of the Project; • Vesting Tentative Tract Map Amendment ("VTMA") — An amendment to Vesting Tentative Tract Map No. 15347 pursuant to Title 19 (Subdivisions) of the Newport Beach Municipal Code ("NBMC") for a lot reduction created for the Approved Project and inclusion of the condominium ownership; • Limited Term Permit Amendment ("XP") — A limited term permit to allow temporary use of structures during construction on the Property, pursuant to NBMC Section 20.52.040; 15-5 Resolution No. 2022-65 Page 3 of 8 • Development Agreement Amendment ("DA") — A second amendment to the Development Agreement (DA2008-001), between the Applicant and the City, pursuant to Sections 15.45.020(A)(2)(c) (Buildings and Construction, Development Agreements Required, Development Agreement Required) and 15.45.070 (Buildings and Constructions, Development Agreements, Amend ment/Cancellation) of the NBMC, which would provide vested rights to develop the Project for an additional 10 years and provide negotiated public benefits to the City; and • Addendum to previously adopted Mitigated Negative Declaration No. ND2010- 008 (SCH2O10091052) ("Addendum") — Pursuant to the California Environmental Quality Act ("CEQA"), the Addendum addresses reasonably foreseeable environmental impacts resulting from the Project; WHEREAS, the Property is designated Mixed -Use Horizontal 3/Parks and Recreation (MU-H3/PR) by the City of Newport Beach General Plan and is located within the Newport Beach Country Club Planned Community (PC-47) Zoning District; WHEREAS, the Property is designated Mixed -Use Horizontal/Parks and Recreation (MU-H/PR) by the Coastal Land Use Plan and is located within the Newport Beach Country Club Planned Community (PC-47) Coastal Zone District; WHEREAS, the Planning Commission held a public hearing on September 8, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California, at which time the Planning Commission considered the Project. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; WHEREAS, at the hearing, the Planning Commission adopted Resolution No. PC2022-022 (5 ayes, 1 absent, 1 recusal) recommending approval of the Project to the City Council; 15-6 Resolution No. 2022-65 Page 4 of 8 WHEREAS, the City Council held a public hearing on September 27, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; WHEREAS, at the hearing, the City Council remanded the Project to the Planning Commission on a future date by a majority vote (6 ayes, 1 nays); WHEREAS, at the City Council meeting on October 11, 2022, the City Council adopted a motion for reconsideration of the Project by a majority vote (4 ayes, 3 nays); and WHEREAS, the City Council held a public heading on October 25, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: On March 27, 2012, the Newport Beach City Council approved Mitigated Negative Declaration No. ND2010-008 (SCH 2O10091052) and an Errata to Mitigated Negative Declaration No. ND2010-008 (together referred to as "MND") that addressed the potential environmental effects associated with the Approved Project. The MND was prepared in compliance with the California Environmental Quality Act as set forth in Section 21000 et seq. of the California Public Resources Code, the State CEQA Guidelines set forth in Title 14, Division 6, Chapter 3 of the California Code of Regulations, ("CEQA Guidelines"), and City Council Policy K-3. The MND is attached hereto as Exhibit "A" and incorporated herein by reference. Section 2: Pursuant to Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, when a negative declaration adopted for a project, no subsequent negative declaration 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: 15-7 Resolution No. 2022-65 Page 5 of 8 a. Substantial changes are proposed in the project which will require major revisions of the previous negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; b. Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or c. 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 negative declaration was adopted as complete, shows any of the following: i. The project will have one or more significant effects not discussed in the previous negative declaration; ii. Significant effects previously examined will be substantially more severe than shown in the adopted negative declaration; iii. 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 iv. Mitigation measures or alternatives which are considerably different from those analyzed in the previous negative declaration would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. 15-8 Resolution No. 2022-65 Page 6 of 8 Section 3: Although the Project necessitates an amendment to the General Plan due to the increased number of hotel rooms and tennis courts, there are no proposed changes to the land uses permitted per the General Plan land use designation. Additionally, based on the changes associated with the Project, there are no conditions that would require the preparation of a subsequent or supplemental MND. As a result, an Addendum to the MND was prepared pursuant to Section 15162 (Subsequent EIRs and Negative Declarations) and 15164 (Addendum to an EIR or Negative Declaration) of the CEQA Guidelines. Section 4: The following environmental topics were analyzed for the Project: Aesthetics, Air Quality, Biological Resources, Cultural Resources, Energy, Geology and Soils, Greenhouse Gas Emissions, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Noise, Population and Housing, Public Services, Recreation, Transportation, Utilities and Service Systems, and Wildfire. The Addendum includes analysis of new topics that were not included in the previous MND; specifically, it includes a new energy section and a new wildfire section. These additional analyses are appropriate for inclusion in the Addendum, but do not result in new or increased significant impacts that would require preparation of a subsequent MND pursuant to Section 15162 of the CEQA Guidelines. Section 5: On the basis of the MND and entire environmental review record, the additional tennis court, hotel rooms, ancillary hotel uses, and conversion of three single- family residences to condominium units will not result in any new significant impacts that were not previously analyzed in the MND. The Addendum confirms and provides substantial evidence that the potential impacts associated with this Project would either be the same or less than those described in the MND, or as mitigated by applicable mitigation measures in the MND. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the MND, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, an addendum to the previously adopted MND is the appropriate environmental document for the Project. In taking action to approve any of the requested applications for the Project, the data presented in the MND, as augmented by the Addendum for this Project, are considered as part of the record. 15-9 Resolution No. 2022-65 Page 7 of 8 Section 6: The Addendum to the MND, is hereby adopted by the City Council given its analysis and conclusions. The Addendum to the MND and related referenced documentation, constitute the administrative record upon which this decision was based, are on file with the Planning Division, City Hall, 100 Civic Center Drive, Newport Beach, California. Section 7: The City Council finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger. Section 8: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 9: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 15-10 Resolution No. 2022-65 Page 8 of 8 Section 10: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 25t" day of October, 2022. Kevin Muldoon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaro C. Harp City A tornev Attachment(s): Exhibit A: Mitigated Negative Declaration No. ND2010-008 and an Errata to Mitigated Negative Declaration No. ND2010-008 (MND) 15-11 Exhibit "A" Mitigated Negative Declaration No. ND2010-008 and an Errata to Mitigated Negative Declaration No. ND2010-008 (MND) Available separately due to bulk at: https://www.newportbeachca.gov/government/departments/community- development/planning-division/projects-environmental-document-download- aaae/environmental-document-download-Daae-arch 15-12 NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 1 NNUMUMNOWNAwn • 0 161 q0 I FAI OL•.:: 1. Project Title: Newport Beach Country Club Planned Community (PA2005-140) 2. Lead Agency Name and Address: City of Newport Beach Planning Department 3300 Newport Boulevard, Newport Beach, CA 92658-8915 Contact Person and Phone Number: Rosalinh Ung, Planning Department Rung@newportbeachca.gov (949) 644-3208 4. Project Location: 1600-1602 East Coast Highway Newport Beach, CA 5. Project Sponsor's Name and Address: Byron de Arakal 180 Newport Center Drive, Suite 219 Newport Beach, CA 92660 6. General Plan Designation: MU-H3 (Mixed Use Horizontal) PR (Parks and Recreation) 7. Zoning: Newport Beach Country Club Planned Community 8. Introduction: The subject property is currently occupied by the Newport Beach Country Club (the "Golf Club") and The Tennis Club formerly known as the Balboa Bay Racquet Club (the "Tennis Club"), which are located within the Newport Beach Country Club Planned Community (PC) District that was adopted in 1997 by Ordinance No. 97-10. The Tennis Club and the Golf Club facilities total approximately 145 acres. The adopted Land Use Element designates the Tennis Club site as Mixed Use — Horizontal 3 (MU-1­13). The Golf Club is designated as Park and Recreation (PR). The applicant is proposing a Planned Community Text adoption, Transfer of Development Rights, Vesting Tentative Tract Map, Coastal Development Permit, and Development Agreement to implement the proposed project. A PC District Text was not adopted when the PC District zoning was adopted in 1997. The proposed Planned Community Text is intended to provide for the classification and development of parcels of land as a coordinated, cohesive, comprehensive large-scale planning project as set forth in Chapter 20.35.010 of the Newport Beach Zoning Code. The proposed Planned Community Text allows for limited mixed uses, including the private Tennis Club, the private Golf Clubhouse, "The Bungalows" (a small boutique hotel consisting of twenty- seven short-term visitor -serving units, a spa/fitness area, and concierge and guest meeting facilities), and the Villas consist of five single -unit, semi -custom residential dwelling units. 9. Project Description: Project Location The subject property (refer to the Vicinity Map), encompasses approximately 145 acres adjacent to Fashion Island in the City of Newport Beach. The site is generally bordered by East Coast Highway on the south, Jamboree Road on the West, Santa Barbara Avenue and Newport Center on the north, and Corporate Plaza West on the east and south. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 2 Existing Improvements The Tennis Club presently consists of 24 tennis courts, a 3,725 square foot Tennis Clubhouse, and 125 surface parking spaces. The Golf Club presently consists of a 6,587-yard, championship 18-hole golf course with returning nines and related practice and golf club facilities, a 23,460 square foot Golf Clubhouse, golf cart storage barn (6,050 square feet), a greens keeper building (2,010 square feet), men's and women's restroom facilities (630 square feet), a 180-square foot snack bar, and 140-square foot starter shack. The Golf Clubhouse parking lot is located directly off East Coast Highway and includes 420 surface parking spaces. Exhibit 1 illustrates the existing improvements. Proposed Improvements • The demolition of the existing Tennis Clubhouse and Golf Clubhouse; • The construction of new Tennis Clubhouse and Golf Clubhouse; • The construction of The Bungalows (a small boutique hotel consisting of twenty-seven short-term visitor -serving units, a spa/fitness area, and concierge and guest meeting facilities)'; and • The construction of The Villas (five single-family residential dwelling units). Table 1 provides a summary of the proposed project. 'All references to the "Bungalows" mean the small boutique hotel consisting of twenty-seven short-term visitor - serving rental units, a spa/fitness area, and concierge and guest meeting facilities. a CONDOMINIUM OFFICES , ggqNL/vF N �CgTCF Fggq'� a \ BANK&OFFICES ,...., ' TENNIS CLUB -3,725 SFs OFFICES GOLF CLUBHOUSE & ACCESSORY BUILDINGS =32.470 SF s G�fFYS1EElEII � RETAIL NURSERY OFFICES IACUIC COAST HIGHWAY wECEs Exhibit 1 EXISTING USES AERIAL MAP NBCC Planned Community s t e a r a s EXHIBIT ARCHITECTURE 500 Broadway Laguna Beach,CA 92651 949,767160 FAX 9493761560 1 OF 1 NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 4 Existing Project Proposed Project Golf Clubhouse Component Floor Area (sq. ft.)pGreens mponent Floor Area (sq. ft.) 15 Floor Clubhouse 20,702 Clubhouse 18,069 "Floor Clubhouse 2,758 16,931 Total 23,460 35,000 Cart Barn 6,050 ra e 5,834 Snack Bar 180 ar 180 Restroom Facilities 630 Facilities 630 Greens Keeper 2,010 Kee er 2,010Starter Shack 140 hack 140 Total 32,470 Total 43,794 Tennis Clubhouse & Courts Component Floor Area (sq. ft.) Component Floor Area (sq. ft.) 15 Floor Clubhouse 3,725 1S Floor Clubhouse 3,725 24 Courts 7 Courts Total 3,725 Total 3,725 Bungalows Component Floor Area (sq. ft.) Component Floor Area (sq. ft.) 13 Golf Bungalows N/A 14 Tennis Bungalows N/A Spa 7,490 Concierge & Guest Meeting Facility 2,170 Total 9,6662 Villas Component Floor Area (sq. ft.) Component Floor Areas . ft. 5 SFR N/A Total NIA Building Heights Component Height (ft.) Component Height (ft.) Golf Clubhouse 23'-9" Golf Clubhouse 50 Tennis Clubhouse Tennis Clubhouse 30 Villas 35 Bungalows 31 Cart Barn 12'-0" Greens Keeper 18'-0" Greens Keeper 18'-0 'Exempt from General Plan Development Limit —Ancillary to Golf Course 2Exempt from General Plan Development Limit — Ancillary to Hotel use NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 5 Each of the project components proposed for the Property is illustrated on Exhibit 2 and described below. Tennis Clubhouse and Center Court The Tennis Club portion of the project proposes seven tennis courts, six of which are existing, plus a new stadium center court and construction of a new Tennis Clubhouse (3,725 square feet). The existing Tennis Clubhouse is approximately 3,725 square feet with 24 tennis courts. Thirty- eight (38) parking spaces are provided for the Tennis Clubhouse. The Bungalows As noted above, the proposed Bungalows consist of a small boutique hotel comprised of twenty- seven (27) short-term visitor -serving units, a Concierge & Guest Meeting Facility, and The Bungalow Spa. A total of 50 parking spaces is proposed for the Bungalows. The Villas Five (5) single-family residential dwelling units will be constructed adjacent to the Tennis Club and 91h green of the golf course. These dwelling units will range in size from 2,201 square feet (Plan A) to 5,297 square feet (Plan D). Twenty (20) parking spaces are proposed to accommodate The Villas. Golf Club Parking Lot and Private Hand Car Wash The Golf Club Parking Lot and Entry will be redesigned to provide 300 on -site parking spaces. In addition, an existing offsite Parking Agreement will continue to provide 554 parking spaces to supplement the onsite Golf Club parking. The access easement that exists along the frontage of PCH will be eliminated. In addition, a private hand car wash is also proposed within the parking lot in the vicinity of Country Club Drive (refer to Exhibit 3). The area identified to accommodate this project feature encompasses approximately 240 square feet (i.e., 12 feet wide and 20 feet long). Use of the private hand car wash is limited to tennis and golf club members only. Golf Clubhouse The existing Golf Clubhouse will be demolished and a new Golf Clubhouse encompassing 40,834 square feet, including banquet/event facilities that can accommodate dining and special events (e.g., weddings, banquets, etc.), will be constructed in its place. This clubhouse will include both men's and women's locker rooms. THE VILLAS A i ra THE GOLF CLUB 1 rr J"Flu THE BUNGALOWS i 4 1 L. L.-_. P AC�F IC COAST """N'A' Exhibit 2 MASTER PLAN • THE TENNIS CLUB 1 new stadium court Tennis Clubhouse • THE VILLAS 5 single family homes • THE BUNGALOWS 27 guest rental units • THE GOLF CLUB NBCC Planned Community EXHIBIT s t e a r n s ARCHITECTURE 500 Broadway Laguna hach,CA 92651 949 376 7160 FAX 949 3761560 1 OF I COUNTRY catch basin in curb 6" wide X 2" high concrete berm' peaestal switch & timer y zp, sandblasted t g ti concrete paving bronze linear slot drain connected to sewer 6" curb transitionmg to 3" curb NEWPORT BEACH COUNTRY CLUB PRIVATE HAND CAR WASH AREA I ' I I bronze linear slo drain connected to storm drain Ct jJ8 DRIVE is NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 8 Project Phasing — Tennis Club The Tennis Club component of the proposed project will be implemented in four (4) construction and demolition phases that are anticipated to occur over a period of approximately 38 months. The demolition and construction activities of the Tennis Club component of the proposed project are identified and described in Table 2. Tennis Club Development Phasing Duration Phase Description (Months) 1 Construct Temporary Modular Clubhouse 1 Demolition 1 Construct The Villas (3), Private Street, New Tennis 14 2 Clubhouse and Parking Lots Demolition 1 Construct Center Court and Bungalow Pool 3 3 Demolition 1 4 Construct Golf and Tennis Bungalows and Remaining 15 Villas Total Schedule. 36 'Anticipated Start date is September 2011. SOURCE: The Templeton Planning Group (July 2010) The phasing plans for the Tennis club are related facilities are illustrated in Exhibit 4 through 10 �' � ssimxG �. -.-= cosFcwxouss \�j cu*s7oewe I T\ 1 �� mrnlilTilbl ZZ tn- nnTrmp:rtl PACIFIC LOW NIGxW AY — -----1--` Exhibit 4 TENNIS CLUB PHASEI- CONSTRUCTION • Temporary Modular Tennis Clubhouse (48'x6O') LEGEND ❑ new building ❑ new sitework ❑ existing structures (on property) NBCC Planned Community s t e a r n s ARCHITECTURE 500 B—dmy Laguna B—h,CA 92651 949 376 7160 - FAX 949 376 1560 JuN 10, xcs 1 of 7 hibit 5 TENNIS CLUB PHASE I - DEMOLITION * Tennis Club buildings * 6 tennis courts Portion of Tennis Club parking lot omit 4L LEGEND Existing area to be demolished Existing structures (on property) c� 1w COAST"IOKWA —j NBCC L P k anned Community s t e a r n s 2 of 'PA ARCHITECTURE 500 B-d..y Laguna B—KCA 9256651 9493767160 FAX 949 3 76 10 THE VILLAS \ pie r4E \ , C H E' ✓� OOIf CLU�IOUSF rE�E 1WnaCt6f .4�VEOYFAREp4 �\ LCAIIt Ei0114GE r —' .lam �`\ � l �tj((liflfTT« �--'__. c-=' - J f __ '-r- �--r►c—et�io c?�sF x�swwer _ - y— --_� _ _ — Exhibit 6 TENNIS CLUB PHASEII- CONSTRUCTION • The Villas -3 single family homes • private street from County Club Drive to The Villas • new Tennis Clubhouse & parking lots LEGEND ■ new building ❑ new sitework existing structures (on property) NBCC Planned Community S t e a r n s 3of7 ARCHITECTURE 500 Br—Wd y Laguna B—h,CA 92651 949 376 7160 FAX 949 376 1560 ,uN M M P d1FEM EJIIo GULi%T.KOUSE OMiMMOE / YY ` _ titlt�T f1111Rt1T1� f — 1 'a CLU HOUSE �y 1 nffa �f 11.11tf 1llI-9111 P►Clip Exhibit 7 TENNIS CLUB PHASE II - DEMOLITION • 1 tennis court • Remaining portion of previous Tennis Club parking lot *Temporary modular Tennis Clubhouse LEGEND [; Existing area to be demolished ❑ Existing structures Ion property) NBCC Planned Community s t e a r n s ARCHITECTURE 500 Broadway Laguna Beach,CA 92651 949 376 7160 FAX 949 376 1550 July 10, 2M n� THE VILLAS �F 4 • j \ A�� TENNIS mnw ` a / �' aa.auxou.c 7 4 / CLUBHOUSE IIII --� _ - Rat, . � �-- --—PwtIP IC COASt NrGNYV AY - f Exhibit 8 TENNIS CLUB PHASE III - CONSTRUCTION • Center Court • Bungalow Pool LEGEND ❑ new building new sitework `I existing structures (on property) NBCC Planned Community s t e a r a s 5of7 ARCHITECTURE 500 Broadway Laguna 8e h.CA 92651 9493767160 FAX 9493761SW J0to. 20 THEVII;IKAS; . P7 r�vr.Eoamx rTxieAxu wnTm �E.� FflAixcWALL MITI. egl�cwe..M CART STOWS 7 / 1 = / _ \ � IIIONwAr ___ - - . i ..r• � � xenn Exhibit 9 TENNIS CLUB%NS PHASE III - DEMOLITION • 3 tennis courts LEGEND Existing area to be demolished ❑ Existing structures (on property) NBCC Planned Community s t e a r n s ARCHITECTURE 500 emadwap Laguna 9gach,CA 92651 9493767160 FAX 949 376 1560 J.N 10. 2000 �. �, o cAAtsTOAAeE GOLF \,BUNGALOWS _--------- TE'iNIS `Y Ot ao ;ps Exhibit 10 TENNIS CLUB PHASE IV - CONSTRUCTION • new Golf Bungalows 13 botique hotel units • new Tennis Bungalows 14 botique hotel units • The Villas 2 single family homes • Court 7 LEGEND ❑ new building ❑ new sitework ❑ existing structures (on property) NBCC Planned Community s t s r a s 7of7 ARCHeITECTURE 500 Broadway Laguna Be h,. 92651 949 376 7160 FAX 949 376 1560 J.N 10. M NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 16 Project Phasing — Golf Clubhouse The Golf Clubhouse component of the proposed project will be implemented in four (4) discrete development phases. Although a definitive schedule has not been developed, demolition and construction of this component are anticipated to occur over a period of approximately 34 months, as described in Table 3. Table 3 Golf Clubhouse Development Phasing Duration Phase Description (Months 1 Demolition 1 Construct East Side Parkin Lot and PCH Entr 4 2 Demolition 1 Construct West Side Parking Lot and Temporary Golf Club 6 Demolition 2 3 Construct New Golf Clubhouse 14 Demolition 2 4 Construct Greenskeeper Area and Golf Porte Cache and Parkin 4 Total +heduie 34 'Start date to determined. 2Includes car wash. SOURCE: The Templeton Planning Group (July 2010) The phasing plans for the Golf club are related facilities are illustrated in Exhibit 11 through 18. 71 THEYI4�4S� calm � r , N1 eaFa@@xowE @ �i N ; CCU HOUSE I Gilts .. VA E �� NUALUI I i I� ice @NW AY _ rot ,jam —.,. Exhibit 11 GOLF CLUB PHASE I - DEMOLITION • East side of existing Golf Clubhouse parking lot • Entry drive from PCH LEGEND Existing area to be demolished ❑ Existing structures Ion property) NBCC Planned Community S t e a r n s 1of8 ARCHITECTURE 500 Broadway Laguna Onch,CA 92651 949 376 7160 FAX 949 376 1560 — Exhibit 12 GOLF CLUB PHASE I - CONSTRUCTION - East side of Golf Clubhouse parking lot, restripe parking area -X* at pone cochere .11 Entry drive from PCH THE V0,4Ai A A 71 LEGEND E] new building 110E F1 new sitework A Ej existing structures (an property) 11TIMIM11 ------ ATENNIS' � IR (VBUYGALOVVTTJII7 Itu Z� Lo 33 IUM11111f XMIL RIT11TIN8 QQ 'Acific c0A NBCC ------ 01 Planned Community s t e a r n s ARCHITECTUREssr 500 Broadway Laguna B �&.CA 92551 949 37660 FAN49 3761560 0 ly to THE VI _ 3f A ! ' F'Cl IMUS GOLF F q �_Ta( J CMT CTOFADF/ \ �j�� \ 'rrrpppp��^u' \ �� �� / �, " fIZTfICCtIIDI[I)) (<� •�� ��—,�, 1 � i�. ' � illlLL111TLQJl �IIIIj� o i rIIiTrlltml mJJJ I. I z �ntn1U 7, i =xhibit 13 GOLF CLUB?LANS PHASE II - DEMOLITION • West side of Golf Clubhouse parking lot LEGEND Existing area to be demolished ❑ Existing structures (on property) NBCC Planned Community s t e a m s 3of6 ARCHITECTURE Soo Broadway Laguna BIaoh,CA 92651 949 376 7160 FAX 949 376 1560 �Y 'q''r it�� r•,., ,� .., RA � . ✓. i THE VII;. / r; �. \�- �•i <1) Ern 1`I�.. /�+j, Z... �J fit NEFN 7 Exlsnwa , � o � \ "( �� �I % r h.` TENNIS \ !� BO cw•xou�E C HOUSE xEH _ CMT LTOIIIWE - ! TENIS ®0 ony U�T171'iCIJ�7.L iALOW j'. 1/ /rI{rT CC[IDLCfC1T1Ii1� �lIllj!ILlTIll Q� a �) `( �r)LrrL OI �U� ! !'r,. ,: L Ub�r�\!O` .�lj�,..,• r ;:.. 4. _ w� fi 14n( . \S�fi1lZI]1 CP.TtLrLII. 711(1) 1 tE1111ffrIlll((1�11� _—�._ - W1TIIIli/ -- nrr �� tiMmrrllTn '—�� Zl11 '--1`� ------ 'r►clrlc cu�sr elaBw 4r '�(r.I11111111I11rt! — `— Exhibit 14 GOLF CLUB PHASEII- CONSTRUCTION • West side of Golf Club parking lot • Temporary Golf Clubhouse LEGEND ❑ new building ❑ new sitework ❑ existing structures (on property) NBCC Planned Community S t e a r n s ARCHITECTURE 500 Broadway Laguna Beach, CA 92651 949 376 7160 FAX 949 376 1560 December IC, lece kr Ta IyJ.f IS 411 g ` f p w, THE VIIS: TENNIS co�uii Duff /•'f \ �� ) v r� -. CLUBHOUSES, r�+FFn"/ CMTiTOM6E OOV CIU �Y U E{1 �TT��{ GOLF .. lti m lLLLlL1 —�1 "BUNGALOWS TENNIS lt►I17f[ NGALOW MIT] SIll1TIlA IIllLC[LII[I �C11 J���1IIIItlTITI illlln[tTll� ,; nt� �olll I❑UUTIIITfIJII UT tf,ILL =II1r Q-DI _ -- --- -- - -lplrrrtrrr— co�sr xrexw�r — 's.J..�'=— - - —. Exhibit 15 GOLF CLUB PHASE III - DEMOLITION • Golf Clubhouse LEGEND Existing area to be demolished ❑ Existing structures (on property) NBCC Planned Community S t e a r n s 5of ARCHITECTURE 500 Broa Y L.9— BeadtCA 92651 949 376 7160 FAX 949 3761560 Exhibit 16 GOLF CLUB PHASE III - CONSTRUCTION • Golf Clubhouse THE VILLAS LEGEND IL® new building ❑ new sitework GOLF CLUBHOUSE ❑existing structures (on property) ti t • \ c C ,v c ur cr0•Aae GOLF el O GOLF rmm17 BUNGALOWS �� = A t9 TENNIS TITIIITIIT1IlTi) n111n *--N AI cwe vmv • V,t. NGALO '�I\TIIlYII �i 1 ,�,t� � r�.e�� ',�� 11L1]SiU [ill'fiilTrttl) 1 II[LIIf � L - - %` ��� �TSS11Tli� ��� ���� • ' ' �%'�1Cllltlll— __-- � I l' /(`y1T11Tu II11IllTI Jul. — I11TI1TTIIT h✓NEICC �� ` ' li1TT111fTi11 / [tliltin - - - e Planned Community AL S t e a r n s 6 of 6 1 ARCHITECTURE 500 Bm cKvq Laguna Bead1,CA 92651 949 3767160 FAX 949 3 76 1560 Uec.mber 10,m Exhibit 17 GOLF CLUB PHASE IV - DEMOLITION • Portion of Greenskeeper Area -Temporary modular Golf Clubhouse ,. • Northern portion of Golf Clubhouse >r '� � -,� ,�j .�• „�" � Parking lot 1 c Ewe ;, ve IL THE VILLAS GOLF CLUBHOUSE "` ; ` 1 • ® LEGEND I ,��• / Existing area to be demolished El Existing structures Ion property) V \\ y �r r — - I ttrro(Fi i:� A • � ( i lv Y mt�L�OM�OE�] OOIECW O ~ GOLF - �� 1�_--� � � Y u BUNGAL WS nlll� �~ TENNIS N,,; = tlrrarnf�til°b .r ,oYc' �ff771+. y NGALOW i mm�tm 1n�F Ttmrrnnrrr) NLs -1t TTTfflllill),� � ^`L11S II]lII[(1Tf'(/11ZpLLS xst 1116 �Kw V1TnTnIjM«I __— ' ttiu.tAlll-Iltt4ulij — =-_-_ --- — NBCC — a ed Community Wd- S t e a r n s 7 of 8 ARCHITECTURE 9493767160 Lag —FAX 949 376 92651 1560 1, D—W IL, EW wFp 1 61AN a GOLF CLUBHOUSE,,", � l 1 �,�1 44FFV5[FFFFF i �`\" (I(ffL❑�[fi� U � 1r11rrilrl U11([�j�j� f`\t1TTTTTi}iiu1fTT(I11iTiT(il. _� — �iTtTr—�— — Exhibit 18 GOLF CLUB PHASE IV - CONSTRUCTION • Portion of Greenskeeper Area • golf porte cochere & parking LEGEND ❑ new building ❑ new sitework ❑ existing structures Ion property) NBCC Planned Community s t e a r n s 8of8 ARCHITECTURE 500 Broadway Laguna Beach, CA 92651 949 376 7160 FAX 949 376 1560 NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 25 Discretionary Approvals Implementation of the proposed project will require approval of the following discretionary approvals by the City of Newport Beach: • Planned Community Text Adoption • Transfer of Development Rights • Approval -in -Concept for Coastal Development Permit • Vesting Tentative Tract Map (Tennis Component) • Development Agreement • Temporary Use Permit 10. Surrounding Land Uses and Setting: East Coast Highway abuts the site along a portion of the southern property boundary. In addition, the Armstrong Garden Center and residential homes are also located along the southern property boundary. Residential development west of Granville Drive and office buildings are located east and southeast of the site, respectively. The Marriott Hotel is also located east of the golf course. Jamboree Road and residential development are located along the western property limits. The Newport Beach Chamber of Commerce, Santa Barbara Drive, residential development and the Newport Beach Fire Department are located to the north. LOCATION GENERAL PLAN ZONING CURRENT USE NB Country Club, including golf ON -SITE PR and MU-H3 PC-47 course, clubhouse and tennis facilities NORTH PF, OS and RM APF, GEIF Newport Beach Chamber of Commerce, Jamboree Road, Santa Barbara Drive, residential development and Newport Beach Fire Department Armstrong Garden Center, SOUTH RS-D and PR PC-30, R-1 residential, office development and East Coast Hi hwa Marriott Hotel, office EAST CO-G, RM, CV, CO-R PC-40, RMD, APF, PC- development, and residential 54 develo ment WEST �=S,, CV, and RM PC-21, PC-41 Residential development and Jamboree Road 11. Other public agencies whose approval is required: California Coastal Commission (CDP) California Regional Water Quality Control Board (Section 401 Permit) NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 27 GENERAL PLAN ROW_ _f RS-D RMi 8 DU °q luiLu _ t,Q =„49 °L 48 40 245 DU ,. 41 MU-H3 42 46 M U-H CO-G 45 �Z Z 35 72: v 36 h 1L 4° 34 CO-R 8ft -k PC-41 -AX S A PC-21 RSC co 0 PC-39 -v PC-30 �0IVE rve- RMC z PC-47 NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 28 ZONING PC-19 S qL m N TE APE 1p R, � E Ir � Z I, :C -54 PC-23 MF ROW 10 0 PC-40 b 64-8 R-1 ft NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 29 The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist on the following pages. ❑ Aesthetics ❑ Agricultural Resources ❑ Air Quality ❑ Biological Resources ❑ Cultural Resources ❑ Geology & Soils ❑ Greenhouse Gas ❑ Hazards & Hazardous Materials ❑ Land Use & Planning ❑ Hydrology & Water Quality ❑ Mineral Resources ❑ Noise ❑ Population & Housing DETERMINATION On the basis of this initial evaluation: ❑ Public Services ❑ Recreation ❑ Transportation/Traffic ❑ Utilities & Service Systems ❑ Mandatory Findings of Significance I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. ❑ I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. Q I find that the proposed project MAY have a significant effect on the environment, and ENVIRONMENTAL IMPACT REPORT is required. ❑ I find that the proposed project MAY have a significant effect(s) on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets, if the effect is a "potentially significant impact" or "potentially significant unless mitigated." An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. ❑ I find that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards and (b) have been avoided or mitigated pursuant to that earlier EIR, including revisions or mitigation measures that are imposed upon the proposed project, nothi er is r fired. ❑ R16�o S bm ted by: Rosalinh Ung, Ass ciat Planner Date lanning Depart e 7: es•116 1 Prepared by: Keeton K. Kreitzer, Consult t Date Keeton Kreitzer Consultina NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 30 .0. Potentially Less Than Less than No Significant Significant With Significant Impact Impact Mitigation Impact Incorporated I. AESTHETICS. Would the project: a) Have a substantial adverse effect on a scenic vista? ❑ ❑ ® ❑ b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within ❑ ❑ 2 ❑ a state scenic highway? c) Substantially degrade the existing visual character or quality of ❑ ❑ Q ❑ the site and its surroundings? d) Create a new source of substantial light or glare which would ❑ ❑ 0 adversely affect day or nighttime views in the area? 111. AGRICULTURE AND FOREST RESOURCES. Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring ❑ ❑ ❑ Program of the California Resources Agency, to non- agricultural use? b) Conflict with existing zoning for agricultural use, or a Williamson ❑ ❑ ❑ El Act contract? c) Conflict with existing zoning for agricultural use, or cause the rezoning of, forest land (as defined in Public Resources Code Section 12220(g)), timberland (as defined by Public Resources ❑ ❑ ❑ Code Section 4526), or timberland zoned Timberland Production (as defined by Government Code Section 51104(g))? d) Result in the loss of forest land or conversion of forest land to non -forest use)? ❑ ❑ ❑ LQ e) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, ❑ ❑ ❑ Q to non-agricultural use or conversion of forest land to non -forest use? III. AIR QUALITY. Would the project: a) Conflict with or obstruct implementation of the applicable air ® ❑ Q ❑ quality Ian? NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 31 Potentially Less Than Less than No Significant Significant With Significant Impact Impact Mitigation Impact Incorporated b) Violate any air quality standard or contribute to an existing or ❑ ❑ ® ❑ projected air quality violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non -attainment under an applicable federal or state ambient air quality ❑ ❑ ® ❑ standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant ❑ ❑ 0 ❑ concentrations? e) Create objectionable odors affecting a substantial number of ❑ ❑ ❑ Q people? IV. BIOLOGICAL RESOURCES. Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, ❑ ❑ ❑ I� policies, or regulations or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional ❑ ❑ ❑ plans, policies, regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but ❑ ❑ ❑ Q not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native ❑ ❑ ❑ resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ❑ ❑ ❑ ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved ❑ ❑ ❑ 2 local, regional, or state habitat conservation plan? V. CULTURAL RESOURCES. Would the project: a) Cause a substantial adverse change in the significance of a ❑ ❑ ❑ historical resource as defined in 15064.5? NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 32 Potentially Less Than Less than No Significant Significant With Significant Impact Impact Mitigation Impact Incorporated b) Cause a substantial adverse change in the significance of an ❑ ® ® ❑ archaeological resource pursuant to §15064.5? C) Directly or indirectly destroy a unique paleontological resource ® ® Q or site or unique geologic feature? d) Disturb any human remains, including those interred outside of ❑ ❑ ❑ Q formal cemeteries? VI. GEOLOGY AND SOILS. Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Strong seismic ground shaking? iii) Seismic -related ground failure, including liquefaction? iv) Landslides? b) Result in substantial soil erosion or the loss of topsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project and potentially result in on- or off -site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18- 1-B of the Uniform Building Code (1994), creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? ❑ ❑ Q ❑ ❑ ❑ Q ❑ ❑ ❑ ❑ Q ❑ ❑ ❑ Q ❑ Q ❑ ❑ ❑ Q ❑ ❑ ❑ Q ❑ ❑ ❑ ❑ ❑ Q VII. GREENHOUSE GAS EMISSIONS. Would the project: a) Generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the ❑ ❑ Q ❑ environment? b) Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of greenhouse gases? ❑ ❑ Q ❑ NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 33 VIII. HAZARDS AND HAZARDOUS MATERIALS. Would the project: a) Create a significant hazard to the public or the environment through routine transport, use, or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one -quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites which complied pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e) For a project within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? IX. HYDROLOGY AND WATER QUALITY. Would the project: a) Violate any water quality standards or waste discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? Potentially Less Than Less than No Significant Significant With Significant Impact Impact Mitigation Impact Incorporated ❑ Q ❑ ❑ ❑ ❑ Q ❑ ❑ ❑ Q ❑ ❑ ❑ ❑ Q ❑ ❑ ❑ Q ❑ ❑ ❑ Q ❑ ❑ Q ❑ ❑ ❑ ❑ Q ❑ ❑ Q ❑ ❑ ❑ ❑ Q NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 34 c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off -site? d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of a course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on or off -site? e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? f) Otherwise substantially degrade water quality? g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h) Place within a 100-year flood hazard area structures which would impede or redirect flood flows? i) Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? j) Inundation by seiche, tsunami, or mudflow? k) Result in significant alteration of receiving water quality during or following construction? 1) Result in a potential for discharge of stormwater pollutants from areas of material storage, vehicle or equipment fueling, vehicle or equipment maintenance (including washing), waste handling, hazardous materials handling or storage, delivery areas, loading docks or other outdoor work areas? m) Result in the potential for discharge of stormwater to affect the beneficial uses of the receiving waters? n) Create the potential for significant changes in the flow velocity or volume of stormwater runoff to cause environmental harm? o) Create significant increases in erosion of the project site or surrounding areas? X. LAND USE AND PLANNING. Would the proposal: a) Physically divide an established community? Potentially Less Than Less than No Significant Significant With Significant Impact Impact Mitigation Impact Incorporated ❑ ❑ Q ❑ ❑ ❑ 2 ❑ ❑ ❑ Q ❑ ❑ ❑ 2 ❑ ❑ ❑ ❑ 2 ❑ ❑ ❑ Q ❑ ❑ ❑ 2 ❑ ❑ 21 ❑ ❑ ❑ ® ❑ ❑ ❑ P ❑ ❑ ❑ 0 ❑ ❑ ❑ Q ❑ ❑ ❑ Q ❑ ❑ ❑ ❑ NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 35 Potentially Less Than Less than No Significant Significant With Significant Impact Impact Mitigation Impact Incorporated b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, ❑ ❑ Q ❑ or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation plan or natural ❑ ❑ ❑ Q community conservation plan? XI. MINERAL RESOURCES. Would the project: a) Result in the loss of availability of a known mineral resource that ❑ ❑ ® Q would be of value to the region and the residents of the state? b) Result in the loss of availability of a locally -important mineral resource recovery site delineated on a local general plan, ❑ ❑ ❑ Q specific plan, or other land use plan? XII. NOISE. Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ❑ ❑ Q ❑ ordinance, or applicable standards of other agencies? b) Exposure of persons to or generation of excessive ground ❑ ❑ Q ❑ borne vibration or ground borne noise levels? c) A substantial permanent increase in ambient noise levels in the ❑ ❑ Q ❑ project vicinity above levels existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the ❑ Q ❑ ❑ project? e) For a project located within an airport land use or, where such a plan has not been adopted, within two miles of a public airport ® ❑ ❑ Q or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to ❑ ❑ ❑ Q excessive noise levels? XIII. POPULATION AND HOUSING. Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or ❑ ❑ Q ❑ indirectly (for example, through extension of roads or other infrastructure)? NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 36 Potentially Less Than Less than No Significant Significant With Significant Impact Impact Mitigation Impact Incorporated b) Displace substantial numbers of existing housing, necessitating ❑ the construction of replacement housing elsewhere? c) Displace substantial numbers of people, necessitating the ❑ ❑ ❑ construction of replacement housing elsewhere? XIV. PUBLIC SERVICES a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered government facilities, need for new or physically altered government facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? ❑ ❑ 2 ❑ Police protection? ❑ ❑ ® ❑ Schools? ❑ ❑ [J1 ❑ Other public facilities? ❑ ❑ ❑ [J1 XV. RECREATION a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that ❑ ❑ Q ❑ substantial physical deterioration of the facility would occur or be accelerated? b) Does the project include recreational facilities or require the construction of or expansion of recreational facilities which ❑ ❑ ❑ Q might have an adverse physical effect on the environment? Opportunities? XVI. TRANSPORTATION/TRAFFIC Would the project: a) Conflict with an applicable plan, ordinance or policy establishing measures of effectiveness for the performance of the circulation system, taking into account all modes of transportation, including mass transit and non -motorized travel ❑ Lj ❑ ❑ and relevant components of the circulation system, including but not limited to intersections, streets, highways and freeways, pedestrian and bicycle paths, and mass transit? NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 37 b) Conflict with an applicable congestion management program, including, but not limited to level of service standard and travel demand measures, or other standards established by the county congestion management agency for designated roads or highways? c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? e) Result in inadequate emergency access? f) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)? XVII. UTILITIES & SERVICE SYSTEMS Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? e) Result in a determination by the wastewater treatment provider, which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? g) Comply with federal, state, and local statutes and regulations related to solid waste? Potentially Less Than Less than No Significant Significant With Significant Impact Impact Mitigation Impact Incorporated ❑ ❑ ❑ Q ❑ ❑ ❑ Q ❑ ❑ ❑✓ ❑ ❑ ❑ 0 ❑ ❑ ❑ 0 ❑ ❑ ❑ ❑ ❑ ❑ ❑ 2 ❑ ❑ ® ❑ ❑ ❑ 2 ❑ ❑ ❑ ® ❑ ❑ ❑ 2 ❑ NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 38 Potentially Less Than Less than No Significant Significant With Significant Impact Impact Mitigation Impact Incorporated XVII1. MANDATORY FINDINGS OF SIGNIFICANCE. a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self- sustaining levels, threaten to eliminate a plant or animal ❑ ❑ ® ❑ community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major period of California history or prehistory? b) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable ❑ ❑ Q ❑ when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects.) c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or ❑ 0 ❑ ❑ indirectly? XIX. ENVIRONMENTAL ANALYSIS This section of the Initial Study evaluates the potential environmental impacts of the proposed project and provides explanations of the responses to the Environmental Checklist. The environmental analysis in this section is patterned after the questions in the Environmental Checklist. Under each issue area, a general discussion of the existing conditions is provided according to the environmental analysis of the proposed Project's impacts. To each question, there are four possible responses: • No Impact. The proposed project will not have any measurable environmental impact on the environment. • Less Than Significant Impact. The proposed project will have the potential for impacting the environment, although this impact will be below thresholds that may be considered significant. • Less Than Significant With Mitigation Incorporated. The proposed project will have potentially significant adverse impacts which may exceed established thresholds; however, mitigation measures or changes to the proposed project's physical or operational characteristics will reduce these impacts to levels that are less than significant. Those mitigation measures are specified in the following sections. Each recommended mitigation measure has been agreed to by the applicant. • Potentially Significant Impact. The proposed project will have impacts that are considered potentially significant and additional analysis is required to identify mitigation measures that could reduce these impacts to insignificant levels. When an impact is determined to be potentially significant in the preliminary analysis, the environmental issue will be subject to detailed analysis in an environmental impact report (EIR). NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 39 a) Would the project have a substantial adverse effect on a scenic vista? Less than Significant Impact. The proposed project encompasses approximately 145 acres adjacent to Fashion Island and is located north of Coast Highway. Newport Center Drive from Newport Center Drive east/west to Farallon Drive is designated as a Coastal View Road. Although Coast Highway is not designated as a Coastal View Road between Jamboree Road and MacArthur Boulevard, a Public View Point is located within Irvine Terrace Park, which is located south of that arterial and the subject property in the Corona del Mar service area. Policies NR 20.2 and 20.3 in the Natural Resources Element of the Newport Beach General Plan are intended to protect and enhance public view corridors. Specifically, new development must restore and enhance the visual quality and protect and restore public views. Similar policies in the Coastal Land Use Plan (CLUP) are also intended to ensure that coastal views and development within the coastal zone are protected and enhanced (refer to the analysis presented in Section X.b). To that end, the proposed Planned Community District (PCD) Regulations include development standards to ". .. ensure harmony and continuity of the design parameters that are respectful of the properties of its California coastal heritage." Guidelines have been included in the PCD regulations that address building mass, scale, materials, landscape treatment, and community design to ensure compatibility. Although the PCD regulations limit the maximum building height of a structure to 50 feet, building heights for the proposed structures will range from 30 feet for The Bungalows, to 32 feet for the Villas and the Tennis Clubhouse, to 50 feet for the Golf Clubhouse, which will be the largest structure within the PCD. In addition, landscaping will be provided in all areas not devoted to structures, parking and driveways, which consists of a combination of trees, shrubs, groundcover and hardscape improvements. In addition, the Master Plan (refer to Exhibit 2) and the Preliminary Landscape Plan (Exhibit 19) in the PCD Plan show a variable width landscape berm screening the golf club parking lot along approximately 650 linear feet of East Coast Highway. The width varies from 20 feet to approximately 60 feet. In addition, there is significant landscaping between each row of parking to further soften the appearance of the golf club parking lot has also been provided. Landscape materials, including trees, shrubs and groundcover are also proposed around the site perimeter to soften the development edges between adjacent existing residential and commercial development. The preliminary landscape plan includes a variety of accent/specimen trees (i.e., California oak, California pepper), spatial definition trees (e.g., California sycamore, thornless citrus, lemon -scented gum, etc.) and background trees (i.e., Aleppo pine, Brisbane box) along with other species of olive and palm trees to enhance the aesthetic character of the site and to complement the existing development in the project environs. The architectural style proposed for the project is classical California Mediterranean, which is consistent and compatible with the surrounding development. The design and implementation of the proposed project will not result in a substantial visual impact. Although the proposed clubhouse will be approximately 11,500 square feet larger than the existing structure, it is designed to be compatible with the nearby development. In addition, the proposed villas are designed to be compatible with the character of the residential development to the north along Granville. Views from the Public View Point in Irvine Terrace Park are primarily oriented to the south to the harbor and ocean; however, with the integration of the landscaping and setbacks along Coast Highway, views from the vantage and inland into Fashion Island the adjacent areas would not be adversely affected. Significant visual impacts from the segment of Newport Center Drive designated as a Coastal View Road would not occur because adequate landscape materials, setbacks, and building heights have been integrated into the project design to enhance and protect views as intended by the applicable Recreation Element policies. In addition, mechanical and trash enclosures as well as pool/spa equipment, tennis courts, and ground mounted air conditioning compressor units will be screened by walls and/or landscaping. Therefore, no significant impacts are anticipated and no mitigation measures are required. A/TPORT PRELIMINARY LANDSCAPE PLAN Mun AR¢) IX1S �' YZTw TAAxCT�tta T9E5.5 ('N'eoX M'NRuks RY£) ninW.meCces NLw.m1U4CtIpmHA RIANTPNUSPNSIrc>FA i""1. oiREE511rtlJx w.r+iW:+n5cu.1 ��� elwtwu�enw'tr�c Aot ice: z � a.racL'"s+o waTM) �Cin.a� xEnEuxaovn y�,K� wurti+w'rotpu. Mm'u5'Ar - e 4 Asra.wAo T waas Ho&xx CMFwEY%SS fa`aWTA WTE µn fNaYMF IsVY. 5xhM EXfSYwlGT�fTCT @^fNN WS .MSIS WAUJureegmq!tiiEl EWUM�iS TUM a�rn�AroW Y 5.'reir(JlAf+4.!&E45cwcueawmlmsz¢) �qar p.. pkY✓.oC'v4/. F%9xROC+�llu�iYl�M l�P➢[.¢f£'k Wn)LY'S YwoMQt#ffw fiRiaAoansvEC#s �eN,wtN��P! ..cakiasxa=tes rrayxrot[ AccfntYMAta0.f�lce5l5WLLCNb�'aW.maX� v�niTEENNTP �� Cu �v ARn boV'maHEtSPa .�MxpPCP.E NCIRO: /�CHav 4'fvPhvAi.Ns �f..�'�kRG:n UnLLn45 Scuxtm�.umn �1 tars �tx511tF rde YRrs'iR WLION MW�Hk15 IXa 1' KT V S & XOiS,Si c pM rw Twus� MRRMO WW�A%.0 weT.s4,s C»=EroEn �Tf: PP,�9tq o Ytrvnixeio� �'ad0img p.nrn �ssa..SYtfp Vf �.NTstM. NBCC Planned Community MJSDesip Gmup EXHIBIT Lardy AmN�Axdute eg Rmngn Rryavwn�,cA§�' "_ I OF I UNEWPORT BEACH[�NTRYC08puNNEDC�MuwITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page41 b) Would the project substantially damage scenic resources, including, but not limited to, tnmes, rock outcroppings, and historic buildings with a state scenic highway? Less Significant Impact. The subject property is currently developed with private golf and tennis facilities. As a reuu|t, the site has been substantially altered in order to accommodate the existing land uses. The site is generally devoid of significant natural features such as rock outcroppings and/or native or important habitat. The existing trees and vegetation that are located on the site are introduced landscape species; no historic buildings exist on the site and the site is not located adjacent to a state aoanio highway. Therefore, project implementation will not adversely affect existing scenic resources. No significant impacts are anticipated and nomitigation measures are required. C) Would the project substantially degrade the existing visual character orquality mfthe site and its surroundings? Less than Significant Impact.Project implementation includes the demolition of several existing structures (e.g., Golf Clubhouse and ancillary facilities, Tennis C|ubhnuoe, etc.) and features (e.g., tennis courts) and the construction of a new Golf Club clubhouse and related facilities for the Golf Cluboomponent. In addition, a new Tennis Club, The Bungalows and single-family residential uses (i.e.. The Vi||an)are also proposed. As indicated previously, the subject property is not designated as an important visual resource. Nonetheless, the PCO regulations prescribed development standards that oddn000 building height. setbacks, |anduooping, lighting, architectural character and other elements to ensure that the aesthetic character of the site and surrounding area are not adversely affected. The maximum building height of the Golf Clubhouse is 53.5 feet from the existing grade to the roof peak. The proposed Tennis Clubhouse would have a maximum height of 30 feet above the existing grade. The maximum bui|ding height nfthe bungalows is 31 feat, with minimum five feet setbacks. The Villas would not exceed 35feet (Villa D).aoprescribed inthe PCDregulations. The two land uses have been designed within the property to be visually and aesthetically compatible with each other. In order to address the aesthetic oharooter of the site along East Coast Highway, the proposed Golf Clubhouse component has been designed with a variable landscape setback that will act as buffer along 650 linear feet of East CoastHighway. Although East Coast Highway is not designated as o eoanio corridor by the {}ih/, the wide, variable landscape setback will enhance the character of that arterial and provide a significantly wider buffer for the residents of Irvine Terrace. The setback will vary from 20 feet to 55 feet and will be landscaped with a ground cover and a variety of shrubs and trees that complement the proposed development. The Villas will be screened from the tennis courts with ofive'foot block wall plastered to match the adjacent Villa or by 10'footohain link fence covered byawindscreen. Nnsignificant impacts are anticipated and nomitigation measures are required. d) Would the project create m new source ofsubstantial light mrglare which would adversely affect day or nighttime views in the area? Less than Significant Impact. The existing development is characterized by lighting that illuminates the surface parking lot that serves the existing golf and tennis facilities. |naddition, lighting ioalso associated with existing tennis courts and security lighting for the parking lot and structures. Project implementation will result in the elimination of 17 lighted tennis courts and the intensification of development on the site through the construction of the Tennis C|ubhouoe, new tennis facilities, the Bungalows and the Villas. Lighting will also be provided for the same purpose as currently exists (i.e., security and parking lot illumination). Lighting required to illuminate the proposed parking lots for the Golf Clubhouse and Tennis Club facilities will comply with standards established by the Newport Beach Municipal Code. Proposed lighting will not spill onto adjacent properties. The single-family residential dwelling units will be screened from the tennis courts with a minimum 5-foot block wall or by e 10'footwindooroen chain link fence. One of the proposed single-family residential dwelling units is proposed to be located near the one of the existing tennis courts; hovvevor, a swimming pool is proposed between the tennis court and the residence tuminimize the potential nuisance posed bythe tennis court lighting. |naddition, some ofthe Bungalows will also be located in close proximity to the proposed tennis courts. Although it in anticipated that the lighting will be energy efficient and will also be shielded or recessed nothat direct glare and reflections are contained within the boundaries of the pnoperty, the applicant will be required to prepare a final lighting/photometric plan to ensure that lighting on site meets the City's requirements. In addition, tennis NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 42 court lights will be turned off at 10:00 p.m. Therefore, no significant impacts are anticipated and no mitigation measures are required. Mitigation Measures No significant impacts are anticipated and no mitigation measures are required. However, the project shall incorporate the following standard condition prescribed by the City of Newport Beach for lighting. SC-1 Prior to the issuance of building permits, the applicant shall prepare a photometric study in conjunction with a final lighting plan for approval by the Planning Department. 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 Planning Director, the illumination creates an unacceptable negative impact on surrounding land uses or environmental resources. The Planning Director may order the dimming of light sources or other remediation upon finding that the site is excessively illuminated. I1. AGRICULTURE AND FOREST RESOURCES a) Would the project convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland) as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? No Impact. No Prime Farmland, Farmland of State or Local Importance, or Unique Farmland occurs within or in the vicinity of the site. The site and adjacent areas are designated as "Urban and Built-up Land" and "Other Land" on the Orange County Important Farmland Map. Further, neither the site nor the adjacent areas are designated as prime, unique or important farmlands by the State Resources Agency or by the Newport Beach General Plan. Therefore, no impact on significant farmlands would occur with the proposed project and no mitigation measures are required. b) Would the project conflict with existing zoning for agricultural use, or a Williamson Act contract? No Impact. The Newport Beach General Plan, Land Use Element designates the site as "Parks and Recreation" (PR) and "Mixed Use — Horizontal" (MU-H3) and the zone designation for the site is "Planned Community." Therefore, there is no conflict with zoning for agricultural use, and the property and surrounding properties are not under a Williamson Act contract. No significant impacts are anticipated and no mitigation measures are required. c) Would the project conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code Section 12220(g)), timberland (as defined by Public Resources Code Section 4526), or timberland zoned Timberland Production (as defined by Government Code Section 51104(g))? No Impact. The project site is neither zoned nor designated as forest land. The site is currently developed as a golf course and tennis club. Project implementation would not result in the conversion of any forest land subject to the Public Resources Code. No significant impacts are anticipated and no mitigation measures are required. d) Would the project result in the loss of forest land or conversion of forest land to non - forest use? No Impact. As indicated above, the site is currently developed and is devoid of forest resources. Project implementation will not result in the site's conversion of forest land to non -forest uses. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 43 e) Would the project involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use or conversion of forest land to non -forest use? No Impact. The site is not being used for either agricultural or forest land purposes and, as indicated previously, is not designated as agricultural or forest land. The subject property and the area surrounding the site are developed with a variety of residential, professional office, retail, public facilities, and recreational uses. Therefore, no agricultural or forest uses on the site or within the site's vicinity would be converted to non-agricultural or non -forest use. No significant impacts are anticipated and no mitigation measures are required. Mitigation Measures No significant impacts are anticipated and no mitigation measures are required. III. AIR QUALITY a) Would the project conflict with or obstruct implementation of the applicable air quality plan? Less than Significant Impact. The 2007 Air Quality Management Plan (AQMP) was adopted in June 2007, after extensive public review. The 2007 AQMP recognizes the interaction between photochemical processes that create both ozone (03) and the smallest airborne particulates (PM2.5). The 2007 AQMP is therefore a coordinated plan for both pollutants. Key emissions reductions strategies in the updated air quality plan include: • Ultra -low emissions standards for both new and existing sources (including on -and -off - road heavy trucks, industrial and service equipment, locomotives, ships and aircraft). • Accelerated fleet turnover to achieve benefits of cleaner engines. • Reformulation of consumer products. • Modernization and technology advancements from stationary sources (refineries, power plants, etc.) Development such as the proposed Newport Beach Country Club project does not directly relate to the AQMP in that there are no specific air quality programs or regulations governing "general" development. Conformity with adopted plans, forecasts and programs relative to population, housing, employment and land use is the primary yardstick by which impact significance of master planned growth is determined. If a given project incorporates any available transportation control measures that can be implemented on a project -specific basis, and if the scope and phasing of a project are consistent with adopted forecasts as shown in the Regional Comprehensive Plan (RCP), then the regional air quality impact of project growth would not be significant because of planning inconsistency. The SCAQMD, however, while acknowledging that the AQMP is a growth -accommodating document, does not favor designating regional impacts as less -than -significant just because the proposed development is consistent with regional growth projections. Air quality impact significance for the proposed project has therefore been analyzed on a project -specific basis. A consistency determination plays an important role in local agency project review by linking local planning and individual projects to the Air Quality Management Plan (AQMP). It fulfills the CEQA goal of informing decision makers of the environmental efforts of the project under consideration at an early enough stage to ensure that air quality concerns are fully addressed. It also provides the local agency with ongoing information as to whether they are contributing to clean air goals contained in the AQMP. To accurately assess the environmental impacts of new or renovated development, environmental pollution and population growth are projected for future scenarios. There are two key indicators of consistency: NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 44 Indicator 1 Whether the project would result in an increase in the frequency or severity of existing air quality violations, cause or contribute to new violations, or delay timely attainment of the AAQS or interim emission reductions in the AQMP. The South Coast Air Basin (SCAB) is designated by the state and USEPA as non -attainment for '03, PM10, and PM2.5. SCAQMD developed regional emissions thresholds to determine whether or not a project would contribute to air pollutant violations. If a project exceeds the regional air pollutant thresholds, then the project would substantially contribute to air quality violations in the SCAB. In addition, the project would also contribute to air pollutant violations if localized emissions result in an exceedance of the AAQS. Neither short-term nor long-term emissions generated by the project exceed the SCAQMD thresholds for regional emissions (as shown in detail below) and would therefore contribute to an increase in frequency or severity of air quality violations and delay attainment of the AAQS or interim emission reductions in the AQMP. Consequently, the project would not be consistent with the AQMP under the first indicator. Indicator 2 Whether the project would exceed the assumptions in the AQMP. The AQMP strategy is, in part, based on projections from local general plans. The current zoning designation permits development through a planned community development plan. Therefore, development of new land uses and their associated air pollutant emissions would be accounted for in the assumptions of the AQMP. Furthermore, the purpose and intent of a "Planned Community' is to encourage mixed -use development and integration of residential, recreational, commercial, and retail uses. Because the proposed project would accommodate a mix of recreational and residential uses within walking distance, there would be a limited reduction in vehicle trips for residents within the project site and surrounding area for commercial retail and recreational needs. This reduction in trips would likewise result in a reduction in air pollution. Consequently, implementation of the project would not conflict with the AQMP under the second indicator. b) Would the project violate any air quality standard or contribute substantially to an existing or projected air quality violation? Less Than Significant Impact. The Project will be consistent with the relevant policies and requirements established by the Land Use Element. Approval of the proposed project would not result in any land use conflicts with existing, surrounding development. As indicated in Ill.c, below, neither construction nor operational air emissions would exceed significance thresholds established by the SCAQMD. These thresholds were developed to provide a method of assessing a project's individual impact significance, and also to determine whether the project's impacts could be cumulatively considerable. The proposed project would not, therefore, result in a cumulatively considerable net increase of any criteria pollutant. Since the South Coast Air Basin is in non -attainment with respect to ozone and PM10, and the construction emissions would add to the regional burden of these pollutants, compliance with a vigorous set of air pollution control measures related to dust control, paint emissions etc.) is required to ensure that projects do not contribute directly to an air quality violation. Air Pollution Control Measures Dust Control Measures • Apply soil stabilizers to inactive areas. • Prepare a high wind dust control plan and implement plan elements and terminate soil disturbance when winds exceed 25 mph. • Stabilize previously disturbed areas if subsequent construction is delayed. • Water exposed surfaces 3 times/day. • Cover all stockpiles with tarps. • Replace ground cover in disturbed areas as soon as feasible. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 45 Exhaust Emission Measures • Require 90-day low-NOx tune-ups for off -road equipment. • Limit allowable idling to 5 minutes for trucks and heavy equipment. • Utilize equipment whose engines are equipped with diesel oxidation catalysts if available. • Utilize diesel particulate filter on heavy equipment where feasible. Painting and Coating Measures Use low VOC coatings and high pressure -low volume c) Would the project result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non -attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? Less Than Significant Impact. Project implementation will result in the demolition of the existing Golf Clubhouse and the existing Tennis Clubhouse as well as related features, including asphalt parking lots, etc., in order to accommodate the proposed uses. Potential air quality impacts are discussed below. Short -Term (Construction) Emissions Construction activities will result in short-term pollutant emissions that are summarized in Table 1, below. With or without the use of mitigation, peak daily construction activity emissions will not exceed SCAQMD CEQA thresholds and will be further reduced by recommended mitigation. The recommended emissions mitigation measures are detailed in the "Mitigation" section of this report. Construction equipment exhaust contains carcinogenic compounds within the diesel exhaust particulates. The toxicity of diesel exhaust is evaluated relative to a 24-hour per day, 365 days per year, 70-year lifetime exposure. Public exposure to heavy equipment emissions will be an extremely small fraction of the above dosage assumption. Diesel equipment is also becoming progressively "cleaner" in response to air quality rules on new off -road equipment. Any public health risk associated with project -related heavy equipment operations exhaust is therefore not quantifiable, but small. Construction activity air quality impacts occur mainly in close proximity to the surface disturbance area. There may, however, be some "spill -over" into the surrounding community. That spill -over may be physical as vehicles drop or carry out dirt or silt is washed into public streets. Passing non -project vehicles then pulverize the dirt to create off -site dust impacts. "Spillover" may also occur via congestion effects. Construction may entail roadway encroachment, detours, lane closures and competition between construction vehicles (trucks and contractor employee commuting) and ambient traffic for available roadway capacity. Emissions controls require good housekeeping procedures and a construction traffic management plan that will maintain such "spill -over" effects at a less -than -significant level. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 46 p ra Construction -Related Pollutant Emissions (pounds/day) Newport Beach Country Club Activity RAG 1NOX CQ S02-t PM 0 PM2.5 CO2 Demolition of Structure No Mitigation 2.2 18.4 9.4 0.0 2.2 1.1 1,895.0 Mitigation 2.2 15.9 9.4 0.0 1.4 0.4 1,895.0 Asphalt Demolition and Crushing/Reclamation No Mitigation 3.2 31.3 14.1 0.0 1.8 1.3 3,191.0 Mitigation 3.2 26.7 14.1 0.0 0.8 0.3 3,191.0 Mass Grading No Mitigation 9.0 88.7 41.3 0.0 11.0 5.1 9,004.8 Mitigation 9.0 79.3 41.3 0.0 2.3 1.6 9,004.8 Fine Grading No Mitigation 3.3 26.1 15.1 0.0 8.3 2.8 2,552.3 Mitigation 3.3 22.2 15.1 0.0 0.9 0.3 2,552.3 Trenching No Mitigation 3.8 30.5 17.7 0.0 1.6 1.5 3,095.5 Mitigation 3.8 25.9 17.7 0.0 0.3 0.2 3,095.5 Construction No Mitigation 2.7 19.0 13.1 0.0 1.4 1.2 2,070.0 Mitigation 2.7 16.2 13.1 0.0 0.2 0.2 2,070.0 Construction and Paining No Mitigation 11.6 17.7 12.9 0.0 1.3 1.2 2,087.4 Mitigation 10.7 15.1 12.9 0.0 0.2 0.2 2,087.4 SCAQMD Threshold 75 100 550 150 150 55 Exceeds Threshold? No No No No No No -- 1No significance threshold has been adopted. SOURCE: Giroux & Associates (July 2009) Local Significance Thresholds The SCAQMD has also developed analysis parameters to evaluate ambient air quality on a local level in addition to the more regional emissions -based thresholds of significance. These analysis elements are called Local Significance Thresholds (LSTs). LSTs were developed in response to Governing Board's Environmental Justice Enhancement Initiative 1-4 and the LST methodology was provisionally adopted in October 2003 and formally approved by SCAQMD's Mobile Source Committee in February 2005. Use of an LST analysis for a project is optional because they were derived for economically or socially disadvantaged communities. For residential, hotel and recreational developments, the only source of LST impact would be during construction. LSTs are only applicable to the following criteria pollutants: oxides of nitrogen (NOx), carbon monoxide (CO), and particulate matter (PM10 and PM2.5). LSTs represent the maximum emissions from a project that are not expected to cause or contribute to an exceedance of the NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 47 most stringent applicable federal or state ambient air quality standard, and are developed based on the ambient concentrations of that pollutant for each source receptor area and distance to the nearest sensitive receptor. The URBEMIS model estimates that the daily construction disturbance "footprint" will be 0.7 acres. LST pollutant concentration data is currently published for 1, 2 and 5 acre sites. Utilizing data for a 1 acre site and a source receptor distance of 50 meters, the LST thresholds are presented in Table 2. As indicated in the table, project -related construction emissions would not exceed the relevant LSTs. Local Significance Thresholds (pounds/day) Newport Beach Country Club North Coastal Orange County CO NOx PM10 PM2.5 LST Threshold 528 163 13 5 Proposed Project Unmitigated 9 — 41 18 — 89 1 — 11 1 —3 Mitigated 9 — 41 16 — 79 1-2 1 —2 SOURCE: Giroux & Associates (July 2009 Long -Term (Operational) Emissions Possible project -related air quality concerns relate to the potential for impacts as a result of mobile source emissions that will be generated by the recreational, residential, and hotel uses proposed for the project site. The proposed project, however, replaces an existing facility and decreases existing tennis court facilities with the Bungalows and The Villas. With respect to operational emissions, it is anticipated that 389 fewer daily trips will be generated as a result of this project. Operational emissions for existing and proposed project -related traffic were calculated using a computerized procedure developed by the California Air Resources Board (CARB) for urban growth mobile source emissions. The URBEMIS2007 model was run using the trip generation factors obtained from the traffic report for this project. The model was used to calculate area source emissions and the resulting vehicular operational emissions for existing uses in 2009 and proposed uses in 2012. A comparison was made of the two scenarios and the results are shown in Table 3. The few residential uses associated with the proposed project may generate small quantities of organic compounds from cleaning products, personal care products, landscape maintenance, cooking, etc. Because the existing site has no residential use component, the area source emissions are slightly higher for the proposed project than for existing uses. As seen in Table 3, mobile source emissions in 2009 are higher for existing uses than for the proposed project for an assumed 2012 build -out. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 48 Table 3 Project -Related Emissions Burden (pounds/day) Newport Beach Country Club ROG NOx CO S02 PM'10 PM2. L022 Existing Uses (2009 Area Sources 0.3 0.0 3.1 0.0 0.0 0.0 5.6 Mobile Sources 11.5 15.4 149.5 0.2 24.3 4.7 14,288.0 Total 11.8 15.4 152.6 0.2 24.3 4.7 14,293.6 Proposed Project (2012) Area Sources 0.8 0.4 5.1 0.0 0.0 0.0 372.0 Mobile Sources 6.8 9.0 87.8 0.1 18.4 3.6 10,829.9 Total 7.6 9.4 92.9 0.1 18.4 3.6 11,201.9 Net Difference (Proposed versus Existing Uses) Area Sources 0.5 0.4 2.0 0.0 0.0 0.0 366.4 Mobile Sources -4.7 -6.4 -61.7 -0.1 -5.9 -1.1 -3,458.1 Total -4.2 -6.0 -59.7 -0.1 -5.9 -1.1 -3,091.7 SCAQMD Threshold 55 55 550 150 150 55 Exceeds Threshold? No No No No No No -- 'No significance threshold has been adopted. SOURCE: Giroux & Associates (July 2009) Because the proposed project generates fewer trips than existing uses and since area source emissions are minimal compared to mobile source emissions, the SCAQMD's recommended threshold levels will not be exceeded. Operational emissions will be less than significant. d) Expose sensitive receptors to substantial pollutant concentrations? Less than Significant Impact. The area in which the subject property is located is dominated by non- residential development, including professional office. Some residential development exists north of the existing tennis club and a senior housing development is located west of the proposed project site near Jamboree Road between Back Bay Road and Coast Highway; however, there are no hospitals, schools or other sensitive receptors located near the proposed project site. Moreover, as discussed in the preceding assessment of potential air quality impacts, the proposed project would not generate pollutant emissions that would exceed established SCAQMD thresholds, either during the temporary construction phases or over the long-term operating life of the proposed facilities and residences when occupied. Although no significant impacts are anticipated, several conditions are prescribed to further reduce dust and construction equipment exhaust emissions during the construction phase. e) Create objectionable odors affecting a substantial number of people? No Impact. A variety of odors would be associated with construction equipment exhaust emissions and application of paints and other architectural coatings. The odors would be minor and temporary in nature and would not significantly affect people residing or occupying areas beyond the immediate construction zones. Subsequent to the completion of construction activities, development of the site with the proposed Golf Club and Tennis Club, The Bungalows, and The Villas would not result in any significant change in the kinds of odors that could be experienced in the project environs, which is composed of single-family residential dwelling units similar to The Villas. Occasional, less than significant odors may occur in NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 49 conjunction with trash pick up and outdoor food preparation (e.g., barbeques), and possibly with outdoor maintenance activities. Trash containers would be equipped with lids and would be stored inside the dwelling units and garages. The proposed project will not generate unusual or large quantities of solid waste materials, or utilize chemicals, food products, or other materials that emit strong odors that would adversely affect the ambient air quality in the project environs. Therefore, the project does not have the potential to create objectionable odors; and no mitigation measures are required. Mitigation Measures Although no significant short-term (i.e., construction) or long-term (operational) air quality impacts will occur as a result of the proposed project, the following measures are required by the South Coast AQMD to further reduce construction emissions: SC-2 Adherence to SCAQMD Rule 402, which prohibits air contaminants or other materials that cause injury, detriment, nuisance or annoyance to any considerable number of persons or to the public, or which endanger the comfort, repose, health, or safety of any such persons or the public, or which cause, or have a natural tendency to cause injury or damage to business or property to be emitted within the SoCAB. SC-3 Adherence to SCAQMD Rule 403, which sets requirements for dust control associated with grading and construction activities. SC-4 Adherence to SCAQMD Rules 431.1 and 431.2, which require the use of low sulfur fuel for stationary construction equipment. SC-5 Adherence to SCAQMD Rule 1108, which sets limitations on ROG content in asphalt. SC-6 Adherence to SCAQMD Rule 1113, which sets limitations on ROG content in architectural coatings. SC-7 Adherence to Title 24 energy -efficient design requirements as well as the provision of window glazing, wall insulation, and efficient ventilation methods in accordance with the requirements of the California Building Code. IV. BIOLOGICAL RESOURCES a) Would the project have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? No Impact. The subject property has been extensively altered as a result of site development. No important biological resources are identified in the Natural Resources Element of the Newport Beach General Plan (refer to Figure NR1) and no environmental study areas exist on the site (refer to Figure NR2) in that Element. As previously indicated, the majority of the site is developed with golf and tennis facilities, including parking lots. Virtually all of the vegetation existing within the limits of the site is introduced landscape species. Furthermore, the site is entirely surrounded by residential and commercial development as well as the Marriott Hotel and roadways. No sensitive habitat and/or sensitive plant or animal species exist on the subject property. The proposed project will result in the demolition of some existing structures, including the existing Golf and Tennis Clubhouses and several tennis courts in order to accommodate the proposed new development. Project implementation will not result in any modifications to sensitive habitat and/or sensitive species of plants or animals. Alteration of the site as proposed will not result in any potentially significant direct or indirect impacts to sensitive habitat and/or species. No significant impacts are anticipated and no mitigation measures are required. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 50 b) Would the project have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? No Impact. With the exception of two man-made lakes that are part of the existing golf course, no riparian features exist within the limits of the site. The two lakes are not included within the development limits and, therefore, will not be directly affected by the proposed new development. Grading and site development proposed by the applicant will not result in any impacts to riparian habitat or other sensitive natural community identified either in the City's General Plan or Coastal Land Use Plan. c) Would the project have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? No Impact. As indicated above, no riparian habitat exists on the subject property and no wetlands as defined by Section 404 of the Clean Water Act occur on the site. Project implementation will not result in any potential adverse affects to either wetlands or riparian species. d) Would the project interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? No Impact. The subject property and the surrounding areas are developed and no migratory wildlife corridors occur on site or in the immediate vicinity of the project site that would be affected by development of the subject property. As a result, the proposed project will not interfere with resident, migratory or wildlife species. No significant impacts are anticipated and no mitigation measures are required. e) Would the project conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? No Impact. The site is devoid of protected habitat and/or species, including heritage trees. Project implementation will not result in any conflicts with adopted policies or ordinances intended to protect biological resources. No significant impacts are anticipated and no mitigation measures are required. f) Would the project conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? No Impact. There are no local, regional or state habitat conservation plans that would regulate or guide development of the project site. The subject property, which has been developed as private recreation (i.e., Golf Club and Tennis Club) does not support native habitat and/or species and is not included in either a Habitat Conservation Plan or a Natural Community Conservation Plan. No significant direct or indirect impacts to an existing HCP and/or NCCP will occur as a result of project implementation; no mitigation measures are required. Mitigation Measures No significant impacts to biological resources are anticipated; no mitigation measures are required NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 51 1 a) Would the project cause a substantial adverse change in the significance of a historical resource as defined §15604.5? No Impact. The project site is currently developed with an 18-hole Golf Club, clubhouse and ancillary facilities, and a private tennis club with 24 tennis courts. Figure HR1 in the City's Historical Resources Element indicates that no historical resources are located on the site. Although no historic sites are located on the subject property, the California Point of Historical Interest (2009) of the Office of Historic Preservation, Department of Parks and Recreation, lists one property within a one-half mile radius of the subject property. ORA-009, the site of the 1953 National Boy Scout Jamboree (i.e., present location of Newport Center) is near the site. This site is also listed on the California Historic Resources Inventory. No historic resources and/or properties within one-half mile of the site are identified by the California Historical Landmarks (2009) of the Office of Historic Preservation, Department of Parks and Recreation, or the National Register of Historic Places. Implementation of the proposed project would not result in any direct or indirect impacts to the existing historic site (ORA-009). Furthermore, the site is not identified by the City as possessing potentially important historic resources. Therefore, project implementation will not result in potentially significant impacts to historic resources are anticipated and no mitigation measures are required. b) Would the project cause a substantial adverse change in the significance of an archaeological resource pursuant to §15604.5? Less than Significant Impact. Thirty-eight (38) studies have been conducted within a one-half mile radius of the subject property.2 However, none of the studies occurred within the project site. In addition, 19 investigations also occurred on the Newport Beach, Laguna Beach and Tustin 7.5-minute U.S.G.S. quadrangle maps that are also potentially within one-half mile of the site. Although no site specific surveys have been conducted on the subject property, the site has been substantially altered in order to accommodate the existing golf and tennis facilities. The project proposes changes only to areas of the site that have previously been altered by grading and prior development. The new Golf Clubhouse is proposed to be located in the same area as the existing Golf Clubhouse. As a result, any grading and site alteration that is anticipated would affect the same areas that have previously been altered in order to accommodate the existing Golf Clubhouse and related facilities. Similarly, alteration of the Tennis Club portion of the site necessary to accommodate the new Tennis Clubhouse, The Bungalows, and The Villas will also affect areas that have previously been graded and substantially altered. As a result, project implementation will not adversely affect archaeological/cultural resources that may exist on the site. Although no significant impacts are anticipated and no mitigation measures are necessary, the City will require that a qualified archaeologist/paleontologist be present during grading and site alteration to monitor grading and landform alteration (refer to SC-8). Implementation of this measure is consistent with applicable Policy No. HR 2.2 of the Historic Resources Element of the Newport Beach General Plan. The City of Newport Beach complied with the requirements of SB 18 by submitting a request to the Native American Heritage Commission (NAHC). In addition, the City also sent a tribal consultation request to the Native American representative, Mr. David Belardes (Chairperson, Juaneno Band of Mission Indians Acjachemen Nation) on September 8, 2005 in compliance with both SB18 and Policy No. HR 2.3 that requires notification of cultural organizations. The City did not receive a response to the SB18 consultation request. Subsequent to that letter, a follow-up request was sent to Mr. Belardes on May 15, 2009 to apprise the Native American representative of changes to the project and request consultation with the Native Americans. To date, no response to the consultation request has been received by the City. '"Record Search Results for the Proposed Newport Beach Country Club Project Located in the City of Newport Beach, California; South Central Coastal Information Center; Letter dated June 2, 2009. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 52 c) Would the project directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? Less Than Significant Impact. As indicated above, the project area is located within an urbanized area of the City of Newport Beach and has been previously graded and developed. Any near -surface paleontological resources that may have existed at one time have likely been disturbed and/or destroyed by prior development activities. Therefore, no potentially significant impacts are anticipated and no mitigation measures are required. It is not likely that implementation of the project will result in any potentially significant impacts to paleontological resources because of the prior development activities that have taken place on the site. Nonetheless, as identified below, monitoring of the grading activities by a qualified paleontologist will be required as prescribed below to ensure that in the event that fossils or other important paleontological resources are encountered, appropriate measures can be taken to avoid adverse impacts to those resources. d) Would the project disturb human remains, including those interred outside of formal cemeteries? No Impact. The project site and surrounding areas are highly disturbed due to past urban development and there is no evidence of human remains or sites of Native American burials. Based on the degree of disturbance that has already occurred on the site (i.e., golf and tennis facilities) and in the vicinity of the project site (i.e., Newport Center), it is anticipated that project implementation would not result in potentially significant impacts to human remains; however, as indicated below, a qualified archaeological/paleontological monitor will be present on -site during grading to ensure that in the event human remains are encountered, appropriate measures will be implemented in accordance with State law regarding human remains. Mitigation Measures Although no significant impacts are anticipated, the following standard condition is required by the City to ensure that potential impacts to cultural and/or scientific resources that may be encountered during grading are avoided. SC-8 A qualified archaeological/paleontological monitor shall be retained by the project applicant who will be available during the grading and landform alteration phase. In the event cultural resources and/or fossils are encountered during construction activities, ground -disturbing excavations in the vicinity of the discovery shall be redirected or halted by the monitor until the find has been salvaged. Any artifacts and/or fossils discovered during project construction shall be prepared to a point of identification and stabilized for long-term storage. Any discovery, along with supporting documentation and an itemized catalogue, shall be accessioned into the collections of a suitable repository. Curation costs to accession any collections shall be the responsibility of the project applicant. MM-1 The City shall provide an opportunity for a Native American representative to monitor excavation activities. The representative shall be determined by the City based on input from concerned Native American tribes (i.e., Gabrielino, Juaneno, and Tongvas). NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 53 1�L�cT�i7>�iZ � ► r �ilii� people7) Would the project expose including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist- Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Less than Significant Impact. The site is located in the Newport Center/Fashion Island area of the City, which is near the intersection of the Southwestern Block and the Central Block of the Los Angeles Basin. The Southwestern Block is the westerly seaward portion of the Los Angeles Basin, which includes Palos Verdes Peninsula and Long Beach, and is bounded on the east by the Newport -Inglewood Fault Zone (NIFZ). The landward part of the NIFZ is a northwesterly -trending zone that extends from Beverly Hills on the north to Newport Bay on the south, where it continues offshore to the south; however, it eventually returns ashore again near La Jolla, where it is expressed by the Rose Canyon Fault. The NIFZ within the project environs is not included on the State -published Alquist-Priolo Special Studies zonation map. The subject property is located within a seismically active area. There are no known local or regional active earthquake faults on the site, and the site is not within an Alquist-Priolo Zone. However, the site is located within close proximity of several surface faults that are presently zoned as active or potentially active by the California Geological Survey. The site is located approximately 3.7 kilometers (km) east of the Newport -Inglewood fault zone. The site may also be located within in 1 km of the San Joaquin Hills Blind Thrust, an inferred, low -angle fault system (e.g., blind thrust). These faults normally do not break the ground surface during sizeable earthquakes. Another active fault that could generate seismic activity that affects the subject property and surrounding area is the Elsinore Fault. The Newport -Inglewood and Elsinore Fault Zones could produce earthquakes of magnitude 6 — 7 on the Richter Scale, with local strong ground motion equivalent to at least Vill — IX on the modified Mercali Scale. Although episodes on those faults could cause ground shaking at the project site, it is highly unlikely that the site would experience surface rupture. Therefore, no significant ground rupture impacts would occur as a result of project implementation. ii) Strong seismic ground shaking? Less than Significant Impact. See response to Vl.a (i) above. As indicated above, the subject property is located in the seismically active southern California region; several active faults are responsible for generating moderate to strong earthquakes throughout the region. Due to the proximity of the site to the San Joaquin Hills Blind Thrust and the Newport -Inglewood Fault zone, the subject property has a moderate to high probability to be subjected to seismic and associated hazards. A probabilistic seismic hazard analysis of horizontal ground shaking was performed to evaluate the likelihood of future earthquake ground motions occurring at the site. The maximum earthquake of 23 faults within an 80 km radius of the site based on the seismic hazard analysis conducted for the project. The earthquake magnitudes associated with each fault are presented in Table 4. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 54 Table 4 Seismic Source Model Newport Beach Country Club Fault Distance (km) Seismolog Parameters Maximum M, Fault Type' Slip Rate nntyr) San Joaquin Hills Blind Thrust <1.0 6.6 bt 0.5 Newport Inglewood Offshore 3.7 7.1 rl-ss 1.5 Newport -Inglewood L.A. Basin) 4.1 7.1 rl-ss 1.0 Palos Verdes 22.9 7.3 rl-ss 3.0 Chino -Central Avenue 30.7 6.7 rl-r-o 1.0 Whittier 33.7 6.8 rl-ss 2.5 Elsinore -Glen Ivy 35.2 6.8 rl-ss 5.0 Puente Hill Thrust 35.2 7.1 bt 0.4 Coronado Bank 38.3 7.6 rl-ss 3.0 San Jose 47.7 6.4 11-r-o 0.5 Elsinore -Temecula 49.4 6.8 rl-ss 5.0 Elysian Park Thrust (upper) 54.8 6.4 r 1.3 Sierra Madre 58.2 7.2 r 2.0 Cucamonga 58.9 6.9 r 5.0 Raymond 60.6 6.5 II-r-o 1.5 Verdugo 63.2 6.9 r 0.5 Clamshell-Saw it 64.0 6.5 r 0.5 Hollywood 65.2 6.4 11-r-o 1.0 Rose Canyon 68.8 7.2 rl-ss 1.5 Santa Monica 70.7 6.6 11-r-o 1.0 San Jacinto -San Bernardino 74.1 6.7 rl-ss 12.0 San Jacinto -San Jacinto Valley 75.0 6.9 rl-ss 12.0 Malibu Coast 76.4 6.7 Il-r-o 0.3 'rl - right -lateral; II - left lateral; ss - strike -slip; r - reverse; o - oblique; bt - blind thrust SOURCE: GMU Geotechnical, Inc. (May 2, 2008) The maximum earthquake on the NIFZ is estimated to be 7.1 on the Richter Scale. Similarly, the maximum earthquake on the San Joaquin Hills Blind Thrust is 6.6. Other faults capable of producing seismic activity that could affect the subject property include the San Jacinto Fault and the Whittier Fault, which is a northern branch of the Elsinore Fault. Even though the project site and surrounding areas could be subject to strong ground movements, incorporation of the recommendations included in the preliminary geotechnical report, adherence to current building standards of the City of Newport Beach, and compliance with current California Building Code standards would reduce the potential adverse effects of ground movement hazards to a less than significant level. iii) Seismic -related ground failure, including liquefaction? No Impact. Based on the geologic exploration undertaken on the subject property, the site is underlain by sedimentary rocks of the Monterey Formation. These rocks do not have the potential for liquefaction. Furthermore, no groundwater is present to the depths and no loose sands or coarse silt is present. Therefore, the potential for liquefaction is negligible and less than significant. Proper design of the proposed structures will ensure that ground failure, including that associated with liquefaction, will not pose a significant hazard to the development. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 55 iv) Landslides? No Impact. The site is generally devoid of slopes and no significant slopes are planned within the property. Potential effects associated with slope stability are, therefore not anticipated to have an adverse impact on the proposed project. No significant impacts are anticipated an no mitigation measures are required. b) Would the project result in soil erosion or the loss of topsoil? Less than Significant with Mitigation Incorporated. Implementation of the proposed project will necessitate grading and excavation necessary to accommodate the proposed Golf Clubhouse, Tennis Club, The Bungalows, and The Villas that will temporarily expose on -site soils to potential erosion. In that interim period, it is possible that some erosion may occur, resulting in some sedimentation; however, in order to ensure that erosion and sedimentation are minimized, the applicant will be required to prepare and submit an adequate drainage and erosion control plan, which complies with current City standards. Although it is possible that potential erosion could occur without the incorporation of appropriate measures, implementation of the mandatory appropriate erosion controls will avoid potential erosion impacts associated with site grading and development. Further, the proposed site will be engineered to ensure that surface/subsurface drainage does not contribute to erosion or adversely affect the stability of project improvements. Other efforts required to ensure that potential erosion is minimized include slope protection devices, plastic sheeting, inspection for signs of surface erosion, and corrective measures to maintain, repair or add structures required for effective erosion and sediment movement from the site. As a result, potential impacts occurring from project implementation, including those anticipated during grading and after development of the site, will be avoided or reduced to a less than significant level. c) Would the project be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project and potentially result in on- or off -site landslide, lateral spreading, subsidence, liquefaction or collapse? Less than Significant with Mitigation Incorporated. Refer to Section VI.a.iv, above. As previously indicated, potential slope failure/landslide potential is not anticipated because no slopes are proposed and no significant slopes exist on the subject property. Therefore, site preparation and design of the proposed residence in accordance with the recommendations contained in the preliminary geotechnical report and compliance with the California Building Code will ensure that potential impacts will be avoided or reduced to a less than significant level. The depth of planned engineered fill is anticipated to be five to 10 feet following both design and corrective grading. Total fill depths (i.e., new and existing fill) are anticipated to range from five to 25 feet. All fill will be placed as engineered fill on top of existing suitable artificial fill, terrace deposits, or bedrock. Post -grading settlement of the shallow -depth fills is anticipated to be minor as most of the grading related to settlement (i.e., due to fill self weight) should be complete at the completion of grading. Secondary compression is not anticipated due to: (1) the low plasticity of anticipated fill soils; (2) the low fill thickness; and (3) the over -consolidated nature of the underlying terrace deposits and bedrock. Hydro - compression of the fill soils should also be minor due to the fact that the fills will be placed above optimum moisture content. Significant post -grading settlement of the underlying bedrock due to loading from the proposed fills is not anticipated. Similarly, hydro -collapse of the bedrock materials will be negligible due to the existing high density and over -consolidated nature of the materials. For these reasons, post -grading settlements related to grading are not anticipated to have a significant effect on structures and improvements. Adherence to the recommendations in the preliminary geotechnical report will ensure that potential effects associated with settlement would be avoided. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 56 d) Would the project be located on expansive soil, as defined in Table 18-1-B of the California Building Code (2007)), creating substantial risks to life or property? Less than Significant with Mitigation Incorporated. Based on the analysis conducted for the proposed project, the on -site surface materials have a very low to low expansion index and a negligible sulfate content. However, because testing results were in the upper limit of the "low" expansion classification, it is anticipated that medium expansion potential may exist. The subject site is underlain by artificial fill, colluvium, and terrace deposits overlying bedrock assigned to the Monterey Formation. Adherence to the recommendations in the Report of Geotechnical Studies (GMU, 2008) prepared for the project will ensure that impacts associated with expansive soils would be avoided. With the incorporation of these recommendations, potential impacts will be less than significant. e) Would the project have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? No Impact. The project will be connected to existing sewer lines. No septic tanks or alternative waste water disposal systems are proposed. Therefore, no significant impacts related to the implementation of an alternative waste disposal system are anticipated and no mitigation measures are required. Mitigation Measures As indicated in the geotechnical report prepared for the proposed project, construction of the proposed improvements (i.e., Golf Club, Tennis Club, The Bungalows, and Villas) is feasible from a geotechnical perspective. The following measures shall be implemented to ensure that no potentially significant geotechnical impacts identified in the preceding analysis occur. SC-9 All grading operations and construction shall comply with the applicable City of Newport Beach Grading Code and Grading Manual and the most recent version of the California Building Code. SC-10 Prior to issuance of the grading permit, an erosion control plan shall be submitted to and approved by the City's Chief Building Official. SC-11 Prior to issuance of a grading permit, the applicant shall submit a soils engineering report and final geotechnical report to the City's Building Department for approval. MM-2 The project shall be designed to incorporate the recommendations included in "Revised Preliminary Geotechnical Design Parameters for the NBCC Planned Community" (April 25, 2008) and "Report of Geotechnical Studies and Review of Vesting Tentative Tract Map No. 15347" (May 2, 2008) prepared by GMU Geotechnical that address site grading, site clearing, compaction, bearing capacity and settlement, lateral pressures, footing design, seismic design, slabs on grade, retaining wall design, subdrain design, concrete, surface drainage, landscape maintenance, etc. The Building Department shall review the grading plan to ensure conformance with recommendations contained in the final geotechnical report. VII. GREENHOUSE GAS EMISSIONS Background The earth's natural warming process is known as the "greenhouse effect." The greenhouse effect keeps the earth warm and habitable, raising the temperature of the earth's surface by about sixty degrees Fahrenheit. With the natural greenhouse effect, the average temperature of the earth is about 45 degrees Fahrenheit. Obviously, the earth would be much less inviting without the greenhouse effect.3 It is 'Climate Change 101: Understanding and Responding to Global Climate Change, published by the Pew Center on Global Climate Change and the Pew Center on the States. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 57 normal for the earth's temperature to fluctuate over extended periods of time. For example, the climate of the Northern Hemisphere varied from a relatively warm period between the eleventh and fifteenth centuries to a period of cooler temperatures between the seventeenth century and the middle of the nineteenth century.4 Viewed in historic terms, global climate change is a natural phenomenon. Over the past one hundred years, the earth's average global temperature has generally increased by one degree Fahrenheit. In some regions of the world, the increase has been as much as four degrees Fahrenheit.5 Many scientists studying the particularly rapid rise in global temperatures Burin? the late twentieth century say that natural variability does not alone account for what is happening now. Rather, they say, human activity spawned by the industrial revolution has resulted in increased emissions of carbon dioxide and other forms of "greenhouse gas" (GHG), primarily from the burning of fossil fuels (during motorized transport, electricity generation, consumption of natural gas, industrial activity, manufacturing, etc.) and deforestation, as well as agricultural activity and the decomposition of solid waste. These scientists refer to the global warming context of the past century as the "enhanced greenhouse effect" to distinguish it from the natural greenhouse effect.' While the increase in temperature is known as "global warming," the resulting change in weather patterns is known as "global climate change." Global climate change is evidenced in wind patterns, storms, precipitation, and air temperature. The human -produced GHGs believed to be responsible for the enhanced greenhouse effect and their relative influence on the global warming process (i.e., their relative ability to trap heat in the atmosphere) are estimated to be: carbon dioxide (CO2) (53 percent); methane (CH4) (17 percent); near -surface ozone (03) (13 percent); nitrous oxide (N20) (12 percent); and chlorofluorocarbons (CFCs) (5 percent). The most common GHG is CO2, which constitutes approximately 84 percent of all GHG emissions in California (California Energy Commission, 2006). Worldwide, the State of California ranks as the 121h to 16th largest emitter of CO2 (the most prevalent GHG) and is responsible for approximately 2 percent of the world's CO2 emissions (CEC 2006). The warming pattern of the last 100 years, however, does not present a steady and consistent rise in the earth's temperature. Scientists have noted significant warming between 1910 and 1940, moderate cooling from 1940 to 1975, and a large warming again starting in 1975.$ Additionally, there remains debate over the precise extent to which the enhanced greenhouse effect differs from the natural greenhouse effect, as well as the amount of the change in temperature and climate which can be attributed to human activity, as opposed to natural cycles. There is, however, general agreement within the scientific community that increasing emissions of GHGs have significantly contributed to a trend of increasing the Earth's average temperature and that human activity plays a significant role in those emissions. It also is generally agreed that the warming of the earth produces changes in the Earth's climate. Methodology has been evolving over the past several years relative to the evaluation under CEQA of the potential impacts of GHG emissions upon global climate change and, in turn, the impacts of global climate change upon the environment. The evaluation contained in this MND reflects the City's thorough investigation and analysis of the proposed Project's incremental contribution to greenhouse gas emissions and the potential impacts those emissions may have on the environment. This evaluation has been shaped by (i) the provisions of CEQA and its Guidelines (and, specifically, newly effective CEQA Guidelines addressing the evaluation of GHG emissions) which dictate the required scope and extent of 'Id. 5Brohan, P., J.J. Kennedy, I. Haris, et al., Uncertainty estimates in regional and global observed temperature changes: a new dataset from 1850. Journal of Geophysical Research, 2006. 111: p. D12106, doi:10.1029/2003JA009974. slntergovernmental Panel on Climate Change. 2001. "Comparison between modeled and observations of temperature rise since the year 1860." In Climate Change 2001: Synthesis Report, Contribution of Working Groups I, II, and III to the Third Assessment Report. Robert T. Watson and the Core Writing Team, eds. Cambridge University Press, Cambridge, UK. 7Clmmate Change 101: Understanding and Responding to Global Climate Change, published by the Pew Center on Global Climate Change and the Pew Center on the States. 8 Id. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 58 impact analysis, and (ii) the City's recently employed methodology for the evaluation of GHG emissions which supplements CEQA's requirements. Additional background is as follows: AB 32 and Amended CEQA Guidelines In adopting the California Global Warming Solutions Act of 2006 (commonly known as "AB 32"), the State Legislature declared that "[g]lobal warming poses a serious threat to the economic well-being, public health, natural resources, and the environment of California." Further, the Legislature determined that "the potential adverse impacts of global warming include the exacerbation of air quality problems, a reduction in the quality and supply of water to the state from the Sierra snowpack, a rise in sea levels resulting in the displacement of thousands of coastal businesses and residences, damage to marine ecosystems and the natural environment, and an increase in the incidences of infectious disease, asthma, and other human health -related problems." The Legislature added that "[g]lobal warming will have detrimental effects on some of California's largest industries" and will "increase the strain on electricity supplies necessary to meet the demand for summer air-conditioning in the hottest parts of the state." AB 32, however, did not amend CEQA or establish regulatory standards to be applied to new development or environmental review of projects within the State. Rather, AB 32 initiated a long-term program for "the development of [GHG] emissions reduction measures." Quoting from a public notice prepared by the staff of the California Air Resources Board ("GARB") in connection with a meeting on October 25, 2007, to consider "early discrete actions," AB 32 "creates a comprehensive, multi -year program to reduce greenhouse gas (GHG) emissions in California, with the overall goal of restoring emissions to 1990 levels by the year 2020." The Act recognizes that such an ambitious effort requires careful planning and a well thought out set of strategies. Despite some perceptions to the contrary, neither AB 32 nor subsequent actions taken to date by either the Legislature, the Governor, the California Air Resources Board (CARB), or the Governor's Office of Planning and Research (OPR) have established either (i) specific new regulatory standards as part of a statewide or regional plan to curb global warming impacts, or (ii) thresholds of significance for the evaluation of either direct or cumulative impacts under CEQA. Certain milestones were, however, established by the Act, including an important milestone for the adoption of amended CEQA Guidelines intended to address the methodology for evaluating GHG impacts (the "Amended Guidelines"). Those Amended Guidelines have been adopted and became effective on March 18, 2010. However, while the Amended Guidelines provide guidance to public agencies in their analysis under CEQA of GHG emissions and call for a "good -faith effort, based to the extent possible on scientific and factual data, to describe, calculate or estimate the amount of greenhouse gas emissions resulting from a project" (CEQA Guidelines Section 15064.4), they do not establish any specific thresholds to be used by agencies in evaluating the significance of potential GHG impacts. Therefore, this MND evaluates potential GHG impacts by following the guidance of the Guidelines in the context of the overall directives of CEQA for impact evaluation. To supplement that CEQA analysis, this MND also evaluates potential GHG impacts using a separate threshold recently employed by the City for the evaluation of GHG emissions. Global Climate Change in the CEQA Context The evaluation of a project's impacts on global climate change begins with an analysis of the project's GHG emissions. Greenhouse gases include CO2, CH4, N20, and CFCs. CO2 is the GHG most focused upon, because it exists in greatest volume in the atmosphere. Currently CO2 levels are approximately 380 ppm (parts per million). Prior to the industrial era (which began in the late 1800s), CO2 levels in the atmosphere had not exceeded 280 ppm, for the last million years. Due to human activities after the onset of the industrial era, GHGs, including CO2, have risen at exponential levels. It is well documented that human activities are a direct cause of increases in GHG concentrations in the atmosphere over this time period. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 59 A particular challenge to global climate change analysis under CEQA, however, is that while the evaluation of a project's direct impacts may start with the simple question of whether the project contributes to an environmental effect such as global climate change, it does not end there. Rather, CEQA requires a legitimate determination as to whether the project contributes to a level that makes that contribution significant. CEQA defines a "significant effect on the environment" as a substantial, or potentially substantial, adverse change in the environment. Exactly what contribution to an impact is required for an impact to be "significant" is evaluated through the establishment of a "threshold of significance."9 A threshold of significance cannot be an arbitrary measure. With respect to global climate change and absent an adopted regulatory standard, the establishment of a feasible and practical significance threshold which meets the requirements of CEQA and the United States Constitution has proved challenging. Because GHGs are well mixed in the atmosphere and remain in the atmosphere for periods ranging from decades to centuries, GHG emissions from each single worldwide source commingle with emissions from all other worldwide sources in a matter of days to influence climate change on a global, rather than local or regional, basis.10 California GHG emissions, for example, do not specifically produce global climate change impacts in California, but rather quickly commingle with GHG emissions from around the world to influence global climate change patterns throughout the world. This "commingled" nature of GHG emissions makes it infeasible to assess the relative contribution of any one project's GHG emissions to worldwide GHG emissions without undue speculation. So, while certain emissions may contribute to both air quality and global climate change impacts, air quality impacts represent an entirely different phenomenon than global climate change impacts. Therefore, the analysis of the impact of GHG emissions on global climate change requires different methodology than does the analysis of the impact of the emission of air pollutants on air quality conditions. CEQA does not authorize the imposition of mitigation measures that do not comply with the doctrines of "nexus" and "rough proportionality' (see CEQA Guidelines §15126.4(a)(4)(A and B). These doctrines have been articulated by the United States Supreme Court and provide, in essence, that before mitigation may be imposed upon a proposed project, (i) there must be a direct relationship (i.e., "nexus") between the impacts of the project and the mitigation imposed and (ii) the mitigation required must be "roughly proportional" to the project's contribution to the impact relative to existing conditions and other projects. Thus, even if it were feasible to evaluate the impacts of a small project on global climate change, mitigation of that project's contribution to global climate change may be required only if (i) the proposed project's impact can be determined based upon an appropriate threshold of significance, (ii) feasible mitigation can be identified which has a nexus to the impact, and (iii) the mitigation is roughly proportional to the proposed project's relative contribution to the impact. These criteria also are infeasible, if not impossible, to apply without speculation. CEQA also allows a project to be evaluated for consistency with "applicable general plans and regional plans" (see CEQA Guidelines §15125(e)). Such plans would include, for example, "the applicable air quality attainment or maintenance plan." These plans involve legislative or regulatory programs applicable to all projects within the region. They establish standards which are independent of the impact analysis described in the CEQA Guidelines (see provisions beginning with Section 15126). Therefore, the "measuring stick" of a regional plan does not require a typical CEQA impact analysis in order to ensure compliance with that plan. While the program for GHG emissions reductions and maintenance which ultimately is intended to result from AB 32 will likely constitute such a regional plan once it is adopted, that AB 32 program does not yet exist and may not be in place for several years. No other program establishing such regulatory standards has yet been adopted. Therefore, there is not yet a regional or statewide plan regulating global warming by which the Proposed Project can be measured. ' CEQA Guideline §15064.7 defines a "threshold of significance" as "an identifiable quantitative, qualitative or performance level of a particular environmental effect, non-compliance with which means the effect will normally be determined to be significant by the agency and compliance with which means the effect normally will be determined to be less than significant." 10Pew Center for Global Climate Change (2003). Designing a Mandatory Greenhouse Gas Emissions Reduction for the U.S., retrieved March 12, 2007, from http://www.pewclimate.org/docUploads/USGas%2E.pdf. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 60 Each of these considerations bears on this MND's evaluation of the potential impacts of GHG emissions on global climate change. Threshold for Determining Significance There is general scientific acceptance that global warming is occurring and that human activity is a significant contributor to the process, suggesting to some that the emission of even a minute amount of GHG contributes to the warming process. However, under CEQA, such a conclusion would result in an improper threshold. The reasons are straightforward. First, because regulatory programs establishing specific GHG emission standards have not been adopted, the CEQA analysis of global climate change, must focus only on the "relative" — as opposed to "absolute" — effects of a project, using existing environmental conditions as a baseline. That means that the evaluation of a proposed project's potential GHG impacts must determine whether the proposed project's contribution to global climate change is significant when compared to the conditions existing when preparation of the EIR began. Second, of precise relevance to any argument that even small amounts of GHG emissions are intended to be prohibited by AB 32, AB 32 explicitly established the State's policy that "de minimis" emissions shall not be subject to regulation. Specifically, AB 32 requires that CARB "recommend a de minimis threshold of greenhouse gas emissions below which emission reduction requirements will not apply." Direct Impacts Given the scope and magnitude of global GHG emissions, there is little, if any, support in the scientific and environmental communities for the proposition that an isolated project's relatively miniscule contribution of GHG standing alone (i.e., a direct, as opposed to cumulative, project impact) would significantly alter the course of global climate change. In its April 13, 2009, letter to the Secretary for Natural Resources accompanying the proposed Amended Guidelines, OPR stated that the "impact resulting from greenhouse gas emissions are cumulative in nature." In a 2008 Technical Advisory, CPR noted that "climate change is ultimately a cumulative impact." Essentially, with the theoretically possible exception of an extremely large project emitting extreme amounts of GHG, a project's "net"" contribution to GHG emissions relative to existing conditions is subject to evaluation, if at all, only on a cumulative basis. Cumulative Impacts With respect to cumulative impacts, CEQA establishes specific criteria for impact evaluation when assessing whether an EIR must be prepared. (CEQA Guidelines §15064(h). The Initial Study and/or MND must determine if the proposed project's effects would be "cumulatively considerable," meaning "that the incremental effects of an individual project are significant when viewed in connection with the effects of past projects, the effects of current projects, and the effects of probable future projects." (CEQA Guidelines §15065(h)(1)). Section 15064(h)(3) of the Guidelines provides that a "lead agency may determine that a project's incremental contribution to a cumulative effect is not considerable if the project will comply with the requirements in a previously approved plan or mitigation program which provides specific requirements that will avoid or substantially lessen the cumulative problem." As noted above, no such plan or program yet exists. Section 15130 of the Guidelines sets forth the methodology by which an EIR must assess the significance of cumulative impacts. Because the MND criteria set forth in Section 15064(h)(1) and 15064(h)(3) are essentially the same as those set forth in the more detailed Section 15130, this MND utilizes that more " "Net" refers to the relative, rather than absolute, contribution of a proposed project when compared to the existing environmental conditions. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 61 detailed description as guidance in its evaluation of whether the Proposed Project's potential cumulative impacts related to global climate change are significant and cumulatively considerable. Section 15130(b) states that the "following elements are necessary (emphasis added) to an adequate discussion of significant cumulative impacts: "(1) Either: (A) A list of past, present, and probable future projects producing related or cumulative impacts, including, if necessary, those projects outside the control of the agency, or (B) A summary of projections contained in an adopted general plan or related planning document, or in a prior environmental document which has been adopted or certified, which described or evaluated regional or area wide conditions contributing to the cumulative impact. Any such planning document shall be referenced and made available to the public at a location specified by the Lead Agency." Obviously, absent gross speculation, a list of past, current, and reasonably foreseeable future projects throughout the world which potentially contribute to global warming is not feasible to assemble. And, as discussed above, there is not yet an adopted or certified planning document which contains a summary of projections based on known or likely worldwide projects. Therefore, this MND cannot feasibly evaluate potential cumulative project global climate change impacts in the "necessary" manner currently required by CEQA. With this extensive background, the analysis of the potential effects of the Proposed Project is as follows: a) Would the project generate greenhouse gas emissions either directly or indirectly, that may have a significant impact on the environment? Less than Significant Impact. During project construction, the URBEMIS2007 computer model predicts that a peak activity day in the single worst case year of construction (2009 during demolition and grading) will generate 9,004.8 pounds/day of CO2. Equipment exhaust also contains small amounts of methane and nitric oxides, which are also GHGs. Non-0O2 GHG emissions represent approximately a three percent increase in CO2_equivalent (CO2e) emissions from diesel equipment exhaust. For purposes of analysis, it was assumed that the non-0O2 GHG emissions from construction equipment are negligible, and that the total project construction GHG burden can be characterized by 40 peak activity days. The estimated annual GHG impact is estimated to be 164 metric tons (MT)/year, if all the above activities were to occur in a single year. For screening purposes, the temporary construction activity GHG emissions were compared to the chronic operational emissions in the SCAQMD's interim thresholds. The proposed industrial operational threshold is 10,000 metric tons (MT) of CO2e per year.12 Grading activities generating 164 MT are well below this threshold. Construction activity GHG emissions are also below the proposed operational screening criteria of 3,000 MT for non -industrial uses.13 The Proposed Project's daily operational CO2e emissions will be less than existing emissions from reduced project -site travel. The annual reduction of 574 MT (631 "short" tons) of CO2e emissions will offset the 196 MT of "new" CO2e emissions generated by the Proposed Project. Because the Proposed Project will generate fewer GHG emissions than are generated under existing environmental conditions and despite the challenge of establishing thresholds of significance for global climate change impacts, it can be fairly stated that under any threshold which would be permitted by CEQA, the Proposed Project will not have a significant impact on global climate change. 12Recommended by the South Coast Air Quality Management District. 13Id. NBNPOnTBEACH COUNTRY CLUB PLANNED COMMUNITY (PA2O05140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION PageG2 As a result, the Proposed Project will not produce GHG emissions to a level which will have a significant impact onglobal climate change. b) Would the project conflict with an applicable p|an, policy or regulation, adopted for the purpose ofreducing the emissions mfgreenhouse gases? Less than Significant Impact. As discussed extensively obova, there is not yet a p|on, po|iuy, or regulation adopted to reduce GHG emissions which is applicable tothe Proposed Project. The City of Newport Boaoh, howevor, has implemented an informal policy for the environmental evaluation of potential GHG impacts of proposed projects. That policy provides that, until more guidance is provided from the expert agencies such as CARBand/or SCAQMD. the City intends toconsider projects emitting 1.600 metric tons of COzo or |eoa per year to be less than significant contributors to global climate change, thereby not requiring further analysis. For projects exceeding the screening threshold of 1.600 metric tons Of CO2e emissions per year, the City will consider those projects to have significant impacts if they either (1) are not substantially consistent with policies and standards set out in federa|, state, and local plans designed to reduoaGHGs or(2)would emit more than 6.000 metric tons nfCO2e per year. Projects that do not meet these thresholds would be considered tohave significant innpaotu, and thus could be expected to impede the Stato'o mandatory requirement under AB 32 to reduce statewide GHG emissions to 1990 levels by 2020. As set forth above, in a "worst case" year, the Proposed Project's daily COze emissions during construction will equal no more than 184 metric tons. The operational activities of the Proposed Pnojaot, which, under CEQA, must be evaluated not in ''abnn|ute" ternno, but rather by comparison to existing environmental nonditions, will not only be well below the City'o informal threshold at 196 metric tons per year on an absolute baois, but will actually reduce overall operational GHG emissions byapproximately 378metric tons per year onanongoing basis. Theroforo, not only will the Proposed Project not conflict with any adopted p|an, po|icy, or regulation pertaining to GHG emissions and comply with the City'u informal GHG throaho|d, it will actually reduce GHG emissions unolong-term basis. Aaaresult, the Proposed Project will not produce GHG emissions toalevel which will have osignificant impact onglobal climate change. Speculation and Guidelines Section 15Y45 Finally, it must also be noted that Section 15145 of the CEQA Guidelines provides that "[i]f, after thorough investigation, a lead agency finds that a particular impact is too speculative for evaluation, the agency should note its conclusion and terminate discussion ofthe impooi." Beyond the analysis contained inthis K4ND, vvhiuh, standing a|one, complies with CEQA'o analysis nequinomento, baohnioo| data does not yet exist that would allow the City to determine without the use of undue speculation how a project of this size wou|d, relative to other proposed projects throughout the vvor|d, contribute to global climate change. Evaluation using speculative ''par capita" or other projections of worldwide GHG emissions based upon projections of population growth over many decades may provide valuable information, but would not constitute an analysis of the "incremental affoctn" of the project in either of the contexts identified in Section 15130(b) of the CE(JA Guidelines which are discussed above. Therefore, because (i) CEC>A prohibits speculative analysis and (ii)the Proposed Pro]eot'e projected GHG emissions will not exceed those generated under existing environmental conditions, further analysis is not required. Mitigation Measures Because there are no impacts related to global climate change, no mitigation measures are required. However, it should be noted that the following standard conditions and project design features have been incorporated into the Proposed Project and will contribute to the Proposed Projeot'o net long term reduction ofGHG emissions. SC'12 All new buildings shall meet Title 24requirements. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 63 PDF-1 Design of buildings shall take into account the location of building air intake to maximize ventilation efficiency and incorporate natural ventilation. PDF-2 The buildings shall incorporate energy -conserving heating and lighting systems. PDF-3 The project shall incorporate fast-growing, low water use landscape to enhance carbon sequestration and reduce water use. a) Would the project create a significant hazard to the public or the environment through routine transport, use, or disposal of hazardous materials? Less than Significant with Mitigation Incorporated. Construction activities associated with the proposed project would include oil, gas, tar, construction materials and adhesives, cleaning solvents and paint, and other similar construction -related materials. Transport of these materials to the site and use on the site would only create a localized hazard in the event of an accident or spills. Hazardous materials use, transport, storage and handling would be subject to federal, state and local regulations to reduce the risk of accidents. Equipment maintenance and disposal of vehicular fluids is subject to existing regulations, including the National Pollutant Discharge Elimination System (NPDES). Given the nature of the project in terms of scope and size (i.e., redevelopment of existing private golf and tennis facilities), it is anticipated that normal storage, use and transport of hazardous materials will not result in undue risk to construction workers on the site or to persons on surrounding areas. The use and disposal of any hazardous materials on the site and in conjunction with the project will be in accordance with existing regulations. With the exception of quantities of pesticides, fertilizers, cleaning solvents, paints, etc., that are typically used to maintain the golf course located on the property, on -going operation of the Newport Beach Country Club and proposed residential and resort uses will not result in the storage or use of significant quantities of hazardous materials beyond that currently used. As a result, no significant impacts are anticipated related to the use, disposal and/or storage of hazardous materials in association with the proposed uses. As indicated in Section Vlll.c, remediation of the ACM and LBP in accordance with regulatory requirements would avoid any potential impacts previously identified. No additional mitigation measures are required. b) Would the project create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? Less than Significant Impact. According to historical sources and regulatory database information, the subject property (1600 East Coast Highway) was previously equipped with a 550-gallon underground gasoline storage (UST) tank that was installed in the southwestern corner of the property in 1965 and removed in 1987. A Summary of Remedial Operations Report was prepared (1987), which revealed that the tank had a dime -sized hole in the bottom. Subsequent sampling and laboratory analysis were undertaken that indicated elevated levels of hydrocarbon, including aromatic constituents' benzene, were present in the subsurface soil below the excavation pit. Excavation and sampling of the soils were conducted, which indicated that the constituents analyzed were non-detect14 and closure was granted by the Orange County Health Authority (sic). Based on the results of the previous investigation and regulatory closure, the former 550-gallon UST in the southwestern portion of the subject property is not expected to represent a significant environmental concern. The proposed project's demolition and construction do not involve any activities and/or uses that would utilize hazardous materials or other substances that would, if released into the environment, create a safety or health hazard, other than those which are part of the existing environmental conditions because they are currently used to maintain the golf course and related facilities. The nature of the existing golf course use involves the application, storage, and mixing of pesticides and herbicides on the property. 14Partner Engineering and Science, Inc.; Addendum Letter dated March 29, 2010. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 64 The chemicals are utilized to service the golf course greens and fairways. The chemicals, fertilizers and other hazardous materials will continue to be maintained on the premises in accordance with existing and future regulatory storage and use requirements. As a result, no significant impacts are anticipated and no mitigation measures are required. In addition, two 55-gallon drums of waste oil within the maintenance area of the golf course were observed during the field investigation conducted during the Phase I ESA. The drums were used to store waste oil during golf cart repair activities and were stored over secondary containment. No spills, leaks or drains were observed near the vicinity of the drains. Based on the good housekeeping practices and lack of direct conduit to the subsurface of the subject property near the waste oil drums, these drums are not expected to represent a significant environmental concern. No changes in these operations or activities are anticipated as a result of project implementation. Continued compliance with regulatory requirements will ensure that no potentially significant impact would occur. No mitigation measures are required. Two ponds are located within the boundaries of the golf course. No violations were noted during the research and information search. No hazardous materials were noted near the vicinity of the ponds, which are located throughout the golf course. Based on the lack of documented releases and evidence of hazardous materials near the ponds, they are not expected to pose a significant environmental concern or hazard. Finally, three (3) pole -mounted transformers were observed on the subject property. The transformers are not labeled indicating PCB content. No staining or leakage was observed in the vicinity of the transformers. Based on the good condition of the equipment, the transformers are not expected to represent a significant environmental concern. The transformers appear to be owned by Southern California Edison (SCE), which would be responsible for maintenance of these facilities. Additionally, no other potential PCB -containing equipment (e.g., interior transformers, oil -filled switches, hoists, lifts, dock levelers, hydraulic elevators, etc.) was observed on the subject property during the site reconnaissance. c) Would the project emit hazardous emissions or handle hazardous or acutely hazardous material, substances, or waste within one -quarter mile of an existing or proposed school? Less than Significant Impact. Visual asbestos surveys were conducted by Con -Test in 1992 and also during a Phase I ESA by prepared by Law/Crandall, Inc., in 1994. During that latter visual survey, several areas within the Newport Beach Country Club facilities were observed to have asbestos containing materials (ACM), including: • Floor tile located in the back office of the first floor of the clubhouse. • Vinyl flooring located on the second floor next to the ballroom of the clubhouse. • Floor tile located on the first floor in the women's restroom near the office area of the clubhouse. • Vinyl flooring located on the first floor in the restaurant waiter's room of the clubhouse. • Spray -applied acoustical ceiling located in the manager/receptionist offices, professional shop, dressing room, and women's locker room of the clubhouse. • Exterior plaster located outside the professional shop of the clubhouse. • Air cell pipe insulation located in the restroom hallway of the kitchen, janitor storage room, and the roof attic mechanical area of the clubhouse. • Air cell duct insulation located in the roof attic mechanical area. • Pipe elbow insulation located in the roof attic mechanical area of the clubhouse. • Roof penetration sealant located at the perimeter flashings and penetrations of the low and high roof of the clubhouse. The visual asbestos survey conducted by Law/Crandall, Inc., also concluded that the ACM reported in a prior survey conducted in 1992 by Con -Test was still present at the site. The Law/Crandall asbestos survey recommended that the ACM be maintained in place by instituting an operations and maintenance (O&M) program (i.e., repair damaged asbestos, clean up of contaminated areas, notification and training of employees, routine inspections of ACM, etc.), which should continue until the ACM is removed. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 65 A limited visual evaluation of accessible areas was also conducted during the preparation of the most recent Phase I ESA prepared by Partner Engineering and Science, Inc., for the presence of suspect ACM. Based on that limited survey, suspect ACMs were noted in the acoustic ceiling tiles, vinyl floor tiles, and drywall systems within the buildings located on the subject property. All of the ACM and PACM (presumed asbestos -containing materials) were noted to be in good condition. Demolition of the existing Golf Clubhouse and other structures, which were constructed in 1964, is proposed by the applicant. Without proper remediation, it is possible that ACM could be released into the environment; however, according to the Environmental Protection Agency (EPA), ACM and PACM that are intact and in good condition can, in general, be managed safely in -place under an Operations and Maintenance (O&M) program until removal is dictated by renovation, demolition, or deteriorating material conditions. As indicated above, an O&M program was recommended in 1994 following completion of the Law/Crandall asbestos survey. In addition to ACM, it is also possible that lead -based paint (LBP) may also exist within the structures; however, due to the commercial nature of the current use of the property, LBP was not considered within the scope of the Phase I ESA. Because the structures were built in 1964, it is also possible that LBP may exist within the structures. Similar to ACM, the release of LBP into the environmental could pose a potential health risk, given the proximity of the residential uses in the project environs. Therefore, prior to any disturbance of the structures and construction materials within the project site, a comprehensive ACM and LBP survey shall be conducted and appropriate measures prescribed to ensure that no release of either ACM or LBP occurs, including during remediation and transport and disposal of those materials. Remediation shall comply with all applicable regulatory requirements. Air emissions of asbestos fibers and leaded dust would be reduced to below a level of significance through compliance with existing federal, state, and local regulatory requirements. d) Would the project be located on a site which is included on a list of hazardous materials sites which complied pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? No Impact. Information from standard federal, state, county, and city environmental record sources provided by Track Info Services Environmental FirstSearch was included in the Phase I ESA. This information revealed that with the exception of the UST previously discussed (refer to Section Vlll.b), the subject property is not included on any lists of hazardous materials sites compiled pursuant to Government Code Section 65962.5. Table 5 summarizes the results of the data base records searches, which revealed that no environmental concerns were identified on the site or within the requisite distances. Based on the database search conducted for the proposed project and included in the Phase I ESA, neither the subject property nor other properties identified within one mile of the site would expose the site and/or future users to an environmental concern or hazard. No significant impacts are anticipated and no mitigation measures are required. Radon has been identified as a potentially hazardous element. The U.S. Environmental Protection Agency (EPA) has developed a map to assist National, State, and local organizations to target their resources and to implement radon -resistant building codes. The EPA has identified a limit of 4.0 picoCuries per Liter (pCi/L) as the "Action Limit" for Radon. Radon sampling was not conducted as part of the Phase I ESA. However, review of the EPA Map of the Radon Zones places the subject property in Zone 3, where average predicted radon levels are less than 2.0 pCi/L. Therefore, potential impacts are anticipated to be less than significant. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 66 Table 5 t. ... Newport Applicable Database Radius Results Federal National Priorities List (NPL) 1 Mile No sites Federal Comprehensive Environmental Response, Compensation and Liability Information System Y2 Mile No sites (CERCLIS) Federal CERCLIS — No further Remedial Action Y2 Mile No sites Planned (NFRAP) Federal Resource Conservation and Recovery Act 1 Mile No sites (RCRA) Corrective Action (CORRACTS) Facilities Federal RCRA Treatment, Storage and Disposal Y2 Mile No sites (TSD) List Federal RCRA Generator List 1/8 Mile 2 facilities Federal Institutional Controls/Engineering Controls Y4 Mile No sites (IC/EC) Federal Emergency Notification Systems (ERNS) __ No sites on or adjacent to the subject property Tribal lands 1 Mile No sites State/Tribal Sites 1 Mile No sites State Spills Sites (SPILLS) 1/8 Mile No sites Solid Waste Landfill Facilities (SWLF) Y2 Mile No sites State/Tribal Leaking Underground Storage Tanks Y2 mile 21 sites 1/8 Mile 8 sites (LUST) State/Tribal Underground Storage The subject property and 3 Tank/Aboveground Storage Tank List (UST/AST) 3 additional sites State/Tribal VCP Y2 Mile No sites State/Tribal Brownfield Sites Y2 Mile No sites 'These sites are not located adjacent to the site and, based on the relative distance, are not expected to pose a significant environmental concern. 2None of the UST sites identified in the database search include such facilities as the Newport Police Department, service stations, etc., which do not pose a potential environmental concern or hazard to the subject property. 3Neither the subject property nor the UST/AST sites identified in the Phase I ESA pose a potential environmental concern or hazard. SOURCE: Partner Engineering and Science, Inc. (April 3, 2009) As indicated above, no recognized environmental conditions (REC)' were identified during the on -site investigation and/or database search conducted for the proposed project and discussed in the Phase I ESA. As a result, no potentially significant health hazards or environmental hazards are anticipated and no mitigation measures are required. 'The presence or likely presence of any hazardous substance or petroleum product on a property under conditions that indicate an existing release, a past release, or a material threat of a release of any hazardous substances or petroleum products into structures on the property or into the ground, groundwater, or surface water of the property. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 67 e) For a project within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? No Impact. The project site is located approximately 4.0 miles south of John Wayne Airport (JWA). A portion of the Newport Beach Country Club property is located within the Airport Environs Land Use Plan (AELUP) Notification Area (i.e., FAR Part 77) for JWA. Although operations at JWA would not pose a safety hazard for the golf course and related facilities or future occupants and/or visitors at the site due to the proximity of the project to the airport, the City is required to submit the PC Amendment to the Airport Land Use commission (ALUC) for a determination of consistency in accordance with Section 4.3 of the AELUP prior to adoption by the City. Therefore, no significant impacts are anticipated and no mitigation measures are required. f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? No Impact. The subject property is not located within proximity to a private airstrip. Development of the site as proposed will not result in potential adverse impacts, including safety hazards, to people utilizing the proposed golf and tennis amenities or others residing or working in the project area. Therefore, no significant impacts will occur as a result of project implementation and no mitigation measures are necessary. g) Would the project impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? Less than Significant Impact. The City of Newport Beach has prepared an Emergency Operations Plan that designates procedures to be followed in case of a major emergency. Pacific Coast Highway is designated as an evacuation route in the City. The project site is not designated for emergency use within the Emergency Operations Plan. The primary concern of the Public Safety Element and the City of Newport Beach is in terms of risks to persons and personal property. Although the site is subject to seismic shaking, development pursuant to building and fire code requirements will ensure that the potential impacts are minimized or reduced to an acceptable level. The site is not located within a flood hazard area or subject to such potential disasters. Development of the subject property as proposed will not adversely affect either the evacuation routes or the adopted emergency operations planning program(s) being implemented by the City of Newport Beach. Potential circulation impacts associated with construction will be temporary in nature and will be addressed through the Construction Staging Plan that will be implemented (refer to Section XVI.f.) In addition, any construction vehicles within the public right of way are prohibited from completely blocking vehicular and emergency access by the Vehicle Code. As a result, potential short-term circulation impacts associated with construction would not be significant. h) Would the project expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? No Impact. Neither the project site nor the surrounding areas are not located within a "Potential Fire Hazard Area" as identified by the Newport General Plan Public Safety Element. The subject property is located within an urbanized area of the City of Newport Beach. No significant areas of natural vegetation and/or habitat exists on the site and the proposed project would not be directly affected by the potential for wildland fires. There are no major urban or wildland fire hazards that pose a significant threat to the development. Therefore, the site is not subject to a potential risk of wildland fires. No significant impacts as a result of wildland fires will occur if the project is implemented and no mitigation measures are necessary. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 68 Mitigation Measures The following measures shall be implemented to ensure that no potentially significant hazards or hazardous material impacts identified in the preceding analysis occur. SC-14 Prior to any disturbance of the construction materials within the Golf Clubhouse and/or the Tennis Clubhouse, a comprehensive ACM and LBP survey shall be conducted. Any repairs, renovations, removal or demolition activities that will impact the ACM and/or LBP or inaccessible ACM shall be performed by a licensed asbestos contractor. Inaccessible suspect ACM shall be tested prior to demolition or renovation. Proper safety procedures for the handling of suspect ACM and LBP shall be followed in accordance with federal, state and local regulatory requirements federal and California Occupation Safety and Health Administration (OSHA), and Air Quality Management District (AQMD) Rule 1403, which sets forth specific procedures and requirements related to demolition activities involving asbestos containing materials and SCAQMD Regulation X - National Emission Standards For Hazardous Air Pollutants, Subpart M - National Emission Standards For Asbestos, which include demolition activities involving asbestos. SC-15 During demolition, grading, and excavation, workers shall comply with the requirements of Title 8 of the California Code of Regulations Section 1532.1, which provides for exposure limits, exposure monitoring, respiratory protection, and good working practice by workers exposed to lead. Lead -contaminated debris and other wastes shall be managed and disposed of in accordance with the applicable provision of the California Health and Safety Code. IX. HYDROLOGY AND WATER QUALITY a) Would the project violate any water quality standards or waste discharge requirements? Less than Significant impact. Waste discharges associated with this project that could affect water quality would be limited to non -point source discharges, including potential storm water runoff of construction materials and wastes and storm water runoff from the developed site. This project would not generate any point sources of water pollution; all wastewater generated by the proposed project would discharge directly to the City's sanitary sewer system, which would not affect the present permit to operate the affected wastewater treatment plant. Because the proposed project consists of development similar to existing and adjacent properties, the raw sewage that would be generated by the proposed project would be similar in nature to that now generated and would not significantly affect wastewater treatment. Potentially adverse water quality impacts during the construction phases would be avoided through compliance with existing regulatory programs administered by the City of Newport Beach and the Santa Ana Regional Water Quality Control Board (RWQCB). While it is impossible to anticipate all potential environmental issues that could arise on a daily basis during the course of the project, the site will be designed to address sediment and erosion control for both temporary (i.e., construction) and long-term (i.e., operational) activities occurring on the subject property. The water quality features incorporated into the project will be selected to address the main pollutants of concern for a project of this type, and for the impacted water body, i.e. Newport Bay. Newport Bay, which is located approximately 0.5 mile from the site, is listed as an "impaired" water body under Section 303(d) of the Clean Water Act, with respect to copper, nutrients, pathogens, pesticides (e.g., chlordane, DDT, PCBs, etc.), and sediment toxicity. The pollutants of concern associated with the proposed project include sediment, nutrients, pathogens (i.e., bacteria/viruses), and pesticides. Urban runoff pollutants and their potential sources are summarized in Table 6. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 69 l PollutantsUrban Runoff ..I4AWyJ Pollutants 7 Potential Source 303(d) Listing Sediment/Turbidity Landscape Activities Lower Newport Bay (801.14) Sediment Nutrients Fertilizers Lower Newport Bay (801.14) Nutrients Bacteria and Viruses Animal Waste Lower Newport Bay (801.14) Nutrients Oil and Grease Automobiles N/A Oxygen Demanding Substances Landscape Activities N/A Trash and Debris Human Waste N/A Pesticides Landscape Activities Lower Newport Bay (801.14 (Chlordane, DDT, Organos hosphate pesticides SOURCE: Adams Streeter, Civil Engineers, Inc. (January 14, 2009 Implementation of the water quality features prescribed in the NPDES Technical Study prepared for the project, prior to issuance of the grading permit, will ensure that this project does not violate any water quality standards during construction. As a result, no significant impacts are anticipated and no additional mitigation measures are required. In accordance with the Water Quality Management Plan that will be prepared for the project, appropriate BMPs will be incorporated to ensure that water quality impacts are minimized, including for the hand car wash, which includes a feature to capture and clean the wash water before it enters the sanitary sewer system. It is important to note that no water quality features exist within the limits of the project site. As a result, surface runoff currently emanating on the site and entering Newport Harbor is not treated. However, project implementation will incorporate BMPs that will treat the surface runoff associated with the existing and proposed development and will discharge treated water that will meet discharge requirements prescribed for Newport Harbor. Tables 10 (General Plan Policy Analysis) and 11(Coastal Land Use Policy Analysis) in Section X (Land Use and Planning) provide a discussion of the project's consistency with relevant General Plan and Coastal Land Use Plan policies related to water quality. As indicated in that discussion, the proposed project is consistent with meeting the intent of minimizing potential water quality impacts. Therefore, no long-term water quality impacts are anticipated as a result of project implementation. b) Would the project substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? No Impact. This project would not result in a significant increase in water demand and the project's potable and non -potable water demands would be met through a connection to the City's domestic water system. The proposed project would actually result in some increased groundwater recharge through its design, which includes a decrease in the amount of impervious surfaces (i.e., a concomitant increase in the amount of pervious surfaces on the site), thereby resulting in increased groundwater recharge. No water wells are proposed or required to meet the water demands of this project. There are no water wells located on or near the site, and since this project would not affect any existing wells or require any new water wells, the project will not result in the lowering of the water table. No significant impacts to groundwater recharge are anticipated and no mitigation measures are required. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 70 c) Would the project substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off -site? Less Than Significant Impact. No stream or river exists on site, which is developed with a Golf Club, clubhouse and related ancillary facilities and the Tennis Club. The portion of the property that is the subject of the proposed improvements encompasses less than 20 acres within five drainage areas. Existing surface runoff generated on the subject property is directed through each drainage area to existing on -site storm drain facilities before entering a 69-inch reinforced concrete pipe (RCP) that extends under Coast Highway and to a discharge point in Newport Harbor west of the site, which has been identified as containing "environmentally sensitive areas" as defined by the 2003 Orange County Drainage Area Management Plan (DAMP) and the Water Quality Control Plans for the Santa Ana Basin. Although on -site soils would be exposed during grading of the property, a variety of Best Management Practices (BMPs) would be implemented both during construction and during the long-term operation of the proposed project. For example, sediment control BMPs will be installed and maintained at all operational storm drain inlets and permanent erosion control BMPs (either physical or vegetation) shall be in place and operational during grading and construction to ensure that on- and off -site erosion is minimized. Furthermore, compliance with applicable building, grading and water quality codes and policies, which are performed during the plan check stage, will ensure that surface flows can be accommodated and water quality protected, including potential erosion. As a result, no significant impacts are anticipated and no mitigation measures are required. d) Would the project substantially alter the existing drainage pattern of the site or area, including through the alteration of a course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on or off - site? Less than Significant Impact. As indicated above, project implementation will alter the existing drainage conditions on the site. At the present time, the development area (i.e., less than 20 acres) is divided into five drainage areas. Drainage Areas A and B comprise the existing Golf Clubhouse and parking lot, totaling 11.59 acres. Stormwater runoff occurring in Drainage Area A (7.7 acres) occurs as sheet flow in a southeasterly direction towards a curb and gutter that empties into a catch basin in the southerly corner of the parking lot. The catch basin is connected to an 18-inch RCP pipe, which connects to an existing 24-inch RCP that runs parallel to Coast Highway. Area B, comprised of 3.89 acres that encompass a portion of the grassy golf course, sheet flows towards Irvine Terrace Road and into a cross gutter, where it is directed to two catch basins on Irvine Terrace Road. This flow ultimately connects to the same 24-inch RCP pipe identified for Drainage Area A. The 25-year volume (Q25) for Drainage Areas A and B is 26.56 cubic feet per second (cfs) at elevation 85.0 msl in the 24-inch RCP. The combined flow conveyed in the 24-inch RCP enters an existing 69-inch RCP storm drain, which conveys the runoff to Newport Bay where it is discharged. Drainage Area C encompasses 5.62 acres within the tennis club area in the easterly portion of the property. Surface runoff within Drainage Area C sheet flows over the tennis courts and onto the parking lot; storm flows then sheet flow over the parking lot, through a curb cut-out and into a drainage sump consisting of an 18-inch square inlet. Flows are conveyed from the inlet, via an 8-inch PVC pipe, which also connects to the 69-inch RCP. The Q25 volume generated in Drainage Area C is 14.27 cfs, which enters an existing 8-inch polyvinyl pipe (PVC) and then a 69-inch RCP. The existing 8-inch PVC pipe that was installed during the Corporate Plaza West Extension is deficient (in size) and cannot efficiently convey storm flows under the existing conditions. The smallest drainage area (Drainage Area D) encompasses 0.19 acre in the southeastern corner of the Balboa Bay Tennis Club. Less than 1 cfs (Q25) is directed south where it enters the parking lot of the adjacent commercial office property and is accommodated in the existing storm runoff facilities of that property. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 71 Drainage Area E encompasses 1.24-acres that remain within in the tennis club (six tennis courts and entry to the parking lot). Runoff generated on the property sheet flows over the existing tennis courts into a concrete v-ditch, into a curb and gutter, and finally into a 12-inch inlet. Flows travel from the inlet, via a 12-inch PVC, which transitions to an 18-inch RCP before entering the 24-inch RCP in Coast Highway. All of the surface flows emanating on the site are conveyed in the existing 69-inch RCP that ultimately discharges into Newport Harbor. A summary of the existing storm flows generated within each of the drainage areas is presented in Table 7. Existing Runoff Newport Beach Country Club Sub -Area Area In Acres) Flow (Q) (cfs) A & B 11.59 26.56 C 5.62 14.27 D 0.19 0.82 E 1.24 4.16 Total 18.64 45.81 SOUCE: Adams -Streeter Civil Engineers Inc. (July 10, 2009 The proposed development is also divided into five drainage areas; however, these areas have been reconfigured based on the grading associated with the project design. Drainage Areas A and B (11.68 acres) comprise nearly the same areas as previously identified; however, Drainage Area A has decreased in size to 6.59 acres and Drainage Area B has increased in size to 5.09 acres. Storm flows emanating from Drainage Areas A and B are proposed to be captured using a storm system comprised of catch basins and pipes ranging in size from 8 inches to 24 inches. The proposed storm drain system will be installed within the site's parking lot and within the site's entry westerly parkway and will connect to the existing 24-inch RCP storm drain that connects to the existing 69-inch RCP storm drain. The post - development runoff volume (Q25) is estimated to be 27.82 cfs. The existing 24-inch storm drain is not adequate to accept and convey the existing or proposed storm flows. Therefore, this facility will be upsized. Drainage Area C will be expanded to encompass 6.16 acres, including some of the existing tennis courts, a new center court, Tennis Clubhouse, pool, The Bungalows, and The Villas along with interior street and paths. Storm flows for Area C will be captured using a storm drain system comprised of catch basins and pipes ranging in size from eight to 30 inches. Because inadequate storm drain stubs were provided to the project area (i.e., one 12-inch PVC pipe and one 8-inch PVC pipe), a 30-inch RCP will be constructed in the parking lot of the adjacent property. This Drainage Area will generate a Q25 volume of 20.74 cfs. Drainage Area D encompasses 0.63 acre in the southeastern corner of the tennis facility. This area will consist of the newly designed and/or reconfigured parking lot for the Tennis Club. Storm flows emanating in Drainage Area D will sheet flow in a southerly direction to the existing parking lot located on the adjacent property. Once in the parking lot, it will sheet flow into existing catch basins and into the existing 69-inch RCP. This drainage area will generate a Q25 of 2.64 cfs. Drainage Area E comprises the smallest of the five drainage areas and is located near the southwestern limits of the tennis facility. The 0.19-acre area will generate a storm flow volume of 0.81 cfs (Q25), which would travel to the southwest corner of the site where it would enter a catch basin that will connect to an existing 8-inch PVC pipe that would also connect to the 69-inch RCP south of the subject property. Table 8 provides a summary of the post -development runoff conditions. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 72 Table 8 Post -Development Runoff Newport Beach Country Club Sub -Area Area (In Acres) Flaw (Q) (cfs) A & B 11.68 27.82 C 6.16 20.74 D 0.63 2.64 E 0.19 0.81 Total 18.66 52.01 SOUCE: Adams -Streeter Civil Engineers Inc. (July 10, 2009) Project implementation would result in an increase of approximately 13.5 percent in storm surface runoff volume. Table 9 provides a comparison of the pre- and post -development runoff characteristics. Table 9 Pre- and Post Development Runoff Comparison Newport Beach Country Club Sub -Area Existing Runoff (Q2s cfs Developed Runoff (025 cfs) Difference (Q25 cfs) A & B 26.56 27.82 1.26 C 14.27 20.74 6.47 D 0.82 2.64 1.82 E 4.16 0.81 -3.35 Total 45.81 52.01 6.2 SOUCE: Adams -Streeter Civil Engineers Inc. (July 10, 2009 Although the land use for the proposed project has a lower runoff coefficient than that under existing conditions, the overall flow volumes have increased as a result of the lower time of concentration that occurs when the storm flows are routed in a pipe versus sheet flow under existing conditions. As indicated above, project implementation will result in an increase of 6.2 cfs entering the 69-inch RCP that will convey the storm flows to Newport Harbor. This increase in runoff equates to a 1.3 percent increase in the existing 462 cfs that currently flows in this facility. Because the time of concentration within the 69- inch RCP is much greater than the site's contribution in flow, the increased runoff generated by the proposed project would be negligible and, therefore, would not have a significant impact on the existing storm drain facilities. The site will be graded and designed to facilitate post -development storm flows. Therefore, no significant impacts are anticipated and no mitigation measures are required. e) Would the project create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? Less than Significant Impact. Although project implementation will result in a decrease in impervious surfaces on the site, additional surface runoff would be generated (refer to the previous discussion in Section IX.d). However, the post -development impervious surfaces would be reduced by approximately 2,300 square feet, which would not generate a significant amount of stormwater runoff (i.e., an increase NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 73 of 6.2 cfs). The existing storm drainage collection and conveyance facilities within the project area (i.e., 18- and 24-inch pipes previously described) will be upgraded as determined necessary to provide adequate capacity to accommodate the proposed project. No significant impacts are anticipated and no mitigation measures are required. f) Would the project otherwise substantially degrade water quality? Less than Significant Impact. As indicated previously, Newport Bay is listed as an "impaired" water body under Section 303(d) of the Clean Water Act, with respect to metals, pesticides and priority organics. Changes in surface runoff are anticipated as a result of the development of the subject property as proposed that could result in potential impacts to water quality. However, the project will be designed to comply with all relevant building, grading and water quality codes and policies to ensure that there will not be an adverse effect on water quality, either during construction or during the operational life of the project. The applicant will be required to prepare a Stormwater Pollution Prevention Plan (SWPPP), which will identify both structural and non-structural features intended to minimize erosion and sedimentation as well as other water quality impacts that would occur during the construction phase. In addition, a Conceptual WQMP identifies several measures that would minimize potential water quality impacts. Final plan check will include the preparation of an adequate drainage and erosion control plan that must be found to meet applicable standards. Therefore, no significant impacts are anticipated and no mitigation measures are required. g) Would the project place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? No Impact. The subject property is not located within the 100-year flood plain as delineated on the Flood Insurance Rate Map (FIRM) by the Federal Emergency Management Agency (FEMA) for the City of Newport Beach. The site is located in Zone X (Other Areas), which is classified by FEMA as "Areas determined to be outside the 0.2 percent annual chance floodplain." During a 100-year storm, the site would be protected from flooding, as the water surface for all street flows would remain within the gutter and street; average depth of flow for the entire site is less than one foot. Secondary overflow for the site is provided by outletting through the site's interior streets to the exit on Coast Highway. As a result, no homes would be placed within the 100-year flood plain and no significant impacts would occur. h) Would the project place within a 100-year flood hazard area structures which would impede or redirect flood flows? No Impact. No residential structures are proposed to be located within the 100-year flood zone. Refer to the response to Section IX.g. i) Would the project expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? No Impact. As indicated above, the project site is not located within a flood hazard area or within an area subject to flooding due to dam or levee failure. Figure S3 (Flood Hazards) in the Newport Beach Safety Element indicates that in the event of failure of either the San Joaquin Reservoir or the Big Canyon Reservoir, the site would not be subject to flooding. Therefore, project implementation will not result in a potentially significant impact; no mitigation measures are required. j) Would the project be subject to inundation by seiche, tsunami, or mudflow? Less than Significant Impact. The subject property is located inland of Coast Highway and is not within the area of influence of Newport Harbor area. Tsunamis (i.e., seismic sea waves) are generated on offshore faults by movement that is primarily vertical in nature. The subject property is not within a Tsunami Hazard Zone illustrated on Figure S1 (Coastal Hazards) in the City's Safety Element. According to that figure, in the event of a tsunami, surge waves would threaten the lower elevations along the NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 74 Newport Beach coastline and in Newport Bay; however, the site is not subject to the effects of a tsunami. No significant impacts are anticipated and no mitigation measures are required. Seiche is defined as a standing wave oscillation effect generated in a closed or semi -closed body of water caused by wind, tidal current, and earthquake. Seiche potential is highest in large, deep, steep -sided reservoirs or water bodies. The nearest such water bodies include San Joaquin Reservoir, which is located approximately two miles northeast of the site and Big Canyon Reservoir, located approximately one mile east-northeast of the subject property. The subject property is located well beyond the area that could potentially be inundated as a result of a seiche. In addition, Newport Bay, which is located approximately one-half mile east of the project area, lacks significant potential for damaging seiche because it is very shallow. As a result, no significant impacts are anticipated and no mitigation measures are required. k) Would the project result in significant alteration of receiving water quality during or following construction? Less than Significant Impact. Refer to responses to Section IX.a and Section IX.f. 1) Would the project result in potential for discharge of stormwater pollutants from areas of material storage, vehicle or equipment fueling, vehicle or equipment maintenance (including washing), waste handling, hazardous materials handling or storage, delivery areas, loading docks or other outdoor work areas? Less than Significant Impact. Stormwater discharge from the site will be virtually the same as the stormwater currently generated on the site, which are those associated with the residential and recreation uses. In addition, the proposed residential and bungalows would also contribute similar stormwater pollutants that may include detergents, fertilizers, pesticides, automobile hydrocarbons, etc., typically associated with those uses. Although some temporary impacts associated with construction of the proposed structures may occur (refer to Sections IX.a through IX.f), no new long-term outdoor storage, maintenance, fueling or work areas are proposed. The golf cart storage and maintenance areas, which are currently located above grade, partially open on one side, are proposed to be fully enclosed in the lower level of the new clubhouse. Project implementation will result in improvements to the stormwater discharges associated with site development. The project will be designed to comply with all requisite codes and policies prescribed by the City of Newport Beach to ensure that stormwater impacts during or after construction are minimized or eliminated to the maximum extent possible. For example, the City's standard practice is to require street sweeping as a construction control measure, rather than washing down the street surface, to avoid runoff of construction wastes, sediment and debris into the storm drain system or the bay. Other construction BMPs would include those that address sediment control and waste management and materials pollution control. Little or no pollution control measures exist within the property, which was developed before the more stringent regulatory controls were enacted. As a result, with the implementation of such structural and non-structural BMPs as well as the project's compliance with the requirements imposed by the City, no significant impacts are anticipated and no additional mitigation measures are required. m) Would the project result in the potential for discharge of stormwater to affect the beneficial uses of the receiving waters? Less than Significant Impact. Refer to responses to Section IX.a and Section IX.f. n) Would the project create the potential for significant changes in the flow velocity or volume of stormwater runoff to cause environmental harm? Less than Significant Impact. Project implementation will result in a decrease in impervious surfaces on the site. It must be noted that even though the land use for the proposed development has a lower runoff coefficient than the existing condition, the overall flow volumes have increased. This is due to the lower time of concentration that occurs when the storm flows are routed in a pipe versus the current condition of sheet flow. However, the site would be graded in order to ensure that post -development NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 75 runoff is minimized and, further, is directed to existing storm drain facilities that have adequate capacity to accommodate the increase flows. As a result, this project would not result in adverse impacts due to changes in the flow velocity or volume of storm water runoff. o) Would the project create significant increases in erosion of the project site or surrounding areas? Less than Significant Impact. See responses to IX.a through IX.f. As previously indicated, part of the final plan check review includes the preparation of an adequate drainage and erosion control plan that must be found to meet applicable City standards. Implementation of this plan will ensure that potentially significant increases in erosion resulting from the proposed project will not occur. No mitigation measures are required. Mitigation Measures The applicant has prepared an NPDES Technical Study that identifies a range of BMPs and related water quality features to ensure that water quality impacts associated with the proposed project are reduced to an acceptable level. Implementation of BMPs that will be refined and included in the Stormwater Pollution Prevention Plan (SWPPP) will ensure that construction impacts are minimized. Similarly, BMPs will also be refined and incorporated into the project design to avoid post -construction impacts to water quality. Therefore, no significant impacts are anticipated and no mitigation measures are required. SC-16 Prior to issuance of a grading permit, the project applicant shall be required to submit a notice of intent (NOI) with the appropriate fees to the State Water Quality Resources Control Board for coverage of such future projects under the General Construction Activity Storm Water Runoff Permit prior to initiation of construction activity at a future site. As required by the NPDES permit, a Storm Water Pollution and Prevention Plan (SWPPP) will be prepared and will establish BMPs in order to reduce sedimentation and erosion. SC-17 Prior to issuance of a grading permit, the project applicant shall prepare a Water Quality Management Plan (WQMP) for the project and submit the WQMP to the City of Newport Beach for approval. The WQMP shall specifically identify Best Management Practices (BMPs) that will be used to control predictable pollutant runoff, including flow/volume-based measures to treat the "first flush." The WQMP shall identify at a minimum the routine structural and non-structural measures specified in the Countywide NPDES Drainage Area Master Plan (DAMP), which details implementation of the BMPs whenever they are applicable to a project, the assignment of long-term maintenance responsibilities, and shall reference the locations of structural BMPs. SC-18 Prior to issuance of a grading permit, the project applicant shall prepare a Storm Water Pollution and Prevention Plan (SWPPP). The SWPPP will establish BMPs in order to reduce sedimentation and erosion and prevent construction pollutants from leaving the site. The project shall also incorporate all monitoring elements as required in the General Construction Permit. The project applicant shall also develop an erosion and sediment control plan to be reviewed and approved by the City of Newport Beach prior to issuance of grading permit. SC-19 Future site grading and construction shall comply with the drainage controls imposed by the applicable building code requirements prescribed by the City of Newport Beach. X. LAND USE AND PLANNING a) Would the project divide an established community? No Impact. The 145-acre site is developed with golf and tennis facilities. The proposed project includes the construction of a larger Golf Clubhouse and modifications to the existing Tennis Club on the subject property. As indicated previously, the area surrounding the subject property is entirely developed with mixed -use development, including residential, professional office, commercial and governmental land NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 76 uses. Development of the site as proposed would not directly affect adjacent properties because it is consistent with the applicable development standards and requirements for site development as prescribed in the proposed Planned Community District development regulations. In particular, project implementation does not include features that would physically divide or otherwise adversely affect or change an established community (e.g., roadways, flood control channels, etc.). The proposed Golf Clubhouse is in keeping with the intensity of development and existing character in the project environs. No significant impacts will occur and no mitigation measures are required. b) Would the project conflict with any land use plan, policy, or regulation of an agency and jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? Less than Significant Impact. The Newport Beach General Plan, the Coastal Land Use Plan and the Newport Beach Zoning Code contain land use plans, policies and regulations of concern with respect to avoiding or mitigating an environmental effect. Consistency of the proposed project with applicable provisions and/or policies of the relevant Elements of the General Plan are addressed in Table 10. Table 10 General Plan Policy Analysis Newport Beach Country Club Policy No, General Plan Policy Consistency Analysis Land Use Element Maintain and enhance the beneficial and unique The proposed project includes an adoption of the PC character of the different neighborhoods, business District regulations, which will guide development districts, and harbor that together identify Newport occurring within the project site. The development LU 1.1 Beach. Locate and design development to reflect standards address building height, setbacks, landscaping, Newport Beach's topography, architectural diversity, architectural character, etc., and are intended to ensure and view sheds. that the City's unique character, which reflects both land use and architectural diversity, is maintained. The area in which the site is located is characterized by a variety of residential, commercial, recreation, and public land uses that reflect a range of densities and a variety of architectural styles, which contribute to the unique While recognizing the qualities that uniquely define its character of the City. The intensity of the proposed project neighborhoods and districts, promote the identity of the (i.e., larger Golf Club clubhouse and redeveloped tennis LU 1.2 entire City that differentiates it as a special place within center) and architectural character are compatible with the the Southern California region. variety of densities and styles within the area, which is "identity" consistent with the of the City. The architectural character of the proposed clubhouse and related tennis center development, including The Bungalows and The Villas, is consistent with the City's desire to differentiate Newport Beach from other coastal cities. Enhance existing neighborhoods, districts, and corridors, allowing for reuse and infill with uses that are The character of the proposed Golf Club, Tennis Club, The complementary in type, form, scale, and character. Bungalows, and The Villas is compatible with the existing Changes in use and/or density/intensity should be land uses and development intensities in the project area. considered only in those areas that are economically Additionally, the proposed land uses are allowed under the under performing, are necessary to accommodate existing General Plan. The project has been designed to Newport Beach's share of projected regional be compatible with the existing residential, commercial, LU 3.2 population growth, improve the relationship and reduce and open space/recreation that exists in the vicinity of the commuting distance between home and jobs, or project site. In addition, the area in which the project is enhance the values that distinguish Newport Beach as located is adequately served by existing infrastructure, a special place to live for its residents. The scale of including circulation, sewer, water, and storm drainage growth and new development shall be coordinated with systems. As a result, project implementation will not the provision of adequate infrastructure and public adversely affect those systems or the provision of services, including standards for acceptable traffic level adequate service to nearby development. of service. LU 4.1 Accommodate land use development consistent with The uses proposed by the applicant are consistent with the Land Use Plan. I the General Plan Land Use Element (i.e., land use NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 77 Policy No. General Plan Policy' Consistency Analysis designation), which designates the golf course site PR (Parks and Recreation) and the tennis site MU-H3/PR. The proposed Golf Clubhouse is within the 35,000 square foot allowable development limit permitted in Anomaly 74 of the Land Use Element. The tennis facility is located in Anomaly 46, which allocates 24 tennis courts with residential permitted in accordance with the MU-H3 designation. Per LU 4.3 Transfer of Development Rights, (Page 3-20.d of the General Plan) density transfers are allowed within the Newport Center area (refer to LU 6.14.3). Based on this policy, the transfer of 27 hotel units from Anomaly 43 to Anomaly 46 (i.e., subject property) may be permitted, subject to the approval of the City with the finding that the transfer is consistent with the intent of the General Plan and that the transfer will not result in any adverse traffic impacts. In addition to the Transfer of Development Intensity, within Newport Center there are remaining 20 single-family units allocated for the Newport Center to accommodate the 5 single-family homes needed for The Villas. The proposed land uses are consistent with the land use designation prescribed for the site as well as the TDR and residential allocation within Newport Center. Permit the transfer of development rights from a property to one or more other properties when: a. The donor and receiver sites are within the same Statistical Area. b. The reduced density/intensity on the donor site provides benefits to the City such as, but not limited to, the (1) provision of extraordinary open space, public visual corridor(s), parking or other amenities (2) preservation of an historic building or property or natural landscapes; (3) improvement of LU 4.3 the area's sale and development character; (4) Refer to Policy 6.14.3. consolidation of lots to achieve a better architectural design than could be achieved without lot consolidation; and/or (5) reduction of local vehicle trips and traffic congestion. c. The increment of growth transferred to the receiver site complements and is in scale with surrounding development, complies with community character and design policies contained in this plan, and does not materially degrade local traffic conditions and environmental quality. d. Transfer of Development Rights in Newport Center is governed by Policy 6.14.3. Although the site is not located adjacent to lower density residential development (e.g., single-family detached), the project has been designed to respect the proximity of the existing residential development adjacent to the project site. Specifically, single-family residential development is Require that the height of development in proposed in the area nearest to the existing residential nonresidential and higher density residential areas development to buffer the private recreation uses of the LU 5.1.2 transition as it nears lower density residential areas to Tennis Clubhouse. In addition, the proposed PC District minimize conflicts at the interface between the different text and regulations prescribe maximum building heights, types of development. setback requirements, etc., for each of the development components to ensure land use compatibility. The maximum building height has been established at 50 feet. The height of the proposed Golf Clubhouse is proposed to vary but would not exceed the maximum 50-foot height limit prescribed for that use. Require that properties developed with a mix of As illustrated in the proposed site plan, the proposed residential and non-residential uses be designed to project includes a new golf clubhouse, tennis clubhouse achieve high levels of architectural quality in and related amenities, twenty-seven (27) short-term LU 5.3.3 accordance with Policies 5.1.8 and 5.2.2 and planned visitor -serving units (Bungalows). And five (5) single-family to assure compatibility among the uses and provide residential dwelling units. The proposed project provides adequate circulation and parking. Residential uses adequate parking for each of the proposed uses. should be seamlessly integrated with non-residential Vehicular and pedestrian circulation has been designed to uses through architecture, pedestrian walkways, and accommodate both residents of the Villas, as well as No. LU 5.3.4 LU 6.14.2 LU 6.14.3 LU 6,14.6 LU 6.14.8 ICllillial NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 78 General Plan Pollc5 landscape. They should not be com walls or other design elements. Require that sufficient acreage be developed for an individual use located in a district containing a mix of residential and non-residential uses to prevent fragmentation and assure each use's viability, quality, and compatibility with adjoining uses. Provide the opportunity for limited residential, hotel, and office development in accordance with the limits specified by Tables LU1 and LU2. Development rights may be transferred within Newport Center, subject to the approval of the City with the finding that the transfer is consistent with the intent of the General Plan and that the transfer will not result in any adverse traffic impacts. Encourage that pedestrian access and connections among uses within the district be improved with additional walkways and streetscape amenities concurrent with the development of expanded and new uses. Require the execution of Development Agreements for residential and mixed -use development projects that use the residential 450 units identified in Table LU2 (Anomaly Locations). Development Agreements shall define the improvements and benefits to be contributed by the developer in exchange for the City's commitment for the number, density, and location of the housina units. guests and members of the Golf Club, and Tennis Club/spa and Bungalows. The architectural character of the uses is defined in the PC District Regulations to ensure that compatibility between the proposed uses and the nearby areas is maintained. As indicated above, each of the uses has been designed to complement the overall development proposed by the applicant. The three distinct uses are connected via the vehicular and pedestrian circulation system, including sidewalks and pedestrian pathways. Land use compatibility is achieved through a common landscape theme and design guidelines in the PC District Regulations to ensure that the architectural integrity of the project is not compromised. The project proposes a mix of land uses, including single- family residential, golf and tennis facilities and visitor - serving commercial (i.e., "Bungalows") uses. These uses are permitted in Table LU1. Residential development is permitted in Anomaly 46, as reflected in Table LU2. Project implementation includes the transfer of 27 hotel units from Anomaly No. 46 to the subject property. As indicated in the analysis of traffic, the proposed project would result in the generation of 221 daily vehicle trips for the 27 bungalows. Project implementation will result in the generation of 1,183 daily vehicle trips, including those generated by the bungalows (221 trips), which equates to a net reduction in not only daily trips (389), but also a.m. and p.m. peak hour trips (35) when compared to the existing land uses. The reduction of vehicle trips anticipated as a result of the proposed project will not result in any significant impacts to the existing traffic and circulation conditions in the project area. Therefore, the proposed project would not result in any significant traffic impacts. In addition, implementation of the proposed project is consistent with the intent of the Newport Beach General Plan, as reflected in this analysis. As indicated above, the project has been designed to be consistent with the surrounding land uses and promotes recreation and tourism. The project is consistent with the relevant policies in the Land Use and other elements of the General Plan. As indicated on the site plan, the proposed project provides for both pedestrian and vehicular access between the Golf and Tennis facilities. Sidewalks and pedestrian pathways are incorporated into the circulation system that are intended to accommodate pedestrians utilizing the golf and tennis/spa facilities as well as the future residents of the proposed Villas. The landscape plan includes plants materials that are intended to reflect and complement the existing character within the project area. The applicant has proposed a Development Agreement, which must comply with the provisions of this policy, including the identification of improvements and benefits resulting from implementation of the proposed project. Housing Element The ro'ect site does not include an- existing housing Support all reasonable efforts to preserve, maintain, and improve availability and quality of existing housing and residential neighborhoods, and ensure full utilization of existing City housing resources for as long into the future as physically and economically possible. p 1 However, the applicant is proposing five (5) semi -custom, single-family residential dwelling units on the subject property, which will improve the availability and quality of housing in the City. These dwelling units will supplement tha Citv'¢ hnusinn cunnly NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 79 Policy No. General Plan Policy Consistency Analysis Historical Resources Element Require that, in accordance with CEQA, new Although it is unlikely that archaeological and/or development protect and preserve paleontological and paleontological resources would be encountered during archaeological resources from destruction, and avoid grading and/or construction, the City requires that a and mitigate impacts to such resources. Through certified archaeological/paleontological monitor be FIR 2.1 planning policies and permit conditions, ensure the available during grading to ensure that if such resources preservation of significant archaeological and are encountered, grading activities can be diverted in paleontological resources and require that the impact order to evaluate the resources and recommend caused by any development be mitigated in appropriate measures to protect and/or preserve them. accordance with CEQA. Circulation Element The proposed project provides adequate parking as demonstrated in the Traffic and Parking Evaluation prepared by Kimley-Horn and Associates and prescribed Require that new development provide adequate, in the PC District regulations for the project. The project CE 7.1.1 convenient parking for residents, guest, business will meet the anticipated parking demand on -site with 398 patrons, and visitors. parking spaces. In addition to the parking proposed to accommodate the proposed uses, additional parking within two off -site parking easement areas encompass over 554 additional parking spaces that can be used for special events. As indicated above, the on -site parking provided totals 398 parking spaces, including 28 spaces that are allocated to Site and design new development to avoid use of the Tennis Clubhouse (28 required), 50 parking spaces for CE 7.1.8 parking configurations or management programs that the Bungalows/spa (49 required), and 300 parking spaces are difficult to maintain and enforce. for the Golf Club (244 required). In addition, 20 parking spaces are also proposed to accommodate the 5 Villas (20 required). Recreation Element Require developers of new residential subdivisions to The proposed project includes the development of five provide parklands at five acres per 1,000 persons, as semi -custom, single-family residential dwelling units. The stated in the City's Park Dedication Fee Ordinance, or residential component of the proposed project will be R 1.1 to contribute in -lieu fees for the development of public subject to the City's Park Dedication Fee Ordinance. It is recreation facilities meeting demands generated by the anticipated that the applicant will be required to pay the development's resident population, as required in the applicable in -lieu fee. City's Park Dedications Fee Ordinance. Natural Resources Element Water conservation measures will be required to be incorporated into the proposed project as prescribed in Chapter 14.16 (Water Conservation and Supply Level Establish and actively promote use of water conserving Regulations) and Chapter 14.17 (Water -Efficient devices and practices in both new construction and Landscaping) of the Newport Beach Municipal Code. In NR 1.2 major alterations and additions to existing buildings. addition, the proposed hand car wash will comply with This can include the use of rainwater capture, storage, Chapter 14.36 (Water Quality) to ensure that surface and reuse facilities. runoff associated with that use does not result in the degradation of either surface or groundwater. Finally, the BMPs are intended to meet the requirements prescribed in Chapter 14.36. Require all development to comply with the regulations The project applicant will be required to comply with the under the City's municipal separate storm drain system NPDES requirements established by the City, including NR 3.4 permit under the National Pollutant Discharge the preparation of a SWPPP to address construction Elimination System (NPDES). activities and a WQMP for long-term operations of the project. As indicated above, the proposed project will implement NR 3.5 Require that development does not degrade natural BMPs to improve the quality of both construction -related water bodies. and long-term runoff emanating from the site prior to their discharge into Newport Harbor. Require new development applications to include a NR 3.9 Water Quality Management Plan (WQMP) to minimize Refer to Response to Policy No. NR 3.4. runoff from rainfall events during construction and post - construction. Include site design and source control BMPs in all The proposed project complies with the requirement to NR 3.11 developments. When the combination of site design prepare a SWPPP and WQMP to address both and source control BMPs are not sufficient to protect construction and post -development water quality impacts. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 80 Policy No. General Plan Policy' Consistency Analysis water quality as required by the NPDES, structural Both site design and structural BMPs will be incorporated treatment BMPs will be implemented along with site into the project to ensure that surface flows emanating design and source control measures. from the subject property are treated prior to their discharge into Newport Harbor. The SWPPP and WQMP will be sufficient to protect water quality as prescribed by the NPDES requirements of the City. As required by the NPDES permit, a Storm Water Pollution and Prevention Plan (SWPPP) will be prepared and will Require grading/erosion control plans with structural establish both structural and non-structural BMPs in order to BMPs that prevent or minimize erosion during and after reduce sedimentation and erosion during the construction NR 4.4 construction for development on steep slopes, graded, phase. These measures will be incorporated in the or disturbed area. grading/erosion control plan (refer to SC-10) submitted to the City of Newport Beach. In addition, the applicant has prepared a WQMP to address post -development water ualit im acts. Require developers to use and operate construction The proposed project will comply with all South Coast NR 8.1 equipment, use building materials and paints, and AQMD rules and requisite local, state and federal control dust created by construction activities to requirements to reduce air pollutant emissions during minimize air pollutants. construction. Require new development to protect and preserve paleontological and archaeological resources from destruction, and avoid and minimize impacts to such resources in accordance with the requirements of NR 18.1 CEQA. Through planning policies and permit Refer to Response to Policy No. HR 2.1. conditions, ensure the preservation of significant archaeological and paleontological resources and require that the impact caused by any development be mitigated in accordance with CEQA. Because implementation of the proposed project requires the approval of an amendment to the Land Use Element of the Newport General Plan, it is subject to the provisions of SB 18, which requires consultation with Native American Notify cultural organizations, including Native American representatives before adopting or amending a general organizations, of proposed development that have the plan. The City has complied with the requirements of SB NR 18.3 potential to adversely impact cultural resources. Allow 18 by submitting a request to the Native American qualified representative of such groups to monitor Heritage Commission (NAHC). In addition, the City also grading and/or excavation of development sites. sent letters to the Native American representatives, informing each of the proposed project. However, no response was received by the City from any of the Native American representations requesting consultation within the 90-day statutory period.. Require new development, where on site preservation and avoidance are not feasible, to donate scientifically NR 18.4 valuable paleontological or archaeological materials to Refer to Response to Policy No. HR 2.1. a responsible public or private institution with a suitable repository, located within Newport Beach or Orange county, whenever possible. Project implementation will not result in any significant visual impacts to the segment of Newport Center Drive north of Farallon, which is designated as a Coastal View Protect and, where feasible, enhance significant scenic Road, or to the Public View Point identified in Irvine and visual resources that include open space, Terrace Park located south of East Coast Highway. Views NR 20.1 mountains, canyons, ridges, ocean, and harbor from from vantages along Newport Center Drive will not be public vantage points, as shown in Figure NR3. significantly altered as a result of project implementation. The development would not be visible from this Coastal View Road because of the landscaping that exists along the roadway, which blocks and/or filters views to the subject property. Protect and enhance public view corridors from the NR 20.3 following roadway segments (shown in Figure NR3), Refer to Response to Policy No. NR 20.1. and other locations may be identified in the future (Newport Center Drive). The building mass and architectural character of the proposed project will be regulated through the PC District Continue to regulate the visual and physical mass of regulations that have been proposed. The City will ensure NR 22.1 structures consistent with the unique character and that these regulations do not compromise the unique visual scale of Newport Beach. aesthetic character of the City. Policy S 4.7 N 1.1 N 1.4 owt N 1.8 NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 81 Element Conduct further seismic studies for new development in areas where potential active faults may occur. The proposed structures will be designed in accordance with current adopted codes and regulations, including the California Building Code, which prescribe the design standards for new development to protect life and property. In addition, site and structural design recommendations are also included in the Preliminary Geotechnical Report prepared that will be incorporated into the proposed oroiect. Noise Element Require that all proposed projects are compatible with the noise environment through use of Table N2, and enforce the interior and exterior noise standards shown in Table N3. Require that applicants of residential portions of mixed - use projects and high density residential developments in urban areas (such as the Airport Area and Newport Center) demonstrate that the design of the structure will adequately isolate noise between adjacent uses and units (common floor/ceilings) in accordance with the California Building Code. Encourage new mixed -use developments to site loading areas, parking lots, driveways, trash enclosures, mechanical equipment, and other noise sources away from the residential portion of the development. Kegwre the employment or noise mitigation measures for existing sensitive uses when a significant noise impact is identified. A significant noise impact occurs when there is an increase in the ambient CNEL produced by new development impacting noise N 4.1 N 4.6 N 5.1 'Because the Enforce interior and exterior noise standards outlined in Table N3, and in the City's Municipal Code to ensure that sensitive noise receptors are not exposed to excessive noise levels from stationary noise sources, such as heating, ventilation, and air conditioning Enforce the Noise Ordinance noise limits and limits on hours of maintenance or construction activity in or adjacent to residential areas, including noise that results from in -home hobby or work -related activities. Enforce the limits on hours of construction activity. is not located within the harbor The proposed uses, including the Golf Club and Tennis Club, the Bungalows, and the villas are consistent with the noise parameters prescribed in Table N2. The residential uses will not be subject to exterior noise levels that exceed 65 dBA CNEL and the non-residential uses are also consistent with the land use noise compatibility matrix based on noise levels that to not exceed 75 dBA CNEL. As indicated in the noise analysis prepared for the proposed project (refer to Section XI I), project activities will entail the continuation of long standing outdoor golf and tennis uses and limited indoor activities. Outdoor recreational activities at the Country Club represent a continuation of existing activities, which are compatible with the nearby residential and non-residential development in the project environs. Although some noise is associated with tennis, in particular, it is not so intrusive that it would be disruptive or incompatible with the existing uses. Furthermore, the proposed residential component (i.e., the "Villas"), is not located adjacent to Coast Highway or other high volumes arterials that would generate noise levels that exceed exterior and/or interior standards. Therefore, no significant long-term noise impacts would occur. No loading docks or other high noise generating features are located in proximity to the proposed "Villas." A mitigation measure requires that heating, venting, and air conditioning (HVAC) equipment in or adjacent to residential areas must not exceed applicable noise levels as required by the Citv of Newport Beach. Noise mitigation have been prescribed to ensure that construction noise impacts are reduced to a less than significant level. In addition, proper siting of HVAC equipment will reduce operational noise levels in the residential area in compliance with this policy. The noise sensitive receptors (Le.,' residents of the proposed Villas) would be protected from excessive interior and exterior noise levels through compliance with the noise standards adopted by the City and presented in Table N3 of the Noise Element. Both interior and exterior noise levels will comply with the adopted standards. Construction hours will comply with the limits established by the City of Newport Beach and prescribed in the Noise Ordinance. In addition, operational noise associated with the proposed tennis and golf facilities would also be regulated by the City's Noise Ordinance. Construction hours will be limited to those stipulated in the City's Noise Ordinance, which will be strictly enforced by the City of Newport Beach. in the Harbor and Bay Element are not NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 82 Coastal Land Use Plan As previously indicated, the subject property is located in the Coastal Zone delineated within the City of Newport Beach and is, therefore, subject to the adopted policies contained within the adopted Coastal Land Use Plan. Consistency with the applicable policies of that CLUP are presented in Table 11. Table 11 Coastal Land Use Plan Policy Analysis Newport Beach Country Club Policy No, CLUP Policy Consistency Analysis Land Use The proposed project is consistent with the land use designation on the adopted Coastal Land Use Plan, which designates the golf course site OS (Open Space) and the tennis site MU-H/PR (Mixed Use Horizontal/Parks & Recreation). The Open Space designation allows golf courses. The MU-H/PR designation allows horizontally - distributed mix of uses, which may include general or Land uses and new development in the coastal zone shall neighborhood commercial, commercial offices, multi- 2.1.2-1 be consistent with the Coastal Land Use Plan Map and all family residential, visitor -serving and marine -related uses, applicable LCP policies and regulations. buildings that vertically integrate residential with commercial uses, and active public or private recreational uses, including parks, golf courses, marina support facilities, aquatic facilities, tennis clubs and courts, private recreation, and similar facilities. In addition, the project addresses the relevant policies related to development of the site and the protection of coastal resources identified in the CLUP as discussed in this table. General Development Policies Project implementation will result in some intensification of the development that exists within the limits of the Planned Community. As previously indicated, the Continue to allow redevelopment and infill development proposed project does not exceed the intensity of 2 2 1 1 within and adjacent to the existing developed areas in the development allocated in the General Plan for Anomaly coastal zone subject to the density and intensity limits and No. 46 and Anomaly No. 74. Because the proposed resource protection policies of the Coastal Land Use Plan. project would result in the redevelopment of the existing uses, project implementation would not adversely affect any coastal resources and development is consistent with applicable coastal resource policies. The proposed project is located in an area of the City of Newport Beach that is adequately served by a range of Require new development be located in areas with public services and utilities, including police and fire 2 2 1 2 adequate public services or in areas that are capable of protection; circulation; sewer, water and storm drains; and having public services extended or expanded without electricity and natural gas. Adequate service will continue significant adverse effects on coastal resources. to be provided to the proposed uses. The provision of those public services and utilities will not result in any significant adverse effects on coastal resources. Residential Development The proposed PC District regulations prescribe the development standards for both residential and non- residential land uses proposed for the project. The maximum building height for the proposed single-family Continue to maintain appropriate setbacks and density, residential dwelling units (i.e., 5 units), which are located floor area, and height limits for residential development to in the vicinity of the existing residential development, will 2.7-1 protect the character of established neighborhoods and to range from 21 feet for Villa A to approximately 35 feet for protect coastal access and coastal resources. Villa D. Similar to building height, the front, rear, and side yard setbacks will vary, depending on the location and relationship of The Villas to each other and to existing residential development to the northeast, which are two and three stories in height. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 83 Policy No. CLUP Policy Consistency Anal sis Hazards and Protective Devices The project site is not located in the vicinity of a stream. Require new development to provide adequate drainage However, as required by the NPDES permit, a Storm and erosion control facilities that convey site drainage in a Water Pollution and Prevention Plan (SWPPP) will be 2.8.7-2 non -erosive manner in order to minimize hazards prepared and will establish both structural and non - resulting from increased runoff, erosion and other structural BMPs in order to reduce sedimentation and hydrologic impacts to streams. erosion during the construction phase. These measures will be incorporated in the grading/erosion control plans submitted to the City of Newport Beach. Require applications for new development, where applicable (i.e., in areas of known or potential geologic or With the exception of the potential effects of moderate to seismic hazards), to include a geologic/soils/geotechnical strong seismic shaking, the subject property is not located study that identifies any geologic hazards affecting the in an area characterized by potential coastal hazards. proposed project site, any necessary mitigation Preliminary geotechnical design parameters for the 2.8.7-3 measures, and contains a statement that the project site proposed project have been recommended based on is suitable for the proposed development and that the subsurface exploration and laboratory testing of the site development will be safe from geologic hazard. Require soils. The proposed structures will be constructed based such reports to be signed by a licensed Certified on those design parameters. Engineering Geologist or Geotechnical Engineer and subject to review and approval by the City. Transportation The proposed project includes adequate parking to accommodate all of the proposed uses, including the Golf Club, Tennis Clubhouse, the Bungalows, and The Villas. A total of 398 parking spaces is provided in the plan, including 28 parking spaces allocated to the Tennis Club (28 required), 50 parking spaces for The Bungalows/spa (49 required), and 300 parking spaces for the Golf Club (244 required). In addition, 20 parking spaces are proposed to accommodate the five Villas (20 required). Site and design new development to avoid use of parking The parking plan provides for a surplus of 57 parking 2.9.3-1 configurations or parking management programs that are spaces based on the proposed PC District parking difficult to maintain and enforce. requirements. In addition to the on -site parking provided, the site plan indicates that the an existing parking easement in favor of the project site provides access to an additional 554 parking spaces in the evenings and on weekends and holidays, if needed for parking overflow during tennis and golf events. However, such events are subject to a "special event permit," must be approved by the City. In addition to other requirements, it must be shown that adequate parking can be provided for such activities. The proposed project provides adequate parking as demonstrated in the Traffic and Parking Evaluation Continue to require new development to provide off-street prepared by Kimley-Horm and Associates and reflected in parking sufficient to serve the approved use in order to the PC district regulations. A surplus of 57 parking 2.9.3-2 minimize impacts to public on -street and off-street parking spaces is available on -site. In addition, off -site parking is available for coastal access. also available for special events. An existing off -site Parking Agreement will provide for an additional 554 parking spaces to accommodate the proposed project. No impacts to coastal access are anticipated. Require that all proposed development maintain and 2.9.3-3 enhance public access to the coast by providing adequate Refer to Policy 2.9.3-1. parking pursuant to the off-street parking regulations of the Zoning Code in effect as of October 13, 2005. The parking provided meets the minimum requirements for dimensions and clearance; access to the parking is adequate. A new drive aisle with a drop-off area will also be added to the front of the Golf Clubhouse and a second Continue to require off-street parking in new development entry point to the main parking lot will be added at the 2.9.3-5 to have adequate dimensions, clearances, and access to northwest corner of the lot. The parking rows in the main insure their use. parking lot will be reconfigured to an east -west orientation, with access aisles provided on both ends of the parking lot. Each of the drive aisles will be 26 feet wide, which provides adequate room for circulation, turning, and backing for 90-de ree parking aisles. 3.1.1-11 3.1.1-26 3.2.1-3 4.3.1-6 4.3.1-7 4.3.2-3 4.3.2-8 NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 84 Shoreline and Bluff Require new development to minimize impacts to public access to and along the shoreline. consistent wan the poucies above prowoe maximum public access from the nearest public roadway to the shoreline and along the shoreline with new development except where (1) it is inconsistent with public safety, military security needs, or the protection of fragile coastal resources or (2) adequate access exists nearby. Provide adequate park and recreational facilities to accommodate the needs of new residents when allowing new development. Water Require grading/erosion control plans to include soil stabilization on graded or disturbed areas. Require measures to be taken during construction to limit land use disturbance activities such as clearing and grading, limiting cut -and -fill to reduce erosion and sediment loss, and avoiding steep slopes, unstable areas, and erosive soils. Require construction to minimize disturbance of natural vegetation, including significant trees, native vegetation, root structures, and other physical or biological features important for preventing erosion or sedimentation. Require that development not result in the degradation of coastal waters (including the ocean, estuaries and lakes) caused by changes to the hydrologic landscape. To the maximum extent practicable, runoff should be retained on private property to prevent the transport of bacteria, pesticides, fertilizers, pet waste, oil, engine coolant, gasoline, hydrocarbons, brake dust, tire residue, and other pollutants into recreational waters. Access Although the subject property is located within the City's coastal zone, it is not located along the Newport Beach shoreline and, therefore, would not deter coastal access in anv way. As indicated above, direct shoreline access from the subject property does not exist. The proposed project site consists of 145 acres that presently encompass a private golf and tennis facilities. Although private in nature, these facilities will continue to serve a segment of the City's recreational needs. In addition, the five single-family residential dwelling units proposed (i.e., The Villas) will be subject to the City's park fee ordinance. The project applicant is required to prepare and implement BMPs pursuant to the Stormwater Pollution Prevention Plan (SWPPP) that will be required prior to the issuance of the grading permit for the proposed project. Implementation of these construction BMPs will ensure that grading/erosion control measures are implemented. These measures are intended to minimize erosion and stabilize the site during grading. As indicated above, the applicant will also be required to implement BMPs to ensure that point source and non -point source pollutants are minimized. In accordance with the WQMP and SWPPP requirements, BMPs will be required as part of the project's development in order to ensure that the potential discharge of pollutants of concern is minimized. The NPDES Technical Study prepared for the project identifies a range of potential BMPs that are intended to minimize erosion associated with water and wind. Several potential erosion control measures have been identified, including the use of hydroseeding, hydromulch, preservation of existing vegetation, scheduling of construction to avoid the climatic conditions that contribute to potential erosion, soil binders, velocity dissipation devices, etc. The SWPPP that will be prepared and approved by the City of Newport Beach will ensure that all appropriate BMPs are implemented to ensure that potential construction -related water quality impacts are reduced to the maximum extent practicable. Because the site has been altered and developed with existing golf and tennis facilities, project implementation will not result in significant changes to the existing runoff conditions; however, because both construction and post - construction BMPs will be incorporated into the project design, it is anticipated that some improvement in the quality of the storm and related surface runoff emanating from the site will occur when compared to the existing runoff quality. As indicated above, the applicant will be required to prepare a WQMP and SWPPP to ensure that surface discharges do not degrade the receiving waters. These plans must be approved by the City of Newport Beach. Consistent with this policy, the proposed project will be required to incorporate BMPs that address on -site retention and treatment of surface runoff. The WQMP and SWPPP will include measures to prevent the discharge of pollutants into the storm drain system. Potential post -construction BMPs that may be implemented include grassy swages, detention basins, infiltration basins, infiltration trenches, porous pavement, 4.3.2-11 5WIPAPA 4.3.2-13 4.3.2-16 4.3.2-23 4.4.1-1 4.4.1-2 4.4.1-6 NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 85 Require new development to minimize the creation of and increases in impervious surfaces, especially directly connected impervious areas, to be maximum extent practicable. Require redevelopment to increase area of pervious surfaces, where feasible. Require development to protect the absorption, purification, and retention functions of natural drainage systems that exist on the site, to the maximum extent practicable. Where feasible, design drainage and project plans to complement and utilize existing drainage patterns and systems, conveying drainage from the developed area of the site in a non -erosive manner. Disturbed or degraded natural drainage systems should be restored, where feasible. Site development on the most suitable portion of the site and design to ensure the protection and preservation of natural and sensitive site resources. Require structural BMPs to be inspected, cleaned, and repaired as necessary to ensure proper functioning for the life of the development. Condition coastal development permits to require ongoing application and maintenance as is necessary for effective operation of all BMPs (including site design, source control, and treatment control). Require new development applications to include a Water Quality Management Plan (WQMP). The WQMP's purpose is to minimize to the maximum extent practicable dry weather runoff, runoff from small storms (less the 3/4" of rain falling over a 24-hour period) and the concentration of pollutants in such runoff during construction and post - construction from the orooerty. Scenic and Visual Re Protect and, where feasible, enhance the scenic and visual qualities of the coastal zone, including public views to and along the ocean, bay, and harbor and to coastal bluffs and other scenic coastal areas. Design and site new development, including landscaping, so as to minimize impacts to public coastal views. Protect public coastal views from the following roadway segments: Newport Center Drive. Conslstency Analysis hydrodynamic separator systems, etc. The BMPs will ensure that runoff will be treated to prevent the continued degradation of Newport Bay. Project implementation will result in an improvement to surface water quality because no or only limited treatment occurs at the present time. Project implementation will result in an increase of 6.2 cfs when compared to the existing runoff volume. This increase in runoff equates to a 1.3 percent increase in the existing 462 cfs that currently flows in this the existing 69- inch RCP that transports the flows to Newport Bay where it is discharged. As indicated above, the implementation of BMPs will require detention and treatment prior to discharae into Newport Harbor. Only minor changes will occur to the existing drainage systems that accommodate runoff from the site. Surface flows will generally be directed in the same fashion and into the same existing drainage facilities that currently accept storm runoff generated on the site. The site is generally devoid of natural and/or sensitive resources because it has been substantially altered by prior development of golf and tennis facilities. It is anticipated that some additional pervious area of the property will be improved with structures and impervious surfaces on the Golf Club component; however, the proposed development will occur in the same general area of the site that is currently developed. No important natural and/or sensitive site resources would be adversely affected by the proposed project. The minor increase in surface runoff attributed to site development would be treated prior to its ultimate discharge into Newport Bay to avoid potential impacts to the water quality in the Bay. The SWPPP and WQMP that will be prepared for the proposed project will include a maintenance plan and program to ensure that the structural BMPs function effectively and efficiently and that surface runoff meets discharge requirements. An NPDES Technical Study has been prepared and is the precursor to the WQMP, which will identify both structural and non -structure BMPs to treat surface runoff generated on the site. The project is not located along the ocean, bay or harbor and is devoid of coastal bluffs and other features identified by the City as important visual amenities. A Landscape Concept Plan has been prepared that incorporates a hierarchy of landscape materials, including mature trees, shrubs, and ground cover in a thematic approach to ensure that the aesthetic integrity of the site is maintained and the character complements the coastal character of the coastal zone within which the site is located. In particular, a variable setback along East Coast Highway will be landscaped and bermed to soften and aesthetically enhance and screen the parking lot and to provide enhanced views into the site to provide a greater buffer between the park and residential development located to the south, across East Coast Highway. The segment of Newport Center Drive north of Farallon is designated as a Coastal View Road. However, views M 4.4.2-2 4.4.3-1 5 NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 86 Continue to regulate the visual and physical mass of structures consistent with the unique character and visual scale of Newport Beach. Design and site new development to minimize the removal of native vegetation, preserve rock outcroppings, and protect coastal resources. from vantages along Newport Center Drive will not be significantly altered as a result of project implementation. The development would not be visible from this Coastal View Road because of the landscaping that exists along the roadway, which blocks and/or filters views to the Villas, The Bungalows, and the Tennis Club. The proposed PC District regulations prescribe the architectural character of the proposed structures as well as development standards related to building height, setbacks, landscaping, etc., to ensure that the mixed uses are compatible with the surrounding development. As indicated in the PC District regulations, the development standards are intended to "... ensure the harmony and continuity of design parameters that are respectful to the properties of its California coastal heritage" The development and design standards address building mass, scale, materials, landscape treatment, and community design. The site has been substantially altered by development of the existing golf and tennis facilities. As a result, no significant rock outcroppings or other important visual amenities exist on the site. No native vegetation will be removed as a result of proiect implementation. Paleontological and Cultural Resources The proposed project includes the redevelopment of an Require new development to protect and preserve existing golf and tennis facilities, which have resulted in paleontological and archaeological resources from significant alteration of the existing site. Although it is not destruction, and avoid and minimize impacts to such expected that significant cultural resources would be 4.5.1-1 encountered on the site during grading and construction, resources. If avoidance of the resources is not feasible, a cultural resources monitor will be available during require an in situ or site -capping preservation plan or a grading to ensure that should such resources be recovery plan for mitigating the effect of the development. encountered, appropriate measures will be implemented to protect artifacts and related materials. 4.5.1-2 4.5.1-3 4.5.1-4 Require a qualified paleontologistlarchaeologist to monitor all grading and/or excavation where there is a potential to affect cultural or paleontological resources. If grading operations or excavations uncover paleontological/archaeological resources, require the paleontologist/archaeologist monitor to suspend all development activity to avoid destruction of resources until a determination can be made as to the significance of the paleontological/archaeological resources. If resources are determined to be significant, require submittal of a mitigation plan. Mitigation measures considered may range from in -situ preservation to recover and/or relocation. Mitigation plans shall include a good faith effort to avoid impacts to cultural resources through methods such as, but not limited to, project redesign, in situ preservation/capping, and placing cultural resources areas in open space. Notify cultural organizations, including Native American organizations, of proposed developments that have the potential to adversely impact cultural resources. Allow qualified representatives of such groups to monitor grading and/or excavation of development sites. Where in situ preservation and avoidance are not feasible, require new development to donate scientifically valuable paleontological or archaeological materials to a responsible public or private institution with a suitable repository, located within Orange County, whenever possible. In the event human remains, cultural resources and/or fossils are encountered, ground -disturbing excavations in the vicinity of the discovery shall be redirected or halted until a qualified archaeological/paleontological monitor inspects the site to assess the significance of the find. A Native American representative shall be contacted if there is a likelihood that human remains could be of Native American origin. The City has notified representatives of the appropriate Native American organizations as mandated by SB18. Because the site has been altered by grading and development that has occurred in the past, it is unlikely that potential impacts to cultural resources would occur; however, monitoring during grading will be required. In the event important cultural resources are encountered, Native American representatives will be notified. Consistent with this policy, any discovery of artifacts and/or resources, along with supporting documentation and an itemized catalogue, will be accessioned into the collections of a suitable repository. 4.5.1-5 Where there is a potential to affect cultural or As indicated above, it is not anticipated that cultural paleontological resources, require the submittal of an I resources would be encountered based on the level of NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 87 Pofcy No. CLUP Policy Consistency Analysis archaeological/cultural resources monitoring plan that disturbance that has taken place on the site. However, identifies monitoring methods and describes the should such resources be encountered during grading procedures for selecting archaeological and Native and construction, the archaeological/paleontological American monitors and procedures that will be followed if monitor will have the authority to halt or redirect grading additional or unexpected archaeological/cultural operations to avoid impacts and allow proper evaluation resources are encountered during development of the and disposition of the resources. site. Procedures may include, but are not limited to, provisions for cessation of all grading and construction activities in the area of the discovery that has any potential to uncover or otherwise disturb cultural deposits in the area of the discovery and all construction that may foreclose mitigation options to allow for significance testing, additional investigation and mitigation. Environmental Review Require applications for new development, where applicable, to include a geologic/soils/geotechnical study that identifies any geologic hazards affecting the project site, any necessary mitigation measures, and contains A geological assessment has been prepared (refer to statements that the project site is suitable for the Section VI of this analysis, which describes the potential proposed development and that the development will be eotechnical constraints e. ground g ( 9•. settlement, safe from geologic hazard for its economic life. For shaking, etc.) that affect site development. Several 4.6-9 development on coastal bluffs, including bluffs facing recommendations have been identified to ensure that the Upper Newport Bay, such reports shall include slope proposed structures and project components are stability analyses and estimates of the long-term average adequately protected from potential soils, geologic and bluff retreat rate over the expected life of the seismic conditions. development. Reports are to be signed by an appropriately licensed professional and subject to review and approval by qualified city staff member(s) and/or contracted emplo ee(s). c) Would the project conflict with any applicable habitat conservation plan or natural community conservation plan? No Impact. As previously indicated, the subject property is currently developed with private golf and tennis facilities. As a result, the project site does not support either sensitive habitat and/or species. Furthermore, the property is not subject to a habitat conservation plan area or natural community conservation plan area. Therefore, no significant impacts are anticipated and no mitigation measures are required. Mitigation Measures No significant impacts are anticipated and no mitigation measures are required. XI. MINERAL RESOURCES a) Would the project result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? No Impact. The project site is currently developed with private golf and tennis facilities. Neither the Newport Beach General Plan (Land Use Element and/or Recreation and Open Space Element) nor the State of California has identified the project site or environs as a potential mineral resource of Statewide or regional significance. No mineral resources are known to exist and, therefore, project implementation will not result in any significant impacts. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 88 b) Would the project result in the loss of availability of a locally -important mineral resource recovery site delineated on a local general plan, specific plan, or other land use plan? No Impact. As indicated above, the Newport Beach General Plan does not identify the project environs as having potential value as a locally important mineral resource site. Project implementation (i.e., new Golf Club clubhouse, residential and resort uses) as proposed will not result in the loss of any locally important mineral resource site and, therefore, no significant impacts will occur. Mitigation Measures No significant impacts are anticipated and no mitigation measures are required. XII. NOISE a) Would the project result in exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? Less than Significant Impact. There are several characteristic noise sources typically identified with general development such as proposed at the Newport Beach Country Club. Construction activities, especially heavy equipment, will create short-term noise increases near the project sites. Vehicular traffic volumes on area roadways around the proposed project will slightly decrease as a result of conversion of 17 tennis courts to less traffic -intrusive residential and hotel uses. This will result in a very small area -wide traffic noise reduction. However, vehicular noise impacts on proposed on -site residential uses were examined. Project activities will entail the continuation of long standing outdoor golf and tennis uses and limited indoor activities. Outdoor recreational activities at the Country Club represent a continuation of existing activities, which are compatible with the nearby residential and non-residential development in the project environs. Although some noise is associated with tennis, in particular, it is not so intrusive that it would be disruptive or incompatible with the existing uses. No noise impact analysis was therefore conducted for outdoor recreation because golf activities will remain at the existing level and tennis activities will be reduced with the reduction in the number of tennis courts. The primary noise sources for off -site uses that would be of possible concern would be any changes in the parking lot activity noise. Additionally, any new HVAC equipment installed on the project site would be required to meet noise standards as outlined in the City of Newport Beach Municipal Code. Noise impacts anticipated to occur as a result of the proposed project are discussed in greater detail in Section Xll.c., below. b) Would the project result in exposure of persons to or generation of excessive ground borne vibration or ground borne noise levels? Less than Significant Impact. Construction activities generate groundborne vibration when heavy equipment travels over unpaved surfaces or when it is engaged in soil movement. The effects of ground -borne vibration include discernable movement of building floors, rattling of windows, shaking of items on shelves or hanging on walls, and rumbling sounds. Within the "soft' sedimentary surfaces of much of Southern California, ground vibration is quickly damped out. Because vibration is typically not an issue, very few jurisdictions have adopted vibration significance thresholds. Vibration thresholds have been adopted for major public works construction projects, but these relate mostly to structural protection (cracking foundations or stucco) rather than to human annoyance. Groundborne vibration attenuates quickly with distance. Vibration levels from the use of heavy equipment would be typical of that used for other projects; no blasting or other extraordinary grading techniques would be necessary to implementation the proposed project. Therefore, potential groundborne vibration would be expected to be imperceptible at the nearest off -site homes. Construction activity vibration impacts are judged as less than significant. NEWPORTBEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005'140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Paga80 n) Would the project result in a substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? Less Than Significant Impact. Existing noise levels on the proposed project site derive mainly from vehicular sources on the adjacent arterial roadways. The proposed project site is currently a functioning Tennis and Golf Country Club. The surrounding area is developed with residential uses to the northeast and southwest. The site is bound by Newport Canter Drive to the east, East Coast Highway tothe south and Santa Barbaro Drive to the north. Noise measurements were token in order to document existing baseline |eva|u in the area. On -site noise levels in the vicinity of the future on -site residential uuao are in the 55-60 d8 range. Such levels are well within Newport Beach residential noise standards of 85 dB CNEL. The Villas and The Bungalows will be exposed totraffic along surrounding roadways. The projects residential component lies approximata|y2.A0O feet from the Jamboree Road centerline and 2.700 feet from the MacArthur Boulevard centerline. Thera are numerous intervening buildings separating the site from these roadways. Given the setback distance and noise attenuation provided by existing building otruoturao, noise from these roadways was not considered to provide a significant impact upon the proposed project residential uses. East Coast Highway is approximately 450 feet from the closest proposed on - site residential use and as such provides the largest potential traffic noise impact. Although other roadways will add to the project noise exposure level, they will not dominate the noise environment. As discussed abnve, noise meters placed in the approximate location of the proposed on -site residential units demonstrated existing CNELo of55 dB CNEL in the center ofthe proposed residential area and 80 dB CNEL at the approximate location of the closest residential unit. Existing office and Country Club buildings assist in shielding the proposed residential area from traffic noise emanating from East Coast Highway. Project -related traffic will not contribute significantly tnthe ambient noise levels in the area. In addition, the continuation of the tennis dub would similarly not contribute significantly to the ambient noise levels and, iherefona, would not adversely affect the nearby residential development because the number of tennis courts has been reduced and the noise levels would be expected to bethe same orless than that currently associated with activities atthe Tennis Club facility. As discussed earlier in this report, in year 2009, the section of PCH closest to the project site (between Jamboree Road and Newport Center Drive) had a traffic count of 35,660 vehicles per day equating to a noise level of 73.5 dB CNEL at 50 feet from the centerline. At 450 from the oenter|ine, at the approximate location of the o|oaont proposed on -site reoidenoe, this noise level decays to 50 dB CNEL due to distance spreading losses utilizing soft -site conditions. Several intervening buildings afford a partial shielding accounting for approximately '3 dB CNEL. The predicted on -site CNEL is approximately 50dB. The measured CNEL levels were 55and 5OdB. CNEL levels ascalculated from both modeling and measurements are similar. Newport Beach Traffic Engineering estimates a 1 percent growth rate per year for traffic along Pacific Coast Highway. Assuming area bui|doutououra in 2028, there would baalmost 4O.U00 vehicles along Pacific Coast Highway each doy, resulting in o +0.4d13 increase over existing. Thorefnre, the future noise level for proposed on -site residential uses would be indistinguishable from existing CNEL levels in the upper 50dBrange. This noise level is well below the City of Newport Beach recommended exterior compatibility noise |*va| of 85 dB CNEL for residential uses. Typical exterior to interior noise attenuation with open windows is at least -10 d8 CNEL, and in modern construction, 20'30 d8 CNEL with closed windows. This translates into interior levels of less than 51 dB CNEL with open windows and |aoa than 41 d8 CNEL with o|naed windows. Interior levels will readily meet the 45 dB CNEL standard for habitable rooms. There is no siting conflict for planned residential uses within the project site. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 90 The project's primary parking lot will remain along PCH and will accommodate 300 cars. Smaller lots are scattered in the tennis court area and accommodate 20-38 cars each. On -site proposed parking will accommodate 398 vehicles. In addition, to 554 parking stalls are also available to accommodate parking for the project through a parking agreement with the adjacent Corporate Plaza West development. Parking lot activities are sporadic but with a morning and evening peak hour volume. Existing peak hour traffic volume is 129 vehicles per hour. Proposed peak hour traffic volume will be 94 vehicles per hour. Noise emanating from vehicles entering and exiting the proposed project site improvements will be less than from existing site operations and will be spread over several areas. Parking lot noise is not anticipated to be a noise nuisance. The uses planned for the NBCC are a continuation of existing uses and do not represent any significant new noise source and as such is not anticipated to generate noise that will affect off -site uses. d) Would the project result in a substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing with the project? Less than Significant with Mitigation Incorporated. Temporary construction noise impacts will vary markedly because the noise strength of construction equipment ranges widely as a function of the equipment used and its activity level. Short-term construction noise impacts tend to occur in discrete phases dominated initially by demolition of existing structures and large earth -moving sources, then by foundation and parking lot construction, and finally for finish construction. The demolition and earth - moving sources are the noisiest, with equipment noise typically ranging from 75 to 90 dBA at 50 feet from the source. Point sources of noise emissions are typically attenuated by a factor of 6 dB per doubling of distance through geometrical (spherical) spreading of sound waves. The quieter noise sources will drop to a 65 dBA exterior/45 dBA interior noise level by about 200 feet from the source. For typical construction scenario, the louder noise sources may require over 1,000 feet from the source to reduce the 90+ dBA source strength to a generally acceptable 65 dBA exterior exposure level. Grading involves recycling the 14,583 cubic yards of removed hardscape to implement the proposed project. This hardscape would be removed and then crushed on -site to be utilized as fill material rather than require importation of fill dirt. Analysis of this scenario involves quantifying noise from crushing equipment that would operate on site. Rock crusher noise depends upon the type of material processed. Hard rock with large individual pieces is noisier than recycled asphalt. Asphalt is very soft material with the bulk of the noise coming from the screens and not the crusher. Noise impacts from the crushing operations that would occur within the project site are associated with the processing of the mostly concrete and broken asphalt rubble as the bulk of the material processed by the on -site crusher. The debris crushed on -site is considered a "soft" material. Sound decays at a rate of 6 dB per doubling of source -receiver distance for propagation across a smooth, hard surface. The drop-off rate across irregular, vegetated surfaces are somewhat faster. If there are obstructions to the direct line -of -sight, the drop-off rate is much faster. Placement of a large barrier along the line -of -sight can reduce levels by 15-20 dB from their unimpeded transmission. Audibility will also depend upon background conditions. The closest off -site residence to possible crusher operations is approximately 500 feet. The noise impact from the crusher therefore depends on a very large number of variables: • Type of material crushed • Character of the underlying surface • Source receiver distance • Presence of any physical obstructions • Masking effects of background levels NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 91 The noise envelope for a prototype crusher as a function of various variables is reflected in Table 12. Rock Crusher Noise Envelope Newport Country Club Source Receiver Distance (feet) Soft Rock Soft' Surface 50 85 100 78 200 70 400 63 500 60 800 57 'Unpaved, vegetated and irregular surface SOURCE: Giroux & Associates (July 2009 The Noise Code identifies a desirable L25 noise exposure of 55 dB and L25 nighttime of 50 dB. Under direct line of sight conditions, crusher noise could slightly exceed the City's noise standard at the closest residences. Interruption of the line of sight would reduce noise levels by 10 dB or more and would meet the City's noise standard. Therefore, use of a stockpile of rubble, or a temporary sound blanket as a barrier between the crusher and the closest home(s), is required if the on -site recycling is selected (see Mitigation Measure MM-8). The project will also comply with the noise ordinance relating to permissible hours of construction operations and will not start construction operations until 8:00am. According to the City of Newport Beach Municipal Code, permissible hours of construction are 7:00 a.m. and 6:30 p.m. on weekdays and 8:00 a.m. and 6:00 p.m. on Saturdays. Construction is not permitted on any national holiday or on any Sunday. This exclusion from numerical standards ordinance compliance is presumed applicable to any mobile construction equipment, but not to a possible rock crusher. These hours are included as conditions on any project construction permits and these limits will serve to minimize any adverse construction noise impact potential. e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? No Impact. John Wayne Airport is located approximately 4.0 miles north of the subject property. As indicated in Section Vlll.e., a portion of the Newport Beach Country Club property is located within the AELUP Notification Area (i.e., FAR Part 77) for JWA. Noise in the vicinity of the project site associated with aircraft operations occurring at John Wayne Airport is below 60 dBA CNEL and therefore, the proposed clubhouse will not be subjected to excessive noise levels. Nonetheless, the City is required to submit the proposed PC Amendment to the ALUC for a determination of consistency in accordance with Section 4.3 of the AELUP prior to adoption by the City. No significant impacts are anticipated and no mitigation measures are required. f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? No Impact. The project site is not within the vicinity of a private airstrip or other aviation facility that generates noise in the vicinity of the subject property. Development of the site as proposed will not result in potential adverse impacts, including safety hazards, to people residing or working in the project area. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 92 Therefore, no significant impacts will occur as a result of project implementation and no mitigation measures are necessary. Mitigation Measures As indicated in the preceding analysis, potentially significant short-tem, construction noise impacts are anticipated as a result of project implementation in the event that a rock crushing operation is located on the subject property to utilize the on -site materials as fill. The following measures are recommended to ensure that potential construction noise impacts associated with the potential rock crushing operation are reduced to a less than significant level. Additional measures are also recommended to further reduce temporary construction noise levels. MM-3 During rock crushing operations, a sound blanket shall be used if a direct line of sight exists between the crusher and any off -site homes. MM-4 All construction equipment, stationary and mobile, shall be equipped with properly operating and maintained muffling devices. MM-5 Prior to issuance of a grading permit, a construction schedule shall be developed that minimizes potential project -related and cumulative construction noise levels. MM-6 The construction contractor shall notify the residents of the construction schedule for the proposed project, and shall keep them informed on any changes to the schedule. The notification shall also identify the name and phone number of a contact person in case of complaints. The contact person shall take all reasonable steps to resolve the complaint. MM-7 Heating, venting, and air conditioning (HVAC) equipment in or adjacent to residential areas shall be shown by computation, based on the sound rating of the proposed equipment, not to exceed an A - weighted sound pressure level of fifty (50) dBA or not to exceed an A -weighted sound pressure level of fifty-five (55) dBA. XII1. POPULATION AND HOUSING a) Would the project induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure? Less than Significant Impact. Project implementation includes the development of five (5) single-family detached residential dwelling units. Based on the City's population per household average of 2.19,15 the proposed project would generate a total of 11 residents. The residential development proposed with this project in Anomaly No. 46 (i.e., Tennis Clubhouse component) is permitted in accordance with the MU-H3 land use designation. As a result, the addition of the five single-family residential dwelling units is consistent with the General Plan. Consequently, development of these dwelling units would not result in either direct or indirect unanticipated growth in the City. Therefore, no significant impacts are anticipated and no mitigation measures are required. b) Would the project displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? No Impact. As previously indicated, the project site is developed with the Newport Beach Country Club and former Balboa Bay Tennis Club; both are private recreational facilities. No residential development exists within the limits of the subject property. Project implementation, therefore, will not result in the displacement of any existing residential dwelling units that would necessitate replacement elsewhere in the City. No significant impacts will occur and no mitigation measures are required. 15Newport Beach Housing Element; Table H14 NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 93 c) Would the project displace substantial numbers of people, necessitating the construction of replacement housing? No Impact. As indicated above, the subject property does not support existing residential uses; therefore, no displacement of occupants will occur and no mitigation measures are required. Mitigation Measures No significant impacts are anticipated and no mitigation measures are required. XIV. PUBLIC SERVICES a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered government facilities, need for new or physically altered government facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? Less than Significant Impact. Fire protection facilities and service to the subject property are provided by the Newport Beach Fire Department (NBFD). In addition to the City's resources, the NBFD also maintains a formal automatic aid agreement with the Orange County Fire Authority (OCFA) and all neighboring municipal fire departments to facilitate fire protection in the City should the need arise. Fire Station No. 3 -Fashion Island is the closest responding fire station to the subject property. The project includes all necessary fire protection devices, including fire sprinklers. The project must comply with the current Building and Fire Codes adopted by the City. A code compliance analysis will be conducted by City staff to ensure that adequate water pressure and related features required by the City are provided to ensure that the project complies with the CFC and related City codes. Adequate water supplies and infrastructure, including fire hydrants, exist in the vicinity of the project, and there is no requirement for other new facilities or emergency services. Police protection? Less than Significant Impact. The Newport Beach Police Department (NBPD) is responsible for providing police and law enforcement services within the corporate limits of the City. The Police Department headquarters is located at 870 Santa Barbara Drive, at the intersection of Jamboree Road and Santa Barbara, approximately two miles northeast of the subject property. The NBPD currently has a ratio of 1.91 sworn officers for each 1,000 residents in the City. This ratio is adequate for the current population. Police and law enforcement service in the City is provided by patrols with designated "beats." Development of the subject site as proposed would not require an expansion to local law enforcement resources and therefore would not result in any environmental impacts involving construction of new law enforcement facilities. No significant impacts are anticipated and no mitigation measures are required. Schools? Less than Significant Impact. The provision of educational facilities and services in the City of Newport Beach is the responsibility of the Newport -Mesa Unified School District. Residential and non-residential development is subject to the imposition of school fees. Payment of the State -mandated statutory school fees is the manner by which potential impacts to the District's educational facilities are mitigated. The five single-family residential dwelling units (i.e., The Villas) included in the proposed project would not generate a significant number of new students in the District. The five dwelling units were included in the General Plan Update analysis. Based on the General Plan analysis of new dwelling units within the City, 6 the proposed project would generate approximately 2 students. New or expanded school facilities would not be required to provide classroom and support space for the low number of school age children. However, as indicated above, the project applicant must pay the applicable school fee 16Newport Beach General Plan Update EIR; June 2006. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 94 to the school district, pursuant to Section 65995 of the California Government Code, in order to offset the incremental cost impact of expanding school resources to accommodate the increased student enrollment associated with one new residence. With the payment of the mandatory school fees, no significant impacts would occur as a result of project implementation. Other public facilities? No Impact. Due to the reduction in residential density, no increased demand for other public services is anticipated and there would be no need to construct any new public facilities. No significant impacts are anticipated and no mitigation measures are required. Mitigation Measures No significant impacts are anticipated and no mitigation measures are required. XV. RECREATION a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? Less Than Significant Impact. Implementation of the proposed project will result in the construction of only five single-family homes, known as the Villas, 27 short-term hotel units, known as The Bungalows, and a remodeled private Tennis Club, including the Tennis Clubhouse. The Bungalows will be available for use by Tennis Club and Golf Club members, as well as the general public. Although residents of the proposed Villas and visitors of the Bungalows would occasionally visit local and regional parks and beaches, use of those public facilities by the future Villa residents and Bungalow guests would not represent a substantial change in the intensity of usage and the impact would not result in substantial physical deterioration of those park areas. The subject site is located in Service Area 9 (Newport Center), which currently supports 19 acres of existing parkland, which exceeds the 10.9 acres of parkland "needs" based on the City's currently a requirements. Nonetheless, the applicant would be subject to the payment of in -lieu park fees (refer to XV.b) in accordance with Title 19 of the Newport Beach Municipal Code. No significant impacts to recreational facilities are anticipated and no mitigation measures are required. b) Does the project include recreational facilities or require the construction of or expansion of recreational facilities which might have an adverse physical effect on the environment? No Impact. Development of the site as proposed would not require the construction of new or the expansion of existing recreational facilities in the City of Newport Beach. However, as indicated above, Title 19 (Subdivisions) of the Newport Beach Municipal Code requires the developer to pay a fee for the proposed residential component of the project. This fee will be used to augment recreational facilities in the City. Therefore, no significant impacts are anticipated and no mitigation measures are required. Mitigation Measures No significant impacts are anticipated and no mitigation measures are required. NBmP0RTBEACH COUNTRY CLUB PLANNED COMMUNITY 140 INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Paga85 o) Would the project conflict with an applicable plan, ordinance or policy establishing measures of effectiveness for the performance of the circulation system, taking into account all modes of transportation, including mass transit and non -motorized travel and relevant components of the circulation system, including but not limited to intersections, streets, highways and freeways, pedestrian and bicycle paths, and mass transit? Less Than Significant with Mitigation Incorporated. Short-term traffic impacts are those resulting from site preparation (i.e., grading and site preparation) and construction activities. With the exception of heavy trucks traveling to and from the site in the morning and afternoon to be used during site preparation and construction that occurs on -site, no other heavy truck traffic associated with hauling earth materials to or from the site will occur. During the construction phnse, there will be periods oftime when heavy truck traffic would occur that could result in some congestion on East Coast Highway. However, the number of heavy trucks entering and leaving the project area would be limited tothose transporting equipment and materials to the site. Other construction -related traffic impacts are associated with vehicles carrying workers to and from the site and medium and heavy trucks carrying construction materials to the project site, which may result in some minor traffic delays; howevar, potential traffic interference caused by construction vehicles could create a temporary/short-term impact to vehicles using neighboring streets in the morning and afternoon hours. Therahore, aside from potentially minor impacts resulting from the increase in traffic that will occur as a result of construction -related tnaMiu (e.g., construction nnateria|o, construction vvnrkera, atc.), no significant short-term impacts are anticipated to occur as a result nfproject implementation. Nonethe|anu, the construction traffic impacts would be adequately addressed through the implementation of a Construction Staging. Parking and Traffic Control Plan for each phase of construction. Project implementation would result in a net decrease in vehicular trips. As indicated in Table 13, the proposed project would generate atoto| of 1.183 trips per day, including 80 a.m. peak hour trips and 04 p.m.peak hour trips. These figures are compared to the 1,572 daily trips and 72 a.m. peak hour and 129 p.m. peak hour trips currently generated by the existing golf and tennis facilities. The resulting decrease in daily and peak hour trips vvou|d, thorofnna, not adversely affect any of the operational levels of service ofthe intersections inthe project environs. As indicated in Table 13, project implementation would result in the elimination of 17 tennis courts, which would be replaced by The Bungalows and five single-family residential dwelling units. As a result, traffic generated by the proposed project would decrease by 389 daily trips; a.m. and p.m. peak hour trips would also decrease by and 35tripu. respectively. Since the proposed Newport Beach Country Club project would generate |oee daily and peak hour traffic than the existing deve|opment, a detailed traffic analysis was not conducted. No significant project -related or cumulative long-term traffic impacts would occur as o result ofthe proposed project and nnmitigation measures are required. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 96 Table 13 1: VATA .. Land Use Unit Trip Generation Rates AM Peak Hour PM Peak Hour Daily In Out Total In Out Total Golf Club Hole 35.74 1.76 0.47 2.23 1.23 1.51 2.74 Tennis Club Court 38.70 0.66 0.66 1.32 1.68 1.68 3.36 Bungalows Room 8.17 0.34 0.2 0.56 0.31 0.28 0.59 Residential DU 9.57 0.19 0.56 0.75 0.64 0.37 1.01 -Single-Family Land Use Unit Trip Generation Estimates AM Peak Hour PM Peak Hour Daily In Out Total In Out Total Existing Development Golf Club 18 Holes 643 32 8 40 22 27 49 Tennis Club 24 Courts 929 16 16 32 40 40 80 Total — Existing Uses 1,572 48 24 72 62 67 129 Proposed Development Golf Club 18 Holes 643 32 8 40 22 27 49 Tennis Clubhouse 7 Courts 271 5 5 10 12 12 24 Bungalows 27 Rooms 221 9 6 15 8 8 16 Residential 5 DU 48 1 3 4 3 2 5 -Single-Family Total — Proposed Uses 1,183 47 22 69 45 49 94 Net New Trips -389 -1 -2 -3 -17 -18 -35 'Trip generation rates from Institute of Transportation Engineers (ITE) Trip Generation (81" Edition). SOURCE: Kimle -Horn Associates, Inc. June 2009) b) Would the project conflict with an applicable congestion management program, including, but not limited to level of service standard and ravel demand measures, or other standards established by the county congestion management agency for designated roads or highways? No Impact. As indicated in Table 3 in Section XVI.a, project implementation will result in a net decrease in vehicular trips. Neither the daily nor peak hour trips exceed those required to undertake a CMPAs a result, intersection analysis. Traffic operations in the project area would not be adversely affected by project -related traffic. Therefore, the proposed project would neither result in direct project -related impacts nor contribute to the cumulative degradation of any intersection in the project environs. Furthermore, project implementation would not conflict with either the County's CMP or other standard, including those adopted by the City of Newport Beach. No significant cumulative impacts are anticipated and no mitigation measures are required. c) Would the project result in a change in air traffic pattern, including either an increase in traffic levels or a change in location that results in substantial safety risks? No Impact. The proposed project site is located approximately four miles from John Wayne Airport and is not located within an area that is affected by aircraft operations. The proposed Planned Community District regulations for the project allow for a maximum building height of 50 feet. The proposed structures would not necessitate any changes in the air traffic patterns because the project site is not NEWP0nTBEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005'140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page07 located within the airport environs and would not affect airport operations. This project would have no effect on the volumes of air traffic occurring at John Wayne Airport or any other airports in the region. No significant impacts are anticipated and no mitigation measures are required. d) Would the project substantially increase hazards due to e design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? Lass than Significant Impact. During the construction phaaes, o variety of construction vehicles, including large delivery trucks, concrete pumpars, dump trucks, and a variety ofpassenger vehicles, will travel toand from the subject property. {}nsome occasions, there will beanumber ofmedium and heavy trucks that could add to local congestion levels and possibly affect through -traffic for short periods of time. Although potential conflicts are anticipated to be |eaa than oignifioant, implementation of construction traffic management plan (refer to K4M'10), which is required by the City of Newport Beaoh, would ensure that any conflicts resulting during the construction phase would beminimized. The project proposes changes to the main parking area in front of the Golf Clubhouse, including landscaping and beautification of the area and minor changes to on -site circulation; the project site aooauo to the public atnyat system at East Coast Highway (via Irvine Terrace) and at Granville Drive will remain unchanged. Irvine Terrace will be improved with o landscaped median and will be striped to delineate two inbound lanes and two outbound lanes. Hovvevar, in order to accommodate left -turn movements, the left -turn pocket atthe intersection with East Coast Highway should be lengthened to provide o minimum of 100 feet plus the transition. With the incorporation of this moauure, no significant impacts are required. In addition, a new drive aisle with a drop-off area will also be added to the front of the Golf Clubhouse and a second entry point to the main parking lot will be added at the northwest corner of the lot. The parking rnvva in the main body ofthe parking lot will be reconfigured to on eoat+waatorientaUun' with access oiu|as provided on both ends of the parking lot. Each of the drive oin|aa will be 26 feat vvide, which provides adequate room for circulation, turning, and backing for 00'd*gree parking aisles. Pedestrian aooaun from the Golf Club parking lot is improved by o pedestrian walkway with enhanced paving through the center of the parking lot, which connects directly to the Golf Clubhouse. m) Would the project result ininadequate emergency access? Less than Significant |nnpmot. The primary access to the project site is provided via a drive aisle that connects to the end of Irvine Ternaoe, which in turn connects to East Coast Highway (i.e.. State Highway 1). Irvine Terrace also provides access tothe adjacent Corporate Plaza West development. The Irvine Terrace/East Coast Highway intersection in a signalized intersection. As indicated in Section XV|A. Irvine Terrace will beimproved with two inbound and two outbound lanes. |naddition tuthe project access from Irvine Terraoe, the project proposes a new access and ou|-de-noc, which will provide aooeaa to The Bungalows and The Villas. Indirect access iualso available from Farallon via Newport Center Drive east of the site; hovvavor, aoueoo to The Tennis C|ub, The Bungalows, and The Villas would be from the proposed cul-de-sac. Adequate emergency access exists to serve both components of the proposed project. Nonetheless, the Newport Beach Fire Department will conduct code compliance analysis with the City's Building Department to ensure that adequate emergency access is provided. f) VVmu|d the project conflict with adopted policies, plans or programs regarding public transit, bicycle, mrpedestrian facilities? Less than Significant Impact. Aoindicated inTable 1O.the proposed project ioconsistent with relevant policies articulated in the City'a Circulation Element of the General Plan. In oddition, public transportation would not be impacted by the proposed. The project is located in an area of the City that in served by public transportation (OCTA bus service) and public transit access is available in the project vicinity along Coast Highway. The project is located in proximity to existing retail and commercial development. The addition of five single-family residential dwelling units, 27 bungalows and spa would be adequately served by the existing public transportation available along PCH and in the project environs. Similarly, neither NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 98 bicycle nor pedestrian facilities would be significantly altered as a result of the proposed project. Bicycle lanes along Coast Highway would not be affected. In addition, walkways within the proposed project would accommodate pedestrians. No significant impacts are anticipated and no mitigation measures are required Mitigation Measures The following mitigation measure is proposed to minimize the level of impact associated with temporary construction traffic: MM-8 Prior to commencement of each major phase of construction, the Applicant shall submit a Construction Staging, Parking and Traffic Control Plan for approval by the Public Works Department, which shall address issues pertaining to potential traffic conflicts during peak traffic periods, potential displacement of on -street parking, and safety. • This plan shall identify the proposed construction staging area(s), construction crew parking area(s), estimated number and types of vehicles that will occur during each phase, the proposed arrival/departure routes and operational safeguards (e.g. flagmen, barricades, etc.) and hourly restrictions, if necessary, to avoid traffic conflicts during peak traffic periods and to ensure safety. • If necessary, the Construction Staging, Parking Traffic Control Plan shall provide for an off -site parking lot for construction crews which will be shuttled to and from the project site at the beginning and end of each day until such time that the project site can accommodate off-street construction vehicle parking. • The plan shall identify all construction traffic routes, which shall avoid narrow streets unless there is no alternative, and the plan shall not include any streets where some form of construction is underway within or adjacent to the street that would impact the efficacy of the proposed route. • Dirt hauling shall not be scheduled during weekday peak hour traffic periods. • The approved Construction Staging, Parking and Traffic Control Plan shall be implemented throughout each major construction phase. MM-9 The left -turn pocket on Irvine Terrace at the Coast Highway shall be increased in length to a minimum of 100 feet plus transition in order to adequately accommodate left -turn movements. XVII. UTILITIES & SERVICE SYSTEMS a) Would the project exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? No Impact. Wastewater from the City's sewer system is treated by the Orange County Sanitation District (OCSD), which is responsible for safely collecting, treating, and disposing the wastewater generated by 2.3 million people residing in central and northwest Orange County. Raw sewage generated in the City is treated at the OCSD Treatment Plant No. 2 in Huntington Beach, which has a treatment capacity of 276 million gallons per day (mgd). Treatment of raw sewage includes preliminary treatment, primary treatment, anaerobic digestion, secondary treatment, and solids handling. Treatment Plant No. 2 is operating at approximately 55 percent of its design capacity. Wastewater generated by the proposed project would be the same as other similar developments in the City and would not contain hazardous waste or other pollutants. Based on sewage generation rates in the City's General Plan EIR, the five single-family residential dwelling units would generate up to less than 2,000 gallons per day (gpd) of raw sewage. In addition, the 27 bungalows would generate an NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 99 additional, 4,050 gallons per day utilizing the visitor serving (i.e., hotel) generation factor. Because the Tennis Clubhouse and Golf Clubhouse and facilities currently exist, the increase in sewage generation from these two uses is anticipated to be approximately 3,300 gallons per day as a result of the increase in floor area associated with the Golf Clubhouse. The uses would generate approximately 7,750 gallons per day of raw sewage, compared to the 5,450 gallons per day estimated based on the existing floor areas. The additional sewage generated by the project would be incrementally insignificant when compared to the 4.1 mgd increase anticipated as a result of buildout of the City's General Plan. The raw sewage generated by the project would be disposed into the existing sewer system and would be transported to OCSD Treatment Plant No. 2, which is adequate capacity to accommodate the City's buildout needs for waste treatment. As a result, project implementation would not exceed existing treatment infrastructure and expansion would not be required. Furthermore, the additional treatment needs would not exceed wastewater treatment standards of the Regional Water Quality Control Board. No significant impacts are anticipated and no mitigation measures are required. b) Would the project require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? No Impact. Water demand and wastewater generation will not increase significantly as a result of the development of the five single-family residential dwelling units and 27 bungalows on the site. Based on water demand rates, the proposed project would generate a demand for approximately 45,000 gallons per day for the five single-family dwelling units and the 27 bungalow units." In addition, the Golf Clubhouse and Tennis Clubhouse would create a demand for an additional 7,750 gallons per day compared to the existing demand of 3,300 gallons per day. The proposed project is within the land use projections of the City, which are the basis of future water demand demands and wastewater generation within Newport Beach. The project will connect to existing water and wastewater facilities in the project vicinity. No expansion of these facilities is necessary due to existing capacity. No significant impacts are anticipated and no mitigation measures are required. c) Would the project require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? Less than Significant Impact. The project will result in additional impervious surface areas by the new buildings, streets, parking lots, walkways and other hardscape. The additional hardscape will result in a small increase in runoff during storm periods. The site will be designed to ensure that surface runoff will be directed to existing facilities. As indicated in Section VIII, some of the existing storm drain facilities do not have adequate capacity to accommodate existing or future storm flows; however, deficient in -tract facilities will be upgraded to accommodate post -development flows. All storm flows generated on the subject property will be collected and conveyed to Newport Bay where it will be discharged. Therefore, the increase in project -related storm flows will not result in a potentially significant impact and no mitigation measures are required. d) Would the project have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? Less than Significant Impact. See response to XVll.b above. The City of Newport Beach provides water service within the project vicinity. The City's water supplies are imported water purchased from the Municipal Water District of Orange County (MWDOC), groundwater pumped from the Orange County Groundwater Basin, and reclaimed water. The City currently maintains a total system capacity of approximately 100 million gallons in three facilities. According to the City's 2005 Urban Water Management Plan (UWMP), water supplies can continue to meet the city's imported water needs until the year 2030. Beyond that date, improvements associated with the State Water Project supply, additional local projects, conservation, and additional water transfers would be needed to adequately serve the City. 17Assumes 2.19 persons per dwelling unit and bungalow, based on the City's population per household. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page100 However, during short-term periods of water supply reductions, the City would implement its water shortage contingency plan. As indicated in the City's General Plan EIR, additional development accommodated under the General Plan, including the proposed project would increase water use within the City, thus increasing the need for water treatment services. However, as indicated above, MWD has indicated that it can meet all of the City's imported water needs through 2030. In addition, Orange County Water District anticipates that there would also be sufficient groundwater supplies to meet projected future demand requirements in the City. Future water demand based on the General Plan projections would not be increased significantly with the addition of the proposed development. The demand created by the proposed project is consistent with the City's long-range projections for development that are the basis of water demands in Newport Beach. The General Plan has identified the minimization of water consumption as one of its goals in the Natural Resources Element. The proposed project would be subject to the policies that would achieve that goal, including limiting water usage, prohibitions on activities that waste water or cause runoff, and water efficient landscaping and irrigation in conjunction with other water conserving devices and practices in new construction. Specifically, water conservation measures will be required on the proposed project as prescribed in Chapter 14.16 (Water Conservation and Supply Level Regulations) and Chapter 14.17 (Water -Efficient Landscaping) of the Newport Beach Municipal Code. Therefore, no significant direct or cumulative impacts are anticipated based on the findings in the City's General Plan EIR; no mitigation measures are required. e) Would the project result in a determination by the wastewater treatment provider, which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? No Impact. See response to XVll.b above. As indicated in that response, adequate sewer collection, conveyance and treatment facilities exist to accommodate the incremental increase in raw sewage resulting from the development of the proposed project. No impacts are anticipated and no mitigation measures are required. f) Would the project be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? Less than Significant Impact. Project implementation will result in the generation of demolition debris and some refuse during the construction phase; however, it would be relatively small and would not adversely affect existing capacities at the County's sanitary landfills. The project includes recycling some of the demolition materials generated during the construction phase. Asphalt and concrete will be crushed on -site and utilized as fill material to accommodate the proposed project. As a result, the amount of demolition materials that would require transport to and placement in one of the County's landfills would be reduced by the recycling of the asphalt and concrete. Based on the City's General Plan EIR, it is anticipated that the Orange County landfill system will have adequate capacity to operate until 2035. Based on the solid waste generate rates presented in the General Plan EIR, the five single-family residential dwelling units and the 27 bungalows would generate less than 100 pounds per day of solid waste. Because the Golf Club and Tennis Club currently exist, no significant increase in refuse would be anticipated as a result of the reconstruction of those facilities. With the remaining capacity of approximately 44.6 million tons, as well as a 16-year lifespan at the Frank R. Bowerman Sanitary Landfill (without the proposed expansion that would extend the life of this facility to 2053), the City-wide potential increase in solid waste due to General Plan buildout, including the proposed project, would not result in the exceedance of capacity of that landfill. In addition, AB 939 mandates the reduction of solid waste. As a result, it is anticipated that at least a 50 percent reduction in refuse would be required. Therefore, the project will not result in a significant increase in solid waste production due to the proposed project. Existing landfills are expected to have adequate capacity to service the site and use. No significant impacts are anticipated and no mitigation measures are required. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page 101 g) Would the project comply with federal, state, and local statues and regulations related to solid waste? Less than Significant Impact. Solid waste production will be picked up by either the City of Newport Beach or a commercial provider licensed by the City of Newport Beach. All federal, state and local regulations related to solid waste will be adhered to through this process. No significant impacts are anticipated and no mitigation measures are required. Mitigation Measures No significant impacts are anticipated and no mitigation measures are required. XVIII. MANDATORY FINDINGS OF SIGNIFICANCE The environmental analysis conducted for the proposed project indicates that although the proposed project could have the potential for significant adverse environmental impacts, the impacts would be reduced to a less than significant level through the implementation of mitigation measures as prescribed in the preceding analysis. a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major period of California history or prehistory? Less than Significant Impact. The proposed project would not have the potential to degrade the quality of the environment. The site is entirely developed with private recreational uses and has been altered from its natural state. As a result, it does not support sensitive habitat and/or sensitive plant or animal species. As a result, the proposed project would reduce the habitat of a wildlife species and/or threaten to eliminate one or more sensitive plant species. No historic structures or sites are present in the project area, which may be affected by the proposed project. The proposed project would not eliminate important examples of the major periods of California history or prehistory. Therefore, no significant impacts are anticipated and no mitigation measures are required. b) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects.) Less than Significant Impact. Redevelopment of the site as proposed would result in a negligible difference in long-term environmental effects associated with use of the site. Project implementation would result in fewer vehicular trips and, therefore, a reduction in the pollutant emissions when compared to the existing use of the site. No significant impacts to biological resources, cultural resources, public health and safety, mineral resources, population and housing, agricultural resources or other environmental issues would occur. In addition, the proposed project would result in an overall reduction in the volume of storm runoff and an improvement in the quality of the water prior to its discharge when compared to the existing use of the site. Therefore, the project would not contribute to the cumulative degradation of the environment or exacerbate unacceptable environmental conditions (e.g., biological resources, etc.) when considered with other projects proposed in the project environs. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page102 c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? Less than Significant with Mitigation Incorporated. The preceding analysis conducted for the proposed project indicated that although project implementation could result in some potentially significant environmental effects (e.g., soils and geology, hazards and hazardous materials, etc.), with the implementation of mitigation measures prescribed in this analysis, the proposed project would not result in significant environmental impacts on humans, either directly or indirectly. NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY (PA2005-140) INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION Page103 The following enumerated documents are available at the offices of the City of Newport Beach, Planning Department, 3300 Newport Boulevard, Newport Beach, California 92660. 1. Newport Beach General Plan; City of Newport Beach; adopted July 25, 2006. 2. Final Program EIR - City of Newport Beach General Plan 3. Title 20, Zoning Code of the Newport Beach Municipal Code. 4. City Excavation and Grading Code, Newport Beach Municipal Code. 5. Chapters 10.26 and 10.28, Community Noise Ordinance of the Newport Beach Municipal Code. 6. South Coast Air Quality Management District, Air Quality Management Plan 1997. 7. South Coast Air Quality Management District, Air Quality Management Plan EIR, 1997. The following documents have been prepared specifically for this project, and are incorporated by reference within this initial study. The documents are available at the office of the City of Newport Beach, Planning Department. 1. Report of Geotechnical Studies and Review of Vesting Tentative Tract Map No. 15347, Newport Beach Country Club; GMU Geotechnical, Inc.; May 2, 2008. 2. Revised Preliminary Geotechnical Design Parameters for the NBCC Planned Community, Newport Beach Country Club; GMU Geotechnical, Inc.; April 25, 2008. 3. Phase I Environmental Site Assessment; Newport Beach Country Club Planned Community; Partner Engineering and Science, Inc.; April 3, 2009. 4. Traffic and Parking Evaluation for the Proposed Newport Beach Country Club Project in the City of Newport Beach; Kimley Horn and Associates, Inc.; June 2009. 5. NPDES Technical Study (Newport Beach Country Club Planned Community District Plan); Adams -Streeter Civil Engineers, Inc.; January 14, 2009 6. Preliminary Hydrology Report for Vesting Tentative Tract Map No. 15347; Adams -Streeter Civil Engineers, Inc.; July 13, 2009. 7. Newport Beach Country Club Planned Community District Plan; January 12, 2009. 8. Air Quality Analysis for the Newport Beach Country Club Project; Giroux & Associates; July 23, 2009. 9. Noise Assessment for the Newport Beach Country Club Project; Giroux & Associates; July 23, 2009. 10. Newport Beach Country Club Parking Supply Analysis; LSA Associates, Inc.; August 20, 2008. Errata for the IS/MND Newport Beach Country Club (PA 2005-140) Golf Realty Fund 1. Page 4: Column 4 (Height (ft.)) under "Building Heights" in Table 2 (Summary of Proposed Uses) to reflect a maximum building height Change 50 feet to 53' 6" for the proposed Golf Course Clubhouse. 2. Page 5: Delete all of the text and replace it with the following: The project site encompasses approximately 145 acres (refer to Table A), which are divided into four sub -areas identified below. Each sub -area as well as the hand car wash is described below and illustrated on Exhibit 2. Table A Land Use Allocations Newport Beach Country Club Planned Community District Plan Golf Realty Fund Sub Area Approximate Area Acres The Tennis Club Sub -Area 4.62 The Villas Sub -Area 1.25 The Bungalows Sub -Area 3.44 The Golf Club Sub -Area' 133.01 Total ±145 'Includes Golf Clubhouse, Golf Parking Lot and Hand Car Wash SOURCE: Newport Beach Country Club Planned Community District Plan (July 12, 2010) Golf Clubhouse The golf clubhouse floor plan has a maximum of 35,000 gross square feet, exclusive of below grade cart storage, in two stories, including approximately 18,100 square feet on the first floor and approximately 16,900 square feet on the second floor. The lower floor will accommodate the following features: Grill, women's lounge and locker room, men's locker room, and pro shop. Other features included on the first floor include a cart barn and club storage. The second floor will accommodate a banquet room and kitchen, dining room, lounge, foyer, offices, private meeting and dining rooms, and a "19'" hole." Other features which currently exist and will continue to be part of the clubhouse facilities include a snack stand (180 square feet), existing golf course restroom facilities, and existing greens keeper buildings and area. The maximum height of the proposed golf clubhouse is 53 feet 6 inches, measured from the existing grade to the mid -point of the sloped roof. (The reference to a maximum 50-foot height limit reflected in Table 1 on page 4 of the initial study referenced in this comment is incorrect and will be revised to reflect the 53 feet 6-inch maximum height noted in this description.) Tennis Clubhouse and Courts The maximum floor area of the tennis clubhouse is 3,725 gross square feet and will have a maximum building height of 30 feet (measured from the existing grade to the peak of the roof). The tennis clubhouse includes a lobby, pro shop, office and locker rooms. A total of seven tennis courts, including one stadium court will replace the 24 tennis courts that currently exist on the subject property. Screening for the tennis courts from The Villas E will also be provided in the form of a five-foot block wall that would be designed to be compatible with the proposed Villa E, adjacent to the tennis courts. In addition, the exterior perimeter of the tennis courts facing the Granville Condominiums, Granville Drive, and the Tennis Club parking lot will also be screened, utilizing the existing 10-foot high chain link fence covered by a wind screen. Bungalows The Bungalows proposed by the applicant will consist of 27 "hotel" units that encompass approximately 29,044 square feet of floor area. A 2,170 square foot Concierge and Guest Center is also included in this development component. In addition, the Bungalow Spa, which is an auxiliary use for and part of the Bungalows, encompasses 7,490 square feet. This facility will include a fitness center, spa, spa bar and lounge. Other features include a Zen Garden, Jacuzzi and swimming pool. The pool and/or spa equipment will be enclosed by five-foot block wall. The maximum building height of the Bungalows is 31 feet, measured from the existing grade to the peak of the roof. Villas The five Villas are proposed within a 1.25-acre sub -area. Lot sizes of the single-family detached residential dwelling lots will vary from 5,295 square feet (Villa A) to 17,151 (Villa D) square feet. Homes will range in size from 2,201 square feet (Plan A) to 6,384 square feet (Plan D). The maximum building heights (measured from existing grade) permitted for the Villas ranges from 23 feet (Villa A) to 39 feet (Villa D). Swimming pools are also permitted for each of the five Villas. 2 Golf Club Parking Lot and Private Hand Car Wash The proposed Golf Club Parking Lot has 300 on -site parking spaces. In addition, as described in Response to Comment No. 4 of The Irvine Company, above, an existing perpetual offsite Parking Agreement will continue to provide as many as 554 non- exclusive parking spaces on weekends and holidays to supplement the onsite Golf Club parking. The frontage road that exists adjacent to East Coast Highway will be eliminated and replaced with landscaping. In addition, a private hand car wash area is proposed within the parking lot in the vicinity of Country Club Drive. The area identified to accommodate this project feature encompasses approximately 240 square feet (i.e., 12 feet wide and 20 feet long). Use of the private hand car wash is limited to golf and possibly tennis club members only. 3. Page 8, Table 2: Delete Table 2 and replace it with the revised Table 2 below. 3 Table 2 Tennis Club Development Phasing MND Revised Exhibit Phasing Duration Plan Description (Months) Reference (5/25/11) Phase Installation of Temporary Modular 1 4 1 Tennis Clubhouse' Demolition of Tennis Club building, 9 1 tennis courts, perimeter tennis court fence remains, portion of Tennis Club 1 4 2 parking lot (61 parking spaces), landscaping and small portion of existing site wall Construct The Villas (3), Private Street, New Tennis Clubhouse and Parking 14 6 4 Lots refer to Exhibit 6 2 Demolition of 3 tennis courts, small portion of Tennis Club parking lot and 1 5 3 remaining Tennis Club Building Construct Center Court area and 3 8 6 Pool 3 -Bungalow Demolition of 3 tennis courts, remaining portion of old Tennis Club 1 7 5 parking lot and removal of Temporary Modular Tennis Clubhouse Demolition of 2 tennis courts, and perimeter tennis court fence in front of the 3 completed Villas — After substantial completion of the Golf 1 9 7 4 Bungalows removal of perimeter tennis court fence in front of the Golf Bungalows. Construct Golf and Tennis Bungalows 15 10 8 and remaining 2 Villas. Total Schedule 36 'Anticipated Start date is September 2011 SOURCE: The Templeton Planning Group (May 2011) 4. Page 16, Table 3: Delete Table 3 and replace with Table 3 below. Table 3 Golf Clubhouse Development Phasing MND Duration Exhibit Phase Description Months Reference Demolition of East Side Golf Clubhouse Parking 1 11 1 Lot and PCH Entry' Construct East Side Parking Lot and PCH Entry2 4 12 Demolition of West Side Golf Clubhouse Parking 1 13 Lot 2 Construct West Side Parking Lot and Temporary 6 14 Golf Club Demolition of Golf Clubhouse 2 15 3 Construct New Golf Clubhouse 14 16 Demolition of portion of Greenskeeper Area, Temporary modular Golf Clubhouse and 2 17 4 northern portion of Golf Clubhouse Parking Lot Construct Greenskeeper Area and Golf Porte 4 18 Cache and Parkin Total Schedule 34 'Start date to be determined. 21ncludes car wash. SOURCE: The Templeton Planning Group (July 2010) 5. Page 39, Paragraph 2: Change 50 feet to 53' 6" in Line 5 and Line 7. 6. Page 52, SC-8: Revise SC-8 as indicated below: 5 SC-8 A qualified archaeological/paleontological monitor shall be retained by the project applicant who will be available during the grading and landform alteration phase. In the event cultural resources and/or fossils are encountered during construction activities, ground -disturbing excavations in the vicinity of the discovery shall be redirected or halted by the monitor until the find has been salvaged. The area surrounding any cultural materials or fossils encountered during grading shall also be investigated to determine the extent of the site. Any artifacts and/or fossils discovered during project construction shall be prepared to a point of identification and stabilized for long-term storage. Any discovery, along with supporting documentation and an itemized catalogue, shall be accessioned into the collections of a suitable repository. Curation costs to accession any collections shall be the responsibility of the project applicant. 7. Page 77, Table 10 (General Plan Policy Analysis): Policy LU 5.3.3: Change 50 feet in Line 12 and Line 14 in Column 3 to 53' 6". 8. Page 80: Revise the consistency analysis for Natural Resources Element Policy No. 18.3 as follows: BeEa„se of the proposed project does not requires the approval of an amendment to the Land Use Element of the Newport General Plan and the projectt is not, therefore, subject to the provisions of SB 18, which requires consultation with Native American representatives before adopting or amending a general plan. Nonetheless, tThe City has complies therequirernents ef�v by emitting submitted a request to the Native American Heritage Commission (NAHC)_. '�ditieR, Gityand has also sent letters to the Native American representatives, informing each of the proposed project. However, no response was received by the City from any of the Native American representativeseRs requesting consultations„ithiRthe 90-day stat�t�� peried. 9. Page 82, Table 11 (Coastal Land Use Plan Policy Analysis): Policy 2.1.2.1: Revised the consistency analysis in Column 3 to read: The proposed project is consistent with the land use designation on the adopted Coastal Land Use Plan, which designates the golf course site OS (Open SpaGe)PR (Parks and Recreation) and the tennis site MU-H/PR (Mixed Use Horizontal/Parks & Recreation). The Open Spa Parks and Recreation designation allows golf courses. The MU-H/PR designation allows horizontally - distributed mix of uses, which may include general or neighborhood commercial, commercial offices, multi -family residential, visitor -serving and marine -related uses, buildings that vertically integrate residential with commercial uses, and active public or private recreational uses, including parks, golf courses, marina Co support facilities, aquatic facilities, tennis clubs and courts, private recreation, and similar facilities. In addition, the project addresses the relevant policies related to development of the site and the protection of coastal resources identified in the CLUP as discussed in this table. 10. Page 96, Second sentence in the paragraph under (c): Change 50 feet in Line 3 to 53' 6". 7 Attachment B Resolution No. 2022-66 15-13 RESOLUTION NO. 2022-66 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING A GENERAL PLAN AMENDMENT, AMENDMENT TO MAJOR SITE DEVELOPMENT REVIEW NO. SD2011-002, AMENDMENT TO COASTAL DEVELOPMENT PERMIT NO. CD2017-039, AMENDMENT TO VESTING TENTATIVE TRACT MAP NO. NT2005-003, AND AMENDMENT TO LIMITED TERM PERMIT NO. XP2011-004 FOR THE TENNIS CLUB AT NEWPORT BEACH LOCATED AT 1602 EAST COAST HIGHWAY (PA2021-260) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, in 2012, the City Council approved an application by Golf Realty Fund, Managing Owner ("Applicant") for the reconstruction of the 3,725-square-foot tennis clubhouse, reduction of tennis courts from 24 to seven courts, construction of a 27-room boutique hotel with 9,700 square feet of ancillary uses, five single-family residential units, and a development agreement for the property ("2012 Entitlements") located at 1602 East Coast Highway, and legally described as Parcels A, B, C, and D of Parcel Map No. 2016- 151 (commonly referred as the "Tennis Club Site" or "Property"); WHEREAS, on November 20, 2018, the Zoning Administrator approved Coastal Development Permit No. CD2017-039, authorizing the redevelopment of the Property consistent with the 2012 Entitlements (2012 Entitlements and Coastal Development Permit No. CD2017-039 are collectively referred to as the "Approved Project"), WHEREAS, the Applicant is requesting an amendment to the Approved Project to allow an increase in the number of future tennis courts from seven to eight, an increase in the number of future hotel rooms from 27 to 41, an increase to the gross floor area of ancillary hotel uses by 4,686 square feet, three attached condominium units and two single family residences in -lieu of five single-family residences, and an amendment to the 2012 Development Agreement to account for the aforementioned changes to the Approved Project along with extending the term for an additional 10 years ("Project"); 15-14 Resolution No. 2022-66 Page 2 of 26 WHEREAS, the following approvals are requested or required in order to implement the Project: • General Plan Amendment ("GPA") — An amendment to Anomaly No. 46 of Table LU2 of the 2006 Newport Beach General Plan Land Use Element to document the conversion of 17 tennis courts to 27 hotel rooms authorized by City Council Resolution No. 2012-10, and the addition of 14 hotel rooms for a total of 41 rooms and one tennis courts for a total of eight tennis courts, • Local Coastal Program Implementation Plan Amendment ("LCPA") — An amendment to Section 21.26.055(S)(2) (Planned Community Coastal Zoning District Development Standards, Newport Beach Country Club (PC-47, Tennis Club) of the Newport Beach Municipal Code ("NBMC") to modify the permitted uses and development standards allowed on the Property; • Planned Community Development Plan Amendment ("PCDP Amendment") —An amendment to Planned Community Development Plan No. 47 (Newport Beach Country Club Planned Community) to amend land use regulations and development standards on the Property; • Major Site Development Permit Amendment ("SDA") — An amendment to the existing site development review in accordance with PC-47 and Section 20.52.080 (Permit Review Procedures, Site Development Reviews) of the NBMC for the construction of the Project; • Coastal Development Permit Amendment ("CDPA") — A coastal development permit for the demolition of existing structures, further subdivision on the Property, and implementation of the Project; • Vesting Tentative Tract Map Amendment ("VTMA") — An amendment to Vesting Tentative Tract Map No. 15347 pursuant to Title 19 (Subdivisions) of the NBMC for a lot reduction created for the Approved Project and inclusion of the condominium ownership; • Limited Term Permit Amendment ("XF) — A limited term permit to allow temporary use of structures during construction on the Property, pursuant to Section 20.52.040 of the NBMC; • Development Agreement Amendment ("DA") — A second amendment to the Development Agreement (DA2008-001), between the Applicant and the City, 15-15 Resolution No. 2022-66 Page 3 of 26 pursuant to Sections 15.45.020(A)(2)(c) (Buildings and Construction, Development Agreements Required, Development Agreement Required) and 15.45.070 (Buildings and Constructions, Development Agreements, Amendment/Cancellation) of the NBMC, which would provide vested rights to develop the Project for an additional 10 years and provide negotiated public benefits to the City; and • Addendum to previously adopted Mitigated Negative Declaration No. ND-2010- 008 (SCH2O10091052) ("Addendum") — Pursuant to the California Environmental Quality Act ("CEQA"), the Addendum addresses reasonably foreseeable environmental impacts resulting from the Project; WHEREAS, the Property is designated Mixed -Use Horizontal 3/Parks and Recreation (MU-H3/PR) by the City of Newport Beach General Plan and is located within the Newport Beach Country Club Planned Community (PC-47) Zoning District; WHEREAS, the Property is designated Mixed -Use Horizontal/Parks and Recreation (MU-H/PR) by the Coastal Land Use Plan and is located within the Newport Beach Country Club Planned Community (PC-47) Coastal Zone District; WHEREAS, the Planning Commission held a public hearing on September 8, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California, at which time the Planning Commission considered the Project. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; WHEREAS, at the hearing, the Planning Commission adopted Resolution No. PC2022-022 (5 ayes, 1 absent, 1 recusal) recommending approval of the Project to the City Council; WHEREAS, the City Council held a public hearing on September 27, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; 15-16 Resolution No. 2022-66 Page 4 of 26 WHEREAS, at the hearing, the City Council remanded the Project to the Planning Commission on a future date by a majority vote (6 ayes, 1 nays); WHEREAS, at the City Council meeting on October 11, 2022, the City Council adopted a motion for reconsideration of the Project by a majority vote (4 ayes, 3 nays); and WHEREAS, the City Council held a public hearing on October 25, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council has considered the recommendation of the Planning Commission and determined that modifications to the Project made by the City Council, if any, are not major changes that require referral back to the Planning Commission for consideration and recommendation. Section 2: The City Council hereby approves a General Plan Amendment, Amendment to Major Site Development Review No. SD2011-002, Amendment to Coastal Development Permit No. CD2017-039, Amendment to Tentative Vesting Tract Map No. NT2005-003, and Amendment to Limited Term Permit No. XP2011-004. Section 3: An amendment to the 2006 Newport Beach General Plan Land Use Element is a legislative act. Neither Title 20 (Planning and Zoning) nor California Government Code Section 65000 et seq., set forth any required findings for either approval or denial of such amendments. Nonetheless, the GPA is consistent with the following City of Newport Beach General Plan Land Use based upon the following: Findings and Facts in Support of General Plan Consistency: As part of the Approved Project, the City Council adopted Resolution No. 2012-10, which authorized the conversion of 17 tennis courts to 27 hotel rooms along with the redevelopment of the Property including seven remaining tennis courts. The City Council found that the conversion of tennis courts to hotel rooms was consistent with the General Plan based upon the revitalization to Newport/Fashion Island area where the General Plan encourages additional hotel development and housing units, and the fact that the 15-17 Resolution No. 2022-66 Page 5 of 26 conversion did not create traffic impacts. At the time of the conversion, the 17 tennis courts generated 658 average daily trips based upon ITE Trip Generation Rates (7tn edition), while the 27 hotel rooms generated 221 average daily trips, resulting in a net decrease of 389 daily trips. With the amendment to the Approved Project, Anomaly No. 46 will be modified to include 14 additional hotel rooms and one tennis court. Together, a total of 41 hotel rooms (27+14=41 rooms) and eight tennis courts will be included in Anomaly No. 46. No change to the 3,725-square-foot tennis clubhouse is proposed. The GPA does not include a change in land use designation and would remain as Mixed -Use Horizontal 3/Parks and Recreation (MU-H3/PR). The amendment to the Approved Project is consistent with the following General Plan policies: a. Land Use Element Policy LU1.1 (Unique Environment). Maintain and enhance the beneficial and unique character of the different neighborhoods, business districts, and harbor that together identify Newport Beach. Locate and design development to reflect Newport Beach's topography, architectural diversity, and view sheds. The Project includes an amendment to the PC-47 District regulations on the Tennis Club site and reflects the proposed development on the Property. PC-47 will continue to guide development occurring within the Property. The development standards address building height, setbacks, landscaping, and architectural character. The standards are intended to ensure that the City's unique character is maintained through land use and architectural diversity. b. Land Use Element Policy LU1.2 (Citywide Identity). While recognizing the qualities that uniquely define its neighborhoods and districts, promote the identity of the entire City that differentiates it as a special place within the Southern California region. The area in which in the Property is located is characterized by a variety of residential, commercial, and recreational land uses that reflect a range of architectural styles, which contribute to the unique character of the City. The intensity and architectural character of the Project are compatible with the variety of densities and styles within the area, which are consistent with the identity of the City. The architectural character of the Project, including the 15-18 Resolution No. 2022-66 Page 6 of 26 bungalow -style hotel rooms, detached residential units, and attached residential loft buildings, is consistent with the City's desire to differentiate Newport Beach from other coastal cities. C. Land Use Element Policy LU2.1 (Resident -Serving Land Uses). Accommodate uses that support the needs of Newport Beach's residents including housing, retail, services, employment, recreation, education, culture, entertainment, civic engagement, and social and spiritual activity that are in balance with community natural resources and open spaces. The Project will continue to provide residents with recreational opportunities, culture, entertainment, and civic engagement. The proposed amendment remains supportive of recreational uses by providing one additional tennis court to the previously approved seven courts. The amendment also includes an additional 14 hotel rooms to the previously approved 27-unit hotel development with additional hotel amenities for club members such as a Performance Therapy Center and Yoga Pavilion. d. Land Use Element Policy LU.2.6 (Visitor Serving Uses). Provide uses that serve visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents The Project provides visitors with an updated recreational facility as it includes a new tennis clubhouse and eight tennis courts, which includes a stadium size court. The tennis club is adjacent to a golf course with amenities and is within 2,000 feet from the Newport Bay. The proposed 41 hotel rooms provide additional opportunities for visitors to enjoy the tennis club and nearby recreational activities. e. Land Use Element Policy LU3.2 (Growth and Change). Enhance existing neighborhoods, districts, and corridors, allowing for reuse and infill with uses that are complementary in type, form, scale, and character. Changes in use and/or density/intensity should be considered only in those areas that are economically underperforming, are necessary to accommodate Newport Beach's share of projected regional population growth, improve the relationship and reduce commuting distance between home and jobs, or enhance the values that distinguish Newport Beach as a special place to live for its residents. The scale of growth and new development shall be 15-19 Resolution No. 2022-66 Page 7 of 26 coordinated with the provision of adequate infrastructure and public services, including standards for acceptable traffic level of service. The character of the tennis club, hotel development, and residential units are compatible with the existing land uses and development intensities of the surrounding area. Although the additional 14 hotel rooms and one tennis court requires amendments to adopted plans and regulations, the existing tennis club and hotel development that are the substance of the Approved Project are allowed under the General Plan. The Project has been designed to be compatible with the existing residential, commercial, and recreational uses located within the vicinity of the Project site. In addition, the surrounding area is adequately served by existing infrastructure, including circulation, water, sewer, and storm drainage systems. As a result, the implementation of the Project will not adversely affect those systems or the provision of adequate service to nearby development. f. Land Use Element Policy LU3.3 (Opportunities for Change). Provide opportunities for improved development and enhanced environments for residents in the following districts and corridors, as specified in Polices 6.3.1 through 6.22.7: Fashion Island/Newport Center: expanded retail uses and hotel rooms and development of residential in proximity to jobs and services, while limiting increases in office development. The Project provides enhancement to the Property, which is currently being used exclusively as a tennis club, to include 41 hotel rooms and ancillary uses, and five residential units. The Project retains a total of eight tennis courts and the reconstruction of the Tennis Clubhouse. The Project will be utilized as a recreational facility for residents, guests, and club members. g. Land Use Element Policy LU4.1 (Land Use Diagram). Accommodate land use development consistent with the Land Use Plan. The Project is consistent with the designation of the General Plan Land Use Element, which designates the Property as MU-H3/PR. The Property is located within Anomaly No. 46, which allocates 24 tennis courts with residential permitted in accordance with the MU-1-13 designation. The GPA includes an amendment to the Development Limit (Other) of Anomaly No. 46, to reduce the number of tennis courts to eight and to include 41 hotel rooms. 15-20 Resolution No. 2022-66 Page 8 of 26 h. Land Use Element Policy LU5.1.2 (Compatible Interfaces). Require that the height of development in nonresidential and higher -density residential areas transition as it nears lower -density residential areas to minimize conflicts at the interface between the different types of development. Although the Property is not located adjacent to lower density residential development, the Project has been designed to respect the proximity of the existing residential development adjacent to the Property. The amended PC-47 prescribes maximum building heights and setback requirements for each of the development components to ensure land use compatibility. Building heights for the proposed structures will range from 46 feet for the attached residential loft buildings, 39 feet for the detached residential units, 31 feet for the hotel rooms, and 30 feet for the Tennis Clubhouse, which are within the maximum 50-foot building height allowed by PC-47. i. Land Use Element Policy LU (5.3.3). Require that properties developed with a mix of residential and non-residential uses be designed to achieve high levels of architectural quality in accordance with Policies 5.1.9 and 5.2.1 and planned to assure compatibility among the uses and provide adequate circulation and parking. Residential uses should be seamlessly integrated with non-residential uses through architecture, pedestrian walkways, and landscape. They should not be completely isolated by walls or other design elements. The Project includes one additional tennis court to the tennis club, 41 hotel rooms, two single-family residences, and two residential condominium units. The Project provides adequate parking for each of the proposed uses. Vehicular and pedestrian circulation has been designed to accommodate the residents, as well as guests and members of the tennis club and hotel development. The architectural character of the uses is defined in PC-47 to ensure that compatibility between proposed uses and the surrounding area is maintained. f Land Use Element Policy LU5.3.4 (Districts Integrating Residential and Nonresidential Uses). Require that sufficient acreage be developed for an individual use located in a district containing a mix of residential and non- residential uses to prevent fragmentation and assure each use's viability, quality, and compatibility with adjoining uses. 15-21 Resolution No. 2022-66 Page 9 of 26 Each of the uses has been designed to complement the overall Project. The uses are connected by the vehicular and pedestrian circulation system, including sidewalks and pedestrian pathways. Land use compatibility is achieved through a common landscape theme and design guidelines in PC- 47 to ensure that the architectural integrity of the Project is not compromised. k. Land Use Element Policy LU6.14.2 (Newport Center). Provide the opportunity for limited residential, hotel, and office development in accordance with the limits specified by Tables LU1 and LU2. The Project has a mix of land uses including single-family residential, attached residential condominiums, recreational tennis club facilities, and visitor -serving commercial uses. These uses are permitted in Table LU1 under the MU-H3/PR land use designation. The GPA proposes to amend the development limits of Table LU2 to include eight tennis courts and 41 hotel rooms. 1. Land Use Element Policy LU6.14.6 (Pedestrian Connectivity and Amenity). Encourage that pedestrian access and connections among uses within the district be improved with additional walkways and streetscape amenities concurrent with the development of expanded and new uses. The Project provides for both pedestrian and vehicular access within the Property. Sidewalks and pedestrian pathways are incorporated into the circulation system that are intended to accommodate pedestrians utilizing the tennis club, hotel facilities, and future residents. A landscape plan has been provided which includes plant materials that are intended to reflect and complement the existing character within the project area. Tribal Consultation Finding: Pursuant to California Government Code Section 65352.3 (S1318), a local government is required to contact the appropriate tribes identified by the Native American Heritage Commission ("NAHC") each time it considers a proposal to adopt or amend the General Plan. If requested by any tribe, the local government must consult for the purpose of preserving or mitigating impacts to cultural resources. 15-22 Resolution No. 2022-66 Page 10 of 26 Fact in Support of Finding of Consistency: The City received comments from the NAHC indicating that 12 tribal contacts should be provided notice regarding the proposed amendment. The tribal contacts were provided notice on June 9, 2022. California Government Code Section 65352.3 requires notification 90 days prior to Council action to allow tribal contacts to respond to the request to consult. The Project will not be heard by the City Council until the 90-day period expires on September 7, 2022. Section 4: Charter Section 423 requires voter approval of any major General Plan amendment to the General Plan. A major General Plan amendment is one that significantly increases allowed density or intensity by 40,000 square feet of non- residential floor area, increases traffic by more than 100 peak hour vehicle trips (AM/PM), or increases residential dwelling units by 100 units. These thresholds apply to the total of increases resulting from the amendment itself, plus 80 percent of the increases resulting from other amendments affecting the same neighborhood (defined as a Statistical Area as shown in the General Plan Land Use Element) and adopted within the preceding 10 years. Council Policy A-18 (Guidelines for Implementing Charter Section 423) requires that proposed amendments to the General Plan be reviewed to determine if a vote of the Newport Beach electorate would be required. This policy includes a provision that all General Plan amendments be tracked as "Prior Amendments" for 10 years to determine if minor amendments in a single Statistical Area cumulatively exceed the thresholds indicated above. Facts in Support Finding of Consistency with Charter Section 423: 1. The Property is within Statistical Area L1. Prior amendments within the past ten years are Vivante Senior Housing and Residences at Newport Center. Charter Section 423 counts 80 percent of prior increases, which results in a cumulative increase of 94 dwelling units, 23 AM trips, and 43 PM trips between both projects. There were no square footage increases. 2. The GPA results in an increase of 14,000 square feet (at the rate of 1,000 square feet per hotel unit) of non-residential floor area, 9.51 AM trips, and 12.42 PM trips. When combined with 80 percent of the prior increases, this results in cumulative increases of 14,000 square feet of non-residential floor area, 32.51 AM trips, and 55.42 PM trips. As none of the thresholds specified by Charter Section 423 are 15-23 Resolution No. 2022-66 Page 11 of 26 exceeded, no vote of the electorate is required if the City Council chooses to approve the GPA. Section 5: On January 24, 2012, the City Council approved Site Development Review No. SD2011-002, which authorized the construction of Approved Project. The proposed changes to the Approved Project, necessitate an amendment to the SDA. In accordance with Section 4.0 of the Newport Beach Country Club Planned Community (PC-47) (Site Development Review), the following findings and facts in support of Amendment to Site Development Review No. SD2011-002 are set forth as follows: Findina of Consistencv with Section 4.30 ): The Site Development Plan shall be in compliance with all other provisions of the Newport Beach Country Club Planned Community Development Plan. Facts in Support of Finding of Consistency with Section 4.3(1): 1. PC-47 requires that a site development review process to be completed for construction of any new major building structure located on the subject site and would require consideration and approval by the Planning Commission prior to the issuance of grading or building permits. An amendment to the previously approved site development review has been submitted for the Property and meets provisions stated in the draft PCDP and thereby meets the intent specified in Section 20.52.080 (Planning and Zoning, Permit Review Procedures, Site Development Reviews) of the NBMC. 2. The Project includes an amendment to the PC-47 to incorporate revisions to the Approved Project. These revisions include the addition of one tennis court, the addition of 14 hotel rooms, and the conversion of three single-family residences to residential condominium units. Should the PC-47 amendment be approved, the SDA complies with all provisions of the PC-47, as the proposed development complies with all development criteria specified in the PC-47 in order to provide a coordinated, cohesive, and comprehensive large-scale planning project. Findina of Consistencv with Section 4.3 The Site Development Plan shall be compatible with the character of the neighboring uses and surrounding sites and shall not be detrimental to the orderly and harmonious development of the surroundings and of the City. 15-24 Resolution No. 2022-66 Page 12 of 26 Fact in Support of Finding of Consistency with Section 4.3(2): The architecture, landscaping components, circulation design, and all other project components reflected in the SDR are compatible with the character of the neighboring uses and surrounding sites. The additional 14 hotel rooms and attached residential condominium buildings are of similar architectural style to the Approved Project's bungalow -styled rooms. As a result, the Project is not detrimental to the orderly and harmonious development of the surroundings and the City. Finding of Consistency with Section 4.3(3): The Site Development Plan shall be sited and designed to maximize of aesthetic quality of the Newport Beach Country Club Planned Community Development Plan as viewed from surrounding roadways and properties, with special consideration given to the mass and bulk of buildings and the streetscape on East Coast Highway. Facts in Support of Finding of Consistency with Section 4.3(3): 1. The Property is separated from East Coast Highway by a commercial office plaza which comprises of three two-story office buildings (1200 Newport Center Drive). The office plaza includes landscaping along East Coast Highway with trees and various plantings. The Newport Beach Country Club golf clubhouse is located approximately 150 feet west of the Property. Additionally, the Property is approximately 250 feet from East Coast Highway and is not visible to motorists travelling on the street. 2. The Project is designed consistent with the Approved Project's architectural style with landscaping, circulation, signage and other components which visually connect the tennis clubhouse and attached residential structures to the smaller structures such as the hotel rooms and single-family residences. Therefore, the aesthetic quality of PC-47 is continued to be maximized as viewed from the surrounding roadways and properties. 3. The Project seeks to add additional hotel rooms, ancillary hotel uses, and attached residential buildings to the Property. However, the overall footprint of the Project is not expanding and will not affect the mass of the Project as viewed from surrounding roadways and properties. 15-25 Resolution No. 2022-66 Page 13 of 26 Findina of Consistencv with Section 4.3(4): Site plan and layout of buildings, parking areas, pedestrian and vehicular access ways, landscaping and other site features shall give proper consideration to functional aspects of site development. Facts in Support of Finding of Consistency with Section 4.3(4): 1. The site plan and layout of buildings, parking areas, pedestrian and vehicular access ways, landscaping, and other site features maximizes the functionality of the proposed uses, while avoiding conflicts between uses and activities. The Project's multiple components (tennis club, residential, and hotel) have been designed and sited to function cohesively not only with each other, but also with the adjacent existing golf course uses. 2. The Project promotes additional functionality between residential and hotel components, as residential condominiums are attached to hotel rooms in two separate loft buildings. Underground parking is provided in the loft buildings, with additional street parking and parking lots to serve hotel and tennis club guests. Each of the two single-family residences provide a two -car garage to serve its residents. Section 6: On April 10, 2013, the California Coastal Commission, which had permitting jurisdiction for coastal development permits at the time, issued a notice of intent to issue CDP No. 5-12-160 for the Approved Project. A one (1)-year extension was granted on June 2, 2015. However, the CDP subsequently expired. The City obtained CDP permitting authority in January of 2017. On November 20, 2018, the City's Zoning Administrator approved the CDP, which authorized the redevelopment of the Approved Project. The Project requires an amendment to Coastal Development Permit No. CD2017-039. In accordance with Section 21.52.015(F) (Local Coastal Program Implementation Plan, Coastal Development Permits, Findings and Decisions) the following findings and facts in support of Amendment to Coastal Development Permit No. CD2017-039 are set forth as follows: Finding of Consistency with Section 21.52.015(F)(1): Conforms to all applicable sections of the certified Local Coastal Program. 15-26 Resolution No. 2022-66 Page 14 of 26 Facts in Support of Findina of Consistencv with Section 21.52.015(F)(1): 1. The Coastal Land Use Plan designates the Tennis Club site as Mixed -Use Horizontal/Parks and Recreation (MU-H/PR). Policy 2.1.8-1 of the Coastal Land Use Plan allows the horizontal intermixing of hotel rooms, single-family residences, attached residential condominiums, and tennis club facilities on the project site (formerly known/referenced as the Balboa Bay Tennis Club). Permitted uses include those permitted by the MU-H and PR land use designations. A complete consistency analysis of each of the applicable Coastal Land Use Plan policies is included in Table 11 of the Land Use and Planning Section of the previously adopted MND, pages 82 through 87, as well as in Table 5-5 of the Land Use and Planning Section of Addendum to the MND. Furthermore, facts have been provided in this resolution which support the proposed amendment to the Local Coastal Program Implementation Plan. In summary, the Project is consistent with the Coastal Land Use Plan. 2. The MU-H coastal land use designation identifies a maximum density/intensity limit of 1.5 floor area ratio ("FAR"), with a minimum FAR of 0.25 and a maximum FAR of 0.5 for retail uses and a maximum of 1.0 for residential. The Project proposes 65,595 square feet of nonresidential floor area (approximately 0.21 FAR) for the hotel rooms, concierge & guest center, and ancillary hotel uses which include a performance therapy center, yoga pavilion, office, common area, and a spa and fitness center. Additionally, five residential dwelling units totaling 20,653 square feet (approximately 0.06 FAR). The proposed density/intensity of the hotel and single-family units comply with the FAR limitations identified in the Coastal Land Use Plan. 3. The PR category applies to land used or proposed for active public or private recreational use. Permitted uses include parks (both active and passive), golf courses, marina support facilities, aquatic facilities, tennis clubs and courts, private recreation, and similar facilities. The PR designation on the Property is applicable to the existing and proposed private tennis club and tennis courts. The density/intensity limitations include incidental buildings, such as maintenance equipment sheds, supply storage, and restrooms, not included in determining intensity limits. The proposed tennis club and ancillary uses are consistent with this land use designation. 4. The Property is part of the 145-acre planned community (PC-47), which has been adopted to regulate developments within the Property and the adjacent Golf Club 15-27 Resolution No. 2022-66 Page 15 of 26 Site, and is in conformance with the Coastal Land Use Plan designation pursuant to Section 21.26.055(S)(2) of the NBMC. 5. The Project conforms to all applicable development standards in the proposed amendment to PC-47, including density/intensity, setbacks, building heights, and parking. 6. The Property is not located in an area known for the potential of seismic activity or liquefaction. All projects are required to comply with the California Building Code ("CBC") and Building Division standards and policies. Geotechnical investigations specifically addressing liquefaction are required to be reviewed and approved prior to the issuance of a building permit. Permit issuance is also contingent on the inclusion of design mitigation identified in the investigations. Construction plans are reviewed for compliance with approved investigations and CBC prior to building permit issuance. 7. Elevations on the Property range from 104 feet up to 120 feet North American Vertical Datum of 1988 (NAVD88) above mean sea level. These site elevations are well above projected sea level rise in Newport Bay for the next 75 years and the site is not subjected to other coastal hazards. 8. The Project is required to develop and implement a Stormwater Pollution Prevention Plan ("SWPPP") since the Project involves clearing, grading, and ground disturbance of more than one acre. Pursuant to Section 21.35.030 (Local Coastal Program Implementation Plan, Water Quality Control, Construction Pollution Prevention Plan) of the NBMC, when a SWPPP is required, a Construction Pollution Prevention Plan ("CPPP") is required to implement temporary Best Management Practices ("BMP") during construction to minimize erosion and sedimentation and to minimize pollution of runoff and coastal waters derived from construction chemicals and materials. A CPPP has been prepared and will be reviewed by the City's Engineer Geologist prior to issuance of grading/building permits for site grading. Construction plans and activities will be required to adhere to the approved CPPP/SWPPP. 9. A Water Quality and Hydrology Plan ("WQHP") is required Pursuant to Section 21.35.050 (Local Coastal Program Implementation Plan, Water Quality Control, Water Quality and Hydrology Plan) of the NBMC since the Project is considered a development of water quality concern and includes the development of five dwelling units, more than 10,000 square feet of impervious surface area, and a parking area in excess of 5,000 square feet. The WQHP/WQMP will be reviewed 15-28 Resolution No. 2022-66 Page 16 of 26 and approved by the City's Engineer Geologist prior to the issuance of building permits for site grading. The WQHP/WQMP includes a polluted runoff and hydrologic site characterization, a description of site design BMP, and documentation of the expected effectiveness of the proposed BMP. Construction plans will be reviewed for compliance with the approved WQHP/WQMP prior to building permit issuance. 10. An Analysis of the Fiscal and Economic Impacts was prepared on August 29, 2022, by Kosmont Companies to analyze the construction of new visitor accommodations in the coastal zone in accordance with Section 21.48.025 (Local Coastal Program Implementation Plan, Standards for Specific Land Uses, Visitor Accommodations) of the NBMC. The report provides a feasibility analysis stating that the anticipated average daily room rate for all 41 rooms is approximately $920 and the statewide average daily room rate is $205.69. Therefore, the proposed accommodations are not considered lower cost accommodations. The report considers the specific location of the Property as an inappropriate location for low cost accommodations. Additionally, low cost accommodations are not feasible due to prohibitive land and construction costs. The Property does not currently provide accommodations of any kind and implementation of the Project would not impact low-cost accommodations. While the Project does not include any lower cost rooms, and the Local Coastal Program Implementation Plan defines it as an impact, there is no impact on the provision of lower -cost visitor accommodations in the Coastal Zone. The Project features larger guest facilities to accommodate a higher occupancy per room, kitchens in a majority of the hotel rooms, and separate living rooms with sofa beds, all which offset higher costs of accommodations. Finding of Consistency with Section 21.52.015(F)(2): 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 Findina of Consistencv with Section 21.52.015(F)(2): 1. The Property is not located between the nearest public road and the sea or shoreline. The Property will not affect the public's ability to gain access to, use, and/or view the coast and nearby recreational facilities. Vertical access to Newport Bay is available via existing public access at 1601 Bayside Drive, which is located approximately 1,600 feet southwest of the subject property. 15-29 Resolution No. 2022-66 Page 17 of 26 2. Coastal Land Use Plan, Policy 4.4.1-6 and Figure 4-3 (Coastal Views) identify the closest public view road as Newport Center Drive, located approximately 170 feet east of the Property and the closest public viewpoint as Irvine Terrace Park, located 525 feet south of the Property. Coastal views from these view corridors and viewpoints are directed toward the Newport Bay and the Pacific Ocean. Since the Property is located to the north of Irvine Terrace Park, the Project will not affect coastal views due to its orientation. From Newport Center Drive, there is a zero to 40-foot grade difference to the project area below. The maximum height allowed in PC-47 is 50 feet for the attached condominium lofts, 39 feet for the two single- family villas, 30 feet for the tennis clubhouse, and 31 feet for the hotel rooms. Therefore, the majority of the Project would sit below the existing grade elevations along Newport Center Drive, minimizing the visibility of the project site and would not obstruct public coastal views. During construction, construction equipment would be obscured by vegetation and the grade differential so it would not obstruct coastal views from motorists traveling along Newport Center Drive. The Project will not impact coastal views. Section 7: On January 24, 2012, the City Council approved Tentative Vesting Tract Map No. 15347, which authorized the creation of seven separate lots for the tennis club, five single-family residences, and 27 hotel rooms, and lettered lots for common areas and a private street. The Applicant proposes an amendment to the vesting tentative tract map to accommodate the Project, which consists of two single -unit residential dwellings, three residential condominiums, 41 hotel rooms, a tennis clubhouse, their common open space areas and a private street to support the proposed uses. The TVMA reflects the combination of two previously divided lots which were intended for two detached single-family residences. This results in the elimination of one lot for a total of six separate lots. No changes to the lots created for common areas and a private street are proposed. The map of the VTMA has also been modified to include residential condominium portion of the Project. In accordance with Section 19.12.070 (Subdivisions, Tentative Map Review, Required Findings for Action on Tentative Maps) the following findings and facts in support of Tentative Vesting Tract Map Amendment No. NT2005-003 are set forth as follows: Findina of Consistencv with Section 19.12.070(A)(1): 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. 15-30 Resolution No. 2022-66 Page 18 of 26 Facts in Support of Finding of Consistency with Section 19.12.070(A)(1): 1. The Project is consistent with the MU-H3/PR General Plan designation of the Property. 2. The Public Works Department has reviewed the proposed revisions to the approved vesting tentative tract map and determined it is consistent with the Title 19 (Subdivisions) of the NBMC and applicable requirements of the Subdivision Map Act set forth in California Government Code Section 664410 et seq. 3. Conditions of approval have been included to ensure compliance with Title 19 (Subdivisions) of the NBMC. Finding of Consistency with Section 19.12.070(A)(2): That the site is physically suitable for the type and density of development. Facts in Support of Finding of Consistency with Section 19.12.070(A)(2): 1. The Property is entirely developed and does not support any environmental resources. 2. The Property is located in the Newport Center and Fashion Island area. The Property is currently improved with a private tennis club. Given its location, this site is ideal for the development of a recreation and mixed -use project as allowed by the General Plan Land Use Element. Finding of Consistency with Section 19.12.070(A)(3): That the design of the subdivision or the proposed improvements will not cause substantial environmental damage nor substantially and avoidably injure fish or wildlife or their habitat. 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. 15-31 Resolution No. 2022-66 Page 19 of 26 Fact in Support of Finding of Consistency with Section 19.12.070(A)(3): An Addendum to the MND has been prepared and concludes that no significant environmental impacts will result from the Project in accordance with the proposed subdivision map revision. Finding of Consistency with Section 19.12.070(A)(4): 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 of Consistency with Section 19.12.070(A)(4): 1. The VTMA is required for the subdivision of parcels in order to accommodate the development of the tennis club and courts, two single -unit residential dwellings, and 41 hotel rooms on the Property. All construction for the project will comply with all Building, Public Works, and Fire Codes, which are in place to prevent serious public health problems. Public improvements will be required of the developer per Section 19.28.010 of the NBMC and Section 66411 of the Subdivision Map Act. Compliance with all ordinances of the City and all conditions of approval for the Project will ensure that the Project will not cause any serious health problems. 2. All mitigation measures will be implemented as outlined in the Addendum to the MND to ensure the protection of the public health. 3. No evidence is known to exist that would indicate that the planned subdivision pattern will generate any serious public health problems. Finding of Consistency with Section 19.12.070(A)(5): 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 easements 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. 15-32 Resolution No. 2022-66 Page 20 of 26 Facts in Support of Finding of Consistency with Section 19.12.070(A)(5): 1. The design of the Project will not conflict with any easements acquired by the public at large for access through or use of property within the Property. 2. An easement through the Property will be retained by the City to sewer and utilities purposes. 3. No other public easements for access through or use of the Property have been retained for use by the public at large. Finding of Consistency with Section 19.12.070(A)(6): 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 of Consistency with Section 19.12.070(A)(6): The Property is not subject to the Williamson Act since the Property is not considered an agricultural preserve and is less than 100 acres. Finding of Consistency with Section 19.12.070(A)(7): That, in the case of a "land project" as defined in Section 11000.5 of the California Business and Professions Code: (a) there is an adopted specific plan for the area to be included within the land project; and (b) the decision -making body finds that the proposed land project is consistent with the specific plan for the area. Facts in Support of Finding of Consistency with Section 19.12.070(A)(7): 1. The Property is not a "land project" as defined in Section 11000.5 of the California Business and Professions Code. 2. The Property is not located within a specific plan area. 15-33 Resolution No. 2022-66 Page 21 of 26 Findina of Consistencv with Section 19.12.070(A)(8): 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. Facts in Support of Finding of Consistency with Section 19.12.070(A)(8): The VTMA and improvements are subject to Title 24 of the California Code of Regulations ("California Building Standards Code") that requires new construction to meet minimum heating and cooling efficiency standards depending on location and climate. The Newport Beach Building Division enforces the California Building Standards Code and will ensure compliance through the plan check and inspection process. Finding of Consistency with Section 19.12.070(A)(9): 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 of Consistency with Section 19.12.070(A)(9): 1. The proposed amendment to Vesting Tentative Tract Map 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. The Project does not involve the elimination of residential rooms and therefore will not affect the City's ability to meet its share of housing needs. 2. Public services are available to serve the Project and the Addendum to the MND prepared for the Project indicates that the Project's potential environmental impacts are properly mitigated. Finding of Consistency with Section 19.12.070(A)(10): 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. Facts in Support of Finding of Consistency with Section 19.12.070(A)(10): 15-34 Resolution No. 2022-66 Page 22 of 26 1. Waste discharge into the existing sewer system will be not violate Regional Water Quality Control Board ("RWQCB") requirements. 2. Sewer connections have been conditioned to be installed per City Standards, the applicable provisions of Chapter 14.24 (Sewer Connection, Permits), and the latest revision of the Uniform Plumbing Code. Finding of Consistency with Section 19.12.070(A)(11): 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. Facts in Support of Finding of Consistency with Section 19.12.070(A)(11): 1. The Property is located in the coastal zone and subject to a coastal development permit. 2. The Property does not have access to any beaches, shoreline, coastal waters, tidelands, coastal parks or trails. 3. Facts in Support of Finding of Consistency with Sections 19.12.070(A)(5) and (A)(6) are hereby incorporated by reference. Section 8: In accordance with Section 20.52.040 (Planning and Zoning, Permit Review Procedures, Limited Term Permits) the following findings and facts in support of Amendment to Limited Term Permit XP2011-004 are set forth as follows: Finding of Consistency with Section 20.52.040(G)(1): The operation of the limited duration use at the location proposed and within the time period specified would not be detrimental to the harmonious and orderly growth of the City, nor 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 requested limited duration use. 15-35 Resolution No. 2022-66 Page 23 of 26 Facts in Support of Finding of Consistency with Section 20.52.040(G)(1): 1. The limited term permit will allow two temporary modular trailers and portable toilets. Both modular trailers are approximately 33 feet long and 13 feet wide. One modular trailer is proposed to be used as a construction office located at the southwest portion of the Property and will be staged at this location through the entire duration of the Project. The second modular office is proposed to be used as a temporary office for tennis club operations and will be located on the easterly portion of the Property through the construction phase of the project (approximately 16 months after construction begins). The portable toilets are proposed to serve the temporary tennis club office and located nearby. 2. The operation of the temporary modular trailers is proposed to exceed 90 days from the date of the permit. The construction office is proposed to be staged for the duration of all construction activities, which is estimated to be approximately 20 months. The tennis club office is proposed to be staged for approximately 16 months, and will be removed upon completion of the Project. Finding of Consistency with Section 20.52.040(G)(2): The subject lot is adequate in size and shape to accommodate the limited duration use without material detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the lot. Fact in Support of Finding of Consistency with Section 20.52.040(G)(2): The Property is approximately seven acres in size. Based on the construction phasing plan, there is adequate area to accommodate the proposed modular trailers and portable toilets throughout the various phases of construction. The construction trailer will be located within an area which is fenced off from public view and access. Finding of Consistency with Section 20.52.040(G)(3): The subject lot is adequately served by streets or highways having sufficient width and improvements to accommodate the kind and quantity of traffic that the limited duration use would or could reasonably be expected to generate. 15-36 Resolution No. 2022-66 Page 24 of 26 Facts in Support of Finding of Consistency with Section 20.52.040(G)(3): 1. The Property has an existing parking lot with two entrances currently taken from Clubhouse Drive, which has a westerly outlet to East Coast Highway and an easterly outlet to Granville Drive and Newport Center Drive. 2. During the various phases of construction, the easterly entrance to the parking lot will remain available to the public for parking and will provide direct access for the modular office trailer and portable toilets, while the westerly entrance will be for construction access only. The construction trailer is intended for construction use only and not for the public. There are no traffic issues anticipated. Finding of Consistency with Section 20.52.040(G)(4): Adequate temporary parking to accommodate vehicular traffic to be generated by the limited duration use would be available either on -site or at alternate locations acceptable to the Zoning Administrator. Facts in Support of Finding of Consistency with Section 20.52.040(G)(4): 1. The proposed trailers will not create additional parking demand since it will be utilized as offices for construction activities and employees displaced during the renovation of the tennis clubhouse. 2. A portion of the existing parking lot will remain, with access available on the easterly side of the lot from Granville Drive and Newport Center Drive. The remaining parking lot provides adequate parking for employees and members of the tennis club. Finding of Consistency with Section 20.52.040(G)(5): The limited duration use is consistent with all applicable provisions of the General Plan, any applicable specific plan, the Municipal Code, and other City regulations. Facts in Support of Finding of Consistency with Section 20.52.040(G)(5): 1. The temporary trailers are conditioned to comply with all applicable provisions of the General Plan, Municipal Code, and other City regulations. 2. The Property is not located within a specific plan area. 15-37 Resolution No. 2022-66 Page 25 of 26 Section 9: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 10: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 11: An Addendum to Mitigated Negative Declaration No. ND2010-008 (MND) was prepared for the Project in compliance with the California Environmental Quality Act ("CEQA") set forth in California Public Resources Code Section 2100 et seq.; CEQA's implementing regulations set forth in CCR Title 14, Division 6 Chapter 3 ("CEQA Guidelines") and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act) to ensure that the Project will not result in new or increased environmental impacts. On the basis of the MND and entire environmental review record, the additional tennis court, hotel rooms, ancillary hotel uses, and conversion of three single-family residences to condominium units will not result in any new significant impacts that were not previously analyzed in the MND. The Addendum confirms and provides substantial evidence that the potential impacts associated with this Project would either be the same or less than those described in the MND, or as mitigated by applicable mitigation measures in the MND. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the MND, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, the City Council adopted Resolution No. 2022- thereby adopting an addendum to the previously adopted MND. Resolution 2022- including all findings contained therein, is hereby incorporated by reference. 15-38 Resolution No. 2022-66 Page 26 of 26 Section 12: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 25th day of October, 2022. ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaro E. Harp City torney Attachment(s): Kevin Muldoon Mayor Exhibit "A" - General Plan Amendment for the Tennis Club at Newport Beach Exhibit "B" - Conditions of Approval for the Tennis Club at Newport Beach 15-39 EXHIBIT "A" GENERAL PLAN AMENDMENT FOR THE TENNIS CLUB AT NEWPORT BEACH 15-40 Anomaly Number Statistical Area Land Use Designation Development Limit (sf) Development Limit (Other) Additional Information 46 L1 MU-H3/PR 3,725 8 Tennis Courts Residential permitted in accordance with MU- H3 41 Hotel Rooms* *27 rooms converted from 17 tennis courts per Council Resolution 2012-10 and 14 rooms per General Plan Amendment PA2022- 260 15-41 EXHIBIT "B" CONDITIONS OF APPROVAL FOR THE TENNIS CLUB AT NEWPORT BEACH (Project -specific conditions are in italics) Planning Division 1. The project 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 compliance with all applicable submittals approved by the City of Newport Beach ("City") and all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 3. Notwithstanding the legislative actions (ie. General Plan Amendment, Planned Community Development Plan, and Local Coastal Program Amendment) activities reviewed under Planning Activity No. PA2021-260 shall expire unless exercised within 24 months from the date of approval as specified in Section 20.54.060 of the Newport Beach Municipal Code, unless an extension is otherwise granted by the City for a period of time provided for in the Development Agreement pursuant to the provisions of California Government Code Section 66452.6(a). 4. The Vesting Tentative Tract Map Amendment, as reviewed under Planning Activity No. PA2021-260, shall expire in accordance with the Subdivision Code, unless an extension is otherwise granted consistent with the Subdivision Code and Subdivision Map Act. The expiration date shall be extended for the unexpired term of the Second Amendment to Development Agreement between City of Newport Beach and Golf Realty Fund. 5. The project shall consist of the followings: a. Tennis Club: A 3,725 square -foot tennis clubhouse and eight (8) tennis courts; b. Hotel: Forty-one (41) hotel rooms of 47,484 square feet, a 2,200 square -foot concierge and guest meeting facility, a 7,500 square -foot spalfitness center, and 4,686 square feet of ancillary uses; and c. Residential: two (2) single-family units and three (3) condominium units 6. Pickleball courts shall not be permitted after the issuance of a Certificate of Occupancy for the Tennis Clubhouse and Spa and Fitness Center unless the property owner and/or picklebali facility operator follows any and all City of Newport Beach General Plan, Municipal Code, or other applicable requirements in order to continue the use of pickleball courts. 15-42 7. The project shall be subject to all applicable development standards prescribed in Planned Community Development Plan Amendment, as reviewed under Planning Activity No. PA2021-260, for the Tennis Club site, such as but not limited to, building height, building setbacks, parking, lighting, sign standards, etc. 8. Upon the effective date of Local Coastal Program Implementation Plan Amendment, as reviewed under Planning Activity No. PA2021-260, Site Development Permit No. SD2011-002, Limited Term Permit No. XP2011-004, and Vesting Tentative Map No. NT2005-003, approved for the Approved Project, shall be deemed of no further force. 9. The temporary modular building to accommodate on -going tennis club operation during the construction of new tennis clubhouse shall be located on the existing tennis courts, shall not interfere with the construction activities or parking, and shall be removed from the project site upon completion/occupancy of the new clubhouse. 10. Prior to the issuance of a building permit, the applicant shall pay all applicable development fees (i.e. school, park in -lieu, transportation corridor agency), unless otherwise addressed separately in the Development Agreement. 11. Prior to recordation of the Final Tract Map and the issuance of building permits, the Final Tract Map shall be signed by all of the current record owners of the property, which presently include: (1) Elliot Feuerstein as Managing Member of Mesa Shopping Center -West LLC; (2) Elliot Feuerstein as Managing Member of Mesa Shopping Center -East LLC; (3) Irving Chase as General Partner of Fainbarg Ill L.P.; and (4) Robert O Hill as Executive Director of Golf Realty Fund LP. 12. Any substantial change to the approved plans, shall require an amendment to all non -legislative activities reviewed under Planning Activity No. PA2021-260, or the processing of new permits. 13. This Site Development Review, Coastal Development Permit, and Limited Term Permit may be modified or revoked by the City Council or Planning Commission should they determine that the proposed development, uses, and/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. 14. A copy of the Resolution, including conditions of approval Exhibit "F" shall be incorporated into the Building Division and field sets of plans prior to issuance of the building permits. 15. 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 file. The plans shall be identical to those approved by 15-43 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 and shall highlight the approved elements such that they are readily discernible from other elements of the plans. 16. 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. 17. 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. 18. Prior to the final of issuance of a certificate of occupancy, the applicant shall schedule an inspection by the Planning Division to confirm that all landscaping was installed in accordance with the approved plan. 19. Prior to the issuance of a building permit, the applicant shall prepare photometric study in conjunction with a final lighting plan for approval by the Planning Division. The survey shall show that lighting values are "l" or less at all property lines. 20. Lighting shall be in compliance with applicable standards of Planned Community Development Plan Amendment, as reviewed under Planning Activity No. PA2021- 260 and Section 20.30.070 of the Newport Beach Municipal Code. Exterior on -site lighting shall be shielded and confined within site boundaries. No direct rays or glare are permitted to shine onto public streets or adjacent sites or create a public nuisance. "Walpak" and up -lighting type fixtures are not permitted. Parking area lighting shall have zero cut-off fixtures. 21. The entire project shall not be excessively illuminated based on the outdoor lighting standards contained within Section 20.30.070 of the Newport Beach Municipal Code, or, if in the opinion of the Community Development Director, the illumination creates an unacceptable negative impact on surrounding land uses or environmental resources. The Community Development Director may order the dimming of light sources or other remediation upon finding that the site is excessively illuminated. 22. Prior to the final of issuance of a certificate of occupancy or final of building permits for each component of the project (i.e. residential, hotel, or tennis club) the applicant shall schedule an evening inspection by the Code Enforcement Division to confirm control of all lighting sources. 15-44 23. 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. 24. 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 10:00PM Between the hours of 10:OOPM and 7.00AM 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 25. The construction and equipment staging area for each phase of the project shall be located in the least visually prominent area on the site and shall be properly maintained and/or screened to minimize potential unsightly conditions. 26. A screen and security fence that is a minimum of six feet high shall be placed around the construction site during construction for each phase of the project. 27. Construction equipment and materials shall be properly stored on the site when not in use for each phase of the project. 28. 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. 29. 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. 30. 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. 31. 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 15-45 form of on -site media broadcast, or any other activities as specified in the Newport Beach Municipal Code to require such permits. 32. All proposed signs shall be in conformance with the provision of the Planned Community Development Plan Amendment, as reviewed under Planning Activity No. PA2021-260, and Chapter 20.42 of the Newport Beach Municipal Code and shall be reviewed and approved by the City Tragic Engineer if located adjacent to the vehicular ingress and egress. 33. The final location of the signs shall be reviewed by the City Traffic Engineer and shall conform to City Standard 110-L to ensure that adequate vehicular sight distance is provided. 34. 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 Tennis at Newport Beach Project Amendment including, but not limited to, General Plan Amendment, Local Coastal Land Use Plan Amendment, Planned Community Development Plan Amendment, Amendment to Major Site Development Review No. SD2011-002, Amendment to Coastal Development Permit No. CD2017-039, Amendment to Vesting Tentative Tract Map No. NT2005-003, Amendment to Limited Term Permit No. XP2011-004, & Second Amendment to Development Agreement No. DA2008-001(PA2021-260). 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/or the 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 35. An automatic fire sprinkler system shall be required for the residential and hotel components of the project. 36. A fire alarm system shall be required for the hotel component of the project. 37. A Fire Master Plan shall be submitted to the Fire Prevention Division for approval. The plan shall include information on the following (but not limited to) subjects: fire department vehicle access to the project site, secondary emergency vehicle 15-46 access, firefighter access (hose pull) around structures, fire lane identification, location of fire hydrants and other fire department appliances, and the location and type of gates or barriers that restrict ingress/egress. 38. All portions of the perimeter of all structures shall be located within 150' of a fire lane as measured along an approved route. A portion of the proposed structure exceeding this distance is considered "out of access" and shall be corrected during plan check review by one of the following methods: a. Provide additional fire lanes to bring the entire structure "in access", or b. Propose an alternate form of mitigation via the Alternate Methods and Materials provisions of the fire code for the Fire Marshal's review. There is no guarantee that the Alternate Methods and Materials proposal will be approved as proposed. 39. Fire department access roads shall comply with Newport Beach Fire Guidelines C.01 and C.02. 40. Approved fire apparatus access roads shall be provided for every facility, building or portion of a building hereafter constructed or moved into or within the jurisdiction. The fire apparatus access road shall comply with the requirements of this section and shall extend to within 150 feet (45 720 mm) of all portions of the facility and all portions of the exterior walls of the first story of the building as measured by an approved route around the exterior of the building or facility. 41. An approved water supply capable of supplying the required fire flow for fire protection shall be provided to the premises. Fire -flow requirements for buildings or portions of buildings and facilities shall be determined by Appendix B of the 2019 California Fire Code. 42. Fire hydrants shall be spaced along fire department access roads in compliance with the 2019 California Fire Code Appendix C. 43. Where a portion of the facility or building hereafter constructed or moved into or within the jurisdiction is more than 400 feet from a hydrant on a fire apparatus access road, as measured by an approved route around the exterior of the facility or building, on -site fire hydrants and mains shall be provided. 44. Additional facilities or changes to the current facilities shall require submitted plans to the Newport Beach Fire Prevention Division for all changes, additions and modifications to existing or new fire protection systems. 45. The use or storage of portable propane heaters shall be prohibited. Heaters for future outdoor areas shall be fixed and plumbed with natural gas. 15-47 46. All fire hydrants and fire access road shall be installed and approved by the Fire Department prior to the delivery of combustible material on site. Building Division 47. Pursuant to CBC Chapter 1, Division 1.9, all temporary construction trailers, modular office buildings, and safe pedestrian passageways around the construction sites shall be disabled accessible. 48. All temporary modular office buildings shall be approved by the State of California for the proposed use. 49. Foundations for temporary construction trailers and modular office buildings shall be designed to provide anchorage for these structures against seismic and wind loads; and provided with temporary utility connections. 50. 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. 51. 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. 15-48 Off -Site Impacts • Encourage car-pooling 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. • Sweep access points daily. • Encourage receipt of materials during non -peak traffic hours. • Sandbag construction sites for erosion control. Fill Placement 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 (10%) soil moisture content in the top six-inch surface layer, subject to review/discretion of the geotechnical engineer. 52. 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. 53. 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, and must show amount of stormwater retained prior to going into the proprietary filtration system. 54. 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 15-49 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 55. The Final Tract Map shall be legible, scaled, dimensioned, and complete with all necessary pertinent information and details such as easement limits and descriptions; annotated lot lines, centerlines, and boundary lines; signature certificates; curve and line tables; etc. 56. The Final Tract Map shall be prepared on the California coordinate system (NAD88). Prior to Map recordation, 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 the Orange County Subdivision Code and Orange County Subdivision Manual. The Final Tract Map to be submitted to the City of Newport Beach shall comply with the City°s CADD Standards. Scanned images will not be accepted. 57. Prior to recordation, the Final Map boundary shall be tied onto the Horizontal Control System established by the County Surveyor in a manner described in Sections 7-9-330 and 7-9-337 of the Orange County Subdivision Code and Orange County Subdivision Manual, Subarticle 18. Monuments (one -inch iron pipe with tag) shall be set On Each Lot Corner unless otherwise approved by the City Engineer. Monuments shall be protected in place if installed prior to completion of construction project. 58. A hydrology and hydraulic study and a master plan of water, sewer and storm drain facilities for the on -site improvements shall be prepared by the applicant and approved by the Public Works Department prior to Final Tract Map recordation. 59. Easements for public emergency and security ingress/egress, weekly refuse service, and public utility purposes on all private streets shall be dedicated to the City. 60. No structures shall be constructed within the limits of any utility easements. 61. All easements shall be recorded as a part of the Final Tract Map. 62. All applicable fees shall be paid prior to the City approval of the Final Tract Map. 63. Construction surety in a form acceptable to the City, guaranteeing the completion of the various required public improvements, shall be submitted to the Public Works Department prior to the City approval of the Final Tract Map. 15-50 64. Street, drainage and utility improvements shall be submitted on City standard improvement plan formats. All plan sheets shall be sealed and signed by the California licensed professionals responsible for the designs shown on the Plans. 65. All improvements shall be designed and constructed in accordance with the current edition of the City Design Criteria, Standard Special Provisions, and Standard Drawings. 66. All storm drains and sanitary sewer mains shall be installed with MacWrap. 67. All runoff discharges shall comply with the City's water quality and on -site non - storm runoff retention requirements. 68. New concrete sidewalks, curbs, gutters, curb disabled access ramps, roadway pavement, traffic detector loops, traffic signal devices, and street trees shall be installed along the development's Coast Highway frontage. 69. Public improvements may be required along the development's Granville Drive frontage upon building permit plan check submittal. 70. All on -site drainage, sanitary sewer, water and electrical systems shall be privately owned, operated, and maintained. The water system shall be owned operate and maintained by the City. 71. All curb return radii shall be 5-feet (5) minimum. 72. Each detached residential dwelling unit or bungalow building shall be served with an individual water service and sewer lateral connection. 73. All overhead utilities serving the entire proposed development shall be made underground. 74. ADA compliant curb ramps shall be installed within the interior parking area. 75. The intersection of the public streets, internal roadways, and drive aisle shall be designed to provide adequate sight distance per City of Newport Beach Standard Drawing Standard105. Slopes, landscaping, walls, signs, and other obstructions shall be considered in the sight distance requirements. Landscaping within the sight lines (sight cone) shall not exceed 24-inches in height and the monument identification sign must be located outside the line of sight cone. The sight distance may be modified at non -critical locations, subject to approval by the Traffic Engineer. 15-51 76. Any damage to public improvements within the public right-of-way attributable to on- site development may require additional reconstruction within the public right- of-way at the discretion of the Public Works Inspector. 77. The parking lot and vehicular circulation system shall be subject to further review and approval by the City Traffic Engineer. Parking layout shall be per City Standard 805. Parking layout shall be full dimensioned. On -street parking spaces shall be 8 feet wide by 22 feet long. Drive aisles to parking areas shall be 26 feet wide minimum. The one-way drive aisle adjacent to the hotel's concierge office and guest meeting building shall be 14 feet wide minimum with no parking, otherwise the drive aisle shall be widened to accommodate parking. 78. Cul-de-sacs shall comply with City Standards 102 and 103 and shall have a minimum diameter of 80 feet curb to curb. 79. County Sanitation District fees shall be paid prior to the issuance of any building permits. 80. Prior to the issuance of a building permit, a sewer and water demand study shall be submitted for review by the Public Works and Utilities Department. 81. Prior to the commencement of demolition and grading of the project, the applicant shall submit a construction management plan (CMP) to be reviewed and approved by the Community Development Director, City Fire Marshal, and City Traffic Engineer. The plan shall include discussion of project phasing, parking arrangements during construction, anticipated haul routes and construction mitigation. Upon approval of the CMP, the applicant shall be responsible for implementing and complying with the stipulations set forth in the approved CMP. 82. Prior to the issuance of a building permit, a sewer system management plan shall be submitted for review and approval by the Public Works and Utilities Department. 83. Prior to the issuance of a building permit, various water and sewer easement for City mains located on the adjacent properties shall be obtained and conveyed to the City. 84. A storm drain easement on behalf of the project shall be obtained from the adjacent property owner prior to issuance of a building permit. Provide documentation of said easement. 85. The City sewer manhole located within 1600 East Coast Highway shall be relocated to an area outside of the landscape and parking stalls. The manhole location shall be accessible at all time. A new sewer easement shall be provided for the sewer manhole and sewer main within the 1600 East Coast Highway property. 15-52 86. The public sewer connection to the OCSD main shall utilize the existing OCSD manhole located within East Coast Highway unless otherwise approved by OCSD and the City. Final design shall be approved by OCSD and the City. 87. The existing private sewer main from the proposed point of connection to the City's manhole located near East Coast Highway shall be video inspected and any damage repaired prior. 88. Utility easements shall be provided for all City water meters, fire hydrants, valves and back flow devices. 15-53 Attachment C Resolution No. 2022-67 15-54 RESOLUTION NO. 2022-67 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING SUBMITTAL OF A LOCAL COASTAL PROGRAM AMENDMENT TO THE CALIFORNIA COASTAL COMMISSION TO AMEND THE NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY DEVELOPMENT PLAN (PC-47) FOR THE TENNIS CLUB LOCATED AT 1602 EAST COAST HIGHWAY (PA2021- 260) WHEREAS, as set forth in Section 30500 of the California Public Resources Code, the California Coastal Act requires each county and city to prepare a local coastal program ("LCP") for that portion of the coastal zone within its jurisdiction; WHEREAS, the California Coastal Commission effectively certified the City's Local Coastal Program Implementation Plan on January 13, 2017, and the City of Newport Beach ("City") added Title 21 (Local Coastal Program Implementation Plan) ("Title 21 ") to the Newport Beach Municipal Code ("NBMC") whereby the City assumed coastal development permit -issuing authority as of January 30, 2017; WHEREAS, in 2012, the City Council approved an application by Golf Realty Fund, Managing Owner ("Applicant") for the reconstruction of the 3,725-square-foot tennis clubhouse, a reduction of tennis courts from 24 to seven courts, construction of a 27-room boutique hotel with 9,700 square feet of ancillary uses, five single-family residential units, and a development agreement for the property ("2012 Entitlements") located at 1602 East Coast Highway, and legally described as Parcels A, B, C, and D of Parcel Map No. 2016- 151 (commonly referred as the "Tennis Club Site" or "Property"); WHEREAS, on November 20, 2018, the Zoning Administrator approved Coastal Development Permit No. CD2017-039, authorizing the redevelopment of the Property consistent with the 2012 Entitlements (2012 Entitlements and Coastal Development Permit No. CD2017-039 are collectively referred to as the "Approved Project"); 15-55 Resolution No. 2022-67 Page 2 of 5 WHEREAS, the Applicant is requesting an amendment to the Approved Project to allow an increase in the number of future tennis courts from seven to eight, an increase in the number of future hotel rooms from 27 to 41, an increase to the gross floor area of ancillary hotel uses by 4,686 square feet, three attached condominium units and two single- family residences in -lieu of five single-family residences, and an amendment to the 2012 Development Agreement to account for the aforementioned changes to the Project along with extending the term of the 2012 Development Agreement for an additional 10 years ("Project"); WHEREAS, the Property is designated Mixed -Use Horizontal 3/Parks and Recreation (MU-H3/PR) by the City of Newport Beach General Plan and is located within the Newport Beach Country Club Planned Community (PC-47) Zoning District; WHEREAS, the Property is designated Mixed -Use Horizontal/Parks and Recreation (MU-H/PR) by the Coastal Land Use Plan and is located within the Newport Beach Country Club Planned Community (PC-47) Coastal Zone District; WHEREAS, the Project includes an amendment to Title 21 (Local Coastal Program Implementation Plan) ("Title 21 ") related to development standards for the Tennis Club site located within the Newport Beach Country Club Planned Community (PC-47), WHEREAS, Title 21 includes specific development standards for the Approved Project and, as a result, an amendment to Title 21 is necessary to revise the development standards listed in Section 21.26.055(S) which specifically refers to the PC-47 development standards of the "Tennis Club," "The Villas," and "The Bungalows"; WHEREAS, pursuant to Section 13515 of the California Code of Regulations Title 14, Division 5.5, Chapter 8 ("Section 13515"), drafts of Local Coastal Program Amendment No. PA2021-260 were made available and a Notice of Availability was distributed on July 29, 2022, at least six weeks prior to the anticipated final action date; WHEREAS, the Planning Commission held a public hearing on September 8, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California, at which time the Planning Commission considered the Project. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act"), Section 13515, and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; 15-56 Resolution No. 2022-67 Page 3 of 5 WHEREAS, at the hearing, the Planning Commission adopted Resolution No. PC2022-022 by a unanimous vote (5 ayes, 1 absent, 1 recusal) recommending approval of the Project to the City Council; WHEREAS, the City Council held a public hearing on September 27, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, Section 13515, and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; WHEREAS, at the hearing, the City Council remanded the Project to the Planning Commission on a future date by a majority vote (6 ayes, 1 nays); WHEREAS, at the City Council meeting on October 11, 2022, the City Council adopted a motion for reconsideration of the Project by a majority vote (4 ayes, 3 nays); and WHEREAS, the City Council held a public hearing on October 25, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, Section 13515, and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows.. Section 1: The City Council does hereby authorize City staff to submit Local Coastal Program Amendment No. PA2021-260, amending Chapter 21.26.055(S) (Newport Beach Country Club) of Title 21 (Local Coastal Program Implementation Plan) of the NBMC, attached hereto as Exhibit "A," and incorporated herein by reference, to the California Coastal Commission for review and approval. Section 2: Local Coastal Program Amendment No. PA2021-260 shall not become effective until approval by the California Coastal Commission and adoption, including any modifications suggested by the California Coastal Commission, by resolution(s) and/or ordinance(s) of the City Council of the City of Newport Beach. 15-57 Resolution No. 2022-67 Page 4 of 5 Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 4: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 5: An Addendum to Mitigated Negative Declaration No. ND2010-008 (MND) was prepared for the Proposed Project in compliance with the California Environmental Quality Act ("CEQA") set forth in California Public Resources Code Section 2100 et seq.; CEQA's implementing regulations set forth in CCR Title 14, Division 6 Chapter 3 ("CEQA Guidelines") and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act). On the basis of the MND and entire environmental review record, the additional tennis court, hotel rooms, ancillary hotel uses, and conversion of three single-family residences to condominium units will not result in any new significant impacts that were not previously analyzed in the MND. The Addendum confirms and provides substantial evidence that the potential impacts associated with this Project would either be the same or less than those described in the MND, or as mitigated by applicable mitigation measures in the MND. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the MND, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, the City Council adopted Resolution No. 2022- thereby adopting an addendum to the previously adopted MND. Resolution 2022- including all findings contained therein, is hereby incorporated by reference. 15-58 Resolution No. 2022-67 Page 5 of 5 Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 25th day of October, 2022. Kevin Muldoon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron/C. Harp City ttorney Attachment(s): Exhibit A — Local Coastal Program Amendment No. PA2021-260 Related to Standards of the Tennis Club Property located within the Newport Beach Country Club Planned Community (PC-47) 15-59 Exhibit "A" Local Coastal Program Amendment No. PA2021-260 Related to Standards of the Tennis Club Property located within the Newport Beach Country Club Planned Community (PC-47) 15-60 Exhibit "A" Local Coastal Program Amendment No. PA2021-260 Related to Standards of the Tennis Club Property located within the Newport Beach Country Club Planned Community (PC-47) Amend Section 21.26.055.S (Newport Beach Country Club) of Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code to read as follows: S. Newport Beach Country Club (PC-47). 2. Tennis Club. a. Density/intensity limit: seven eight (8) tennis courts; and three thousand seven hundred twenty-five (3,725) square foot clubhouse. b. Height: thirty (30) feet for clubhouse. c. Parking: bNeRty eight 29` spao thirty-two (32) spaces 3. Residential. a. Detached Residential (Villas) L Density/intensity limit: two single-family dwelling units. ii. Development Standards: Villa Designation Villa A (TTM Lot #1) Villa B (TTM Lot #2) Lot Size 5,000 square feet minimum Lot Coverage (Maximum) 70% 65% 39 feet, measured in accordance with the Height and Grade Building Height definition of Section 2.0 General Conditions and Regulations Building Side Yard Setbacks 3 feet minimum Building Front and Rear Yard 5 feet minimum Setbacks Enclosed Parking Space for 2 2 Each Unit Open Guest Parking Space One space - could be located on the private driveway — No for Each Unit overhang to the private street/cul-de-sac is allowed 15-61 b. Attached Residential (Condominiums) i. Density/intensity limit: three (3) attached residential units. ii. Setbacks: five (5) feet from any property line. iii. Height: forty-six (46) feet (to be located atop of the 2-story hotel buildings). iv. Parking: three (3) enclosed spaces and one guest space per dwelling unit. a. Density/Intensity Limit: forty-one (41) short-term guest rental Ufl#6 rooms. The maximum total allowable gross floor area for the hotel rooms shall be twenty - eight thousand three hundFed(28 300) forty-seven thousand four hundred eighty-four (47,484) square feet with a two thousand two hundred (2,200) square - foot concierge a+;d guest center, four thousand six hundred eighty-six (4,686) square feet of ancillary hotel uses, and a seven thousand five hundred (7,500) square -foot spa facility. b. Setbacks: five feet from any property line. c. Height: thirty-one (31) feet. d. Parking: . forty-one (41) parking spaces. 15-62 Attachment D Ordinance No. 2022-19 15-63 ORDINANCE NO. 2022-19 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING AN AMENDMENT TO THE NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY DEVELOPMENT PLAN (PC-47) FOR THE TENNIS CLUB AT NEWPORT BEACH LOCATED AT 1602 EAST COAST HIGHWAY (PA2021- 260) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, in 2012, the City Council approved an application by Golf Realty Fund, Managing Owner ("Applicant") for the reconstruction of the 3,725-square-foot tennis clubhouse, reduction of tennis courts from 24 to seven courts, construction of a 27-room boutique hotel with 9,700 square feet of ancillary uses, five single-family residential units, and a development agreement for the property ("2012 Entitlements") located at 1602 East Coast Highway, and legally described as Parcels A, B, C, and D of Parcel Map No. 2016- 151 (commonly referred as the "Tennis Club Site" or "Property"); WHEREAS, on November 20, 2018, the Zoning Administrator approved Coastal Development Permit No. CD2017-039, authorizing the redevelopment of the Property consistent with the 2012 Entitlements (2012 Entitlements and Coastal Development Permit No. CD2017-039 are collectively referred to as the "Approved Project"); WHEREAS, the Applicant is requesting an amendment to the Approved Project to allow an increase in the number of future tennis courts from seven to eight, an increase in the number of future hotel rooms from 27 to 41, an increase to the gross floor area of ancillary hotel uses by 4,686 square feet, three attached condominium units and two single family residences in -lieu of five single-family residences, and an amendment to the 2012 Development Agreement to account for the aforementioned changes to the Approved Project along with extending the term for an additional 10 years ("Project'); 15-64 Ordinance No. 2022- Page 2 of 7 WHEREAS, the following approvals are requested or required in order to implement the Project: • General Plan Amendment ("GPA") — An amendment to Anomaly No. 46 of Table LU2 of the 2006 Newport Beach General Plan Land Use Element to document the conversion of 17 tennis courts to 27 hotel rooms authorized by City Council Resolution No. 2012-10, and the addition of 14 hotel rooms for a total of 41 rooms and one tennis courts for a total of eight tennis courts, • Local Coastal Program Implementation Plan Amendment ("LCPA") — An amendment to Section 21.26.055(S)(2) (Planned Community Coastal Zoning District Development Standards, Newport Beach Country Club (PC-47, Tennis Club) of the Newport Beach Municipal Code ("NBMC") to modify the permitted uses and development standards allowed on the Property; • Planned Community Development Plan Amendment ("PCDP Amendment") — An amendment to Planned Community Development Plan No. 47 (Newport Beach Country Club Planned Community) to amend land use regulations and development standards on the Property; • Major Site Development Permit Amendment ("SDA") — An amendment to the existing site development review in accordance with PC-47 and Section 20.52.080 (Permit Review Procedures, Site Development Reviews) of the NBMC for the construction of the Project; • Coastal Development Permit Amendment ("CDPA") — A coastal development permit for the demolition of existing structures, further subdivision on the Property, and implementation of the Project; • Vesting Tentative Tract Map Amendment ("VTMA") — An amendment to Vesting Tentative Tract Map No. 15347 pursuant to Title 19 (Subdivisions) of the NBMC for a lot reduction created for the Approved Project and inclusion of the condominium ownership; • Limited Term Permit Amendment ("XP") — A limited term permit to allow temporary use of structures during construction on the Property, pursuant to Section 20.52.040 of the NBMC; 15-65 Ordinance No. 2022- Page 3 of 7 • Development Agreement Amendment ("DA") — A second amendment to the Development Agreement (DA2008-001), between the Applicant and the City, pursuant to Sections 15.45.020(A)(2)(c) (Buildings and Construction, Development Agreements Required, Development Agreement Required) and 15.45.070 (Buildings and Constructions, Development Agreements, Amendment/Cancellation) of the NBMC, which would provide vested rights to develop the Project for an additional 10 years and provide negotiated public benefits to the City; and • Addendum to previously adopted Mitigated Negative Declaration No. ND2010- 008 (SCH2010091052) ("Addendum") — Pursuant to the California Environmental Quality Act ("CEQA"), the Addendum addresses reasonably foreseeable environmental impacts resulting from the Project; WHEREAS, the Property is designated Mixed -Use Horizontal 3/Parks and Recreation (MU-H3/PR) by the City of Newport Beach General Plan and is located within the Newport Beach Country Club Planned Community (PC-47) Zoning District; WHEREAS, the Property is designated Mixed -Use Horizontal/Parks and Recreation (MU-H/PR) by the Coastal Land Use Plan and is located within the Newport Beach Country Club Planned Community (PC-47) Coastal Zone District; WHEREAS, the Planning Commission held a public hearing on September 8, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California, at which time the Planning Commission considered the Project. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; WHEREAS, at the hearing, the Planning Commission adopted Resolution No. PC2022-022 (5 ayes, 1 absent, 1 recusal) recommending approval of the Project to the City Council; 15-66 Ordinance No. 2022- Page 4 of 7 WHEREAS, the City Council held a public hearing on September 27, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; WHEREAS, at the hearing, the City Council remanded the Project to the Planning Commission on a future date by a majority vote (6 ayes, 1 nays); WHEREAS, at the City Council meeting on October 11, 2022, the City Council adopted a motion for reconsideration of the Project by a majority vote (4 ayes, 3 nays); and WHEREAS, the City Council held a public hearing on October 25, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council has considered the recommendation of the Planning Commission and determined that modifications to the Project made by the City Council, if any, are not major changes that require referral back to commission for consideration and recommendation. 15-67 Ordinance No. 2022- Page 5 of 7 Section 2: An amendment to PC-47, which is the zoning document for the Property, is a legislative act. Neither PC-47, Chapter 20.66 (Planning and Zoning, Amendments) and Chapter 20.56 (Planning and Zoning, Planned Community District Procedures) of Title 20 (Planning and Zoning) of NBMC, or Article 2 (Adoption of Regulations) of Chapter 4 (Zoning Regulations) of Division 1 (Planning and Zoning) of Title 7 (Planning and Land Use) of the California Government Code set forth any required findings for either approval or denial of such amendments. Nevertheless, amending PC-47 to change the development standards as it relates to the Tennis Club is consistent with the purpose of the Planned Community Districts as specified in Section 20.56.010 (Planned Community District Procedures — Purpose) of the NBMC for the reasons set forth below: 1. The Project is consistent with the intent and purpose of PC-47 in that the tennis club, hotel, and residential uses and their development standards have already been allowed and in place on the Property. The proposed changes to the building height, setbacks, and parking standards in order to accommodate the Project are within the development standards in place for the Approved Project. 2. PC-47 provides guidelines for architectural design to include coordinated and cohesive architecture which exhibits quality that is keeping with the surrounding area in Newport Center. The Project includes additional hotel rooms and two attached residential condominium loft buildings. The proposed additions have consistent architecture with the Approved Project, which has cohesive architectural features that include smooth plaster exterior siding, clay -tile roofs, and stone veneer exterior accent finishes. 3. PC-47 permits structures to be a maximum of 50 feet in height. The Project includes two attached residential condominium loft buildings which features condominiums on the third level atop of a two -level hotel building. The loft buildings are proposed at a maximum of 46 feet high and comply with the height limit. All other structures are consistent with the maximum heights prescribed in PC-47. Section 3: The City Council hereby approves the Newport Beach Country Club Planned Community Development Plan Amendment, as set forth in Exhibit I," which is attached hereto and incorporated herein by reference and finds that the amendment to PC-47 complies with the purpose set forth in Section 20.56.010 (Purpose) of the NBMC, with all other provisions of the existing Planned Community District Regulations and exhibits remaining unchanged and in full force and effect. 15-68 Ordinance No. 2022- Page 6 of 7 Section 4: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 5: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 6: An Addendum to Mitigated Negative Declaration No. ND2010-008 (MND) was prepared for the Proposed Project in compliance with the California Environmental Quality Act ("CEQA") set forth in California Public Resources Code Section 2100 et seq.; CEQA's implementing regulations set forth in CCR Title 14, Division 6 Chapter 3 ("CEQA Guidelines") and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act) to ensure that the Proposed Project will not result in new or increased environmental impacts. On the basis of the MND and entire environmental review record, the additional tennis court, hotel rooms, ancillary hotel uses, and conversion of 3 single-family residences to condominium units will not result in any new significant impacts that were not previously analyzed in the MND. The Addendum confirms and provides substantial evidence that the potential impacts associated with this Project would either be the same or less than those described in the MND, or as mitigated by applicable mitigation measures in the MND. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the MND, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, the City Council adopted Resolution No. 2022- , thereby adopting an addendum to the previously adopted MND. Resolution 2022- , including all findings contained therein, is hereby incorporated by reference. Section 7: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the NBMC or other planned community shall remain unchanged and shall be in full force and effect. 15-69 Ordinance No. 2022- Page 7 of 7 Section 8: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 25th day of October, 2022, and adopted on the 15th day of November, 2022, by the following vote, to -wit - AYES: 1►My,01 ABSENT: KEVIN MULDOON, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE AAROt4/C. HARP, C(IfY ATTORNEY Attachment(s): Exhibit 1 - Newport Beach Country Club Planned Community Development Plan Amendment 15-70 Exhibit 1 Newport Beach Country Club Planned Community Development Plan Adoption: March 27, 2012, Ordinance No. 2012-2 Amendment: October 11, 2022, Ordinance No._ 15-71 TABLE OF CONTENTS 1.0 Introduction and Purpose................................................................................ 4 2.0 General Conditions and Regulations............................................................... 5 3.0 Land Use and Development Regulations........................................................ 10 3.1 Golf Club.............................................................................................. 10 A. Golf Course..................................................................................... 10 B. Golf Clubhouse and Ancillary Uses ................................................. 10 1. Building Area............................................................................. 10 2. Building Height.......................................................................... 10 3. Permitted Ancillary Uses............................................................ 10 4. Parking...................................................................................... 11 5. Fencing...................................................................................... 11 3.2 Tennis Club.......................................................................................... 11 A. Tennis Courts.................................................................................. 11 1. Number of Courts...................................................................... 11 B. Tennis Clubhouse and Ancillary Uses ............................................. 12 1. Building Area............................................................................. 12 2. Building Height.......................................................................... 12 3. Permitted Ancillary Uses............................................................ 12 4. Parking...................................................................................... 12 3.3 The Venus Residential ......................................................................... 12 1. NumbeF Gf Detached Residential .................................... 13 2. Develepment StandaFds. Attached Residential ........................ 14 3.4 The Bwngalew6 Hotel........................................................................... 14 1. Number of ks Rooms............................................................ 14 2. Permitted Ancillary Uses............................................................ 14 3. Building Area............................................................................. 15 4. Building Height.......................................................................... 15 5. Building Setbacks...................................................................... 15 6. Parking...................................................................................... 15 3.5 Signs.................................................................................................... 15 A. Sign Allowance............................................................................... 15 B. Sign Standards............................................................................... 16 4.0 Site Development Review............................................................................... 17 4.1 Purpose................................................................................................ 17 4.2 Application............................................................................................ 17 4.3 Findings................................................................................................ 17 4.4 Contents............................................................................................... 18 4.5 Public Hearing - Required Notice........................................................ 18 4.6 Expiration and Revocation Site Plan Review Approvals ....................... 19 2 15-72 4.7 Fees..................................................................................................... 19 4.8 Minor Changes by the Community Development Director .................... 19 LIST OF EXHIBITS Exhibit Name Exhibit Number VicinityAerial Map................................................................................................ A Conceptual Master Site Plan................................................................................ B LIST OF TABLES Table Name Page The Villas Development Standards...................................................................... 13 3 15-73 1.0 INTRODUCTION AND PURPOSE The Newport Beach Country Club Planned Community District (the PCD) is composed of the Golf Club, Tennis Club, Bungalows and Villas facilities, totaling approximately 4-33 140 acres. The PCD has been developed in accordance with the Newport Beach General Plan and is consistent with the Local Coastal Land Use Plan. The purpose of this PCD is to provide for the classification and development of coordinated, cohesive, comprehensive planning project with limited mixed uses, including the private Qgolf Gclub, Ttennis Gclub, 2-7 shot to pm rental units 41-rooms boutique hotel Galled the Bungalows with a spa/fitness area center and ancillary uses, and 5 semi StOM oiRgle-, Rit residential dwellings units galled the Villas Whenever the regulations contained in the PCD Regulations conflict with the regulations of the Newport Beach Municipal Code, the regulations contained in the PCD Regulations shall take precedence. The Newport Beach Municipal Code shall regulate all development within the PCD when such regulations are not provided within the PCD Regulations. 2 15-74 2.0 GENERAL CONDITIONS AND REGULATIONS 1. Alcoholic Beverage Consumption The consumption of alcoholic beverages within the PCD shall be in compliance with the State of California Department of Alcoholic Beverage Control and the Newport Beach Municipal Code. A use permit shall be required if the establishment operates past 11:00 p.m. any day of the week and a minor use permit shall be required if the establishment operates until 11:00 p.m. any day of the week. 2. Amplified Music All amplified music played after 10:00 p.m. within the PCD shall be confined within the interior of a building unless a Special Events Permit is obtained. 3. Archaeological/Paleontological Resources Development of the site is subject to the provisions of City Council Policies K-5 and K-6 regarding archaeological and paleontological resources. 4. Architectural Design All development shall be designed with high quality architectural standards and shall be compatible with the surrounding uses. The development should be well -designed with coordinated, cohesive architecture and exhibiting the highest level of architectural and landscape quality in keeping with the PCD's prominent location in the Newport Center Planning Area. Massing offsets, variation of roof lines, varied textures, openings, recesses, and design accents on all building elevations shall be provided to enhance the architectural style. Architectural treatments for all ancillary facilities (i.e. storage, truck loading and unloading, and trash enclosures) shall be provided. 5. Building Codes Construction shall comply with applicable provisions of the California Building Code and the various other mechanical, electrical and plumbing codes related thereto as adopted by the Newport Beach Municipal Code. 6. Exterior Storage Areas There shall be no exterior storage areas permitted with the exception of the greenskeeper/maintenance area which shall be enclosed by a minimum six-foot plastered block wall. 5 15-75 7. Flood Protection Development of the subject property will be undertaken in accordance with the flood protection policies of the City. 8. Grading and Erosion Control Grading and erosion control measures shall be carried out in accordance with the provisions of the Newport Beach Excavation and Grading Code and shall be subject to permits issued by the Community Development Department. 9. Gross Floor Area Gross floor area shall be defined as the total area of a building including the surrounding exterior walls. 10. Height and Grade The height of any structure within the PCD shall not exceed fifty (50) feet, unless otherwise specified. The height of a structure shall be the vertical distance between the highest point of the structure and the grade directly below. In determining the height of a sloped roof, the measurement shall be the vertical distance between the grade and the midpoint of the roof plane, provided that no part of the roof shall be extend more than five (5) feet above the permitted height in the height limitation zone, and any amendments shall be subject to the review and approval of the Community Development Director 11. Landscaping/Irrigation Landscaping and irrigation shall be provided in all areas not devoted to structures, parking lots, driveways, walkways, and tennis courts to enhance the appearance of the development, reduce heat and glare, control soil erosion, conserve water, screen adjacent land uses, and preserve the integrity of PCD. Landscaping and irrigation shall consist of a combination of trees, shrubs, groundcover and hardscape improvements. Landscaping shall be prepared in accordance with the Landscaping Standards and Water -Efficient Landscaping Sections of the Newport Beach Municipal Code and installed in accordance with the approved landscape plans prepared by a licensed landscape architect. 12. Lighting —Outdoor All new outdoor lighting shall be designed, shielded, aimed, located and maintained to shield adjacent uses/properties and to not produce glare onto adjacent uses/properties. Lighting plans shall be prepared in compliance with the Outdoor Lighting Section of the C 15-76 Newport Beach Municipal Code and shall be prepared by a licensed electrical engineer. All lighting and lighting fixtures that are provided shall be maintained in accordance with the approved lighting plans. 13. Lighting — Parking & Walkways All lighting and lighting fixtures that are provided shall be maintained in accordance with the approved lighting plans. Light standards within parking lots shall be the minimum height required to effectively illuminate the parking area and eliminate spillover of light and glare onto adjoining uses/properties and roadways. Parking lots and walkways accessing buildings shall be illuminated with a minimum of 0.5 foot-candle average on the driving or walking surface during the hours of operation and one hour thereafter. Lighting plans shall be prepared in compliance with the Outdoor Lighting Section of the Newport Beach Municipal Code and shall be prepared by a licensed electrical engineer. If the applicant wishes to deviate from this lighting standard, a lighting plan may be prepared by the applicant and submitted to the Community Development Director for review and approval. 14. Loading Areas for Non -Residential Uses All loading and unloading of goods delivery shall be performed onsite. Loading platforms and areas shall be screened from public view. 15. Parking Areas Parking spaces, driveways, maneuvering aisles, turnaround areas, and landscaping areas of the parking lots shall be kept free of dust, graffiti, and litter. All components of the parking areas including striping, paving, wheel stops, walls, and light standards of the parking lots shall be permanently maintained in good working condition. Access, location, parking space and lot dimensions, and parking lot improvements shall be in compliance with the Development Standards for Parking Areas Section of the Newport Beach Municipal Code. 16. Property Owner Approval Written property owner approval shall be required for the submittal of any site development review application and/or prior to grading and/or building permit issuance. 17. Outdoor Paging Outdoor paging shall be permitted at the Ggolf Sclub to call individuals to the tees and at the Ttennis Sclub to call points during tennis tournaments. 7 15-77 18. Sewage Disposal Sewage disposal service facilities for the PCD will be provided by Orange County Sanitation District No. 5 and shall be subject to applicable regulations, permits and fees as prescribed by the Sanitation District. 19. Screening of Mechanical Equipments All new mechanical appurtenances (e.g., air conditioning, heating, ventilation ducts and exhaust vents, swimming pool and spa pumps and filters, transformers, utility vaults and emergency power generators) shall be screened from public view and adjacent land uses. The enclosure design shall be approved by the Community Development Department. All rooftop equipment (other than vents, wind turbines, etc.) shall be architecturally treated or screened from off -site views in a manner compatible with the building materials prior to final building permit clearance for each new or remodeled building. The mechanical appurtenances shall be subject to sound rating in accordance with the Exterior Noise Standards Section of the Newport Beach Municipal Code. Rooftop screening and enclosures shall be subject to the applicable height limit. 20. Screening of the Villas residential units from tennis courts Adequate buffering between the Villas residential units and tennis courts shall be provided and subject to the Site Development Review process. The exterior perimeter of the tennis courts facing Granville Condominiums, Granville Drive, and the Ttennis Gelubhouse parking lot shall be screened by a minimum ten -foot -high chain link fence covered by a wind screen. Wind screen shall be maintained in good condition at all time. 21. Screening of the Villas' Pool/Spa Equipment All pool and/or spa equipment shall be enclosed by a minimum five-foot high block wall plastered or otherwise textured to match the building. 22. Special Events Temporary special community events, such as such as PGA Senior Classic golf tournaments, Team Tennis, Davis Cup Matches, and other similar events, are permitted in the PCD, and are subject to the Special Events Chapter of the Newport Beach Municipal Code. Temporary exterior storage associated with approved special events may be permitted provided it is appropriately screened and regulated with an approved Special Event Permit. 15-78 23. Temporary Structures and Uses Temporary structures and uses, including modular buildings for construction -related activities are permitted. 24. Trash Container Storage for Residential Dwellings Trash container storage shall be out of view from public places, and may not be located in the required parking areas. If trash container storage areas cannot be located out of public view, they shall be screened from public view. Screening shall consist of fences, walls, and landscaping to a height at least 6 inches above the tops of the containers. 25. Trash Enclosures for Non -Residential Uses All trash enclosures for non-residential uses shall be provided and in accordance with the Solid Waste and Recyclable Materials Storage of the Newport Beach Municipal Code. 26. Tennis Club Site Phasing Plan - The phasing plan for the tennis club site which consists of the tennis club, vi4as. residential units and clews hotel rooms shall be subject to a site development review process. 27. Water Service Water service to the PCD will be provided by the City of Newport Beach and will be subject to applicable regulations, permits and fees as prescribed by the City. 0 15-79 3.0 LAND USE AND DEVELOPMENT REGULATIONS 3.1 Golf Club Refer to Exhibit B - Conceptual Master Site Plan for the general location and placement of the golf course and clubhouse. A. Golf Course An 18-hole championship golf course and related facilities (i.e. putting green, driving range, snack bar, starter shack, restroom facilities, etc.). B. Golf Clubhouse and Ancillary Uses 1. Building Area The maximum allowable gross floor area for a golf clubhouse building shall be 56,000 square feet, exclusive of any enclosed golf cart storage areas ramp and washing area. The greens keeper/maintenance buildings, snack bar, separate golf course restroom facilities, starter shack, and similar ancillary buildings are exempt from this development limit. 2. Building Height The maximum allowable building height for the Golf Clubhouse shall be 50 feet and shall be measured in accordance with the Height and Grade definition of Section 2.0 General Conditions and Regulation of the PCD. 3. Permitted Ancillary Use The following ancillary uses are allowed: • Golf shop • Administrative Offices • Dining, and event areas • Kitchen & Bar areas • Banquet Rooms • Men and Women's Card Rooms • Health and fitness facility • Restroom and Locker facilities • Golf Club storage areas • Employee lounge/lunch areas • Meeting rooms • Golf Cart Parking Storage and Washing Area 15-80 • Separate Snack Bar • Separate Starter Shack • Separate Golf Course Restrooms • Hand Carwash Area • Greenskeeper Maintenance Facility • Temporary Construction Facilities • Guard House • Others (subject to an approval of the Community Development Director) 4. Parking Parking for the Golf Course and Golf Clubhouse shall be in accordance with following parking ratios (source: from Table 2 of the Circulation and Parking Evaluation by Kimley-Horn and Associates, Inc., September 2009 for Newport Beach Country Club — Clubhouse Improvement Project): Golf Course: 8 spaces per hole Golf Clubhouse: Dining, assembly & meeting rooms: 1 per 3 seats or 1 per 35 square feet Administrative Office: 4 per 1,000 square feet Pro Shop: 4 per 1,000 square feet Maintenance Facility: 2 per 1,000 square feet Health and Fitness Facility: 4 per 1,000 square feet The design of the parking lot and orientation of vehicular aisles and parking spaces shall be subject to the review and approval of the City Traffic Engineer and Community Development Director. 5. Fencing Golf Course perimeter fencing shall be wrought -iron with a maximum permitted height of six (6) feet. 3.2 Tennis Club Refer to Exhibit B - Conceptual Master Site Plan for the general location and placement of the tennis courts and clubhouse. A. The Tennis Courts 1. Number of courts 11 15-81 The maximum allowable tennis courts shall be seven eight lighted tennis courts (a+x seven lighted championship courts and one lighted stadium - center court). B. Tennis Clubhouse and Ancillary Uses 1. Building Area The maximum allowable gross floor area for the Tennis Clubhouse shall be 3,725 square feet. 2. Building Height The maximum allowable building height for the Tennis Clubhouse shall be 30 feet and shall be measured in accordance with the Height and Grade definition of Section 2.0 General Conditions and Regulations of the PCD. 3. Permitted Ancillary Uses The following ancillary uses are allowed: • Tennis Shop • Administrative Offices • Concessions • Restroom and Locker facilities • Storage areas • Spectator seating • Others (subject to an approval of the Community Development Director) 4. Parking Parking for the Tennis Clubhouse and Courts shall be a minimum of 2-9 32 parking spaces. 3.3. Ths Residential Refer to Exhibit B - Conceptual Master Site Plan for the general location and placement of the vitas units. 12 15-82 A. Detached Residential (The Villas) 1. Number of Units The maximum allowable number of single-family residential units shall be five-(55) two (2). 2. Development Standards The following development standards shall apply to the Villas: The Villas Development Standards Table Villa Villa A Villa B Designation TTM Lot #1 TTM Lot #2 Lot Size 5,000 square feet minimum Lot Coverage 70% 65% (Maximum) 39 feet, measured in accordance with the Building Height Height and Grade definition of Section 2.0 General Conditions and Regulations Building Side Yard Setbacks 3 feet minimum Building Front and Rear Yard 5 feet minimum Setbacks Enclosed Parking Space for Each 2 2 Unit Open Guest One space - could be located on the Parking Space for private driveway — No overhang to the Each Unit private street/cul-de-sac is allowed 13 15-83 B. Attached Residential 1. Number of Units The maximum allowable number of attached residential units shall be three (3). 2. Building Setbacks The building setback shall be a minimum of five (5) feet from any property line. 3. Building Height The maximum allowable building height for attached residential units to be located atop of the 2-story hotel buildings shall be 46 feet, measured in accordance with the Height and Grade definition of Section 2.0 General Conditions and Regulations. 4. Parking Parking for the attached residential units shall be a minimum of 3 enclosed parking spaces and one guest parking space per unit. 3.4. The Bunqalews Hotel Refer to Exhibit B - Conceptual Master Site Plan for the general location and placement of the bungalows, concierge and guest center, and spa facility. 1. Number of Units Rooms The maximum allowable number of the Bungalows rooms shall be 27- 41, to be built in a clustered setting of single and two-story buildings. 2. Permitted Ancillary Uses The following ancillary uses are allowed: • Administrative Offices • Concierge office and guest meeting facility • Performance Therapy Center • Spa and Fitness Center • Swimming pool and Jacuzzi rrarving Winhc sHaGks and light breakfast and I, ,nGh itomc vv. ... .� ... n.v, v..an v,w u, ,u light v,�..w"u...a and ,u, wrr--rc�r�-r.� 14 15-84 • Yoga Pavilion 3. Building Area The maximum allowable gross floor area for the b6ngalows hotel rooms shall be 28,300 47,484 square feet with a 2,200 square foot concierge & guest center, 4,686 square feet of ancillary hotel uses, and a 7,500 square -foot spa facility. 4. Building Height The maximum allowable building height for the bungalows hotel rooms shall be 31 feet, measured in accordance with the Height and Grade definition of Section 2.0 General Conditions and Regulations of the PCD. 5. Building Setbacks The building setback requiFerneRt shall be a minimum of 5 feet from any property line. 6. Parking Parking for the bURgalews hotel rooms shall be a minimum of 34 41 parking spaces located in proximity to the use. 3.5 Signs A. Sign Allowance 1. One (1) single or double-faced, ground -mounted entrance identification sign shall be allowed at Newport Beach Tennis Club's main entrance (Country Club Drive and Irvine Terrace). Total maximum signage area shall not exceed seventy-five (75) square feet and shall not exceed five (5) feet in height. 2. One (1) single or double-faced, ground -mounted entrance identification sign shall be allowed at or near the vicinity of the Newport Beach Country Club's secondary entrance (Granville). Total maximum signage area shall not exceed seventy-five (75) square feet and shall not exceed five (5) feet in height. 3. Building identification signs shall be allowed; one for each street frontage. If freestanding, this sign type shall not exceed a maximum height of five (5) feet in height. The maximum signage area shall not exceed seventy (70) square feet. 4. Vehicular and pedestrian directional signs shall be allowed. This sign type may occur as a single -faced or double-faced sign. The 15 15-85 sign shall be sized to allow for proper readability given the number of lines of copy, speed of traffic, setback off the road and viewing distance. This sign type shall not exceed a maximum of six (6) feet in height. 5. One (1) single or double faced, ground -mounted identification sign shall be allowed at the entrance road to the Bungalows. Total maximum signage area shall not exceed seventy-five (75) square feet and shall not exceed five (5) feet in height and fifteen (15) feet in length. B. Sign Standards The design and materials of all permanent signs in the Newport Beach Country Club Planned Community District shall be in accordance with Sign Section 3.5, unless otherwise approved by the Community Development Director. 2. All permanent signs shall be subject to a sign permit issued by the Community Development Department. 3. All signs shall be subject to the review of the City Traffic Engineer to ensure adequate sight distance in accordance with the provisions of the Newport Beach Municipal Code. 4. Sign illumination is permitted for all sign types. No sign shall be constructed or installed to rotate, gyrate, blink or move, or create the illusion of motion, in any fashion. 5. All permanent signs together with the entirety of their supports, braces, guys, anchors, attachments and d6cor shall be properly maintained, legible, functional and safe with regards to appearance, structural integrity and electrical service. 6. Temporary signs that are visible from any public right-of-way shall be allowed up to a maximum of sixty (60) days and subject to a temporary sign permit issued by the Community Development Department. 7. If the applicant wishes to deviate from the sign standards identified herein, a comprehensive sign program may be prepared or a modification permit application may be submitted for review and consideration by the Zoning Administrator in accordance with the applicable provisions of the Newport Beach Municipal Code. 16 15-86 4.0 SITE DEVELOPMENT REVIEW 4.1 Purpose The purpose of the Site Development Review process is to ensure new development proposals within the Newport Beach Country Club Planned Community Development are consistent with the goals and policies of the General Plan, provisions of this Planned Community Development Plan, the Development Agreement and the findings set forth below in sub -section 4.3. 4.2 Application An approval of Site Development Review application by the Planning Commission shall be required for the construction of any new structure prior to the issuance of a grading or building permit or issuance of an approval in concept for Coastal Commission. Signs, tenant improvements to any existing buildings, kiosks, and temporary structures are exempt from the site development review process and subject to the applicable City's permits. The decision of Planning Commission is the final, unless appealed in accordance with the Newport Beach Municipal Code. 4.3. Findings In addition to the general purposes set forth in sub -section 4.1 and in order to carry out the purposes of this chapter as established by said section, the Site Development Review procedures established by this Section shall be applied according to and in compliance with the following findings: The development shall be in compliance with all other provisions of the Planned Community District Plan; 2. The development shall be compatible with the character of the neighboring uses and surrounding sites and shall not be detrimental to the orderly and harmonious development of the surroundings and of the City; 3. The development shall be sited and designed to maximize the aesthetic quality of the project as viewed from surrounding roadways and properties, with special consideration given to the mass and bulk of buildings and the streetscape on Coast Highway, and 17 15-87 4. Site plan and layout of buildings, parking areas, pedestrian and vehicular access ways, landscaping and other site features shall give proper consideration to functional aspects of site development. 4.4. Contents The Site Development Review application shall include all of the information and materials specified by the Community Development Director and any additional information review by the Planning Commission in order to conduct a thorough review of the project in question. The following plans/exhibits may include, but not limited to the following: An aerial map showing the subject property, adjacent properties and identifying their uses. 2. Comprehensive elevations and floor plans for new structures with coordinated and complimentary architecture, design, materials and colors. 3. A parking and circulation plan showing golf cart and pedestrian paths in addition to streets and fire lanes. 4. A comprehensive, cohesive and coordinated preliminary landscape plan. 5. A comprehensive, cohesive and coordinated lighting plan showing type, location and color of all exterior lighting fixtures. 6. Comprehensive text and graphics describing the design philosophy for the architecture, landscape architecture, material and textures, color palette, lighting, and signage. 7. Text describing drainage and water quality mitigation measures. B. A statement that the proposed new structure is consistent with the goals, policies, and actions of the General Plan and Planned Community Development Plan. 4.5 Public Hearing —Required Notice A public hearing shall be held on all site development review applications. Notice of such hearing shall be mailed not less than ten (10) days before the hearing date, postage prepaid, using addresses from the last equalized assessment roll or, alternatively, from such other records as contain more recent addresses, to owners of property within a radius of three hundred (300) feet of the exterior boundaries of the subject property. It shall be the responsibility of the applicant to obtain and provide to the City the names and addresses of owners as required by this Section. In addition to the mailed notice, such hearing shall be posted in IiB 15-88 not less than two (2) conspicuous places on or close to the property at least ten (10) days prior to the hearing. 4.6 Expiration and Revocation Site Development Review Approvals 1. Expiration. Any site development review approved in accordance with the terms of this planned community development plan shall expire within twenty-four (24) months from the effective date of final approval as specified in the Time Limits and Extensions Section of the Newport Beach Municipal Code, unless at the time of approval the Planning Commission has specified a different period of time or an extension is otherwise granted. 2. Violation of Terms. Any site development review approved in accordance with the terms of this planned community development plan may be revoked if any of the conditions or terms of such site development review are violated or if any law or ordinance is violated in connection therewith. 3. Public Hearing. The Planning Commission shall hold a public hearing on any proposed revocation after giving written notice to the permittee at least ten (10) days prior to the hearing, and shall submit its recommendations to the City Council. The City Council shall act thereon within sixty (60) days after receipt of the recommendation of the Planning Commission. 4.7. Fees The applicant shall pay a fee as established by Resolution of the Newport Beach City Council to the City with each application for Site Development Review under this planned community development plan. 4.8 Minor Changes by the Director The following minor changes to an approved site plan may be approved by the Director in compliance with Section 20.54.070 (Changes to an approved project) of the Newport Beach Municipal Code: a) Minor relocation of any proposed structure. b) Reduction in the square footage of any structure and a commensurate reduction in required parking, if applicable. c) Reconfiguration of the golf clubhouse parking lot, including drive aisles and/or parking spaces, subject to review and approval of the City Traffic Engineer. d) Reconfiguration of parking lot landscaping. e) Modification of the approved architectural style. f) Any other minor change to the site plan provided it does not 19 15-89 increase any structure area, height, number of units, number of hotel rooms, and/or change of use. 2. Any proposed changes that are not deemed minor shall be subject to review and approval by the Planning Commission. 20 15-90 H [A — Ivy 0/4. NIP 130 000N ­47 Exhibit A 21 15-91 Exhibit B 4� 10 ' • • S4" CILEME! NCO � m • if �� l Q Q 00 �¢o .tea �� ■ P�`0O �� GO • ~ " Golf Course �31 + GoN%i.' & Tennis Clubhouse, ■ �Cq •Hotel, & Residential p i T HWY AOi . • .L 80� 00 tir�� :..N,EDER �--=.,--.... Z O •? O pq r 1 m rm R 4Z, a 70 z `�<<� r� 0 899ft 22 15-92 Attachment E Ordinance No. 2022-20 15-93 ORDINANCE NO. 2022-20 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING THE SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT (DA2008-001) FOR THE TENNIS CLUB AT NEWPORT BEACH LOCATED AT 1602 EAST COAST HIGHWAY (PA2021-260) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, in 2012, the City Council approved an application by Golf Realty Fund, Managing Owner ("Applicant") for the reconstruction of the 3,725-square-foot tennis clubhouse, reduction of tennis courts from 24 to seven courts, construction of a 27-room boutique hotel with 9,700 square feet of ancillary uses, five single-family residential units, and a development agreement for the property ("2012 Entitlements") located at 1602 East Coast Highway, and legally described as Parcels A, B, C, and D of Parcel Map No. 2016- 151 (commonly referred as the "Tennis Club Site" or "Property"), - WHEREAS, Development Agreement No. DA2008-001 ("Agreement") adopted pursuant to Ordinance No. 2012-3 was executed and recorded, as document number 20140000363691 WHEREAS, on November 20, 2018, the Zoning Administrator approved Coastal Development Permit No. CD2017-039, authorizing the redevelopment of the Property consistent with the 2012 Entitlements (2012 Entitlements and Coastal Development Permit No. CD2017-039 are collectively referred to as the "Approved Project"); WHEREAS, on July 12, 2022, the City Council adopted Ordinance No. 2022- 16, approving an amendment to Development Agreement No. DA2008-001 to extend the term of the agreement for one additional year ("First Amendment"); 15-94 Ordinance No. 2022- Page 2 of 7 WHEREAS, the Applicant is requesting an amendment to the Approved Project to allow an increase in the number of future tennis courts from seven to eight, an increase in the number of future hotel rooms from 27 to 41, an increase to the gross floor area of ancillary hotel uses by 4,686 square feet, three attached condominium units and two single family residences in -lieu of five single-family residences, and an amendment to the 2012 Development Agreement to account for the aforementioned changes to the Approved Project along with extending the term for an additional 10 years ("Project"); WHEREAS, the following approvals are requested or required in order to implement the Project: • General Plan Amendment ("GPA") — An amendment to Anomaly No. 46 of Table LU2 of the 2006 Newport Beach General Plan Land Use Element to document the conversion of 17 tennis courts to 27 hotel rooms authorized by City Council Resolution No. 2012-10, and the addition of 14 hotel rooms for a total of 41 rooms and one tennis courts for a total of eight tennis courts; • Local Coastal Program Implementation Plan Amendment ("LCPA") — An amendment to Section 21.26.055(S)(2) (Planned Community Coastal Zoning District Development Standards, Newport Beach Country Club (PC-47, Tennis Club) of the Newport Beach Municipal Code ("NBMC") to modify the permitted uses and development standards allowed on the Property; • Planned Community Development Plan Amendment ("PCDP Amendment") — An amendment to Planned Community Development Plan No. 47 (Newport Beach Country Club Planned Community) to amend land use regulations and development standards on the Property; • Major Site Development Permit Amendment ("SDA") — An amendment to the existing site development review in accordance with PC-47 and Section 20.52.080 (Permit Review Procedures, Site Development Reviews) of the NBMC for the construction of the Project; • Coastal Development Permit Amendment ("CDPA") — A coastal development permit for the demolition of existing structures, further subdivision on the Property, and implementation of the Project; • Vesting Tentative Tract Map Amendment ("VTMA") — An amendment to Vesting Tentative Tract Map No. 15347 pursuant to Title 19 (Subdivisions) of the NBMC 15-95 Ordinance No. 2022- Page 3 of 7 for a lot reduction created for the Approved Project and inclusion of the condominium ownership; • Limited Term Permit Amendment ("XP") — A limited term permit to allow temporary use of structures during construction on the Property, pursuant to Section 20.52.040 of the NBMC; • Development Agreement Amendment ("DA") — A second amendment to the Development Agreement (DA2008-001), between the Applicant and the City, pursuant to Sections 15.45.020(A)(2)(c) (Buildings and Construction, Development Agreements Required, Development Agreement Required) and 15.45.070 (Buildings and Constructions, Development Agreements, Amend ment/CanceIlation) of the NBMC, which would provide vested rights to develop the Project for an additional 10 years and provide negotiated public benefits to the City; and • Addendum to previously adopted Mitigated Negative Declaration No. ND-2010- 008 (SCH2010091052) ("Addendum") — Pursuant to the California Environmental Quality Act ("CEQA"), the Addendum addresses reasonably foreseeable environmental impacts resulting from the Project; WHEREAS, the Property is designated Mixed -Use Horizontal 3/Parks and Recreation (MU-H3/PR) by the City of Newport Beach General Plan and is located within the Newport Beach Country Club Planned Community (PC-47) Zoning District; WHEREAS, the Property is designated Mixed -Use Horizontal/Parks and Recreation (MU-H/PR) by the Coastal Land Use Plan and is located within the Newport Beach Country Club Planned Community (PC-47) Coastal Zone District; WHEREAS, the Planning Commission held a public hearing on September 8, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California, at which time the Planning Commission considered the Project. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing; 15-96 Ordinance No. 2022- Page 4 of 7 WHEREAS, at the hearing, the Planning Commission adopted Resolution No. PC2022-022 (5 ayes, 1 absent, 1 recusal) recommending approval of the Project to the City Council; WHEREAS, the City Council held a public hearing on September 27, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing; WHEREAS, at the hearing, the City Council remanded the Project to the Planning Commission on a future date by a majority vote (6 ayes, 1 nays); WHEREAS, at the City Council meeting on October 11, 2022, the City Council adopted a motion for reconsideration of the Project by a majority vote (4 ayes, 3 nays); and WHEREAS, the City Council held a public hearing on October 25, 2022, in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the Ralph M. Brown Act, and Chapters 15.45 (Development Agreements), 19.12 (Tentative Map Review), 20.56 (Planning Community District Procedures), 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this hearing. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council has considered the recommendation of the Planning Commission and determined that modifications to the Project made by the City Council, if any, are not major changes that require referral back to commission for consideration and recommendation. 15-97 Ordinance No. 2022- Page 5 of 7 Section 2: The City Council finds the Second Amendment is consistent with provisions of California Government Code Sections 65864 to 65869.5 and Chapter 15.45 (Development Agreements) of the NBMC that authorize binding agreements that: (i) encourage investment in, and commitment to, comprehensive planning and public facilities financing; (ii) strengthen the public planning process and encourage private implementation of the local general plan; (iii) provide certainty in the approval of projects in order to avoid waste of time and resources; and (iv) reduce the economic costs of development by providing assurance to the property owners that they may proceed with projects consistent with existing policies, rules, and regulations. The City Council finds the Second Amendment is consistent with Land Use Element of the General Plan which designates the Tennis Club site as Mixed Use Horizontal 3/Park and Recreation (MU- H3/PR). The MU-H3/PR designation on the Tennis Club site provides for the horizontal intermixing of regional commercial office, hotel, single-family and multi -family residential and ancillary commercial uses. The PR designation allows active public or private recreational uses including parks (both active and passive), golf courses, marina support facilities, aquatic facilities, tennis clubs and courts, private recreation, and similar facilities. The Project necessitates an amendment to the General Plan due to the increased number of hotel rooms and tennis courts. However, there are no proposed changes to the land uses permitted per the General Plan land use designation and the Project is consistent with all applicable General Plan Land Use policies. Additionally, the City Council finds the Second Amendment is entered into pursuant to, and constitutes a present exercise of, the City's police power and is in the best interest of the health, safety, and general welfare of the City, residents, and the public. The City Council finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger. Section 3: The Second Amendment to Development Agreement No. DA2008- 001 which is attached hereto as Exhibit 'A," and incorporated herein by reference between the City of Newport Beach and GRF to accommodate the development of Project and to extend the term of the agreement to September 23, 2032, is hereby approved. 15-98 Ordinance No. 2022- Page 6 of 7 Section 4: An Addendum to Mitigated Negative Declaration No. ND2010-008 ("MND") was prepared for the Project in compliance with the California Environmental Quality Act ("CEQA") set forth in California Public Resources Code Section 2100 et seq.; CEQA's implementing regulations set forth in CCR Title 14, Division 6 Chapter 3 ("CEQA Guidelines") and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act) to ensure that the Project will not result in new or increased environmental impacts. On the basis of the MND and entire environmental review record, the additional tennis court, hotel rooms, ancillary hotel uses, and conversion of 3 single-family residences to condominium units will not result in any new significant impacts that were not previously analyzed in the MND. The Addendum confirms and provides substantial evidence that the potential impacts associated with this Project would either be the same or less than those described in the MND, or as mitigated by applicable mitigation measures in the MND. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the MND, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, the City Council adopted Resolution No. 2022- , thereby adopting an addendum to the previously adopted MND. Resolution 2022- , including all findings contained therein, is hereby incorporated by reference. Section 5: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 6: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 15-99 Ordinance No. 2022- Page 7 of 7 Section 7: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 25th day of October, 2022, and adopted on the 15th day of November, 2022, by the following vote, to -wit: AYES: NAYS: ABSENT: KEVIN MULDOON, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE AARO HARP, ITY ATTORNEY Attach ent(s): Exhibit "A" — Second Amendment to Development Agreement No. DA2008-001 15-100 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Attn: City Clerk (Space Above This Line Is for Recorder's Use Only) This First Amendment is recorded at the request and for the benefit of the City of Newport Beach and is exempt from the payment of a recording fee pursuant to Government Code §§ 6103 and 27383. SECOND AMENDMENT TO DEVELOPMENT AGREEMENT between CITY OF NEWPORT BEACH and GOLF REALTY FUND CONCERNING PROPERTIES LOCATED AT TENNIS CLUB AT NEWPORT BEACH WITHIN THE NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY DISTRICT 15-101 SECOND AMENDMENT TO DEVELOPMENT AGREEMENT (Pursuant to California Government Code Sections 65864-65869.5) This SECOND AMENDMENT TO DEVELOPMENT AGREEMENT (the "Second Amendment") is entered into and effective on the date it is recorded with the Orange County Recorder ("Effective Date") by and between the CITY OF NEWPORT BEACH ("City"), and GOLF REALTY FUND, a California limited partnership ("Property Owner"). City and Property Owner are sometimes collectively referred to in this Second Amendment as the "Parties" and individually as a "Party." RFCTTAT q A. Property Owner is the managing owner of and owns a fee interest in title to that certain real property located in the City of Newport Beach, County of Orange, State of California which is more particularly described in the legal description attached as Exhibit "A" and depicted on the site map attached hereto as Exhibit "B" ("Property"). The Property consists of approximately seven (7) acres within the area shown on the City's Zoning Map as the Newport Beach Country Club Planned Community District. The Property comprises the Tennis Club at Newport Beach site shown on Exhibit "B" which consists of The Villas Sub -Area, The Tennis Club Sub -Area, and The Bungalows Sub -Area. B. City and Property Owner entered into that certain Development Agreement between the City of Newport Beach and Golf Realty Fund dated March 27, 2012, and recorded in the Official Records of Orange County on January 29, 2014, as document number 201400003 63 69 ("Agreement") attached hereto as Exhibit "C" and incorporated herein by reference for a term of ten (10) years. C. On November 20, 2018, the City approved Coastal Development Permit No. CD2017-039 to allow the demolition of the eighteen (18) existing tennis courts and construction of the Tennis Club, Villas and Bungalows at the Tennis Property, however, the Agreement was not amended or modified. D. City and Property Owner entered into the First Amendment to Development Agreement between the City of Newport Beach and Golf Realty Fund pursuant to Ordinance No. 2022-16 and recorded in the Official Records of Orange County on XX, XXXX, as document ("First Amendment"), attached hereto as Exhibit "D" and incorporated herein by reference. E. The Parties now wish to enter into this Second Amendment to increase the number of tennis courts from seven (7) to eight (8), increase the number of hotel rooms from twenty-seven (27) to forty-one (41), increase the gross floor area of ancillary hotel uses by four thousand six hundred eight -six (4,686) square feet, and construct three (3) attached condominium units and two (2) single-family residences in lieu of five (5) single-family residences. F. On September 8, 2022, the Planning Commission held the public hearing on the Second Amendment and considered the testimony and information submitted by City staff, Property Owner, and members of the public. Consistent with applicable provisions of the Development Agreement Statute and Ordinance, the Planning Commission adopted Resolution No. PC2022-022, recommending the City Council approve the Second Amendment. 1 15-102 G. On September 27, 2022, the City Council held a noticed public hearing on the Second Amendment and considered the testimony and information submitted by City staff, Property Owner, and members of the public. At the hearing, the City Council remanded the Project to the Planning Commission on a future date by a majority vote (6 ayes, 1 nays). At the City Council meeting on October 11, 2022, the City Council adopted a motion for reconsideration of the Project by a majority vote (4 ayes, 3 nays). On October 25, 2022, consistent with applicable provisions of the Development Agreement Statute and Ordinance, the City Council held the second reading and adopted Ordinance No. 2022- approving the Second Amendment. H. This Second Amendment is consistent with the City of Newport Beach General Plan ("General Plan"), including without limitation the General Plan's designation of the Property as "MU-H3/PR" (Mixed Use Horizontal /(Parks and Recreation) (Anomaly 46); Coastal Land Use Plan designation as "MU-H/PR (Mixed Use Horizontal / Parks & Recreation"; the Newport Beach Country Club Planned Community District that was adopted in 1997 by Ordinance No. 97-10, and amended in 2022 by Ordinance No. 2022- in order to establish appropriate zoning to regulate land use and development of the Property consistent with the General Plan; and Newport Beach Country Club Planned Community Development Plan No. PC2005-002 approved for the Property on March 27, 2012 by Ordinance No. 2012-2 and amended on October 11, 2022 by Ordinance No. 2022- I. In recognition of the significant public benefits that this Second Amendment provides, the City Council finds that this Second Amendment: (i) is consistent with the City of Newport Beach General Plan as of the date of its adoption; (ii) is in the best interests of the health, safety, and general welfare of City, its residents, and the public; (iii) is entered into pursuant to, and constitutes a present exercise of, City's police power; (iv) is consistent and has been approved consistent with the Addendum No. ND2022-001 to the previously adopted Mitigated Negative Declaration No. ND2010-008 (SCH 2O10091052) and Errata to Mitigated Negative Declaration No. ND2010-008 (together referred as "MND") for the Newport Beach Country Club Planned Community District (PA2021-260 amending PA2005-002) approved by the City Council, both of which analyze the environmental effects of the proposed development of the Project on the Property; and (v) is consistent and has been approved consistent with provisions of California Government Code section 65867 et seq. and Chapter 15.45 City of Newport Beach Municipal Code ("NBMC"). AGREEMENT NOW, THEREFORE, City and Property Owner agree as follows: 1. Definitions. Section 1 of the Agreement is hereby amended to add or revise the following definitions. Unless added or revised, all other definitions set forth in Section 1 of the Agreement shall remain unchanged: "Adopting Ordinance" shall mean City Council Ordinance No. 2022- approving and adopting this Second Amendment. "Agreement" shall mean this Development Agreement, as the same may be amended from time to time including, the First Amendment and Second Amendment. 2 15-103 "Agreement Date" shall mean November 15, 2022 which date is the date the City Council adopted the Adopting Ordinance. "Development Plan" shall mean the amendment to Newport Beach Planned Community Development Plan No. PC2005-002 adopted pursuant to Ordinance No. 2022- ; amendment to Vesting Tentative Tract Map No. NT2005-003 adopted pursuant to Resolution No. 2022-; amendment to Site Development Review No. SD2011-002 adopted pursuant to Resolution No. 2022-; amendment to Limited Term Permit No. XP2011-004 adopted pursuant to Resolution No. 2022- ; General Plan Amendment adopted pursuant to Resolution No. 2022- ; amendment to Coastal Development Permit No. CD2017-039 adopted pursuant to Resolution No. 2022; and Local Coastal Program Amendment No. PA2021-260. "Development Regulations" shall mean the following regulations as they are in effect as of the Agreement Date and to the extent they govern or regulate the development of the Property, but excluding any amendment or modification to the Development Regulations adopted, approved, or imposed after the Agreement Date that impairs or restricts Property Owner's rights set forth in this agreement, unless such amendment or modification is expressly authorized by this Agreement or is agreed to by Property Owner in writing: the General Plan, the Coastal Land Use Plan, the Development Plan, the Local Coastal Program Implementation Plan; and, to the extent not expressly superseded by the Development Plan or this Agreement, all other land use and subdivision regulations governing the permitted uses, density and intensity of use, design, improvement, and construction standards and specifications, procedures for obtaining required City permits and approvals for development, and similar matters that may apply to development of the Project on the Property during the Term of this Agreement that are set forth in Title 15 of the Municipal Code (buildings and construction), Title 19 of the Municipal Code (subdivisions). Title 20 of the Municipal Code (planning and zoning) and Title 21 of the Municipal Code (local coastal program implementation plan), but specifically excluding all other sections of the Municipal Code, including without limitation Title 5 of the Municipal Code (business licenses and regulations). Notwithstanding the foregoing, the term "Development Regulations," as used herein, does not include any City ordinance, resolution, code, rule, regulation or official policy governing any of the following: (i) the conduct of businesses, professions, and occupations; (ii) taxes and assessments; (iii) the control and abatement of nuisances; (iv) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or entry upon public property; or (v) the exercise of the power of eminent domain. "Effective Date" shall mean the latest of the following dates, as applicable: (i) the date that is thirty (30) days after the Agreement Date; (ii) if a referendum concerning the Adopting Ordinance, the Development Plan, or any of the Development Regulations approved on or before the Agreement Date is timely qualified for the ballot and a referendum election is held concerning the Adopting Ordinance or any of such Development Regulations, the date on which the referendum is certified resulting in upholding and approving the Adopting Ordinance and the Development Regulations; or (iii) if a lawsuit is timely filed challenging the validity of the Adopting Ordinance, this Agreement, and/or any of the Development Regulations approved on or before the Agreement Date, the date on which said challenge is finally resolved in favor of the validity or legality of the Adopting Ordinance, this Agreement, the Development Plan and/or the applicable Development Regulations, which such finality is achieved by a final non -appealable judgment, voluntary or involuntary dismissal (and the passage of any time required to appeal an involuntary dismissal), or binding written settlement agreement. Promptly after the Effective Date 3 15-104 occurs, the Parties agree to cooperate in causing an appropriate instrument to be executed and recorded against the Property memorializing the Effective Date. "Project" shall mean all on -site and off -site improvements that Property Owner is authorized and/or may be required to construct with respect to each parcel of the Property, as provided in this Second Amendment and the Development Regulations, as amended by this Second Amendment, and/or as the same may be modified or amended from time to time consistent with this Second Amendment and applicable law. 2. Term of Agreement. Section 2.4 of the Agreement is hereby amended in its entirety to read as follows: The term of this Agreement ("Term") shall commence on the Effective Date of Second Amendment and shall terminate on the "Termination Date." Notwithstanding any other provision set forth in this Agreement to the contrary, if any Party reasonably determines that the Effective Date will not occur because (i) the Adopting Ordinance or any of the Development Regulations approved on or before the Agreement Date for the Project has/have been disapproved by City's voters at a referendum election or (ii) a final non - appealable judgment is entered in a judicial action challenging the validity or legality of the Adopting Ordinance, this Agreement, and/or any of the Development Regulations for the Project approved on or before the Agreement Date such that this Agreement and/or any of such Development Regulations is/are invalid and unenforceable in whole or in such a substantial part that the judgment substantially impairs such Party's rights or substantially increases its obligations or risks hereunder or thereunder, then such Party, in its sole and absolute discretion, shall have the right to terminate this Agreement upon delivery of a written notice of termination to the other Party, in which event neither Party shall have any further rights or obligations hereunder except that Property Owner's indemnity obligations set forth in Article 10 shall remain in full force and effect and shall be enforceable, and the Development Regulations applicable to the Project and the Property only (but not those general Development Regulations applicable to other properties in the City) shall be repealed by the City after delivery of said notice of termination except for the Development Regulations that have been disapproved by City's voters at a referendum election and, therefore, never took effect. The Termination Date shall be the earliest of the following dates: (i) September 23, 2032; (ii) such earlier date that this Agreement may be terminated in accordance with Articles 5, 7, and/or Section 8.3 of this Agreement and/or Sections 65865.1 and/or 65868 of the Development Agreement Statute; or (iii) completion of the Project in accordance with the terms of this Agreement, including Property Owner's complete satisfaction, performance, and payment, as applicable, of all Development Exactions, the issuance of all required final occupancy permits, and acceptance by City or applicable public agency(ies) or private entity(ies) of all required offers of dedication. Notwithstanding any other provision set forth in this Agreement to the contrary, the provisions set forth in Article 10 and Section 13.10 (as well as any other Property Owner obligations set forth in this Agreement that are expressly written to survive the Termination Date) shall survive the Termination Date of this Agreement. 0 15-105 3. Public Benefit Fee. Section 3.1 of the Agreement is hereby amended in its entirety to read as follows: As consideration for City's approval and performance of its obligations set forth in this Agreement, Property Owner shall pay to City a fee that shall be in addition to any other fee or charge to which the Property and the Project would otherwise be subject to (herein, the "Public Benefit Fee") in the total sum of five hundred two thousand two hundred fifty dollars ($502,250.00) broken down as follows: (i) ninety-three thousand dollars and 00/100 ($93,000.00 per residential dwelling unit) for a sum of four hundred sixty-five thousand dollars and 00/100 ($465,000.00) for the residential units; and (ii) ten dollars and 00/100 ($10.00) per square foot of the three thousand seven hundred twenty-five (3,725) square foot Tennis Clubhouse for a sum of thirty-seven thousand two hundred fifty dollars and 00/100 ($37,250.00), with the unpaid balance of said Public Benefit Fee increased on the first January 1 following the Effective Date of this Agreement by the percentage increase in the CPI Index between the Effective Date and said January 1st date (the first "Adjustment Date") and thereafter with the unpaid balance of said Public Benefit Fee increased on each subsequent January 1 during the Term of this Agreement (each, an "Adjustment Date") by the percentage increase in the CPI Index in the year prior to the applicable Adjustment Date. The amount of the percentage increase in the CPI Index on the applicable Adjustment Dates shall in each instance be calculated based on the then most recently available CPI Index figures such that, for example, if the Effective Date of this Agreement falls on July 1 and the most recently available CPI Index figure on the first Adjustment Date (January 1 of the following year) is the CPI Index for November of the preceding year, the percentage increase in the CPI Index for that partial year (a 6-month period) shall be calculated by comparing the CPI Index for November of the preceding year with the CPI Index for May of the preceding year (a 6- month period). In no event, however, shall application of the CPI Index reduce the amount of the Public Benefit Fee (or unpaid portion thereof) below the amount in effect prior to any applicable Adjustment Date. Property Owner shall pay the Public Benefit Fee at the following time(s): (i) As to the residential dwelling units, prior to the issuance of the first building permit for any residential unit; and (ii) as to the tennis clubhouse, prior to the issuance of the first building permit. Notwithstanding any other provision set forth in this Agreement to the contrary, during the Term of this Agreement, City shall not increase the Public Benefit Fee except pursuant to the CPI Index as stated in this Section 3.1. The Public Fee Benefit Fee shall be calculated based on the total square feet of construction for the tennis clubhouse. Property Owner shall not be entitled to any credit or offset to the Public Benefit Fee for any existing buildings or structures. Property Owner acknowledges by its approval and execution of this Agreement that it is voluntarily agreeing to pay the Public Benefit Fee, that its obligation to pay the Public Benefit Fee is an essential term of this Agreement and is not severable from City's obligations and Property Owner's vesting rights to be acquired hereunder, and that Property Owner expressly waives any constitutional, statutory, or common law right it might have in the absence of this Agreement to protest or challenge the payment of such fee on any ground whatsoever, including without limitation pursuant to the Fifth and Fourteenth Amendments to the United States Constitution, California Constitution Article I Section 19, the Mitigation Fee Act (California Government Code Section 66000 et seq. ), or otherwise. In addition to any other remedy set forth in this Agreement for Property Owner's default, if Property Owner shall fail to timely pay any portion of the Public Benefit Fee when due City shall have the right to withhold issuance of any further building permits, occupancy permits, or other development or building permits for the Development Plan. 5 15-106 4. Amendment or Cancellation of Agreement. Section 5 of the Agreement is hereby amended in its entirety to read as follows This Agreement may be amended or canceled in whole or in part only by mutual written and executed consent of the Parties in compliance with California Government Code Section 65868 and Newport Beach Municipal Code Section 15.45.070 or by unilateral termination by City in the event of an uncured default of Property Owner. 5. Procedure. Section 7.3 of the Agreement is hereby amended in its entirety to read as follows: The Zoning Administrator shall conduct a duly noticed hearing and shall determine, on the basis of substantial evidence, whether or not Property Owner has, for the period under review, complied with the terms of this Agreement. If the Zoning Administrator finds that Property Owner has so complied, the annual review shall be concluded. If the Zoning Administrator finds, on the basis of substantial evidence, that Property Owner has not so complied, written notice shall be sent to Property Owner by first class mail of the Zoning Administrator's finding of non-compliance, and Property Owner shall be given at least ten (10) calendar days to cure any noncompliance that relates to the payment of money and thirty (30) calendar days to cure any other type of noncompliance. If a cure not relating to the payment of money cannot be completed within thirty (30) calendar days for reasons which are beyond the control of Property Owner, Property Owner must commence the cure within such thirty (30) calendar days and diligently pursue such cure to completion. If Property Owner fails to cure such noncompliance within the time(s) set forth above, such failure shall be considered to be a Default and City shall be entitled to exercise the remedies set forth in Article 8 below. 6. General Provisions. Section 8.1 of the Agreement is hereby amended in its entirety to read as follows: In the event of any material default, breach, or violation of the terms of this Agreement ("Default'), the Parry alleging a Default shall deliver a written notice (each, a "Notice of Default") to the defaulting Party. The Notice of Default shall specify the nature of the alleged Default and a reasonable manner and sufficient period of time (twenty (20) calendar days if the Default relates to the failure to timely make a monetary payment due hereunder and not less than thirty (30) calendar days in the event of non -monetary Defaults) in which the Default must be cured ("Cure Period'). During the Cure Period, the Party charged shall not be considered in Default for the purposes of termination of this Agreement or institution of legal proceedings. If the alleged Default is cured within the Cure Period, then the Default thereafter shall be deemed not to exist. If a non -monetary Default cannot be cured during the Cure Period with the exercise of commercially reasonable diligence, the defaulting Party must promptly commence to cure as quickly as possible, and in no event later than thirty (30) calendar days after it receives the Notice of Default, and thereafter diligently pursue said cure to completion. Notwithstanding the foregoing, the City is not required to give Property Owner notice of default and may immediately pursue remedies for a Property Owner Default that result in an immediate threat to public health, safety or welfare. 7. Full Force and Effect. Except as modified by this Second Amendment, the entire Agreement, First Amendment its exhibits, and the exhibits attached hereto, are incorporated herein to this Second Amendment and shall remain in full force and effect. no 15-107 8. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. 9. Recordation. The City Clerk shall record this Second Amendment in the Office of the County Recorder of the County of Orange within the period required by California Government Code Section 65858.5 and Section 15.45.100 of the NBMC. [SIGNATURES ON NEXT PAGE] 7 15-108 SIGNATURE PAGE TO SECOND AMENDMENT TO DEVELOPMENT AGREEMENT "PROPERTY OWNER" GOLF REALTY FUND, a California limited partnership By: O Hill Capital, a California limited partnership Its General Partner By: Robert O Hill, General Partner "CITY" CITY OF NEWPORT BEACH, a California municipal corporation IIn ATTEST: Leilani I. Brown, City Clerk APPROVED AS TO FORM: Aaron C. Harp, City Attorney Kevin Muldoon, Mayor Attachments: Exhibit A — Legal Description of Property Exhibit B — Depiction of Property Exhibit C — Development Agreement Recorded January 29, 2014 Exhibit D — First Amendment to Development Agreement 15-109 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) I 15-110 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY PARCELS A, B, C AND D OF PARCEL MAP 2016-151, LOCATED IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, RECORDED IN BOOK 402 PAGES 24 THROUGH 32 INCLUSIVE OF PARCEL MAPS, RECORDS OF SAID COUNTY. A-1 15-111 EXHIBIT B DEPICTION OF PROPERTY SHMT f OF 9 SHEM PARCEL MAP NO. 2016-151 '� M THE CITY OF NEWPORT BEACH, Un 14 as OF Sft't SWUM M COUNTY OF ORANGE, STATE OF CALIFORNIA �m OF EXTAME PARM MP M 2AS-ill PAUW w a=4 iv RL.S 7075 SEf'1 M3M 2015 SCR fNAMX AAV COV*YAkT RIM= crtr BGIUASDARY EST &JSWrVT AAD SH7TyX i 1 rauw owaws+oV TRACT Mltj 14a++14v �[ btM+ �d�s F.M. Siff. 1 �rIB. I5: r 41.r4 PAF j.iaa.oair �iPl�ip•�fn�c PAid%t C 1N A A ALM if \\\j l IPAAL£L 13 wA=49" w 5 1 w awIO I'� AW �T 5 _ � r L'3 i45 l 7-$ 11 I I I I I PA I I 10 smxr 7 sir 15-112 EXHIBIT C DEVELOPMENT AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND GOLF REALTY FUND RECORDED JANUARY 29, 2014 Available separately due to bulk at: https://www.nemTortbeachca.gov/govemment/departments/communi .-development/planning- division/development-agreements C-1 15-113 EXHIBIT D FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND GOLF REALTY FUND 15-114 EXHIBIT D FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND GOLF REALTY FUND 15-115 10/5/22. 1226 PNI Batch 14786849 Confirmation Recorded in Official Records, Orange County Hugh Nguyen, Clerk -Recorder Il Il I illll IIIII III III I III) illlli illy �� (� NO FEE 3 R 0 0 3 9 9 3 6 8 6 S k RECORDING REQUESTED BY 2022000326056 12:22 pm 10105/22 AND WHEN RECORDED RETURN TO: 9 RW9A Al 42 0.00 0.00 0.00 0.00 123.00 0.00 0.000.000.00 0.00 City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Attn: City Clerk (Space Above This Line Is for Recorder's Use Only) This First Amendment is recorded at the request and for the benefit of the City of Newport Beach and is exempt from the payment of a recording fee pursuant to Government Code §§ 6103 and 27383. FIRST AMENDMENT TO DEIVELOPMENT AGREEMENT between CITY OF NEWPORT BEACH and I GOLF REALTY FUND CONCERNING PROPERTIES LOCATED AT TENNIS CLUB AT NEWPORT BEACH WITHIN THE NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY DISTRICT I I https bgs.sort ire -recording. con)/Batch/Confirm ationi14786849 t 15-116 1015/22, 12:26 PM Batch 14786849 Confirmation FIRST ATMENDME1NT TO DEVELOPMENT AGREEMENT (Pursuant to California Government Code Sections 65864-65869.5) This FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the "First Amendment") is entered into and effective on the date it is recorded with the Orange County Recorder ("]Effective Date") by and between the CITY OF NEWPORT BEACH ("City"), and GOLF REALTY FUND, a California limited partnership "Property Owner"). City and Property Owner are sometimes collectively referred to in this First Amendment as the "Parties" and individually as a "Party." RECITALS A. Property Owner is the managing owner of and owns a fee interest in title to that certain real property located in the City of Newport Beach, County of Orange, State of California which is more particularly described in the legal description attached as Exhibit "A" and depicted on the site map attached hereto as Exhibit `B" ("Property"). The Property consists of approximately seven (7) acres within the area shown on the City's Zoning Map as the Newport Beach Country Club Planned Community District. The Property comprises the Tennis Club at Newport Beach site shown on Exhibit `B" which consists of The Villas Sub -Area, The Tennis Club Sub -Area, and The Bungalows Sub -Area. B. City and Property Owner entered into that certain Development Agreement between the City of Newport Beach and Golf Realty Fund dated March 27, 2012, and recorded in the Official Records of Orange County on January 29, 2014, as document number 2014000036369 ("Agreement") attached hereto as Exhibit "C" with a ten (10) year term. C. On November 20, 2018, the City approved Coastal Development Permit No. CD2017-039 to allow the demolition of the 18 existing tennis courts and construction of the Tennis Club, Villas and Bungalows at the Tennis Property, however, the Agreement was not amended or modified. D. The Parties now wish to enter into that First Amendment extending the term for an additional year and updating certain provisions. E. On May 12, 2022, the Planning Commission opened the noticed public hearing on this First Amendment and continued the item to May 26, 2022. F. On May 26, 2022, the Planning Commission held the public hearing on this First Amendment and considered the testimony and information submitted by City staff. Property Owner, and members of the public. Consistent with applicable provisions of the Development Agreement Statute and Ordinance, the Planning Commission adopted Resolution No. PC2022- 008, recommending the City Council approve this First Amendment. hltps:Ngs.secure-recording.com/Batch/Confirmation/'I4786849 1 b?117 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Attn: Citv Clerk (Space Above This Line Is for Recorder's Use Only) This First Amendment is recorded at the request and for the benefit of the City of Newport Beach and is exempt from the payment of a recording fee pursuant to Government Code §§ 6103 and 27383. FIRST AMENDMENT TO DEVELOPMENT AGREEMENT between CITY OF NEWPORT BEACH and GOLF REALTY FUND CONCERNING PROPERTIES LOCATED AT TENNIS CLUB AT NEWPORT BEACH WITHIN THE NEWI'ORT BEACI-$ COUNTRY CLUB PLANNED COMMUNITY DISTRICT 15-118 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (Pursuant to California Government Code Sections 65864-65869.5) This FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the "First Amendment") is entered into and effective on the date it is recorded with the Orange County Recorder ("Effective Date") by and between the CITY OF NEWPORT BEACH ("City"), and GOLF REALTY FUND, a California limited partnership "Property Owner"). City and Property Owner are sometimes collectively referred to in this First Amendment as the "Parties" and individually as a "Party." RECITALS A. Property Owner is the managing owner of and owns a fee interest in title to that certain real property located in the City of Newport Beach, County of Orange, State of California which is more particularly described in the legal description attached as Exhibit "A" and depicted on the site map attached hereto as Exhibit "B" ("Property"). The Property consists of approximately seven (7) acres within the area shown on the City's Zoning Map as the Newport Beach Country Club Planned Community District. The Property comprises the Tennis Club at Newport Beach site shown on Exhibit `B" which consists of The Villas Sub -Area, The Tennis Club Sub -Area, and The Bungalows Sub -Area. B. City and Property Owner entered into that certain Development Agreement between the City of Newport Beach and Golf Realty Fund dated March 27, 2012, and recorded in the Official Records of Orange County on January 29, 2014, as document number 2014000036369 ("Agreement") attached hereto as Exhibit "C" with a ten (10) year term. C. On November 20, 2018, the City approved Coastal Development Permit No. CD2017-039 to allow the demolition of the 18 existing tennis courts and construction of the Tennis Club, Villas and Bungalows at the Tennis Property, however, the Agreement was not amended or modified. D. The Parties now wish to enter into that First Amendment extending the term for an additional year and updating certain provisions. E. On May 12, 2022, the Planning Commission opened the noticed public hearing on this First Amendment and continued the item to May 26, 2022. F. On May 26, 2022, the Planning Commission held the public hearing on this First Amendment and considered the testimony and information submitted by City staff, Property Owner, and members of the public. Consistent with applicable provisions of the Development Agreement Statute and Ordinance, the Planning Commission adopted Resolution No. PC2022- 008, recommending the City Council approve this First Amendment. 15-119 G. On June 28, 2022, the City Council held a noticed public hearing on this First Amendment and considered the testimony and information submitted by City staff. Property Owner, and members of the public. On July 12. 2022, consistent with applicable provisions of the Development Agreement Statute and Ordinance, the City Council held the second reading and adopted Ordinance No. approving this First Amendment. H. This First Amendment is consistent with the City of Newport Beach General Plan ("General Plan"), including without limitation the General Plan's designation of the Property as "MU-H3/PR" (Mixed Use Horizontal /(Parks and Recreation) (Anomaly 46); Coastal Land Use Plan designation as "MU-H/PR (Mixed Use Horizontal / Parks & Recreation"; the Newport Beach Country Club Planned Community District that was adopted in 1997 by Ordinance No. 97-10 in order to establish appropriate zoning to regulate land use and development of the Property consistent with the General Plan; and Newport Beach Country Club Planned Community Development Plan No PC2005-002 approved for the Property on March 27, 2012 by Ordinance No. 2012-2. 1. The City Council finds that this First Amendment: (i) is consistent with the City of Newport Beach General Plan as of the date of this First Amendment; (ii) is in the best interests of the health, safety, and general welfare of City, its residents, and the public; (iii) is entered into pursuant to, and constitutes a present exercise of, City's police power; (iv) is consistent and has been approved consistent with the Mitigated Negative Declaration No. ND2010-008 (SCH 2O10091052) and an Errata to Mitigated Negative Declaration No. ND2010- 008 (together referred as "MND") for the Newport Beach Country Club Planned Community District (PA2005-002) approved by the City Council, both of which analyze the environmental effects of the proposed development of the Project on the Property; and (v) is consistent and has been approved consistent with provisions of California Government Code section 65867 et seq. and Chapter 15.45 City of Newport Beach Municipal Code ("NBMC"). AGREEMENT NOW, THEREFORE, City and Property Owner agree as follows: 1. Term of Agreement. Section 2.4 of the Agreement is hereby amended in its entirety to read as follows: "The term of this Agreement (the "Tenn") shall commence on the Effective Date and continue until 2023, unless otherwise terminated or modified pursuant to its terms. Notwithstanding any other provision set forth in this Agreement to the contrary, the provisions set forth in Article 10 and Section 13.10 (as well as any other Property Owner obligations set forth in this Agreement that are expressly written to survive the Termination Date) shall survive the Termination Date of this Agreement." 2. Attorneys' Fees. Section 8.10 of the Agreement is hereby amended in its entirety to read as follows: 15-120 "In any judicial proceeding, arbitration, or mediation (collectively, an "Action") between the Parties that seeks to enforce the provisions of this Agreement or arises out of this Agreement, the prevailing Party shall not recover any of its costs and expenses, regardless of whether they would be recoverable under California Code of Civil Procedure section 1033.5 or California Civil Code section 1717 in the absence of this Agreement. These costs and expenses include, but are not limited to, court costs, expert witness fees, attorneys' fees, City staff costs (including overhead), and costs of investigation and preparation before initiation of the Action." 3. Notices. Section 13.1 of the Agreement is hereby amended in its entirety to read as follows: "Any notice or demand that shall be required or permitted by law or any provision of this Agreement shall be in writing. If the notice or demand will be served upon a Party, it either shall be personally delivered to the Party; deposited by a reliable courier service that provides a receipt showing date and time of delivery with courier charges prepaid. The notice or demand shall be addressed as follows: TO CITY: City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Attn: City Manager With a copy to: City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Attn: City Attorney TO PROPERTY OWNER: Golf Realty Fund One Upper Newport Plaza Newport Beach, CA 92660 Attn: Robert O'Hill Either Party may change the address stated in this Section 13.1 by delivering notice to the other Party in the manner provided in this Section 13.1, and thereafter, notices to such Party shall be addressed and submitted to the new address. Notices delivered in accordance with this Agreement shall be deemed to be delivered upon the earlier of: (1) the date received or (iii) three business days after deposit in the mail as provided above." 15-121 4. Full Force and Effect. Except as modified by this First Amendment, the entire Agreement, its exhibits, and the exhibits attached hereto, are incorporated herein to this First Amendment and shall remain in full force and effect. 5. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. 6. Recordation. The City Clerk shall record this First Amendment in the Office of the County Recorder of the County of Orange within the period required by California Government Code Section 65858.5 and Section 15.45.100 of the NBMC. (SIGNATURES ON NEXT PAGEI 15-122 SIGNATURE PAGE TO FIRST AMENDMENT TO DEVELOPMENT AGREEMENT "PROPERTY OWNER" GOLF REALTY FUND, a California limited partnership Its: "CITY" ATTEST: APPROVED AS TO FORM: uldoon, Mayor Attachments: Exhibit A — Legal Description of Property Exhibit B — Depiction of Property Exhibit C — Development Agreement Recorded January 29, 2014 E 15-123 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 4�>tr } ss. On _ -S r—p ,,r,�� `] , 20 2 2before me, _ � _ , Notary Public, personally appeared F.o b�r-� v j k"� 11 , wh roved 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. » Fr».. SUSAN BERG... IMIM(!.t S s • �� COMM # 2399874 z WITNESS my hand and official seal. • s ORANGE Courttyr 2 California Notary Pub) • Comm Exp Apr. 19, 2028: ........................... Signs re �— (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 C:7 (seal) 15-124 EXHIBIT A LEGAL ;DESCRIPTION OF PROPERTY Parcel 1 and Parcel 2 of Parcel Map 94-102, in the City of Newport Beach, County of Orange, State of California, as per Map filed in Book 316, Pages 3 to 6, inclusive, of Parcel Maps, in the office of the County Recorder of Orange County. A- 15-125 THE VILLAS 1 � i I 7(�tSTi 0 EXHIBIT B DEPICTION OF PROPERTY MASTER PLAN • THE TENNIS CLUB I new stadium court Tennis Clubhouse • THE VILLAS 5 single family homes • THE BUNGALOWS 27 guest rental units THE GOLF CLUB 15-126 EXHIBIT C DEVELOPMENT AGREEMENT RECORDED JANUARY 29, 2014 C-1 15-127 F— '—,,"`I�r�rd*f). d Official Records, Orange County r �tiugtl. NClerk-Recorder RECORDING REQUESTED BY �I�� I�IllNO FEE AND WHEN RECORDED RETURN TO - - ; � $t 0 6 4 T t ` u 1t114.100036369 8:05 am 091Z9/14 City of Newport Beach =!'V 22 Al 32 3300 Newport Boulevard ':-O MD.00 0.00 0.00 93.00 0.00 0.00 0.00 Newport Beach, CA 92663-3884 Attn: City Clerk (Space Above This Line Is for Recorder's Use Only) This Agreement is recorded at the request and for the benefit of the City of Newport Beach and is exempt from the payment of a recording fee pursuant to Government Code §§ 6103 and 27383. DEVELOPMENT AGREEMENT between CITY OF NEWPORT BEACH and GOLF REALTY FUND CONCERNING PROPERTIES LOCATED IN NEWPORT CENTER WITHIN THE NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY DISTRICT At "0773 03.07.12 0 V 15-128 ,�,°JELOPiL ENT AGREEMENT (Pursuant to California Government C'nde gPrtinne 6cQ6,1_p earn z� VdVVJvJJ This DEVELOPMENT AGREEMENT (the "Agreement") is dated for reference purposes as of the 2A'day of ( a(-C h , 2012 (the "Agreement Date"), and is being entered into by and between the City of Newport Beach ("City"), and Golf Realty Fund, a California limited partnership "Property Owner"). City and Property Owner are sometimes collectively referred to in this Agreement as the "Parties" and individually as a "Party." RECITALS A. Property Owner is the managing owner of and owns a fee interest in title to that certain real property located in the City of Newport Beach, County of Orange, State of California which is more particularly described in the legal description attached as Exhibit "A" and depicted on the site map attached hereto as Exhibit B (the, "Property"). The Property consists of approximately 7 acres within the area shown on the City's Zoning Map as the Newport Beach Country Club Planned Community District. The Property comprises the area shown on Exhibit B as The Villas Sub- Area, The Tennis Club Sub -Area, and The Bungalows Sub -Area. B. In order to encourage investment in, and commitment to, comprehensive planning and public facilities financing, strengthen the public planning process and encourage private implementation of the local general plan, provide certainty in the approval of projects in order to avoid waste of time and resources, and reduce the economic costs of development by providing assurance to property owners that they may proceed with projects consistent with existing land use policies, rules, and regulations, the California Legislature adopted California Government Code sections 65864-65869.5 (the "Development ApXeement Statute") authorizing cities and counties to enter into development agreements with persons or entities having a legal or equitable interest in real property located within their jurisdiction. C. On March 13, 2007, the City Council adopted Ordinance No. 2007-6, entitled "Ordinance Amending Chapter 15.45 of City of Newport Beach .Municipal Code Regarding Development Agreements" (the "Development Agreement Ordinance"). This Agreement is consistent with the Development Agreement Ordinance. D. As detailed in Section 3 of this Agreement, Property Owner has agreed to provide the following significant public benefits as consideration for this Agreement: Visitor -Serving Uses within the Coastal Zone, and other economic contributions including the payment of a Public Benefit Fee. E. This Agreement is consistent with the City of Newport Beach General Plan ("General Plan"), including without limitation the General Plan's designation of the Property as "MU-H3/PR" (Mixed Use Horizontal /(Parks and Recreation) (Anomaly 46), the Coastal Land Use Plan's designation as "MU-H/PR (Mixed Use Horizontal / Parks & Recreation", the Newport Beach Country Chub Planned Community District that was adopted in 1997 by Ordinance No. 97-10 in order to establish appropriate zoning to regulate land use and development of the Property consistent with the General Plan, and the Newport Beach Country Club Planned Community Development Plan No PC2005-002 approved for the Property on March 27, 2012 by Ordinance No. Z p Z.- 2 . A10-00773 �4 01.06.11 FINAL - 1 - 15-129 F. In recognition of the significant public benefits d1hat this Agreement provides, 'the City Council has found that this Agreement: (i) is consistent with the City of Newport Beach General Plan as of the date of this Agreement; NO is in the hest intPreStc of the health safety, an­4 general welfare of City, its residents, and the public; (iii) is entered into pursuant to, and constitutes a present exercise of, City's police power, (iv) is consistent and has been approved consistent with the Final Environmental Impact Report for the City of Newport Beach General Plan 2006 Update (State Clearinghouse No. 2006011119) and the Mitigated Negative Declaration No. ND2010-008 for the Newport Beach Country Club Planned Community District (PA,` 005— i4o) approved by the City Council on or before the Agreement Date, both of which analyze the environmental effects of the proposed development of the Project on the Property, and (v) is consistent and has been approved consistent with provisions of California Government Code section 65867 and City of Newport Beach Municipal Code chapter 15.45. G. On October 20, 2011 and November 17, 2011 , City's Planning Commission held public hearings on this Agreement, and on November 17, 2011, made findings and determinations with respect to this Agreement, and recommended to the City Council that the City Council approve this Agreement. H. On January 24, 2012 and March 13, 2012 , the City Council also held public hearings on this Agreement and considered the Planning Commission's recommendations and the testimony and information submitted by City staff, Property Owner, and members of the public. On March 27, 2012 , consistent with applicable provisions of the Development Agreement Statute and Development Agreement Ordinance, the City Council adopted its Ordinance No. 2012-3 (the "Adopting Ordinance"), finding this Agreement to be consistent with the City of Newport Beach General Plan and approving this Agreement. AGREEMENT NOW, THEREFORE, City and Property Owner agree as follows: Definitions. In addition to any terms defined elsewhere in this Agreement, the following terms when used in this Agreement shall have the meanings set forth below. - "Action" shall have the meaning ascribed in Section 8.10 of this Agreement. "Adopting Ordinance" shall mean City Council Ordinance No. 2012-3 approving and adopting this Agreement. "Agreement" shall mean this Development Agreement, as the same may be amended from time to time. "Aureernent Date" shall mean March 27, 2012, which date is the date the City Council adopted the Adopting Ordinance. "CEpA" shall mean the California Environmental Quality Act (California Public Resources Code Sections 21000-21177) and the implementing regulations promulgated A I O-Q0773 v4 01.06.I 1 FINAL 15-130 thereunder by the Secretary for Resources (California Code of Regulations, Title 14, section 15000 et seq.) ("CEQA Guidelines'), as the same may be amended from time to time. "gly" shall mean the City of Newport Beach, a California charter city. "City Council" shall mean the governing body of City. "City's Affiliated Parties" shall have the meaning ascribed in Section 10.1 of this Agreement. "Claim" shall have the meaning ascribed in Section 10.1 of this Agreement. "CPI Index" shall mean the Consumer Price Index published from time to time by the United States Department of Labor for all urban consumers (all items) for the smallest geographic area that includes the City or, if such index is discontinued, such other similar index as may be publicly available that is selected by City in its reasonable discretion. "Cure Period" shall have the meaning ascribed in Section 8.1 of this Agreement. "Default" shall have the meaning ascribed to that term in Section 8.1 of this Agreement. "Develop" or "Devel0ment" shall mean to improve or the improvement of the Property for the purpose of completing the structures, improvements, and facilities comprising the Project, including but not limited to: grading; the construction of infrastructure and public facilities related to the Project, whether located within or outside the Property; the construction of all of the private improvements and facilities comprising the Project; the preservation or restoration, as required of natural and man-made or altered open space areas; and the installation of landscaping. The terms "Develop" and "Development," as used herein, do not include the maintenance, repair, reconstruction, replacement, or redevelopment of any structure, improvement, or facility after the initial construction and completion thereof. "Development Agreement Ordinance" shall mean Chapter 15.45 of the City of Newport Beach Municipal Code. "Development Agreement Statute" shall mean California Government Code Sections 65864-65869.5, inclusive. "Development Exactions" shall mean any requirement of City in connection with or pursuant to any ordinance, resolution, rule, or official policy for the dedication of land, the construction or installation of any public improvement or facility, or the payment of any fee or charge in order to lessen, offset, mitigate, or compensate for the impacts of Development of the Project on the environment or other public interests. "Development Plan" shall mean the Newport Beach Planned CommunityDevelopment Plan No. PC2005-002 for the Property adopted by Ordinance No. 2012-2, Vesting Tentative Tract Map No. NT2005-003, Site Development Review No. SD2011-002 as approved by Resolution No. 2012-10 for the Property, Limited Term Permit No. XP2011-004, and AlOM773 v401.06.11 FINAL 15-131 Conversion of Development Rights as approved by City Council on or before the Agreement Date, as the same may be amended from time to time consistent with this Agreement. "Development Regulations" shall mean the following regulations as they are in effect as of the Agreement Date and to the extent they govern or regulate the development of the Property, but excluding any amendment or modification to the Development Regulations adopted, approved, or imposed after the Agreement Date that impairs or restricts Property Owner's rights set forth in this Agreement, unless such amendment or modification is expressly authorized by this Agreement or is agreed to by Property Owner in writing: the General Plan; the Development Plan; and, to the extent not expressly superseded by the Development Plan or this Agreement, all other land use and subdivision regulations governing the permitted uses, density and intensity of use, design, improvement, and construction standards and specifications, procedures for obtaining required City permits and approvals for development, and similar matters that may apply to development of the Project on the Property during the Tenn of this Agreement that are set forth in Title 15 of the Municipal Code (buildings and construction), Title 19 of the Municipal Code (subdivisions), and Title 20 of the Municipal Code (planning and zoning), but specifically excluding all other sections of the Municipal Code, including without limitation Title 5 of the Municipal Code (business licenses and regulations). Notwithstanding the foregoing, the term "Development Regulations," as used herein, does not include any City ordinance, resolution, code, rule, regulation or official policy governing any of the following: (i) the conduct of businesses, professions, and occupations; (ii) taxes and assessments; (iii) the control and abatement of nuisances; (iv) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; or (v) the exercise of the power of eminent domain. "Effective Date" shall mean the latest of the following dates, as applicable: (i) the date that is thirty (30) days after the Agreement Date; (ii) if a referendum concerning the Adopting Ordinance or any of the Development Regulations approved on or before the Agreement Date is timely qualified for the ballot and a referendum election is held concerning the Adopting Ordinance or any of such Development Regulations, the date on which the referendum is certified resulting in upholding and approving the Adopting Ordinance and such Development Regulations and becomes effective, if applicable; (iii) if a lawsuit is timely filed challenging the validity or legality of the Adopting Ordinance, this Agreement, and/or any of the Development Regulations approved on or before the Agreement Date, the date on which said challenge is finally resolved in favor of the validity or legality of the Adopting Ordinance, this Agreement, and/or the applicable Development Regulations, whether such finality is achieved by a final non - appealable judgment, voluntary or involuntary dismissal (and the passage of any time required to appeal an involuntary dismissal), or binding written settlement agreement; or (iv) the date of approval of a coastal development permit for the Project; (v) the date of or if a lawsuit is timely filed challenging the validity or legality of the approval of a coastal development permit for the Project, the date on which said challenge is finally resolved in favor of the validity or legality of the coastal development permit for the Project, whether such finality is achieved by a final non - appealable judgment, voluntary or involuntary dismissal (and the passage of any time required to appeal an involuntary dismissal), or binding written settlement agreement. Notwithstanding the foregoing, the Effective Date shall be no later than one hundred eighty (180) days from the Agreement Date. Promptly after the Effective Date occurs, the Parties agree to cooperate in causing an appropriate instrument to be executed and recorded against the Property memorializing the Effective Date. A10-00M v401.06.11 FINAL 4 15-132 "Environmental Laws" means all federal, state, regional, county, municipal, and local laws, statutes, ordinances, rules, and regulations which are in effect as of the Agreement Date, and all federal, state, regional, county, municipal, and local laws, statuies, rules, ordinances, rules, and regulations which may hereafter be enacted and which apply to the Property or any part thereof, pertaining to the use, generation, storage, disposal, release, treatment, or removal of any Hazardous Substances, including without limitation the following: the Comprehensive Environmental Response Compensation and Liability Act of 1980, 42 U.S.C. Sections 9601, et M., as amended ("CERCLA"); the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901, et seM.., as amended ("RCRA"); the Emergency Planning and Community Right to Know Act of 1986, 42 U.S.C. Sections 11001 et sep_, as amended; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., as amended; the Clean Air Act, 42 U.S.C. Sections 7401 et sea., as amended; the Clean Water Act, 33 U.S.C. Section 1251, et seq., as amended; the Toxic Substances Control Act, 15 U.S.C. Sections 2601 et sN., as amended; the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. Sections 136 et sQ., as amended; the Federal Safe Drinking Water Act, 42 U.S.C. Sections 300f et secs., as amended; the Federal Radon and Indoor Air Quality Research Act, 42 U.S.C. Sections 7401 et sea., as amended; the Occupational Safety and Health Act, 29 U.S.C. Sections 651 et sect., as amended; and California Health and Safety Code Section 25100, et sue. "General Plan" shall mean City's 2006 General Plan adopted by the City Council on July 25, 2006, by Resolution No. 2006-76, as amended through the Agreement Date but excluding any amendment after the Agreement Date that impairs or restricts Property Owner's rights set forth in this Agreement, unless such amendment is expressly authorized by this Agreement, is authorized by Sections 8 or 9, or is specifically agreed to by Property Owner. The Land Use Plan of the Land Use Element of the General Plan was approved by City voters in a general election on November 7, 2006. "Hazardous Substances" means any toxic substance or waste, pollutant, hazardous substance or waste, contaminant, special waste, industrial substance or waste, petroleum or petroleum -derived substance or waste, or any toxic or hazardous constituent or additive to or breakdown component from any such substance or waste, including without limitation any substance, waste, or material regulated under or defined as "hazardous" or "toxic" under any Environmental Law. "Mortgage" shall mean a mortgage, deed of trust, sale and leaseback arrangement, or any other form of conveyance in which the Property, or a part or interest in the Property, is pledged as security and contracted for in good faith and for fair value. "Mortgagee" shall mean the holder of a beneficial interest under a Mortgage or any successor or assignee of the Mortgagee. "Notice of Default" shall have the meaning ascribed in Section 8.1 of this Agreement. "ftart or "Parties" shall mean either City or Property Owner or both, as determined by the context. A10-00773 A 01.06.11 FINAL 15-133 "PIoicei" shalt mean all on -site and off -site improvements that Property Owner is authorized and/or may be required to construct with respect to each parcel of the Property, as nrnzrit�rui in 4slai� A mravrr,en+ rl o-l.., 71.,..,,1...-_.., n t - s o ,�,.,, _ _ :c:. c�iieu �w u•..v<,iu tzt%rat z�cbutatiolls, as lne same may be modufieo or amended from time to time consistent with this Agreement and applicable Iaw, "Property" is described in Exhibit A and generally depicted on Exhibit B as The Tennis_ Club, The Villas, and The Bungalows Sub -Areas shown on Exhibit B . "Property Owner" shall mean Golf Realty Fund, a California limited partnership and any successor or assignee, including lessees, to all or any portion of the right, title, and interest of Golf Realty fund in and to ownership of all or a portion of the Property. "Public Benefit Fee" shall have the meaning ascribed in Section 3.1 of this Agreement. "Subsequent Development Approvals" shall mean all discretionary development and building approvals that Property Owner is permitted to obtain to Develop the Project on and with respect to the Property after the Agreement Date consistent with the Development Regulations. "Term" shall have the meaning ascribed in Section 2.4 of this Agreement. "Termination Date" and "Lot Termination Date" shall have the meaning ascribed in Section 2.4 of this Agreement. "Transfer" shall have the meaning ascribed in Section l l of this Agreement. General Provisions. 2.1 Plan Consistency, Zoning Implementation. This Agreement and the Development Regulations applicable to the Property are consistent with the General Plan. 2.2 Binding Effect of Agreement. The Property is hereby made subject to this Agreement. Development of the Property is hereby authorized and shall be carried out in accordance with the terms of this Agreement. 2.3 Property Owner Representations and Warranties Regarding Ownership of the Property and Related Matters Pertaining to this Agreement Property Owner and each person executing this Agreement on behalf of Property Owner hereby represents and warrants to City as follows: (i) Property Owner or any co-owner comprising Property Owner is a legal entity and that such entity is duly formed and existing and is authorized to do business in the State of Califomia; (ii) if Property Owner or any co-owner 0 comprising Property Owner is a natural person that such natural person has the legal right and capacity to execute this Agreement; (iii) that all actions required to be taken by all persons and entities comprising Property Owner to enter into this Agreement have been taken and that .U0-00773 vA 01.06.11 FTNAL h 15-134 Property Owner has the legal authority to enter into this Agreement; (iv) that to the best of Property Owner's knowledge, Property Owner's entering into and performing its obligations set forth in this Agreement aril! not result in a violation of any obligation, contractual or otherwise, that Property Owner or any person or entity comprising Property Owner has to any third party; (v) that neither Property Owner nor any co-owner comprising Property Owner is the subject of any voluntary or involuntary petition in bankruptcy; and (vi) that to the best of Property Owner's knowledge, Property Owner has the authority and ability to enter into or perform any of its obligations set forth in this Agreement. 2.4 Term. The term of this Agreement (the "Term") shall commence on the Effective Date and shall terminate on the "Termination Date." Notwithstanding any other provision set forth in this Agreement to the contrary, if either Party reasonably determines that the Effective Date of this Agreement will not occur because (1) the Adopting Ordinance or any of the Development Regulations approved on or before the Agreement Date for the Project has/have been disapproved by City's voters at a referendum election or (ii) a final non -appealable judgment is entered in a judicial action challenging the validity or legality of the Adopting Ordinance, this Agreement, a coastal development permit for the Project and/or any of the Development Regulations for the Project approved on or before the Agreement Date such that this Agreement and/or any of such Development Regulations is/are invalid and unenforceable in whole or in such a substantial part that the judgment substantially impairs such Party's rights or substantially increases its obligations or risks hereunder or thereunder, then such Party shall have the right to terminate this Agreement upon delivery of a written notice of termination to the other Party, in which event neither Party shall have any further rights or obligations hereunder except that Property Owner's indemnity obligations set forth in Article 10 shall remain in full force and effect and shall be enforceable, and the Development Regulations applicable to the Project and the Property only (but not those general Development Regulations applicable to other properties in the City) shall similarly be null and void at such time. The Termination Date shall be the earliest of the following dates: (i) the tenth (loth) anniversary of the Effective Date, as said date may be extended in accordance with Section 5 of this Agreement; (ii) such earlier date that this Agreement may be terminated in accordance with Articles 5, 7, and/or Section 8.3 of this Agreement and/or Sections 65865.1 and/or 65868 of the Development Agreement Statute; (iii) as to any separate legal lot within the Property (but not as to the balance of the Property or the portion thereof that remains subject to this Agreement at such time), upon the "Lot Terinination Date" (defined below); or (iv) completion of the Project in accordance with the terms of this Agreement, including Property Owner's complete satisfaction, performance, and payment, as applicable, of all Development Exactions, the issuance of all required final occupancy permits, and acceptance by City or applicable public agency(ies) or private entity(ies) of all required offers of dedication. As used herein, the term "Lot Termination Date" for any separate legal lot within the Property means the date on which all of the following conditions have been satisfied with respect to said Iot: (i) the lot has been finally subdivided and sold or leased (for a period longer than one year), individually or in a "bulk" of four or fewer lots, to a member of the public or other AIO-00773 v401,06.11 FINAL 7 15-135 ultimata; user; (ii) a final Certificate of Occupancy or '-Reiease of Utilities" has been issued for the building or buildings approved for construction on said lot. Notwithstanding any other provision set forth in this Agreement to the contrary, the provisions set forth in Article 10 and Section 13.10 (as well as any other Property Owner obligations set forth in this Agreement that are expressly written to survive the Termination Date) shall survive the Termination Date of this Agreement. 3. Public Benefits. 3.1 Public Benefit Fee. As consideration for City's approval and performance of its obligations set forth in this Agreement, Property Owner shall pay to City a fee that shall be in addition to any other fee or charge to which the Property and the Project would otherwise be subject (herein, the "Public Benefit Fee") in the sum of (i) Ninety-three thousandDollars ($ 93,000per each residential dwelling units; and (ii) Ten dollars ($10) per square foot of construction for the proposed golf clubhouse'; and (iii) Ten dollars ($10) per square foot of construction to the proposed tennis clubhouse, with the unpaid balance of said Public Benefit Fee increased on the first January I following the Effective Date of this Agreement by the percentage increase in the CPI Index between the Effective Date and said January I" date (the first "Adjustment Date") and thereafter with the unpaid balance of said Public Benefit Fee increased on each subsequent January 1 during the Term of this Agreement (each, an "Adjustment Date") by the percentage increase in the CPI Index in the year prior to the applicable Adjustment Date. The amount of the percentage increase in the CPI Index on the applicable Adjustment Dates shall in each instance be calculated based on the then most recently available CPI Index figures such that, for example, if the Effective Date of this Agreement falls on July 1 and the most recently available CPI Index figure on the first Adjustment Date (January I of the following year) is the CPI Index for November of the preceding year, the percentage increase in the CPI Index for that partial year (a 6-month period) shall be calculated by comparing the CPI Index for November of the preceding year with the CPT Index for May of the preceding year (a 6-month period). In no event, however, shall application of the CPI Index reduce the amount of the Public Benefit Fee (or unpaid portion thereof) below the amount in effect prior to any applicable Adjustment Date. Property Owner shall pay the Public Benefit Fee at the following time(s): (i) As to the residential dwelling units, at the issuance of the building permit for each individual residential unit; and (ii) as to the golf clubhouse and tennis clubhouse construction, at the time each building permit is issued to Property Owner or on Property Owner's behalf. Notwithstanding any other provision set forth in this Agreement to the contrary, during the Term of this Agreement City shall not increase the Public Benefit Fee except pursuant to the CPI Index as stated in this Section 3.1. The Public Fee Benefit Fee shall be calculated based on the total square feet of construction for the proposed golf clubhouse and proposed tennis clubhouse Property Owner shall not be entitled to any credit or offset to the Public Benefit Fee for any existing buildings or structures. Property Owner The City has entered into a separate Development Agreement with The Newport Beach Country Club, Inc., Development Agreement No. 'Qp i (the "NBCC DA"), pertain. ng to the development of a golf clubhouse on the adjacent property. This requirement to pay a Public Benefit Fee for the construction of the golf clubhouse shall not apply to Property Owner, unless Property Owner itself, or its successors or assignees, is seeking issuance of permits for the construction of a golf clubhouse on the adjacent property. A 10-00773 0 01.06.1 1 FINAL 15-136 aclmowledges by its approval and execution of this Agreement that it is voluntarily agreeing to pay the Public Benefit Fee, that its obligation to pay the Public Benefit Fee is an essential term of this Apr PP_ment and is not ca���m� f.-..P.-. l�:a�.�.. t7:_.,,x� i n _ -,: �..:y s outt�dtlons and Property Owner's vesting .rights to be acquired hereunder, and that Property Owner expressly waives any constitutional, statutory, or common law right it might have in the absence of this Agreement to protest or challenge the payment of such fee on any ground whatsoever, including without limitation pursuant to the Fifth and Fourteenth Amendments to the United States Constitution, California Constitution Article I Section 19, the Mitigation Fee Act (California Government Code Section 66000 et seq.), or otherwise. In addition to any other remedy set forth in this Agreement for Property Owner's default, if Property Owner shall fail to timely pay any portion of the Public Benefit Fee when due City shall have the right to withhold issuance of any further building permits, occupancy permits, or other development or building permits for the Project. 3.2 Other Public Benefits. The development of the Project will include the addition of Visitor -Serving Uses consistent with the City's Coastal Land Use Plan and will provide a unique amenity for those visitors whose interests include tennis. It is anticipated that the Property will continue to host numerous events of significant social and economic benefit to the City, its citizens, businesses and charitable institutions. 4. Development of Project 4.1 Applicable Regulations; Property Owner's Vested Rights and City's Reservation of Discretion With Respect to Subsequent Development ApDrovals Other than as expressly set forth in this Agreement, during the Term of this Agreement, (i) Property Owner shall have the vested right to Develop the Project on and with respect to the Property in accordance with the terms of the Development Regulations and this Agreement and (ii) City shall not prohibit or prevent development of the Property on grounds inconsistent with the Development Regulations or this Agreement. Notwithstanding the foregoing, nothing herein is intended to limit or restrict City's discretion with respect to (i) review and approval requirements contained in the Development Regulations, (ii) exercise of any discretionary authority City retains under the Development Regulations, (iii) the approval, conditional approval, or denial of any Subsequent Development Approvals applied for by Property Owner., or that are required, for Development of the Project as of the Agreement Date provided that all such actions are consistent with the Development Regulations, or (iv) any environmental approvals that may be required under CEQA or any other federal or state law or regulation in conjunction with any Subsequent Development Approvals that may be required for the Project, and in this regard, as to future actions referred to in clauses (i)-(iv) of this sentence, City reserves its full discretion to the same extent City would have such discretion in the absence of this Agreement. In addition, it is understood and agreed that nothing in this Agreement is intended to vest Property Owner's rights with respect to any laws, regulations, rules, or official policies of any other governmental agency or public utility company with jurisdiction over the Property or the Project, or any applicable federal or state laws, regulations, rules, or official policies that may be inconsistent with this Agreement and that override or supersede the pro•risions set forth in this Agreement, and regardless of whether such overriding or superseding laws, regulations, rules, or n10-00773 ,,101.06a1 RNAL 9 15-137 official policies are adopted or applied to the Property or the Project prior or subsequent to the Agreement Date. Property Owner has expended and will continue to expend substantial amounts of time and money in the planning and entitlement process to permit Development of the Project in the future. Property Owner represents and City acknowledges that Property Owner would not make these expenditures without this Agreement, and that Property Owner is and will be making these expenditures in reasonable reliance upon obtaining vested rights to Develop the Project as set forth in this Agreement. Property Owner may apply to City for permits or approvals necessary to modify or amend the Development specified in the Development Regulations, provided that unless this Agreement also is amended, the request does not propose an increase in the maximum density, intensity, height, or size of proposed structures, or a change in use that generates more peak hour traffic or more daily traffic. In addition, Property Owner may apply to City for approval of minor amendments to existing tentative tract maps, tentative parcel maps, or associated conditions of approval, consistent with City of Newport Beach Municipal Code section 19.12.090. This Agreement does not constitute a promise or commitment by City to approve any such permit or approval, or to approve the same with or without any particular requirements or conditions, and City's discretion with respect to such matters shall be the same as it would be in the absence of this Agreement. 4.2 No Conflicting Enactments. Except to the extent City reserves its discretion as expressly set forth in this Agreement, during the Term of this Agreement City shall not apply to the Project or the Property any ordinance, policy, rule, regulation, or other measure relating to Development of the Project that is enacted or becomes effective after the Agreement Date to the extent it conflicts with this Agreement. This Section 4.2 shall not restrict City's ability to enact an ordinance, policy, rule, regulation, or other measure applicable to the Project pursuant to California Government Code Section 65866 consistent with the procedures specified in Section 4.3 of this Agreement. In Pardee Construction Co. v. City of Camarillo (1984) 37 Cal.3d 465, the California Supreme Court held that a construction company was not exempt from a city's growth control ordinance even though the city and construction company had entered into a consent judgment (tantamount to a contract under California law) establishing the company's vested rights to develop its property consistent with the zoning. The California Supreme Court reached this result because the consent judgment failed to address the timing of development. The Parties intend to avoid the result of the Pardee case by acknowledging and providing in this Agreement that Property Owner shall have the vested right to Develop the Project on and with respect to the Property at the rate, timing, and sequencing that Property Owner deems appropriate within the exercise of Property Owner's sole subjective business judgment, provided that such Development occurs in accordance with this Agreement and the Development Regulations, notwithstanding adoption by City's electorate of an initiative to the contrary after the Agreement Date. No City moratorium or other similar limitation relating to the rate, timing, or sequencing of the Development of all or any part of the Project and whether enacted by initiative or another method, affecting subdivision maps, building permits, occupancy certificates, or other entitlement to use, shall apply to the Project to the extent such moratorium or other similar limitation restricts Property Owner's .AIOM773 va 01-06.11 FPJAL 10 15-138 vested rights in this Agreement or otherwise conflicts with the express provisions of this Agreement. 4.3 Reservations of Authority. Notwithstanding any other provision set forth in this Agreement to the contrary, the laws, rules, regulations, and official policies set forth in this Section 4.3 shall apply to and govern the Development of the Project on and with respect to the Property. 4.3.1 Procedural Regulations. Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals, and any other matter of procedure shall apply to the Property, provided that such procedural regulations are adopted and applied City-wide or to all other properties similarly situated in City. 4.3.2 Processing and Permit Fees. City shall have the right to charge and Property Owner shall be required to pay all applicable processing and permit fees to cover the reasonable cost to City of processing and reviewing applications and plans for any required Subsequent Development Approvals, building permits, excavation and grading permits, encroachment permits, and the like, for performing necessary studies and reports in connection therewith, inspecting the work constructed or installed by or on behalf of Property Owner, and monitoring compliance with any requirements applicable to Development of the Project, all at the rates in effect at the time fees are due. 4.3.3 Consistent Future City Regulations. City ordinances, resolutions, regulations, and official policies governing Development which do not conflict with the Development Regulations, or with respect to such regulations that do conflict, where Property Owner has consented in writing to the regulations, shall apply to the Property. 4.3.4 Development Exactions Applicable to Property. During the Term of this Agreement, Property Owner shall be required to satisfy and pay all Development Exactions at the time performance or payment is due to the same extent and in the same amount(s) that would apply to Property Owner and the Project in the absence of this Agreement; provided, however, that to the extent the scope and extent of a particular Development Exaction (excluding any development impact fee) for the Project has been established and fixed by City in the conditions of approval for any of the Development Regulations approved on or before the Agreement Date, City shall not alter, increase, or modify said Development Exaction in a manner that is inconsistent with such Development Regulations without Property Owner's prior written consent or as may be otherwise required pursuant to overriding federal or state laws or regulations (Section 4.3.5 hereinbelow). In addition, nothing in this Agreement is intended or shall be deemed to vest Property Owner against the obligation to pay any of the following (which are not included within the definition of "Development Exactions") in the full amount that would apply in the absence of this Agreement: (i) City's normal fees for processing, environmental assessment and review, tentative tract and parcel map review, plan checking, site review and approval, administrative review, building permit, grading permit, inspection, and similar fees imposed to recover City's costs associated with processing, reviewing, and inspecting project applications, plans, and specifications; (ii) fees and charges levied by any other public agency, utility, district, or joint powers authority, regardless of whether City collects those fees and charges; or (iii) community facility district special taxes or special district assessments or similar A 10-00773 c4 0 L06.11 FINAL I I 15-139 assessments, business license fees, builds or other security required for public improvements, transient occupancy taxes, sales taxes, property taxes, sewer lateral connection fees, water CPiVTC'e r_.gnn ctinn fps new water meter fad " at.., - �, uiev �,�::v},iicy IUA PdydDle Llnoer Chapter 3.12 of City's Municipal Code. 4.3.5 Overriding Federal and State Laws and Regulations. Federal and state laws and regulations that override Property Owner's vested rights set forth in this Agreement shall apply to the Property, together with any City ordinances, resolutions, regulations, and official policies that are necessary to enable City to comply with the provisions of any such overriding federal or state laws and regulations, provided that (i) Property Owner does not waive its right to challenge or contest the validity of any such purportedly overriding federal, state, or City law or regulation; and (ii) upon the discovery of any such overriding federal, state, or City law or regulation that prevents or precludes compliance with any provision of this Agreement, City or Property Owner shall provide to the other Party a written notice identifying the federal, state, or City law or regulation, together with a copy of the law or regulation and a brief written statement of the conflict(s) between that law or regulation and the provisions of this Agreement. Promptly thereafter City and Property Owner shall meet and confer in good faith in a reasonable attempt to determine whether a modification or suspension of this Agreement, in whole or in part, is necessary to comply with such overriding federal, state, or City Iaw or regulation. In such negotiations, City and Property Owner agree to preserve the terms of this Agreement and the rights of Property Owner as derived from this Agreement to the maximum feasible extent while resolving the conflict. City agrees to cooperate with Property Owner at no cost to City in resolving the conflict in a manner which minimizes any financial impact of the conflict upon Property Owner. City also agrees to process in a prompt manner Property Owner's proposed changes to this Agreement, the Project and any of the Development Regulations as may be necessary to comply with such overriding federal, state, or City law or regulation; provided, however, that the approval of such changes by City shall be subject to the discretion of City, consistent with this Agreement. 4.3.6 Public Health and Safety. Any City ordinance, resolution, rule, regulation, program, or official policy that is necessary to protect persons on the Property or in the immediate vicinity from conditions dangerous to their health or safety, as reasonably determined by City, shall apply to the Property, even though the application of the ordinance, resolution, rule regulation, program, or official policy would result in the impairment of Property Owner's vested rights under this Agreement. 4.3.7 Uniform Building Standards. Existing and future building and building - related standards set forth in the uniform codes adopted and amended by City from time to time, including building, plumbing, mechanical, electrical, housing, swimming pool, and fire codes, and any modifications and amendments thereof shall all apply to the Project and the Property to the same extent that the same would apply in the absence of this Agreement. 4.3.8 Public Works Improvements. To the extent Property Owner constructs or installs any public improvements, works, or facilities, the City standards in effect for such public improvements, works, or facilities at the time of City's issuance of a permit, license, or other authorization for constn3ction or installation of same shall apply. A10-00773 A 01.06.11 FINAL 1 ! 15-140 4.3.9 No Guarantee or Reservation of Utility Capacity. Notwithstanding any other provision set forth in this Agreement to the contrary, nothing in this Agreement is intended nr zhnll lie lnfnmrnf� to ,-cr+„:ro 0 4" do .. a.... . r_ " , -- --- ,1 ...,. .� ;..,,.. .._--.7 11. on_fltaLILe t,, vs rc5ci'i� tv U1 Aux UJU UCr1C11t Uf r oDe-i-LV Owner or the Property any utility capacity, service, or facilities that may be needed to serve the Project, whether domestic or reclaimed water service, sanitary sewer transmission or wastewater treatment capacity, downstream drainage capacity, or otherwise, and City shall have the right to limit or restrict Development of the Project if and to the extent that City reasonably determines that inadequate utility capacity exists to adequately serve the Project at the time Development is scheduled to commence. 4.4 Tentative Subdivision Maps City agrees that Property Owner may file and process new and existing vesting tentative maps for the Property consistent with California Government Code sections 66498.1-66498.9 and City of Newport Beach Municipal Code chapter 19.20. Pursuant to the applicable provision of the California Subdivision Map Act (California Government Code section 66452.6(a)), the life of any tentative subdivision map approved for the Property, whether designated a "vesting tentative map" or otherwise, shall be extended for the Term of this Agreement. 5. Amendment or Cancellation of Agreement Other than modifications of this Agreement under Section 8.3 of this Agreement, this Agreement may be amended or canceled in whole or in part only by mutual written and executed consent of the Parties in compliance with California Government Code section 65868 and City of Newport Beach Municipal Code section 15.45.060 or by unilateral termination by City in the event of an uncured default of Property Owner. 6. Enforcement. Unless this Agreement is amended, canceled, modified, or suspended as authorized herein or pursuant to California Government Code section 65869.5, this Agreement shall be enforceable by either Party despite any change in any applicable general or specific plan, zoning, subdivision, or building regulation or other applicable ordinance or regulation adopted by City (including by City's electorate) that purports to apply to any or all of the Property_ 7. Annual Review of Property Owner's Compliance With Agreement 7.1 General. City shall review this Agreement once during every twelve (12) month period following the Effective .Date for compliance with the terms of this Agreement as provided in Government Code Section 65865.1. Property Owner (including any successor to the Property Owner executing this Agreement on or before the Agreement Date) shall pay City a reasonable fee in an amount City may reasonably establish from time to time to cover the actual and necessary costs for the annual review. City's failure to timely provide or conduct an annual review shall not constitute a Default hereunder by City. T2 Property Owner Obligation to Demonstrate Good Faith Compliance AIM0773 A 01.06.11 FINAL 13 15-141 During each annual review by City, Property Owner is required to demonstrate good faith compliance with the terms of the Agreement. Property Owner agrees to furnish such evidence of o-t, tic Y• b wa. n .inuj`,cevsevt. .n .'ILY, rn tt3�+ l�.[t3LJ11aUle eXel-16C :it ii5 e:ati.CLULrora, may reG_uire, thirty (30) days prior to each anniversary of the Effective Date during the Term. 7.3 Procedure. The City Council of City shall conduct a duly noticed hearing and shall determine, on the basis of substantial evidence, whether or not Property Owner has, for the period under review, complied with the terms of this Agreement. If the City Council finds that Property Owner has so complied, the annual review shall be concluded. If the City Council finds, on the basis of substantial evidence, that Property Owner has not so complied, written notice shall be sent to Property Owner by first class mail of the City Council's finding of non-compliance, and Property Owner shall be given at least ten (10) days to cure any noncompliance that relates to the payment of money and thirty (30) days to cure any other type of noncompliance. If a cure not relating to the payment of money cannot be completed within thirty (30) days for reasons which are beyond the control of Property Owner, Property Owner must commence the cure within such thirty (30) days and diligently pursue such cure to completion. If Property Owner fails to cure such noncompliance within the time(s) set forth above, such failure shall be considered to be a Default and City shall be entitled to exercise the remedies set forth in Article 8 below. 7.4 Annual Review a Non -Exclusive Means for Determining and Requiring Cure of Property Owner's Default. The annual review procedures set forth in this Article 7 shall not be the exclusive means for City to identify a Default by Property Owner or limit City's rights or remedies for any such Default. Events of Default. 8.1 General Provisions. In the event of any material default, breach, or violation of the terms of this Agreement ("Default"), the Party alleging a Default shall have the right to deliver a written notice (each, a "Notice of Default") to the defaulting Party. The Notice of Default shall specify the nature of the alleged Default and a reasonable manner and sufficient period of time (ten (10) days if the Default relates to the failure to timely make a monetary payment due hereunder and not less than thirty (30) days in the event of non -monetary Defaults) in which the Default must be cured (the "Cure Period"). During the Cure Period, the Party charged shall not be considered in Default for - the purposes of termination of this Agreement or institution of legal proceedings. if the alleged Default is cured within the Cure Period, then the Default thereafter shall be deemed not to exist. If a non -monetary Default cannot be cured during the Cure Period with the exercise of commercially reasonable diligence, the defaulting Party must promptly commence to cure as quickly as possible, and in no event later than thirty (30) days after it receives the Notice of Default, and thereafter diligently pursue said cure to completion. 8.2 Default by Property Owner. A I OJJ0773 A 01.06.11 FINA L 14 15-142 If Property Owner is aiieged to have committed a non -monetary Default and it disputes the claimed Default, it may make a written .request for an appeal hearing before the City Council tart4iAin fen ki j y Ys --- -0 ii`-118 ilie -4-1- 01 '�JG1s` uu, and a public nearing snail lie scheduled ai the next available City Council meeting to consider Property Owner's appeal of the Notice of Default. Failure to appeal a Notice of Default to the City Council within the ten (10) day period shall waive any right to a hearing on the claimed Default. if Property Owner's appeal of the Notice of Default is timely and in good faith but after a public hearing of Property Owner's appeal the City Council concludes that Property Owner is in Default as alleged in the Notice of Default, the accrual date for commencement of the thirty (30) day Cure Period provided in Section 8.1 shall be extended until the City Council's denial of Property Owner's appeal is communicated to Property Owner. 8.3 City's Option to Terminate Agreement In the event of an alleged Property Owner Default, City may not terminate this Agreement without first delivering a written Notice of Default and providing Property Owner with the opportunity to cure the Default within the Cure Period, as provided in Section 8.1, and complying with Section 8.2 if Property Owner timely appeals any Notice of Default with respect to a non -monetary Default. A termination of this Agreement by City shall be valid only if good cause exists and is supported by evidence presented to the City Council at or in connection with a duly noticed public hearing to establish the existence of a Default. The validity of any termination may be judicially challenged by Property Owner. Any such judicial challenge must be brought within thirty (30) days of service on Property Owner, by first class mail, postage prepaid, of written notice of termination by City or a written notice of City's determination of an appeal of the Notice of Default as provided in Section 8.2. It is the intention of the Parties that, while the City Council may declare a default and initiate termination of this Agreement on the basis of substantial evidence in the administrative record, if the declaration of default is contested in court, the court will review the default claim de novo and base its decision on whether the preponderance of evidence supports the City Council's finding of breach. 8.4 Default by City. If Property Owner alleges a City Default and alleges that the City has not cured the Default within the Cure Period, Property Owner may pursue any equitable remedy available to it under this Agreement, including, without limitation, an action for a writ of mandamus, injunctive relief, or specific performance of City's obligations set forth in this Agreement. Upon a City Default, any resulting delays in Property Owner's performance hereunder shall neither be a Property Owner Default nor constitute grounds for termination or cancellation of this Agreement by City and shall, at Property Owner's option (and provided Property Owner delivers written notice to City within thirty (30) days of the commencement of the alleged City Default), extend the Terra for a period equal to the length of the delay. 8.5 Waiver. Failure or delay by either Party in delivering a Notice of Default shall not waive that Party's right to deliver a future Notice of Default of the same or any other Default. 8.6 Specific Performmance Remedy A10-00773 „401,06.11 FINAL 15 15-143 Due to the size, nature, and scope of the Project, it will not be practical or possible to restore the Property to its pre-existing condition once implementation of this Agreement has bcguri. r"aacr sueh implumeniailon, both Property Owner and Citymay ha foreclosed 1 �. a,, from other choices they may have had to plan for the development of the Property, to utilize the Property or provide for other benefits and alternatives. Property Owner and City have invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement. It is not possible to determine the sum of money which would adequately compensate Property Owner or City for such efforts. For the above reasons, City and Property Owner agree that damages would not be an adequate remedy if either City or Property Owner fails to carry out its obligations under this Agreement. Therefore, specific performance of this Agreement is necessary to compensate Property Owner if City fails to carry out its obligations under this Agreement or to compensate City if Property Owner falls to carry out its obligations under this Agreement. 8.7 Monetary Damages_ The Parties agree that monetary damages shall not be an available remedy for either Party for a Default hereunder by the other Party; provided, however, that (i) nothing in this Section 8.7 is intended or shall be interpreted to limit or restrict City's right to recover the Public Benefit Fees due from Property Owner as set forth herein; and (ii) nothing in this Section 8.7 is intended or shall be interpreted to limit or restrict Property Owner's indemnity obligations set forth in Article 10 or the right of the prevailing Party in any Action to recover its litigation expenses, as set forth in Section 8.10. 8.8 Additional City Remedy for Property Owner's Default in the event of any Default by Property Owner, in addition to any other remedies which may be available to City, whether legal or equitable, City shall be entitled to receive and retain any Development Exactions applicable to the Project or the Property, including any fees, grants, dedications, or improvements to public property which it may have received prior to Property Owner's Default without recourse from Property Owner or its successors or assigns. 8.9 No Personal Liability of City Officials Employees or Agents No City official, employee, or agent shall have any personal Iiability hereunder for a Default by City of any of its obligations set forth in this Agreement. 8.10 Recovery of Legal Expenses by Prevailing Party in Any Action In any judicial proceeding, arbitration, or mediation (collectively, an "Action") between the Parties that seeks to enforce the provisions of this Agreement or arises out of this Agreement, the prevailing Party shall recover all of its actual and reasonable costs and expenses, regardless of whether they would be recoverable under California Code of Civil Procedure section 1033.5 or California Civil Code section 1717 in the absence of this Agreement. These costs and expenses include expert witness fees, attorneys' fees, and costs of investigation and preparation before initiation of the Action. The right to recover these costs and expenses shall accrue upon initiation of the Action, regardless of whether the Action is prosecuted to a final judgment or decision. A 10-00773 v4 01.06.1 1 FTNAI. 16 15-144 9. Force Majeure. Neither Party shall be deemed to be in Default where failure or delay in performance of any of its obligations under this Agreement is caused, through no fault of the Party whose performance is prevented or delayed, by floods, earthquakes, other acts of God, fires, wars, riots or similar hostilities, strikes or other labor difficulties, state or federal regulations, or court actions. Except as specified above, nonperformance shall not be excused because of the act or omission of a third person. In no event shall the occurrence of an event of force majeure operate to extend the Term of this Agreement. In addition, in no event shall the time for performance of a monetary obligation, including without limitation Property Owner's obligation to pay Public Benefit Fees, be extended pursuant to this Section. 10. Indemnity Obligations of Property Owner. 10.1 Indemnity Arising From Acts or Omissions of Property Owner. Property Owner shall indemnify, defend, and hold harmless City and City's officials, employees, agents, attorneys, and contractors (collectively, the "City's Affiliated Parties") from and against all suits, claims, liabilities, losses, damages, penalties, obligations, and expenses (including but not limited to attorneys' fees and costs) (collectively, a "Claim") that may arise, directly or indirectly, from the acts, omissions, or operations of PropertyOwner or Property Owner's agents, contractors, subcontractors, agents, or employees in the course of Development of the Project or any other activities of Property Owner relating to the Property or pursuant to this Agreement. City shall have the right to select and retain counsel to defend any Claim filed against City and/or any of City's Affiliated Parties, and Property Owner shall pay the reasonable cost for defense of any Claim. The indemnity provisions in this Section 10.1 shall commence on the Agreement Date, regardless of whether the Effective Date occurs, and shall survive the Termination Date. 10.2 Third Party Litigation. In addition to its indemnity obligations set forth in Section 10.1, Property Owner shall indemnify, defend, and hold harmless City and City's Affiliated Parties from and against any Claim against City or City's Affiliated Parties seeking to attack, set aside, void, or annul the approval of this Agreement, the Adopting Ordinance, any of the Development Regulations for the Project (including without limitation any actions taken pursuant to CEQA with respect thereto), any Subsequent Development Approval, or the approval of any permit granted pursuant to this Agreement. Said indemnity obligation shall include payment of attorney's fees, expert witness fees, and court costs. City shall promptly notify Property Owner of any such Claim and City shall cooperate with Property Owner in the defense of such Claim. If City fails to promptly notify Property Owner of such Claim, Property Owner shall not be responsible to indemnify, defend, and hold City harmless from such Claim until Property Owner is so notified and if City fails to cooperate in the defense of a Claim Property Owner shall not be responsible to defend, indemnify, and hold harmless City during the period that City so fails to cooperate or for any losses attributable thereto. City shall be entitled to retain separate counsel to represent City against the Claim and the City's defense costs for its separate counsel shall be included in Property Owner's indemnity obligation, provided that such counsel shall reasonably cooperate with Property Owner in an effort to minimize the total litigation expenses incurred by Property A10-00"3 A 01.06.11 FINAL 17 15-145 Owner. In the event either City or Property Owner recovers any attorney's fees, expert witness fees, costs, interest, or other amounts from the party or parties asserting the Claim, Property lam.._.._- _ 1 /1 1 9 vw►xei Shall be enddud to retain the same ( provided it has Bally nertbr-red its indemnity obligations hereunder). The indemnity provisions in this Section 10.2 shall commence on the Agreement Date, regardless of whether the Effective Date occurs, and shall survive the Termination Date. 10.3 Environmental Indemnity. In addition to its indemnity obligations set forth in Section 10.1, from and after die Agreement Date Property Owner shall indemnify, defend, and hold harmless City and City's Affiliated Parties from and against any and all Claims for personal injury or death, property damage, economic loss, statutory penalties or fines, and damages of any kind or nature whatsoever, including without limitation attorney's fees, expert witness fees, and costs, based upon or arising from any of the following: (i) the actual or alleged presence of any Hazardous Substance on or under any of the Property in violation of any applicable Environmental Law; (ii) the actual or alleged migration of any Hazardous Substance from the Property through the soils or groundwater to a location or locations off of the Property; and (iii) the storage, handling, transport, or disposal of any Hazardous Substance on, to, or from the Property and any other area disturbed, graded, or developed by Property Owner in connection with Property Owner's Development of the Project. The foregoing indemnity obligations shall not apply to any Hazardous Substance placed or stored on a separate legal lot within the Property after the Lot Termination Date for said lot, as provided in Section 2.4 of this Agreement. The indemnity - provisions in this Section 10.3 shall commence on the Agreement Date, regardless of whether the Effective Date occurs, and shall survive the Termination Date, 11. Assignment. Property Owner shall have the right to sell, transfer, or assign (hereinafter, collectively, a "Transfer") Property Owner's fee interest in to the Property, in whole or in part, to any person, partnership, joint venture, firm, or corporation (which successor, as of the effective date of the Transfer, shall become the "Property Owner" under this Agreement) at any time from the Agreement Date until the Termination Date; provided, however, that no such Transfer shall violate the provisions of the Subdivision Map Act (Government Code Section 66410 et seq.) or City's local subdivision ordinance and any such Transfer shall include the assignment and assumption of Property Owner's rights, duties, and obligations set forth in or arising under this Agreement as to the Property or the portion thereof so Transferred and shall be made in strict compliance with the following conditions precedent: (i) no transfer or assignment of any of Property Owner's rights or interest under this Agreement shall be made unless made together with the Transfer of all or a part of the Property; and (ii) prior to the effective date of any proposed Transfer, Property Owner (as transferor) shall notify City, in writing, of such proposed Transfer and deliver to City a written assignment and assurnption, executed in recordable form by the transferring and successor Property Owner and in a form subject to the reasonable approval of the City Attorney of City (or designee), pursuant to which the transferring Property Owner assigns to the successor Property Owner and the successor Property Owner assumes from the transferring Property Owner all of the rights and obligations of the transferring Property Owner with respect to the Property or portion thereof to be so Transferred, including in the case of a partial Transfer the obligation to perform such obligations that must be performed off of the A10-00773 v401.06.11 FINAL 18 15-146 portion of the Property so 'Transferred that are a condition precedent to the successor Property Owner's right to develop the portion of the Property so Transferred. Notwithstanding any Transfer, the transferring Property Owner shall continue to be jointly and severally liable to City, together with the successor Property Owner, to perform all of the transferred obligations set forth in or arising under this Agreement unless the transferring Property Owner is given a release in writing by City, which release shall be only with respect to the portion of the Property so Transferred in the event of a partial Transfer. City shall provide such a release upon the transferring Property Owner's full satisfaction of all of the following conditions: (i) the transferring Property Owner no longer has a legal or equitable interest in the portion of the Property so Transferred other than as a beneficiary under a deed of trust; (ii) the transferring Property Owner is not then in Default under this Agreement and no condition exists that with the passage of time or the giving of notice, or both, would constitute a Default hereunder, (iii) the transferring Property Owner has provided City with the notice and the fully executed written and recordable assignment and assumption agreement required as set forth in the first paragraph of this Section 11; and (iv) the successor Property Owner either (A) provides City with substitute security equivalent to any security previously provided by the transferring Property Owner to City to secure performance of the successor Property Owner's obligations hereunder with respect to the Property or the portion of the Property so Transferred or (B) if the transferred obligation in question is not a secured obligation, the successor Property Owner either provides security reasonably satisfactory to City or otherwise demonstrates to City's reasonable satisfaction that the successor Property Owner has the financial resources or commitments available to perform the transferred obligation at the time and in the manner required under this Agreement and the Development Regulations for the Project. 12. Mortgagee Rights. 12.1 Encumbrances on Property.. The Parties agree that this Agreement shall not prevent or limit Property Owner in any manner from encumbering the Property, any part of the Property, or any improvements on the Property with any Mortgage securing financing with respect to the construction, development, use, or operation of the Project. 12.2 Mortgagee Protection. This Agreement shall be superior and senior to the lien of any Mortgage. Nevertheless, no breach of this Agreement shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good faith and for value. Any acquisition or acceptance of title or any right or interest in the Property or part of the Property by a Mortgagee (whether due to foreclosure, trustee's sale, deed in lieu of foreclosure, lease termination, or otherwise) shall be subject to all of the terms and conditions of this Agreement. Any Mortgagee who takes title to the Property or any part of the Property shall be entitled to the benefits arising under this Agreement. 12.3 Mortgagee Not Obligated. Notwithstanding the provisions of this Section 12.3, a Mortgagee will not have any obligation or duty under the terms of this Agreement to perform the obligations of Property Owner or other affirmative covenants of Property Owner, or to guarantee this pertormance A10-00773 va 01,06.11 FINAL 19 15-147 except that: (i) tilc Mortgagee small have no right to develop the Project under the Development Regulations without fully complying with the terms of this Agreement; and (ii) to the extent that anri covenant to DP a e r1, t o 2naa2� _ J13-Y —v ilia iS a vatuiii VII Lv WU i-L LviIii alicu oI a v by City, that performance shall continue to be a condition precedent to City's performance. 12.4 Notice of Default to Mortgage!,-,, Right of Mortgagee to Cure Each Mortgagee shall, upon written request to City, be entitled to receive written notice from City of: (i) the results of the periodic review of compliance specified in Article 7 of this Agreement, and (H) any default by Property Owner of its obligations set forth in this Agreement. Each Mortgagee shall have a further right, but not an obligation, to cure the Default within ten (10) days after receiving a Notice of Default with respect to a monetary Default and within thirty (30) days after receiving a Notice of Default with respect to a non -monetary Default. If the Mortgagee can only remedy or cur a non -monetary Default by obtaining possession of the Property, Chen the Mortgagee shall have the right to seek to obtain possession with diligence and continuity through a receiver or otherwise, and to remedy or cure the non - monetary Default within thirty (30) days after obtaining possession and, except in case of emergency or to protect the public health or safety, City may not exercise any of its judicial remedies set forth in this Agreement to terminate or substantially alter the rights of the Mortgagee until expiration of the thirty (30)-day period. In the case of a non -monetary Default that cannot with diligence be remedied or cured within thirty (30) days, the Mortgagee shall have additional time as is reasonably necessary to remedy or cure the Default, provided the Mortgagee promptly commences to cure the non -monetary Default within thirty (30) days and diligently prosecutes the cure to completion. AIO-00773 va 01.06.11 FFNAL 20 15-148 13. Miscellaneous Terms. 13.1 Notices. .Any notice or demand that shall be required or permitted by law or any provision of this Agreement shall be in writing. If the notice or demand will be served upon a Party, it either shall be personally delivered to the Party; deposited in the United States avail, certified, return receipt requested, and postage prepaid; or delivered by a reliable courier service that provides a receipt showing date and time of delivery with courier charges prepaid. The notice or demand shall be addressed as follows: TO CITY: City of Newport Beach 3300 Newport Boulevard Post Office Box 1768 Newport Beach, California 92663-3884 Attn: City Manager With a copy to: City Attorney City of Newport Beach 3300 Newport Boulevard Post Office Box 1768 Newport Beach, California 92663-3884 TO PROPERTY OWNER: Golf Realty Fund One Upper Newport Plaza Newport Beach, California 92660 Attn: Robert O Hill With a copy to: Tim Paone Cox Castle & Nicholson, LLP 19800 MacArthur Blvd., Suite 500 Irvine, CA. 92612 Either Party may change the address stated in this Section 13.1 by delivering notice to the Other Party in the manner provided in this Section 13.1, and thereafter notices to such Party shall be addressed and submitted to the new address_ Notices delivered in accordance with this Agreement shall be deemed to be delivered upon the earlier of: (i) the date received or (iii) three business days after deposit in the mail as provided above. 13.2 Private Undertaking. Any future Development of the Project is a private undertaking. Neither Party will be acting as the agent of the other in any respect, and each Party will be an independent contracting entity with respect to the teams, covenants, and conditions set forth in this Agreement. This Agreement forms no partnership, joint venture, or other association of any kind. The only relationship between the Parties is that of a government entity regulating the Development of private property by the owner or user of the Property. A10-007-13 A01.06.11 RNAL 21 15-149 13.3 Cooperation. Each Party shall cooperate. with and pro -ode reasonable assistance to the o+cr Part- to y the extent consistent with and necessary to implement this Agreement. Upon the request of a Party at any time, the other Party shall promptly execute, with acknowledgement or affidavit if reasonably required, and file or record the required instruments and writings and take any actions as may be reasonably necessary to implement this Agreement or to evidence or consummate the transactions contemplated by this Agreement. 13.4 Estoppel Certificates. At any time, either Party may deliver written notice to the other Party requesting that that Party certify in writing that, to the best of its knowledge: (i) this Agreement is in full force and effect and is binding on the Party; (ii) this Agreement has not been amended or modified either orally or in writing or, if this Agreement has been amended, the Party providing the certification shall identify the amendments or modifications; and (iii) the requesting Party is not in Default in the performance of its obligations under this Agreement and no event or situation has occurred that with the passage of time or the giving of Notice or both would constitute a Default or, if such is not the case, then the other Party shall describe the nature and amount of the actual or prospective Default. The Party requested to furnish an estoppel certificate shall execute and return the certificate within thirty (30) days following receipt. Requests for the City to furnish an estoppel certificate shall include reimbursement for all administrative costs incurred by the City including reasonable attorneys fees incurred by the City in furnishing an estoppels certificate. 13.5 Rules of Construction. The singular includes the plural; the masculine and neuter include the feminine; "shall" is mandatory; and "may" is permissive. 13.6 Time Is of the Essence. Time is of the essence regarding each provision of this Agreement as to which time is an element. 13.7 Waiver. The failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, and failure by a Party to exercise its rights upon a Default by the other Party, shall not constitute a waiver of that Party's right to demand strict compliance by the other Party in the future. 13.8 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be identical and may be introduced in evidence or used for any other purpose without any other counterpart, but all of which shall together constitute one and the same agreement. AIO-00773 v401.06.11 FMAL 22 15-150 13.9 Eniire Agreement. T11i.s Aor(,e.mf-n (,nnsifivtaf6- on g- tra �ArnentivaU1 Supers -3es ttl prior agreements and understandings, both written and oral, between the Parties with respect to the subject matter addressed in this Agreement. 13.10 Severability. The Parties intend that each and every obligation of the Parties is interdependent and interrelated with the other, and if any provision of this Agreement or the application of the provision to any Party or circumstances shall be held invalid or unenforceable to any extent, it is the intention of the Parties that the remainder of this Agreement or the application of the provision to persons or circumstances shall be rendered invalid or unenforceable. The Parties intend that neither Party shall receive any of the benefits of the Agreement without the full performance by such Party of all of its obligations provided for under this Agreement. Without limiting the generality of the foregoing, the Parties intend that Property Owner shall not receive any of the benefits of this Agreement if any of Property Owner's obligations are rendered void or unenforceable as the result of any third party litigation, and City shall be free to exercise its legislative discretion to amend or repeal the Development Regulations applicable to the Property and Property Owner shall cooperate as required, despite this Agreement, should third party litigation result in the nonperformance of Property Owner's obligations under this Agreement. The provisions of this Section 13.10 shall apply regardless of whether the Effective Date occurs and after the Termination Date. 13.11 Construction. This Agreement has been drafted after negotiation and revision. Both City and Property Owner are sophisticated parties who were represented by independent counsel throughout the negotiations or City and Property Owner had the opportunity to be so represented and voluntarily chose to not be so represented. City and Property Owner each agree and acknowledge that the terms of this Agreement are fair and reasonable, taking into account their respective purposes, terms, and conditions. This Agreement shall therefore be construed as a whole consistent with its fair meaning and applicable principle or presumptions of contract construction or interpretation, if any, shall be used to construe the whole or any part of this Agreement in favor of or against either Party. 13.12 Successors and Assigns, Construcrive Notice and Acceptance The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to Development of the Property: (i) is for the benefit of and is a burden upon every portion of the Property, (ii) runs with the Property and each portion thereof, and (iii) is binding upon each Party and each successor in interest during its ownership of the Property or any portion thereof. Every person or entity who now or later owns or acquires any right, title, or interest in any part of the Project or the Property is and shall be conclusively deemed to have consented and agreed to every provision of this Agreement. This Section 13.12 applies regardless of whether the instrument by AIO.00773 A 01.06.I 1 HNAL 23 15-151 which such person or entity acquires the interest refers to or acknowledges this Agreement and regardless of whether such person or entity has expressly entered into an assignment and assumption agreement as provided for ii--i Section 1 I. 13.13 No Third Party Beneficiaries The only Parties to this Agreement are City and Property Owner. This Agreement does not involve any third party beneficiaries, and it is not intended and shall not be construed to benefit or be enforceable by any other person or entity. 13.14 Applicable Law and Venue. This Agreement shall be construed and enforced consistent with the internal laws of the State of California, without regard to conflicts of law principles. Any action at law or in equity arising under this Agreement or brought by any Party for the purpose of enforcing, construing, or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, or the United States District Court for the Central District of California. The Parties waive all provisions of law providing for the removal or change of venue to any other court. 13.15 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect construction or interpretation of this Agreement. 13.16 Ineomoration of Recitals and Exhibits All of the Recitals are incorporated into this Agreement by this reference. Exhibits A and B are attached to this Agreement and incorporated by this reference as follows: EXHIBIT I DESCRIPTION DESIGNATION A I Legal Description of Property B I Depiction of the Property I 13.17 Recordation. The City Clerk of City shall record this Agreement and any amendment, modification, or cancellation of this Agreement in the Office of the County Recorder of the County of Orange within the period required by California Government Code section 65868.5 and City of Newport Beach Municipal Code section 15.45.090. The date of recordation of this Agreement shall not modify or amend the Effective Date or the Termination Date. AIO-00773 vA 01.06.11 HNAL 24 15-152 SIGNATURE PAGE TO DEVELOPMENT AGREEMENT "PROPERTY OWNER" By: Its: By: Its: "CPIY„ ATTEST: City Clerk ROVED AS TO FORM: 12, Aaron Harp, City Attorney i A1MOM A 01.06.11 FINAL 25 a CITY OF NE --ORTBEAG By: -- Its: Mayor 15-153 STATE OF CALIFORNIA COUNTY OF ORANGE On NO V 1 �-I , 2 C, 1'> , before me, PV N 010L VE -/ , a NotaryPublic in and for said State, personally appeared Na v -t L\-lNiL3 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. JENNIfEA aNfr4 Mt1LVEY Commission # 2045022 Notary Public - California i Orange County No Pubc in and fo My Comm. Ex ires 0012, 2017+ said and State 1 ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF ORANGE On , before me , a Notary Public in and for said State, 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. Notary Public in and for said County and State 15-154 SIGNATURE PAGE TO %E y EI..,OPIVIE1w 1 AGREENviEN "PROPERTY OWNER" By: Its: By: Its: «Cilly„ CITY OF NEWPORT BEACH By: Its: Mayor ATTEST: City Clerk ROVED AS TO FORM: Lv on Harp, City Attomey 7 12, A10-00773 va 01.06.11 RNAL 25 15-155 STATE OF CALIFORNIA CGUt3TY OF GRANGE On I j 1 4-1 i _C) i -4- ,before me,a Notary Public in and for said State, personally appeared F--o gE n--t- V rt t I who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/aFe subscribed to the within instrument and acknowledged to me that helshetdmy�executed the same in hWhw/their authorized capacity(40, and that by his/her/their signatures(() on the instrument the person(s), or the entity upon behalf of which the person(&) 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, SHANE THOMAS JOHNS" Commission # 1991314 i ' a Notary Public - Ca5fornia z Orange County > My Comm. Expires Sep 16, 2016 Notary Public in and for said County and State ACKNONVLEUGNIENT STATE OF CALIFORNIA COUNTY OF ORANGE On , before me, , a Notary Public in and for said State, 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. Notary Public in and for said County and State 15-156 EXHIBIT A LEGAL UESi:RI fION OF PROPERTY. The Property: Parcel I and Parcel 2 of Parcel Map 94-102, in the City of Newport Beach, County of Orange, State of California, as per Map filed in Book 316, Pages 3 to 6, inclusive, of Parcel Maps, in the office of the County Recorder of Orange County. A 10-00773 v4 01.06.11 1.7NAL 15-157 m:I1.0 10 6, DEPICTION OF PROPERTY TO BE INSERTED A10.007n r40LKIIFRaL Paea 15-158 THE VILLAS THE BUNGAL EXHIBIT B DEPICTION OF PROPERY MASTER PLAN -THE TENNIS CLUB - Sub•Aiea I new stadium court Tennis Clubhouse • THE VILLAS - Sub Area 5 single family homes • THE BUNGALOWS Sub Area 27 guest rental units • THE GOLF CLUB • Sub Area NOT A PART THE INIS CLUB 71 NBCC Planned Community s t e a m s LXHIBIT ARC HITEC URE I OF 1 15-159 Attachment F City Council Staff Report, Dated September 27, 2022 15-160 September 27, 2022 Agenda Item No. 15 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: David Lee, Associate Planner, dlee@newportbeachca.gov PHONE: 949-644-3225 TITLE: Ordinance Nos. 2022-19 and 2022-20: Tennis Club at Newport Beach Project Amendment (PA2021-260) ABSTRACT: The applicant requests an amendment to the approved Tennis Club at Newport Beach project to 1) increase the number of future tennis courts from seven to eight courts; 2) increase the number of future hotel rooms from 27 to 41 rooms; 3) increase the gross floor area of the ancillary hotel uses by 4,686 square feet; and 4) provide three attached condominium units and two detached single-family residences in -lieu of five detached single-family residences. The request also includes a 10-year term extension to the approved project's development agreement to ensure the orderly development of the property and certain public benefits to the City of Newport Beach (City). For the City Council's consideration is the adoption of three resolutions for environmental clearance and planning applications for the project, and the introduction of two ordinances to amend the Newport Beach Country Club Planned Community Development Plan and approval of a second amendment to the approved project's development agreement. If approved, the item will return to the City Council on October 11, 2022, for the second reading and adoption of the two ordinances. The requested local coastal program amendment (Title 21 Amendment) will not become effective until approval by the California Coastal Commission (CCC) and adoption. RECOMMENDATION: a) Conduct a public hearing; b) Adopt Resolution No. 2022-65, A Resolution of the City Council of the City of Newport Beach, California, Adopting an Addendum to Mitigated Negative Declaration No. ND2010-008 for the Tennis Club at Newport Beach Located at 1602 East Coast Highway; 15-161 c) Adopt Resolution No. 2022-66, A Resolution of the City Council of the City of Newport Beach, California, Approving a General Plan Amendment, Amendment to Major Site Development Review No. SD2011-002, Amendment to Coastal Development Permit No. CD2017-039, Amendment to Vesting Tentative Tract Map No. NT2005-003, and Amendment to Limited Term Permit No. XP2011-004 for the Tennis Club at Newport Beach Located at 1602 East Coast Highway (PA2021-260); d) Adopt Resolution No. 2022-67, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Submittal of Local Coastal Program Amendment to the California Coastal Commission to Amend the Newport Beach Country Club Planned Community Development Plan (PC-47) for the Tennis Club Located at 1602 East Coast Highway (PA2021-260); e) Waive full reading, direct the City Clerk to read by title only, and introduce Ordinance No. 2022-19, An Ordinance of the City Council of the City of Newport Beach, California, Approving an Amendment to the Newport Beach Country Club Planned Community Development Plan (PC-47) for the Tennis Club at Newport Beach Located at 1602 East Coast Highway, and pass on to second reading on October 11, 2022; and f) Waive full reading, direct the City Clerk to read by title only, and introduce Ordinance No. 2022-20, An Ordinance of the City Council of the City of Newport Beach, California, Approving the Second Amendment to the Development Agreement (DA2008-001) for the Tennis Club at Newport Beach Located at 1602 East Coast Highway (PA2021-260), and pass on to second reading on October 11, 2022. DISCUSSION: The subject property is approximately seven acres in size and presently improved with a private tennis club consisting of a 3,725-square-foot tennis clubhouse, 14 tennis courts, 32 pickle ball courts, and a 125-space surface parking lot. The subject property is located adjacent to the Newport Beach Country Club golf course and is west of the Corporate Plaza West Planned Community, which consists of several office buildings. The site is also located directly south of the Granville residential community. On March 27, 2012, the City Council approved land use entitlements and executed a 10-year term development agreement (DA) to allow the redevelopment of the tennis club site into three distinct components: 1) Tennis Club — Reconstruct the existing 3,725-square-foot tennis clubhouse, and reduce the total number of tennis courts from 24 to seven courts, including one lighted stadium court; 2) Hotel (Bungalows) - Construct a 27-room boutique hotel with ancillary uses consisting of a spa and fitness center and a concierge guest center; and 3) Residential (Villas) - Construct five detached single-family residences. 15-162 The project described above (Approved Project) has not been implemented to date and continues to operate as a private tennis club, with pickleball courts being introduced in 2019. On June 28, 2022, the City Council approved the first amendment to the DA previously approved in 2012, which authorized the extension of the DA by one year. This provided City staff additional time to review an amendment to the Approved Project that was submitted by the applicant on November 2, 2021. Since the proposed project involves a Local Coastal Program Amendment requiring subsequent approval by the California Coastal Commission (CCC), if the CCC does not approve the amendment, the entire application would not become effective. Project Description The applicant is requesting an amendment to the Approved Project to add one tennis court for a total of eight tennis courts, to add 14 hotel units for a total of 41 hotel units with additional ancillary uses, and to allow three of five single-family residential units to be converted to condominiums (Proposed Project). The applicant's project description and project plans are available online at https://ecms.newportbeachca.gov/\Neb/O/fol/2834530/Rowl.aspx Table 1 below provides a summary of the Approved Project comparing it to the Proposed Project. Table 1 — Proiect Comparison Use Approved Project Proposed Project Tennis Clubhouse (3,725 sq. ft.) No Change 7 Tennis Courts 8 Tennis Courts (+1) Hotel 27 Hotel Rooms 41 Hotel Rooms (+14) Concierge Center (2,200 sq. ft.) No Change Spa/Fitness Center (7,500 sq. ft.) No Change +4,686 sq. ft. of Ancillary Uses Performance Therapy (+852 sq. ft.), Yoga Pavilion (+633 sq. ft.), Administrative Office (+2,620 sq. ft.), Common Area (+581 sq. ft.) Residential 5 Detached Single -Family 2 Detached Single -Family Residences Residences 3 Attached Condominiums 15-163 General Plan The subject property has a General Plan Land Use designation of Mixed -Use Horizontal 3/Parks and Recreation (MU-H3/PR). The Mixed Use Horizontal 3 designation on the subject site provides for the horizontal intermixing of regional commercial office, hotel, single-family and multi -family residential, and ancillary commercial uses. The PR designation applies to land used or proposed for active public or private recreational use. Permitted uses include parks (both active and passive), golf courses, marina support facilities, aquatic facilities, tennis clubs and courts, private recreation, and similar facilities. The project site is designated as Anomaly No. 46 by the existing Land Use Element, which limits development intensity to 3,725 square feet for a tennis club building and 24 tennis courts at the subject property. Residential use is also permitted in Anomaly No. 46 in accordance with MU-H3/PR designation. As part of the Approved Project, the City Council authorized the conversion of 17 tennis courts to 27 hotel rooms on a traffic neutral basis. Since the Approved Project did not include a General Plan Amendment, the conversion did not change Anomaly No. 46. The applicant seeks no changes to the General Plan designations, but rather requests to increase the number of hotel rooms from 27 to 41 rooms and the number of tennis courts from seven to eight courts. The subject property would remain Mixed -Use Horizontal 3/Parks and Recreation (MU-H3/PR). The Proposed Project is consistent with the MU-H3/PR designation as it includes a mix of land uses including single-family residential, attached residential condominiums, recreational tennis club facilities, and visitor -serving commercial uses. These uses are permitted as stated above. A complete consistency analysis of each of the applicable General Plan policies is provided in the attached Draft Resolution (Attachment B) and included in Table 5-12 of the Land Use and Planning Section of the Mitigated Negative Declaration Addendum. Charter Section 423 (Measure S) Pursuant to City Charter Section 423 and Council Policy A-18, an analysis must be prepared to establish whether a proposed General Plan Amendment (if approved) requires a vote by the electorate. Charter Section 423 requires voter approval of any major amendment to the General Plan. A major General Plan amendment is one that significantly increases allowed density or intensity by 40,000 square feet of non- residential floor area or increases traffic by more than 100 peak hour vehicle trips (AM/PM) or increases residential dwelling units by 100 units. These thresholds apply to the total of increases resulting from the amendment itself, plus 80 percent of the increases resulting from other amendments affecting the same neighborhood (defined as a Statistical Area as shown in the General Plan Land Use Element) and adopted within the preceding 10 years. 15-164 The subject property is within Statistical Area L1. Only 14 hotel rooms are required to be analyzed for Charter Section 423 since the 27 hotel rooms have been previously converted from the 17 tennis courts. The proposed GPA results in an increase of 14,000 square feet (1,000 square feet per hotel room), 9.51 AM trips, and 12.42 PM trips based on the most recent ITE trip rates pursuant to City Council Policy A-18. Prior amendments within the past 10 years are the Vivante Senior Housing and Residences at Newport Center projects. Charter Section 423 requires consideration of 80 percent of prior increases, which results in a cumulative increase of 94 dwelling units, 23 AM trips, and 43 PM trips between both projects. There were no nonresidential gross square footage increases with these two prior amendments. When combined with 80 percent of the prior amendment increases, this results in cumulative increases of 14,000 square feet, 32.51 AM trips, and 55.42 PM trips. As a result, no vote of the electorate is required should the City Council choose to approve the General Plan Amendment. Local Coastal Program The proposed amendment to the Local Coastal Program Implementation Plan (Title 21) is consistent with the Coastal Land Use Plan (CLUP), which designates the property as MU-H/PR (Mixed Use Horizontal/Parks and Recreation). This designation allows a horizontally distributed mix of uses, which may include general or neighborhood commercial, commercial offices, multi -family residential, visitor -servicing and marine - related uses, buildings that vertically integrate residential with commercial uses, and active public or private recreational uses, including parks, golf courses, marina support facilities, aquatic facilities, tennis clubs and courts, private recreation, and similar facilities. The Proposed Project is a request to increase existing uses which have been previously permitted. The project includes a mixture of uses which include a tennis club and eight tennis courts, a 41-unit hotel development and ancillary uses, and five residential units. All of these uses are intended to provide an updated recreational facility to serve the residents and visitors of the city. Additionally, the amendment is consistent with the applicable land use policies of the CLUP, as provided in the attached draft resolution. Therefore, an amendment to the CLUP is not necessary. Title 21 includes specific development standards for the Approved Project. As a result, an amendment to Title 21 is necessary to revise the development standards listed in Section 21.26.055.S, which specifically refers to the Newport Beach Country Club Planned Community (PC-47) development standards of the "Tennis Club", "The Villas", and "The Bungalows." The following amendments are proposed: 1. The amendment increases the density and intensity limit for the number of tennis courts from seven to eight courts. The addition of the tennis court increases the minimum required parking from 28 spaces to 32 spaces (four spaces per court). 2. The amendment converts three of the five single-family residences to attached residential condominium units. Therefore, the amendment revises the density and intensity limit for the Villas from five to two single-family residences and removes previous development standards for three single-family residences referred to as Villas C, D and E. 15-165 3. The amendment includes new development standards for attached residential condominiums, which have a density limit of three units and maximum gross floor area of 15,035 square feet. The maximum height allowed for the condominium buildings is 50 feet. The buildings are required to be set back five feet from any property line. The remaining single-family residences require a minimum of two enclosed parking spaces and one guest parking space per unit, while the proposed attached condominiums require a minimum of three enclosed parking spaces and one guest parking space per unit. 4. The amendment revises the density and intensity limits for the bungalows from 27 to 41 short-term guest rental rooms. Additionally, the maximum allowable gross floor area increases from 28,300 to 47,484 square feet, and square footage for ancillary hotel uses are included. A minimum of one space per hotel unit is required. Planned Community Development Plan Amendment In 2012, the City Council adopted NBCC Planned Community Development Plan (PC-47) for the subject site as part of the Approved Project that also includes the adjacent Newport Beach Country Club golf course site. All proposed changes as part of the Proposed Project are limited to the tennis club property and do not apply to the golf club. The Proposed Project is consistent with the intent and purpose of PC-47 in that the tennis club, hotel, and residential uses and their development standards have already been allowed and are in place on the tennis club site. The proposed changes are minor adjustments to the building height, setbacks, and parking standards in order to accommodate the Proposed Project. Additionally, PC-47 provides guidelines for architectural design to include coordinated and cohesive architecture which exhibits quality that is in keeping with the surrounding area in Newport Center. The Proposed Project includes additional hotel rooms and two attached residential condominium loft buildings. The proposed additions are designed to be compatible with the approved architectural design of the Approved Project. PC-47 permits structures to be a maximum of 50 feet in height. The Proposed Project includes two attached residential condominium loft buildings and additional hotel rooms to be at a maximum of 46 feet high and comply with the height limit. Site Development Review On January 24, 2012, the City Council approved Site Development Review No. SD2011- 002, which authorized construction of the Approved Project. The proposed changes to the Approved Project necessitate an amendment to the approved Site Development Review. The proposed development complies with all Site Development Review criteria specified in PC-47 to provide a coordinated, cohesive and comprehensive large-scale planning project. The Approved Project features a distinct and cohesive architectural style (Figure 2), and includes landscaping components, signage and circulation design, which are compatible with the character of the neighboring uses and surrounding sites. 15-166 The additional 14 hotel rooms and attached residential condominium buildings are designed to be of similar architectural style, which includes smooth plaster exterior siding, clay tile roofs, and stone veneer exterior accent finishes. As a result, the Proposed Project is compatible with the Approved Project, and is not detrimental to the orderly and harmonious development of the surroundings and of the city. The Proposed Project promotes additional functionality between residential and hotel components, as residential condominiums are attached to hotel units in two separate loft buildings. Underground parking is provided in the loft buildings, with additional street parking and parking lots to serve hotel and tennis club guests. Each of the two single- family residences provide a two -car garage to serve its residents. The project has been designed to include a surplus of 40 spaces beyond what is required. The development is designed to maximize aesthetic quality as viewed from surrounding properties. The property is separated from East Coast Highway by a commercial office plaza which is comprised of three two-story office buildings at 1200 Newport Center Drive. The office plaza includes landscaping along East Coast Highway with trees and various plantings. The Newport Beach Country Club golf clubhouse is located approximately 150 feet west of the property. The development's multiple components (tennis club, residential, and hotel) have been designed and sited to function cohesively, not only with each other, but also with the adjacent golf course uses and surrounding development. Coastal Development Permit The subject property is located within the Coastal Zone. Therefore, the Proposed Project requires a coastal development permit. The Proposed Project is consistent with the Coastal Land Use Plan, which designates the site as Mixed -Use Horizontal/Parks and Recreation (MU-H/PR). The MU-H land use designation of the Coastal Land Use Plan allows the horizontal intermixing of hotel units, single-family residences, attached residential condominiums, and tennis club facilities on the project site. Additionally, the MU-H designation identifies a maximum density/intensity limit of 1.5 floor area ratio (FAR), with a minimum FAR of 0.25 and a maximum FAR of 0.5 for retail uses and a maximum of 1.0 for residential. The project proposes 65,595 square feet of nonresidential floor area (approximately 0.21 FAR) for the hotel rooms, concierge & guest center, and ancillary hotel uses which include a performance therapy center, yoga pavilion, office, common area, and a spa and fitness center. The five residential dwelling units total 20,653 square feet (approximately 0.06 FAR). The proposed density/intensity of the hotel and residential units comply with the FAR limitations identified in the Coastal Land Use Plan. The PR coastal land use designation applies to land used or proposed for active public or private recreational use. Permitted uses include parks (both active and passive), golf courses, marina support facilities, aquatic facilities, tennis clubs and courts, private recreation, and similar facilities. The PR designation on this site is applicable to the existing and proposed private tennis club and tennis courts. 15-167 The density/intensity limitations include incidental buildings, such as maintenance equipment sheds, supply storage, and restrooms, not included in determining intensity limits. The proposed tennis club and ancillary uses are consistent with this land use designation. The property is not located between the nearest public road and the sea or shoreline and will not affect the public's ability to gain access to, use or view the coast and nearby recreational facilities. Coastal Land Use Plan, Policy 4.4.1-6 and Figure 4-3 (Coastal Views) identify the closest public view road as Newport Center Drive, located approximately 170 feet east of the project site and the closest public viewpoint as Irvine Terrace Park, located 525 feet south of the project site. Coastal views from these view corridors and viewpoints are directed toward Newport Bay and the Pacific Ocean. Since the project site is located to the north of Irvine Terrace Park, the Proposed Project will not affect coastal views due to its orientation. From Newport Center Drive, there is a zero to 40-foot grade difference to the project area below. An analysis of the fiscal and economic Impacts was prepared on August 29, 2022, by Kosmont Companies to analyze the construction of new visitor accommodations in the coastal zone in accordance with the requirements of Section 21.48.025 (Local Coastal Program Implementation Plan, Standards for Specific Land Uses, Visitor Accommodations) of the NBMC. The report provides a feasibility analysis stating that the anticipated average daily room (ADR) rate for all 41 rooms is approximately $920 and the statewide average daily room rate is $205.69. Because the anticipated ADR will well exceed the statewide average, the proposed accommodations are not considered lower cost accommodations. The report considers the specific location of the property as an inappropriate location for low-cost accommodations. Additionally, low-cost accommodations are not feasible due to prohibitive land and construction costs. The property does not currently provide accommodations of any kind and implementation of the Project would not directly impact low-cost accommodations. While the Project would not include any lower cost accommodations, the Local Coastal Program Implementation Plan would identify the Project as generating an impact simply by not providing lower - cost accommodations. There is no impact on the provision of lower -cost visitor accommodations in the Coastal Zone as creating lower cost accommodations at the site is infeasible and there is no nexus to an actual impact; therefore, no mitigation is required. The Project features larger guest facilities with bedrooms, separate living rooms with sofa beds, and many rooms with kitchens. These features will accommodate more occupants per room, which lowers the costs per occupant. Tentative Vesting Tract Map On January 24, 2012, the City Council approved a Vesting Tentative Tract Map, which authorized the creation of separate lots for five single-family residences, 27 hotel rooms, and lettered lots for common areas and a private street. The applicant proposes an amendment to the vesting tentative tract map to accommodate the Proposed Project. 15-168 The amended map reflects the combination of two previously divided lots, which results in the elimination of one lot. These two lots were intended for two detached -single family residences. The map has also been modified to include residential condominium portion of the Proposed Project. All construction for the project has been conditioned to comply with all Building, Public Works, and Fire Codes, which are in place to prevent serious public health problems. The Public Works Department has reviewed the proposed revisions to the approved vesting tentative tract map and determined it is consistent with the Newport Beach Subdivision Code (Title 19) and applicable requirements of the Subdivision Map Act. Limited Term Permit The applicant is requesting a limited term permit (LTP) to allow two temporary modular trailers and portable toilets during construction. Both modular trailers are approximately 33 feet long and 13 feet wide. One modular trailer is proposed to be used as a construction office located at the southwest portion of the property and will be staged at this location through the entire duration of the Proposed Project, which is estimated to be approximately 20 months. The second modular office is proposed to be used as a temporary office for tennis club operations and will be located on the easterly portion of the property through the construction of the tennis clubhouse, which is estimated to be approximately 16 months. The portable toilets are proposed to serve the temporary tennis club office and located nearby. Development Agreement On March 27, 2012, the City Council approved a Development Agreement between the City and the Applicant for the Approved Project. The DA was executed and recorded, on January 29, 2014, with a 10-year term. The DA provides vested rights to develop the Approved project and the City negotiated public benefit fees of ninety-three thousand $93,000 per each residential dwelling unit and $10 per square foot of construction for the tennis clubhouse, for a grand total of $502,250. These fees are subject to annual adjustments, based on the CPI Index. On July 12, 2022, the City Council approved the First Amendment to the DA to extend the term of the agreement by one year. The DA will expire on September 23, 2023. In accordance with Section 15.45.020.A.2.c (Development Agreement Required) of the NBMC, a reconsideration of the agreement is required as the Proposed Project, which includes an amendment to PC-47 and a General Plan Amendment to increase the number of hotel rooms from 27 to 41 rooms, which is new non-residential development in Statistical Area L1 (Newport Center/Fashion Island). The applicant requests an additional 10-year term of agreement (Second Amendment), pursuant to Section 15.45.070 (Amendment/Cancellation). The Second Amendment provides assurance that the applicant may proceed with the Proposed Project in accordance with existing policies, rules and regulations, and conditions of approval. 15-169 Additionally, the Second Amendment to the DA helps the applicant avoid a waste of resources and escalated costs of the Proposed Project while encouraging a commitment to private participation in comprehensive planning. The Second Amendment (Attachment E) also specifies the updated permitted uses, density and intensity, and maximum height and size of proposed buildings, consistent with the Proposed Project. Additionally, the Second Amendment to the Agreement includes all mandatory elements, including public benefits that are appropriate to support conveying the vested development rights consistent with the City's General Plan, NBMC, and Government Code Sections 65864 et seq. No changes to the public benefit fees are proposed. A more complete summary and analysis of the Proposed Project and related entitlement findings can be found in the attached September 8, 2022 Planning Commission staff report (Attachment F). Planning Commission Review and Recommendation The Planning Commission held a public hearing on September 8, 2022. The main topics discussed by the Planning Commission were confirmation of the applicant's request to maintain the existing private tennis club with tennis courts, the City's process for conversion of tennis courts to pickleball courts, tennis club and pickleball club operations as they relate to occupancy, parking, traffic, and noise impacts to the surrounding uses, and level of details on the submitted plans for project approval. Nine members of the public addressed the Planning Commission regarding the Proposed Project. At the conclusion of the public hearing, the Planning Commission voted 5-0 (5 ayes, 1 absent, and 1 recused) to adopt Resolution No. PC2022-022, recommending the City Council approve the Proposed Project. The Planning Commission staff report, meeting minutes, and resolution are attached for reference as Attachments F, G and H. FISCAL IMPACT: The applicant is required to reimburse the City for all costs associated with the review of the application. The applicant has agreed to the terms of the draft Second Amendment stated above that requires the payment of $502,250 in addition to all required permit fees and development impact fees. ENVIRONMENTAL REVIEW: On March 27, 2012, the Newport Beach City Council approved Mitigated Negative Declaration No. ND2010-008 (SCH 2O10091052) and an Errata to Mitigated Negative Declaration No. ND2010-008 (together referred as WND") that addressed the potential environmental effects associated with the Approved Project. 15-170 Although the Project necessitates an amendment to the General Plan due to the increased number of hotel rooms and tennis courts, there are no proposed changes to the land uses permitted per the General Plan land use designation. Additionally, based on the changes associated with the Project, there are no conditions that would require the preparation of a subsequent or supplemental MND. As a result, an Addendum to the MND was prepared pursuant to Section 15162 (Subsequent EIRs and Negative Declarations) and 15164 (Addendum to an EIR or Negative Declaration) of the CEQA Guidelines. On the basis of the MND and entire environmental review record, the additional tennis court, hotel rooms, ancillary hotel uses, and conversion of three (3) single-family residences to condominium units will not result in any new significant impacts that were not previously analyzed in the MND. The Addendum confirms and provides substantial evidence that the potential impacts associated with this Proposed Project would either be the same or less than those described in the MND, or as mitigated by applicable mitigation measures in the MND. In addition, there are no substantial changes to the circumstances under which the Proposed Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the MND, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, an addendum to the previously adopted MND is the appropriate environmental document for the Proposed Project. In taking action to approve any of the requested applications for the Proposed Project, the data presented in the MND, as augmented by the Addendum for this Proposed Project, are considered as part of the record. 6,rot 11 rig l0rev Notice of this hearing was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights -of -way and waterways) including the applicant and posted on the subject property at least 10 days before the scheduled meeting, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. ATTACHMENTS: AttaGhmi en+i..Tt A Reseliutieni- No. 2022 65 Atta Ghh-rmen�/ +o-�s I i.�-rc-�Re� itinrazroni-rNo� 20z2-66 AttaGhmrrceRt�—Ftl2.`elit'"crvrni No. 2022 67 AttaGhmont D Orrd TnoN� (1� Q AttaGhmrre c E QrdiRaRGe Ne. 2022 20 Attachment F — Planning Commission Staff Report, Dated September 8, 2022 Attachment G — Planning Commission Minute Excerpts, Dated September 8, 2022 Attachment H —Planning Commission Resolution No. PC2022-022 15-171 Attachment F Planning Commission Staff Report, Dated September 8, 2022 (without attachments) 15-172 PO cgL'FOP- SUBJECT: CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT September 8, 2022 Agenda Item No. 3 Tennis Club at Newport Beach Project Amendment (PA2021-260) ■ General Plan Amendment ■ Local Coastal Land Use Plan Amendment ■ Planned Community Development Plan Amendment ■ Major Site Development Review Amendment (SD2011-002) ■ Coastal Development Permit Amendment (CD2017-039) ■ Vesting Tentative Tract Map Amendment (NT2005-003) ■ Limited Term Permit Amendment (XP2011-004) ■ Development Agreement Amendment (DA2008-001) ■ Addendum to Mitigated Negative Declaration (ND2010-008) SITE 1602 East Coast Highway LOCATION: APPLICANT: Robert O' Hill (Golf Realty Fund, Managing Owner) OWNER: Dba NBCC L & I PLANNER: David Lee, Associate Planner 949-644-3225 or dlee@newportbeachca.gov PROJECT SUMMARY The applicant requests an amendment to the approved Tennis Club at Newport Beach project to 1) increase the number of future tennis courts from seven (7) to eight (8) courts, 2) increase the number of future hotel rooms from 27 to 41 rooms, 3) increase the gross floor area of the ancillary hotel uses by 4,686 square feet, and 4) provide three (3) attached condominium units and two (2) detached single-family residences in -lieu of five (5) detached single-family residences. The request also includes a 10-year term extension to the approve project's Development Agreement to ensure the orderly development of the property and certain public benefits to the City. RECOMMENDATION 1) Conduct a public hearing; 2) Find that the Proposed Project will not result in any new significant impacts that were not previously analyzed in the adopted Mitigated Negative Declaration No. ND2010- 008 (SCH 2O10091052) for the Approved Project, and the addendum has been prepared to address reasonably foreseeable environmental impacts resulting from the Proposed Project; and 15-173 3) Adopt Resolution No. PC2022-022, recommending the City Council approval of PA2021-260, which includes adoption of a Mitigated Negative Declaration Addendum, and approval of a General Plan Amendment, Local Coastal Land Use Plan Amendment, Planned Community Development Plan Amendment, Major Site Development Review Amendment, Coastal Development Permit Amendment, Vesting Tentative Tract Map Amendment, Limited Term Permit Amendment, and Development Agreement Amendment for The Tennis Club at Newport Beach Project located at 1602 East Coast Highway. 15-174 VICINITY MAP - Granville Dr. A. TAO­ 41 Golf Course! ,��� ,. �' , °� �, �� �" Subject Property III Ft'�' •� �o� ae...^ � _ Oro o b4 '. � y 1 ' ♦ �. � fS I �� � ��. . 4' n^' �. 14 GENERAL PLAN ZONING % a f A ' a LOCATION GENERAL PLAN ZONING CURRENT USE MU-H3/PR (Mixed -Use ON -SITE Horizontal 3/Parks and PC-47 (Newport Beach Tennis Club Recreation Country Club) NORTH RM (Multiple Residential RM (Multiple Residential)] mily residences SOUTH CO-G (General PC-40 (Corporate Plaza Commercial Office West)Offices EAST =1 CO-G =F OG Office -General Offices WEST =1 PR 11 PC-47 Golf Club 15-175 INTRODUCTION Project Setting and Background The subject property is approximately seven (7) acres in size and presently improved with a private tennis club consisting of a 3,725-square-foot tennis clubhouse, 14 tennis courts, 32 pickle ball courts, and a 125-space surface parking lot. The subject property is located adjacent to the Newport Beach Country Club Golf Course and west of the Corporate Plaza West Planned Community, which consists of several office buildings. The site is also located directly south of the Granville residential community. On March 27, 2012, the City Council approved land use entitlements and executed a 10- year term development agreement (DA) to allow the redevelopment of the tennis club site into three distinct components: 1) Tennis Club — Reconstruct the existing 3,725-square-foot tennis clubhouse, and reduce the total number of tennis courts from 24 to seven (7) courts, including one lighted stadium court; 2) Hotel (Bungalows) - Construct a 27-room boutique hotel with ancillary uses consisting of a performance therapy center, yoga pavilion, hotel office, common area, and a spa and fitness center; and 3) Residential (Villas) - Construct five (5) detached single-family residences. Since the project site is located in the Coastal Zone, a coastal development permit (CDP) is required to implement the project. On April 10, 2013, the California Coastal Commission (CCC), which had permitting jurisdiction for Coastal Development Permits (CDP) at the time, issued a notice of intent to issue CDP No. 5-12-160 for the project. However, the CDP eventually expired without action. The City obtained CDP permitting authority in January of 2017, and on November 20, 2018, the City's Zoning Administrator approved a CDP authorizing the redevelopment of the tennis club consistent with the 2012 entitlements. The CDP is scheduled to expire on November 20, 2022, after receiving two, one-year time extensions. The project includes both the 2012 City Council and 2018 Zoning Administrator approvals (commonly referred to as "Approved Project"). 15-176 The exhibit below illustrates the proposed site plan for the Approved Project: The Approved Project has not been implemented to date and continues to operate as a private tennis club, with pickleball courts being introduced in 2019. On June 28, 2022, the City Council approved the first amendment to the DA previously approved in 2012, which authorized the extension of the DA by one year. This provided City Staff additional time to process an amendment to the Approved Project, which was submitted by the applicant on November 2, 2021. Project Description The applicant is requesting an amendment to the Approved Project to add one tennis court for a total of eight (8) tennis courts, 14 hotel rooms for a total of 41 hotel units with additional 15-177 ancillary uses, and to allow three (3) of five (5) single-family residential units to be converted to condominiums ("Proposed Project"). The following approvals are requested or required in order to implement the Proposed Project: • General Plan Amendment: An amendment to Anomaly No. 46 of Table LU2 of the 2006 Newport Beach General Plan Land Use Element to amend the allowable development limits for the tennis club site; • Local Coastal Program Implementation Plan Amendment: An amendment to Local Coastal Implementation Plan Section 21.26.055.S.2 (Tennis Club of Newport Beach Country Club Planned Community Coastal Zoning District Development Standards) to amend land use regulations for the tennis club site; • Planned Community Development Plan Amendment: An amendment to Planned Community Development Plan No. 47 (Newport Beach Country Club Planned Community) to amend land use regulations and development standards on the tennis club site; • Major Site Development Review: A site development review in accordance with Section 4.0 (Site Development Review) of Planned Community Development Plan No. 47 and NBMC Section 20.52.80 (Site Development Reviews) for the construction of the Proposed Project; • Coastal Development Permit: An amendment to Coastal Development Permit No. CD2017-039 for the demolition of existing structures, further subdivision on the tennis club site, and implementation of the Proposed Project; • Tentative Vesting Tract Map: An amendment to Tentative Vesting Tract Map pursuant to Title 19 of the Municipal Code to create separate lots for the tennis club site; • Limited Term Permit: A limited term permit to allow temporary use of structures during construction pursuant to Section 20.60.015 of the Municipal Code; • Development Agreement: A second amendment to the Development Agreement (DA2008-001), between the applicant and the City pursuant to Section 15.45 of the Municipal Code, which would provide vested right to develop the Proposed Project while also providing negotiated public benefits and extend the term of Agreement for an additional 10 (ten) years; and 15-178 • Addendum to the 2010 Mitigated Negative Declaration: Pursuant to the California Environmental Quality Act ("CEQA"), the addendum addresses reasonably foreseeable environmental impacts resulting from the proposed development. The Proposed Project does not increase the overall footprint of the Approved Project. The Proposed Project introduces two (2) new loft buildings, which includes a mixture of attached residential condominiums atop of two levels of hotel rooms and are a maximum height of 46 feet. The additional hotel amenities, which includes a hotel office, common area, performance therapy center, and yoga pavilion, are located within the first floor of one of the loft buildings (Bungalow Lofts). The remainder of the hotel rooms remain as bungalow -style buildings as previously envisioned and approved, have a maximum height of 31 feet, and are located throughout the project site. Parking is available for each component of the project, as there are multiple parking lots, street parking, and underground parking available for residents, the tennis club, and hotel guests. A total of 131 parking spaces are provided, where 91 spaces are required (Table 4, below). The Proposed Project features a distinct architectural style, which includes smooth plaster exterior siding, clay -tile roofs, and stone veneer exterior accent finishes that is compatible with the surrounding uses and area. The exhibit below illustrates the site plan for the Proposed Project: 15-179 The anticipated duration of construction of the Proposed Project is approximately 20 months, which will begin with the demolition of the existing tennis and pickleball courts and portion of the parking lot. Six (6) tennis courts are to be maintained for use during construction. The construction of the hotel rooms, tennis club house and stadium court will follow immediately and will be completed with the construction of the residential units. A Phasing Plan is included as part of the Project Plans and is attached to the Staff Report (Attachment No. PC 6). The property has an existing parking lot with two (2) entrances currently taken from Clubhouse Drive, which has a westerly outlet to East Coast Highway and an easterly outlet to Granville Drive and Newport Center Drive. During the various phases of construction, the easterly entrance to the parking lot will remain available to the public for parking and will provide direct access for the modular office trailer and portable toilets, while the westerly entrance will be for construction access only. A Construction 15-180 Management Plan is included as an attachment to the Staff Report (Attachment No. PC 4). Table 1 provides a summary of the Approved Project comparing it to the and the Proposed Project: Table 1 — Proiect Comparison Use Approved Project Proposed Project Tennis Clubhouse (3,725 sq. ft.) No Change 7 Tennis Courts 8 Tennis Courts (+1) Hotel 27 Hotel Rooms 41 Hotel Rooms (+14) Concierge Center (2,200 sq. ft.) No Change Spa/Fitness Center (7,500 sq. ft.) No Change +4,686 sq. ft. of Ancillary Uses Performance Therapy (+852 sq. ft.), Yoga Pavilion (+633 sq. ft.), Administrative Office (+2,620 sq. ft.), Common Area +581 sq. ft. Residential 5 Detached Single -Family 2 Detached Single -Family Residences Residences 3 Attached Condominiums DISCUSSION Analysis General Plan The subject property has a General Plan Land Use designation of Mixed -Use Horizontal 3/Parks and Recreation (MU-H3/PR). The Mixed Use Horizontal 3 designation on the subject site provides for the horizontal intermixing of regional commercial office, hotel, single-family and multi -family residential, and ancillary commercial uses. The PR designation applies to land used or proposed for active public or private recreational use. Permitted uses include parks (both active and passive), golf courses, marina support facilities, aquatic facilities, tennis clubs and courts, private recreation, and similar facilities. The project site is designated as Anomaly No. 46 by the existing Land Use Element, which limits development intensity to 3,725 square feet for a tennis club building and 24 tennis courts at the subject property. Residential use is also permitted in Anomaly No. 46 in accordance with MU-H3/PR designation. As part of the Approved Project, the City Council authorized the conversion of 17 tennis courts to 27 hotel rooms on a traffic neutral basis. Since the Approved Project did not include a General Plan Amendment, the conversion did not change Anomaly No. 46. 15-181 The applicant seeks no changes to the General Plan designations, but rather requests to increase the number of hotel rooms from 27 to 41 rooms (+14) and number of tennis courts from 7 to 8 courts (+1). The subject property would remain Mixed -Use Horizontal 3/Parks and Recreation (MU-H3/PR). The Proposed Project is consistent with the MU- H3/PR designation as it includes a mix of land uses including single-family residential, attached residential condominiums, recreational tennis club facilities, and visitor -serving commercial uses. These uses are permitted as stated above. A complete consistency analysis of each of the applicable General Plan policies is provided in the attached Draft Resolution (Attachment No. PC 1) and included in Table 5-12 of the Land Use and Planning Section of the Mitigated Negative Declaration Addendum. Charter Section 423 (Measure S) Pursuant to City Charter Section 423 and Council Policy A-18, an analysis must be prepared to establish whether a proposed General Plan Amendment (if approved) requires a vote by the electorate. Charter Section 423 requires voter approval of any major General Plan amendment to the General Plan. A major General Plan amendment is one that significantly increases allowed density or intensity by 40,000 square feet of non-residential floor area, or increases traffic by more than 100 peak hour vehicle trips (AM/PM) or increases residential dwelling units by 100 units. These thresholds apply to the total of increases resulting from the amendment itself, plus 80 percent of the increases resulting from other amendments affecting the same neighborhood (defined as a Statistical Area as shown in the General Plan Land Use Element) and adopted within the preceding ten years. The subject property is within Statistical Area L1. Only 14 hotel rooms are required to be analyzed for Charter Section 423 since the 27 hotel rooms have been previously converted from the 17 tennis courts. The proposed GPA results in an increase of 14,000 square feet (1,000 square feet per hotel room), 9.51 AM trips, and 12.42 PM trips based on the most recent ITE trip rates pursuant to City Council Policy A-18. Prior amendments within the past ten years are Vivante Senior Housing and Residences at Newport Center projects. Charter Section 423 requires consideration of 80 percent of prior increases, which results in a cumulative increase of 94 dwelling units, 23 AM trips, and 43 PM trips between both projects. There were no nonresidential gross square footage increases with these two prior amendments. When combined with 80 percent of the prior amendment increases, this results in cumulative increases of 14,000 square feet, 32.51 AM trips, and 55.42 PM trips. Table 2 below illustrates the calculations and none of the thresholds specified by Charter Section 423 are exceeded, therefore no vote of the electorate is required should the City Council choose to approve the General Plan Amendment. 15-182 Table 2 - Charter Section 423 Calculations Unit Floor area Trip rates AM trips PM Trips Tennis Clubhouse N/A N/A N/A Tennis Courts 1 court N/A 1.67/Court AM 3.88/Court PM 1.67 3.88 Hotel 14 rooms 14,0001 0.56 AM/room 0.61 PM/room 7.84 8.54 Total - Project N/A 14,000 N/A 9.51 12.42 Vote Required Project N/A No N/A No No 80% of Prior Amendments N/A 0 N/A 23 43 Total- Project + Prior Amendments N/A 14,000 N/A 32.51 55.42 Vote Required Project +Prior Amendments N/A No i N/A No No i Nursuant to Council Holicy A-18, each hotel room equals 1,000 square feet, so there is a 14,000 square toot increase. Upon approval of the project, the Proposed Project will be added to L1 Tracking Table as such: Project Name Date Amendment Square Dwelling AM Peak PM Peak Approved Description Footage Unit Hour Trip Hour Trip Change Chan a Change Change Vivante Senior 8/13/2019 Private Institutions (Reduction: 90 26 52 Housing (PI) to Mixed Use 45,028 to Horizontal (MU- 16,000) H3 Residences at 9/28/2021 Regional 0 28 3 2 Newport Center Commercial Office (CO-R) to Planned Community (PC- 61 Tennis Club at TBD 14 Hotel Rooms 14,000 0 9.51 12.42 Newport and 8 Tennis Beach Courts 100% Totals 14,000 118 38.51 66.42 80% Totals 11,200 94 30.80 53.14 Remaining 28,800 6 69.20 46.86 Capacity Without Vote Local Coastal Program The proposed amendment to the Local Coastal Program Implementation Plan (Title 21) is consistent with the Coastal Land Use Plan (CLUP), which designates the property as MU-H/PR (Mixed Use Horizontal/Parks and Recreation). This designation allows horizontally -distributed mix of uses, which may include general or neighborhood commercial, commercial offices, multi -family residential, visitor -servicing and marine - related uses, buildings that vertically integrate residential with commercial uses, and 15-183 active public or private recreational uses, including parks, golf courses, marina support facilities, aquatic facilities, tennis clubs and courts, private recreation, and similar facilities. The Proposed Project is a request to increase existing uses which have been previously permitted. The project includes a mixture of uses which include a tennis club and eight (8) tennis courts, a 41-unit hotel development and ancillary uses, and five (5) residential units. All of these uses are intended to provide an updated recreational facility to serve the residents and visitors of the City. Additionally, the amendment is consistent with applicable land use policies of the CLUP, as provided in the attached Draft Resolution. Therefore, an amendment to the CLUP is not necessary. Title 21 includes specific development standards for the Approved Project. As a result, an amendment to Title 21 is necessary to revise the development standards listed in Section 21.26.055.S, which specifically refers to the Newport Beach Country Club Planned Community (PC-47) development standards of the "Tennis Club", "The Villas", and "The Bungalows." The following amendments are proposed: 1. The amendment increases the density and intensity limit for the number of tennis courts from seven (7) to eight (8) courts. The addition of the tennis court increases the minimum required parking from 28 spaces to 32 spaces (4 spaces per court). There is no change to the 3,725-square-foot limit for the tennis clubhouse. 2. The number of residential units remains unchanged. However, the amendment converts three (3) of the five (5) single-family residences to attached residential condominium units. Therefore, the amendment revises the density and intensity limit for the Villas from five (5) to two (2) single family residences and removes previous development standards for three single family residences referred to as Villas C, D, and E. 3. The amendment includes new development standards for attached residential condominiums, which have a density limit of three (3) units and maximum gross floor area of 15,035 square feet. The maximum height allowed for the condominium buildings is 50 feet. The buildings are required to be set back five (5) feet from any property line. The remaining single-family residences require a minimum of two (2) enclosed parking spaces and one guest parking space per unit, while the proposed attached condominiums require a minimum of three (3) enclosed parking spaces and one guest parking space per unit. 4. The amendment revises the density and intensity limits for the bungalows from 27 to 41 short-term guest rental rooms. Additionally, the maximum allowable gross floor area increases from 28,300 to 47,484 square feet, and square footage for ancillary hotel uses are included. A minimum of one (1) space per hotel unit is required. 15-184 Planned Community Development Plan Amendment In 2012, the City Council adopted NBCC Planned Community Development Plan (PC-47) for the subject site as part of the Approved Project that also includes the adjacent Newport Beach Country Club Golf Course site. All proposed changes as part of the Proposed Project are limited to the Tennis Club property and do not apply to the Golf Club. The Proposed Project is consistent with the intent and purpose of PC-47 in that the tennis club, hotel, and residential uses and their development standards have already been allowed and is in place on the tennis club site. The proposed changes are minor adjustments to the building height, setbacks, and parking standards in order to accommodate the Proposed Project. Additionally, PC-47 provides guidelines for architectural design to include coordinated and cohesive architecture which exhibits quality that is keeping with the surrounding area in Newport Center. The Proposed Project includes additional hotel rooms and two (2) attached residential condominium loft buildings. The proposed additions are designed to be compatible with the approved architectural design of the Approved Project. PC-47 permits structures to be a maximum of 50 feet in height. The Proposed Project includes two (2) attached residential condominium loft buildings and additional hotel rooms to be at a maximum of 46 feet high and comply with the height limit. Site Development Review On January 24, 2012, the City Council approved Site Development Review No. SD2011- 002, which authorized construction of the Approved Project. The proposed changes to the Approved Project, necessitate an amendment to the approved Site Development Review. In accordance with Section 4.0 of PC-47 (Site Development Review), the following findings and facts in support of such findings are set forth: 1. The development shall be in compliance with all other provisions of the Planned Community District Plan; 2. The development shall be compatible with the character of the neighboring uses and surrounding sites and shall not be detrimental to the orderly and harmonious development of the surroundings and of the City; 3. The development shall be sited and designed to maximize the aesthetic quality of the project as viewed from surrounding roadways and properties, with special consideration given to the mass and bulk of buildings and the streetscape on Coast Highway; and 4. Site plan and layout of buildings, parking areas, pedestrian and vehicular access ways, landscaping and other site features shall give proper consideration to functional aspects of site development. 15-185 The proposed development complies with all Site Development Review criteria specified in PC-47 in order to provide a coordinated, cohesive, and comprehensive large-scale planning project. The Approved Project features a distinct and cohesive architectural style (Figure 2), and includes landscaping components, signage, and circulation design, which are compatible with the character of the neighboring uses and surrounding sites. The additional 14 hotel rooms and attached residential condominium buildings designed to be of similar architectural style, which includes smooth plaster exterior siding, clay -tile roofs, and stone veneer exterior accent finishes. As a result, the Proposed Project is compatible with the Approved Project, and not detrimental to the orderly and harmonious development of the surroundings and of the City. Figure 1: Rendering of Architectural Style (Pictured: Attached Condominium and Hotel Loft Building) The Proposed Project promotes additional functionality between residential and hotel components, as residential condominiums are attached to hotel units in two (2) separate loft buildings. Underground parking is provided in the loft buildings, with additional street parking and parking lots to serve hotel and tennis club guests. Each of the two (2) single- family residences provide a two (2)-car garage to serve its residents. The project has been designed to include a surplus of 40 spaces beyond what is required. Table 4 below shows the required and provided parking for the proposed project. 15-186 Table 4: Reauired and Provided Parkina Use Parking Rate Required Provided Tennis Club 4 per court 32 spaces 51 spaces Single -Family Residences 2 per unit enclosed 1 per unit guest 4 enclosed spaces 2 guest spaces 4 enclosed spaces 4 guest spaces Attached Condominiums 3 per unit enclosed 1 per unit guest 9 enclosed spaces 3 guest spaces 9 enclosed spaces 3 guest spaces Hotel 1 per unit 41 spaces 60 spaces Total N/A 91 spaces 131 spaces Surplus 40 spaces The development is designed to maximize aesthetic quality as viewed from surrounding properties. The property is separated from East Coast Highway by a commercial office plaza which comprises of three (3) two (2)-story office buildings at 1200 Newport Center Drive. The office plaza includes landscaping along East Coast Highway with trees and various plantings. The Newport Beach Country Club golf clubhouse is located approximately 150 feet west of the Property. The development's multiple components (tennis club, residential, and hotel) have been designed and sited to function cohesively not only with each other, but also with the adjacent golf course uses and surrounding development. Coastal Development Permit The subject property is located within the Coastal Zone. Therefore, the Proposed Project requires a coastal development permit. Per Section 21.52.015.E of NBMC, the required findings to approve a coastal development permit are as follows: 1. Conforms to all applicable sections of the certified Local Coastal Program; 2. 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. The Proposed Project is consistent with the Coastal Land Use Plan, which designates site as Mixed -Use Horizontal/Parks and Recreation (MU-H/PR). The MU-H land use designation of the Coastal Land Use Plan allows the horizontal intermixing of hotel units, single-family residences, attached residential condominiums, and tennis club facilities on the project site. Additionally, the MU-H designation identifies a maximum density/intensity limit of 1.5 floor area ratio (FAR), with a minimum FAR of 0.25 and a maximum FAR of 0.5 for retail uses and a maximum of 1.0 for residential. The project proposes 65,595 square feet of nonresidential floor area (approximately 0.21 FAR) for the hotel rooms, concierge & guest center, and ancillary hotel uses which include a performance therapy center, yoga pavilion, office, common area, and a spa and fitness center. The five (5) residential dwelling units totals 20,653 square feet (approximately 0.06 FAR). The 15-187 proposed density/intensity of the hotel and residential units comply with the FAR limitations identified in the Coastal Land Use Plan. The PR coastal land use designation applies to land used or proposed for active public or private recreational use. Permitted uses include parks (both active and passive), golf courses, marina support facilities, aquatic facilities, tennis clubs and courts, private recreation, and similar facilities. The PR designation on this site is applicable to the existing and proposed private tennis club and tennis courts. The density/intensity limitations include incidental buildings, such as maintenance equipment sheds, supply storage, and restrooms, not included in determining intensity limits. The proposed tennis club and ancillary uses are consistent with this land use designation. The property is not located between the nearest public road and the sea or shoreline and will not affect the public's ability to gain access to, use, or view the coast and nearby recreational facilities. Vertical access to Newport Bay is available via existing public access at 1601 Bayside Drive, which is located approximately 1,600 feet southwest of the subject property. Elevations on the subject property range from 104 feet up to 120 feet North American Vertical Datum of 1988 (NAVD88) above mean sea level. These site elevations are well above projected sea level rise in Newport Bay for the next 75 years and the site is not subjected to other coastal hazards. Potential liquefaction risk (if any) must be mitigated with foundation designs consistent with the Building Code. Coastal Land Use Plan, Policy 4.4.1-6 and Figure 4-3 (Coastal Views) identify the closest public view road as Newport Center Drive, located approximately 170 feet east of the project site and the closest public viewpoint as Irvine Terrace Park, located 525 feet south of the project site. Coastal views from these view corridors and viewpoints are directed toward the Newport Bay and the Pacific Ocean. Since the project site is located to the north of Irvine Terrace Park, the Proposed Project will not affect coastal views due to its orientation. From Newport Center Drive, there is a zero to 40-foot grade difference to the project area below. The Planned Community Text amendment includes maximum building heights for all structure types (Table 3, above). The majority of the project would sit below the existing grade elevations along Newport Center Drive, minimizing the visibility of the project site and would not obstruct public coastal views. During construction, equipment would be obscured by vegetation and the grade differential so it would not obstruct coastal views from motorists traveling along Newport Center Drive. The Proposed Project will not impact coastal views. An Analysis of the Fiscal and Economic Impacts was prepared on August 29, 2022, by Kosmont Companies to analyze the construction of new visitor accommodations in the coastal zone in accordance with the requirements of Section 21.48.025 (Local Coastal Program Implementation Plan, Standards for Specific Land Uses, Visitor Accommodations) of the NBMC. The report provides a feasibility analysis stating that the anticipated average daily room (ADR) rate for all 41 rooms is approximately $920 and the 15-188 statewide average daily room rate is $205.69. Because the anticipated ADR will well exceed the Statewide average, the proposed accommodations are not considered lower cost accommodations. The report considers the specific location of the Property as an inappropriate location for low-cost accommodations. Additionally, low-cost accommodations are not feasible due to prohibitive land and construction costs. The Property does not currently provide accommodations of any kind and implementation of the Project would not directly impact low-cost accommodations. While the Project would not include any lower cost accommodations, the Local Coastal Program Implementation Plan would identify the Project as generating an impact simply by not providing lower - cost accommodations. There is no impact on the provision of lower -cost visitor accommodations in the Coastal Zone as creating lower cost accommodations at the site is infeasible and there is no nexus to an actual impact; therefore, no mitigation is required. The Project features larger guest facilities with bedrooms, separate living rooms with sofa beds and many rooms with kitchens. These features will accommodate more occupants per room, which lowers the costs per occupant. Tentative Vesting Tract Map On January 24, 2012, the City Council approved a Vesting Tentative Tract Map, which authorized the creation of separate lots for five (5) single-family residences, 27 hotel rooms, and lettered lots for common areas and a private street. The applicant proposes an amendment to the vesting tentative tract map to accommodate the Proposed Project, which consists of two (2) single -unit residential dwellings, three (3) residential condominiums, 41 hotel rooms, a tennis clubhouse, their common open space areas and a private street to support the proposed uses. In accordance with Section 19.12.070 of the Newport Beach Municipal Code, and the following finding and facts in support of such findings are set forth: 1. 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, 2. That the site is physically suitable for the type and density of development; 3. 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; 4. That the design of the subdivision or the type of improvements is not likely to cause serious public health problems; 5. 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 15-189 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; 6. 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, 7. 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; 8. 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, 9. 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; 10. 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 11. 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. The amended map reflects the combination of two (2) previously divided lots, which results in the elimination of one (1) lot. These two (2) lots were intended for two (2) detached -single family residences. The map has also been modified to include residential condominium portion of the Proposed Project. The project site is located in the Newport Center and Fashion Island area. The site is currently improved with a private tennis club. Given its location, this site is ideal for the development of a recreation and mixed -use project as allowed by the General Plan Land Use Element. Additionally, the Addendum to the MND concludes that no significant environmental impacts will result with the Proposed Project in accordance with the proposed subdivision map revision. 15-190 All construction for the project has been conditioned to comply with all Building, Public Works, and Fire Codes, which are in place to prevent serious public health problems. The Public Works Department has reviewed the proposed revisions to the approved vesting tentative tract map and determined it is consistent with the Newport Beach Subdivision Code (Title 19) and applicable requirements of the Subdivision Map Act. Limited Term Permit The applicant is requesting a limited term permit (LTP) to allow two (2) temporary modular trailers and portable toilets during construction. In accordance with Section 20.52.040 (Limited Term Permits) of the Newport Beach Municipal Code, the following findings and facts in support of such findings are set forth: 1. The operation of the requested limited duration use at the location proposed and within the time period specified would not be detrimental to the harmonious and orderly growth of the City, nor 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 requested limited duration use; 2. The subject lot is adequate in size and shape to accommodate the limited duration use without material detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the lot; 3. The subject lot is adequately served by streets or highways having sufficient width and improvements to accommodate the kind and quantity of traffic that the limited duration use would or could reasonably be expected to generate; 4. Adequate temporary parking to accommodate vehicular traffic to be generated by the limited duration use would be available either on -site or at alternate locations acceptable to the Zoning Administrator; and 5. The limited duration use is consistent with all applicable provisions of the General Plan, any applicable specific plan, the Municipal Code, and other City regulations. Both modular trailers are approximately 33 feet long and 13 feet wide. One modular trailer is proposed to be used as a construction office located at the southwest portion of the property and will be staged at this location through the entire duration of the Proposed Project, which is estimated to be approximately 20 months. The second modular office is proposed to be used as a temporary office for tennis club operations and will be located on the easterly portion of the property through the construction of the tennis clubhouse, which is estimated to be approximately 16 months. The portable toilets are proposed to serve the temporary tennis club office and located nearby. Development Agreement On March 27, 2012, the City Council approved a Development Agreement between the City and the Applicant for the Approved Project. The DA was executed and recorded, on January 29, 2014, with a ten-year term. The DA provides vested rights to develop the 15-191 Approved project and the City negotiated the following public benefit fees of ninety-three thousand dollars ($93,000) per each residential dwelling unit and ten dollars ($10) per square foot of construction for the tennis clubhouse (Table 5). These fees are subject to annual adjustments, based on the CPI Index. Table 5: Proiected Public Benefit Fees (Subiect to Adiustment) Use Multi tier Fee Rate Total Residential 5 units $93,000 per unit $465,000 Tennis Clubhouse 3,725 square feet $10 per square foot $37,250 Grand Total $502,250 On July 12, 2022, the City Council approving the First Amendment to the DA to extend the term of the agreement by one year. The DA will expire on September 23, 2023. In accordance with Section 15.45.020.A.2.c (Development Agreement Required) of the NBMC, a reconsideration of the agreement is required as the Proposed Project, which includes an amendment to PC-47 and a General Plan Amendment to increase the number of hotel rooms from 27 to 41 rooms, which is new non-residential development in Statistical Area L1 (Newport Center/Fashion Island). The applicant requests an additional 10-year term of agreement ("Second Amendment"), pursuant to Section 15.45.070 (Amendment/Cancellation). The Second Amendment provides assurance that the applicant may proceed with the Proposed Project in accordance with existing policies, rules and regulations, and conditions of approval. Additionally, the Second Amendment to the DA helps the applicant avoid a waste of resources and escalated costs of the Proposed Project while encouraging a commitment to private participation in comprehensive planning. In addition to the 10-year term extension, the Second Amendment (Exhibit "E" of the Draft Resolution) specifies the updated permitted uses, density and intensity, and maximum height and size of proposed buildings, consistent with the Proposed Project. Additionally, the Second Amendment to the Agreement includes all mandatory elements, including public benefits that are appropriate to support conveying the vested development rights consistent with the City's General Plan, NBMC, and Government Code Sections 65864 et seq. No changes to the public benefit fees are proposed. Environmental Review On March 27, 2012, the Newport Beach City Council approved a Mitigated Negative Declaration and its Errata to Mitigated Negative Declaration (together referred to as "MND") that addressed the potential environmental effects associated with the Approved Project. The MND was prepared in compliance with the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and City Council Policy K-3. 15-192 Pursuant to Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, when a negative declaration adopted for a project, no subsequent negative declaration 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 negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2. Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous negative declaration 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 negative declaration was adopted as complete, shows any of the following: a. The project will have one or more significant effects not discussed in the previous negative declaration. b. Significant effects previously examined will be substantially more severe than shown in the adopted negative declaration. 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 negative declaration 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 earlier MND and entire environmental review record including the Addendum, the Proposed Project will not result in any new significant impacts that were not previously analyzed in the MND. The Addendum confirms and provides substantial evidence that the potential impacts associated with the Proposed Project would either be the same or less than those described in the MND, or as mitigated by applicable mitigation measures and standard conditions of approval in the MND. In addition, there are no substantial changes to the circumstances under which the Proposed Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the MND, nor has any new information regarding the 15-193 potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, an addendum to the previously adopted MND is the appropriate environmental document for the Proposed Project. In taking action to approve any of the requested applications for the Proposed Project, the data presented in the MND, as augmented by the Addendum for this Proposed Project, are considered as part of the record. The City contracted with an environmental consultant, Chambers Group, to prepare the Addendum. The entire Addendum and its technical appendixes are available online at the City's website at www.newportbeachca.gov/cega. Summary In summary, staff believes the findings for the project approval can be made with specific conditions of approval. The applicant proposed a general plan amendment to increase the number of hotel rooms and one (1) additional tennis court. According to the applicant, the request is necessary to provide a viable hotel development and adjust residential type in responding to the needs of the community. The Proposed Project is consistent with the General Plan's MU-H3/PR designation as it still includes and maintains a mix of land uses including single-family residential, attached residential condominiums, recreational tennis club facilities, and visitor -serving commercial uses. The proposed general plan amendment would not require a voter approval pursuant to Charter Section 423 analysis. Due to the lack of environmental impacts and apparent compatibility with the surrounding uses, staff does not object to the GPA request. The Proposed Project is also consistent with the Local Coastal Program. The Coastal Land Use Plan designates the property as MU-H/PR (Mixed Use Horizontal/Parks and Recreation). This designation allows horizontally -distributed mix of uses, which includes multi -family residential, visitor -servicing uses, and tennis clubs and courts. The Proposed Project is within the maximum density/intensity limit allowed per MU-H designation. The amendment to the Planned Community Development Plan is consistent with the intent and purpose of PC-47 in that the tennis club, hotel, and residential uses and their development standards have already been allowed and in place on the tennis club site. The proposed changes to the building height, setbacks, and parking standards in order to accommodate the Proposed Project are within the development standards in place for the Approved Project. The Proposed Project meets all of the findings for the required Site Development Review as specified in PC-47. The proposed amendments maintain a coordinated, cohesive, and comprehensive large-scale planning project, which includes a distinct architectural style. The Proposed Project is compatible with the character of the neighboring uses and surrounding sites and is not detrimental to the orderly and harmonious development of the surroundings and of the City. 15-194 The Proposed Project meets all of the findings for the required Coastal Development Permit. As previously stated, the amendment is consistent with the City's Local Coastal Program. Additionally, the amendment will not affect the public's ability to gain access to, use, or view the coast and nearby recreational facilities. The proposed revisions to the approved vesting tentative tract map is consistent with the Newport Beach Subdivision Code (Title 19) and applicable requirements of the Subdivision Map Act. The amended map reflects the combination of two previously divided lots, which results in the elimination of one lot. These two lots were intended for two (2) detached -single family residences. The map has also been modified to include attached residential condominiums. The Proposed Project requires an amendment to the City's Local Coastal Program Implementation Plan (Title 21). This amendment requires the consideration of California Coastal Commission. As a result, the Proposed Project only becomes effective upon the approval by Coastal Commission. Upon such approval, the following discretionary permits approved for the Approved Project are to become null and void: 1. Site Development Review Permit No. SD2011-002 2. Tentative Tract Map No. ND2010-008 3. Limited Term Permit No. XP2011-004 Altarnafivac 1. The Planning Commission may require or suggest specific design changes that are necessary to alleviate any areas of concern. If the requested changes are substantial, staff will return with a revised resolution incorporating new findings and/or conditions. 2. If the Planning Commission chooses to deny the Proposed Project, the applicant would retain the vested right to build the Approved Project until the termination date of the DA (September 23, 2023). After the expiration of DA, the Approved Project could still be implemented with the approval of new discretionary permits (i.e., site development review permit, tentative tract map, limited term permit). The City, however, would not receive the negotiated public benefit fee as prescribed in the DA. Public Notice Notice of this hearing was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights -of -way and waterways) including the applicant and posted on the subject property at least 10 days before the scheduled meeting, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. 15-195 Prepared by: Submitted by: David S. L e Jim Campbell Associate Planner Deputy Community Development Director ATTACHMENTS PC 1 Draft Resolution with Findings and Conditions PC 2 Project Description PC 3 LSA's Traffic and Parking Analysis Update PC 4 MurowDC's Construction Management Plan PC 5 Fiscal and Economic Impacts Analysis PC 6 Project Plans :AUsers\PLN\.Shared\PA's\PAs-2021\PA2021-260TCTC-Staff Report.docx01/12/18 15-196 Attachment G Planning Commission Minute Excerpts, Dated September 8, 2022 15-197 Planning Commission Regular Meeting Minutes September 8, 2022 Recommended Action: 1. Find the project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303 Class 3 (New Construction or Conversion of Small Structures), because it has no significant effect on the environment; 2. Waive City Council Policy L-6, Encroachments in Public Rights -of -Way, for non -compliant private improvements consisting of stairs, handrails, retaining walls, and planters that encroach into the Cliff Drive public right-of-way, contingent upon all conditions of the Encroachment Permit process being met; and 3. Adopt Resolution No. PC2022-021 waiving City Council Policy L-6 and approving Encroachment Permit No. N2022-0147. Commissioners disclosed no ex parte communications. Motion made by Commissioner Lowrey and seconded by Secretary Rosene to approve the recommended action. AYES: Ellmore, Harris, Kleiman, Lowrey, Rosene, and Weigand NOES: None ABSTAIN: None ABSENT: Klaustermeier VII. PUBLIC HEARING ITEMS ITEM NO. 3 TENNIS CLUB AT NEWPORT BEACH PROJECT AMENDMENT (PA2021-260) Site Location: 1602 East Coast Highway Summary: An amendment to the 2012 approved Tennis Club at Newport Beach project to: 1) increase the number of future tennis courts from 7 to 8 courts, 2) increase the number of future hotel rooms from 27 to 41 rooms, 3) increase the gross floor area of the ancillary hotel uses by 4,686 square feet, and 4) provide 3 attached condominium units and 2 detached single family residences in -lieu of 5 detached single- family residences. The proposed changes to the 2012 approved project require the consideration of the following land use: • General Plan Amendment: An amendment to Anomaly No. 46 of Table LU2 of the 2006 Newport Beach General Plan Land Use Element to amend the allowable development limits for the tennis club site; • Local Coastal Program Implementation Plan Amendment: An amendment to Local Coastal Implementation Plan Section 21.26.055.S.2 (Tennis Club of Newport Beach Country Club Planned Community Coastal Zoning District Development Standards) to amend land use regulations for the tennis club site; • Planned Community Development Plan Amendment: An amendment to Planned Community Development Plan No. 47 (Newport Beach Country Club Planned Community) to amend land use regulations and development standards on the tennis club site; • Maior Site Development Review Amendment (SD2011-002): A site development review in accordance to Section 4.0 (Site Development Review) of Planned Community Development Plan No. 47 and Newport Beach Municipal Code (NBMC) Section 20.52.80 (Site Development Reviews) for the construction of the proposed project; • Coastal Development Permit Amendment (CD2017-039): An amendment to Coastal Development Permit No. CD2017-039 for the demolition of existing structures, further subdivision on the tennis club site, and implementation of the project; Page 2 of 9 15-198 Planning Commission Regular Meeting Minutes September 8, 2022 • Tentative Vesting Tract Map Amendment (NT2005-003): An amendment to Tentative Vesting Tract Map pursuant to Title 19 of the Municipal Code to create separate lots for the tennis club site; • Limited Term Permit Amendment (XP2011-004): A limited term permit to allow temporary use of structures during construction pursuant to Section 20.60.015 of the Municipal Code; • Development Agreement Amendment (DA2008-001): A second amendment to the Development Agreement between the Applicant and the City, pursuant to NBMC Sections 15.45 (Development Agreement), which would provide vested right to develop the proposed project while also providing negotiated public benefits and extend the term of Agreement for additional ten years; and • Addendum to the 2010 Mitigated Negative Declaration (ND2010-008): Pursuant to the California Environmental Quality Act ("CEQA"), the addendum addresses reasonably foreseeable environmental impacts resulting from the proposed development Recommended Action: 1. Conduct a public hearing; 2. Find that the Proposed Project will not result in any new significant impacts that were not previously analyzed in the adopted Mitigated Negative Declaration No. ND2010-008 (SCH 2O10091052) for the Approved Project, and the addendum has been prepared to address reasonably foreseeable environmental impacts resulting from the Proposed Project; and 3. Adopt Resolution No. PC2022-022 recommending City Council approval of PA2021-260, which includes adoption of a Mitigated Negative Declaration Addendum, and approval of a General Plan Amendment, Local Coastal Land Use Plan Amendment, Planned Community Development Plan Amendment, Major Site Development Review Amendment, Coastal Development Permit Amendment, Vesting Tentative Tract Map Amendment, Limited Term Permit Amendment, and Development Agreement Amendment for The Tennis Club at Newport Beach Project located at 1602 East Coast Highway. Commissioner Weigand recused himself due to the Levine Act for a campaign contribution. Associate Planner Lee used a presentation to review the requested amendment to a previously approved project, project location, land use, previously approved project inclusions and site plan, 2012 approved entitlements, proposed amendment details and site plan, site plan comparisons, requested project entitlements, CEQA review, findings, an additional condition for future consideration for pickleball use, and recommended action. In response to Vice Chair Ellmore's inquiry, Deputy Director Campbell noted that traffic, parking, and noise are focus areas for the City as pickleball courts develop and confirmed the tennis and pickleball parking ratio of four spaces to one court and 12 spaces to one court and the application is for tennis courts only. In response to Secretary Rosene's question, Deputy Director Campbell stated that property development other than tennis courts would require future application and review. Commissioners Lowrey, Harris, Secretary Rosene, and Chair Kleiman disclosed conversations with the property owner, applicant, and consultants. Vice Chair Ellmore disclosed no ex parte communication. Chair Kleiman opened the public hearing. Robert O'Hill, managing owner of Newport Beach Country Club, used a presentation to review the modifications included in the Bungalow and Lofts Plan B amendment, project renderings, Bungalow Loft first floor and top floor drawings, a floor plan for the Clubhouse and Bungalow Spa, and photos of the pool attendant area, fitness center desk area, men's and women's locker rooms, massage area, and koi pond area. Mr. O'Hill estimated City gains of $1,300,000, accepted the new condition, thanked staff for their work, and agreed to abide by the conditions established by the City. In response to Chair Kleiman's request, Mr. O'Hill agreed with the conditions as drafted and the new conditions in the staff report. Page 3 of 9 15-199 Planning Commission Regular Meeting Minutes September 8, 2022 In response to Commissioner Harris' inquiry, Mr. O'Hill reported adequate parking accommodations and noted monetary investments to resurface tennis courts for conversion to pickleball courts. Sean Abdali, The Tennis Club owner and operator, noted Newport Beach having the first private pickleball club in the world and today the largest, relayed having formed an event company to help run events, identified the different parking needs for pickleball and tennis users and electric bikes, and explained an agreement with the Irvine Company for parking space use Monday — Friday, at Corporate Plaza West on weekends and holidays, and Newport Beach County Club operators on Mondays. Furthermore, he noted a reduction in large events to accommodate parking availability, residential support of the plan to preserve the Club, and a reduction in noise with improved pickleball equipment in the future. Paul Christ, Granville Community Association representative, shared enthusiasm for Mr. O'Hill's plans, concerns for pickleball noise causing reduced property value, suggested installing a sound blanket and a restriction on amplified sound, and questioned the surface area of the tennis and pickleball courts. Tracey Miller represented Club members who are in opposition to the project and read their statements of concern. Bret Feuerstein and Ryan Chase, 50 percent owners of The Tennis Club property, noted an arbitration in progress to determine if Golf Realty Fund has the authority to unilaterally process the application, opposed the proposed plan, thanked staff for their work, and expressed interest in finding a solution that enables The Tennis Club to grow and thrive, and noted a concern that there are no pickleball courts in the applicant's plan. Jim Mosher expressed concern for clarity in the Land Use table of the General Plan Amendment relative to the specific allowable development at the "anomaly site," questioned the Greenlight analysis by the City, believed that the 2012 approval was not approved by the voters, and is of the opinion that a Greenlight vote is required for the amendment. Denys Oberman commended staff for bringing up fluid items associated with the use, particularly, impacts of pickleball noise, events, and capacity within the City and requested the Planning Commission remand the plan to obtain a committal characterization of what is being proposed and assure compatibility with the surrounding area. Mark Susson noted contradictions in the proposal and parking, noise, and traffic issues at The Tennis Club. Deidre Machowski encouraged the Planning Commission to move forward with the plan. Rogin Moore, The Tennis Club member and employee, challenged anyone claiming having received threatening emails from Mr. Abdali, noted meetings with members and Mr. Abdali to share the plans and gain input, and relayed no known opposition. Mr. O'Hill clarified the participants that, in his opinion, supported the approval of the General Plan Amendment after two previous failed attempts. Mr. Abdali addressed the noise issues. At the request of Chair Kleiman, Deputy Director Campbell indicated that City Council policy is being followed and the amendment does not require a Greenlight vote, pickleball was not examined because it was not requested in the application and would be subject to review with the added condition if requested in the future, and special event permits are required for tournaments. Furthermore, he indicated that existing tennis court conversion requirements are dependent on how the tennis court was originally established, private court conversion requirements are left up to the Homeowner Associations, and an analysis to identify if the conversion is consistent with the entitlements would be required for this project along with environment, traffic, parking, and noise reviews. Chair Kleiman clarified the multi -step process for approval of the project. Chair Kleiman closed the public hearing. Page 4 of 9 15-200 Planning Commission Regular Meeting Minutes September 8, 2022 In response to Secretary Rosene's question, Deputy Director Campbell agreed that the plans are conceptual and noted that a plan check took place in 2016, more detailed designs have been put forth through the building division, and the applicant acknowledges an update to the drawings is needed to meet the new building code, indicated being comfortable moving forward with the recommendation, and assured the Commission that any deviations from standards in the drawings will be cleaned up at the plan check stage. Commissioner Lowrey expressed comfort with the findings by staff and explanations of what the General Plan calls for and noted the popularity of pickleball among all ages, honoring the General Plan, and providing recreational facilities. Vice Chair Ellmore concurred with Commissioner Lowrey and clarified that the project is for tennis courts. Commissioner Lowrey noted that staff will need to identify the parameter for approval relative to pickleball court development. Motion made by Commissioner Lowrey and seconded by Vice Chair Ellmore to approve the recommended action and the additional condition. AYES: Ellmore, Harris, Kleiman, Lowrey, and Rosene NOES: None ABSTAIN: Weigand ABSENT: Klaustermeier ITEM NO. 4 BAY ISLAND GENERAL PLAN, ZONING CODE, LCP AMENDMENTS (PA2022-087) Site Location: Bay Island Summary: Amendments to the General Plan, Title 20 (Planning and Zoning), and Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code increasing the development limit specified for Bay Island from 23 dwelling units to 25 dwelling units. The amendments were initiated by the applicant who seeks to return the maximum residential density of Bay Island to 25 units, consistent with prior entitlement under Use Permit No. UP3618. Recommended Action: 1. Conduct a public hearing; 2. Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303 under Class 3 (New Construction or Conversion of Small Structures) of the CEQA Guidelines, because it has no potential to have significant effect on the environment; and 3. Adopt Resolution No. PC2022-023 (Attachment No. PC 1) recommending the City Council approve General Plan Amendment No. GP2022-001, Code Amendment No. CA2022-005, and Local Coastal Program Amendment No. LC2022-003. Senior Planner Crager used a presentation to review the Bay Island amendments, Bay Island map, introduction/background, updated General Plan, Zoning Code, and Local Coastal Program maps, CEQA review, recommended action, and next steps. Commissioner Weigand disclosed an island tour with Coralee Newman, Commissioners Lowrey and Vice Chair Ellmore disclosed no ex parte communications, Commissioner Harris and Secretary Rosene disclosed having spoken with the applicant, and Chair Kleiman disclosed having received a message from the applicant's consultant. Page 5 of 9 15-201 Attachment H Planning Commission Resolution No. PC2022-022 15-202 RESOLUTION NO. PC2022-022 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA RECOMMENDING CITY COUNCIL APPROVAL OF AN ADDENDUM TO MITIGATED NEGATIVE DECLARATION NO. ND2010-008, GENERAL PLAN AMENDMENT, LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN AMENDMENT, PLANNED COMMUNITY DEVELOPMENT PLAN AMENDMENT, AMENDMENT TO MAJOR SITE DEVELOPMENT REVIEW NO. SD2011-002, AMENDMENT TO COASTAL DEVELOPMENT PERMIT NO. CD2017-039, AMENDMENT TO VESTING TENTATIVE TRACT MAP NO. NT2005-003, AMENDMENT TO LIMITED TERM PERMIT NO. XP2011-004, AND SECOND AMENDMENT TO DEVELOPMENT AGREEMENT NO. DA2008- 001 FOR THE TENNIS CLUB AT NEWPORT BEACH LOCATED AT 1602 EAST COAST HIGHWAY (PA2021-260) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. An application was filed by Golf Realty Fund, Managing Owner ("Applicant"), with respect to property located at 1602 East Coast Highway, and legally described as Parcels A, B, C, and D of Parcel Map No. 2016-151 (commonly referred as the 'Tennis Club Site" or "Property"). 2. On January 24, 2012, the City Council authorized the redevelopment of the Property to include a reconstruction of the 3,725-square-foot tennis clubhouse, a reduction of tennis courts from 24 to seven (7) courts, and a construction of 27-room boutique hotel with 9,700 square feet of ancillary uses, and five (5) single-family residential units. On November 20, 2018, the Zoning Administrator approved Coastal Development Permit No. CD2017-039, authorizing the redevelopment if the subject property consistent with the 2012 approval (commonly referred to as "Approved Project"). 3. The Applicant is requesting land use approvals to amend the Approved Project which consists of the following: a. Increase the number of future tennis courts from seven (7) to eight (8); b. Increase the number of future hotel rooms from 27 to 41 rooms; c. Increase the gross floor area of ancillary hotel uses by 4,686 square feet; d. Provide three attached condominium units and two (2) single family residences in -lieu of five (5) single-family residences; and 15-203 Planning Commission Resolution No. PC2022-022 Page 2 of 43 e. Amending the 2012 Development Agreement to account for the aforementioned changes to the Project along with extending the term of the 2012 Development Agreement for an additional 10 years ("Project"). The following approvals are requested or required in order to implement the Project: a. General Plan Amendment ("GPA") — An amendment to Anomaly No. 46 of Table LU2 of the 2006 Newport Beach General Plan Land Use Element to document the conversion of 17 tennis courts to 27 hotel rooms authorized by City Council Resolution No. 2012-10, and the addition of 14 hotel rooms for a total of 41 rooms and one tennis courts for a total of eight tennis courts; b. Local Coastal Program Implementation Plan Amendment (" LCPA") — An amendment to NBMC Section 21.26.055.S.2 (Planned Community Coastal Zoning District Development Standards, Newport Beach Country Club (PC-47, Tennis Club) to modify the permitted uses and development standards allowed on the Property; c. Planned Community Development Plan Amendment ("PCDP Amendment") — An amendment to Planned Community Development Plan No. 47 (Newport Beach Country Club Planned Community) to amend land use regulations and development standards on the Property; d. Major Site Development Permit Amendment ("SDA") — An amendment to the existing site development review in accordance with PC-47 and NBMC Section 20.52.80 (Permit Review Procedures, Site Development Reviews) for the construction of the Project; e. Coastal Development Permit Amendment ("CDPA") — A coastal development permit for the demolition of existing structures, further subdivision on the Property, and implementation of the Project; f. Tentative Vesting Tract Map Amendment ("VTMA") — An amendment to Vesting Tentative Tract Map No. 15347 pursuant to Title 19 (Subdivisions) of the Newport Beach Municipal Code ("NBMC") for a lot reduction created for the Approved Project and inclusion of the condominium ownership; g. Limited Term Permit Amendment ("XP") — A limited term permit to allow temporary use of structures during construction on the Property, pursuant to NBMC Section 20.52.040; h. Development Agreement Amendment ("DA") — A second amendment to the Development Agreement (DA2008-001), between the Applicant and the City, pursuant to Sections 15.45.020(A)(2)(c) (Buildings and Construction ,Development Agreements Required, Development Agreement Required) and 15.45.070 (Buildings and Constructions, Development Agreements, Amendment/Cancellation) of the NBMC, which would provide vested right to 15-204 Planning Commission Resolution No. PC2022-022 Paqe 3 of 43 develop the Project for a term of ten years and provide negotiated public benefits to the City; and Addendum to previously adopted Mitigated Negative Declaration No. ND- 2010-008 (SCH2O10091052) ("Addendum") — Pursuant to the California Environmental Quality Act ("CEQA"), the Addendum addresses reasonably foreseeable environmental impacts resulting from the Project. 4. The Property is designated Mixed -Use Horizontal 3/Parks and Recreation (MU-H31PR) by the General Plan Land Use Element and is located within the Newport Beach Country Club Planned Community (PC-47) Zoning District. 5. The Property is located within the coastal zone. The Coastal Land Use Plan category is Mixed -Use Horizontal/Parks and Recreation (MU-HIPR) and it is located within the Newport Beach Country Club Planned Community (PC47) Coastal Zone District. 6. A public hearing was held on September 8, 2022 in the City Council Chambers, located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act"), California Government Code Section 65867 and Section 15.45.050 (Public Hearing -Notice) of the Newport Beach Municipal Code. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. On March 27, 2012, the Newport Beach City Council approved Mitigated Negative Declaration No. ND2010-008 (SCH 2O10091052) and an Errata to Mitigated Negative Declaration No. ND2010-008 (together referred to as "MND") that addressed the potential environmental effects associated with the Approved Project. The MND was prepared in compliance with the California Environmental Quality Act as set forth in Section 21000 et seq. of the California Public Resources Code ("CEQA"), the State CEQA Guidelines set forth in Title 14, Division 6, Chapter 3 of the California Code of Regulations, ("CEQA Guidelines"), and City Council Policy K-3. 2. Pursuant to Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, when a negative declaration adopted for a project, no subsequent negative declaration 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: a. Substantial changes are proposed in the project which will require major revisions of the previous negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 15-205 Planning Commission Resolution No. PC2022-022 Page 4 of 43 b. Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or c. 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 negative declaration was adopted as complete, shows any of the following: The project will have one or more significant effects not discussed in the previous negative declaration. ii. Significant effects previously examined will be substantially more severe than shown in the adopted negative declaration. iii. 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 iv. Mitigation measures or alternatives which are considerably different from those analyzed in the previous negative declaration would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. 3. Although the Project necessitates an amendment to the General Plan due to the increased number of hotel rooms and tennis courts, there are no proposed changes to the land uses permitted per the General Plan land use designation. Additionally, based on the changes associated with the Project, there are no conditions that would require the preparation of a subsequent or supplemental MND. As a result, an Addendum to the MND was prepared pursuant to Section 15162 (Subsequent EIRs and Negative Declarations) and 15164 (Addendum to an EIR or Negative Declaration) of the CEQA Guidelines. 4. The following environmental topics were analyzed for the Project: Aesthetics, Air Quality, Biological Resources, Cultural Resources, Energy, Geology and Soils, Greenhouse Gas Emissions, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Noise, Population and Housing, Public Services, Recreation, Transportation, Utilities and Service Systems, and Wildfire. The Addendum includes analysis of new topics that were not included in the previous MND; specifically, it includes a new energy section and a new wildfire section. These additional analyses are appropriate for inclusion in the Addendum, but none result in new or increased significant impacts that would require preparation of a subsequent MND pursuant to Section 15162 of the CEQA Guidelines. 15-206 Planning Commission Resolution No. PC2022-022 Page 5 of 43 5. On the basis of the MND and entire environmental review record, the additional tennis court, hotel rooms, ancillary hotel uses, and conversion of three (3) single-family residences to condominium units will not result in any new significant impacts that were not previously analyzed in the MND. The Addendum confirms and provides substantial evidence that the potential impacts associated with this Project would either be the same or less than those described in the MND, or as mitigated by applicable mitigation measures in the MND. In addition, there are no substantial changes to the circumstances under which the Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in either the MND, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the CEQA Guidelines, an addendum to the previously adopted MND is the appropriate environmental document for the Project. In taking action to approve any of the requested applications for the Project, the data presented in the MND, as augmented by the Addendum for this Project, are considered as part of the record. 6. The Addendum to the MND, is hereby recommended for adoption by the City Council given its analysis and conclusions. The Addendum to the MND and related referenced documentation, constitute the administrative record upon which this decision was based, are on file with the Planning Division, City Hall, 100 Civic Center Drive, Newport Beach, California. 7. The Planning Commission finds that judicial challenges to the City's CEQA determinations and approvals of land use projects are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees in such challenges. As project applicants are the primary beneficiaries of such approvals, it is appropriate that such applicants should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger. SECTION 3. REQUIRED FINDINGS. General Plan Amendment An amendment to the 2006 Newport Beach General Plan Land Use Element is a legislative act. Neither Title 20 (Planning and Zoning) nor California Government Code Section 65000 et seq., set forth any required findings for either approval or denial of such amendments. Findinq and Facts in Support of Findings: As part of the Approved Project, the City Council adopted Resolution No. 2012-10, which authorized the conversion of 17 tennis courts to 27 hotel rooms along with the redevelopment of the Property. The Approved Project included a 3,725-square-foot tennis clubhouse and seven (7) tennis courts, five (5) single-family residential units, and a 27-room boutique hotel with a 2,200 square -foot concierge and guest meeting facility and a 7,500 square -foot spa and fitness center. The City Council found that the 15-207 Planning Commission Resolution No. PC2022-022 Page 6 of 43 conversion of tennis courts to hotel rooms is consistent with the General Plan based on the following: a. The Project provides revitalization to Newport/Fashion Island area where the General Plan encourages additional hotel development and housing units; and b. The conversion does not create traffic impacts. At the time of the conversion, the 17 tennis courts generated 658 average daily trips based upon ITE Trip Generation Rates (71h edition), while the 27 hotel rooms generated 221 average daily trips, resulting in a net decrease of 389 daily trips. 2. The Project includes a GPA to amend the development limits for Anomaly 46. The development limits will be updated to reflect 27 hotel rooms which has been approved by the conversion of 17 un-used tennis courts and seven (7) remaining tennis courts, as part of the Approved Project. The GPA will also include the proposed 14 additional hotel rooms and one tennis court. Together, a total of 41 hotel rooms (27+14=41 rooms) and eight tennis courts will be included in Anomaly 46. No change to the 3,725-square-foot tennis clubhouse is proposed. The GPA does not include a change in land use designation and would remain as Mixed -Use Horizontal 3/Parks and Recreation (MU- H3IPR). 3. The Project GPA is consistent with the following City of Newport Beach General Plan Land Use policies, applicable to the Project (additional policy analysis is included in the MND Addendum attached hereto as Exhibit "A"): a. Land Use Element Policy LU1.1(Unique Environment). Maintain and enhance the beneficial and unique character of the different neighborhoods, business districts, and harbor that together identify Newport Beach. Locate and design development to reflect Newport Beach's topography, architectural diversity, and view sheds. The Project includes an amendment to the PC-47 District regulations on the Tennis Club site and reflects the proposed development on the Property. PC-47 will continue to guide development occurring within the Property. The development standards address building height, setbacks, landscaping, and architectural character. The standards are intended to ensure that the City's unique character is maintained through land use and architectural diversity. b. Land Use Element Policy LU1.2 (Citywide identity). While recognizing the qualities that uniquely define its neighborhoods and districts, promote the identity of the entire City that differentiates it as a special place within the Southern California region. The area in which the Property is located is characterized by a variety of residential, commercial, and recreational land uses that reflect a range of architectural styles, which contribute to the unique character of the City. The intensity and architectural character of the Project are compatible with the variety 15-208 Planning Commission Resolution No. PC2022-022 Page 7 of 43 of densities and styles within the area, which are consistent with the identity of the City. The architectural character of the Project, including the bungalow -style hotel rooms, detached residential units, and attached residential loft buildings, is consistent with the City's desire to differentiate Newport Beach from other coastal cities. c. Land Use Element Policy LU2.1 (Resident -Serving Land Uses). Accommodate uses that support the needs of Newport Beach's residents including housing, retail, services, employment, recreation, education, culture, entertainment, civic engagement, and social and spiritual activity that are in balance with community natural resources and open spaces. The Project will continue to provide residents with recreational opportunities, culture, entertainment, and civic engagement. The proposed amendment remains supportive of recreational uses by providing one additional tennis court to the previously approved seven (7) courts. The amendment also includes an additional 14 hotel rooms to the previously approved 27-unit hotel development with additional hotel amenities for club members such as a Performance Therapy Center and Yoga Pavilion. d. Land Use Element Policy LU.2.6 (Visitor Serving Uses). Provide uses that serve visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents The Project provides visitors with an updated recreational facility as it includes a new tennis clubhouse and eight (8) tennis courts, which includes a stadium size court. The tennis club is adjacent to a golf course with amenities and is within 2,000 feet from the Newport Bay. The proposed 41 hotel rooms provide additional opportunities for visitors to enjoy the tennis club and nearby recreational activities. e. Land Use Element Policy LU3.2 (Growth and Change). Enhance existing neighborhoods, districts, and corridors, allowing for reuse and infill with uses that are complementary in type, form, scale, and character. Changes in use and/or density/intensity should be considered only in those areas that are economically underperforming, are necessary to accommodate Newport Beach's share of projected regional population growth, improve the relationship and reduce commuting distance between home and jobs, or enhance the values that distinguish Newport Beach as a special place to live for its residents. The scale of growth and new development shall be coordinated with the provision of adequate infrastructure and public services, including standards for acceptable traffic level of service. The character of the tennis club, hotel development, and residential units are compatible with the existing land uses and development intensities of the surrounding area. Although the additional 14 hotel rooms and one (1) tennis court 15-209 Planning Commission Resolution No. PC2022-022 Paae 8 of 43 requires amendments to adopted plans and regulations, the existing tennis club and hotel development that are the substance of the Approved Project are allowed under the existing General Plan. The Project has been designed to be compatible with the existing residential, commercial, and recreational uses located within the vicinity of the project site. In addition, the surrounding area is adequately served by existing infrastructure, including circulation, water, sewer, and storm drainage systems. As a result, the implementation of the Project will not adversely affect those systems or the provision of adequate service to nearby development. f. Land Use Element Policy LU3.3 (Opportunities for Change). Provide opportunities for improved development and enhanced environments for residents in the following districts and corridors, as specified in Polices 6.3.1 through 6.22.7: Fashion island/Newport Center: expanded retail uses and hotel rooms and development of residential in proximity to jobs and services, while limiting increases in office development. The Project provides enhancement to the Property, which is currently being used exclusively as a tennis club, to include 41 hotel rooms and ancillary uses, and five residential units. The Project retains a total of eight tennis courts and the reconstruction of the Tennis Clubhouse. The Project will be utilized as a recreational facility for residents, guests, and club members. g. Land Use Element Policy LU4.1 (Land Use Diagram). Accommodate land use development consistent with the Land Use Plan. The Project is consistent with the designation of the General Plan Land Use Element, which designates the Property as MU-H31PR. The Property is located within Anomaly 46, which allocates 24 tennis courts with residential permitted in accordance with the MU-1-13 designation. The GPA includes an amendment to the Development Limit (Other) of Anomaly 46, to reduce the number of tennis courts to eight (8) and to include 41 hotel rooms. h. Land Use Element Policy LU5.1.2 (Compatible Interfaces). Require that the height of development in nonresidential and higher -density residential areas transition as it nears lower -density residential areas to minimize conflicts at the interface between the different types of development. Although the Property is not located adjacent to lower density residential development, the Project has been designed to respect the proximity of the existing residential development adjacent to the Property. The amended PC-47 prescribes maximum building heights and setback requirements for each of the development components to ensure land use compatibility. Building heights for the proposed structures will range from 46 feet for the attached residential loft buildings, 39 feet for the detached residential units, 31 feet for the hotel rooms, and 30 feet for the tennis clubhouse, which are within the maximum 50-foot building height allowed by PC-47. 15-210 Planning Commission Resolution No. PC2022-022 Paqe 9 of 43 Land Use Element Policy LU (5.3.3). Require that properties developed with a mix of residential and non-residential uses be designed to achieve high levels of architectural quality in accordance with Policies 5.1.9 and 5.2.1 and planned to assure compatibility among the uses and provide adequate circulation and parking. Residential uses should be seamlessly integrated with non-residential uses through architecture, pedestrian walkways, and landscape. They should not be completely isolated by walls or other design elements. The Project includes one additional tennis court to the tennis club, 41 hotel rooms, two (2) single family residences, and three (3) residential condominium units. The Project provides adequate parking for each of the proposed uses. Vehicular and pedestrian circulation has been designed to accommodate the residents, as well as guests and members of the tennis club and hotel development. The architectural character of the uses is defined in PC-47 to ensure that compatibility between proposed uses and the surrounding area is maintained. f Land Use Element Policy LU5.3.4 (Districts Integrating Residential and Nonresidential Uses). Require that sufficient acreage be developed for an individual use located in a district containing a mix of residential and non- residential uses to prevent fragmentation and assure each use's viability, quality, and compatibility with adjoining uses. Each of the uses has been designed to complement the overall Project. The uses are connected by the vehicular and pedestrian circulation system, including sidewalks and pedestrian pathways. Land use compatibility is achieved through a common landscape theme and design guidelines in PC-47 to ensure that the architectural integrity of the Project is not compromised. k. Land Use Element Policy LU6.14.2 (Newport Center). Provide the opportunity for limited residential, hotel, and office development in accordance with the limits specified by Tables LU1 and LU2. The Project has a mix of land uses including single-family residential, attached residential condominiums, recreational tennis club facilities, and visitor -serving commercial uses. These uses are permitted in Table LU1 under the MU-H31PR land use designation. The GPA proposes to amend the development limits of Table LU2 to include eight (8) tennis courts and 41 hotel rooms. 1. Land Use Element Policy LU6.14.6 (Pedestrian Connectivity and Amenity). Encourage that pedestrian access and connections among uses within the district be improved with additional walkways and streetscape amenities concurrent with the development of expanded and new uses. The Project provides for both pedestrian and vehicular access within the Property. Sidewalks and pedestrian pathways are incorporated into the circulation system that are intended to accommodate pedestrians utilizing the 15-211 Planning Commission Resolution No. PC2022-022 Page 10 of 43 tennis club, hotel facilities, and future residents. A landscape plan has been provided which includes plant materials that are intended to reflect and complement the existing character within the project area. 4. Pursuant to California Government Code Section 65352.3 (SB18), a local government is required to contact the appropriate tribes identified by the Native American Heritage Commission ("NAHC") each time it considers a proposal to adopt or amend the General Plan. If requested by any tribe, the local government must consult for the purpose of preserving or mitigating impacts to cultural resources. The City received comments from the NAHC indicating that twelve (12) tribal contacts should be provided notice regarding the proposed amendment. The tribal contacts were provided notice on June 9, 2022. California Government Code Section 65352.3 requires notification 90 days prior to Council action to allow tribal contacts to respond to the request to consult. The Project will not be heard by the City Council until the 90-day period expires on September 7, 2022. 423 Charter Analysis Finding: Charter Section 423 requires voter approval of any major General Plan amendment to the General Plan. A major General Plan amendment is one that significantly increases allowed density or intensity by 40,000 square feet of non-residential floor area, increases traffic by more than 100 peak hour vehicle trips (AM/PM), or increases residential dwelling units by 100 units. These thresholds apply to the total of increases resulting from the amendment itself, plus 80 percent of the increases resulting from other amendments affecting the same neighborhood (defined as a Statistical Area as shown in the General Plan Land Use Element) and adopted within the preceding ten years. Council Policy A-18 (Guidelines for Implementing Charter Section 423) requires that proposed amendments to the General Plan be reviewed to determine if a vote of the Newport Beach electorate would be required. This policy includes a provision that all General Plan amendments be tracked as "Prior Amendments" for ten (10) years to determine if minor amendments in a single Statistical Area cumulatively exceed the thresholds indicated above. Facts in Support of Findings: 1. The Property is within Statistical Area L1. Prior amendments within the past ten (10) years are Vivante Senior Housing and Residences at Newport Center. Charter Section 423 counts 80 percent of prior increases, which results in a cumulative increase of 94 dwelling units, 23 AM trips, and 43 PM trips between both projects. There were no square footage increases. 2. The GPA results in an increase of 14,000 square feet (at the rate of 1,000 square feet per hotel unit) of non-residential floor area, 9.51 AM trips, and 12.42 PM trips. When combined with 80 percent of the prior increases, this results in cumulative increases of 14,000 square feet of non-residential floor area, 32.51 AM trips, and 55.42 PM trips. As 15-212 Planning Commission Resolution No. PC2022-022 Paae 11 of 43 none of the thresholds specified by Charter Section 423 are exceeded, no vote of the electorate is required if the City Council chooses to approve the GPA. Local Coastal Program Amendment Finding: As set forth in Section 30500 of the California Public Resources Code, the California Coastal Act requires each county and city to prepare a local coastal program ("LCP") for that portion of the Coastal Zone within its jurisdiction. The California Coastal Commission effectively certified the City's LCP Implementation Plan on January 13, 2017, and the City of Newport Beach ("City") added Title 21 (Local Coastal Program Implementation Plan) ("Title 21") to the NBMC whereby the City assumed coastal development permit -issuing authority as of January 30, 2017. Facts in Support of Findings: An amendment to Title 21 is necessary to revise Section 21.26.055(S), specifically referring to the Newport Beach Country Club Planned Community (PC47) development standards of the "Tennis Club", "The Villas", and "The Bungalows": Tennis Club - The LCPA increases the density and intensity limit for the number of tennis courts from seven (7) to eight (8) courts. The additional tennis court increases the minimum required parking from 28 spaces to 32 spaces. There is no change to the 3,725-square- foot limit for the Tennis Clubhouse. 2, The Residential (Villas) - The number of residential units remains unchanged. However, the LCPA converts three (3) of the five (5) single-family residences to attached residential condominium !nits. Therefore, the amendment revises the density and intensity limit for The Villas from five (5) to two (2) single family residences and removes previous development standards for Villas C, D, and E. The LCPA also includes new development standards for attached residential condominiums, which have a density limit of three (3) units and maximum gross floor area of 15,035 square feet. The maximum height allowed for the attached residential buildings is 46 feet. The buildings are required to be set back five (5) feet from any property line. The remaining single-family residences require a minimum of two enclosed parking spaces and one guest parking space per unit, while the proposed attached condominiums require a minimum of three enclosed parking spaces and one guest parking space per unit. 3. The Hotel (Bungalows) - The LCPA revises the density and intensity limits for the bungalows from 27 to 41 short-term guest rental rooms. Additionally, the maximum allowable gross floor area increases from 28,300 to 47,484 square feet. Square footage for ancillary hotel uses are also included. A minimum of one (1) space per hotel unit is required. 4. The LCPA is consistent with other applicable land use policies of the Coastal Land Use Plan as provided below: 15-213 Planning Commission Resolution No. PC2022-022 Page 12 of 43 a. Coastal Land Use Element Policy 2.1.2-1 (District/Corridor Policies). Development in each district and corridor shall adhere to policies for land use type and densitylintensity contained in Table 2.1.1-1, except as modified in Sections 2.1.3 to 2.1.8. The MU-HIPR designation allows horizontally -distributed mix of uses, which may include general or neighborhood commercial, commercial offices, multi -family residential, visitor -servicing and marine -related uses, buildings that vertically integrate residential with commercial uses, and active public or private recreational uses, including parks, golf courses, marina support facilities, aquatic facilities, tennis clubs and courts, private recreation, and similar facilities. The Project is consistent with the land use designation on the adopted Coastal Land Use Plan, which designates the subject property MU-HIPR (Mixed Use Horizontal/Parks & Recreation). The Project includes a mixture of uses which include a tennis club and eight (8) tennis courts, a 41-unit hotel development and ancillary uses, and five (5) residential units. All of these uses are intended to provide an updated recreational facility to serve the residents and visitors of the City. Additionally, the residential units will supplement the City's housing supply. c. Coastal Land Use Element Policy 2.1.8-1 (Balboa Bay Tennis Club). Allow the horizontal intermixing of short-term rental units and single-family homes with the expanded tennis club faculties. Permitted uses include those permitted by the MU-H and PR categories. The Project includes the mix of 41 hotel rooms with five (5) residential units, which consists of two (2) single-family residences and three attached condominium units. The hotel and residential uses are consistent with both the MU-H and PR categories. 5. Pursuant to Section 13515 of the California Code of Regulations Title 14, Division 5.5, Chapter 8, drafts of the LCPA were made available and a Notice of Availability was distributed on August 1, 2022 at least six (6) weeks prior to the anticipated final action date. Planned Community Development Plan Amendment The Property has a zoning designation of PC-47, which was adopted in 1997 by Ordinance 97- 10 as a part of the City-wide amendment to the districting maps in order to be consistent with the 1988 General Plan Land Use Element and Zoning Code. Development regulations through a Planned Community District Development Plan was not adopted when the PC District zoning designation was assigned to the Property. On March 27, 2012, the City Council adopted a Planned Community Development Plan (PCDP), which is the zoning document to PC-47 to provide use regulations, density and intensity of the proposed uses, and very specific development regulations (building height, 15-214 Planning Commission Resolution No. PC2022-022 Paae 13 of 43 square footage, setbacks, and parking standards). The PCDP included architectural styling and a complete internal vehicular and pedestrian circulation system for both the Golf and Tennis Club sites. PC-47 also includes site development review regulations to ensure new development proposals within the Newport Beach Country Club are consistent with the goals and policies of the General Plan, provisions of PC-47, and the approved Development Agreement_ Findings: An amendment to PC-47, which is the zoning document for the Property, is a legislative act. Neither PC-47, Chapter 20.66 (Planning and Zoning, Amendments) and Chapter 20.56 (Planning and Zoning, Planned Community District Procedures) of Title 20 (Planning and Zoning) of NBMC, or Article 2 (Adoption of Regulations) of Chapter 4 (Zoning Regulations) of Division 1 (Planning and Zoning) of Title 7 (Planning and Land Use) of the California Government Code set forth any required findings for either approval or denial of such amendments. Facts in Support of Findings: The proposed amendment to PC-47 to allow an additional 14 hotel rooms and ancillary uses, one tennis court, and the conversion of three of five single-family dwelling units to condominiums is consistent with the intent of PC-47 and the purpose of Planned Community Districts as specified in NBMC Section 20.56.010 (Planning and Zoning, Planning Community District Procedures, Purpose) for the following reasons: The Project is consistent with the intent and purpose of PC-47 in that the tennis club, hotel, and residential uses and their development standards have already been allowed and in place on the Property. The proposed changes to the building height, setbacks, and parking standards in order to accommodate the Project are within the development standards in place for the Approved Project. 2. PC-47 provides guidelines for architectural design to include coordinated and cohesive architecture which exhibits quality that is keeping with the surrounding area in Newport Center. The Project includes additional hotel rooms and two (2) attached residential condominium loft buildings. The proposed additions have consistent architecture with the Approved Project, which has cohesive architectural features that include smooth plaster exterior siding, clay -tile roofs, and stone veneer exterior accent finishes. 3. PC-47 permits structures to be a maximum of 50 feet in height. The Project includes two (2) attached residential condominium loft buildings which features condominiums on the third level atop of a two (2)-level hotel building. The loft buildings are proposed at a maximum of 46 feet high and comply with the height limit. All other structures are consistent with the maximum heights prescribed in PC-47. 15-215 Planning Commission Resolution No. PC2022-022 Paae 14 of 43 Site Development Review Amendment On January 24, 2012, the City Council approved Site Development Review No. SD2011-002, which authorized the construction of Approved Project. The proposed changes to the Approved Project, necessitate the SDA. In accordance with Section 4.0 of PC-47 (Site Development Review), the following findings and facts in support of such findings are set forth: Finding: A. The Site Development Plan shall be in compliance with all other provisions of the Newport Beach Country Club Planned Community Development Plan. Facts in Support of Finding: PC-47 requires that a site development review process to be completed for construction of any new major building structure located on the subject site and would require consideration and approval by the Planning Commission prior to the issuance of grading or building permits. An amendment to the previously approved site development review has been submitted for the Property and meets provisions stated in the draft PCDP and thereby meets the intent specified in Section 20.52.080 (Planning and Zoning, Permit Review Procedures, Site Development Reviews) of the NBMC. The Project includes an amendment to the PC-47 to incorporate revisions to the Approved Project. These revisions include the addition of one (1) tennis court, the addition of 14 hotel rooms, and the conversion of three (3) single-family residences to residential condominium units. Should the PC-47 amendment be approved, the SDA complies with all provisions of the PC-47, as the proposed development complies with all development criteria specified in the PC-47 in order to provide a coordinated, cohesive, and comprehensive large-scale planning project. Finding: B. The Site Development Plan shall be compatible with the character of the neighboring uses and surrounding sites and shall not be detrimental to the orderly and harmonious development of the surroundings and of the City. Fact in Support of Finding: The architecture, landscaping components, circulation design, and all other project components reflected in the SDR are compatible with the character of the neighboring uses and surrounding sites. The additional 14 hotel rooms and attached residential condominium buildings are of similar architectural style to the Approved Project's bungalow -styled rooms. As a result, the Project is not detrimental to the orderly and harmonious development of the surroundings and the City. 15-216 Planning Commission Resolution No. PC2022-022 Paqe 15 of 43 Finding: C. The Site Development Plan shall be sited and designed to maximize of aesthetic quality of the Newport Beach Country Club Planned Community Development Plan as viewed from surrounding roadways and properties, with special consideration given to the mass and bulk of buildings and the streetscape on East Coast Highway. Facts in Support of Finding: The Property is separated from East Coast Highway by a commercial office plaza which comprises of three two-story office buildings (1200 Newport Center Drive). The office plaza includes landscaping along East Coast Highway with trees and various plantings. The Newport Beach Country Club golf clubhouse is located approximately 150 feet west of the Property. Additionally, the Property is approximately 250 feet from East Coast Highway and is not visible to motorists travelling on the street. 2. The Project is designed consistent with the Approved Project's architectural style with landscaping, circulation, signage and other components which visually connect the tennis clubhouse and attached residential structures to the smaller structures such as the hotel rooms and single-family residences. Therefore, the aesthetic quality of PC-47 is continued to be maximized as viewed from the surrounding roadways and properties. 3. The Project seeks to add additional hotel rooms, ancillary hotel uses, and attached residential buildings to the Property. However, the overall footprint of the Approved Project is not expanding and will not affect the mass of the Project as viewed from surrounding roadways and properties. Finding: D. Site plan and layout of buildings, parking areas, pedestrian and vehicular access ways, landscaping and other site features shall give proper consideration to functional aspects of site development. Facts in Support of Finding: The site plan and layout of buildings, parking areas, pedestrian and vehicular access ways, landscaping, and other site features maximizes the functionality of the proposed uses, while avoiding conflicts between uses and activities. The Project's multiple components (tennis club, residential, and hotel) have been designed and sited to function cohesively not only with each other, but also with the adjacent existing golf course uses. 2. The Project promotes additional functionality between residential and hotel components, as residential condominiums are attached to hotel rooms in two (2) separate loft buildings, Underground parking is provided in the loft buildings, with additional street parking and parking lots to serve hotel and tennis club guests. Each of the two (2) single- family residences provide a two (2)-car garage to serve its residents. 15-217 Planning Commission Resolution No. PC2022-022 Page 16 of 43 Coastal Development Permit Amendment On April 10, 2013, the California Coastal Commission, which had permitting jurisdiction for coastal development permits at the time, issued a notice of intent to issue CDP No. 5-12-160 for the Approved Project. A one (1)-year extension was granted on June 2, 2015. However, the CDP subsequently expired. The City obtained CDP permitting authority in January of 2017. On November 20, 2018, the City's Zoning Administrator approved the CDP, which authorized the redevelopment of the Approved Project. The Project requires an amendment to the previously approved CDP. In accordance with Section 21.52.015(F) (Local Coastal Program Implementation Plan, Coastal Development Review Procedures, Coastal Development Permits, Findings and Decision) of the NBMC, the following findings and facts in support of such findings are set forth: Finding: E. Conforms to all applicable sections of the certified Local Coastal Program. Facts in Support of Finding: The Coastal Land Use Plan designates the Tennis Club site as Mixed -Use Horizontal/Parks and Recreation (MU-H/PR). Policy 2.1.8-1 of the Coastal Land Use Plan allows the horizontal intermixing of hotel rooms, single-family residences, attached residential condominiums, and tennis club facilities on the project site (formerly known/referenced as the Balboa Bay Tennis Club). Permitted uses include those permitted by the MU-H and PR land use designations. A complete consistency analysis of each of the applicable Coastal Land Use Plan policies is included in Table 11 of the Land Use and Planning Section of the previously adopted Mitigated Negative Declaration (MND), pages 82 through 87, as well as in Table 5-5 of the Land Use and Planning Section of Addendum to the MND. Furthermore, facts have been provided in this Resolution which support the proposed amendment to the Local Coastal Program Implementation Plan. In summary, the proposed project is consistent with the Coastal Land Use Plan. 2. The MU-H coastal land use designation identifies a maximum density/intensity limit of 1.5 floor area ratio ("FAR"), with a minimum FAR of 0.25 and a maximum FAR of 0.5 for retail uses and a maximum of 1.0 for residential. The Project proposes 65,595 square feet of nonresidential floor area (approximately 0.21 FAR) for the hotel rooms, concierge & guest center, and ancillary hotel uses which include a performance therapy center, yoga pavilion, office, common area, and a spa and fitness center. Additionally, five (5) residential dwelling units totaling 20,653 square feet (approximately 0.06 FAR). The proposed density/intensity of the hotel and single-family units comply with the FAR limitations identified in the Coastal Land Use Plan. 3. The PR category applies to land used or proposed for active public or private recreational use. Permitted uses include parks (both active and passive), golf courses, 15-218 Planning Commission Resolution No. PC2022-022 Page 17 of 43 marina support facilities, aquatic facilities, tennis clubs and courts, private recreation, and similar facilities. The PR designation on this site is applicable to the existing and proposed private tennis club and tennis courts. The density/intensity limitations include incidental buildings, such as maintenance equipment sheds, supply storage, and restrooms, not included in determining intensity limits. The proposed tennis club and ancillary uses are consistent with this land use designation. 4. The Property is part of the 145-acre planned community (PC-47), which has been adopted to regulate developments within the Property and the adjacent Golf Club Site, and is in conformance with the Coastal Land Use Plan designation pursuant to Section 21.26.055(S)(2) of the Local Coastal Program Implementation Plan. 5. The Project conforms to all applicable development standards in the proposed amendment to PC-47, including density/intensity, setbacks, building heights, and parking. 6. The Property is not located in an area known for the potential of seismic activity or liquefaction. All projects are required to comply with the California Building Code ("CBC") and Building Division standards and policies. Geotechnical investigations specifically addressing liquefaction are required to be reviewed and approved prior to the issuance of a building permit. Permit issuance is also contingent on the inclusion of design mitigation identified in the investigations. Construction plans are reviewed for compliance with approved investigations and CBC prior to building permit issuance. 7. Elevations on the Property range from 104 feet up to 120 feet North American Vertical Datum of 1988 (NAVD88) above mean sea level. These site elevations are well above projected sea level rise in Newport Bay for the next 75 years and the site is not subjected to other coastal hazards. 8. The Project is required to develop and implement a Stormwater Pollution Prevention Plan ("SWPPP") since the Project involves clearing, grading, and ground disturbance of more than one acre. Pursuant to Section 21.35.030 (Local Coastal Program Implementation Plan, Water Quality Control, Construction Pollution Prevention Plan) of the NBMC, when a SWPPP is required, a Construction Pollution Prevention Plan ("CPPP") is required to implement temporary Best Management Practices (BMPs) during construction to minimize erosion and sedimentation and to minimize pollution of runoff and coastal waters derived from construction chemicals and materials. A CPPP has been prepared and will be reviewed by the City's Engineer Geologist prior to issuance of grading/building permits for site grading. Construction plans and activities will be required to adhere to the approved CPPP/SWPPP. 9. A Water Quality and Hydrology Plan (WQHP) is required Pursuant to Section 21.35.050 (Local Coastal Program Implementation Plan, Water Quality Control, Water Quality and Hydrology Plan) of the NBMC since the Project is considered a development of water quality concern and includes the development of five dwelling units, more than 10,000 square feet of impervious surface area, and a parking area in excess of 5,000 square feet. The WQHP/WQMP will be reviewed and approved by the City's Engineer Geologist 15-219 Planning Commission Resolution No. PC2022-022 Paqe 18 of 43 prior to the issuance of building permits for site grading. The WQHPNVQMP includes a polluted runoff and hydrologic site characterization, a description of site design BMP's, and documentation of the expected effectiveness of the proposed BMPs. Construction plans will be reviewed for compliance with the approved WQHP/WQMP prior to building permit issuance. 10. An Analysis of the Fiscal and Economic Impacts was prepared on August 29, 2022, by Kosmont Companies to analyze the construction of new visitor accommodations in the coastal zone in accordance with the requirements of Section 21.48.025 (Local Coastal Program Implementation Plan, Standards for Specific Land Uses Visitor Accommodations) of the NBMC. The report provides a feasibility analysis stating that the anticipated average daily room rate for all 41 rooms is approximately $920 and the statewide average daily room rate is $205.69. Therefore, the proposed accommodations are not considered lower cost accommodations. The report considers the specific location of the Property as an inappropriate location for low cost accommodations. Additionally, low cost accommodations are not feasible due to prohibitive land and construction costs. The Property does not currently provide accommodations of any kind and implementation of the Project would not impact low-cost accommodations. While the Project does not include any lower cost rooms, and the Local Coastal Program Implementation Plan defines it as an impact, there is no impact on the provision of lower - cost visitor accommodations in the Coastal Zone. The Project features larger guest facilities to accommodate a higher occupancy per room, kitchens in a majority of the hotel rooms, and separate living rooms with sofa beds, all which offset higher costs of accommodations. Findinq: F. 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. Fact in Support of Finding: The Property is not located between the nearest public road and the sea or shoreline. The Property will not affect the public's ability to gain access to, use, and/or view the coast and nearby recreational facilities. Vertical access to Newport Bay is available via existing public access at 1601 Bayside Drive, which is located approximately 1,600 feet southwest of the subject property. 2. Coastal Land Use Plan, Policy 4.4.1-6 and Figure 4-3 (Coastal Views) identify the closest public view road as Newport Center Drive, located approximately 170 feet east of the Property and the closest public viewpoint as Irvine Terrace Park, located 525 feet south of the Property. Coastal views from these view corridors and viewpoints are directed toward the Newport Bay and the Pacific Ocean. Since the Property is located to the north of Irvine Terrace Park, the Project will not affect coastal views due to its orientation. From Newport Center Drive, there is a zero to 40-foot grade difference to the project area below. The maximum height allowed in PC-47 is 46 feet for the attached 15-220 Planning Commission Resolution No. PC2022-022 Paqe 19 of 43 condominium lofts, 39 feet for the two (2) single-family residences, 30 feet for the tennis clubhouse, and 31 feet for the hotel rooms. Therefore, the majority of the Project would sit below the existing grade elevations along Newport Center Drive, minimizing the visibility of the project site and would not obstruct public coastal views. During construction, construction equipment would be obscured by vegetation and the grade differential so it would not obstruct coastal views from motorists traveling along Newport Center Drive. The Project will not impact coastal views. Vesting Tentative Tract Map Amendment On January 24, 2012, the City Council approved Vesting Tentative Tract Map No. 15347, which authorized the creation of seven separate lots for the tennis club, 5 single-family residences, and 27 hotel rooms, and lettered lots for common areas and a private street. The Applicant proposes an amendment to the vesting tentative tract map to accommodate the Project, which consists of two (2) single -unit residential dwellings, three (3) residential condominiums, 41 hotel rooms, a tennis clubhouse, their common open space areas and a private street to support the proposed uses. The VTMA reflects the combination of two (2) previously divided lots which were intended for two (2) detached single-family residences. This results in the elimination of one lot for a total of six (6) separate lots. No changes to the lots created for common areas and a private street are proposed. The map of the VTMA has also been modified to include residential condominium portion of the Project. In accordance with Section 19.12.070 (Subdivisions, Tentative Map Review, Required Findings for Action on Tentative Maps) of the Newport Beach Municipal Code, and the following finding and facts in support of such findings are set forth - 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: The Project is consistent with the MU-H31PR General Plan designation of the site. 2. The Public Works Department has reviewed the proposed revisions to the approved vesting tentative tract map and determined it is consistent with the Title 19 and applicable requirements of the Subdivision Map Act. 3. Conditions of approval have been included to ensure compliance with Title 19. Finding: B. That the site is physically suitable for the type and density of development. Facts in Support of Finding: 15-221 Planning Commission Resolution No. PC2022-022 Paae 20 of 43 The Property is entirely developed and does not support any environmental resources. 2. The Property is located in the Newport Center and Fashion Island area. The Property is currently improved with a private tennis club. Given its location, this site is ideal for the development of a recreation and mixed -use project as allowed by the General Plan Land Use Element. Finding C. That the design of the subdivision or the proposed improvements will not 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. Fact in Support of Findin : An Addendum to the MND has been prepared and concludes that no significant environmental impacts will result with the Project development of the Property in accordance with the proposed subdivision map revision. 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: The VTMA is required for the subdivision of parcels in order to accommodate the development of the tennis club and courts, two (2) single -unit residential dwellings, and 41 hotel rooms on the Property. All construction for the project will comply with all Building, Public Works, and Fire Codes, which are in place to prevent serious public health problems. Public improvements will be required of the developer per Section 19.28.010 of the NBMC and Section 66411 of the Subdivision Map Act. Compliance with all ordinances of the City and all Conditions of Approval for the Project will ensure that the Project will not cause any serious health problems. 2. All mitigation measures will be implemented as outlined in the Addendum to the MND to ensure the protection of the public health. 3. No evidence is known to exist that would indicate that the planned subdivision pattern will generate any serious public health problems. 15-222 Planning Commission Resolution No. PC2022-022 Pape 21 of 43 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 easements 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. Facts in Support of Finding: The design of the Project will not conflict with any easements acquired by the public at large for access through or use of property within the Property. 2. An easement through the Property will be retained by the City to sewer and utilities purposes. 3. No other public easements for access through or use of the Property have been retained for use by the public at large. Finding: F. 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 is not subject to the Williamson Act since the Property is not considered an agricultural preserve and is less than 100 acres. Finding: G. That, in the case of a `land project" as defined in Section 11000.5 of the California Business and Professions Code: (a) there is an adopted specific plan for the area to be included within the land project; and (b) the decision -making body finds that the proposed land project is consistent with the specific plan for the area. Facts in Support of Finding: 15-223 Planning Commission Resolution No. PC2022-022 Paae 22 of 43 The Property is not a "land project" as defined in Section 11000.5 of the California Business and Professions Code. 2. The Property is not located within a specific plan area. Finding: H. 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. Fact in Support of Finding: The VTMA and improvements are subject to Title 24 of the California Building Code that requires new construction to meet minimum heating and cooling efficiency standards depending on location and climate. The Newport Beach Building Division enforces Title 24 compliance through the plan check and inspection process. Findinq 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: The proposed amendment to Vesting Tentative Tract Map 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. The Project does not involve the elimination of residential rooms and therefore will not affect the City's ability to meet its share of housing needs. 2. Public services are available to serve the Project and the Addendum to the MND prepared for the Project indicates that the project's potential environmental impacts are properly mitigated. Finding.- J. 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. Facts in Support of Finding: 1. Waste discharge into the existing sewer system will be not violate Regional Water Quality Control Board (RWQCB) requirements. 15-224 Planning Commission Resolution No. PC2022-022 Paqe 23 of 43 2. Sewer connections have been conditioned to be installed per City Standards, the applicable provisions of Chapter 14.24 (Sewer Connection, Permits), and the latest revision of the Uniform Plumbing Code. Finding- K. 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. Facts in Support of Finding: The Property is located in the Coastal Zone and subject to a coastal development permit. 2. The Property does not have access to any beaches, shoreline, coastal waters, tidelands, coastal parks or trails. 3. Facts in support of Findings E and F are hereby incorporated by reference. Limited Term Permit In accordance with Section 20.52.040 (Planning and Zoning, Permit Review Procedures, Limited Term Permits) of the Newport Beach Municipal Code, the following findings and facts in support of such findings are set forth: Finding: A, The operation of the limited duration use at the location proposed and within the time period specified would not be detrimental to the harmonious and orderly growth of the City, nor 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 requested limited duration use; Facts in Support of Finding: The limited term permit will allow two (2) temporary modular trailers and portable toilets. Both modular trailers are approximately 33 feet long and 13 feet wide. One (1) modular trailer is proposed to be used as a construction office located at the southwest portion of the Property and will be staged at this location through the entire duration of the Project. The second modular office is proposed to be used as a temporary office for tennis club operations and will be located on the easterly portion of the Property through the construction phase of the project (approximately 16 months after construction begins). The portable toilets are proposed to serve the temporary tennis club office and located nearby. 15-225 Planning Commission Resolution No. PC2022-022 Page 24 of 43 2. The operation of the temporary modular trailers is proposed to exceed 90 days from the date of the permit. The construction office is proposed to be staged for the duration of all construction activities, which is estimated to be approximately 20 months. The tennis club office is proposed to be staged for approximately 16 months, and will be removed upon completion of the Project. Finding- B. The subject lot is adequate in size and shape to accommodate the limited duration use without material detriment to the use and enjoyment of other properties located adjacent to and in the vicinity of the lot, Facts in Support of Finding: The Property is approximately seven (7) acres in size. Based on the construction phasing plan, there is adequate area to accommodate the proposed modular trailers and portable toilets throughout the various phases of construction. The construction trailer will be located within an area which is fenced off from public view and access. Finding: C. The subject lot is adequately served by streets or highways having sufficient width and improvements to accommodate the kind and quantity of traffic that the limited duration use would or could reasonably be expected to generate, - Facts in Support of Finding: The Property has an existing parking lot with two (2) entrances currently taken from Clubhouse Drive, which has a westerly outlet to East Coast Highway and an easterly outlet to Granville Drive and Newport Center Drive. 2. During the various phases of construction, the easterly entrance to the parking lot will remain available to the public for parking and will provide direct access for the modular office trailer and portable toilets, while the westerly entrance will be for construction access only. The construction trailer is intended for construction use only and not for the public. There are no traffic issues anticipated. Finding: D. Adequate temporary parking to accommodate vehicular traffic to be generated by the limited duration use would be available either on -site or at alternate locations acceptable to the Zoning Administrator, and 15-226 Planning Commission Resolution No. PC2022-022 Paqe 25 of 43 Facts in Support of Finding: The proposed trailers will not create additional parking demand since it will be utilized as offices for construction activities and employees displaced during the renovation of the tennis clubhouse. 2. A portion of the existing parking lot will remain, with access available on the easterly side of the lot from Granville Drive and Newport Center Drive. The remaining parking lot provides adequate parking for employees and members of the tennis club. Finding: E. The limited duration use is consistent with all applicable provisions of the General Plan, any applicable specific plan, the Municipal Code, and other City regulations. Facts in Support of Finding: 1. The temporary trailers are conditioned to comply with all applicable provisions of the General Plan, Municipal Code, and other City regulations. 2. The Property is not located within a specific plan area. Develor)ment Agreement Amendment On March 27, 2012, the City Council of the City of Newport Beach ("City") adopted Ordinance No. 2012-3 approving Development Agreement No. DA2008-001 ("Agreement") between the City and the Applicant for the Approved Project. The Agreement was executed and recorded, as document number 2014000036369 on January 29, 2014, with a ten-year term. On July 12, 2022, the City Council adopted Ordinance No. 2022-16, approving First Amendment to Agreement to extend the term of the Agreement by one (1) year. Finding: In accordance with Section 15.45.020(A)(2)(c) (Buildings and Construction, Development Agreement, Development Agreement Required) of the NBMC, an amendment to the DA is required as the Project, which includes an amendment to PC-47 and a General Plan Amendment to increase the number of hotel rooms from 27 to 41 rooms, which is new non- residential development in Statistical Area L1 (Newport Center/Fashion Island). Additionally, the Applicant requests an additional 10-year term of Agreement, pursuant to Section 15.45.070 (Buildings and Construction, Development Agreement, Amendment/Cancellation) of the NBMC. The Second Amendment to the Agreement satisfies the requirements of Chapter 15.45 (Buildings and Construction, Development Agreements) of the NBMC as follows: 15-227 Planning Commission Resolution No, PC2022-022 Paae 26 of 43 Facts in Support of Finding: 1. The Second Amendment provides assurance that the Applicant may proceed with the Project in accordance with existing policies, rules and regulations, and conditions of approval. Additionally, the Second Amendment to the Agreement helps the Applicant avoid a waste of resources and escalated costs of the Project while encouraging a commitment to private participation in comprehensive planning. 2. The Second Amendment to the Agreement specifies the term of Agreement to be extended for a period of ten (10) years, as well as the updated permitted uses, density and intensity, and maximum height and size of proposed buildings, consistent with the Approved Project. Additionally, the Second Amendment to the Agreement includes all mandatory elements, including public benefits that are appropriate to support conveying the vested development rights consistent with the City's General Plan, NBMC, and Government Code Sections 65864 et seq. 3. Public benefits include the payment of ninety-three thousand dollars ($93,000) per each residential dwelling unit and ten dollars ($10) per square foot of construction for the tennis clubhouse. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby recommends the followings to the City Council: a. Adopt Mitigated Negative Declaration Addendum No. ND2022-001 to Mitigated Negative Declaration No. ND2010-008 and Errata to Mitigated Negative Declaration No. ND2010-008 (SCH 2O10091052), as depicted in Exhibit "A"; b. Approve General Plan Amendment, as depicted in Exhibit B; c. Approved Local Coastal Program Implementation Plan Amendment; as depicted in Exhibit C d. Approve Planned Community Development Plan Amendment, as depicted in Exhibit D; e. Approve amendment to Major Site Development Review No. SD2011-002, with conditions of approval as depicted in Exhibit F; f. Approve amendment to Coastal Development Permit No. CD2017-039 with conditions of approval as depicted in Exhibit F; g. Approve amendment to Vesting Tentative Tract Map No. NT2005-003, with conditions of approval as depicted in Exhibit F 15-228 Planning Commission Resolution No. PC2022-022 Page 27 of 43 h. Approve amendment to Limited Term Permit No. XP2011-004, with conditions of approval as depicted in Exhibit F; and i. Approve Second Amendment to Development Agreement No. DA2008-001, as depicted in Exhibit E. PASSED, APPROVED, AND ADOPTED THIS 8T" DAY OF SEPTEMBER, 2022. AYES: Ellmore, Harris, Kleiman, Lowrey, and Weigand NOES: None RECUSED: Weigand ABSENT: Klaustermeier BY: Lauren Kleiman, Chairman BY: '-'ZZ Mark Rosene, Secretary 15-229 Planning Commission Resolution No. PC2022-022 Pape 28 of 43 EXHIBIT "A" ADDENDUM TO MITIGATED NEGATIVE DECLARATION NO. ND2010-008 AND ERRATA TO MITIGATED NEGATIVE DECLARATION NO. ND2010-008 (SCH NO. 2010091052) Available separately due to bulk at: www.newportbeachca.g oq v/cegaa 15-230 Planning Commission Resolution No. PC2022-022 Paqe 29 of 43 EXHIBIT "B" GENERAL PLAN AMENDMENT TO ANOMALY NO. 46 OF TABLE LU2 OF THE 2006 NEWPORT BEACH GENERAL PLAN LAND USE ELEMENT 15-231 Anomaly Number Statistical Area Land Use Designation Development Limit (so Development Limit Other Additional Information 46 L1 MU-H31PR 3,725 8 Tennis Residential permitted Courts in accordance with MU-H3 41 Hotel *27 rooms converted Rooms* from 17 tennis courts per Council Resolution 2012-10 and 14 rooms per General Plan Amendment PA2022- 260 15-232 Planning Commission Resolution No. PC2022-022 Paae 30 of 43 EXHIBIT "C" LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN AMENDMENT 15-233 Local Coastal Program Implementation Plan Amendment Related to Development Standards of the Tennis Club portion within the Newport Beach Country Club Planned Community (PC-47) (PA2021-260) Amend Section 21.26.055.S (Newport Beach Country Club) of Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code to read as follows: S. Newport Beach Country Club (PC-47). 2. Tennis Club. a. Density/intensity limit: seven eight (8) tennis courts; and three thousand seven hundred twenty-five (3,725) square foot clubhouse. b. Height: thirty (30) feet for clubhouse. c. Parking: twenty-eight (28) spaces thirty-two (32) spaces 3. Residential. a. Detached Residential (Villas) i. Dens ityli ntens ity limit: two single-family dwelling units. ii. Development Standards: Villa Designation Villa A (TTM Lot #1) Villa B (TI'M Lot #2) Lot Size 5,000 square feet minimum Lot Coverage (Maximum) 70% 65% 39 feet, measured in accordance with the Height and Grade Building Height definition of Section 2.0 General Conditions and Regulations Building Side Yard Setbacks 3 feet minimum Building Front and Rear Yard 5 feet minimum Setbacks Enclosed Parking Space for 2 2 Each Unit Open Guest Parking Space One space - could be located on the private driveway — No for Each Unit overhang to the private street/cul-de-sac is allowed 15-234 b. Attached Residential (Condominiums) i. Density/intensity limit: three (3) attached residential units. ii. Setbacks: five (5) feet from any property line. iii. Height: forty-six (46) feet (to be located atop of the 2-story hotel buildings). iv. Parking: three (3) enclosed spaces and one guest space per dwelling unit. 4 (The BwAgak ..s Hotel a. Density/Intensity Limit: forty-one (41) short-term guest rental Units rooms. The maximum total allowable gross floor area for the hotel rooms shall be twenty eight tl;Gussand three huRdFed (28,300) forty-seven thousand four hundred eighty -flour (47,484) square feet with a two thousand two hundred (2,200) square - foot concierge and guest center, four thousand six hundred eighty-six (4,686) square feet of ancillary hotel uses, and a seven thousand five hundred (7,500) square -foot spa facility. b. Setbacks: five feet from any property line. c. Height: thirty-one (31) feet. d. Parking: . forty-one (41) parking spaces. 15-235 Planning Commission Resolution No. PC2022-022 Page 31 of 43 EXHIBIT "D" NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY DEVELOPMENT PLAN AMENDMENT 15-236 Newport Beach Country Club Planned Community Development Plan Adoption: March 27, 2012, Ordinance No. 2012-2 Amendment: , 2022, Ordinance No._ 15-237 TABLE OF CONTENTS 1.0 Introduction and Purpose............................................................................... 4 2.0 General Conditions and Regulations.............................................................. 5 3.0 Land Use and Development Regulations....................................................... 10 3.1 Golf Club.............................................................................................. 10 A. Golf Course.................................................................................... 10 B. Golf Clubhouse and Ancillary Uses ................................................ 10 1. Building Area............................................................................. 10 2. Building Height.......................................................................... 10 3. Permitted Ancillary Uses........................................................... 10 4. Parking...................................................................................... 11 5. Fencing..................................................................................... 11 3.2 Tennis Club.......................................................................................... 11 A. Tennis Courts................................................................................. 11 1. Number of Courts...................................................................... 11 B. Tennis Clubhouse and Ancillary Uses ............................................ 12 1. Building Area............................................................................. 12 2. Building Height.......................................................................... 12 3. Permitted Ancillary Uses........................................................... 12 4. Parking...................................................................................... 12 3.3 Thp �r Residential .......... .............. 12 1. NuFnbeF Of Detached Residential ................................... 13 2. Attached Residential ....................... 14 14 The 6 Figalaws,Hotel................... ................... :........... ..... :................ .. 14 1. Number of Units Rooms........................................................... 14 2. Permitted Ancillary Uses........................................................... 14 3. Building Area............................................................................. 15 4. Building Height.......................................................................... 15 5. Building Setbacks...................................................................... 15 6. Parking...................................................................................... 15 3.5 Signs.................................................................................................... 15 A. Sign Allowance............................................................................... 15 B. Sign Standards............................................................................... 16 4.0 Site Development Review.............................................................................. 17 4.1 Purpose............................................................................................... 17 4.2 Application............................................................. 4.3 Findings............................................................................................... 17 4.4 Contents.............................................................................................. 18 4.5 Public Hearing - Required Notice........................................................ 18 4.6 Expiration and Revocation Site Plan Review Approvals ...................... 19 2 15-238 4.7 Fees..................................................................................................... 19 4.8 Minor Changes by the Community Development Director ................... 19 LIST OF EXHIBITS Exhibit Name Exhibit Number VicinityAerial Map............................................................................................... A Conceptual Master Site Plan............................................................................... B LIST OF TABLES Table Name Page The Villas Development Standards...................................................................... 13 K3 15-239 1.0 INTRODUCTION AND PURPOSE The Newport Beach Country Club Planned Community District (the PCD) is composed of the Golf Club, Tennis Club, Bungalows and Villas facilities, totaling approximately 4-33 140 acres. The PCD has been developed in accordance with the Newport Beach General Plan and is consistent with the Local Coastal Land Use Plan. The purpose of this PCD is to provide for the classification and development of coordinated, cohesive, comprehensive planning project with limited mixed uses, including the private Ggolf Gclub, -Ttennis Cclub, 27 short teFm FeRtal HRits 41-room boutique hotel called the Bungalews with a spa/fitness area center and ancillary uses, and 5 GeMi-GUStG Y' single „nit residential dwellings units called the VMas. Whenever the regulations contained in the PCD Regulations conflict with the regulations of the Newport Beach Municipal Code, the regulations contained in the PCD Regulations shall take precedence. The Newport Beach Municipal Code shall regulate all development within the PCD when such regulations are not provided within the PCD Regulations. EI 15-240 2.0 GENERAL CONDITIONS AND REGULATIONS 1. Alcoholic Beverage Consumption The consumption of alcoholic beverages within the PCD shall be in compliance with the State of California Department of Alcoholic Beverage Control and the Newport Beach Municipal Code. A use permit shall be required if the establishment operates past 11:00 p.m. any day of the week and a minor use permit shall be required if the establishment operates until 11:00 p.m. any day of the week. 2. Amplified Music All amplified music played after 10:00 p.m. within the PC shall be confined within the interior of a building unless a Special Events Permit is obtained. 3. Archaeological/Paleontological Resources Development of the site is subject to the provisions of City Council Policies K-5 and K-6 regarding archaeological and paleontological resources. 4. Architectural Design All development shall be designed with high quality architectural standards and shall be compatible with the surrounding uses. The development should be well -designed with coordinated, cohesive architecture and exhibiting the highest level of architectural and landscape quality in keeping with the PCD's prominent location in the Newport Center Planning Area. Massing offsets, variation of roof lines, varied textures, openings, recesses, and design accents on all building elevations shall be provided to enhance the architectural style. Architectural treatments for all ancillary facilities (i.e. storage, truck loading and unloading, and trash enclosures) shall be provided. 5. Building Codes Construction shall comply with applicable provisions of the California Building Code and the various other mechanical, electrical and plumbing codes related thereto as adopted by the Newport Beach Municipal Code. 6. Exterior Storage Areas There shall be no exterior storage areas permitted with the exception of the greenskeeper/maintenance area which shall be enclosed by a minimum six-foot plastered block wall. 5 15-241 7. Flood Protection Development of the subject property will be undertaken in accordance with the flood protection policies of the City. 8. Grading and Erosion Control Grading and erosion control measures shall be carried out in accordance with the provisions of the Newport Beach Excavation and Grading Code and shall be subject to permits issued by the Community Development Department. 9. Gross Floor Area Gross floor area shall be defined as the total area of a building including the surrounding exterior walls. 10. Height and Grade The height of any structure within the PCD shall not exceed fifty (50) feet, unless otherwise specified. The height of a structure shall be the vertical distance between the highest point of the structure and the grade directly below. In determining the height of a sloped roof, the measurement shall be the vertical distance between the grade and the midpoint of the roof plane, provided that no part of the roof shall be extend more than five (5) feet above the permitted height in the height limitation zone, and any amendments shall be subject to the review and approval of the Community Development Director 11. Landscaping/Irrigation Landscaping and irrigation shall be provided in all areas not devoted to structures, parking lots, driveways, walkways, and tennis courts to enhance the appearance of the development, reduce heat and glare, control soil erosion, conserve water, screen adjacent land uses, and preserve the integrity of PCD. Landscaping and irrigation shall consist of a combination of trees, shrubs, groundcover and hardscape improvements. Landscaping shall be prepared in accordance with the Landscaping Standards and Water -Efficient Landscaping Sections of the Newport Beach Municipal Code and installed in accordance with the approved landscape plans prepared by a licensed landscape architect. 12. Lighting — Outdoor All new outdoor lighting shall be designed, shielded, aimed, located and maintained to shield adjacent uses/properties and to not produce glare onto adjacent uses/properties. Lighting plans shall be prepared in compliance with the Outdoor Lighting Section of the 0 15-242 Newport Beach Municipal Code and shall be prepared by a licensed electrical engineer. All lighting and lighting fixtures that are provided shall be maintained in accordance with the approved lighting plans. 13. Lighting — Parking & Walkways All lighting and lighting fixtures that are provided shall be maintained in accordance with the approved lighting plans. Light standards within parking lots shall be the minimum height required to effectively illuminate the parking area and eliminate spillover of light and glare onto adjoining uses/properties and roadways. Parking lots and walkways accessing buildings shall be illuminated with a minimum of 0.5 foot-candle average on the driving or walking surface during the hours of operation and one hour thereafter. Lighting plans shall be prepared in compliance with the Outdoor Lighting Section of the Newport Beach Municipal Code and shall be prepared by a licensed electrical engineer. If the applicant wishes to deviate from this lighting standard, a lighting plan may be prepared by the applicant and submitted to the Community Development Director for review and approval. 14. Loading Areas for Non -Residential Uses All loading and unloading of goods delivery shall be performed onsite. Loading platforms and areas shall be screened from public view. 15. Parking Areas Parking spaces, driveways, maneuvering aisles, turnaround areas, and landscaping areas of the parking lots shall be kept free of dust, graffiti, and litter. All components of the parking areas including striping, paving, wheel stops, walls, and light standards of the parking lots shall be permanently maintained in good working condition. Access, location, parking space and lot dimensions, and parking lot improvements shall be in compliance with the Development Standards for Parking Areas Section of the Newport Beach Municipal Code. 16. Property Owner Approval Written property owner approval shall be required for the submittal of any site development review application and/or prior to grading and/or building permit issuance. 17. Outdoor Paging Outdoor paging shall be permitted at the Ggolf Gclub to call individuals to the tees and at the Ttennis Gclub to call points during tennis tournaments. 7 15-243 18. Sewage Disposal Sewage disposal service facilities for the PCD will be provided by Orange County Sanitation District No. 5 and shall be subject to applicable regulations, permits and fees as prescribed by the Sanitation District. 19. Screening of Mechanical Equipments All new mechanical appurtenances (e.g., air conditioning, heating, ventilation ducts and exhaust vents, swimming pool and spa pumps and filters, transformers, utility vaults and emergency power generators) shall be screened from public view and adjacent land uses. The enclosure design shall be approved by the Community Development Department. All rooftop equipment (other than vents, wind turbines, etc.) shall be architecturally treated or screened from off -site views in a manner compatible with the building materials prior to final building permit clearance for each new or remodeled building. The mechanical appurtenances shall be subject to sound rating in accordance with the Exterior Noise Standards Section of the Newport Beach Municipal Code. Rooftop screening and enclosures shall be subject to the applicable height limit. 20. Screening of the Villas residential units from tennis courts Adequate buffering between the Villas residential units and tennis courts shall be provided and subject to the Site Development Review process. The exterior perimeter of the tennis courts facing Granville Condominiums, Granville Drive, and the Ttennis Gclubhouse parking lot shall be screened by a minimum ten -foot -high chain link fence covered by a wind screen. Wind screen shall be maintained in good condition at all time. 21. Screening of the Pool/Spa Equipment All pool and/or spa equipment shall be enclosed by a minimum five-foot high block wall plastered or otherwise textured to match the building. 22. Special Events Temporary special community events, such as such as PGA Senior Classic golf tournaments, Team Tennis, Davis Cup Matches, and other similar events, are permitted in the PCD, and are subject to the Special Events Chapter of the Newport Beach Municipal Code. Temporary exterior storage associated with approved special events may be permitted provided it is appropriately screened and regulated with an approved Special Event Permit. 15-244 23. Temporary Structures and Uses Temporary structures and uses, including modular buildings for construction -related activities are permitted. 24. Trash Container Storage for Residential Dwellings Trash container storage shall be out of view from public places, and may not be located in the required parking areas. If trash container storage areas cannot be located out of public view, they shall be screened from public view. Screening shall consist of fences, walls, and landscaping to a height at least 6 inches above the tops of the containers. 25. Trash Enclosures for Non -Residential Uses All trash enclosures for non-residential uses shall be provided and in accordance with the Solid Waste and Recyclable Materials Storage of the Newport Beach Municipal Code. 26. Tennis Club Site Phasing Plan - The phasing plan for the tennis club site which consists of the tennis club, "'i& residential units and 136IRgalews hotel rooms shall be subject to a site development review process. 27. Water Service Water service to the PCD will be provided by the City of Newport Beach and will be subject to applicable regulations, permits and fees as prescribed by the City. 0 15-245 3.0 LAND USE AND DEVELOPMENT REGULATIONS 3.1 Golf Club Refer to Exhibit B - Conceptual Master Site Plan for the general location and placement of the golf course and clubhouse. A. Golf Course An 18-hole championship golf course and related facilities (i.e. putting green, driving range, snack bar, starter shack, restroom facilities, etc.). B. Golf Clubhouse and Ancillary Uses 1. Building The maximum allowable gross floor area for a golf clubhouse building shall be 56,000 square feet, exclusive of any enclosed golf cart storage areas ramp and washing area. The greens keeperlmaintenance buildings, snack bar, separate golf course restroom facilities, starter shack, and similar ancillary buildings are exempt from this development limit. 2. Building Height The maximum allowable building height for the Golf Clubhouse shall be 50 feet and shall be measured in accordance with the Height and Grade definition of Section 2.0 General Conditions and Regulation of the PCD. 3, Permitted Ancillary Uses The following ancillary uses are allowed: • Golf shop • Administrative Offices • Dining, and event areas • Kitchen & Bar areas Banquet Rooms • Men and Women's Card Rooms • Health and fitness facility • Restroom and Locker facilities • Golf Club storage areas • Employee lounge/lunch areas • Meeting rooms • Golf Cart Parking Storage and Washing Area ikel 15-246 • Separate Snack Bar • Separate Starter Shack • Separate Golf Course Restrooms • Hand Carwash Area • Greenskeeper Maintenance Facility • Temporary Construction Facilities • Guard House • Others (subject to an approval of the Community Development Director) 4. Parking Parking for the Golf Course and Golf Clubhouse shall be in accordance with following parking ratios (source: from Table 2 of the Circulation and Parking Evaluation by Kimley-Horn and Associates, Inc., September 2009 for Newport Beach Country Club — Clubhouse Improvement Project): Golf Course. 8 spaces per hole Golf Clubhouse: Dining, assembly & meeting rooms: 1 per 3 seats or 1 per 35 square feet Administrative Office: 4 per 1,000 square feet Pro Shop: 4 per 1,000 square feet Maintenance Facility: 2 per 1,000 square feet Health and Fitness Facility: 4 per 1,000 square feet The design of the parking lot and orientation of vehicular aisles and parking spaces shall be subject to the review and approval of the City Traffic Engineer and Community Development Director. 5. Fencing Golf Course perimeter fencing shall be wrought -iron with a maximum permitted height of six (6) feet. 3.2 Tennis Club Refer to Exhibit B - Conceptual Master Site Plan for the general location and placement of the tennis courts and clubhouse. A. The Tennis Courts 1. Number of courts 11 15-247 The maximum allowable tennis courts shall be seven eight lighted tennis courts (s* seven lighted championship courts and one lighted stadium - center court). B. Tennis Clubhouse and Ancillary Uses 1. Building Area The maximum allowable gross floor area for the Tennis Clubhouse shall be 3,725 square feet. 2. Building Height The maximum allowable building height for the Tennis Clubhouse shall be 30 feet and shall be measured in accordance with the Height and Grade definition of Section 2.0 General Conditions and Regulations of the PCD. 3. Permitted Ancillary Uses The following ancillary uses are allowed: • Tennis Shop • Administrative Offices • Concessions • Restroom and Locker facilities • Storage areas • Spectator seating • Others (subject to an approval of the Community Development Director) 4. Parkinq Parking for the Tennis Clubhouse and Courts shall be a minimum of 2-8 32 parking spaces. 3.3. Tt's Residential Refer to Exhibit B - Conceptual Master Site Plan for the general location and placement of theylas units. 12 15-248 A. Detached Residential (The Villas) 1. Number of Units The maximum allowable number of single-family residential units shall be five-(5} two (2). 2. Development Standards The following development standards shall apply to the Villas: The Villas Development Standards Table Villa Villa A Villa B Designation TTM Lot #1 TTM Lot #2 Lot Size 5,000 square feet minimum Lot Coverage 70% 66% (Maximum) 39 feet, measured in accordance with the Building Height Height and Grade definition of Section 2.0 General Conditions and Regulations Building Side 3 feet minimum Yard Setbacks Building Front and Rear Yard 5 feet minimum Setbacks Enclosed Parking Space for Each 2 2 Unit Open Guest One space - could be located on the Parking Space for private driveway — No overhang to the Each Unit private street/cul-de-sac is allowed 13 15-249 B. Attached Residential 1. Number of Units The maximum allowable number of attached residential units shall be three (3). 2. Buildinq Setbacks The building setback shall be a minimum of five (5) feet from any property line. 3. Building Height The maximum allowable building height for attached residential units to be located atop of the 2-story hotel buildings shall be 46 feet, measured in accordance with the Height and Grade definition of Section 2.0 General Conditions and Regulations. 4. Parkinq Parking for the attached residential units shall be a minimum of 3 enclosed parking spaces and one guest parking space per unit. 3.4. The 13unqalows Hotel Refer to Exhibit B - Conceptual Master Site Plan for the general location and placement of the bungalows, concierge and guest center, and spa facility. 1. Number of Units Rooms The maximum allowable number of the Bungalows rooms shall be 2-7 41, to be built in a clustered setting of single and two-story buildings. 2. Permitted Ancillary Uses The following ancillary uses are allowed: • Administrative Offices • Concierge office and guest meeting facility • Performance Therapy Center • Spa and Fitness Center • Swimming pool and Jacuzzi m in^drinks, SRaGks light hrca;lrfac} ;nrl Inr h i}omc 14 15-250 • Yoga Pavilion 3. Building Area The maximum allowable gross floor area for the bungalows hotel rooms shall be 2999 47,484 square feet with a 2,200 square foot concierge & guest center, 4,686 square feet of ancillary hotel uses, and a 7,500 square -foot spa facility. 4. Building Height The maximum allowable building height for the bungalows hotel rooms shall be 31 feet, measured in accordance with the Height and Grade definition of Section 2.0 General Conditions and Regulations of the PCD. 5. Building Setbacks The building setback requirement shall be a minimum of 5 feet from any property line. 6. Parking Parking for the meows hotel rooms shall be a minimum of 34 41 parking spaces located in proximity to the use. 3.5 Signs A. Sign Allowance 1. One (1) single or double-faced, ground -mounted entrance identification sign shall be allowed at Newport Beach Tennis Club's main entrance (Country Club Drive and Irvine Terrace). Total maximum signage area shall not exceed seventy-five (75) square feet and shall not exceed five (5) feet in height. 2. One (1) single or double-faced, ground -mounted entrance identification sign shall be allowed at or near the vicinity of the Newport Beach Country Club's secondary entrance (Granville). Total maximum signage area shall not exceed seventy-five (75) square feet and shall not exceed five (5) feet in height. 3. Building identification signs shall be allowed; one for each street frontage. If freestanding, this sign type shall not exceed a maximum height of five (5) feet in height. The maximum signage area shall not exceed seventy (70) square feet. 4. Vehicular and pedestrian directional signs shall be allowed. This sign type may occur as a single -faced or double-faced sign. The 15 15-251 sign shall be sized to allow for proper readability given the number of lines of copy, speed of traffic, setback off the road and viewing distance. This sign type shall not exceed a maximum of six (6) feet in height. 5. One (1) single or double faced, ground -mounted identification sign shall be allowed at the entrance road to the Bungalows. Total maximum signage area shall not exceed seventy-five (75) square feet and shall not exceed five (5) feet in height and fifteen (15) feet in length. B. Sign Standards 1. The design and materials of all permanent signs in the Newport Beach Country Club Planned Community District shall be in accordance with Sign Section 3.5, unless otherwise approved by the Community Development Director. 2. All permanent signs shall be subject to a sign permit issued by the Community Development Department. 3. All signs shall be subject to the review of the City Traffic Engineer to ensure adequate sight distance in accordance with the provisions of the Newport Beach Municipal Code. 4. Sign illumination is permitted for all sign types. No sign shall be constructed or installed to rotate, gyrate, blink or move, or create the illusion of motion, in any fashion. 5. All permanent signs together with the entirety of their supports, braces, guys, anchors, attachments and decor shall be properly maintained, legible, functional and safe with regards to appearance, structural integrity and electrical service. 6. Temporary signs that are visible from any public right-of-way shall be allowed up to a maximum of sixty (60) days and subject to a temporary sign permit issued by the Community Development Department. 7. If the applicant wishes to deviate from the sign standards identified herein, a comprehensive sign program may be prepared or a modification permit application may be submitted for review and consideration by the Zoning Administrator in accordance with the applicable provisions of the Newport Beach Municipal Code. W. 15-252 4.0 SITE DEVELOPMENT REVIEW 4.1 Purpose The purpose of the Site Development Review process is to ensure new development proposals within the Newport Beach Country Club Planned Community Development are consistent with the goals and policies of the General Plan, provisions of this Planned Community Development Plan, the Development Agreement and the findings set forth below in sub -section 4.3. 4.2 Application An approval of Site Development Review application by the Planning Commission shall be required for the construction of any new structure prior to the issuance of a grading or building permit or issuance of an approval in concept for Coastal Commission. Signs, tenant improvements to any existing buildings, kiosks, and temporary structures are exempt from the site development review process and subject to the applicable City's permits. The decision of Planning Commission is the final, unless appealed in accordance with the Newport Beach Municipal Code. 4.3. Findings In addition to the general purposes set forth in sub -section 4.1 and in order to carry out the purposes of this chapter as established by said section, the Site Development Review procedures established by this Section shall be applied according to and in compliance with the following findings: The development shall be in compliance with all other provisions of the Planned Community District Plan; 2. The development shall be compatible with the character of the neighboring uses and surrounding sites and shall not be detrimental to the orderly and harmonious development of the surroundings and of the City; 3. The development shall be sited and designed to maximize the aesthetic quality of the project as viewed from surrounding roadways and properties, with special consideration given to the mass and bulk of buildings and the streetscape on Coast Highway; and 17 15-253 4. Site plan and layout of buildings, parking areas, pedestrian and vehicular access ways, landscaping and other site features shall give proper consideration to functional aspects of site development. 4.4. Contents The Site Development Review application shall include all of the information and materials specified by the Community Development Director and any additional information review by the Planning Commission in order to conduct a thorough review of the project in question. The following plans/exhibits may include, but not limited to the following: 1. An aerial map showing the subject property, adjacent properties and identifying their uses. 2. Comprehensive elevations and floor plans for new structures with coordinated and complimentary architecture, design, materials and colors. 3. A parking and circulation plan showing golf cart and pedestrian paths in addition to streets and fire lanes. 4. A comprehensive, cohesive and coordinated preliminary landscape plan. 5. A comprehensive, cohesive and coordinated lighting plan showing type, location and color of all exterior lighting fixtures. 6. Comprehensive text and graphics describing the design philosophy for the architecture, landscape architecture, material and textures, color palette, lighting, and signage. 7. Text describing drainage and water quality mitigation measures. 8. A statement that the proposed new structure is consistent with the goals, policies, and actions of the General Plan and Planned Community Development Plan. 4.5 Public Hearing —Required Notice A public hearing shall be held on all site development review applications. Notice of such hearing shall be mailed not less than ten (10) days before the hearing date, postage prepaid, using addresses from the last equalized assessment roll or, alternatively, from such other records as contain more recent addresses, to owners of property within a radius of three hundred (300) feet of the exterior boundaries of the subject property. It shall be the responsibility of the applicant to obtain and provide to the City the names and addresses of owners as required by this Section. In addition to the mailed notice, such hearing shall be posted in m 15-254 not less than two (2) conspicuous places on or close to the property at least ten (10) days prior to the hearing. 4.6 Expiration and Revocation Site Development Review Approvals 1. Expiration. Any site development review approved in accordance with the terms of this planned community development plan shall expire within twenty-four (24) months from the effective date of final approval as specified in the Time Limits and Extensions Section of the Newport Beach Municipal Code, unless at the time of approval the Planning Commission has specified a different period of time or an extension is otherwise granted. 2. Violation of Terms. Any site development review approved in accordance with the terms of this planned community development plan may be revoked if any of the conditions or terms of such site development review are violated or if any law or ordinance is violated in connection therewith. 3. Public Hearing. The Planning Commission shall hold a public hearing on any proposed revocation after giving written notice to the permittee at least ten (10) days prior to the hearing, and shall submit its recommendations to the City Council. The City Council shall act thereon within sixty (60) days after receipt of the recommendation of the Planning Commission. 4.7. Fees The applicant shall pay a fee as established by Resolution of the Newport Beach City Council to the City with each application for Site Development Review under this planned community development plan. 4.8 Minor Changes by the Director The following minor changes to an approved site plan may be approved by the Director in compliance with Section 20.54.070 (Changes to an approved project) of the Newport Beach Municipal Code: a) Minor relocation of any proposed structure. b) Reduction in the square footage of any structure and a commensurate reduction in required parking, if applicable. c) Reconfiguration of the golf clubhouse parking lot, including drive aisles and/or parking spaces, subject to review and approval of the City Traffic Engineer. d) Reconfiguration of parking lot landscaping. e) Modification of the approved architectural style. f) Any other minor change to the site plan provided it does not 19 15-255 increase any structure area, height, number of units, number of hotel rooms, and/or change of use. 2. Any proposed changes that are not deemed minor shall be subject to review and approval by the Planning Commission. 20 15-256 Exhibit A 21 15-257 Exhibit B oQ' . a • 1 ti • oQ7 r r A ! �Q r r ` �Q r _A o • y�P • •~ • Golf Course • • Golf Clubhouse -4, • & Parking Lot A r }�WY F piy . r 22 • • Tennis Clubhouse, r Hotel, & Residential j C#] FI 899(t 15-258 Planning Commission Resolution No. PC2022-022 Paae 32 of 43 EXHIBIT "E" SECOND AMENDMENT TO DEVELOPMENT AGREEMENT 15-259 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Attn: Citv Clerk (Space Above This Line Is for Recorder's Use Only) This First Amendment is recorded at the request and for the benefit of the City of Newport Beach and is exempt from the payment of a recording fee pursuant to Government Code §§ 6103 and 27383. SECOND AMENDMENT TO DEVELOPMENT AGREEMENT between CITY OF NEWPORT BEACH and GOLF REALTY FUND CONCERNING PROPERTIES LOCATED AT TENNIS CLUB AT NEWPORT BEACH WITHIN THE NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY DISTRICT 15-260 SECOND AMENDMENT TO DEVELOPMENT AGREEMENT (Pursuant to California Government Code Sections 65864-65869.5) This SECOND AMENDMENT TO DEVELOPMENT AGREEMENT (the "Second Amendment") is entered into and effective on the date it is recorded with the Orange County Recorder ("'Effective Date") by and between the CITY OF NEWPORT BEACH ("City"), and GOLF REALTY FUND, a California limited partnership ("Property Owner"). City and Property Owner are sometimes collectively referred to in this Second Amendment as the "Parties" and individually as a "Party." RECITALS A. Property Owner is the managing owner of and owns a fee interest in title to that certain real property located in the City of Newport Beach, County of Orange, State of California which is more particularly described in the legal description attached as Exhibit "A" and depicted on the site map attached hereto as Exhibit "B" ("Property"). The Property consists of approximately seven (7) acres within the area shown on the City's Zoning Map as the Newport Beach Country Club Planned Community District. The Property comprises the Tennis Club at Newport Beach site shown on Exhibit "B" which consists of The Villas Sub -Area, The Tennis Club Sub -Area, and The Bungalows Sub -Area. B. City and Property Owner entered into that certain Development Agreement between the City of Newport Beach and Golf Realty Fund dated March 27, 2012, and recorded in the Official Records of Orange County on January 29, 2014, as document number 2014000036369 ("Agreement") attached hereto as Exhibit "C" and incorporated herein by reference for a term of ten (10) years. C. On November 20, 2018, the City approved Coastal Development Permit No. CD2017-039 to allow the demolition of the eighteen (18) existing tennis courts and construction of the Tennis Club, Villas and Bungalows at the Tennis Property, however, the Agreement was not amended or modified. D. City and Property Owner entered into the First Amendment to Development Agreement between the City of Newport Beach and Golf Realty Fund pursuant to Ordinance No. 2022-16 and recorded in the Official Records of Orange County on XX, XXXX, as document ("First Amendment"), attached hereto as Exhibit "D" and incorporated herein by reference. E. The Parties now wish to enter into this Second Amendment to increase the number of tennis courts from seven (7) to eight (8), increase the number of hotel rooms from twenty-seven (27) to forty-one (41), increase the gross floor area of ancillary hotel uses by four thousand six hundred eight -six (4,686) square feet, and construct three (3) attached condominium units and two (2) single-family residences in lieu of five (5) single-family residences. F. On September 8, 2022, the Planning Commission held the public hearing on the Second Amendment and considered the testimony and information submitted by City staff, Property Owner, and members of the public. Consistent with applicable provisions of the Development Agreement Statute and Ordinance, the Planning Commission adopted Resolution No. PC2022-022, recommending the City Council approve the Second Amendment. 15-261 G. On September 27, 2022, the City Council held a noticed public hearing on the Second Amendment and considered the testimony and information submitted by City staff, Property Owner, and members of the public. On October 13, 2022, consistent with applicable provisions of the Development Agreement Statute and Ordinance, the City Council held the second reading and adopted Ordinance No. 2022 approving the Second Amendment. H. This Second Amendment is consistent with the City of Newport Beach General Plan ("General Plan"), including without limitation the General Plan's designation of the Property as "MU-H3/PR" (Mixed Use Horizontal /(Parks and Recreation) (Anomaly 46); Coastal Land Use Plan designation as "MU-H/PR (Mixed Use Horizontal / Parks & Recreation"; the Newport Beach Country Club Planned Community District that was adopted in 1997 by Ordinance No. 97-10, and amended in 2022 by Ordinance No. 2022 in order to establish appropriate zoning to regulate land use and development of the Property consistent with the General Plan; and Newport Beach Country Club Planned Community Development Plan No. PC2005-002 approved for the Property on March 27, 2012 by Ordinance No. 2012-2 and amended on October 13, 2022 by Ordinance No. 2022- I. In recognition of the significant public benefits that this Second Amendment provides, the City Council finds that this Second Amendment: (i) is consistent with the City of Newport Beach General Plan as of the date of its adoption; (ii) is in the best interests of the health, safety, and general welfare of City, its residents, and the public; (iii) is entered into pursuant to, and constitutes a present exercise of, City's police poorer; (iv) is consistent and has been approved consistent with the Addendum No. ND2022-001 to the previously adopted Mitigated Negative Declaration No. ND2010-008 (SCH 2O10091052) and Errata to Mitigated Negative Declaration No. ND2010-008 (together referred as "MND") for the Newport Beach Country Club Planned Community District (PA2021-260 amending PA2005-002) approved by the City Council, both of which analyze the environmental effects of the proposed development of the Project on the Property; and (v) is consistent and has been approved consistent with provisions of California Government Code section 65867 et seq. and Chapter 15.45 City of Newport Beach Municipal Code ("NBMC"). AGREEMENT NOW, THEREFORE, City and Property Owner agree as follows: 1. Definitions. Section 1 of the Agreement is hereby amended to add or revise the following definitions. Unless added or revised, all other definitions set forth in Section 1 of the Agreement shall remain unchanged: "Adopting Ordinance" shall mean City Council Ordinance No. 2022-` approving and adopting this Second Amendment. "Agreement" shall mean this Development Agreement, as the same may be amended from time to time including, the First Amendment and Second Amendment. `Agreement Date" shall mean October 13, 2022 which date is the date the City Council adopted the Adopting Ordinance. 15-262 "Development Plan" shall mean the Newport Beach Planned Community Development Plan Amendment No. PC2021-001 adopted by Ordinance No. 2022- which amends Newport Beach Planned Community Development Plan No. PC2005-002; Vesting Tentative Tract Map Amendment No. NT2021-002 adopted by Resolution No. 2022- which amends Vesting Tentative Tract Map No. NT2005-003; Site Development Review Amendment No. SD2021-004 adopted by Resolution No. 2022- which amends Site Development Review No. SD2011-002; Limited Term Permit No. XP2022-007 adopted by Resolution No. 2022- which amends Limited Term Permit No. XP2011-004; General Plan Amendment No. GP2021-004; Coastal Development Permit No. CD2021-068 adopted by Resolution No. 2022- which amends Coastal Development Permit No. CD2017-039; and Local Coastal Program Implementation Plan Amendment No. LC2021-004 adopted by Ordinance No. 2022- "Development Regulations" shall mean the following regulations as they are in effect as of the Agreement Date and to the extent they govern or regulate the development of the Property, but excluding any amendment or modification to the Development Regulations adopted, approved, or imposed after the Agreement Date that impairs or restricts Property Owner's rights set forth in this agreement; unless such amendment or modification is expressly authorized by this Agreement or is agreed to by Property Owner in writing: the General Plan, the Coastal Land Use Plan, the Development Plan, the Local Coastal Program Implementation Plan; and, to the extent not expressly superseded by the Development Plan or this Agreement, all other land use and subdivision regulations governing the permitted uses, density and intensity of use, design, improvement, and construction standards and specifications, procedures for obtaining required City permits and approvals for development, and similar matters that may apply to development of the Project on the Property during the Term of this Agreement that are set forth in Title 15 of the Municipal Code (buildings and construction), Title 19 of the Municipal Code (subdivisions). Title 20 of the Municipal Code (planning and zoning) and Title 21 of the Municipal Code (local coastal program implementation plan), but specifically excluding all other sections of the Municipal Code, including without limitation Title 5 of the Municipal Code (business licenses and regulations). Notwithstanding the foregoing, the term "Development Regulations," as used herein, does not include any City ordinance, resolution, code, rule, regulation or official policy governing any of the following: (i) the conduct of businesses, professions, and occupations; (ii) taxes and assessments; (iii) the control and abatement of nuisances; (iv) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or entry upon public property; or (v) the exercise of the power of eminent domain. "Effective Date" shall mean the latest of the following dates, as applicable: (i) the date that is thirty (30) days after the Agreement Date; (ii) if a referendum concerning the Adopting Ordinance, the Development Plan, or any of the Development Regulations approved on or before the Agreement Date is timely qualified for the ballot and a referendum election is held concerning the Adopting Ordinance or any of such Development Regulations, the date on which the referendum is certified resulting in upholding and approving the Adopting Ordinance and the Development Regulations; or (iii) if a lawsuit is timely filed challenging the validity of the Adopting Ordinance, this Agreement, and/or any of the Development Regulations approved on or before the Agreement Date, the date on which said challenge is finally resolved in favor of the validity or legality of the Adopting Ordinance, this Agreement, the Development Plan and/or the applicable Development Regulations, which such finality is achieved by a final non -appealable judgment, voluntary or involuntary dismissal (and the passage of any time required to appeal an involuntary dismissal), or binding written settlement agreement. Promptly after the Effective Date 3 15-263 occurs, the Parties agree to cooperate in causing an appropriate instrument to be executed and recorded against the Property memorializing the Effective Date. "'Project" shall mean all on -site and off -site improvements that Property Owner is authorized and/or may be required to construct with respect to each parcel of the Property, as provided in this Second Amendment and the Development Regulations, as amended by this Second Amendment, and/or as the same may be modified or amended from time to time consistent with this Second Amendment and applicable law. 2. Term of Agreement. Section 2.4 of the Agreement is hereby amended in its entirety to read as follows: The term of this Agreement ("Term") shall commence on the Effective Date of Second Amendment and shall terminate on the "Termination Date. Notwithstanding any other provision set forth in this Agreement to the contrary, if any Party reasonably determines that the Effective Date of Second Amendment will not occur because (i) the Adopting Ordinance of Second Amendment or any of the Development Regulations approved on or before the Agreement Date of Second Amendment for the Project has/have been disapproved by City's voters at a referendum election or (ii) a final non -appealable judgment is entered in a judicial action challenging the validity or legality of the Adopting Ordinance of Second Amendment, this Agreement, and/or any of the Development Regulations for the Project approved on or before the Agreement Date of Second Amendment such that this Agreement and/or any of such Development Regulations is/are invalid and unenforceable in whole or in such a substantial part that the judgment substantially impairs such Party's rights or substantially increases its obligations or risks hereunder or thereunder, then such Party, in its sole and absolute discretion, shall have the right to terminate this Agreement upon delivery of a written notice of termination to the other Party, in which event neither Party shall have any further rights or obligations hereunder except that Property Owner's indemnity obligations set forth in Article to shall remain in full force and effect and shall be enforceable, and the Development Regulations applicable to the Project and the Property only (but not those general Development Regulations applicable to other properties in the City) shall be repealed by the City after delivery of said notice of termination except for the Development Regulations that have been disapproved by City's voters at a referendum election and, therefore, never took effect. The Termination Date shall be the earliest of the following dates: (i) the tenth (loth) anniversary of the Effective Date; (ii) such earlier date that this Agreement may be terminated in accordance with Articles 5, 7, and/or Section 8.3 of this Agreement and/or Sections 65865.1 and/or 65868 of the Development Agreement Statute; or (iii) completion of the Project in accordance with the terms of this Agreement, including Property Owner's complete satisfaction, performance, and payment, as applicable, of all Development Exactions, the issuance of all required final occupancy permits, and acceptance by City or applicable public agency(ies) or private entity(ies) of all required offers of dedication. As used herein, the term "Lot Termination Date" for any separate legal lot within the Property means the date on which all of the following conditions have been satisfied with respect to said lot: (i) the lot has been finally subdivided and sold or leased (for a period longer than one year), individually or in a "bulk" of four or fewer lots, to a member of the public or other ultimate 4 15-264 user; (ii) a final Certificate of Occupancy or -Release of Utilities" has been issued for the building or buildings approved for construction on said lot Notwithstanding any other provision set forth in this Agreement to the contrary, the provisions set forth in Article 10 and Section 13.10 (as well as any other Property Owner obligations set forth in this Agreement that are expressly written to survive the Termination Date) shall survive the Termination Date of this Agreement. 3. Public Benefit Fee. Section 3.1 of the Agreement is hereby amended in its entirety to read as follows: As consideration for City's approval and performance of its obligations set forth in this Agreement, Property Owner shall pay to City a fee that shall be in addition to any other fee or charge to which the Property and the Project would otherwise be subject (herein, the "Public Benefit Fee") in the total sum of five hundred two thousand two hundred fifty dollars ($502,250.00) broken down as follows: (i) ninety-three thousand dollars and 00/100 ($93,000.00 per residential dwelling unit) for a sum of four hundred sixty-five thousand dollars and 00/100 ($465,000.00) for the residential units; and (ii) ten dollars and 00/100 ($10.00) per square foot of construction for the three thousand seven hundred twenty-five (3,725) square foot Tennis Clubhouse for a sum of thirty-seven thousand two hundred fifty dollars ($37,250.00). with the unpaid balance of said Public Benefit Fee increased on the first January 1 following the Effective Date of this Agreement by the percentage increase in the CPI Index between the Effective Date and said January l' date (the first "Adjustment Date") and thereafter with the unpaid balance of said Public Benefit Fee increased on each subsequent January 1 during the Term of this Agreement (each, an "Adjustment Date") by the percentage increase in the CPI Index in the year prior to the applicable Adjustment Date. The amount of the percentage increase in the CPI index on the applicable Adjustment Dates shall in each instance be calculated based on the then most recently available CPI Index figures such that, for example, if the Effective Date of this Agreement falls on July 1 and the most recently available CPI Index figure on the first Adjustment Date (January 1 of the following year) is the CPI Index for November of the preceding year, the percentage increase in the CPI Index for that partial year (a 6-month period) shall be calculated by comparing the CPI Index for November of the preceding year with the CPI Index for May of the preceding year (a 6- month period). In no event, however, shall application of the CPI Index reduce the amount of the Public Benefit Fee (or unpaid portion thereof) below the amount in effect prior to any applicable Adjustment Date. Property Owner shall pay the Public Benefit Fee at the following time(s): (i) As to the residential dwelling units, prior to the issuance of the first building permit for any residential unit; and (ii) as to the tennis clubhouse, prior to the issuance of the first building permit. Notwithstanding any other provision set forth in this Agreement to the contrary, during the Term of this Agreement, City shall not increase the Public Benefit Fee except pursuant to the CPI Index as stated in this Section 3.1. The Public Fee Benefit Fee shall be calculated based on the total square feet of construction for the tennis clubhouse. Property Owner shall not be entitled to any credit or offset to the Public Benefit Fee for any existing buildings or structures. Property Owner acknowledges by its approval and execution of this Agreement that it is voluntarily agreeing to pay the Public Benefit Fee, that its obligation to pay the Public Benefit Fee is an essential term of this Agreement and is not severable from City's obligations and Property Owner's vesting rights to be acquired hereunder, and that Property Owner expressly waives any constitutional, statutory, or common law right it might have in the absence of this Agreement to protest or challenge the payment of such fee on any ground whatsoever, including without limitation pursuant to the Fifth 15-265 and Fourteenth Amendments to the United States Constitution, California Constitution Article I Section 19, the Mitigation Fee Act (California Government Code Section 66000 et seq. ), or otherwise. In addition to any other remedy set forth in this Agreement for Property Owner's default, if Property Owner shall fail to timely pay any portion of the Public Benefit Fee when due City shall have the right to withhold issuance of any further building permits, occupancy permits, or other development or building permits for the Development Plan. 4. Amendment or Cancellation of Agreement. Section 5 of the Agreement is hereby amended in its entirety to read as follows This Agreement may be amended or canceled in whole or in part only by mutual written and executed consent of the Parties in compliance with California Government Code Section 65868 and Newport Beach Municipal Code Section 15.45.070 or by unilateral termination by City in the event of an uncured default of Property Owner. 5. Procedure. Section 7.3 of the Agreement is hereby amended in its entirety to read as follows: The Zoning Administrator shall conduct a duly noticed hearing and shall determine, on the basis of substantial evidence, whether or not Property Owner has, for the period under review, complied with the terms of this Agreement. If the Zoning Administrator finds that Property Owner has so complied, the annual review shall be concluded. If the Zoning Administrator finds, on the basis of substantial evidence, that Property Owner has not so complied, written notice shall be sent to Property Owner by first class mail of the Zoning Administrator's finding of non-compliance, and Property Owner shall be given at least ten (10) calendar days to cure any noncompliance that relates to the payment of money and thirty (30) calendar days to cure any other type of noncompliance. If a cure not relating to the payment of money cannot be completed within thirty (30) calendar days for reasons which are beyond the control of Property Owner, Property Owner must commence the cure within such thirty (30) calendar days and diligently pursue such cure to completion. If Property Owner fails to cure such noncompliance within the time(s) set forth above, such failure shall be considered to be a Default and City shall be entitled to exercise the remedies set forth in Article 8 below. 6. General Provisions. Section 8.1 of the Agreement is hereby amended in its entirety to read as follows: In the event of any material default, breach, or violation of the terms of this Agreement ("Default"), the Party alleging a Default shall deliver a written notice (each, a "Notice of Default") to the defaulting Party. The Notice of Default shall specify the nature of the alleged Default and a reasonable manner and sufficient period of time (twenty (20) calendar days if the Default relates to the failure to timely make a monetary payment due hereunder and not less than thirty (30) calendar days in the event of non -monetary Defaults) in which the Default must be cured ("Cure Period'). During the Cure Period, the Party charged shall not be considered in Default for the purposes of termination of this Agreement or institution of legal proceedings. if the alleged Default is cured within the Cure Period, then the Default thereafter shall be deemed not to exist. If a non -monetary Default cannot be cured during the Cure Period with the exercise of commercially reasonable diligence, the defaulting Party must promptly commence to cure as quickly as possible, and in no event later than thirty (30) calendar days after it receives the Notice of Default, and thereafter diligently pursue said cure to completion. Notwithstanding the on 15-266 foregoing, the City is not required to give Property Owner notice of default and may immediately pursue remedies for a Property Owner Default that result in an immediate threat to public health, safety or welfare. 7. Full Force and Effect. Except as modified by this Second Amendment, the entire Agreement, First Amendment its exhibits, and the exhibits attached hereto, are incorporated herein to this Second Amendment and shall remain in full force and effect. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. 9. Recordation. The City Clerk shall record this Second Amendment in the Office of the County Recorder of the County of Orange within the period required by California Government Code Section 65858.5 and Section 15.45.100 of the NBMC. [SIGNATURES ON NEXT PAGE] 15-267 SIGNATURE PAGE TO FIRST AMENDMENT TO DEVELOPMENT AGREEMENT "PROPERTY OWNER" GOLF REALTY FUND, a California limited partnership By: Its: By: Its: "CITY" CITY OF NEWPORT BEACH, a California municipal corporation In ATTEST: Leilani I. Brown, City Clerk APPROVED AS TO FORM: Aaron C. Harp, City Attorney Kevin Muldoon, Mayor Attachments: Exhibit A — Legal Description of Property Exhibit B — Depiction of Property Exhibit C — Development Agreement Recorded January 29, 2014 Exhibit D — First Amendment to Development Agreement 8 15-268 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 4 SS. On 120 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 0 (seal) 15-269 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY PARCELS A, B, C. AND D OF PARCEL MAP 2016-151, LOCATED IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, RECORDED IN BOOK 402 PAGES 24 THROUGH 32 INCLUSIVE OF PARCEL MAPS, RECORDS OF SAID COUNTY. ME 15-270 EXHIBIT B DEPICTION OF PROPERTY 13 HOTFL UNifS ,{ / ••� - EXISTING TENNIS COURTS 1 / i FalnxaY�otta rC r , -� y \ / • ( -4 `zt • r % I SINGLE�"'� HOME FAMILY.'UT f, \ 2 1SINGLc -�- l•� - 'FAMILY TT •-�••• ` / HOME f- I II ��!" .�7" PARKING LOT' /• %VIII�! Uu17jG6�.L �UN17-ACC� OENTER r.CLIRT.r a `614jgalow - CrN1Tmb \.. � Caaaiiiiaaaaaa PaJJ a}b �\. � � ... .. I HOTFC\\ i�1NR l - - Q H�,TEL lll���NNN���TS ` `� TENNIS CLUBHOUSE F ncho Valmoia 1 ' i .2 C�00 r� FITNESS CEN7Ep Bun9 ow s r r.• �}1. \ f SPA / - r } •; T 7. I HOTE I % ,�\ J�I`HOTEL / NIT _ 14 / HOTEL T11�NrT i/, J r; ` RI / UNIYT >> ', `�"`"l° ial°rcta d POC1lJ4AEA' / RaPvho2. }1NIT _ I HOT V.E(� aneho V neia 1 �{7NIT 4 '•° ,.� �4n9apila.Sun,c-4.,T I II7cL Z y`/+�3 HOTE t UNIT _ /v J UNI 1 FLdn�Sa,Yalanc'��' � - \� 17 }TO •Cagurnx,M �fa�e4 ;A1 5CONCIERGE �ud�alo '�, PARKING LOT,• 13lIhGnga .�, 7'!,[ � ^,TALLS 14/'• J Oa�l vn w r 21 H0TOTE�L 15-271 EXHIBIT C DEVELOPMENT AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND GOLF REALTY FUND RECORDED JANUARY 29, 2014 Available separately due to bulk at: newortbeachea. ov' overnment/de artment5,'community-develo mend tannin - div ision/development-ap,reements C-1 15-272 EXHIBIT D FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN CITY OF NEWPORT BEACH AND GOLF REALTY FUND !M 15-273 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Attn: City Clerk (Space Above This Line Is for Recorder's Use Only) This First Amendment is recorded at the request and for the benefit of the City of Newport Beach and is exempt from the payment of a recording fee pursuant to Government Code §§ 6103 and 27383. FIRST AMENDMENT TO DEVELOPMENT AGREEMENT between CITY OF NEWPORT BEACH and GOLF REALTY FUND CONCERNING PROPERTIES LOCATED AT TENNIS CLUB AT NEWPORT BEACH WITHIN THE NEWPORT BEACH COUNTRY CLUB PLANNED COMMUNITY DISTRICT 15-274 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (Pursuant to California Government Code Sections 65864-65869.5) This FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (the "First Amendment") is entered into and effective on the date it is recorded with the Orange County Recorder ("Effective Date") by and between the CITY OF NEWPORT BEACH ("City"), and GOLF REALTY FUND, a California limited partnership "Property Owner"). City and Property Owner are sometimes collectively referred to in this First Amendment as the "Parties" and individually as a "Party." RECITALS A. Property Owner is the managing owner of and owns a fee interest in title to that certain real property located in the City of Newport Beach, County of Orange, State of California which is more particularly described in the legal description attached as Exhibit "A" and depicted on the site map attached hereto as Exhibit "B" ("Property"). The Property consists of approximately seven (7) acres within the area shown on the City's Zoning Map as the Newport Beach Country Club Planned Community District. The Property comprises the Tennis Club at Newport Beach site shown on Exhibit "B" which consists of The Villas Sub -Area, The Tennis Club Sub -Area, and The Bungalows Sub -Area. B. City and Property Owner entered into that certain Development Agreement between the City of Newport Beach and Golf Realty Fund dated March 27, 2012, and recorded in the Official Records of Orange County on January 29, 2014, as document number 2014000036369 ("Agreement") attached hereto as Exhibit "C" with a ten (10) year term. C. On November 20, 2018, the City approved Coastal Development Permit No. CD2017-039 to allow the demolition of the 18 existing tennis courts and construction of the Tennis Club, Villas and Bungalows at the Tennis Property, however, the Agreement was not amended or modified. D. The Parties now wish to enter into that First Amendment extending the term for an additional year and updating certain provisions. E. On May 12, 2022, the Planning Commission opened the noticed public hearing on this First Amendment and continued the item to May 26, 2022. F. On May 26, 2022, the Planning Commission held the public hearing on this First Amendment and considered the testimony and information submitted by City staff, Property Owner, and members of the public. Consistent with applicable provisions of the Development Agreement Statute and Ordinance, the Planning Commission adopted Resolution No. PC2022- 008, recommending the City Council approve this First Amendment. 15-275 G. On June 28, 2022, the City Council held a noticed public hearing on this First Amendment and considered the testimony and information submitted by City staff, Property Owner, and members of the public. On July 12, 2022, consistent with applicable provisions of the Development Agreement Statute and Ordinance, the City Council held the second reading and adopted Ordinance No. approving this First Amendment. H. This First Amendment is consistent with the City of Newport Beach General Plan ("General Plan"), including without limitation the General Plan's designation of the Property as "MU-H3/PR" (Mixed Use Horizontal /(Parks and Recreation) (Anomaly 46); Coastal Land Use Plan designation as "MU-H/PR (Mixed Use Horizontal / Parks & Recreation"; the Newport Beach Country Club Planned Community District that was adopted in 1997 by Ordinance No. 97-10 in order to establish appropriate zoning to regulate land use and development of the Property consistent with the General Plan; and Newport Beach Country Club Planned Community Development Plan No PC2005-002 approved for the Property on March 27, 2012 by Ordinance No. 2012-2. I. The City Council finds that this First Amendment: (i) is consistent with the City of Newport Beach General Plan as of the date of this First Amendment; (ii) is in the best interests of the health, safety, and general welfare of City, its residents, and the public; (iii) is entered into pursuant to, and constitutes a present exercise of, City's police power; (iv) is consistent and has been approved consistent with the Mitigated Negative Declaration No. ND2010-008 (SCH 2O10091052) and an Errata to Mitigated Negative Declaration No_ ND2010- 008 (together referred as "MND") for the Newport Beach Country Club Planned Community District (PA2005-002) approved by the City Council, both of which analyze the environmental effects of the proposed development of the Project on the Property; and (v) is consistent and has been approved consistent with provisions of California Government Code section 65867 et seq. and Chapter 15.45 City of Newport Beach Municipal Code ("NBMC"). AGREEMENT NOW, THEREFORE, City and Property Owner agree as follows: 1. Term of Agreement. Section 2.4 of the Agreement is hereby amended in its entirety to read as follows: "The term of this Agreement (the "Tenn") shall commence on the Effective Date and continue until 2023, unless otherwise terminated or modified pursuant to its terms. Notwithstanding any other provision set forth in this Agreement to the contrary, the provisions set forth in Article 10 and Section 13.10 (as well as any other Property Owner obligations set forth in this Agreement that are expressly written to survive the Termination Date) shall survive the Termination Date of this Agreement." 2, Attorneys' Fees. Section 8.10 of the Agreement is hereby amended in its entirety to read as follows: 15-276 "In any judicial proceeding, arbitration, or mediation (collectively, an "Action") between the Parties that seeks to enforce the provisions of this Agreement or arises out of this Agreement, the prevailing Party shall not recover any of its costs and expenses, regardless of whether they would be recoverable under California Code of Civil Procedure section 1033.5 or California Civil Code section 1717 in the absence of this Agreement. These costs and expenses include, but are not limited to, court costs, expert witness fees, attorneys' fees, City staff costs (including overhead), and costs of investigation and preparation before initiation of the Action." 3. Notices. Section 13.1 of the Agreement is hereby amended in its entirety to read as follows: "Any notice or demand that shall be required or permitted by law or any provision of this Agreement shall be in writing. If the notice or demand will be served upon a Party, it either shall be personally delivered to the Party; deposited by a reliable courier service that provides a receipt showing date and time of delivery with courier charges prepaid. The notice or demand shall be addressed as follows: TO CITY: City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Attn: City Manager With a copy to: City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Attn: City Attorney TO PROPERTY OWNER: Golf Realty Fund One Upper Newport Plaza Newport Beach, CA 92660 Attn: Robert O'Hill Either Party may change the address stated in this Section 13.1 by delivering notice to the other Party in the manner provided in this Section 13.1, and thereafter, notices to such Party shall be addressed and submitted to the new address. Notices delivered in accordance with this Agreement shall be deemed to be delivered upon the earlier of. (i) the date received or (iii) three business days after deposit in the mail as provided above." 3 15-277 4. Full Force and Effect. Except as modified by this First Amendment, the entire Agreement, its exhibits, and the exhibits attached hereto, are incorporated herein to this First Amendment and shall remain in full force and effect. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. 6. Recordation. The City Clerk shall record this First Amendment in the Office of the County Recorder of the County of Orange within the period required by California Government Code Section 65858.5 and Section 15.45.100 of the NBMC. [SIGNATURES ON NEXT PAGEI 4 15-278 SIGNATURE PAGE TO FIRST AMENDMENT TO DEVELOPMENT AGREEMENT "PROPERTY OWNER" GOLF REALTY FUND, a California limited partnership By: Its:- By. - Its:. "CITY" CITY OF NEWPORT BEACH, a California municipal corporation Kevin Muldoon, Mayor ATTEST: Leilani 1. Brown, City Clerk APPROVED AS TO FORM: Aaron C. Harp, City Attorney Attachments: Exhibit A — Legal Description of Property Exhibit B — Depiction of Property Exhibit C — Development Agreement Recorded January 29, 2014 15-279 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) istare 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 helshe/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 51 (seal) 15-280 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY Parcel I and Parcel 2 of Parcel Map 44-102, in the City of Newport Beach, County of Orange, State of California, as per Map filed in Book 316, Pages 3 to 6, inclusive, of Parcel Maps, in the office of the County Recorder of Orange County. A- l 15-281 THE PILL EXHIBIT B DEPICTION OF PROPERTY IS CLUB ,' B-1 MASTER PLAN • THE TENNIS CLUB 1 new stadium court Tennis Clubhouse • THE VILLAS 5 single family homes • THE BUNGALOWS - 27 guest rental units • THE GOLF CLUB 15-282 Planning Commission Resolution No. PC2022-022 Paoe 33 of 43 EXHIBIT "F" CONDITIONS OF APPROVAL (Project -specific conditions are in italics) Planning Division The project 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 compliance with all applicable submittals approved by the City of Newport Beach ("City") and all applicable City ordinances, policies, and standards, unless specifically waived or modified by the conditions of approval. 3. Nolkithstanding the legislative actions (ie. General Plan Amendment, Planned Community Development Plan, and Local Coastal Program Amendment) activities reviewed under Planning Activity No. PA2021-260 shall expire unless exercised within 24 months from the date of approval as specified in Section 20.54,060 of the Newport Beach Municipal Code, unless an extension is otherwise granted by the City for a period of time provided for in the Development Agreement pursuant to the provisions of California Government Code Section 66452.6(a). 4. The Vesting Tentative Tract Map Amendment, as reviewed under Planning Activity No. PA2021-260, shall expire in accordance with the Subdivision Code, unless an extension is otherwise granted consistent with the Subdivision Code and Subdivision Map Act. The expiration date shall be extended for the unexpired term of the Second Amendment to Development Agreement between City of Newport Beach and Golf Realty Fund. 5. The project shall consist of the followings: a. Tennis Club: A 3,725 square -foot tennis clubhouse and eight (8) tennis courts,- b. Hotel.- Forty-one (41) hotel rooms of concierge and guest meeting facility, a 4,686 square feet of ancillary uses; and 47,484 square feet, a 2,200 square -foot 7,500 square -foot spa/fitness center, and c. Residential: two (2) single-family units and three (3) condominium units 6. Pickleball courts shall not be permitted after the issuance of a Certificate of Occupancy for the Tennis Clubhouse and Spa and Fitness Center unless the property owner and/or Pickleball facility operator follows any and all City of Newport Beach General Plan, Municipal Code, or other applicable requirements in order to continue the use of Pickleball courts. 15-283 Planning Commission Resolution No. PC2022-022 Paae 34 of 43 7. The project shall be subject to all applicable development standards prescribed in Planned Community Development Plan Amendment, as reviewed under Planning Activity No. PA2021-260, for the Tennis Club site, such as but not limited to, building height, building setbacks, parking, lighting, sign standards, etc. 8. Upon the effective date of Local Coastal Program Implementation Plan Amendment, as reviewed under Planning Activity No. PA2021-260, Site Development Permit No. SD2011-002, Limited Term Permit No. XP2011-004, and Vesting Tentative Map No. NT2005-003, approved for the Approved Project, shall be deemed of no further force. 9. The temporary modular building to accommodate on -going tennis club operation during the construction of new tennis clubhouse shall be located on the existing tennis courts, shall not interfere with the construction activities or parking, and shall be removed from the project site upon completion/occupancy of the new clubhouse. 10. Prior to the issuance of a buildinq permiL the applicant shall pay all applicable development fees (i.e. school, park in -lieu, transportation corridor agency), unless otherwise addressed separately in the Development Agreement. 11. Prior to recordation of the Final Tract Map and the issuance of building permits the Final Tract Map shall be signed by all of the current record owners of the property, which presently include: (1) Elliot Feuerstein as Managing Member of Mesa Shopping Center - West LLC; (2) Elliot Feuerstein as Managing Member of Mesa Shopping Center -East LLC; (3) Irving Chase as General Partner of Fainbarg 11l L.P.; and (4) Robert O Hill as Executive Director of Golf Realty Fund LP. 12. Any substantial change to the approved plans, shall require an amendment to all non - legislative activities reviewed under Planning Activity No. PA2021-260, or the processing of new permits. 13. This Site Development Review, Coastal Development Permit, and Limited Term Permit may be modified or revoked by the City Council or Planning Commission should they determine that the proposed development, uses, and/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. 14. A copy of the Resolution, including conditions of approval Exhibit "F" shall be incorporated into the Building Division and field sets of plans prior to issuance of the building permits. 15. 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 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 and shall 15-284 Planning Commission Resolution No. PC2022-022 Paae 35 of 43 highlight the approved elements such that they are readily discernible from other elements of the plans. 16. 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. 17. 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. 18. Prior to the final of issuance of a certificate of occui2ancy, the applicant shall schedule an inspection by the Planning Division to confirm that all landscaping was installed in accordance with the approved plan. 19. Prior to the issuance of a building permit, the applicant shall prepare photometric study in conjunction with a final lighting plan for approval by the Planning Division. The survey shall show that lighting values are I" or less at all property lines. 20. Lighting shall be in compliance with applicable standards of Planned Community Development Plan Amendment, as reviewed under Planning Activity No. PA2021-260 and Section 20.30.070 of the Newport Beach Municipal Code. Exterior on -site lighting shall be shielded and confined within site boundaries. No direct rays or glare are permitted to shine onto public streets or adjacent sites or create a public nuisance. "Walpak" and up -lighting type fixtures are not permitted. Parking area lighting shall have zero cut-off fixtures. 21. The entire project shall not be excessively illuminated based on the outdoor lighting standards contained within Section 20.30.070 of the Newport Beach Municipal Code, or, if in the opinion of the Community Development Director, the illumination creates an unacceptable negative impact on surrounding land uses or environmental resources. The Community Development Director may order the dimming of light sources or other remediation upon finding that the site is excessively illuminated. 22. Prior to the final of issuance of a certificate of occupancy or final of building permits for each component of the proiect i.e. residential hotel or tennis club the applicant shall schedule an evening inspection by the Code Enforcement Division to confirm control of all lighting sources. 23. 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. 24. All noise generated by the proposed use shall comply with the provisions of Chapter 15-285 Planning Commission Resolution No. PC2022-022 Paae 36 of 43 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 TOOAM and 10:OOPM Between the hours of 10:00PM and TOOAM Location Interior Exterior Interior Exterior Residential Property 45dBA 55dBA 40dBA 50clBA Residential Property located within 100 feet of a commercial property 45dBA 60dBA 45dBA 50dBA Mixed Use Property 45dBA 6OdBA 45dBA 50cIBA Commercial Property NIA 65dBA NIA 60clBA 25. The construction and equipment staging area for each phase of the project shall be located in the least visually prominent area on the site and shall be properly maintained and/or screened to minimize potential unsightly conditions. 26. A screen and security fence that is a minimum of six feet high shall be placed around the construction site during construction for each phase of the project. 27. Construction equipment and materials shall be properly stored on the site when not in use for each phase of the project. 28. 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. 29. 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. 30. 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. 31. 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. 32. All proposed signs shall be in conformance with the provision of the Planned Community Development Plan Amendment, as reviewed under Planning Activity No. PA2021-260, and Chapter 20.42 of the Newport Beach Municipal Code and shall be reviewed and approved by the City Traffic Engineer if located adjacent to the vehicular ingress and egress. 15-286 Planning Commission Resolution No. PC2022-022 Paqe 37 of 43 33. The final location of the signs shall be reviewed by the City Traffic Engineer and shall conform to City Standard 110-L to ensure that adequate vehicular sight distance is provided. 34. 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 Tennis at Newport Beach Project Amendment including, but not limited to, General Plan Amendment, Local Coastal Land Use Plan Amendment, Planned Community Development Plan Amendment, Amendment to Major Site Development Review No. SD2011-002, Amendment to Coastal Development Permit No. CD2017-039, Amendment to Vesting Tentative Tract Map No. NT2005- 003, Amendment to Limited Term Permit No. XP2011-004, & Second Amendment to Development Agreement No. DA2008-001 (PA2021-260). 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/or the 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 35. An automatic fire sprinkler system shall be required for the residential and hotel components of the project. 36. A fire alarm system shall be required for the hotel component of the project. 37. A Fire Master Plan shall be submitted to the Fire Prevention Division for approval. The plan shall include information on the following (but not limited to) subjects: fire department vehicle access to the project site, secondary emergency vehicle access, firefighter access (hose pull) around structures, fire lane identification, location of fire hydrants and other fire department appliances, and the location and type of gates or barriers that restrict ingress/egress. 38. All portions of the perimeter of all structures shall be located within 150' of a fire lane as measured along an approved route. A portion of the proposed structure exceeding this distance is considered "out of access" and shall be corrected during plan check review by one of the following methods: a. Provide additional fire lanes to bring the entire structure "in access", or 15-287 Planning Commission Resolution No. PC2022-022 Paqe 38 of 43 b. Propose an alternate form of mitigation via the Alternate Methods and Materials provisions of the fire code for the Fire Marshal's review. There is no guarantee that the Alternate Methods and Materials proposal will be approved as proposed. 39. Fire department access roads shall comply with Newport Beach Fire Guidelines C.01 and C.02. 40. Approved fire apparatus access roads shall be provided for every facility, building or portion of a building hereafter constructed or moved into or within the jurisdiction. The fire apparatus access road shall comply with the requirements of this section and shall extend to within 150 feet (45 720 mm) of all portions of the facility and all portions of the exterior walls of the first story of the building as measured by an approved route around the exterior of the building or facility. 41. An approved water supply capable of supplying the required fire flow for fire protection shall be provided to the premises. Fire -flow requirements for buildings or portions of buildings and facilities shall be determined by Appendix B of the 2019 California Fire Code. 42. Fire hydrants shall be spaced along fire department access roads in compliance with the 2019 California Fire Code Appendix C. 43. Where a portion of the facility or building hereafter constructed or moved into or within the jurisdiction is more than 400 feet from a hydrant on a fire apparatus access road, as measured by an approved route around the exterior of the facility or building, on -site fire hydrants and mains shall be provided. 44. Additional facilities or changes to the current facilities shall require submitted plans to the Newport Beach Fire Prevention Division for all changes, additions and modifications to existing or new fire protection systems. 45. The use or storage of portable propane heaters shall be prohibited. Heaters for future outdoor areas shall be fixed and plumbed with natural gas. 46. All fire hydrants and fire access road shall be installed and approved by the Fire Department prior to the delivery of combustible material on site. Building Division 47. Pursuant to CBC Chapter 1, Division 1.9, all temporary construction trailers, modular office buildings, and safe pedestrian passageways around the construction sites shall be disabled accessible. 48. All temporary modular office buildings shall be approved by the State of California for the proposed use. 15-288 Planning Commission Resolution No. PC2022-022 Page 39 of 43 49. Foundations for temporary construction trailers and modular office buildings shall be designed to provide anchorage for these structures against seismic and wind loads; and provided with temporary utility connections. 50. 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. 51. 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 car-pooling 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. • Sweep access points daily. • Encourage receipt of materials during non -peak traffic hours. • Sandbag construction sites for erosion control. Fill Placement • 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 (10%) soil moisture content in the top six-inch surface layer, subject to review/discretion of the geotechnical engineer. 52. 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 15-289 Planning Commission Resolution No. PC2022-022 Paqe 40 of 43 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. 53. 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, and must show amount of stormwater retained prior to going into the proprietary filtration system. 54. 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 55. The Final Tract Map shall be legible, scaled, dimensioned, and complete with all necessary pertinent information and details such as easement limits and descriptions; annotated lot lines, centerlines, and boundary lines; signature certificates; curve and line tables; etc. 56. The Final Tract Map shall be prepared on the California coordinate system (NAD88). Prior to Map recordation, 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 the Orange County Subdivision Code and Orange County Subdivision Manual. The Final Tract Map to be submitted to the City of Newport Beach shall comply with the City"s CADD Standards. Scanned images will not be accepted. 57. Prior to recordation, the Final Map boundary shall be tied onto the Horizontal Control System established by the County Surveyor in a manner described in Sections 7-9-330 and 7-9-337 of the Orange County Subdivision Code and Orange County Subdivision Manual, Subarticle 18. Monuments (one -inch iron pipe with tag) shall be set On Each Lot Corner unless otherwise approved by the City Engineer. Monuments shall be protected in place if installed prior to completion of construction project. 58. A hydrology and hydraulic study and a master plan of water, sewer and storm drain facilities for the on -site improvements shall be prepared by the applicant and approved by the Public Works Department prior to Final Tract Map recordation. 15-290 Planning Commission Resolution No. PC2022-022 Pane 41 of 43 59. Easements for public emergency and security ingress/egress, weekly refuse service, and public utility purposes on all private streets shall be dedicated to the City. 60. No structures shall be constructed within the limits of any utility easements. 61. All easements shall be recorded as a part of the Final Tract Map. 62. All applicable fees shall be paid prior to the City approval of the Final Tract Map. 63. Construction surety in a form acceptable to the City, guaranteeing the completion of the various required public improvements, shall be submitted to the Public Works Department prior to the City approval of the Final Tract Map. 64. Street, drainage and utility improvements shall be submitted on City standard improvement plan formats. All plan sheets shall be sealed and signed by the California licensed professionals responsible for the designs shown on the Plans. 65. All improvements shall be designed and constructed in accordance with the current edition of the City Design Criteria, Standard Special Provisions, and Standard Drawings. 66. All storm drains and sanitary sewer mains shall be installed with MacWrap. 67. All runoff discharges shall comply with the City's water quality and on -site non -storm runoff retention requirements. 68. New concrete sidewalks, curbs, gutters, curb disabled access ramps, roadway pavement, traffic detector loops, traffic signal devices, and street trees shall be installed along the development's Coast Highway frontage. 69. Public improvements may be required along the development's Granville Drive frontage upon building permit plan check submittal. 70. All on -site drainage, sanitary sewer, water and electrical systems shall be privately owned, operated, and maintained. The water system shall be owned operate and maintained by the City. 71. All curb return radii shall be 5-feet (5) minimum. 72. Each detached residential dwelling unit or bungalow building shall be served with an individual water service and sewer lateral connection. 73. All overhead utilities serving the entire proposed development shall be made underground. 74. ADA compliant curb ramps shall be installed within the interior parking area. 15-291 Planning Commission Resolution No. PC2022-022 Paae 42 of 43 75. The intersection of the public streets, internal roadways, and drive aisle shall be designed to provide adequate sight distance per City of Newport Beach Standard Drawing Standard105. Slopes, landscaping, walls, signs, and other obstructions shall be considered in the sight distance requirements. Landscaping within the sight lines (sight cone) shall not exceed 24-inches in height and the monument identification sign must be located outside the line of sight cone. The sight distance may be modified at non -critical locations, subject to approval by the Traffic Engineer. 76. Any damage to public improvements within the public right-of-way attributable to on- site development may require additional reconstruction within the public right-of-way at the discretion of the Public Works Inspector. 77. The parking lot and vehicular circulation system shall be subject to further review and approval by the City Traffic Engineer. Parking layout shall be per City Standard 805. Parking layout shall be full dimensioned. On -street parking spaces shall be 8 feet wide by 22 feet long. Drive aisles to parking areas shall be 26 feet wide minimum. The one- way drive aisle adjacent to the hotel's concierge office and guest meeting building shall be 14 feet wide minimum with no parking, otherwise the drive aisle shall be widened to accommodate parking. 78. Cul-de-sacs shall comply with City Standards 102 and 103 and shall have a minimum diameter of 80 feet curb to curb. 79. County Sanitation District fees shall be paid prior to the issuance of any building permits. 80. Prior to the issuance of a building permit, a sewer and water demand study shall be submitted for review by the Public Works and Utilities Department. 81. Prior to the commencement of demolition and grading of the project, the applicant shall submit a construction management plan (CMP) to be reviewed and approved by the Community Development Director, City Eire Marshal, and City Traffic Engineer. The plan shall include discussion of project phasing, parking arrangements during construction, anticipated haul routes and construction mitigation. Upon approval of the CMP, the applicant shall be responsible for implementing and complying with the stipulations set forth in the approved CMP. 82. Prior to the issuance of a building permit, a sewer system management plan shall be submitted for review and approval by the Public Works and Utilities Department. 83. Prior to the issuance of a building permit, various water and sewer easement for City mains located on the adjacent properties shall be obtained and conveyed to the City. 84. A storm drain easement on behalf of the project shall be obtained from the adjacent property owner prior to issuance of a building permit. Provide documentation of said easement. 15-292 Planning Commission Resolution No. PC2022-022 Paqe 43 of 43 85. The City sewer manhole located within 1600 East Coast Highway shall be relocated to an area outside of the landscape and parking stalls. The manhole location shall be accessible at all time. A new sewer easement shall be provided for the sewer manhole and sewer main within the 1600 East Coast Highway property. 86. The public sewer connection to the OCSD main shall utilize the existing OCSD manhole located within East Coast Highway unless otherwise approved by OCSD and the City. Final design shall be approved by OCSD and the City. 87. The existing private sewer main from the proposed point of connection to the City's manhole located near East Coast Highway shall be video inspected and any damage repaired prior. 88. Utility easements shall be provided for all City water meters, fire hydrants, valves and back flow devices. 15-293 Attachment G City Council Minutes Excerpts, Dated September 27, 2022 15-294 City of Newport Beach City Council Meeting September 27, 2022 b) Accept a check in the amount of $200,000 from the Friends of the Newport Beach Library and approve Budget Amendment No. 23-013 to increase expenditures by the same amount in Division 0106052 (Friends of the Library). 13. Confirmation of Appointments to the Ad Hoc Municipal Code and Council Policy Review Committee [241100-2022] a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Confirm Mayor Kevin Muldoon's appointments of himself, Mayor Pro Tem Noah Blom, and Council Member Will O'Neill (Chair) to the Ad Hoc Municipal Code and Council Policy Review Committee. 14. Acceptance of the State of California Office of Traffic Safety Selective Traffic Enforcement Program Grant PT23055 (C-8201-7) [381100-20221 a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Authorize the City Council to accept a $350,000 Selective Traffic Enforcement Program (STEP) award granted to the NBPD by the OTS per City Council Policies F-3 and F-25. To comply with City Council Policy F-3, the City Council must formally accept the award of $350,000 and create a new appropriation to expend the funds; and c) Approve Budget Amendment No. 23-015 increasing NBPD revenue estimates and expenditure appropriations by $350,000. Motion by Mayor Pro Tem Blom, seconded by Mayor Muldoon, to approve the Consent Calendar; and noting the recusal by Mayor Muldoon to Item 6, the "no" votes by Mayor Muldoon to Items 3 and 8, and the amendments to Items 1 and 11. The motion carried unanimously. XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR — None XVII. PUBLIC COMMENTS ON NON -AGENDA ITEMS — None XVIII. PUBLIC HEARINGS 15. Ordinance Nos. 2022-19 and 2022-20: Tennis Club at Newport Beach Project Amendment (PA2021-260) (C-5068) [381100-20221 Community Development Director Jurjis and Associate Planner Lee utilized a presentation to review the project location, land use, previously approved project, proposed amendments, previous and proposed site plan comparisons, project entitlements, CEQA review, proposed Condition No. 6, and recommended actions. In response to Council Member O'Neill's question, Community Development Director Jurjis confirmed that the applicant submitted an application for tennis courts and the City is not prohibiting pickleball courts. Mayor Muldoon opened the public hearing. Robert O Hill provided the project background and utilized a presentation to review the amended plans, display renderings, floor plans, photos, and a letter from Kory Kramer of Eagle Four Partners. He further recommended working together with Eagle Four Partners and provided other potential partners and tax revenue benefits. Volume 65 - Page 401 15-295 City of Newport Beach City Council Meeting September 27, 2022 In response to Council Member Dixon's questions, Mr. 0 Hill identified a new lap pool on the rendering, stated the 28 pickleball courts will remain, agreed to comply with Condition No. 6, which Community Development Director Jurjis agreed the applicant can start right away with a parking study, and outlined units that will help the City meet affordable housing development goals. Mayor Pro Tem Blom noted changes in Mr. 0 Hill's previous affordable housing participation and, as per Community Development Director Jurjis, the applicant's permit is expired and requires updates to the plan and plan checks by the Building Department. In response to Mayor Pro Tem Blom's question, Mr. 0 Hill stated that it is best for pickleball and the applicant to not include pickleball in the amendment in order to complete the hotel lease and parking requirements. Mayor Pro Tem Blom noted that the current pickleball courts exist without a City process, the City will not take away the existing courts, and encouraged Mr. 0 Hill to go through the process to make everyone happy at the same time by adding the pickleball courts to the plan. In response to Mr. 0 Hill's question, Community Development Director Jurjis relayed that the applicant's return date to Council is unknown until after the study is conducted. Council Member Dixon supported a parallel path and in response to her question, Community Development Director Jurjis stated that the City will not get in the way of the existing pickleball courts, and Mr. 0 Hill confirmed that pickleball will continue indefinitely as codification with the California Coastal Commission (CCC) and traffic study take place. Brett Feuerstein and Ryan Chase, 50% owners of The Tennis Club at Newport Beach property, noted an arbitration in progress to determine if Golf Realty Fund has the authority to unilaterally process the application, opposed the proposed plan, thanked staff for their work, expressed interest in finding a solution that enables The Tennis Club to grow and thrive, and expressed concern that there are no pickleball courts in the plan and the proposed lease is for twenty years. Sean Abdali, President of Grand Slam Tennis and The Tennis and Pickleball Club operator, stated the Club is the largest and most prestigious in America with passionate pickleball members, promised to one day offer majority pickleball, expressed interest in a 72-year lease and new clubhouse, noted a petition opposing the construction of a hotel and tennis court demolition, and asked that Council support Plan B. Dalen Lawrence opposed the amendment. Stacy Evans read a statement from Nick Bollettieri in support of Plan B. John Rosen opposed the amendment. Darcy Bouzeos opposed the amendment. Debbie Schwartz pointed out a discrepancy in the pickleball court plans and requested that Council deny the amendment. Michelle Hatch expressed the opinion that Mr. 0 Hill and Mr. Abdali used deception tactics and urged Council to oppose Plan B. Gerald Kelleher relayed instances that have led him to question trust in the operator and owner. Leo Figueroa supported the amendment and the Club providing both tennis and pickleball. Rick Tarbell encouraged Council to include 28 pickleball courts as a condition in the amendment, otherwise he opposed the amendment. Robin, employee and member of The Tennis Club at Newport Beach, confirmed a 1,300-person membership and Club intention to offer pickleball. An unidentified speaker expressed the opinion that non -transparency exists at The Club. Volume 65 - Page 402 15-296 City of Newport Beach City Council Meeting September 27, 2022 Dawna Baroda Clark expressed an interest in preserving The Tennis Club at Newport Beach and was curious about alternatives. Lewis Lanzner noted a discrepancy in the number of pickleball and tennis courts. Jim Mosher questioned the amount that Council can approve in the General Plan Amendment without a vote of the public pursuant to the City Charter and suggested providing Mr. O Hill with a total development limit on the property and allowing him to determine the amount of hotel rooms he can fit within 40,000 square feet. Hearing no further testimony, Mayor Muldoon closed the public hearing. In response to Council Member Dixon's question, Community Development Director Jurjis confirmed that Council has the authority to vote on this amendment. Council Member Dixon supported the project and proposed a motion to approve the General Plan and Coastal Development Permit amendments and amend the Community Development Plan to include a condition requiring 28 pickleball courts, of which Mr. O Hill agreed. Community Development Director Jurjis stated that the study and entitlement processing are for tennis courts and confirmed pickleball courts cannot be incorporated without adding a second amendment. City Attorney Harp indicated that Council cannot require Mr. O Hill to oblige without an analysis and a statement of intent of Council to provide 28 pickleball courts could be included, but it would not be binding without an analysis. Council Member O'Neill noted that all owners must sign off on the plan in order for the map to be recorded and the applicant can proceed to CCC contingent upon approval. In response to his inquiry, Community Development Director Jurjis noted that the applicant would need to repeat the CCC process if the applicant decides to convert to pickleball courts after the project was approved by CCC for tennis courts, and noted the challenges related to the plan being a Local Coastal Plan Amendment. Council Member O'Neill relayed why he previously voted "no" on the amendment for the development agreement and expressed frustrations about the project. In response to Council Member Brenner's question, Community Development Director Jurjis indicated that Council can deny, continue, or approve the application. Furthermore, he acknowledged the pending arbitration case and that Mr. O Hill can submit the entitlements for Council review. In response to Mayor Muldoon's request, City Attorney Harp explained that the City has determined that Mr. O Hill has the authority to process the application under the Newport Beach Municipal Code provisions and the arbitration is separate from the City. Mayor Muldoon noted that the Newport Beach Tennis Club is thriving under Mr. Abdali's leadership, pickleball is the fastest growing sport in America and a better profit opportunity than tennis courts, and the maps are not showing pickleball courts because they need to split the tennis courts. In response to Mayor Muldoon's question, Mr. O Hill agreed to have 26-28 pickleball courts, contingent on the traffic study results. Motion bMayor Muldoon, seconded by Council Member Dixon, to a) adopt Resolution No. 2022-65, AResolution of the City Council of the City of Newport Beach, California, Adopting an Addendum to Mitigated Negative Declaration No. ND2010-008 for the Tennis Club at Newport Beach Located at 1602 East Coast Highway (PA2021-260); b) adopt Resolution No. 2022-66, A Resolution of the City Council of the City of Newport Beach, California, Approving a General Plan Amendment, Amendment to Major Site Development Review No. SD2011-002, Amendment to Coastal Development Permit No. CD2017-039, Amendment to Vesting Tentative Tract Map No. NT2005-003, and Amendment to Limited Term Permit No. XP2011-004 for the Tennis Club at Newport Beach Volume 65 - Page 403 15-297 City of Newport Beach City Council Meeting September 27, 2022 Located at 1602 East Coast Highway (PA2021-260); c) adopt Resolution No. 2022-67, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Submittal of a Local Coastal Program Amendment to the California Coastal Commission to Amend the Newport Beach Country Club Planned Community Development Plan (PC-47) for the Tennis Club Located at 1602 East Coast Highway (PA2021-260); d) waive full reading, direct the City Clerk to read by title only, and introduce Ordinance No. 2022-19, An Ordinance of the City Council of the City of Newport Beach, California, Approving an Amendment to the Newport Beach Country Club Planned Community Development Plan (PC-47) for the Tennis Club at Newport Beach Located at 1602 East Coast Highway (PA2021-260), and pass on to second reading on October 11, 2022; and e) waive full reading, direct the City Clerk to read by title only, and introduce Ordinance No. 2022-20, An Ordinance of the City Council of the City of Newport Beach, California, Approving the Second Amendment to the Development Agreement (DA2008-001) for the Tennis Club at Newport Beach Located at 1602 East Coast Highway (PA2021-260), and pass on to second reading on October 11, 2022. Council Member Avery stated that the project is not ready to come to Council, but he believes it is a great location, facility, and plan and would be a shame if it cannot be brought together for everyone to win. In response to Council Member Dixon's questions, Community Development Director Jurjis explained the series of steps to obtain a permit, Mr. O Hill clarified that the new plan documents will not include pickleball courts because they already exist and will remain, indicated he agrees with the conditions approved by the Planning Commission and substitute condition suggested by staff, shared a willingness to start the traffic study immediately to gain official approval, and clarified the demolition of tennis courts for the development of a hotel. Community Development Director Jurjis reiterated the application process for pickleball courts and stated that, if Council approves the item, Mr. O Hill will submit a fully revised application to the City. Council Member Dixon discussed next steps and acknowledged the existing pickleball courts, missing traffic study requirement, and stated that this is a fine project. Community Development Director Jurjis noted the entitlements are for tennis courts until Mr. O Hill submits a revised application featuring pickleball courts, which the City will then submit to the CCC. Council Member Brenner expressed the opinion that the applicant made it difficult for Council, the project is not ready for approval, and expressed a desire for the applicant to make the project happen. With Mayor Pro Tem Blom and Council Members Avery, Brenner, Duffield, and O'Neill voting "no," the motion failed 2-5. Motion by Council Member O'Neill, seconded by Council Member Duffield, to continue the item until the meeting after the Planning Commission approves plans that include pickleball courts. With Mayor Muldoon voting "no," the motion carried 6-1. 16. Call for Review — Denial of Reforestation Request for 938 Sandcastle Drive [100-20221 Public Works Director Webb and Parks and Trees Superintendent Pekar utilized a presentation to review the denial, provide background on the initial request, initial inspection findings, staff denial, reforestation process, Parks, Beaches, and Recreation Commission (PB&R) August 2, 2022 meeting details, and basis for the call for review to Council. In response to Council Member Avery's questions, Parks and Trees Superintendent Pekar noted the current tree is 15 years old, a replacement tree would take many years to grow, the new tree would not reach the same height as the current tree, and urban forest planting adds more trees. than losing trees. Volume 65 - Page 404 15-298 Attachment H Correspondence 15-299 Received after Agenda Printed September 27, 2022 Written Comments September 27, 2022, City Council Agenda Comments The following comments on items on the Newport Beach City Council agenda are submitted by: Jim Mosher ( iimmosher(@-yahoo.com ), 2210 Private Road, Newport Beach 92660 (949-548-6229) Item 1. Minutes for the September 13, 2022 City Council Meeting The passages shown in italics below are from the draft minutes with suggested corrections shown in c*�, &eout underline format. The page numbers refer to Volume 65. Page 381, Item SS2, paragraph 3: "Nancy Scarbrough noted sentiment shared among residents regarding fractional ownership during recent community events, asked that Council consider the residents' dissatisfaction, and direct City staff to further explore options to regulate or restrict fractional home ownership." [or "..., and City staff to further explore ..."] Page 383, first full paragraph: "Council MemberAvery noted that, even before Pacaso, the City was starting to lose local control to the State, experienced more density and traffic, agreed with implementing a moratorium, cautioned the potential cost to the City, supported looking at what other cities have done and updating the NBMC, and mitigate mitipatin_g the impacts." [or "... updating the NBMC,—anal to mitigate the impacts."] Page 384, last two bullets: ` Met with Denis L-,abenge LaBonge and Amber Snyder regarding the Fire Safety Council and home hardening efforts. * Attended the General Plan Update Planning Steering Committee meeting, Sherman Gardens Annual Garden Party, League of California Cities Conference, two-day Source -to - Sea Water Conference ..." Page 390, paragraph 5: "Suzanne F^`�er Forster, VP of Banning Ranch Conservancy, provided an update on the Banning Ranch acquisition effort, ..." Item Xlll. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA (NON -DISCUSSION ITEM) Item 1, the draft minutes of the September 13 meeting, on page 385, shows two requests for future agenda items, only one of which appears here, under Item XIII. The other was for "a future agenda item to consider directing staff to review the status of a general aviation issue regarding private jet bias and bring back a report to Council with a plan of action and remedies." I can imagine this could have been withdrawn, perhaps on an assurance that the Aviation Committee was looking into it, but it is always troubling to the public to see requests made on their behalf and then seemingly not acted upon. Item 10. School Resource Officer Program Agreement It is good to see the school district sharing in the cost of this effort, unlike the equally -necessary crossing guards for which the City appears to pay the full cost. 15-300 Item 12. Budget Amendment to Accept a Check from the Friends of the Newport Beach Library and Appropriate Funds to the Library's Fiscal Year 2022-23 Maintenance and Operation Budget It is good to see the Friends continue their remarkable success at fundraising, primarily through the sale of donated books. Formerly the Library Foundation was the larger contributor, serving as the primary conduit for monetary donations. The last few years, however, it seems contributions to the library through them have been largely diverted to their Lecture Hall project, which it could be argued benefits their private organization at least as much as it benefits the library. Item 13. Confirmation of Appointments to the the [sic] Ad Hoc Municipal Code and Council Policy Review Committee Since this committee will apparently focus solely on deleting words from the City's codes and policies, it seems ironic the agenda notice for this item (as shown above) contains a word that could be deleted. That said, one would not guess the committee's very limited function from the notice, and I would have hoped the committee was charged with "review" — that is looking for improvements, rather than only deletions. It might be noted that at least with regard to the Council Policy Manual, prior to 2017, Policy D-3 required an at least annual review not just for deletions, but "for any needed additions, changes or deletions deemed appropriate." It is not clear why the Council dropped that review. Item 15. Ordinance Nos. 2022-19 and 2022-20: Tennis Club at Newport Beach Project Amendment (PA2021-260) It is not clear why the notice copied above focuses on the two ordinances being introduced, since the item recommends the Council also adopt three resolutions, some of which may have more immediate effect. That said, it is frustrating to spend several hours preparing three pages of written comments to the Planning Commission on this topic, and see them not passed on to the Council, but reduced to a single sentence buried on page 15-193 of the agenda packet and neither acknowledged nor addressed anywhere else in the staff report. For those interested, those earlier comments are likely somewhere in the 347 page PDF document Community Development staff has used to archive part of the September 8, 2022, Planning Commission agenda Item 3, as well as, for a little while, starting on page 60 of the 77 pages of "Item No. 3b - Additional Materials Received" posted at the time of the hearing, and included here by reference. The essence of those earlier comments was that staff is deceptively suggesting the City Council has the power to approve this very substantial proposed amendment to the General Plan without the City Charter Section 423 ("Green light") vote by the people that it clearly requires. 15-301 Staff's entire response to date consists of Deputy Director Campbell's dismissal of those comments starting at 1:03:55 in the Planning Commission video: "We've done the Greenlight analysis. We don't agree with Mr. Mosher's viewpoint on the analysis. To adopt his point of view would suggest that the City Council did not approve entitlements for this club and so the increase here with the General Plan Amendment is only 14, 000 square feet and that is pursuant to Council policy, you know with every hotel room equals 1,000 square feet. So, we're following City Council policy to a T on this analysis and it does not result in a vote of the electorate." This is the same Deputy Director Campbell who, as Principal Planner, wrote a November 9, 2011, memo to the Planning Commission stating that changing the voter -approved allocation for tennis courts at this site into an allocation for hotel rooms or building floor area would require processing a General Plan amendment. Yet because Greenlight votes are triggered by General Plan amendments and amending the Plan in 2012 would have triggered a Greenlight vote, the entitlements he refers to above as having been previously approved by the Council were approved without processing a General Plan amendment and therefore without any Greenlight tracking. As a result, everything being requested to be added to the General Plan — 41 hotel rooms, not 14 — is being added for the first time. In addition, counting it's not clear counting hotel rooms larger than 1,000 sf as being 1,000 sf and ignoring the requests for large amounts of ancillary square footage is "we're following City Council policy to a T," for if one looks at Table LU2 (Anomaly Locations) in the General Plan Land Use Element (starting on page 3-18), one sees about half specify a square foot development limit that includes the hotel rooms, and about half specify a development limit in addition to the hotel rooms. The presently proposed amendment on page 15-59 of the staff report is different in appearance from those, and especially unusual in its footnote purporting to explain the origin of the 41 hotel rooms. In the present case, Condition 5 on page 15-50 of the staff report indicates the "41 hotel rooms" will be adding not the assumed 41,000 sf, but rather allowing 61,870 sf of development not currently in the General Plan. Either way, this over the 40,000 sf requiring voter approval. To be sure, the applicant, Mr. O Hill, may have had a good faith belief that when voters approved the comprehensive General Plan update with of Measure V in 2006, they approved enough entitlements for his projected development. For indeed they did, approving on Anomaly 46 not just the existing 3,725 sf clubhouse and 24 tennis courts, but making it eligible for the "MU-H3" floating pool of 540 residences and 65 hotel rooms. But by the time Mr. O Hill submitted his proposal in 2011, other developers had gobbled up all of the MU-H3 floating pool except for 5 residences, which he claimed as his. But (and despite any City Council approvals in 2012) there was no provision left in the General Plan for the 27 or 41 hotel rooms he might like to build. To copy from my comments to the Planning Commission, according to pages 7 and 11 of Resolution No. 2006-77, what was presented to voters and approved by them in 2006 was: 15-302 Anomaly it Number 46 Ll MJ-H3fPP 3.72u 24 TEnJs courts A dddiorra! f rsfcrm pf fa rr Residerl;al pe'lmiftCd ill eccordance wi N i,11U-HI and since no amendments to Anomaly 46 have ever been processed, that is exactly what the General Plan continues to allow at Anomaly 46. The current City Council resolution proposes to amend that to read: Anomaly Statistical Land Use Number Area Designation 46 L1 MU-H3/PR Development Limit (0) 3,725 Development Limit (Other) 8 Tennis Courts 41 Hotel Rooms* Additional Information Residential permitted in accordance with MU- H3 *27 rooms converted from 17 tennis courts per Council Resolution 2012-10 and 14 rooms per General Plan Amendment PA2022- 260 Whatever the footnote might say, the 41 hotel rooms, comprising at least 41,000 sf (and more realistically 61,870 sf) are entirely new, and have never been in the General Plan before. Since either of those is more than 40,000 sf, voter approval is required. But staff says "no." As proof the 27 hotel rooms were not previously added to the General Plan in 2012 "per Council Resolution 2012-10," had they been added then, there would have been evidence of them in the City's Charter Section 423 Statistical Area Tracking Tables for the 10 years following that. But there is no such record because there was no amendment and no prior Greenlight tracking. Shown below is the City's Greenlight Tracking Table for Newport Center (Statistical Area L1) as captured by the Internet Archive's Wayback Machine on March 1, 2021. 15-303 City of Newport Beach Charter Secdon423 Trackirg Table Statistical Area U (Newport Center) Post 2006General Plan Amendments Approved Land Use Element July 1, 2015 (Updated April 15, 20161 (Updated August 13r 2019) Project Name Address Date Approved Project%GPA Number Amendment Description Square Footage Change Dwelling Unit Change AM Peak Hour Trip Change PM Peak Hour Trip Change Newport Be mh Country Club (Clubhouse} 1t2412012 PA20❑S-152 OP20OB-005 Parks and Recreation {PR) - No Change 21,0❑0 0 N/A N/A Viva nteSenior Huusng 8f1312019 PA2019-189 GP201S-003 Private Institutions(PI) to Mixed Use Horizontal {MLLH9) ❑ (Reduction: 45,028 to 16,DCO) 90 26 =_ 100% Tot@s 21,DD6 90 26 =_ 80%Totals 16,800 72 21 A2 Remaining Capacity Without vote 23,200 28 79 58 GPA— General Plan Amendment CLUP—OoaAaILand Use P an 10096Totals —Cum ulutive increases Fes uhingfrom approved GPM:,. Decreases are not included. 80% Totals -Charter Section 423 requires that 800Aof square footage, dwe hng unrt and peak hourtrlp increases of "Prior Amendmentr' be tracked For a period of 10years and added to proposed general plan amendments located within the same Statlrtical Area to determine if the 423 GPA Thresholds are exceeded and a vote of the electorate required- Decreases in any category are not tracked. Charter Section423Thres1holds: 40,000 square feet of non-residential floor arear 'Do duelling units,100 AM or PM Peak Hour trips Note that this prior tracking table does show 21,000 sf added for the neighboring Newport Beach Country Club golf clubhouse on January 24, 2012, which is the reason amending the General Plan to add 27 hotel rooms for the Tennis Club at that time would have broken the 40,000 sf Greenlight limit and required voter approval. In effect, staff is saying they could avoid a Greenlight vote in 2012 by claiming no General Plan amendment took place in 2012, and they can avoid a Greenlight vote in 2022 by claiming a General Plan amendment did take place in 2012. The contradiction should be self-evident. One might argue that since the golf Country Club floor area increase is more than 10 years in the past and has dropped off the Greenlight tracking, Mr. O Hill could avoid a vote now by simply removing one or two hotel rooms from his proposal (assuming the Council is OK counting his rooms as 1,000 sf each and ignoring the large amount of ancillary development he desires). But even then, the point is that the amount new allocation presently being added to the General Plan is much more than staff's claimed "14,000 sf' and needs to be properly acknowledged, for it becomes part of the Greenlight tracking that affects future General Plan amendment requests for the next 10 years. 15-304 Item 16. Call for Review — Denial of Reforestation Request for 938 Sandcastle Drive Considering residents are expected to share in maintaining the City trees in the public parkways adjacent to their homes (primarily by watering them), this appeal by a prominent city figure highlights what could be government over -control in deciding what kind of tree that jointly - maintained tree should be. However, a key expectation of all governments is that the rules they create will be applied equally to all, without favoritism. In the present case, the Parks, Beaches and Recreation Commission's consistent interpretation of the City's current policy has been to deny requests to replace healthy City street trees that are not causing significant damage, especially with a less well -developed specimen. PB&R sometimes even denies replacement of trees that do seem to be causing damage, as the Council may recall from the appeal it heard as Item 20 on August 24, 2021, and upheld 5:2.' So, if the current rule creates what the Council sees as over -control, I think the response should be a modified rule rather than applying the existing rule differently from the way it has been applied to others. The appellant, and all those others, can then come back with a renewed request under the new rule, whatever it may be. Item 18. Community Development Block Grant Program Year 2021-22, Consolidated Annual Performance and Evaluation Report I need to study this item more carefully, but the explanation of the status of substantial amounts of expenditure planned for the last year that either were not spent or have not yet been "drawn" (and why they were not spent or drawn) is less than clear. In addition, with the loan for long -ago improvements in Balboa Village finally payed off, it is not clear to me what the plan is to spend the newly -available money in future years. It might be noted that CDBG funds were used to develop the original OASIS center, and many think there should be a facility offering similar or supplemental services on the west side of town. One of the two trees that was the subject of that denied appeal later suffered limb failures after a night of Santa Ana winds, and was replaced. 15-305 Received after Agenda Printed September 27, 2022 Written Comments September 27, 2022, City Council Agenda Comments The following comments on items on the Newport Beach City Council agenda are submitted by: Jim Mosher ( iimmosher(@-yahoo.com ), 2210 Private Road, Newport Beach 92660 (949-548-6229) Item 1. Minutes for the September 13, 2022 City Council Meeting The passages shown in italics below are from the draft minutes with suggested corrections shown in c*�, &eout underline format. The page numbers refer to Volume 65. Page 381, Item SS2, paragraph 3: "Nancy Scarbrough noted sentiment shared among residents regarding fractional ownership during recent community events, asked that Council consider the residents' dissatisfaction, and direct City staff to further explore options to regulate or restrict fractional home ownership." [or "..., and City staff to further explore ..."] Page 383, first full paragraph: "Council MemberAvery noted that, even before Pacaso, the City was starting to lose local control to the State, experienced more density and traffic, agreed with implementing a moratorium, cautioned the potential cost to the City, supported looking at what other cities have done and updating the NBMC, and mitigate mitipatin_g the impacts." [or "... updating the NBMC,—anal to mitigate the impacts."] Page 384, last two bullets: ` Met with Denis L-,abenge LaBonge and Amber Snyder regarding the Fire Safety Council and home hardening efforts. * Attended the General Plan Update Planning Steering Committee meeting, Sherman Gardens Annual Garden Party, League of California Cities Conference, two-day Source -to - Sea Water Conference ..." Page 390, paragraph 5: "Suzanne F^`�er Forster, VP of Banning Ranch Conservancy, provided an update on the Banning Ranch acquisition effort, ..." Item Xlll. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA (NON -DISCUSSION ITEM) Item 1, the draft minutes of the September 13 meeting, on page 385, shows two requests for future agenda items, only one of which appears here, under Item XIII. The other was for "a future agenda item to consider directing staff to review the status of a general aviation issue regarding private jet bias and bring back a report to Council with a plan of action and remedies." I can imagine this could have been withdrawn, perhaps on an assurance that the Aviation Committee was looking into it, but it is always troubling to the public to see requests made on their behalf and then seemingly not acted upon. Item 10. School Resource Officer Program Agreement It is good to see the school district sharing in the cost of this effort, unlike the equally -necessary crossing guards for which the City appears to pay the full cost. 15-306 Item 12. Budget Amendment to Accept a Check from the Friends of the Newport Beach Library and Appropriate Funds to the Library's Fiscal Year 2022-23 Maintenance and Operation Budget It is good to see the Friends continue their remarkable success at fundraising, primarily through the sale of donated books. Formerly the Library Foundation was the larger contributor, serving as the primary conduit for monetary donations. The last few years, however, it seems contributions to the library through them have been largely diverted to their Lecture Hall project, which it could be argued benefits their private organization at least as much as it benefits the library. Item 13. Confirmation of Appointments to the the [sic] Ad Hoc Municipal Code and Council Policy Review Committee Since this committee will apparently focus solely on deleting words from the City's codes and policies, it seems ironic the agenda notice for this item (as shown above) contains a word that could be deleted. That said, one would not guess the committee's very limited function from the notice, and I would have hoped the committee was charged with "review" — that is looking for improvements, rather than only deletions. It might be noted that at least with regard to the Council Policy Manual, prior to 2017, Policy D-3 required an at least annual review not just for deletions, but "for any needed additions, changes or deletions deemed appropriate." It is not clear why the Council dropped that review. Item 15. Ordinance Nos. 2022-19 and 2022-20: Tennis Club at Newport Beach Project Amendment (PA2021-260) It is not clear why the notice copied above focuses on the two ordinances being introduced, since the item recommends the Council also adopt three resolutions, some of which may have more immediate effect. That said, it is frustrating to spend several hours preparing three pages of written comments to the Planning Commission on this topic, and see them not passed on to the Council, but reduced to a single sentence buried on page 15-193 of the agenda packet and neither acknowledged nor addressed anywhere else in the staff report. For those interested, those earlier comments are likely somewhere in the 347 page PDF document Community Development staff has used to archive part of the September 8, 2022, Planning Commission agenda Item 3, as well as, for a little while, starting on page 60 of the 77 pages of "Item No. 3b - Additional Materials Received" posted at the time of the hearing, and included here by reference. The essence of those earlier comments was that staff is deceptively suggesting the City Council has the power to approve this very substantial proposed amendment to the General Plan without the City Charter Section 423 ("Green light") vote by the people that it clearly requires. 15-307 Staff's entire response to date consists of Deputy Director Campbell's dismissal of those comments starting at 1:03:55 in the Planning Commission video: "We've done the Greenlight analysis. We don't agree with Mr. Mosher's viewpoint on the analysis. To adopt his point of view would suggest that the City Council did not approve entitlements for this club and so the increase here with the General Plan Amendment is only 14, 000 square feet and that is pursuant to Council policy, you know with every hotel room equals 1,000 square feet. So, we're following City Council policy to a T on this analysis and it does not result in a vote of the electorate." This is the same Deputy Director Campbell who, as Principal Planner, wrote a November 9, 2011, memo to the Planning Commission stating that changing the voter -approved allocation for tennis courts at this site into an allocation for hotel rooms or building floor area would require processing a General Plan amendment. Yet because Greenlight votes are triggered by General Plan amendments and amending the Plan in 2012 would have triggered a Greenlight vote, the entitlements he refers to above as having been previously approved by the Council were approved without processing a General Plan amendment and therefore without any Greenlight tracking. As a result, everything being requested to be added to the General Plan — 41 hotel rooms, not 14 — is being added for the first time. In addition, counting it's not clear counting hotel rooms larger than 1,000 sf as being 1,000 sf and ignoring the requests for large amounts of ancillary square footage is "we're following City Council policy to a T," for if one looks at Table LU2 (Anomaly Locations) in the General Plan Land Use Element (starting on page 3-18), one sees about half specify a square foot development limit that includes the hotel rooms, and about half specify a development limit in addition to the hotel rooms. The presently proposed amendment on page 15-59 of the staff report is different in appearance from those, and especially unusual in its footnote purporting to explain the origin of the 41 hotel rooms. In the present case, Condition 5 on page 15-50 of the staff report indicates the "41 hotel rooms" will be adding not the assumed 41,000 sf, but rather allowing 61,870 sf of development not currently in the General Plan. Either way, this over the 40,000 sf requiring voter approval. To be sure, the applicant, Mr. O Hill, may have had a good faith belief that when voters approved the comprehensive General Plan update with of Measure V in 2006, they approved enough entitlements for his projected development. For indeed they did, approving on Anomaly 46 not just the existing 3,725 sf clubhouse and 24 tennis courts, but making it eligible for the "MU-H3" floating pool of 540 residences and 65 hotel rooms. But by the time Mr. O Hill submitted his proposal in 2011, other developers had gobbled up all of the MU-H3 floating pool except for 5 residences, which he claimed as his. But (and despite any City Council approvals in 2012) there was no provision left in the General Plan for the 27 or 41 hotel rooms he might like to build. To copy from my comments to the Planning Commission, according to pages 7 and 11 of Resolution No. 2006-77, what was presented to voters and approved by them in 2006 was: 15-308 Anomaly it Number 46 Ll MJ-H3fPP 3.72u 24 TEnJs courts A dddiorra! f rsfcrm pf fa rr Residerl;al pe'lmiftCd ill eccordance wi N i,11U-HI and since no amendments to Anomaly 46 have ever been processed, that is exactly what the General Plan continues to allow at Anomaly 46. The current City Council resolution proposes to amend that to read: Anomaly Statistical Land Use Number Area Designation 46 L1 MU-H3/PR Development Limit (0) 3,725 Development Limit (Other) 8 Tennis Courts 41 Hotel Rooms* Additional Information Residential permitted in accordance with MU- H3 *27 rooms converted from 17 tennis courts per Council Resolution 2012-10 and 14 rooms per General Plan Amendment PA2022- 260 Whatever the footnote might say, the 41 hotel rooms, comprising at least 41,000 sf (and more realistically 61,870 sf) are entirely new, and have never been in the General Plan before. Since either of those is more than 40,000 sf, voter approval is required. But staff says "no." As proof the 27 hotel rooms were not previously added to the General Plan in 2012 "per Council Resolution 2012-10," had they been added then, there would have been evidence of them in the City's Charter Section 423 Statistical Area Tracking Tables for the 10 years following that. But there is no such record because there was no amendment and no prior Greenlight tracking. Shown below is the City's Greenlight Tracking Table for Newport Center (Statistical Area L1) as captured by the Internet Archive's Wayback Machine on March 1, 2021. 15-309 City of Newport Beach Charter Secdon423 Trackirg Table Statistical Area U (Newport Center) Post 2006General Plan Amendments Approved Land Use Element July 1, 2015 (Updated April 15, 20161 (Updated August 13r 2019) Project Name Address Date Approved Project%GPA Number Amendment Description Square Footage Change Dwelling Unit Change AM Peak Hour Trip Change PM Peak Hour Trip Change Newport Be mh Country Club (Clubhouse} 1t2412012 PA20❑S-152 OP20OB-005 Parks and Recreation {PR) - No Change 21,0❑0 0 N/A N/A Viva nteSenior Huusng 8f1312019 PA2019-189 GP201S-003 Private Institutions(PI) to Mixed Use Horizontal {MLLH9) ❑ (Reduction: 45,028 to 16,DCO) 90 26 =_ 100% Tot@s 21,DD6 90 26 =_ 80%Totals 16,800 72 21 A2 Remaining Capacity Without vote 23,200 28 79 58 GPA— General Plan Amendment CLUP—OoaAaILand Use P an 10096Totals —Cum ulutive increases Fes uhingfrom approved GPM:,. Decreases are not included. 80% Totals -Charter Section 423 requires that 800Aof square footage, dwe hng unrt and peak hourtrlp increases of "Prior Amendmentr' be tracked For a period of 10years and added to proposed general plan amendments located within the same Statlrtical Area to determine if the 423 GPA Thresholds are exceeded and a vote of the electorate required- Decreases in any category are not tracked. Charter Section423Thres1holds: 40,000 square feet of non-residential floor arear 'Do duelling units,100 AM or PM Peak Hour trips Note that this prior tracking table does show 21,000 sf added for the neighboring Newport Beach Country Club golf clubhouse on January 24, 2012, which is the reason amending the General Plan to add 27 hotel rooms for the Tennis Club at that time would have broken the 40,000 sf Greenlight limit and required voter approval. In effect, staff is saying they could avoid a Greenlight vote in 2012 by claiming no General Plan amendment took place in 2012, and they can avoid a Greenlight vote in 2022 by claiming a General Plan amendment did take place in 2012. The contradiction should be self-evident. One might argue that since the golf Country Club floor area increase is more than 10 years in the past and has dropped off the Greenlight tracking, Mr. O Hill could avoid a vote now by simply removing one or two hotel rooms from his proposal (assuming the Council is OK counting his rooms as 1,000 sf each and ignoring the large amount of ancillary development he desires). But even then, the point is that the amount new allocation presently being added to the General Plan is much more than staff's claimed "14,000 sf' and needs to be properly acknowledged, for it becomes part of the Greenlight tracking that affects future General Plan amendment requests for the next 10 years. 15-310 Item 16. Call for Review — Denial of Reforestation Request for 938 Sandcastle Drive Considering residents are expected to share in maintaining the City trees in the public parkways adjacent to their homes (primarily by watering them), this appeal by a prominent city figure highlights what could be government over -control in deciding what kind of tree that jointly - maintained tree should be. However, a key expectation of all governments is that the rules they create will be applied equally to all, without favoritism. In the present case, the Parks, Beaches and Recreation Commission's consistent interpretation of the City's current policy has been to deny requests to replace healthy City street trees that are not causing significant damage, especially with a less well -developed specimen. PB&R sometimes even denies replacement of trees that do seem to be causing damage, as the Council may recall from the appeal it heard as Item 20 on August 24, 2021, and upheld 5:2.' So, if the current rule creates what the Council sees as over -control, I think the response should be a modified rule rather than applying the existing rule differently from the way it has been applied to others. The appellant, and all those others, can then come back with a renewed request under the new rule, whatever it may be. Item 18. Community Development Block Grant Program Year 2021-22, Consolidated Annual Performance and Evaluation Report I need to study this item more carefully, but the explanation of the status of substantial amounts of expenditure planned for the last year that either were not spent or have not yet been "drawn" (and why they were not spent or drawn) is less than clear. In addition, with the loan for long -ago improvements in Balboa Village finally payed off, it is not clear to me what the plan is to spend the newly -available money in future years. It might be noted that CDBG funds were used to develop the original OASIS center, and many think there should be a facility offering similar or supplemental services on the west side of town. One of the two trees that was the subject of that denied appeal later suffered limb failures after a night of Santa Ana winds, and was replaced. 15-311 September 27, 2022 Item No. 15 From: Rieff, Kim To: Mulvey. Jennifer Subject: FW: Pickleball- AGAINST the project amendment Date: September 20, 2022 11:54:54 AM -----Original Message ----- From: Denise Larson <jdsealbeach@gmail.com> Sent: September 19, 2022 1:58 PM To: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: Pickleball- AGAINST the project amendment [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. TO: Newport Beach City Council RE: Tennis Club at Newport Beach Project Amendment - Project File No.: PA2021-260 FROM: Denise Larson POSITION: AGAINST the project amendment One of the property owners has proposed to replace the Tennis and Pickleball Club of Newport Beach with a small hotel and a fraction of the tennis courts. The 35 Pickleball courts will be demolished. This will result in the loss of an incredibly -frequently -used facility that literally serves thousands of Newport Beach residents. Every day, literally hundreds of residents use the club. The project, if passed, will represent an immediate, huge loss for Newport Beach residents and others who attend from surrounding city's. This Amendment proposal is coming up for a City Council vote on September 27th, and we urge the Council to deny it. I live in Seal Beach but I'm at the club 5 days a week. I shop and frequent restaurants on daily basis along with my husband. When the clubs has a tournament, we often get a hotel room to save travel time since they usually start early. It's such a special place. We were mislead by management in signing a petition several months ago I do not support the current Plan B. Please deny Plan B! Denise Larson 714-747-5550 15-312 September 27, 2022 Item No. 15 From: Rieff, Kim To: Mulvey. Jennifer Subject: FW: Project No PA2021-260 Date: September 20, 2022 11:55:39 AM -----Original Message ----- From: Alison Sims <afsims@prodigy.net> Sent: September 19, 2022 9:46 AM To: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: Project No PA2021-260 [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. TO: Newport Beach City Council RE: Tennis Club at Newport Beach Project Amendment - Project File No.: PA2021-260 FROM: (Name) POSITION: AGAINST the project amendment Dear Council Members: One of the property owners has proposed to replace the Tennis and Pickleball Club of Newport Beach with a small hotel and a fraction of the tennis courts. The 35 Pickleball courts will be demolished. This will result in the loss of an incredible facility that serves thousands of Newport Beach residents. Every day, hundreds of residents use the club. The project, if passed, will represent an immediate, huge loss for Newport Beach residents, myself included. I am so thankful for my daily Pickleball matches for both exercise and friendships. As a physician for 30 years, it has saved my sanity these past 2 years while working hard at the front lines of the pandemic in urgent care. I can attest that ALL 2000+ members feel that this club that accommodates hundreds of us daily has made our lives richer and healthier. This Amendment proposal is coming up for a City Council vote on September 27th, and we urge the Council to deny it. Thank you for your consideration of all the residents'/members' involved in this proposal. Sincerely, Alison Sims, M.D. Marque Urgent Care, Newport Beach CA Sent from my iPhone 15-313 TO: Honorable Mayor, Newport Beach City Council Members and City Manager FR: Don & Judy Cole- NB Residents and Members of the NB Tennis & Pickleball Club Re: The Tennis Club at Newport Beach Project Amendment- PA2021-260 Robert O'Hill- the managing owner of the property- has proposed to replace the Tennis and Pickleball Club of Newport Beach with a boutique bungalow hotel and a fraction of the courts that currently exist. The members of the "Club" have been misled all along the process into supporting the proposed amendment and inadvertently, the Project itself. While earlier this year the members supported a campaign to stop the development of high rise apartments on the property- proposed by O'Hill's other partners, it is not true that those petitions supported O'Hill's plan or amendment as was stated to the Planning Commission at the last meeting, and to Stu News Newport the following day. O'Hill stated to the Club membership on multiple occasions that the tennis courts represented on the original plans as tennis were only there because there was no pickleball 10 years ago when the original plans were approved. He explained that the plan was to build out the facility into an upgraded venue with only pickleball courts. Site plans as follows were presented to the members by O'Hill at a July 7 meeting: 15-314 ,EW [�fIER NICK BOLLETTIERI STADIUM TENNIS & PICKLE BALL COU9- 2 NEWSTAViL0ARMEMICOURI 2q EnS'W P1C r Ma COURTS 26 TOTALPIclVLE&gLCOms t,j Nw STAow Tam C%RRTS O'Hill and Abdali (the managing director of the Club) both reiterated that there will be NO tennis courts (even the center stadium tennis court would be replaced with pickleball) and NO interruption in play. Further, O'Hill committed that the site plans for the City would be updated to reflect Pickleball for the next presentation to the Planning Commission and then to the City Council. As it turned out, the plans that were submitted were not updated as promised and were submitted with all tennis courts. When confronted, O'Hill and Abdali continued to promise that pickleball will continue even if the plans don't designate Pickleball. The day before the Planning Commission meeting on September 8, O'Hill and Abdali asked the members NOT to come to the podium for individual public comments at the Planning Commission meeting to save time, but to stand all at once when requested to represent their endorsement of the plans. So at the Planning Commission Meeting- AFTER public comments were complete, AFTER several NBPC members stood upon request to support the amendment, and right before the vote- the commissioners and staff clarified there is NO pickleball under this plan. A condition of approval for the amendment is that "Pickleball courts shall not be permitted after the issuance of a Certificate of Occupancy for the Tennis Clubhouse and Spa and Fitness Center unless the property owner and/or pickleball facility operator shall follow any and all City of Newport Beach General Plan, Municipal Code, or other applicable requirements in order to continue the use of pickleball courts". Sadly, the amendment passed. Pickleball IS the Tennis Club today and yet the 35 existing PB courts (which are not even reflected on the as built/existing plan) will be demolished per the new plans. This will result in 15-315 the loss of an incredibly and frequently used facility that serves thousands of Newport Beach residents. The project, if passed will represent a huge loss for Newport Beach residents. It is home to almost 2000 residents playing pickleball each week and that number continues to grow. The Club houses tennis and pickleball camps, programs and youth activities along with countless charity functions and major tournaments that serve thousands. It has become clear that the proposal for hotel units and a few tennis courts turns it into something that serves only the property owner- not the interests of the City of Newport Beach residents. Pickleball and these types of events will vanish and already there are not enough pickleball courts in Newport Beach. Bonita Canyon and the few new additional courts planned in Newport Coast are woefully inadequate. We need more open space with more recreational areas to enjoy outdoor physical activity and the benefits that come with it. The Club- which spans 60 years of our city's history- is a rare facility that serves every age group in Newport- from our kids to our seniors. Replacing the Club with hotel rooms and a minimized recreation space will only enrich a few at the expense of . We urge the City Council to deny this plan amendment. Thank you. 15-316 Received after Agenda Printed September 27, 2022 Item No. 15 From: City Clerk"s Office To: Mulvey, Jennifer; Rieff, Kim Subject: FW: Petition Asking Council to Reject PA2021-260 (476 Signatures) Date: September 26, 2022 11:57:35 AM Attachments: Save Our Club Signatures - 9-26-2022.pdf 3.0 Tennis Club at Newport Beach Project Amendment PA2021-260.pdf.pdf From: Dalen Lawrence <dalenlawrence@icloud.com> Sent: Monday, September 26, 2022 11:56:45 AM (UTC-08:00) Pacific Time (US & Canada) To: Dept - City Council<CityCouncil@newportbeachca.gov> Cc: City Clerk's Office <CityClerk@newportbeachca.gov> Subject: Petition Asking Council to Reject PA2021-260 (476 Signatures) [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Greetings City of Newport Council Members: I am submitting the attached petition asking the City Council to vote against and reject The Tennis Club at Newport Beach Project Amendment (PA2021-260) submitted by Golf Realty Fund. My name is Dalen Lawrence and I live in Eastbluff. This completely digital petition was generated and administered using the services of gooetitions.com. The signatures all have verifiable email addresses and represent a high level of quality. Our group collected 476 signatures mainly by posting links on a member only chat forum. The overwhelming majority of these names are members of TTC. Also, the majority of the households represent Newport Beach residents. These names were collected in 15 days. Had we more time, there would be significantly more signatures. The petition language is simple: We the undersigned call on the Newport Beach City Council to deny the following Development Plan Amendment: The Tennis Club at Newport Beach Project Amendment (PA2021-260) submitted by Golf Realty Fund that includes the demolition of the club and its replacement by a hotel. The language of the petition comes from Page 8 of the planning commission hearing. (Attached) 15-317 Please consider our petition in making your decision. Thank you, Dalen Lawrence 851 Domingo Dr. #13 Newport Beach, CA 92660 206-556-0936 15-318 Save Our Club Published by Friend Of TTC on 12th Sep 2022 We strongly oppose the plan to demolish The Tennis Club at Newport Beach and replace it with a hotel. For 60 years, generations of Newport Beach families have utilized this club as a recreation destination and it is currently home to nearly 2000 members that have built a community around the clubs 31 pickleball courts, 15 tennis courts and a newly remodeled clubhouse. Not only does this historic club provide its members with life changing mental and physical health benefits from playing pickleball and tennis, it is also home to many of the communities philanthropic events which support local schools and charities. In addition it has become one of the countries largest pickleball and tennis event venues supporting the City's hospitality industry. We the undersigned call on the Newport Beach City Council to deny the following Development Plan Amendment: The Tennis Club at Newport Beach Project Amendment (PA2021-260) submitted by Golf Realty Fund that includes the demolition of the club and its replacement by a hotel. Powered by GoPetition 15-319 Tennis Club at Newport Beach Project Amendment (PA2021-260) Planning Commission, «HearingDATE» Page 8 The anticipated duration of construction of the Proposed Project is approximately 20 months, which will begin with the demolition of the existing tennis and pickleball courts and portion of the parking lot. Six (6) tennis courts are to be maintained for use during construction. The construction of the hotel rooms, tennis club house and stadium court will follow immediately and will be completed with the construction of the residential units. A Phasing Plan is included as part of the Project Plans and is attached to the Staff Report (Attachment No. PC 6). The property has an existing parking lot with two (2) entrances currently taken from Clubhouse Drive, which has a westerly outlet to East Coast Highway and an easterly outlet to Granville Drive and Newport Center Drive. During the various phases of construction, the easterly entrance to the parking lot will remain available to the public for parking and will provide direct access for the modular office trailer and portable toilets, while the westerly entrance will be for construction access only. A Construction 11 15-320 # Title First name Last name Email Address 1 1 1 Region 1 Mr Dalen Lawrence islandviking63@gmail.com Newport Beach CA 92660 USA Sep 12, 2022 2 Rachel Hong rachel@ebsmdservice.com 208 East balboa blvd Newport Beach Ca 92661 USA Sep 13, 2022 3 Mr Ken Block block333@me.com 1531, Santanella Terrace Corona del mar Ca 92625 USA Sep 13, 2022 4 Renee Carter reneecarterl2@gmail.com Dana Point Orange County Sep 13, 2022 5 Hannah Doolin hannandoolinl5@gmail.com 221 E 20th St #B Costa Mesa CA 92627 USA Sep 13, 2022 6 Sawyer Shrock nachotaco6@gmail.com 217 E Bay Newport Beach CA 92661 USA Sep 13, 2022 7 Samantha Nikki Hoyt samanthanikk@gmail.com 204 Via Eboli Newport Beach CA 92663 USA Sep 13, 2022 8 Mrs Catherine Raack catraack@gmail.com 1942 Port Ramsgate PI Newport Beach Ca 92660 Sep 13, 2022 9 Mrs Deborah Schwartz debbiek.schwartz@gmail.com 65 Ocean Vista Newport Beach California 192660 USA Sep 13, 2022 10 Lynn Salo lynndsalo@gmail.com 308 B Iris Ave Corona del Mar Californis 92625 Sep 13, 2022 11 Mr Cooper Hagmaier coophag@gmail.com 217 E Bay Newport Beach CA 92661 USA Sep 13, 2022 12 Michelle Hatch tnsdiva@yahoo.com 50 Seaborough Newport Beach Ca 92660 Sep 13, 2022 13 Carol McPhillips carolmcp@yahoo.com Newport Beach CA 92663 USA Sep 13, 2022 14 Mr Neil Schwartz neil@century2lmasters.com 65 ocean vista Newport Beach CA 92660 USA Sep 13, 2022 15 Mrs Lisa Daly-mcgraw ldaly949@gmail.com 2006 Windward Lane, Newport Beach, Ca 92660 Newport beach Ca us Sep 13, 2022 Please save our beautiful club from becoming a hotel. 16 Imaggie IKehrer maggiekehrerl3@gmail.com 131 Ensueno West lIrvine ICA 192620 1 ISep 13, 2022 Pickleball courts bring in money for the city. The Club is a premium club with 33 pickleball courts. It is known as one of the best facilities in the United States. Save pickleball and the Club as it is. 17 Natalie Adams neadamss27@gmail.com 274 Palmer, Unit 1/2 Costa Mesa Ca 92627 USA Sep 13, 2022 18 Mr Jon Rosen 'rosen0l@aol.com Newport Beach CA 92660 USA Sep 13, 2022 19 Charlotte Saydah csaydah@gmail.com 531 Promontory Drive West Newport Beach CA 92660 Sep 13, 2022 20 Ms Camille Burke camille.burke@gmail.com 117 Collins Avenue Newport Beach Ca 92662 USA Sep 13, 2022 I have been playing at this Club since the 1960s when it was the Tennis Club for the Balboa Bay Club. It has been a great part of Newport Beach. 21 Piper Vaughn pipervm@gmail.com 364 16th Place, A Newport Beach CA 92627 Sep 13, 2022 22 Mrs. Kathy Ursini kathyursini@gmail.com 1836 Port Taggart Place Newport Beach California 92660 Sep 13, 2022 23 Melissa Link longhornlink@hotmail.com Corona del Mar CA 92625 Sep 13, 2022 24 Sandy Selak sandyselak@msn.com 2744 W Keller Ave Santa Ana CA 92704 USA Sep 13, 2022 25 Cyndi Devereaux cyndidevereaux@icloud.com 132 Via Yella Newport Beach Ca 92663 Sep 13, 2022 26 Mr Scott Brown scottb@crestlinefunding.com Newport Beach CA 92660 Sep 13, 2022 27 Mr Todd Habermehl plover00basics@icloud.com Newport Beach CA 92660 Sep 13, 2022 28 Mr. Steve De Silva stevendesilva@gmail.com Newport Beach Ca Sep 13, 2022 29 Mr Brandon Zakour b_zakour@yahoo.com 9281 Sunridge Drive, Huntington Beach CA 92646 USA Sep 13, 2022 30 Scott Warner maltoman@yahoo.com 4104 River Newport Beach California Newport Beach USA Sep 13, 2022 31 Mr Mark Colon mark999colon@yahoo.com 164 Merrill pl #D Costa Mesa CAlifornia 92627 USA Sep 13, 2022 32 Jeffrey Bethel 'bethel@lee-associates.com Newport Beach CA USA Sep 13, 2022 33 jMr. Joshua Brown 'oshua@yshift.com 3918 Teakwood Santa Ana CA 92707 Sep 13, 2022 34 Darcy Bouzeos darcy@dlbltd.com 6300 San Joaquin Plaza Newport Beach CA 92660 Sep 13, 2022 Powered by GoPetition 15-321 # Title First name Last name Email Address city State Postcode Region Date 35 Kevin Dayan dayan.kevin@hotmail.com Irvine CA USA Sep 13, 2022 36 Mr Dave Strauss dave.strauss@icloud.com 507 Playa Newport Beach Ca 92670 Sep 13, 2022 37 B Tropp bernardtropp@gmail.com Irvine CA 92603 Sep 13, 2022 38 Ms Dawna Clark dawna.clark@hotmail.com 211 Garnet Ave Newport Beach California 92662 USA Sep 13, 2022 39 Mr Chris Gambino Gambinochris@gmail.com 798 Via Los Altos Laguna Woods California 92637 Sep 13, 2022 Cg 40 jDanielle ITheriot denyelltheriot@yahoo.com 1105 via Antibes lNewport Beach ICA 192663 JUSA ISep 13, 2022 41 Mr lHarold ISchneider hofftheback@gmail.com 115 Curl dr jCorona Del Mar 10range 192625 1 ISep 13, 2022 Overall more revenue will come in through the tennis and Pickleball venue. 42 lCraig lReese craig.reese@me.com 1169A East 21st Street lCosta Mesa ICA 192627 JUSA ISep 13, 2022 43 Ms. lKatherine I Skinner kskinn22@gmail.com 11000 South Coast Dr ICosta Mesa ICA 192626 1 ISep 13, 2022 Pickleball has brought together people from all over OC to share a positive and healthy "addiction" to this sport. Keep our paddles up!! 44 Istacy lWyatt wyattfour@aol.com 1416 39th INewport Beach California 92663 ISep 13, 2022 Newport Beach does not currently have enough public Pickleball courts to offer its residents. The few currently offered are always impacted at peak hours. These club courts provide a much needed and utilized venue to our community. Please vote to preserve the Pickleball courts. 45 Ms Stephanie Kwock stephaniekwock@gmail.com 905 Via Lido Nord Newport Beach California 92663 USA Sep 13, 2022 46 Mrs Wendy Hafer Cox whafercox@aol.com 2407 Bunya St Newport Beach CA 92660 USA Sep 13, 2022 47 Mr Andrew Matlaf ocshotcalla@yahoo.com 17 Elderberry Irvine California 92603 USA Sep 13, 2022 48 Brandy Habermehl brandyhabermehl@gmail.com 1942 Port Cardigan Place Newport Beach CA 92660 Sep 13, 2022 49 Mr. 113rian jTong brianktong@me.com 313 Vista Baya lCosta Mesa California 192627 IUSA Sep 13, 2022 50 Mr jPeter lGrande pete_grande@hotmail.com Corona Del Mar CA 92625 Sep 13, 2022 51 Mrs. lCate jHeck cateheck@gmail.com 201 Via Ravenna Newport Beach CA 92663 USA Sep 13, 2022 52 Ms ILili 113ender Ilili bender@yahoo.com 432 Cabrillo Terrace Corona del Mar CA 92625 USA Sep 13, 2022 I strongly agree with this petition! Club members have been lied to by the club manager Sean and half landowner O'Hill. That is not fair or appropriate. 53 Dr. RICHARD STERLING richardbsterling@gmail.com 11561 Ranch Hill North Tustin California 92705 USA Sep 13, 2022 54 Ms. Judith Tong 'udydtong@gmail.com 313 Vista Baya Costa Mesa California 92627 USA Sep 13, 2022 55 Becky Fallon beckyfallonl5@gmail.com PO Box 1755 Newport Beach California 92659 Sep 13, 2022 56 Ann Macias annc.macias@gmail.com 47 Pinzon Rancho Santa Margarita California 92688 USA Sep 13, 2022 57 Mrs jNancy Vohnson mommananl@gmail.com 12815 , Ebbtide Rd lCorona Del Mar lCalifornia 192625 IUSA jSep 13, 2022 This club has changed my life for the better. The community, the exercise I'm getting, the relationships I've made. I've played in tournaments/fundraisers and daily ladders and live ball glasses. I'm a very active member. 58 Mrs Kathleen Murphy mikekathymurphy29@gmail.com 105 7th Street Newport Beach California 92661 USA Sep 13, 2022 59 Mrs. Lynn Richardson hbrunnerl0@aol.com Newport Beach California 92661 USA Sep 13, 2022 60 Mrs Carol Crisostomo 'zuswon@att.net 18317 Goldbark way Yorba linda Ca 92886 Sep 13, 2022 61 Kathleen Bauer kdbauer5@gmail.com 115 via jucar Newport Beach Ca 92663 Sep 13, 2022 62 Nancy Kelleher nancykelleher3@gmail.com 119 Topaz Ave Newport Beach CA 92662 Sep 13, 2022 63 Mrs Beverley McMullen bmcmullen413@gmail.com 2716 Vista del Oro Newport Beach California 92660 USA Sep 13, 2022 64 John 'ohn ballas ballasl@att.net 3981 BALMORAL DR, Street Address 2, Apartment or Suite Number Yorba Linda CA 92886 USA Sep 13, 2022 65 jMrs Susan Vigil vigil.susan@gmail.com newport beach CA 92663 USA Sep 13, 2022 66 Ims. jMerTy jPatton merrypatton@gmail.com 1122 Magnolia ICosta Mesa ICA 192627 Sep 13. 2022 Powered by GoPetition 15-322 # Title First name Last name Email Address Postcode 1 67 Mr IMason Wei mkwei202@yahoo.com 11238 INewport Beach ICA 192660 JUSA JSep 13, 2022 Pickleball for life 68 Mr jKyle IVittitoe kyle.vittitoe@gmail.com 124351 Lake Shore Ln ILake Forest lCalifornia 192630 JUSA ISep 13, 2022 This club is like no other I have been apart of and has had a deeply positive influence on me all who participate in its supportive and friendly atmosphere. This unique and rare community has given so much back to us all and to lose it would be truly tragic. What I want most is to allow my two young boys to grow up a part of this wonderful place without fear of losing it. I humbly ask that you please consider keeping our community together. Thank you. -Kyle Vittitoe 69 Ms. Michelle Poage mpoagee@yahoo.com 14841 Rattan St Irvine California 92604 Sep 13, 2022 70 Mrs Patti Blood ocpattib@gnail.com 2063 Monrovia Ave Costa Mesa California 92627 USA Sep 13, 2022 71 Mrs Maria Solomon mariasolomon72@me.com 1539 Sylvia Lane Newport Beach CA 92660 Sep 13, 2022 72 Denise Larson 'dsealbeach@gmail.com 840 Driftwood Ave Seal Beach Ca 90740 USA Sep 13, 2022 I'm so sad to hear the club might actually be torn down. We love the club and it has changed our lives for the better. New friends, exercise, competition and community. We spend 5 days a week at the club, playing shopping and eating out in Newport. We have even considered moving closer to the club. That is how much we love it. It would be a terrible loss for us, all members and Newport Beach. 73 eff Larson 'effrey.n.larson@gmail.com 840 Driftwood Avenue Seal Beach CA 90740 USA Sep 13, 2022 74 Marshall Solomon msolomon72@me.vom 1539 Sylvia Lane Newport Beach CA 92660 Sep 13, 2022 75 Mr Paul Jensen terratec@att.net 4600 Wayne Rd Corona Del Mar USA 92625 Sep 13, 2022 76 Mrs Jane Newcombe 'anenew@sbcglobal.net 1351 Canterbury Ln Fullerton CA 92831-1042 USA Sep 13, 2022 Please consider a plan that will keep our club and keep Pickleball. The community needs this! 77 IMS Isusan M Imaguire suzimag5l@me.com 1654 Catalina ILaguna Beach ICA 192651 JUSA ISep 13, 2022 Please keep Pickleball at The Tennis club at Newport Beach. as it has united our community- pickleball is sport that is inclusive to all- the reason why it is growing so fast in our country is because it supports living a healthy lifestyle. The sport of pickleball is life changing Please don't pass on the opportunity to make a positive impact in so many peoples lives. 78 Ms ILaura Iseverson Lseverson5@gmail.com 11865 Port Taggart PI INewportBeach ICA 192660 JUSA ISep 13, 2022 This club promotes community and connection. Especially during a time when there was disconnection, Covid brought fear and isolation. Do not take away something that promotes health and well-being for 2000 members! 79 Julie Taylor 'ulietaylor@cox.net 21 Rochelle Newport Coast CA 92657 USA Sep 13, 2022 80 Ms Pam Cherpas pamelaschwarz777@gmail.com 5611 Seashore Newport Beach CA 92663 USA Sep 13, 2022 81 Marianne Hauser mariannehauser5@yahoo.com 603, Marigold Ave Corona Del Mar CA 92625 USA Sep 13, 2022 82 Ms. Erin Hendricks erin@roadrunner.com 3207-A Broad St Newport Beach Usa 92663 Sep 13, 2022 83 Karen Lamie karenlamie49@gmail.com 23 Jupiter Hills Dr Newport Beach Ca 92660 Sep 13, 2022 84 janell Stojkovich 'anellagoode@gmafl.com 3395 Michelson Dr, #4143 Irvine CA 92612 Sep 13, 2022 85 Ms IKelly jPierce chelseyfierce@aol.com 1306 Encina INewport Beach 10range 192660 IUSA ISep 13, 2022 Leave our club alone. 86 Ms jDana. lReston danareston@gmafl.com 1131 Turquoise Ave INewport Beach JUSA 1922662 1 ISep 13, 2022 Please save our club. The T&PCNB is truly a community gathering place that has highly improved the lives of its members. We are a huge Newport Beach based community who gather for sport, friendship, physical and mental health well being. And numerous charitable events which benefits EVERYONE in our Newport Beach community. And, Newport Is a tight community. That's what makes it SO SPECIAL AND UNIQUE. Please don't allow greed to diminish our treasured community. There are MANY ways for the owners to monetize this property without destroying something that is so dear and life affirming to so many. DANA RESTON 87 Mr Paul Holmes paulholuk@yahoo.co.uk 113 e 15th street, apt 1 Newport Beach California 92663 USA Sep 13, 2022 88 Mrs Kym Whitney kymwhitney@live.com Newport Beach California USA Sep 13, 2022 89 Manel Bozarth manal@agentinc.co 3500 E. Coast Hwy. #110 Corona del Mar CA 92625 USA Sep 13, 2022 Safe Pickleball courts for the health and well-being of our community. 90 Mr 113rian ISchuler bk.schulz@yahoo.com 11601 Harrow PI INewport Beach lCalifornia 192660 1 ISep 13, 2022 If this proposal in fact does not allow for Pickleball courts, I am 100% against this. We were apparently lied to by owner and managing partner. Please don't allow this plan to move forward. Powered by GoPetition 15-323 # Title First name Last name Email Address 1 1 1 Region 91 Ken Arsenian kenarsen@yahoo.com 3301 Clay Street Newport Beach CA 92663 Sep 13, 2022 92 Ed Abels eda823@gmail.com 3334 East Coast Hwy -403 Corona del Mar CA 92625 USA Sep 13, 2022 93 Mr. Evan Shinder evan@oneplusonemfg.com 325 Monte Carlo Newport Beach CA 92660 USA Sep 13, 2022 94 Mr Tracy Shimazu tracyshimazu@icloud.com 19 Seabird Ct Newport Beach CA 92663 USA Sep 13, 2022 95 jMr Veffrey Blackburn blackburnjr07@gmail.com 125515 lone Pine Circle Laguna hills CA 192653 USA Sep 13, 2022 96 Ms Tracy Wood tracy-wood@cox.net 530 S Bay Front I Newport beach Ca 92662 Sep 13, 2022 97 Mr ames jBaur imBaur23@gmail.com 12135 Iris Place ICosta Mesa California 192627 JUSA ISep 13, 2022 Save our Club!! 98 Mrs. IYolanda INewton yolandamarie@me.com 1412 Flower st. lCosta Mesa ICa 192627 JUSA ISep 13, 2022 I'm a member and have been for years. My kids now grown adults learned to play tennis here. It's a community institution. We don't need another hotel! 99 Ms oanne IMotshagen 'mots@hotmail.com 1228 magnolia street ICosta Mesa ICalifornia 192627 JUSA Sep 13, 2022 100 Ms. ace Williams ace.promo@gmail.com 12935 Newport Ave. Apt #A Tustin, CA Orange County 92780 Sep 13, 2022 Save our club! 101 Ms. lRenee lHadley flyingmamal4l5@aol.com I INewport Beach ICA 192660 1 ISep 13, 2022 Please save our wonderful club. It's such a part of my active lifestyle. 102 Mr Ro Polits detente-betters_Ou@icloud.com 255 Marigold Ave Corona Del Mar CA 92625 USA Sep 13, 2022 103 Bev McCabe beverlymccabe02@gmail.com Newport Coast CA 92657 USA Sep 13, 2022 104 Mr Chris Patterson cjpatterson8@gmail.com 1111 CAMPANILE Newport Beach CA 92660 USA Sep 13, 2022 105 Mary Ann Soden masoden@cox.net Newport Beach California 92625 USA Sep 13, 2022 We have plenty of hotels. This club is building community and wellness for residents of all ages. 106 Lisa Gels lisagels77@gmail.com 534 san bernardino lave Newport Beach CA 92663 Sep 13, 2022 Please keep the Newport Beach TTC as is. It's a tremendous benefit to the community. We don t need More development!!!! 107 Mrs Kristen Ridge kristenridge@yahoo.com Corona del Mar 2710 Bayside Dr 92625 USA Sep 13, 2022 108 Scarlett Lambert scarlettlambertl@gmail.com newport beach CA USA Sep 13, 2022 109 Lori Williams lw1230@gmail.com 1518 Antigua Way Newport Beach CA 92660 Sep 13, 2022 I feel strongly that our community does not need another hotel in this area. We already have the Hyatt, Marriott and the soon to be Pendry servicing the area. Stop making developers richer and keep Newport - Newport. 110 Mrs Carol Rogers csrogersl@me.com Newport Beach CA 92660 Sep 13, 2022 ill Lori Welton lwelton4@gmail.com PO Box 8114 CA 92658 USA Sep 13, 2022 112 Steve Fenton irvinepainting@hotmail.com 5405 Alton Parkway, #336 Irvine CA 92604 USA Sep 13, 2022 113 Mrs Marianne Perkins mbperkinsfamily@gmail.com 16 Meryton Irvine Ca 92603 Sep 13, 2022 While our club claims it won't be torn down completely, the hotel and bungalows are an unwanted addition. Who wants to pay for a luxury hotel room and wake up to Pickleball noise anyway? Dumb all around.... someone is thinking with their wallet and not their head. 114 Kelly Lewis lirishgirl@sbcglobal.net Newport Beach CA 92663 Sep 13, 2022 115 Mrs Diane Brown dianemb@uci.edu 21 Honors Dr Newport Beach Ca 92660 Sep 13, 2022 116 Lisa Spiegelman lspiegs@aol.com 11 BORDEAUX NEWPORT BEACH CA 92660 USA Sep 13, 2022 117 Mrs Shelly Read shellylread@gmail.com 5 Castaways North Newport Beach CA 92660 USA Sep 13, 2022 118 Ms Christine Puccio ckpuccio@aol.com 313 Princeton Dr Costa Mesa California 92626 Sep 13, 2022 119 oclene White 'white@prolineprocessing.com 535 San Bernardino ave Newport Beach Ca 92663 USA Sep 13, 2022 Powered by GoPetition 15-324 # Title First name Last name Email Address State Postcode Ms. Cathy Kanode ckanode200l@yahoo.com 16033 Warmington Huntington Beach California 92649 USA Sep 13, 2022 Lane i Please save our Pickleball courts! 120 121 IDenise ISchuler thankstu@yahoo.com 11601 Harrow pl INewport beach ICA 192660 1 ISep 13, 2022 It's unfortunate that the manager of the club is threatening members by termination of membership to speak out against the proposed plan. Picklball should be included in the new plan. 122 Mr. Brian Thune brian-thune(@vahoo.com 34 Mountain View Irvine Ca 92603 Sep 13, 2022 123 Mrs Debby Wiesner debby@backbayfunding.com 4815 Lido Sands Dr Newport Beach CA 92663 USA Sep 13, 2022 124 Kim Villani kimnoelvillani@gmail.com 903 W. 17th St. #39 Costa Mesa CA 92627 USA Sep 13, 2022 125 Krista Jajonie kristajajonie@hotmail.com 1516 Abalone Place Newport Beach CA 92662 Sep 13, 2022 126 Nancy O'Brien nanobrienll@gmail.com 290 Crescent Bay Dr Laguna Beach California 92651 USA Sep 13, 2022 We have been continually lied to by the managing owner that the new proposal includes pickleball and nothing will change for our membership Pickleball is the fastest growing sport in America and is good for newport beach in more ways than a hotel. It will draw people to fill our hotels. I strongly oppose replacing TTC with a hotel 127 Dr NICK NAMIHAS nnamihas@yahoo.com 2800 1st Avenue Corona del Mar CA 92625 USA Sep 13, 2022 128 Ace Clark ace.genec@gmail.com Corona del Mar California Sep 13, 2022 129 Annette Juptner annette@juptner.com Newport Beach Orange 92660 Sep 13, 2022 130 Wendy Balden baldens@pacbell.net 301 Poinsettia Ave Corona Del Mar CA 92625 USA Sep 13, 2022 131 Mrs. Brittany Hobson bhobson4514@outlook.com 617 poinsettia avenue Corona Del Mar CA 92625 USA Sep 13, 2022 132 Angelique Garbers amgarbers3@yahoo.com Newport beach California Sep 13, 2022 133 Mr Hesham Hebeish hhebeish@cox.net 2105 west place dr Costa Mesa Ca 92627 Sep 13, 2022 134 Mark McDermott mactnyt@gmail.com 26026 View Point Drive East Dana Point Ca 92677 USA Sep 13, 2022 135 Mrs Theresa Hartsell theresa.hartsell@cox.net 25 Versailles Newport Beach California 92657 Sep 13, 2022 136 Mrs Emily Stolan volcom4em@aol.com 44 Harcourt 92657 Ca 92657 USA Sep 13, 2022 137 Mrs Emily Coats emmycoatsl@me.com 12140 Ahern Court Tustin CA 92782 USA Sep 13, 2022 138 Mrs. Jennifer Rolfes rolffam5@fmail.com 2006 Seadrift Drive Corona Del Mar CA 92625 USA Sep 13, 2022 139 Christine Anderson christine.anderson@me.com 114 Via Xanthe Newport Beach CA 92663 USA Sep 13, 2022 140 Mr Donald Stolan don@cmilending.com 92657 Newport coast Ca 92657 USA Sep 13, 2022 141 Mrs Sharon Roy sroyhome@pacbell.net 1837 Port Wheeler PI Newport Beach Orange County, California 92660 Sep 13, 2022 Closing the tennis club would be a major blow to the residents of Newport Beach as well as the members of the tennis club. Newport Beach does not need another hotel! 142 Judy Cole lagunahouse@roadrunner.com Newport Beach CA 92663 USA Sep 13, 2022 143 Donald Cole lagunahouse@me.com Newport Beach Ca 92663 USA Sep 13, 2022 144 Lisa Giger lisa.giger@gmail.com 1960 Port Weybridge Place Newport Beach Ca 92660 USA Sep 13, 2022 145 Rod Rodgers rgrodgersl@gmail.com 423 Canal Street Newport Beach CA 92663 USA Sep 13, 2022 146 Veannie iLawrence eannie@rancholaslomas.com I INB ICA 192660 1 1Sep 13, 2022 147 Ms JLeslie ICasserly lesliem57@gmail.com 1290 crescent bay drive Laguna beach JCaliforma 192651 JUSA ISep 13, 2022 This club serves a huge community not only to its members but to multiple charities and tournaments that bring revenue to the city. I am a Newport Beach homeowner. 148 Noah Sharifi noahsharifi4@gmail.com 20 WHARFSIDE DR NEWPORT COAST CA 92657 USA Sep 13, 2022 149 Liz Reichert liz@reichertfamily.net 6285 Sunnyside Circle Huntington Beach Ca 92648 Sep 13, 2022 150 Eric Reichert eric@ocmgmt.com 6285 Sunnyside Circle Huntington beach Ca 92648 Sep 13, 2022 151 Mr Alan Wiesner alan@wordsandpicturescreative.com 4815 Lido Sands Drive Newport Beach CA 92663 USA Sep 13, 2022 Am very disheartened that people can stand in front of a group and outright lie to them so easily. Powered by GoPetition 15-325 # Title First name Last name Email Address 1 1 1 Region 152 Michele Calder m.calderl@verizon.net NPB CA 92660 Sep 13, 2022 153 jenifer Brown info@natural-illumination.com 220 Newport Center Dr # 2 Newport Beach CA 92660 Sep 13, 2022 154 Mrs Rebecca Moore rebparkf@yahoo.com 612 Poinsettia Ave Corona Del Mar CA 92625 Sep 13, 2022 155 Mrs Laura Henigan heniganml@gmail.cim 612 Acacia Ave Corona Del Mar Ca 92625 USA Sep 13, 2022 Please keep pickleball at this club. There is a huge demand for the sport and the city doesn't provide enough courts. 156 Tracey Miller tmill21@comcast.net 112 28th St Newport Beach CA 92663 Sep 13, 2022 157 Kimberley Gaskill kimberleygaskill@yahoo.com 1611 Bayside Drive Corona Del Mar CA 92625 Sep 13, 2022 158 Niki Parker nikiparker.np@gmail.com 336 Vista baya Costa Mesa CA 92627 USA Sep 13, 2022 159 jaleah Brown '"oybrown2@gmail.com 9562 Chevy Chase Dr Huntington Beach Ca 92646 Sep 13, 2022 160 Mr Roy Glauthier rglauthier@aol.com 336 Vista Baya, Costa Mesa CA 92627 USA Sep 13, 2022 161 Mr Lance Reichert lance@ocmgmt.com 9971 Oceancrest Drive Huntington Beach California 92646 USA Sep 13, 2022 162 jillian Gabrielli sarisilkrugs@gmail.com 3334 W. Coast Hwy #431 Corona del Mar Ca 92625 USA Sep 13, 2022 163 June Marchigiani 'une326vs@yahoo.com 326 Vista Suerte Newport Beach Orange county 92660 Sep 13, 2022 164 Mrs Sandy Bruss brussfam@cox.net 41 Blue Summit Irvine CA 92603 Sep 13, 2022 Being part of this pickleball community is very important to the well being of my family as well as the community. 165 Chris Hagmaier cjhagmaier@gmail.com 208 E Balboa Blvd Newport Beach California 92661 USA Sep 13, 2022 166 Mrs Christine Lissoy christinelissoy@me.com 108 Pearl Avenue Newport Beach CA 92662 Sep 13, 2022 167 Mrs Kathryn Smith ksdesignmail@gmail.com 309 N Star Ln Newport Beach Ca 92660 USA Sep 14, 2022 168 Rochelle Belove Drbelove@aol.com 1126 Whitesails Way Corona Del Mar Orange County 92625 Sep 14, 2022 I am opposed to the removal of the Pickleball courts and new plan going in it's place. As a resident, I use the TTC Club EVERY day for exercise, social well being, and general health that I can't get anywhere else. 169 Ms 1Lynn lGosselin lynninsb@gmail.com 1415 Santa Ana Ave Newport Beach ICA 192663 USA Sep 14, 2022 170 Mrs INancy 113rundage NancyBrundage@cox.net 11837 Port Manleigh PI INewport Beach lCalifornia 192660 JUSA ISep 14, 2022 this is a very unique club and serves a wide variety of residents within the city. Newport needs to preserve its recreation facilities. 171 Dr. Lori Burri loriburriphd@gmail.com 235 Driftwood Road Newport Beach Ca 92625 Sep 14, 2022 172 Mr Alex Crisostomo alexcrisostomo@att.net 18317 Goldbark way Yorba Linda California 92886 USA Sep 14, 2022 173 Ms Patti Quicksilver pquickll03@gmail.com 1000 San Joaquin hills rd Newport beach California 92660 Sep 14, 2022 174 Mr cole crisostomo colecrisostomo@icloud.com goldbark way yorba linda ca 92886 Sep 14, 2022 I love this club so much, it brings me and my family together!! 175 Brooklyn Crisostomo xanil024@gmail.com Yorba Linda California USA Sep 14, 2022 176 Ms Jolene Rankin 'olenebcrankin@gmail.com 12106 Pintado Irvine Orange 92618 USA Sep 14, 2022 177 Mr Tayler Acosta tayacosta@yahoo.com 12106 Pintado Irvine CA 92618 USA Sep 14, 2022 Dont. 178 Daniel Belove drdanbelove@hotmail.com 1126 Whitesails Way Corona Del Mar Orange County 92625 Sep 14, 2022 179 Susan Lucero susanlucero802@yahoo.com 320 E. 18th Street Costa Mesa CA 92627 USA Sep 14, 2022 180 Mr Jim Balding 'im.balding@theantgroup.com 26 Fremont Irvine CA 92620 USA Sep 14, 2022 Pickleball better serves the community as a whole. Open space in Orange County is disappearing at an alarming rate. We need to preserve the recreational spaces we have, we can't go back and make more. 181 Mr lCurt Istockman I curt. stockman@gmail.com 1435 Goldenrod Avenue Corona Del Mar CA 92625 USA Sep 14, 2022 Powered by GoPetition 15-326 # Title First name Last name Email Address 1 1 1 Region 182 Mimi Pardini mimipardini@gmail.com 435 Goldenrod Ave Corona Del Mar CA 92625 USA Sep 14, 2022 183 Mrs Jane Miller 'pgsmiller@gmail.com 1967 Aliso Avenue Costa Mesa Orange County 92627 USA Sep 14, 2022 184 Andrea Anderson akozlak@gmail.com 1838 Port Charles PI Newport beach Ca 92660 Sep 14, 2022 185 Mrs Marlene Dandler marlenedandler@me.com Newport beach CA 92660 Sep 14, 2022 186 Dr. Cory Muehlhauser dreorym@sbcglobal.net 1854 Port Taggart Place Newport Beach CA 92660 Sep 14, 2022 Keep our Pickle ball Club as is! 187 Dr. Anne -Marie Angeloff amangeloff@gmail.com 2345 Port Carlisle Place Newport Beach CA 92660 USA Sep 14, 2022 188 Jacquelyn Mitchell 'acquimitche1178@gmail.com 1963 Port Dunleigh Circle Newport Beach CA 92660 Sep 14, 2022 189 Mrs Cari Hudy carihudy@hotmail.com 1872 Port Wheeler Place Newport Beach CA 92660 Sep 14, 2022 190 Mr Curt FauntLeRoy curt@universalasphalt.com 1960 PORT CHELSEA Inewport beach lCalifornia 192660 JUSA ISep 14, 2022 191 Mrs IPOIIY lVerfaillie phackathorn@hotmail.com 1621 PORT ABBEY PL INEWPORT BEACH ICA 192660 JUSA ISep 14, 2022 Please keep all of the courts at the The Tennis Club at Newport Beach. We need more athletic facilities, not fewer, and we especially need more pickle ball courts, as the city council is FULLY aware of. 192 Michele Bethel michelebethel6@gmail.com 1930 Port Townsend Circle Newport Beach Ca 92660 Sep 14, 2022 193 Mr. Jim Kline 'kline@surterreproperties.com 1957 Port Chelsea Newport Beach CA 92660 USA Sep 14, 2022 194 Rachel Krebs rachel.yelsey@gmail.com Newport Beach California 92660 Sep 14, 2022 195 Mr. Patrick Rolfes patrolfes@gmail.com 2006 Seadrift Dr. Corona del Mar CA 92625 USA Sep 14, 2022 196 Captain Robert Martin rob@freespeedaviation.com 1800 Port Sheffield Place Newport Beach CA 92660 USA Sep 14, 2022 Me and 7 buddies played for 2 hours this morning before work and will be back again tomorrow evening after work. We need this club!! 197 Mrs Marni Clark g.mclark@cox.net 1966 Port Ramsgate Pl. Newport Beach CA 92660 USA Sep 14, 2022 198 Mr Jerry Schmitt 'erryschmitt@cox.net 1974 Port Locksleigh PI Newport Beach CA 92660 USA Sep 14, 2022 199 Ms Patricia Chinnici chinnici@trilliumgp.com 1729 Port Charles Place Newport Beach CA 92660 Sep 14, 2022 200 im Olsen gr8realtor@aol.com California INewport Beach jUnited States 192660 1 ISep 14, 2022 201 Mrs IPamela IJensen 'ensenpamela4@gmail.com 1701 Port Ashley PI INewport Beach ICA 192660 JUSA ISep 14, 2022 Please oppose the proposal to tear down the pickleball/tennis courts in Newport Beach. 202 IKasey IMartin kaseykmartin@gmail.com 11800 Port Sheffield INewport Beach ICA 192660 1 ISep 14, 2022 Save our PB club! 203 Mrs. Colleen Masterson colleenmasterson5@gmail.com 1830 Port Renwick Newport Beach CA 92660 USA Sep 14, 2022 204 Mrs Nancy Best lnancybest@gmail.com 1839 Port Charles Place Newport Beach CA 92660 Sep 14, 2022 205 Mrs. jean Shenk 'eannieshenk@yahoo.com 1815 Port Margate Place Newport Beach CA 92660 Sep 14, 2022 206 Mrs. Mary Ann Haly maryannhaly@gmail.com 1824 Port Margate Place Newport Beach California 92660 Sep 14, 2022 207 Wendy McManigal wendy.mcmanigal@gmail.com 1960 Port Nelson P1 Newport Beach California 92660 USA Sep 14, 2022 208 Mr Jeff Schaffer 'pcchaffer@gmail.com 1806 Port Margate PI Newport Beach CA 92660 USA Sep 14, 2022 209 Brian Semmelroth beemmelroth@verizon.net Huntington Beach Ca 92646 USA Sep 14, 2022 Powered by GoPetition 15-327 # Title First name Last name Email Address 1 1 1 Region 210 Mrs. Corey Anthony coreyau99@hotmail.com 1830 Port Stirling PI Newport Beach CA 92660 USA Sep 14, 2022 211 Mrs Jackie Hart 'slhart@gmail.com 1833 Port Ashley PI Newport beach Ca 92660 USA Sep 14, 2022 212 Mrs. Chelsea Rokos crrokos@gmail.com 2144 Port Durness PI Newport Beach Ca 92660 USA Sep 14, 2022 213 Ms Ethel Parsons parsons9ll3@me.com 226 1/2 Agate Ave. Newport Beach CA 92662 USA Sep 14, 2022 214 Ms. Cathy Sturdivant cathybeane@yahoo.com 210 43rd Street Newport Beach CA 92663 USA Sep 14, 2022 215 Mrs Elizabeth McCullagh ElizabethMcCullagh@gmail.com 1727 Port Barmouth PI Newport Beach CA 92660 USA Sep 14, 2022 216 Mrs Kris Anderson brenshel@sbcglobal.net Newport beach Ca 92660 Sep 14, 2022 217 Ms Wendy Mangiaracina design-tunas.Od@icloud.com 231 Driftwood Road Corona Del Mar CA 92625 Sep 14, 2022 218 Mr George Mangiaracina gmangiaracina@nyc.rr.com 231 Driftwood Road Corona Del Mar CA 92625 ISep 14, 2022 219 Mr Marco Mangiaracina wendymangia@hotmail.com 231 Driftwood Road Corona Del Mar CA 92625 Sep 14, 2022 220 Ms Avriel Webb avrielw@gmail.com 11620 Orange ICA 92869 Sep 14, 2022 Responsible city government needs to protect recreational and open spaces for a better future. 221 Tamara Watt tamarawatt@att.net 343 Promontory Drive West Newport Beach California 92660 USA Sep 14, 2022 222 ohn IJacobs 'acobsconstruct@aol.cim 835 Driftwood Ave Seal Beach California 90740 USA Sep 14, 2022 Save TTC 223 Mr. Douglas Muehlhauser dougmuehlhauser@protonmail.com 1854 Port Taggart Place Newport Beach CA 92660 USA Sep 14, 2022 The City Council should deny the plan amendment! 224 Mrs. Stacey Schneider staceyRschneider@gmail.com 212 Morning Canyon Road Corona del Mar California 92625 USA Sep 14, 2022 225 Mr josh Matlaf 'oshmatlaf@yahoo.com 17 Jupiter Hills Dr Newport Beach CA 92660 USA Sep 14, 2022 226 Ms Adelle Walker awalkerconsultingoc@gmail.com 409 canal street Newport Beach CA 92663 Sep 14, 2022 227 Melody Williams Dapp meldapp@gmail.com 1807 Port Renwick Newport Beach CA 92660 USA Sep 14, 2022 228 Karen Aspinall karen_aspinall@yahoo.com 9436 Residencia Newport Beach California 92660 USA Sep 14, 2022 229 Keri Roth keri roth@yahoo.com 9436 Residencia Newport Beach California 92660 Sep 14, 2022 230 Ms Patti Kohler pckohler@gmail.com 330 Vista Trucha Newport Beach CA 92660 USA Sep 14, 2022 231 Mrs Beverley Kashe mkashe2308@aol.com 374 Villa point Dr Newport Beach ca 92660 Sep 14, 2022 No hotels please . Save the Tennis Club. 232 Ms Mary Meronk mameronk@gmail.com 7 Lilian Irvine California 92614 USA Sep 14, 2022 233 Julie Meggers 'ulie@meggers.com 1815 Port Ashley Place Newport Beach California 92660 USA Sep 14, 2022 234 Mrs Sheri Gail sherigail@roadrunner.com 2419 Vista Nobleza Newport Beach California 92660 Sep 14, 2022 235 Mr. Paul King peakay@gmail.com 1819 Newport Hills Drive East Newport Beach CA 92660 USA Sep 14, 2022 236 Mrs. Mary Raymond mraymondl@roadrunner.com 40 Linda Isle Newport Beach CA 92660 Canada Sep 14, 2022 237 Remie Whistler remie.whistler@cox.net 825 Hibiscus Court Corona Del Mar CA 92625 USA Sep 14, 2022 238 Mrs. Monica Rakunas mrakunas@gmail.com 1948 Port Nelson Pl. Newport Beach CA 92660 USA Sep 14, 2022 Please do not take away The Tennis Club! I have been wanting to become a member here for some time and they are so popular that I am on a waitlist. It's one place that people like me can meet other friendly people that also enjoy tennis and pickle ball. We just had the Vea Hotel open up in Fashion Island, the Island Hotel has been sitting vacant during ALL of covid and beyond, we have plenty of good hotels and the last thing we need is another one and taking away something our community needs, uses and can't wait to get off that waitlist to be a part of. Thank you for your time. 239 Ikenette imolway kgbmolway@gmail.com 116 Villeneuve newport beqch california 92657 Sep 14, 2022 240 Mrs Amy Langdale amy_langdale@yahoo.com 1942 Port Edward Place Newport Beach CA 92660 Sep 14, 2022 Powered by GoPetition 15-328 # Title First name Last name Email leannemkahn@gmail.com Address 1 1 1 Region 241 Ms Leanne Kahn 1801 Port Kimberly Place Newport Beach CA 92660 USA Sep 14, 2022 242 Mrs Kirsten Minasian kirsten.minasian@sbcglobal.net 1853 Port Taggart Pl. Newport Beach Ca 92660 USA Sep 14, 2022 243 Mrs Pamela Christian luv2embracelife@gmail.com 45 Dartmouth Irvine CA 92612 USA Sep 14, 2022 244 Ms Laura Zublin laurazublin@gmail.com 1981 Port Dunleigh Circle Newport beach CA 92660 Sep 14, 2022 245 Ms Santina Lopez lsantina995@gmail.com 417 promontory dr Newport Beach CA 92660 USA Sep 14, 2022 246 Mrs Linda Uphoff ouphoff@aol.com Newport Beach Usa 92662 Sep 14, 2022 247 Cari Zylstra clzylstral@gmail.com 1951 Port Eddward PI Newport Beach California 92660 USA Sep 14, 2022 248 Kelly Milrot kmilrot@gmail.com 2200 Vista Huerta Newport Beach CA 92660 Sep 14, 2022 249 Mrs Dede Rossi dederossi57@gmail.com 4025 E Sixth St Long Beach CA 90814 Sep 14, 2022 250 Mrs. Veronica jKlein nikkiatl@att.net 428 Begonia Ave jCorona Del Mar CA 92625 Sep 14, 2022 251 Mrs Mary Lee IRiddell mlphotos@me.com 461 seaward rd 1corona. del mar CA 192625 1 ISep 15, 2022 252 Ms Ahndi Imarx ahndimarx@gmail.com 320 Marigold Ave jCorona Del Mar CA 192625 JUSA ISep 15, 2022 We need this club for the health of the community. There are plenty of hotels in the area! 253 Ms. lGeorgina. Islim georgina.slim@gmail.com 123 1/2 Pearl Ave Newport Beach California 92662 USA Sep 15, 2022 254 Mrs Christy Marr christymarr2l@gmail.com ikarolhatch@gmail.com 2238 Port Carlisle Place Newport Beach CA 92660 USA Sep 15, 2022 255 IKAROL 1HATCH Newport Beach CA 92660 Sep 15, 2022 No more hotel growth! 256 Mrs Gina Polley gpilley968@aol.com 3641 Daffodil Corona Del Mar Ca 92625 Sep 15, 2022 257 Mrs Elizabeth Hunt elizabethdhunt@gmail.com Newport Beach California USA Sep 15, 2022 258 Ms Diana Glazer dglaz@sbcglobal.net 2107 yacht grayling Newport beach CA 92660 Sep 15, 2022 259 Bahram Mandavi bahram.mandavi@gmail.com Newport Beach CA 92660 Sep 15, 2022 260 Mr. Bahman Mandavi bahman.Emandavi@gmail.com Trovare Newport Beach California 92657 USA Sep 15, 2022 Have taken lessons there as a child, teen, and adult over the years. Currently going back and forth for work between OC and Northern California but will be back 100% in 2023 and had hoped to explore membership and lessons again at NBTC. . 261 Mrs. Janet DiChiro 'anetdichiro@aol.com 2821 Blue Water Drive Corona del Mar California 92625 Sep 15, 2022 262 Ms Carol Walsh cdreyw@gmail.com 18 Scripps Aisle IRVINE CA 92612 Sep 15, 2022 263 Mrs Robyn Zieper robyn@zieper.com 6 Limoges Newport Coast CA 92657 Sep 15, 2022 264 Nicole jorenby nicolema6e02@yahoo.com 702 goldenrod ave Corona del Mar California 92625 USA Sep 15, 2022 265 Mr. Jason Hong 'ason@ebsmdservice.com 208 E. Balboa Boulevard Newport Beach CA 92661 USA Sep 15, 2022 266 Shelly Summers shellysummers@mac.com Huntington Beach CA 92648 USA Sep 15, 2022 267 Mrs. Gwen Cruttenden gwencrutt@yahoo.com 301 apolena avenue Balboa Island CA 92662 Sep 15, 2022 268 Jim Mortimer 'mortimer8787@gmail.com 295 High Dr. Laguna Beaach US 92651 Sep 15, 2022 269 Mrs Pam Hardenbergh pamhardenbergh@gmail.com 330 Vista Baya Costa mesa California 92627 USA Sep 15, 2022 270 Mrs Dorothy Joynt dorothyljoynt@gmail.com 9 ironwood drive Newport Beach Ca, usa 92660 Sep 15, 2022 271 Dr Theo Frot theo.frot@gmail.com 1748 Port Manleigh Circle Newport Beach CA 92660 USA Sep 15, 2022 272 Aaron Rose aaron@planomatic.com 2007 PORT BRISTOL CIRCLE Newport Beach California 92660 USA Sep 15, 2022 273 Mrs georgianne ramm rammfam@cox.net 1966 Port Edward Place Newport Beach california 92660 USA Sep 15, 2022 Powered by GoPetition 15-329 # Title First name Last name Email Address Region 274 Ashley Rose ashleycostanza@gmail.com 2007 port bristol circle Newport Beach Ca 92660 Sep 15, 2022 275 Sherri Mcquaid sherrismcquaid@gmail.com 4104 River Ave Newport Beach California 92663 USA Sep 15, 2022 276 Ms. Karla Jondle karlamou@hotmail.com 4462 Oceanridge Dr Huntington Beach CA 92649 USA Sep 15, 2022 277 Peggy Hoyt phoyt@roadrunner.com 1530 Serenade Terrace Corona del Mar California 92625 USA Sep 15, 2022 278 Mrs Elizabeth Morgan lizmorgan42@hotmail.com Newport Beach Ca 92660 USA Sep 15, 2022 279 Mr Jacob Furgatch 'furgatch@cox.net Newport Beach California 92660 USA Sep 15, 2022 280 Mr Dominic Bulone dbulone07@gmail.com 1530 Serenade Terrace Corona del Mar California 92625 USA Sep 15, 2022 281 Mrs Sharon Griffin sheri@griffin6.com 2001 Port Chelsea PI Newport Beach CA 92660 Sep 15, 2022 282 Mr Scott Clegg scottclegghb@gmail.com 1320, W Bellerive Ln Coeur dAlene ID 83814 USA Sep 15, 2022 283 Grace Alipour Grace Alipour gracealipour@gmail.com Irvine CA 92612 Sep 15, 2022 284 Sheila Cole sheila.cole247@yahoo.com 602 Avocado Ave. Unit A Corona Del Mar California 92625 USA Sep 15, 2022 285 Dr. Kim Vieira kimtpcs@aol.com 17925 SKY PARK CIRCLE, SUITE K Irvine CA 92614 USA Sep 15, 2022 Been a member there off and on for 40 years. Historical location and used to bring in families to the East Bluff/ Bluff home sales too. Palisades TC may sell someday soon. 286 Lisa Winter lisa.winter@live.com Newport Beach California 92662 Sep 15, 2022 287 Mr William Mccullough mac@pmllc.net 418 Morning Canyon Road Newport beach Ca 92625 Sep 15, 2022 288 Teri Springer idahogrll@aol.com 19486 sandcastle Huntington Beach CA 92648 USA Sep 15, 2022 289 Casey Sharifi crosharifi@gmail.com Newport Coast CA 92657 USA Sep 15, 2022 290 Jody Clegg Jody Clegg cleggjody@gmail.com 6712, Morning Tide Drive Huntington Beach Ca 92648 USA Sep 15, 2022 291 Keith McCabe wishinfish@aol.com 46 Clermont Newport Coast CA 92657 USA Sep 15, 2022 292 Lori Chipps lorichipps@gmail.com 6217 San Joaquin Plaza Newport Beach California 92660 USA Sep 15, 2022 293 Helen Fedalen fedalen@cox.net 3021 Carob Newport Beach Ca 92660 USA Sep 15, 2022 294 Mary Keenan keenan552002@yahoo.com 209 34th Street Unit B Newport Beach Orange 92663 USA Sep 15, 2022 295 Sara Naheedy snaheedy@gmail.com Newport beach CA 92625 USA Sep 15, 2022 296 Mr Gary Hoffman d0801@hotmail.com 604 n kaufman Houston Texas 77536 Sep 15, 2022 297 Aaron Brown ambrown219@aol.com Newport Beach Ca USA Sep 15, 2022 298 Teri Burch tdburch@cox.net Newport Coast CA 92657-1008 Sep 16, 2022 299 Mrs Kristen McGuinness kmcguinness@cox.net Newport Beach California 92660 Sep 16, 2022 300 Mr Gerald Kelleher 'errykelleher3@gmail.com 119 Topaz Ave Newport Beach CA 92662 Sep 16, 2022 301 Steve Foigelman steve@loanleaders.com 1241 Winslow Ln Newport Beach Ca 92663 Sep 16, 2022 302 Mr Karl Dumas karldumas@gmail.com 1356 Coral Drive Laguna Beach CA 92651 Sep 16, 2022 303 Dr Kathy Abels ksabels5ll@gmail.com Corona del Mar Ca 92625 ISep 16, 2022 304 Mrs Jennifer Patel 'nguyen42@gmail.com Newport Beach CA 92660 USA Sep 16, 2022 305 Darcy Lee honeycutofficial@gmail.com Newport Beach Ca Sep 16, 2022 306 Kristin Leffel kml.peterson@gmail.com 1806 port Sheffield place Newport Beach Us 92660 Sep 16, 2022 307 IMs. Paige Nichols nancy@avalontech.com 13301 Michelson Irvine California 92612 IUSA Sep 16, 2022 308 Ims lKathleen lWiesinger krwiesinger@yahoo.com 19 Ocean Vista lNewport Beach lCalifornia 192660 JUSA ISep 16, 2022 Powered by GoPetition 15-330 # Title First name Last name Email Address 1 1 1 Region 309 Alison Yonkers yonkers_4@yahoo.com 304 1/2 Fernleaf Ave Corona Del Mar CA 92625 Sep 16, 2022 310 Mrs Kara Greer karagreer46@gmail.com 2015 Port Bristol Circle Newport Beach California 92660 Sep 16, 2022 311 Mrs. Joanna Girard troycygnet@gmail.com Newport Beach CA 92660 USA Sep 16, 2022 312 Lena Fancher therussian-89@hotmail.com 4716 E vista st Long Beach Ca 90803 Sep 16, 2022 Please no hotel. 313 Cindy Freyman cinfreyman@gmail.com 24 Morning View Dr Newport Coast CA 92657 USA Sep 16, 2022 314 Ms Lisa Goon lisagoon@cox.net Port Bristol Circle Newport Beach Ca 92660 USA Sep 16, 2022 315 George Taylor taylorgro@yahoo.com 332 Vista Trucha Newport Beach Calif 92660 USA Sep 16, 2022 316 Ms Julie Pernecky 'pmgmt@msn.com 308 Sapphire Ave Newport Beach California 92662 USA Sep 16, 2022 317 Keith Forrester krforrester@live.com Newport Beach California 92663 Sep 16, 2022 318 Miss Keira Raack raackkeira@gmail.com 1942 Port Ramsgate PI Newport Beach Ca 92660 Sep 17, 2022 319 Miss Alexa Raack alexaraack@gmail.com 1942 Port Ramsgate PI Newport Beach Ca 92660 Sep 17, 2022 320 Mr Justin jSmith 'ustinhalos@yahoo.com 214 Topaz Newport beach Ca 92662 1USA ISep 17, 2022 Please don't allow this club to be torn down 321 Ms anet Hathaway anethathaway@hotmail.com 1982 Port Edward Circle Newport Beach CA 92660 Sep 17, 2022 The Pickleball & Tennis Club is a valuable community resource for ALL Newport Beach residents. Please do. It allow this to be turned into a hotel. 322 Dr Denise Aliba dedeakiba@cox.net 1000 sea lane Corona Del mar United States 92625 Sep 17, 2022 323 khosrow mandavi armanis321@yahoo.com Newport Beach Calfornia Sep 17, 2022 324 Fahimeh Mandavi fahimehl23@aol.com Newport Beach CA Sep 17, 2022 325 Mr Grant Nachman grant.nachman@gmail.com Newport Beach California 92660 USA Sep 17, 2022 326 Mrs Debbie Logan debbiedlogan@yahoo.com 1829 Port Taggart Place Newport Beach California 92660 Sep 17, 2022 This club is well loved by an entire community, please do not take it away! 327 Mrs Diana Chen brooklineshopgirl@gmail.com INewport Beach Ica 192660 1 ISep 17, 2022 328 Dr. Alison Sims afsims@prodigy.net 1701 Avocado Ave ICorona Del Mar ICA 192625 JUSA ISep 17, 2022 329 Cindy Galloway cindygallowayl@gmail.com 11227 Outrigger Drive jCorona Del Mar Ica 192625 1 ISep 18, 2022 Please, continue pickleball. 330 Dr. ICindy IBollman dreindybollman@gmail.com I INewport Beach ICA 192660 1 ISep 18, 2022 331 1 La Vonne jEarl lavonneearl@mac.com I INewport Beach lCalifornia I JUSA ISep 18, 2022 Save the club! We have enough hotels. Our community depends on this. 332 IPaul IVrebalovich pvrebalovich@yahoo.com 12034 Baypointe Drive INewport Beach Icalifornia 192660 1 ISep 18, 2022 The club is home to too many members and to take it away would be harming the community greatly. 333 Holly Anderson hollyjal3@gmail.com Newport Beach Ca 92663 Sep 18, 2022 334 Cindy Lightner cslightl@aol.com Newport Beach CA 92663 Sep 18, 2022 335 Christine Gartner christinelee3@gmail.com 1830 Port Ashley Newport Beach CA 92660 USA Sep 18, 2022 336 Cc Knowles ccbegonia@yahoo.com Ca Corona del mar Usa 92625 Sep 18, 2022 337 Richard Counsman counsman@gmail.com 437 Carnation Ave Corona del Mar CA 92625 USA Sep 18, 2022 F338 I strongly request that Council deny the plan to demolish pickleball courts to build a luxury hotel at the Tennis Club at Newport Beach. Mrs. Catherine Anderson catherine.anderson05@gmail.com 1979 Port Claridge PI Newport Beach CA 192660 1 ISep 18, 2022 Powered by GoPetition 15-331 # Title First name Last name Email Address city State Postcode Please do not approve a project that does not explicitly allow Pickleball to remain onsite at The Tennis Club of Newport Beach. The pickleball courts are a vibrant and well used addition to our community and another hotel is not needed in the area. Lori Junkins lorijunkins@gmail.com 1409 High Bluff Dr Newport beach California 92550 Sep 18, 2022 Mrs Holly Tharp hhtharp@yahoo.com 4 Bargemon Newport Coast CA 92657 Sep 18, 2022 339 340 341 Dr Paul Tharp daddybiskit@me.com 4 Bargemon Newport Coast CA 92657 Sep 18, 2022 342 Mitch Junkins mjunkins@thecdmco.com 1409 High Bluff Dr Newport Beach California 92660 Sep 18, 2022 343 Ms Susan Machado smp9395@yahoo.com 614 Larkspur Ave Corona Del Mar CA 92625 USA Sep 18, 2022 344 SHERRI JFryer dnsfryer@gmail.com 225 Opal Ave INewport Beach JCalifornia 192662 USA Sep 18, 2022 345 Cathy lEusey cathyeusey@gmail.com INewport Beach ICA I Sep 18, 2022 346 Ms Tere IMiller tam308@icloud.com 1817 E. Balboa Blvd INewport Beacj JCa 192661 JUSA Sep 18, 2022 I've lived a block away from the tennis club for 29 years. I'm NOT in favor of a hotel being built in this very small neighborhood. 347 Mr. JLance ackson lance.paul.jackson@outlook.com 11817 E. Balboa Blvd JNewport Beach JCa 92661 USA ISep 18, 2022 NO! No hotel in Peninsula Point!! 348 Elizabeth Beazley elizabeth.beazley@kyl.com Fountain Valley Ca 92708 Sep 18, 2022 349 Mr and Mrs Bridget Gaffney gaffneybridgetl@gmail.com 2652 Crestview Drive Newport Beach California 92663 Sep 18, 2022 350 Ms. Nancy Buchanan nancyculinaryrose@me.com 379 Catalina Shore Drive Costa Mesa California 92627 USA Sep 18, 2022 This club has served the community for over 60 years. It's presence has allowed to city to direct resources elsewhere. If the club is eliminated, the city will need to provide additional rec facilities. Far better to preserve the club and all the benefits it provides to the community. Given the popularity of pickleball, this is also a benefit to the owner by appealing to the pickleball community as a pickleball destination! 351 Maryann McQuiddy maryannmcquiddy@yahoo.com ilulucdm@aol.com 79 Cerrero Court Rancho Mission Viejo CA 92694 Sep 18, 2022 352 mrs. Louise Winders 521 Dahlia Ave Corona Del Mar JCaliforma 192625 JUSA ISep 19, 2022 I oppose demolishing the NB Tennis Club and replacing it with a hotel. 353 Melissa Housel melissabqueen@aol.com 304 1/2 Collins Ave. Newport Beach California 92662 Sep 19, 2022 354 Mrs sara benson benson.sara@yahoo.com 1847 Port taggart Newport Beach CA 92660 Sep 19, 2022 355 Mrs Maurine Hawkins mhawkins25@gmail.com Newport Coast CA 92657 USA Sep 19, 2022 356 Ms Wendy Isbell wendyeisbell@aol.com 283 Broadway Costa Mesa CA 92627 Sep 19, 2022 This club is a neighborhood home and has been for generations! It's setting is perfect for that and not that big a deal for a hotel. Please stop this change! 357 Diane Millar dentaltchr@aol.com 19 Sea Terrace Newport Coast CA 92657 Sep 19, 2022 358 Maggi Arguello timmaggi.arguello@verizon.net Huntington Beach Orange county 92648 USA Sep 19, 2022 359 Joanne Wu 'oannejwu@yahoo.con 1842 Port Taggart P1 Newport Beach Ca 92660 Sep 19, 2022 Please save the tennis club 360 Ms. Gayanne Stanley gayannes@gmail.com PO BOX 11027 Costa Mesa CA 92627 USA Sep 19, 2022 361 Mrs Darlene Welling darlenewelling@yahoo.com 48 Canyon Ridge Irvine CA 92603 USA Sep 19, 2022 362 Mr Jason Atkins hdof06@me.com 10311 Kamuela drive Huntington beach CA 92646 Sep 19, 2022 363 Ms Tiffanie Atkins hairdresser on fire@verizon.net 10311 Kamuela drive Huntington Beach CA 92646 Sep 19, 2022 364 Wendy Meyer wendy@newporthearing.com Newport Beach California 92660 USA Sep 19, 2022 365 Dr Cynthia Boccara dreynthia@wellness4life.com 20701 Beach Blvd, #18 Huntington Beach CA 92648 USA Sep 19, 2022 We only support a proposal that specifies 25+ pickleball courts explicitly 366 Mrs IClicia Inhauser-Huang clicia@cliciasdesigns.com 135 sea terrace I Newport beach JCalifornia 192657 1 ISep 19, 2022 We have too many hotels already! We need to preserve the city and provide places for the actual residents to enjoy! 367 Ms ISheri Imyers fokuspilates@icloud.com 11372 Terrace Way JLaguna Beach lCalifornia 192651 1 ISep 19, 2022 Powered by GoPetition 15-332 # Title First name Last name Email Address Postcode 368 JLorna ILea lornalea2018@gmail.com 2 Teramo Ct INewport Coast California 192657 1 1Sep 19, 2022 369 lHolly JWylie wylieholly@gmail.com 116761 Baruna Lane lHuntington beach JCalifornia 192649 1 ISep 19, 2022 This is an important place of fun and recreation for so many. A hotel can be placed elsewhere if needed. 370 Mr. ordan Gold orddango@gmail.com 19746 Oceanaire Circle Huntington Beach CA 92648 Sep 19, 2022 I have been involved with growing Pickleball in Newport Beach as a volunteer since 2014. My wife received an award from the City for her work in getting pickleball started in this town. Pickleball must remain at TTC. It's the fastest growing sport in America and TTC is the largest club on the West Coast. Save our club! 371 Rosemary Cumming rosecumming@gmail.com 1820 Newport hills E Newport Beach USA 92660 Sep 19, 2022 372 Julie Barrett darts-ruses.Or@icloud.com 213 Dahlia Ave Corona Del Mar CA 92625 USA Sep 19, 2022 373 Mrs. Rebecca Dewey rebecca@deweygroup.com 37 Bridgeport Rd Newport Coast CA 92657 USA Sep 19, 2022 374 Ms Judy Mann '1em3333@gmail.com 613 dahlia ave Newport beach California 92725 USA Sep 19, 2022 375 Ludmila waldron lsherbak@hotmail.com Newport Beach ca 92660 USA Sep 19, 2022 376 Mrs Jrhonda Igatley srgatley@gmail.com 711 lido park drive INewport Beach JCa 192663 JUSA Sep 19, 2022 377 JElaine lRothman erothman6l@gmail.com 9 Madison INewport Beach JCalifornia I I Sep 19, 2022 378 Ms JKathleen ITemple templekathy@yahoo.com 2034 Baypointe Drive INewport Beach ICA 192660 JUSA ISep 19, 2022 • Our Club! 379 Ms. Imerrie lWeinstock merrie.weinstock@gmail.com JPort Taggart Place INewport Beach JCalifornia 192660 1 ISep 19, 2022 We need more recreation and fewer hotels in Newport Beach! 380 Patricia & Edward Carels patc092380@gmail.com 1500 Cornwall Ln Newport Bch., Ca. CA 92660 USA Sep 19, 2022 381 Mrs lynne weir duggins.lynne@gmail.com 1808 Port Seabourne Way Newport Beach CA 92660 Sep 19, 2022 382 Mrs Corre Larkin corremyer@gmail.com 1207 Berkshire Lane Newport Beach CA 92660 USA Sep 19, 2022 383 Mr Greg Minasian maddirobbinson@gmail.com 1853 Port Taggart Newport Beach CA 92660 Sep 19, 2022 384 Mr Rod Newcombe rod.newcombe50@gmail.com 1351 Canterbury Ln Fullerton CA 92831 USA Sep 19, 2022 Please reconsider this plan. Do not take away our Pickleball club and family! With almost 2,000 members we are a strong group that wants the best for the area, club and it's members. No big hotel, condos etc! Keep it recreational and keep Pickleball! 385 Ms Gianna Minasian gianna.minasian@gmail.com 1853 Port Taggart Place Newport Beach CA 92660 USA Sep 19, 2022 386 Dr Heather Bowling heather.bowling.@gmail.com Newport Coast 2 Rochelle 92657 Sep 19, 2022 387 Denise Salvucci deniselisa@mac.com 705 Goldenrod Avenue Corona del Mar California 92625 Sep 19, 2022 388 Mrs Kerry Hacker kerry25@me.com 1401 Dove Street, Suite 640 Newport Beach CA 92660 USA Sep 19, 2022 We do not need another hotel and it would be a terrible location and add so much traffic to that area 389 Mr. ILany IFisher lfisherl5@yahoo.com JP.O. Box 591 lCorona Del Mar Ica Icorona Del Mar JUSA ISep 19, 2022 The local community needs this club. It doesn't need another hotel and it's' accompanying traffic 390 Ms IPatricia JDreyfus padreyfus@gmail.com 11209 KEEL DR ICORONA DEL MAR JCalifornia 192625 1 ISep 19, 2022 We do not need another hotel. This has always been a family area, welcoming to tourists. This is another step to remove activities for people who live here. Greed should not be more important than recreation. 391 Mrs JBeth JProkoxki ekprokoxki@hotmail.xom 1821 Hibiscus Ct JCorona del Mar ICA 192625 JUSA ISep 20, 2022 392 Mr. JDavid JBadajoz dbadajoz@gmail.com 121 Encore Ct. INewport Beach JCalifornia 192663 1 ISep 20, 2022 Keep one of the jewels of Newport Beach 393 Mrs Carol Light the4lights@cox.net Newport Beach CA 92660 Sep 20, 2022 394 Ms Robin Dykhouse freeasabirdrd@gmail.com 127 Jasmine Creek Corona Del Mar US 92625 Sep 20, 2022 395Jayne VanOpynen 'vanopynen@hotmail.com 127 Jasmine Creek Corona Del Mar CA 92625 Sep 20, 2022 Powered by GoPetition 15-333 # Title First name Last name Email Address City State Postcode 1 I 396 Mr Steve Weinstock steve.weinstock@cox.net 1872 Port Taggart Place Newport Beach CA 92660 Sep 20, 2022 397 Dr. Gary Dreyfus gary.dreyfus@gmail.com 1209 Keel Drive Corona Del Mar CA 92625 Sep 20, 2022 398 Melodie Melodie Perone melodieperone@gmail.com 708 1/2 Marigold Corona del mar Ca 92625 Sep 21, 2022 399 Ms Tricia Tedio-Smith ttediosmith@gmail.com 30052 Corsair Laguna Niguel California 92677 USA Sep 21, 2022 400 Mrs Kim Nicolas knicol@me.com Newport Beach Ca Sep 21, 2022 401 Mr Chris Martin cm98xx@aol.com 98Navarre Irvine Ca 92612 Sep 21, 2022 402 Mr Edward Post ned@nedtpost.com 2 Hampshirite Court Newport Beach California 92660 Sep 21, 2022 403 Scott Lissoy scott@farwestindustries.com 108 Pearl Ave Newport Beach Ca 92662 USA Sep 21, 2022 404 Mrs Jeanne Conwell 'kconwell@yahoo.com 1507 Serenade Terrace Corona Del Mar CA 92625 Sep 21, 2022 405 Ms Riley Ridge rileygraceridge@icloud.com 2710 Bayside Dr CdM CA 92625 USA Sep 21, 2022 406 Ms Marilyn Stemper marilynstemper@gmail.com 713 Iris Ave Corona Del Mar CA 92625 USA Sep 21, 2022 407 Jerry Burch 'wburch@cox.net 22 Avignon, Newport Coast CA 92657 USA Sep 21, 2022 408 Gwen Burnett Gwen Burnett gwenrnason7@gmafl.com 451 Hawthorne Rd Laguna Beach California 92651 Sep 21, 2022 409 Anonymous Victoria Clement vbclement@gmail.com Newport Beach CA 92625 USA Sep 21, 2022 410 Mr Greg Steininger gsteininger1226@gmail.com 708 1/2 Heliotrope Ave Corona Drl Mar CA 92625 Sep 21, 2022 411 Ms Cathy Hanley cate.hanley@gmail.com 2076 Tablelands Way Costa Mesa lCalifornia 192627 USA Sep 21, 2022 412 Mrs Shelly Johnston Saipanastasia@gmail.com 503 Marigold Avenue Corona Del Mar ICA 192625 USA Sep 21, 2022 A hotel a block from a high school is a really really horrible idea 413 Mrs Deborah Oconnor deborah.oconnor93@gmail.com 8 Tesoro Newport Coast California 92657 Sep 21, 2022 414 Mrs Lauren Murphy hunnemurpb@yahoo.com 12 Old Course Drive Newport Beach CA 92660 USA Sep 21, 2022 415 Mrs. Traci Semmelroth theydorff@gmail.com 10202 Cynthia Drive Huntington Beach CA 92646 Sep 21, 2022 416 Stephanie Milstein sgmilstein@gmail.com 3315 San Joaquin Plaza Newport Beach California 92660 Sep 21, 2022 417 Mr jEddy lChavez eddy@premium-shirts.com 13410 San Joaquin lNewport jCa 192660 Sep 21, 2022 418 IKevin IYurtin kyurtin@gmail.com I INewport Beach ICA 192660 Sep 21, 2022 Pickle ball is a vital part of the community here in Newport! We don't need more hotels in the area. The Hyatt is right around the corner. 419 Ms. Jennifer Simpson 'enncdm@gmail.com 1828 Baypointe Drive Newport Beach CA 92660 USA Sep 21, 2022 420 Mr Jeff Thompson 't.fleet@msn.com 120 Newport Center Dr. Newport Beach CA 92660 Sep 21, 2022 421 Mr. Ken Bassman kenb@bassmanblaine.com 19 Colonial Dr. Newport Beach CA 92660 Sep 21, 2022 422 Candice Stansfield cjstansfield@icloud.com 140 Liberty Newport Beach California 92660 USA Sep 21, 2022 Keep recreation options available for locals !! We don't need more traffic and tourism! 423 Ms Maddie Rosen maddierosenl@aol.com 124 Lessay Newport coast CA 92657 Sep 22, 2022 424 Mrs Karen Luchesi kluchesi43@gmail.com 43 Goleta Point Dr. Corona del Mar, CA CA 92625 Sep 22, 2022 425 Mrs. Lori Kreutziger teamkrtzgr@me.com 18522 Villa Drive Villa Park CA 92861 USA Sep 22, 2022 426 Ms Rosemary Hezlep mickiehez@gmail.com 1426, OUTRIGGER DR CORONA del MAR CA 92625 Sep 22, 2022 TTC ONLY DOES POSITIVE THINGS FOR THE RESIDENTS OF NEWPORT BEACH AND MANY OTHERS WHO TRAVEL FROM FAR AND NEAR TO ENJOY OUR BEAUTIFUL CLUB. 427 Sydney Rosen I Sydney lRosen sydlrosen@gmail.com 1124 lessay INewport Beach lCalifornia 192657 Sep 22, 2022 This club has fostered more relationships with people in this town than I had my entire years growing up in Newport Beach. Pickleball has been an activity for kids and parents of all ages to collaborate and enjoy and has brought people back into my life from years and years ago in the best way possible. Getting rid of this club would do a massive disservice to not only its members but the community ad a whole 428 jMr IMax jPremer maxpremer@gmail.com 12904B Windsor Rd jAustin JTX 178703 JUSA ISep 22, 2022 Powered by GoPetition 15-334 # Title First name Last name Email Address Postcode Region Date We don't need another hotel - we need more lifestyle complexes just like this pickle ball compound. 429 Mr IShane jPremer shpremer@gmail.com 120 Molino INewport Beach lCalifornia 192660 1 ISep 22, 2022 Save the courts! 430 Mrs. lCorinne iMorgenstern cori448@aol.com 1448 Rivera Terrace jCorona Del Mar lCalifornia 192625 1 ISep 22, 2022 431 Mr. I Steve jErlinger sterlinger@sbcglobal.neti 1510 1/2 Acacia Ave jCorona Del Mar ICa, Orange 192625 1 ISep 22, 2022 Aren't there enough hotels not to mention multi family units in NB yet? Congestion already out of control! 432 Ms Cathy Newton newton.cb21@gmail.com 460 Vista Trucha lNewport Beach ICa 92660-3521 JUSA ISep 22, 2022 433 Mr Gary Newton newtongf@aol.com 460 Vista Trucha INewport Beach ICa 192660 JUSA ISep 22, 2022 434 Mindy Thigpen Mindylou@cox.net 708 Emerald Bay ILaguna Beach lCalifornia ILaguna Beach JUSA ISep 22, 2022 This club has been around since I was a little girl. I am now 67 years old. It is part of the history of Newport Beach and means so much to so many. Please keep it as is. Thank you, Mindy Thigpen 435 Mrs ICarolyn ohnson lollie763@hotmail.com 15102 Canterbury Dr lCypress ICa 199630 1 ISep 22, 2022 I am outraged! 436 Spencer York york.spencer@gmail.com 1310 Watson Avenue Costa Mesa CA 92626 USA Sep 22, 2022 437 Mrs Martha Duque m_e_duque@yahoo.com 1915 Port Cardiff Place Newport Beach CA 92660-5416 USA Sep 22, 2022 438 Mr. Neil Whitney neil.whitney@hotmail.com 1417 Sea Ridge Drive Newport Beach California 92660 USA Sep 22, 2022 439 Andrea Sarkisian asarkisian@mac.com Irvine CA 92612 Sep 22, 2022 440 Ms jMaureen iSchaller maureenschaller@aol.com 12307 Alta Vista Dr lNewport Beach lCalifornia 192660 IUSA ISep 22, 2022 As a former member of the Newport Beach Tennis Club, we do not need a hotel in the residential area of Eastbluff. 441 Rick Brown rbrownx3@gmail.com 21 Honors Dr Newport Beach CA 92660 USA Sep 22, 2022 442 Mr.. Mike Skillman mskillman@aol.com 2602 Circle Drive Newport Beach CA 92663 USA Sep 22, 2022 443 Mr Randy Higbee randy@randyhigbeegallery.com 20061 Waterford Lane Huntington Beach California 92646 USA Sep 22, 2022 444 Dr Darrin Fryer darrinfryer@yahoo.com 225 Opal Ave Newport Beach Ca 92662 Sep 22, 2022 445 Rochelle Lorito rochelleb50ll@msn.com 3421 Fela Ave Long Beach California 90808 USA Sep 22, 2022 446 Ms Lori Sakamoto lorisak@me.com 3282 Oak Knoll Dr Los Alamitos Ca 90720 USA Sep 22, 2022 447 ISherri ISkillman Cr8vsherri@skillman.ws 12602 Circle Drive INewport Beach ICA 192663 JUSA Sep 22, 2022 I've been a tennis & Pickleball member for almost 30 years & strongly object to the proposed hotel. Local Orange County residents need open spaces to recreate, not more buildings/hotels. 448 Ms. IDiane ITagami dmtagami@outlook.com 1353 Ramona Way ICosta Mesa lCalifornia 92627 USA ISep 22, 2022 449 Mr. jPhilip IMiller pmiller@avocetenv.com 11967 Aliso Avenue ICosta Mesa lCalifornia 192627 JUSA ISep 22, 2022 TTC is a more valuable asset to the residents of Newport Beach and surrounding cities than another hotel. 450 Julie Evans surfsidea8@vetizon.net Po342 Surfside Usa 90743 Sep 22, 2022 451 Mr Todd White toddwhite316@gmail.com 535 San Bernardino Ave Newport Beach Ca 92663 Sep 22, 2022 452 Drs Kurt and Lori Lori Openshaw stores4openshaw@gmail.com 1987 Port Trinity Circle Newport Beach ca 92660 Sep 23, 2022 PLEASE PLEASE leave these courts for residents! We all need more places to stay / be active. We certainly do not need any hotels! 453 Mr Sean kanawati sean-kanawati@yahoo.com Seal beach CA 90740 Sep 23, 2022 454 Dr James Fitzpatrick 'im.fitzpatrick@comcast.net 21 Bridington Laguna Niguel California 92677 USA Sep 23, 2022 455 Shaun Skeris shaunskeris@gmail.com 4572 Ironwood Avenue Seal Beach CA 90740 USA Sep 23, 2022 456 Mr Brian McCarthy briancmccarthy@sbcglobal.net 313 34th st Newport Beach Ca 92663 Sep 23, 2022 No way. Traffic and crowds are already unmanageable 457 jDr. IDouglas ICitro expand2504@aol.com 122 Pearl Avenue Newport Beach CA 92662 USA Sep 23, 2022 458 1Mr jAnthony ICasassa casassatony@gmail.com 28 Shade Tree Irvine Ca 92603 Sep 23, 2022 Powered by GoPetition 15-335 # Title First name Last name Email Address city State Postcode 459 Mr lGeorge lGelfer ggelfer@takeyausa.com 125 Via Lucca, Apt J433 Irivine ICA 192612 1 1Sep 23, 2022 I was member 250 and watched the club expand to over 1,800 members creating a strong healthy community. We understand the land owners have the right to develop the land to maximize revenue. All we ask is that Picklball be a center point of the future facility. 460 IGary JBIack Igblackfirell8@gmail.com 1709 1/2 Iris Ave jCorona del Mar ICalifornia 92625-2253 JUSA ISep 23, 2022 Pickleball is the fastest growing sport in America and it would be a shame for Newport Beach to give up this opportunity to support the sport for it's residents and give up the opportunity to be a major national venue for pickleball and tennis! 461 Mr Lewis Lanzner whatwhat22@mac.com 223 Canal Street Newport Beach CA 92663 Sep 23, 2022 462 Mr and Mrs Dave Lamb patricia Lamb patlamb47@yahoo.com 801 Via Lido Soud Newport Beach Ca 92663 Sep 23, 2022 463 Mr Victor Orta orta-victor@hotmail.com 668 W Main St # A Tustin California 92780 Sep 23, 2022 We need more places for recreation to exercise and socialize with other people. This is a location that helps keep the community healthy and should not be closed down. 464 Carl Mazzie carlmazzie@gmail.com Newport Ca USA Sep 23, 2022 465 Heidi Lynn Heidilynnl@cox.net 7 Purple Sage Irvine California 92603 USA Sep 24, 2022 466 Ellen Wheeler fourwheels@roadrunner.com 505 Redlands Avenue Newport Beach CA 92663 Sep 24, 2022 Please save our pickleball courts!!! Do NOT allow the courts to be demolished, you would be doing a huge disservice to our community. 467 Mrs. Linda Young linda@eliteocproductions.com 1044 Santiago Drive Newport Beach Ca 92660 Sep 24, 2022 468 Mr. Burton Young burton.young@sperrycga.com 104; Santiago Drive Newport Beach Ca 92660 Sep 24, 2022 469 William Duffy willduffy@gmail.com 952 TURTLE CREST DR, IRVINE CA 92603 USA Sep 24, 2022 I love TTC and use the facilities with my wife and daughter more 10-hours per week. We would have difficulty finding another pickleball option if TTC were unavailable for play. There are no other adequate pickleball options in the area. Please save our club. It is more than just courts, it is a community. 470 Laura Curcio ljetjensen@gmail.com 6 Navarre Irvine California 92612 Sep 24, 2022 471 Mr Matthew Curcio mlcurcio89@hotmail.com 6 Navarre Irvine Ca 92612 USA Sep 24, 2022 472 Cathy Husen cathyhusen9@gmail.com 20 Encore Ct Newport Beach CA 92663 Sep 24, 2022 473 Mrs Carrie Benvenuti cmbenvenuti@cox.net 10 Venezia Newport coast Ca 92657 USA Sep 24, 2022 474 Lee Ann McCarthy goleeleel7@gmail.com 1128 Portola Oaks Drive Lake Forest CA 92610 USA Sep 25, 2022 475 ITony jMcCarthy tony@mccarthylaw.biz 1128 Portola oaks dr ILake Forest ICA 192610 JUSA ISep 25, 2022 476 Mrs. IToni jMurTay Itoni murray@sbcglobal.net 602 Avocado Ave. jCorona Del Mar ICA 192625 1 ISep 25, 2022 Powered by GoPetition 15-336 Received after Agenda Printed September 27, 2022 Item No. 15 From: Rieff, Kim To: Mulvey, Jennifer Subject: FW: Save the Pickleball club - Vote No on O"Hills plan B Date: September 26, 2022 2:00:18 PM -----Original Message ----- From: Williams <gclhl@cox.net> Sent: September 26, 2022 1:21 PM To: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: Save the Pickleball club - Vote No on O'Hills plan B [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear City Council, Please DO NOT approve Mr. O'Hill's hotel resort/tennis plan as currently proposed. I am a Corona del Mar homeowner with family members who also own a home in the Port Streets. We've tried to play pickleball regularly at the Bonita Canyon Sports Park but courts are very difficult to secure. We've gotten there at the crack of dawn on cold foggy mornings in winter, only to find people playing on the courts prior to 7 am while others are waiting. Even a court reservation system will not solve the problem of too many Newport Beach pickleball players in a city unprepared for the explosion of the sport. So we joined the TTC Pickleball Club to get constant and regular access to courts. We have been promised by 50% landowner Mr. O'Hill and operator Sean, that if the hotel/tennis resort is approved by you on Tuesday, it will actually become a hotel/pickleball resort. If that is not guaranteed, and I believe that it cannot be guaranteed based on Mr. O'Hill's plan B as submitted to you, then please do not approve O'Hill's plan B. Brett and Ryan, the other 50% co -landowners, state they will keep and update the current pickleball club. That's exactly what we want. But that can only happen if you vote No on O'Hill's plan B. Thank you, The Williams family's of Harbor View and the Port Streets. 15-337 Eagle Four Partners 1400 NEWPORT CENTER DR. NEWPORT BEACH CA 92660 (949)240-1020 May 23, 2022 Sean Bollettieri-Abdali Grand Slam Tennis 11 Clubhouse Drive Newport Beach, CA 92660 Re: The Tennis Club Property Dear Sean: I appreciate you and Robert 0 Hill taking the time to meet with me recently to discuss the proposed development projects for the Tennis Property. Newport Beach Country Club is aligned with The Tennis Club in opposing high density apartments on the Tennis Property. As T told Robert ® Hall and you recently, the minor amendment to the Tennis Property entitlements for the boutique hotel use, showing 42 visitor serving Bungalows and Lofts with 3 Penthouse Condoinliniun-as and 2 Villa single family homes on leasehold land is a beautiful project. We are interested in learning more about the proposed minor amendment and resulting project in the days and weeks ahead. We are also keenly interested in continuing to explore opportunities that may arise from the development of the hotel and residential portion of the Tennis Property. All the best, Rory 1 amer CC ,tin Campbell. Assistant Development Director 15-338 Received after Agenda Printed September 27, 2022 Item No.15 September 23, 2022 DELIVERED VIA EMAIL ONLY. citycouncilgnewportbeachca.gov Newport Beach City Council City of Newport Beach 100 Civic Center Drive P.O. Box 1768 Newport Beach, CA 92658-8915 Re: September 27, 2022, City Council Agenda Objection to Agenda Item No. 15 Project No. PA2021-260 Dear Honorable City Council Members: We write to you today to express our objection to Agenda Item No. 15. As you may know, we own 50% of the property at 1602 East Coast Highway ("Tennis Property"), where The Tennis Club at Newport Beach is located. Our co-owner Golf Realty Fund, LP ("GRF") owns the other 50% of the Tennis Property; Robert O Hill represents GRF. We and GRF hold our ownership interests in the Tennis Property as tenants in common, not as an LLC or partnership, which means the individual owners retain significant rights. Our families have lived in the City of Newport Beach ("City") since the 1920s, and we own and operate a number of commercial, residential, and recreational properties throughout the City. For example, one our families' patriarchs, Alan Fainbarg, operated one of the first beach rental shops on Bay Avenue on the Balboa Peninsula in the 1930s. We have the interests of the City at heart, and as generational families with deep roots here we see it as our duty to be involved with and to give back to this community, which we have done and continue to do, including through our philanthropic work. As you may know, we are engaged in an arbitration with GRF to establish rights and obligations of the owners under our private Owners in Common Agreement' for the Tennis Property ("OIC Agreement"). A central issue in the arbitration proceeding is whether GRF has the authority to unilaterally apply for the plans and entitlements for the Tennis Property that are before the City Council on September 27, 2022. It is our position that GRF does not have the authority under the OIC Agreement to apply for the plans and entitlements without our consent. That said, we recognize this is a private dispute between private parties, and we are not seeking to involve the City in our private dispute. Instead, we are giving you this background information to help you understand our objection to the proposed planning application and its approvals and entitlements, which is further explained in the attached Arbitration Demand. ' A copy of the OIC Agreement is attached as Exhibit A to the Arbitration Demand from the pending arbitration, and a copy of the Arbitration Demand is enclosed with this correspondence as Exhibit 1 and is hereby incorporated by reference as if fully set forth herein. 15-339 Also, we attended the City's Planning Commission hearing on September 8, 2022, where we expressed to City staff and commissioners (among other things) our long-term commitment to pickleball at the Tennis Club. We recognize the explosion of pickleball as a sport and realize its growing popularity in our community and the club members' desire for pickleball. In fact, we have been working on a lease with a prominent Newport Beach business operator that would: preserve the club, preserve the pickleball courts, preserve the tennis courts and significantly upgrade the club's facilities. The lease would be for 10 years and can be extended for an additional 10 years should the tenant so desire — making the total possible term 20 years. We sent this lease to Mr. O Hill and we hope he gives it fair consideration. We also expressed at the September 8th Planning Commission hearing our concern that the plans and entitlements for which GRF is applying do not provide for pickleball courts or reflect pickleball as a future use at the Tennis Club. We also understood the City staff and commissioners to say at the September 8th hearing that not only does GRF's plans not provide for pickleball at the Tennis Club but if GRF's project were to be approved and constructed that pickleball would be eliminated as a use at the Tennis Club. We hope that we could all agree that elimination of pickleball would not be good for the pickleball members nor the future of the Tennis Club. We were likewise very concerned to hear a statement read at the September 8th Planning Commission hearing on behalf of an apparently large contingency of club members who oppose GRF's project but did not attend the hearing out of fear because Mr. Abdali allegedly threatened to kick such members out of the Tennis Club if they did attend and oppose the project. We have heard that, unlike the Planning Commission hearing and despite the alleged threats against them, members from the Tennis Club may appear at the City Council hearing to express their dissatisfaction with GRF's project. Thank you for your consideration of our letter. We appreciate the service you perform for our shared community. Sincerely, Brett Feuerstein as Manager of Mesa Shopping Center -East, LLC and Mira Mesa Shopping Center -West, LLC R q�w ew" Ryan Chase as Manager of Fainbarg III, LP cc: Grace K. Leung, City Manager (gleung@newportbeachca.gov) Seimone Jurjis, Community Development Director (sjurjis@newportbeachca.gov) Robert O Hill, Golf Realty Fund (roh@golfrealtyfund.com) Enclosures: Exhibit 1: March 25, 2022, Arbitration Demand from the Pending Arbitration with Exhibit A only; Exhibits B to H to the Arbitration Demand can be provided upon request 15-340 Exhibit 1 15-341 MICHAEL YODER (SBN 83059) myoder@omm.com O'MELVENY & MYERS LLP 610 Newport Center Drive 17th Floor Newport Beach, California 92660-6429 Telephone: +1 949 823 6900 Facsimile: +1 949 823 6994 JACOB C. GONZALES (SBN 235555) igotyples@.j*cg-law.com 1cg I law 23 Corporate Plaza Drive, Suite 150 Newport Beach, California 92660-7901 Telephone: +1 949 313 8545 Attorneys for Claimants MESA SHOPPING CENTER -EAST, LLC MIRA MESA SHOPPING CENTER -WEST, LLC and FAINBARG III, LP JUDICIAL ARBITRATION AND MEDIATION SERVICES ARBITRATION PROCEEDING — ORANGE COUNTY OFFICE MESA SHOPPING CENTER -EAST, LLC, a California limited liability company; MIRA MESA SHOPPING CENTER -WEST, LLC, a California limited liability company; and FAINBARG III, LP, a California limited partnership, Claimants, V. GOLF REALTY FUND LP, a California limited partnership fka O HILL PROPERTIES, a California limited partnership, Respondent. JAMS Case No. 5200000090 CLAIMANTS' DEMAND FOR ARBITRATION AND STATEMENT OF CLAIMS FOR: (1) DECLARATORY AND INJUNCTIVE RELIEF; (2) BREACH OF CONTRACT; (3) BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING; (4) ACCOUNTING; AND (5) DECLARATORY RELIEF Claimants Mesa Shopping Center -East, LLC, Mira Mesa Shopping Center -West, LLC, and Fainbarg III, LP (collectively "Co -Owners" or "Claimants"), hereby allege as follows: 15-342 I. INTRODUCTION 1. The parties, tenant in common owners of the approximate 7-acre Newport Beach tennis club property commonly known as 1602 E. Coast Highway, Newport Beach, CA 92660 (the "Tennis Property"), are no strangers to arbitration. This action marks their fifth such proceeding. In 2013, Respondent obtained an arbitration award that allowed him to complete a few remaining discretionary entitlements, which he had been pursuing for almost 15 years, for his so-called "master plan" to redevelop the Tennis Property. In 2020, Co -Owners obtained an arbitration award finding they had not consented, and were not required to consent, to Respondent's master plan to redevelop the Tennis Property. It was also established at the 2020 arbitration that Respondent had finished processing the few remaining discretionary entitlements for his master plan. Thus, any right Respondent had under the 2013 award to process his discretionary entitlements had run its course. 2. Co -Owners were surprised to learn in late November 2021 that Respondent was applying for new entitlements for the Tennis Property without their knowledge or consent. Respondent submitted new entitlement applications to the City of Newport Beach (the "City") over Co -Owners' instructions that he did not have their consent —express or implied —to process any more entitlements or to spend ownership funds doing so. Respondent concealed from Co - Owners that he had submitted new applications, and when Co -Owners finally learned of the new entitlement applications, they made multiple requests to Respondent in writing to stop and to provide them with information about his entitlement applications. Respondent ignored Co - Owners' requests. 3. Co -Owners also learned in December 2021 that Respondent had allowed a new operator to start a restaurant at the Tennis Property without obtaining the Co -Owners' consent as required under the parties' written agreement for the Property, and that Respondent had submitted a liquor license application purportedly on behalf of the Property ownership along with that operator without notifying Co -Owners. Co -Owners then discovered in February 2022 that alcohol was being sold at the Tennis Property without a liquor license. Co -Owners asked Respondent in writing for basic information about the new operator at the Tennis Property, including to be 15-343 provided any purported lease with the operator, and that Respondent stop the unlawful sale of alcohol. Respondent ignored their request for information and Co -Owners are informed and believe, and thereon allege, that alcohol continues to be sold at the Tennis Property without a license. 4. Respondent is ignoring Co -Owners' rights and his duties to them by treating the Tennis Property as though it is his to do with as he pleases. Respondent has spent significant ownership funds while failing to respond to Co -Owners' requests for basic information and running afoul of his limited duties as managing owner. Rather than cooperate and seek to work toward a consensus with Co -Owners, Respondent is attempting to present them with a fait accompli for his development project for the Tennis Property while exposing them to real liability by placing an operator at the Property without Co -Owners' consent and allowing that operator to unlawfully sell alcohol. Co -Owners bring this arbitration to remove Respondent as managing owner or, alternatively, to enjoin him from further breaches of his agreement with Co -Owners. II. THE PARTIES 5. Claimant Mesa Shopping Center -East, LLC ("Mesa East"), is a California limited liability company with its principal place of business in the City of San Diego. 6. Claimant Mira Mesa Shopping Center -West, LLC ("Mesa West"), is a California limited liability company with its principal place of business in the City of San Diego. 7. Claimant Fainbarg III, LP ("Fainbarg III"), is a California limited partnership with its principal place of business in the City of Costa Mesa. 8. Co -Owners are informed and believe, and thereon allege, that Respondent Golf Realty Fund, LP ("GRF" or "Respondent"), is a California limited partnership, which is managed by Robert O Hill, with its principal place of business in the City of Newport Beach. III. VENUE AND JURISDICTION 9. This action stems from the Agreement Between Real Property Owners — Balboa Bay Club Racquet Club of March 8, 1994 (the "OIC Agreement"), for the Tennis Property, the legal description of which is set forth in Exhibit A to the OIC Agreement. Exhibit A attached hereto is a copy of the OIC Agreement. 15-344 10. Section 26 of the OIC Agreement states: "All disputes arising under this agreement will be resolved by submission to arbitration at the Orange County offices of Judicial Arbitration & Mediation Services Inc. (`JAMS') for binding arbitration. The parties may agree on a retired judge from the JAMS panel. If they are unable to agree, JAMS will provide a list of three available judges and each party may strike one. The remaining judge will serve as the arbitrator at the arbitration hearing.... Nothing in this paragraph shall in any way limit or otherwise restrict a party's right or ability to obtain injunctive relief or appointment of a receiver through the Court system." 11. Pursuant to the OIC Agreement, the claims set forth in this Arbitration Demand are subject to arbitration before a retired judge at JAMS in the County of Orange. Co -Owners reserve the right to obtain injunctive relief through the Court system as provided in Section 26. IV. GENERAL ALLEGATIONS A. Tenant in Common Ownership of the Tennis Property 12. In around 1994, the parties acquired the Tennis Property. Tenant in common ownership in the Tennis Property is apportioned as follows: • Claimant Fainbarg III has a 25% interest, • Claimant Mesa East has a 15% interest, • Claimant Mesa West has a 10% interest, and • Respondent has a 50% interest. 13. The parties also co-own (as tenants in common) the adjacent Newport Beach Country Club located at One Clubhouse Drive, Newport Beach, CA 92660 (f/k/a 1600 E. Pacific Coast Highway, Newport Beach, CA 92660) (the "Golf Property"). Pursuant to the Agreement Between Real Property Owners — Newport Beach Country Club of September 30, 1992, the terms of which are almost identical to the OIC Agreement, tenant in common ownership in the Golf Property is apportioned the same as the ownership in the Tennis Property. 14. Under two essentially identical agreements, for years O Hill Properties, now known as Golf Realty Fund, both controlled by Robert O Hill (hereinafter referred to as "O Hill"), acted as the managing owner, under limited powers, for the tenant in common owners of 15-345 the Tennis and Golf Properties. As both Properties were under long-term triple net leases to tenants, the fundamental job of O Hill was to collect rents, pay the minimal expenses associated with overseeing the Properties, and then pay distributions to all the tenant in common owners. 15. The OIC Agreement provides the managing owner with only limited authority over the Tennis Property, as most decisions are reserved to the tenant in common owners or require at least a majority vote. For example, before O Hill (as the managing owner) could make a material expenditure for a capital improvement at the Tennis Property he must first obtain the written consent of at least one of the Co -Owners. See OIC Agreement § 7(d). Similarly, any conveyance of an interest in the Tennis Property, including a leasehold interest, must be in a writing signed by all the owners. Id. § 3. Aside from the limited powers given to the managing owner to collect rents and pay ordinary expenses, the OIC Agreement expressly provides that each tenant in common owner retains the right to deal with his interest in the Tennis Property as such owner sees fit. Id. § 1. B. History of Problems with O Hill's Management 1. Past Problems with Tennis Property 16. Early on, in the 1990s, O Hill explored ways to redevelop the Tennis Property. He sought to rezone the Tennis Property from open space recreational to a mixed use, which would allow commercial and residential development. Co -Owners were supportive of O Hill's initial efforts to obtain an upzoning of the Tennis Property from open space to mixed use and had no objection to his use of limited ownership funds for that purpose. O Hill developed several ideas for possible site plans but spent relatively modest amounts of ownership funds doing so. 17. In around 2007, however, O Hill started spending considerable amounts of ownership funds, prompting Co -Owners to begin asking questions and requesting information to better understand both what O Hill planned, and the underlying economics of a possible Tennis Property redevelopment. O Hill only reluctantly turned over information for his development plan for the Tennis Property, which O Hill referred to as his "Master Plan," which involved obtaining discretionary entitlements for the Tennis Property for the following three specific uses: 5 single family residential units (referred to as the villas), 7 tennis courts with a new tennis clubhouse/spa 15-346 building, and a hotel with 27 rooms (referred to as the bungalows). 18. Within a year or so of initiating their fact-finding process, it became apparent to Co -Owners that O Hill's proposed Master Plan did not maximize the Tennis Property's value for all the tenant in common owners, or that O Hill at least had not provided Co -Owners with meaningful information to support his proposed Master Plan's economics. It was also apparent that O Hill's Master Plan was really about his personal interests in developing the Tennis Property even though those interests were not shared by Co -Owners, and he was pursuing those interests at Co -Owners' expense. On February 20, 2008, Co -Owners asked O Hill in writing to stop — formally objecting to his further processing discretionary entitlements for his Master Plan. Rather than stop, O Hill ramped up his spending of ownership funds on his discretionary entitlements for his proposed Master Plan. 2. 2011-13 Arbitration with Judge Fromholz 19. In April 2011, the Co -Owners commenced a JAMS arbitration proceeding with Hon. Judge Hayley Fromholz (Ret.) to enjoin O Hill from further processing his discretionary entitlements for his Master Plan. Judge Fromholz issued his decision in May 2013. Exhibit B attached hereto is a true and correct copy of Judge Fromholz' May 17, 2013, Final Award. 20. Judge Fromholz found the OIC Agreement did not expressly give O Hill (as managing owner) expansive powers, and that the Agreement was ambiguous in that it neither clearly authorized nor restricted O Hill from pursuing the discretionary entitlements for his Master Plan: "The Agreements do not expressly give the Managing Owner expansive powers. For example, Recital C of the Agreements states merely that the `Owners ... believe it necessary and appropriate to have one Owner be the managing Owner for purposes of accounting and administration." (Fromholz Award at 8, underline added.) 21. In addition to finding the OIC Agreement was ambiguous, Judge Fromholz concluded that Co -Owners had sat on the sidelines and waited too long to protest the few remaining discretionary entitlements O Hill was processing for his Master Plan. Judge Fromholz found that O Hill could finish the limited work left to complete the discretionary entitlements for his Master Plan since he had purportedly been pursuing them for almost 15 years and very little 15-347 remained for O Hill to do (hereinafter, "2012 Discretionary Entitlements"): "At the time that [Co -Owners] voiced their objection in February 2008, O Hill had been actively_ pursuing the discretionary entitlements for nearly fifteen years. Voters approved the general amendment and the only remaining [discretionary] entitlements were the development standards such as height limits, landscaping, vehicle access, and parking. Thus, very little remained to complete the NBCC Plan." (Id. at 9, underline added.) 22. Judge Fromholz found that, as of May 2013, the only items that remained for O Hill to complete his 2012 Discretionary Entitlements were ministerial development standards: "Currently, the development standards for the NBCC Land such as height limits, landscaping, vehicle access, and parking, are still undetermined. The development standards are the final discretionary entitlements for the NBCC Land. Proceedings are continuing to be held before the City to determine the development standards." (Id. at 4, underline added.) 3. 2015-16 Arbitration with Justice Sonenshine 23. Following the conclusion of the parties' arbitration with Judge Fromholz, and for almost two years, Co -Owners made multiple written requests to O Hill asking to be provided meaningful information about his 2012 Entitlements and Master Plan. O Hill ignored Co -Owners' requests. Thus, in April 2015, Co -Owners initiated another arbitration against O Hill, this time with the Hon. Justice Sheila Prell Sonenshine (Ret.), to obtain an order allowing them to access information concerning the work -product resulting from the hundreds of thousands of dollars of ownership funds spent by O Hill on his 2012 Discretionary Entitlements and Master Plan, and to enforce their contractual right to have an audit performed concerning those expenditures. 24. In August 2016, Co -Owners prevailed in the parties' arbitration with Justice Sonenshine and obtained the audit they were seeking, information concerning O Hill's expenditure of ownership funds on his Master Plan and O Hill's stipulation to provide annual written status and financial reports as required under section 7 of the OIC Agreement. Justice Sonenshine also awarded Co -Owners their attorneys' fees and costs as the prevailing parties. 4. 2017-20 Arbitration with Justice King 25. In 2017, O Hill sued Co -Owners seeking to force them to go along with the 15-348 development of his 2012 Discretionary Entitlements and Master Plan — i.e., the construction of a 27-room hotel, 5 villa residences, and a new tennis clubhouse and 7 courts. In March and May 2019, an evidentiary hearing was held with the Hon. Justice Jeffrey King (Ret.) at JAMS, and on April 8, 2020, Justice King issued his Final Award. Exhibit C attached hereto is a true and correct copy of Justice King's April 8, 2020 Final Award, which was confirmed and entered as a Judgment on March 26, 2021, in Orange County Superior Court Case No. 30-2020-01159790- CU-PA-CJC. 26. By his Final Award, Justice King denied all of O Hill's claims against the Co - Owners and found in favor of the Co -Owners on all of their cross -claims against O Hill, determining, among other things, that: • Co -owners had not already consented, were not estopped from withholding their consent, and had no duty to consent, under the OIC Agreement (or otherwise) to the sale, lease or improvement of the Tennis Property as part of O Hill's 2012 Discretionary Entitlements and Master Plan. • Under the OIC Agreement each owner has the unfettered right to refuse for any reason to sell its interest the Tennis Property or any portion thereof. • Relative to the leasing of the Tennis Property or portions thereof, no owner may refuse to lease the Tennis Property or portions thereof for an objectively unreasonable reason. • The Co -owners' refusal to consent to the sale or lease of, or construction of improvements on, the Tennis Property as part of O Hill's 2012 Discretionary Entitlements and Master Plan was not objectively unreasonable. (Justice King Final Award at 32-33.) 27. Also, O Hill acknowledged in the arbitration with Justice King that as of November 2018, he had completed his 2012 Discretionary Entitlements (which, in 2013, Judge Fromholz said he could finish processing since very little remained to complete them). Indeed, Justice King made it a point to say in his Final Award that O Hill had finally completed his 2012 Discretionary Entitlements: 15-349 Judge Fromholz states at page 4 of his decision, "[c]urrently, the development standards for the NBCC Land such as height limits, landscaping, vehicle access and parking are still undetermined. The development standards are the final discretionary entitlements for the NBCC Land. Proceedings are continuing to be held before the City to determine the development standards." To a reader it somewhat leaves the impression that he believed the process of entitlements was near completion. Entitlements were not completed until about five and one-half years later. (King Final Award at 5, fn. 3, emphasis added.) The master plan has three elements: there are 27 bungalows, 5 villas and the tennis club/spa. The tennis/spa building is an amenity for the bungalows and villas. The entity. By November 2018 he had: the Newport Beach Country Club Planned Community text, a zone change, site plan approval, state Water Quality Control Board approval, grading plan, storm drain plan, dry utility plans and street improvement plans, through plan check. They had all the entitlement approvals necessga to do the "bake - off. (Id. at 10, underline added.) 28. Thus, any right O Hill had to process his few remaining 2012 Discretionary Entitlements under Judge Fromholz' award had run its course as of November 2018. C. Ongoing Issues with O Hill's Management 1. In November 2021, Co -Owners Learned O Hill Was Applying for and Processing New Entitlements for the Tennis Property with the City 29. Co -Owners prevailed in the 2015-16 arbitration with Justice Sonenshine because O Hill was spending significant ownership funds on his Master Plan while refusing to provide Co -Owners with information about such expenditures. Co -Owners prevailed in the 2017-2020 15-350 arbitration with Justice King because, after O Hill had finally completed his 2012 Discretionary Entitlements, it was determined that under the OIC Agreement O Hill could not compel Co - Owners to go along with the development of the Tennis Property as part of O Hill's Master Plan, and Co -Owners were not estopped from, nor being unreasonable, in withholding their consent to O Hill's Master Plan. 30. After Justice King issued his Final Award, Co -Owners sent O Hill a series of letters on November 13, 2019, June 9, 2020 and July 28, 2020, putting him on notice that any right he had to process his few remaining 2012 Discretionary Entitlements under Judge Fromholz' 2013 award (since O Hill had completed them) had run its course and that award did not support O Hill processing new entitlements for the Tennis Property, that he did not have Co - Owners' consent to seek new entitlements and that he was not to spend ownership funds doing so. 31. Yet, in November 2021, Co -Owners discovered that O Hill, without their knowledge or consent and over their objections, was seeking City approval for a new project he had devised without Co -Owners' input, which, Co -Owners are informed and believe, and thereon allege, would significantly change his Master Plan by, without limitation, increasing the number of hotel rooms from 27 to 41 (hereinafter the "2021 Project"). 32. Co -Owners are further informed and believe, and thereon allege, that for his 2021 Project, O Hill is applying for and processing, or that he intends to apply for and process, with the City, the following new entitlements for the Tennis Property: General plan amendment, PC text amendment, development agreement amendment, amendment to tract map, major site development review amendment, limited term permit amendment, coastal development permit amendment, traffic study and compliance with CEQA (hereinafter "New 2021 Entitlements"). Exhibit D attached hereto are copies of O Hill's Community Development Planning Permit Application that Co -Owners are informed and believe, and thereon allege, O Hill submitted to the City in November 2021 and the NBCC Tennis Property Entitlement Amendment & Project Description that Co -Owners are informed and believe, and thereon allege, O Hill submitted to the City in February 2022. 33. On November 23, 2021, Co -Owners sent O Hill a letter expressing surprise that he 15-351 was processing his New 2021 Entitlements and reminding O Hill that he did not have their consent to process any more entitlements for the Tennis Property and was not to spend ownership funds doing so. Co -Owners asked O Hill in writing to stop, and to provide them with copies of the submittals he made to the City for his 2021 Project and his New 2021 Entitlements as well as for meaningful economic data he believed supported his 2021 Project. O Hill ignored Co - Owners' requests. 34. On December 6, 2021, Co -Owners sent O Hill another letter again asking to be provided the information requested in their November 23 letter regarding his 2021 Project and his New 2021 Entitlements, and that he stop processing his New Entitlements. O Hill again ignored Co -Owners' requests. 35. On January 21, 2022, Co -Owners again sent O Hill a letter asking that he provide them with copies of his submissions to the City for his 2021 Project and New 2021 Entitlements, and that he stop processing his New Entitlements. O Hill once more ignored Co -Owners' requests. 36. O Hill has refused to comply with Co -Owners' requests that he provide them with copies of his submittals to the City regarding his 2021 Project and his New 2021 Entitlements, and that he stop processing his New Entitlements, and it is clear that O Hill will only comply if ordered to do so and enjoined from taking further action in connection with his New 2021 Entitlements and from spending ownership funds on them. 2. In December 2021, Co -Owners Learned O Hill Is Processing a Liquor License for a Tenant at the Tennis Property He Never Disclosed 37. In October 2014, Grand Slam Tennis and its manager Sean Abdali (hereinafter collectively "Abdali"), started operating the tennis club at the Tennis Property without a written lease, apparently based upon a purported oral month -to -month agreement with O Hill calling for a $7,000 monthly license fee. Co -Owners are informed and believe, and thereon allege, the purported month -to -month arrangement with Abdali continues today, and the fee/rent Abdali is paying is well below market. 38. When Co -Owners learned Abdali was operating the tennis club, they asked O Hill 15-352 to get a basic written lease in place with Abdali that would provide for the monthly rent to be paid, length of the term, and Abdali's obligation to pay the property taxes and maintain liability insurance covering all the owners. In response to Co -Owners' request for a basic written lease with Abdali, O Hill apparently purported to promise Abdali, without Co -Owners' knowledge or consent, that he could operate the tennis club for 25 years. 39. At the arbitration with Justice King, O Hill testified that he intentionally did not involve Co -Owners when making purported promises to Abdali regarding the tennis club, nor did O Hill seek Co -Owners' approval before making such purported promises. Abdali testified Co - Owners never made any promises to him, and that he knew he needed Co -Owners to sign (as owners) any lease for the tennis club. 40. As part of the arbitration with Justice King, O Hill sought a declaration that Co - Owners had to sign a 22-year proposed lease with Abdali that O Hill had prepared and given to Abdali without Co -Owners' knowledge or consent. Yet, O Hill also testified at the arbitration that "[u]nder the [OIC] agreement each owner must consent to any grant of a leasehold interest" and that "a majority [of owners] must agree as it relates to a lease." (King Final Award at 11.) O Hill's testimony is consistent with section 3 of the OIC Agreement, stating: "The Owners acknowledge and agree that ... any leasehold interest [in the Tennis Property] ... may be granted, conveyed or so encumbered by the execution of the applicable instrument by each Owner." (Underline added.) 41. Justice King denied O Hill's claim, and agreed with Co -Owners, finding that Co - Owners had acted reasonably in declining to sign the proposed lease O Hill negotiated with Abdali. (King Final Award at 25-26.) 42. After Justice King issued his Final Award, Co -Owners sent O Hill letters on June 9, 2020, and July 28, 2020, again asking that he get a basic written lease in place for the tennis club setting forth the tennis club operator's obligations to pay rent, taxes and insurance, and with a reasonable lease term in the range of one to three years. O Hill ignored Co -Owners' requests. 43. In late November 2021, Co -Owners learned from reviewing the tennis club website (https://thetennisclubnb.com) that the club had 31 new pickleball courts. Apparently, several of the tennis courts at the club had been converted to pickleball courts, but O Hill bad not 15-353 informed Co -Owners about the new pickleball courts. Thus, on November 23, 2021, Co -Owners once again sent O Hill a letter asking (1) for an update on the status of a basic, straightforward written lease with Abdali, and (2) for an accounting of the tennis club's operations so they could understand how the 31 new pickleball courts at the club were impacting its membership and revenues. O Hill ignored Co -Owners' requests. 44. On or about December 8, 2021, Co -Owners learned that without their knowledge or consent, a liquor license application was being processed for the Tennis Property with the City, and that the applicant for the liquor license was Clubhouse ATP, LLCan entity Co -Owners had not heard of —and the application had been executed by O Hill on behalf of the Tennis Property ownership. Co -Owners are informed and believe, and thereon allege, that Exhibit E attached hereto is a copy of an application for a liquor license at the Tennis Property submitted by O Hill and Clubhouse ATP to the City on or about August 8, 2021. 45. Co -Owners also learned that Clubhouse ATP was, concurrent with its application with the City, also applying for a liquor license with the California Department of Alcoholic Beverage Control ("ABC"). Exhibit F attached hereto is a copy of an ABC website printout of December 9, 2021, showing Clubhouse ATP's pending application for a liquor license. 46. On December 10, 2021, Co -Owners sent O Hill a letter expressing surprise that Clubhouse ATP (an entity about which he had not informed them) and O Hill were seeking a liquor license for the Tennis Property. Co -Owners were concerned about, among other things, potential exposure and liability as property owners should alcohol be sold at the Tennis Property. Co -Owners asked O Hill to halt the liquor license application until they could understand what protections against liability and exposure would be in place, including insurance, along with asking O Hill to provide them with copies of the submittals made to the City and ABC as part of the use permit and liquor license applications as well as any purported lease agreement made with Clubhouse ATP for the Tennis Property. O Hill ignored Co -Owners' requests. 47. On December 16, 2021, the City Zoning Administrator approved O Hill's and Clubhouse ATP's use permit application for a liquor license at the Tennis Property. In response to the Co -Owners' objections, including that O Hill did not have the authority to sign the use permit 15-354 application on behalf of the ownership, the Zoning Administrator informed Co -Owners that it viewed their objections as pertaining to matters between the Tennis Property's owners in which the City did not want to get involved. The City also told Co -Owners they should take whatever action they believed appropriate to stop O Hill from proceeding with the use permit application. Co -Owners are informed and believe, and thereon allege, that as a condition for the Zoning Administrator agreeing to approve the use permit application, the City required O Hill to sign an agreement to indemnify and defend the City against any legal challenges to the use permit. 48. On January 3, 2022, Co -Owners filed an appeal of the Zoning Administrator's approval of the use permit for a liquor license, and informed the City of their intent to commence this arbitration seeking, among other things, a legal determination and declaration that O Hill did not, and does not, have the authority to sign and submit the use permit application for a liquor license on behalf of the Tennis Property ownership, and before he could do so he was required to get the Co -Owners' consent (which he did not have). Pursuant to Newport Beach Municipal Code (NBMC) section 20.64.030-B. La., a use permit approval by the City Zoning Administrator that is appealed has no force or effect as of the day the appeal is filed. 49. At the time of the submission of this Arbitration Demand to JAMS, Co -Owners' appeal of the Zoning Administrator's approval of the use permit had not yet been heard by the City's Planning Commission. 50. Because O Hill refused to respond to —let alone acknowledge —Co -Owners' requests for information about Clubhouse ATP, including their requests for copies of the submittals to the City and ABC for the use permit and liquor license O Hill and Clubhouse ATP were seeking along with any purported lease agreement with Clubhouse ATP, Co -Owners submitted a public records request to the City for documents relating to the use permit. In January 2022, the City produced responsive documents, including correspondence involving O Hill, that made it apparent that O Hill had purported to convey a leasehold interest in the tennis property to Clubhouse ATP, or he allowed Abdali to do so, without Co -Owners' knowledge or written consent as required under section 3 of the OIC Agreement. For example, the City produced the following: (a) November 10, 2021, email from Patrick Rolfes of Clubhouse ATP to Liz 15-355 Westmoreland at the City regarding the use permit, stating: "We subleased the space on July 7, 2021 and we are hopeful we can get through this process so we can start doing business." (b) November 18, 2021, email from Liz Westmoreland at the City to O Hill stating that if the City grants the use permit and the ABC issues the liquor license to Clubhouse ATP that "it will be on the applicant [i.e., Clubhouse ATP] to comply with his private agreements including lease terms, etc." O Hill responded on November 19, 2021, saying: "Understood." 51. Co -Owners are also informed and believe, and thereon allege, that as part of the application for a liquor license at the Tennis Property that a written agreement was submitted to the ABC purporting to show Clubhouse ATP had a right to tenancy at the Tennis Property. Again, any such agreement purporting to convey a leasehold interest to Clubhouse ATP was made without Co - Owners' knowledge or consent and in violation of their rights under the OIC Agreement. 3. In February 2022, Co -Owners Learned O Hill Was Allowing Alcohol to Be Sold at the Tennis Property Without a License 52. The Alcoholic Beverage Control Act requires an establishment to be licensed before it can sell alcohol and any person violating the statute is guilty of a misdemeanor. Cal. Bus. Prof. Code §§ 23300, 23301. 53. In February 2022, Co -Owners were surprised to learn alcohol was being sold at the Tennis Property without a liquor license apparently at a restaurant called the Clubhouse Grill being operated by Clubhouse ATP. O Hill had failed to inform Co -Owners a restaurant was open and operating at the Tennis Property, let alone selling alcohol without a license. 15-356 54. Below are pictures of alcohol being sold at the Clubhouse Grill on February 8, 2022: f f Picture of the cooler at Clubhouse Grill on Tuesday, February 8, 2022, stocked with beer, martini glasses, and beer taps. 4 r Picture of Indian Pale Ale (IPA) draft beer purchased on tap at Clubhouse Grill on Tuesday, February 8, 2022. 15-357 Thank you for your order. Below is a receipt for your recent visit to ClubHouse Grill_ trouble viewing this email' Picture of receipt from Clubhouse Grill showing IPA draft beer purchased on Tuesday, February 8, 2022, for $7.00. ClubHouse Grill 11 Clubhouse Drive Newport Beach, CA 92660 Server: Check Gues ount=' Ord a red: 2JB/22 - How was your visit? 1 IPA $7.00 55. Below are pictures of alcohol being sold at the Clubhouse Grill on Sunday, February 13, 2022: 15-358 k'-L mus , TUBE 5 E A c Thank you for your order_ Below is a receipt for your recent visit to Clu bHouse Gril I trouble viewing this email' Picture of receipt from Clubhouse Grill showing Bloody Mary with Titos Vodka purchased on Sunday, February 13, 2022, for $12.00. J ClubHouse Gril I 11 Clubhou&e Drive Newport Beach, CA 92660 SZer. Check Guest aunt' Ordered: 2113122- How Was your visit? 1 Tib= $17-00 56. Below are pictures of alcohol being sold at the Clubhouse Grill on Sunday, February 20, 2022: 15-360 Picture of receipt from Clubhouse Grill showing a mixed drink with Titos Vodka purchased on Sunday, February 20, 2022 for $12.00. •' Rio IJ ` w 4 NEWPORT OGACH CTubHause Grill 11 Clubhouse Drive Newport Beach, CA 928BO Server; - ck Guest Guest Count; 0rdefed: 1 Titas 2J2D122 - $12.00 15061 57. On February 22, 2022, Co -Owners sent O Hill (as managing owner) a letter asking that he take whatever action necessary to cause anyone unlawfully selling alcohol at the Tennis Property —including Clubhouse ATP and Abdalito immediately cease and desist doing so. Co - Owners expressed to O Hill that in addition to exposing them to substantial financial liability by allowing alcohol to be sold at the Tennis Property, selling alcohol without a license was a crime. 58. On March 3, 2022, O Hill responded to Co -Owners' February 22, 2022, letter. He did not agree to stop the unlawful sale of alcohol at the Tennis Property nor deny it was taking place. Rather, O Hill somewhat bewilderingly stated that alcohol had been served at the Tennis Property "at tournaments and special events with a special catering permit for over 50 years" and that a "special permit" had been obtained by the Orange County Youth Sports Foundation for a January 29, 2022, event at the Tennis Property. 59. Co -Owners are informed and believe, and thereon allege, that even after O Hill received Co -Owners' February 22, 2022, cease and desist letter, alcohol continues to be sold at the Tennis Property without a liquor license and, thus, unlawfully. 4. In January 2022, O Hill Recommenced His Efforts to Interfere with Co - Owners' Exploration of a Tennis Property Redevelopment Opportunity 60. In the past, when Co -Owners have tried to explore redevelopment opportunities for the Tennis Property, O Hill has taken the position that his Master Plan is the only project that could get approved and any alternative opportunities were unworkable and not worth considering. O Hill's modus operandi is to hijack the process by not only refusing to cooperate in exploring redevelopment alternatives to his Master Plan but to block their fair consideration by attempting to manufacture community opposition to any such alternative project. 61. For example, in 2012 and unbeknownst to Co -Owners, O Hill hired the Chatten Brown law firm to file a lawsuit against the City in the name of the no -growth group "Friends of Good Planning", seeking to enjoin the City from processing the adjacent Golf Property tenant's plan to construct a new $40 million clubhouse because it was at odds with O Hill's Master Plan and despite the fact that the Golf Property lease plainly gave that right to the tenant. In March 2012, O Hill attended a City Council meeting and represented that he was in no way supporting or 15-362 sponsoring the Friends of Good Planning lawsuit. In March 2017, Chatten Brown sued O Hill personally for unpaid legal fees it had incurred at his direction for the Friends of Good Planning lawsuit in 2012. In June 2017, O Hill paid Chatten Brown $15,000 using Tennis Property ownership funds to settle that lawsuit — without informing Co -Owners. 62. In 2019, upon learning that Co -Owners were trying to obtain a redevelopment proposal for the Tennis Property from the ownership group operating the adjacent Golf Property, O Hill and Abdali (the tennis club operator) launched the website savethetennisclub.org seeking to spread misinformation about the potential redevelopment project and circulating a petition opposing it. Their website called out the Co -Owners' principals by name, Elliot Feuerstein and Iry Chase, claiming they "want to upend the General Plan approved by the voters of Newport Beach and eliminate the Tennis Club and the promised enhancements all together." 63. Thus, on January 5, 2021, when Co -Owners learned the City was updating its Housing Element to address the state mandate for more housing and was accepting proposals for projects that may help meet the housing need, and that Ryan Co. (an established developer) was interested in entering into a long-term ground lease for the Tennis Property and constructing a multifamily redevelopment project there that could pay the owners millions in rent each year, Co - Owners sent O Hill a letter asking that he have an open mind, and to not interfere, as they attempted to meaningfully explore a lease proposal with Ryan Co. 64. On January 19, 2021, Co -Owners sent O Hill a copy of a letter they informed him they intended to send to the City letting it know they were in discussion with a few developers interested in redeveloping the Tennis Property and these projects would seem to be good candidates for participation in the City's Housing Element Update, and Co -Owners hoped to share details about the projects with the City soon and to start exploratory discussions. O Hill did not object to Co -Owners sending their letter to the City. 65. On December 6, 2021, Co -Owners sent O Hill a letter letting him know they had negotiated and were in the process of drafting a proposed lease with Ryan Co. and expected to be able to share that lease with him for discussion within 30-60 days. Co -Owners also restated their request to O Hill that he not interfere with their efforts to secure a lease proposal from Ryan Co. 15-363 66. On or about January 13, 2022, Co -Owners learned that a petition was being circulated at the tennis club and to its members to drum -up opposition to a Ryan Co. project at the Tennis Property. Co -Owners are informed and believe, and thereon allege, that petition was generated by the current tennis club operator Abdali and O Hill, or at least with O Hill's knowledge. Exhibit G attached hereto is a copy of the Petition to Stop the Massive Development Proposed to Replace the Tennis Club at Newport Beach. 67. Co -Owners also learned of a new website—savethetennisclub.com/tennis-club/­ further seeking to solicit opposition to Ryan Co. which Co -Owners are informed and believe, and thereon allege, was generated by Abdali and O Hill, or with O Hill's knowledge. Exhibit H attached hereto is a copy of the savethetennisclub.com/tennis-club/ webpage. This is the same type of interference O Hill and Abdali engaged in 2019 when they created the website savethetenniclub.org upon learning of Co -Owners' efforts to solicit a proposal for a long-term ground lease for the Tennis Property from the operators of the adjacent Golf Property. 68. On January 21, 2022, Co -Owners sent O Hill a letter stating that the petition being circulated at the tennis club and the savethetennisclub.com website opposing Co -Owners' efforts regarding Ryan Co., which at that point merely consisted of obtaining a proposal, were acts of interference that needed to stop, and if it was shown that O Hill was involved as Co -Owners suspected that his conduct constituted a breach of his fiduciary duties and raised questions about his suitability to act as managing owner. Co -Owners asked that O Hill stop his efforts to incite opposition to a potential Ryan Co. project and that he instruct Abdali in writing to do the same. 69. On January 28, 2022, O Hill responded claiming to have no knowledge of the savethetennisclub.com website, but also saying he would not instruct Abdali to stop with his efforts to drum -up opposition to a potential Ryan Co. project, while taking an "I told you so" position and saying he was not surprised activists were mobilizing to oppose the project — at the same time conceding he had discussed the Ryan Co. project with those activists. O Hill's behavior once more shows the lengths he will go to prevent any consideration of alternatives to his Master Plan. 15-364 IV. CO -OWNERS' ARBITRATION CLAIMS AGAINST O HILL FIRST CLAIM FOR RELIEF (Declaratory and Injunctive Relief) 70. Co -Owners incorporate by reference as though set forth in full, each and all the allegations set forth in Paragraphs 1 through 69, above. 71. Despite Co -Owners' November 23, 2021, December 6, 2021, and January 21, 2022, letters asking O Hill to confirm in writing he had stopped processing his New 2021 Entitlements, and Co -Owners' December 10, 2021, letter to O Hill asking that he stop processing the use permit for a liquor license at the Tennis Property, O Hill has failed to acknowledge the requests in Co - Owners' letters and continues to process such applications. As such, Co -Owners bring this arbitration to seek a legal determination and declaration that O Hill does not, and did not, have the authority to process his New 2021 Entitlements or the use permit for a liquor license. 72. An actual controversy has arisen and now exists between Co -Owners and O Hill concerning their respective rights and obligations under the OIC Agreement. Co -Owners contend that in November 2018 O Hill finished processing his few remaining 2012 Discretionary Entitlements, and, thus, any right he had to process his Discretionary Entitlements ran its course and O Hill cannot continue to spend ownership money further entitling his already fully entitled Master Plan — especially since he cannot compel Co -Owners to consent to his Master Plan as Justice King determined, and that he was required to disclose any new entitlements or development plan to Co -Owners (and to continue to provide them with meaningful information regarding the same) and to obtain their consent before he could spend ownership funds and process his New 2021 Entitlements and the use permit for a liquor license at the Tennis Property, and that he does not have the Co -Owners' consent to seek them. 73. An additional actual controversy has arisen and now exists between Co -Owners and O Hill under the OIC Agreement, in that Co -Owners are informed and believe, and thereon allege, that O Hill is purporting to convey a leasehold interest in the Tennis Property, or is allowing Abdali to do so with O Hill's knowledge, including to Clubhouse ATP, without Co - Owners' knowledge or written consent as required under section 3 of the OIC Agreement. 15-365 74. Further, after Co -Owners sent O Hill their February 22, 2022 cease and desist letter to stop the unlawful sale of alcohol at the Tennis Property, Co -Owners are informed and believe, and thereon allege, that alcohol continues to be sold at the Tennis Property without a liquor license. Thus, an additional actual controversy has arisen and now exists between Co - Owners and O Hill, and Co -Owners also seek a legal determination and declaration that O Hill must take any and all action necessary to cause anyone unlawfully selling alcohol at the Tennis Property to immediately cease and desist doing so. 75. Because of the urgency and importance of the issues presented by the parties' dispute, it is necessary and appropriate for the Arbitrator to resolve this dispute by issuing a declaration determining the respective rights and obligations of the parties with respect to the OIC Agreement. 76. Co -Owners have no adequate remedy at law and will suffer irreparable damage unless O Hill is enjoined from further taking the action identified herein. Co -Owners therefore seek a temporary restraining order, preliminary injunction and permanent injunction restraining O Hill, and agents, representatives, successors and assigns, from taking any further action in connection with the conduct identified herein. SECOND CLAIM FOR RELIEF (Breach of the OIC Agreement) 77. Co -Owners incorporate by reference as though set forth in full, each and all the allegations set forth in Paragraphs 1 through 76, above. 78. Recital C of the OIC Agreement states that O Hill's limited purpose as managing owner concerns accounting and administration duties, and section 7—specifying O Hill's limited authority under the OIC Agreement as managing owner —does not authorize O Hill to process entitlements for the Tennis Property. O Hill breached the OIC Agreement by processing, and spending ownership funds processing, his New 2021 Entitlements and the use permit for the liquor license without Co -Owners' knowledge or consent. Co -Owners learned about O Hill processing his New Entitlements and use permit with the City in November and December 2021, and despite Co -Owners' express written objections, and in breach of the OIC Agreement, O Hill 15-366 has persisted in processing them. 79. Section 3 of the OIC Agreement states that any conveyance of a leasehold interest in the Tennis Property must be in a writing signed by all the owners. Id. § 3. Co -Owners are also informed and believe, and thereon allege, that, in breach of section 3 of the OIC Agreement, O Hill has purported to convey a leasehold interest in the Tennis Property without Co -Owners' knowledge or consent, including to Clubhouse ATP. 80. Section 7 of the OIC Agreement sets forth the duties of the managing owner, and section 7(e) provides that the managing owner is paid "an asset management fee" for performing those duties. Co -Owners are informed and believe, and thereon allege, that O Hill breached section 7 of the OIC Agreement by allowing alcohol to be sold at the Tennis Property without a liquor license and, thus, unlawfully and/or is being grossly negligent in performing his duties as managing owner by not preventing the unlawful sale of alcohol there. 81. Co -Owners have performed their obligations under the OIC Agreement except those which they have been excused or prevented from performing. 82. As a direct and proximate result of O Hill's breaches of the OIC Agreement, Co - Owners have suffered, and will continue to suffer, direct and foreseeable damages, including but not limited to, O Hill's improper and unauthorized expenditure of material sums of ownership money, in an amount to be determined at the arbitration hearing. THIRD CLAIM FOR RELIEF (Breach of Implied Covenant of Good Faith and Fair Dealing) 83. Co -Owners incorporate by reference as though set forth in full, each and all the allegations set forth in Paragraphs 1 through 82, above. 84. The OIC Agreement is subject to an implied covenant of good faith and fair dealing that all parties would act in good faith and with reasonable efforts to perform their contractual duties —both explicit and fairly implied —and not to impair the rights of other parties to receive the rights, benefits, and reasonable expectations under the Agreement. 85. O Hill breached the implied covenant of good faith and fair dealing by: (a) processing his New 2021 Entitlements and use permit with the City and 15-367 spending ownership funds doing so without Co -Owners' consent; (b) purporting to convey a leasehold interest in the Tennis Property —or allowing Abdali to do so with his knowledge, including to Clubhouse ATPwithout Co -Owners' consent; (c) interfering with Co -Owners' efforts to obtain a lease proposal from Ryan Co.; and (d) allowing alcohol to be sold at the Tennis Property without a liquor license. 86. Co -Owners have performed their obligations under the OIC Agreement except those which they have been excused or prevented from performing. 87. O Hill's failure to act in good faith has denied Co -Owners the full benefit of their bargain under the OIC Agreement. 88. As a result of O Hill's breach of the covenant of good faith and fair dealing, Co - Owners have suffered, and will continue to suffer, direct and foreseeable damages, in an amount to be determined at the arbitration hearing. FOURTH CLAIM FOR RELIEF (Accounting) 89. Co -Owners incorporate by reference as though set forth in full, each and all the allegations set forth in Paragraphs 1 through 88, above. 90. Co -Owners are unaware of the exact amount of ownership funds spent by O Hill on his New 2021 Entitlements or the use permit for a liquor license at the Tennis Property. The information necessary to ascertain those amounts is strictly within O Hill's control. Accordingly, Co -Owners seeks a forensic accounting of those amounts. 91. Co -Owners are unaware of the financial impact the new pickleball courts (see paragraph 41 above) have had on the tennis club's operation, and whether Clubhouse ATP or any other purported tenant is paying to, or sharing with, O Hill any income being generated by or at the tennis club other than the monthly rent O Hill reflects on the distribution summaries he provides to Co -Owners. The information necessary to ascertain those amounts is strictly within O Hill's control. Accordingly, Co -Owners seek a forensic accounting of those amounts and the 15-368 tennis club's operations. FIFTH CLAIM FOR RELIEF (Declaratory Relief) 92. Co -Owners incorporate by reference as though set forth in full, each and all the allegations set forth in Paragraphs 1 through 91, above. 93. Section 7(b) of the OIC Agreement provides that the owners of a majority of ownership interests in the Tennis Property not owned by the managing owner may elect to remove the managing owner for "cause" and appoint a new managing owner. Section 7(b) defines "cause" as "fraud, gross negligence or material default of a material obligation by Managing Owner." 94. An actual controversy has arisen and now exists between Co -Owners and O Hill concerning their respective rights and obligations under the OIC Agreement. Co -Owners are informed and believe, and based thereon allege, that cause exists, including based on O Hill's conduct alleged herein, to remove him as managing owner under the OIC Agreement. 95. Co -Owners have no adequate remedy at law and will suffer irreparable damage unless O Hill is enjoined from taking any further action purportedly on the basis that he is the managing owner. Co -Owners therefore seek a temporary restraining order, preliminary injunction and permanent injunction restraining O Hill, and his agents, representatives, successors and assigns, from taking any further action as the managing owner (including prohibiting him from spending Tennis Property funds, submitting entitlement applications purportedly on behalf of the Tennis Property owners, or purporting to convey a leasehold interest in the Tennis Property), and that O Hill and any other person or entity (including NBCC Land or NBCC L&I) with possession, custody or control of property of, or records relating to, the Tennis Property (including any bank account(s) and/or books and records), shall by personal service or otherwise fully cooperate with and assist the succeeding managing owner in taking and maintaining possession, custody, or control of such property and records and immediately transfer or deliver them to the succeeding managing owner. 15-369 WHEREFORE, Co -Owners pray for an Arbitrator's Award on their claims as follows: ON THE FIRST CLAIM FOR DECLARATORY AND INJUNCTIVE RELIEF 1. For a determination and declaration that O Hill was required to disclose to and obtain Co -Owners' consent before he could spend ownership funds on and process his New 2021 Entitlements and the use permit for a liquor license, and that he does not have the Co -Owners' consent to seek his New 2021 Entitlements or the use permit for a liquor license and he must halt their processing and withdraw them from the City. 2. For a temporary restraining order, preliminary injunction and permanent injunction restraining O Hill, and his agents, representatives, successors and assigns, from taking any further action processing his New 2021 Entitlements or the use permit for a liquor license, or spending ownership funds thereon, without first obtaining the consent of one or more of the Co -Owners. 3. For a determination and declaration that, under section 3 of the OIC Agreement, O Hill was required to disclose to Co -Owners and obtain their written consent prior to purporting to convey a leasehold interest in the Tennis Property, including to Clubhouse ATP. 4. For a temporary restraining order, preliminary injunction and permanent injunction restraining O Hill, and his agents, representatives, successors and assigns, from taking any further action purporting to convey a leasehold interest in the Tennis Property, including to Clubhouse ATP. 5. For a determination and declaration that O Hill must take any and all action necessary to cause anyone unlawfully selling alcohol at the Tennis Property to immediately cease and desist doing so. 6. For a temporary restraining order, preliminary injunction and permanent injunction restraining O Hill, and his agents, representatives, successors and assigns, and any alleged tenant or licensee to whom O Hill has purported to convey a tenancy or other right to occupy or operate at the Tennis Property, from engaging in the unlawful sale of alcohol at the Tennis Property without a liquor license. 15-370 ON THE SECOND AND THIRD CLAIMS FOR BREACH OF CONTRACT AND BREACH OF THE IMPLIED COVENANT 7. For damages in an amount to be proven at trial. ON THE FOURTH CLAIM FOR AN ACCOUNTING 8. For a forensic accounting (1) of the exact amount of ownership funds spent by O Hill on the 2021 Project, 2021 New Entitlements and the use permit for a liquor license at the Tennis Property, and (2) of the tennis club's operations and revenues. ON THE FIFTH CLAIM FOR DECLARATORY RELIEF 9. For a determination and declaration that cause exists under the OIC Agreement to remove O Hill as managing owner. 10. For a temporary restraining order, preliminary injunction and permanent injunction restraining O Hill, and his agents, representatives, successors and assigns, from taking any further action purportedly on the basis as managing owner (including prohibiting him from spending Tennis Property funds, submitting entitlement applications purportedly on behalf of the Tennis Property owners, or purporting to convey a leasehold interest in the Tennis Property), and that O Hill and any other person or entity (including NBCC Land or NBCC L&I) with possession, custody or control of property of, or records relating to, the Tennis Property (including any bank account(s) and/or books and records), shall by personal service or otherwise fully cooperate with and assist the succeeding managing owner in taking and maintaining possession, custody, or control of such property and records and immediately transfer or deliver them to the succeeding managing owner. ON ALL CLAIMS: 11. For attorneys' fees incurred in this action pursuant to section 27 of the OIC Agreement. 12. For costs of suit and out-of-pocket expenses. 13. For such other relief as the Arbitrator deems just and proper. 15-371 Dated: March 25, 2022 MICHAEL YODER O'MELVENY & MYERS LLP JACQB C. GONZALES 1c9 I law By: acob 4on es Attorneys for Co -Os Claimants Mesa Shopping Center -East LLC, Mira Mesa Shopping Center -West LLC, and Fainbarg III LP 15-372 Exhibit A 15-373 RECORDlNQ REQUESTED BY AND WHEN RECORDED RETURN TO: O Hill Properties One Upper Newport Plaza Newport Beach, CA 92660 sU AGREEMENT BETWEEN REAL PROPERTY OWNERS BALBOA BAY CLUB RACQUET CLUB Newport Beach, California This Agreement Between Real Property Owners ("Agreement") is entered into by and between O Hill Properties, a California limited partnership ("O Hill"), The Fainbarg Trust dated April 19, 1982 ("TFC"), Mesa Shopping Center -East, a California general partnership (Mesa -East), Mira Mesa Shopping Center -West, a California general partnership ("Mira Mesa - West"), and Newport Beach Country Club, a California limited partnership ("NBCC Ltd"). O Trill, TFT, Mesa -Fast, Mira Mesa -West, and NBCC Ltd are sometimes referred to singularly as an "Owner" or "party" or collectively as the "Owners" or "parties". RECITALS A. The Owners desire to own, lease, manage, maintain, refinance, encumber and hold for investment, as tenants in common, that certain real property comprising approximately 6.099 acres with improvements thereon, commonly identified as Balboa Bay Club Racquet Club located at 1602 East Pacific Coast Highway, in Newport Beach, California and legally described in Exhibit "A" attached (the "Property"). B. The Owners have discussed the co -ownership of the Property and have concluded that to avoid conveyancing and ownership problems created by death, marital or other dissolution, bankruptcy or insolvency, disputes and the like, it is in the best interest of each Owner that the holding of the Property be governed by an agreement which defines the rights and duties of each Owner in the form of this Agreement. C. The Owners also believe it necessary and appropriate to have one Owner be the managing Owner for purposes of accounting and administration. 6110193 15-374 NOW, THEREFORE, in consideration of the foregoing Recitals and the conditions and covenants hereinafter contained, the Owners hereby agree as follows: 1. AGREIIIdENT AS TENANTS IN COMMON. The Owners agree to hold title to the Property as tenants in common to own, manage, maintain, lease, finance, refinance, and/or hold the Property for investment in accordance with the terms of this Agreement. The Owners may conduct such other activities with respect to the Property as are related to or compatible with the ownership of real estate. Subject to the provisions of this Agreement, each Owner retains the right to deal with his Interest in the Property (as defined in Section 3 below) as such Owner sees fit. 2. TERM. This Agreement shall become effective on the acquisition of the Property by the Owners, and shall continue thereafter until terminated pursuant to Section 13 below. 3. TITLE TO THE PROPERTY; CONVEYANCES AND LIENS. Concurrently with the recordation hereof, title to the Property shall be acquired by, and in the name of, the Owners as their interests appear in Exhibit "B" attached (each an "Interest") and shall thereafter be held in the name of the Owners as tenants in common. The Owners acknowledge and agree that the Property, or any interest therein, including any leasehold interest, any deed of trust granted or other encumbrances or liens placed thereon, may be granted, conveyed or so encumbered by the execution of the applicable instrument by each Owner, or if an Owner is obligated to convey, lease or encumber its interest in accordance with the terms of Section 4 of this Agreement and fails to do so within the time limits set forth herein, by the Managing Owner and the Additional Owner (both as defined in Section 7 below) in accordance with the powers of attorney granted to the Managing Owner and the Additional Owner as described in Section 7(c) below. Such conveyance or encumbrance by the.Managing Owner and the Additional Owner under such powers of attorney shall be binding upon each Owner. 4. FINANCING, REFINANCINGS, SALE AND LEASING. (a) The Owners acknowledge that concurrently with the acquisition of the Property, the Owners shall place financing on the Property which may have a balloon payment at the due date thereof (the "Acquisition Financing"). Each Owner acknowledges that there will be refinancings of the Acquisition Financing from time to time. The Managing Owner shall have the right to obtain such refinancing for the Property on then market rates and terms. Each Owner shall have a duty to fully cooperate and not interfere or impede, in any manner, -2- 15-375 in such refinancings including but not limited to signing appropriate documentation (e.g. notes, deeds of trust, assignments of rents and leases, guarantees and the like) within ten (10) days after being requested to do so by Managing Owner. Each Owner shall be responsible for its respective share, as determined by its pro rats ownership Interest in the Property, of the payments of principal and interest and other costs owing under the Acquisition Financing and refinancings . The Acquisition Pinanci ng and refinancings, however, may be a joint and several obligation of the Owners. Refinancing shall only be permitted within two (2) years of the due date of the financing which then encumbers the Property and the amount shall not materially exceed the remaining principal balance of the then existing loan balance plus refinancing related costs, unless the new loan is non -recourse to the Owners and is approved by sixty-five percent (65 %) or more of the ownership Interests in the Property. (b) The Managing Owner shall list the property for sale and convey or otherwise transfer the Property if such transaction is approved by seventy percent (70%) or more of the ownership Interests in the Property. Each Owner shall have a duty to fully cooperate and not interfere or impede in any manner with such sale approved by seventy percent (70%) or more of the ownership Interests in the Property, including but not limited to the signing of a grant deed, sale agreements, assignment of leases and escrow instructions within ten (10) days after being requested to do so by Managing Owner. Any Owner who desires an exchange of its equity in the Property under Section 1031 of the Internal Revenue Code shall have the right to arrange for such exchange of its undivided ownership Interest, provided that under no circumstances shall the inability of any Owner to consummate such an exchange delay the sale of the Property. The other Owners, at no cost or expense shall cooperate in such exchange, however, no Owner shall be required to take title to an exchange or other property as a part of such duty to cooperate. (c) Managing Owner may amend, terminate or extend the ground lease of the Property only with the prior written consent of the Owners of a majority of the ownership Interests in the Property. Each Owner shall execute, any such amendment, termination or extension approved by a majority of the ownership Interests in the Property within ten (10) days after being requested to do so by Managing Owner. (d) Any Owner who has a duty to execute any refinancing, sale or lease documentation and fails or refuses to do so shall be liable for all costs, liabilities, damages, claims and expenses including attorney's fees and legal costs which results to the other Owners from such failure or refusal. 5. LIMPPATION OF OWNERS. Each Owner shall be subject to the following limitations: -3- 15-376 (a) Each Owner hereby irrevocably waives any and all rights that such Owner may have to withdraw from the terms of this Agreement, maintain an action for the partition of the Property (unless Owners of 65 % or more of the Interests in the Property join or consent to such action), or otherwise force a sale of the Property during the term hereof, except as expressly provided herein. (b) No Owner shall be entitled to interest on such Owner's contribution toward the purchase of the Property. No Owner shall have the right to withdraw or reduce such Owner's contribution toward the purchase of the Property. No Owner shall have the right to demand property other than cash in return for such Owner's contribution toward the purchase of the Property. No Owner shall have priority over any other Owner either as to the return of contributions toward the purchase of the. Property or as to other distributions. 6. CASH CALLS. Each Owner shall pay (1) such Owner's share of losses and negative cash flow necessary to cover the costs of owning the Property in proportion to such Owner's respective Interest in the Property and (ii) any involuntary lien which encumbers an Owner's Interest (such as a tax, judgment or execution Tien or an attachment) (a "Cash Call"). If an Owner fails to pay its Cash Calll within twenty (20) days from the date set for such payment in a written notice that such amount must be paid from the Managing Owner (or any other Owner if the Managing Owner fails to send out a written notice when such Cash Call is necessary), such failure shall automatically constitute a granting by such Owner (a "Defaulting Owner") to the other Owners of the following alternative options in addition to all other remedies available at law: (i) the other Owners may advance the Defaulting Owner's required Cash Call, in the proportions agreed upon by such other Owners, and absent such an agreement, in the proportion which the Interest of an Owner desiring to make such advance bears to the Interests of all Owners desiring to make such advance, and the Defaulting Owner shall convey (or if necessary, the Managing Owner and any Additional Owner under the powers of attorney granted in Section 7(c) below shall convey) by grant deed a portion of Defaulting Owner's Interest in the Property in the proportion in which such advance bears to the Defaulting Owner's equity in the Property (the "Transferred Portion"). The determination of equity in the Property shall be based upon a ten percent (10%) capitalization rate of the preceding twelve (12) months net operating income, less the Defaulting Owner's prorata share of liens entered into by, or which encumber the Interests of, all of the Owners (the "Collective Liens") and outstanding or reasonably projected extraordinary expenses for the next one (1) year period. The Defaulting Owner shall remove liens from the title to the Transferred Portion so that the Transferred Portion conveyed to the Owners making such advance shall be free and clear of liens (except the Collective Liens), If the Defaulting Owner is unable to -4- 15-377 deliver free and clear title to the Transferred Portion, the other Owners may purchase, at the same price paid for the Transferred Portion so much of the Interest of the Defaulting Owner (the "Additional Portion") so that enough cash is generated to allow for the delivery of the Transferred Portion and the Additional Portion by the Defaulting Owner to the other Owners free and clear. If the Property is not subject to a long term ground lease or long term ground leases (of if any such leases are then in default beyond any curative period), the equity in the Property of the Defaulting Owner shall be 90% of the appraised value of the entire Property subject to all non monetary encumbrances thereof, based upon the highest and best use reasonably available for the Property, as determined by an independent MAI appraiser selected by a majority of the ownership Interests owned by the Non Defaulting Owners (the cost of which appraisal shall be charged to the Defaulting Owner) times the percentage Interest of the Defaulting Owner in the Property, and the Defaulting Owner's prorata share of the Collective Liens shall be subtracted therefrom; (ii) the other Owners may admit an additional owner upon the terms and conditions of this Agreement, which additional owner shall advance the Defaulting Owner's required Cash Call and receive a portion of the Defaulting Owner's Interest in the Property on. the same basis as preceding subparagraph (i); (iii) the Managing Owner may borrow in the name of or on behalf of the Defaulting Owner the amount of the Cash Call and pledge or otherwise encumber the Interest in the Property of the Defaulting Owner to secure the loan, or (iv) the other Owners may advance to the Defaulting Owner the amount of such unpaid Cash Call owing by Defaulting Owner in which case a Promissory Note shall be executed by Defaulting Owner in'favor of the other Owners who have advanced the Cash Call of the Defaulting Owner, a copy of which Promissory Note is attached as Exhibit "C" hereto and incorporated herein by this reference ("Promissory Note"). At the. election of the Owners who make an advance to the Defaulting Owner, the Promissory Note shall be secured by a deed of trust upon the Defaulting Owner's entire interest in the Property, and the Defaulting Owner shall execute all documents reasonably necessary to effectuate such encumbrance. If an expense, loss or damages are incurred by the Owners as the result of a Defaulting Owner not making a Cash Call on or before the date set for the Cash Call in the written notice sent out by the Managing Owner (or the other Owners, as applicable), the Defaulting Owner shall immediately pay such expense or loss in addition to any other damages caused by such failure. 7. MANAGING OWNER. (a) The Owners hereby appoint 0 Hill and its successors and assigns as Managing Owner. The duties of Managing Owner shall be as follows: (i) Managing Owner shall perform all of the duties of Managing Owner -5- 15-378 as set forth in this Agreement. (H) Managing Owner is authorized to take actions which are consistent with the terms of this Agreement, to carry out this Agreement including but not limited to the right to hire andlor retain on behalf of the Owners accountants, lawyers, appraisers, mortgage brokers, insurance agents and consultants which Managing Owner deems appropriate in its reasonable discretion,. (iii) Managing Owner shall approve and coordinate the payment of the expenses of the ownership of the Property, (iv) Managing Owner shall maintain the books and records of the Owners at the principal business office of Managing Owner. (v) Managing Owner shall have a fiduciary duty to prepare a written status and financial report for the Property and provide copies to each Owner within ninety (90) days after request from another Owner, and within seventy-five (75) days after the end of each calendar year. (b) The Owners of a majority of the ownership Interests in the Property shall have the right to select a new Managing Owner in place of O Hill, its successors and assigns if Robert O Hill is no longer the person primarily responsible for the overall management of the entity which constitutes the Managing Owner. In the event a Managing Owner sells its entire interest in the Property or resigns as Managing Owner, the Owners by election of the Owners who own a majority of the Interests in the Property shall appoint a new Managing Owner. At any time, Managing Owner may be removed with cause by the written election of the Owners of a majority of the ownership Interests in the Property not owned by the Managing Owner, and a new Managing Owner shall be appointed by the Owners who own a majority of the ownership Interests in the Property. The votes cast by the Managing Owner in favor of a new Managing Owner may not be cast for the removed Managing Owner or any transferee of the removed Managing Owner's interests, If the removed Managing Owner does not vote to appoint a new Managing Owner within ten (10) days of being requested to do so by the other Owners, then the new Managing Owner shall be appointed by Owners of a majority of the ownership Interests in the Property not owned by Managing Owner. Such resignation or removal, and the new appointment shall be recorded in the office of the Orange County Recorder. In the event there is no Managing Owner, all actions of the Owners with respect to the Property shall require the unanimous written consent of the Owners, "Cause" as used herein shall mean fraud, gross negligence or a material default of a material obligation by Managing Owner. The reasons for removal of a Managing Owner shall be material and specifically stated in the written notice of removat. (c) Managing Owner is hereby appointed as attorney in fact for each Owner for the purpose of taking all actions which are approved in writing by the requisite percentage -6- 15-379 of ownership Interests in the Property or which the Managing Owner is otherwise allowed or authorized to take hereunder, including execution of deeds, deeds of trusts, notes, assignment of leases, assignments of rents and leases, guarantees, lease amendments, extensions or terminations, all in the name, place and stead and on behalf of each Owner with the same validity and effect as if such Owner had executed same. Each Owner specifically agrees to be bound by all actions validly taken under such power of attorney. This power of attorney is coupled with an interest and is irrevocable. Each Owner also hereby appoints each other Owner as attorney in fact for such Owner for purposes of acting as an additional signatory to any action undertaken by Managing Owner pursuant to the provisions of Section 4 hereof, and of the power of attorney granted Managing Owner herein (each, an "Additional Owner"). (d) Except for the protection of the Property or in the case of an emergency, no material sums shall be expended for capital improvements without the prior written consent of Owners who hold a majority of the Interests in the Property. (e) As compensation for the duties of Managing Owner under this Agreement, Managing Owner shall be reimbursed reasonable out of pocket costs incurred and paid to unaffiliated third parties and shall receive an asset management fee which shall be equal to one-half percent ('!z %) of the gross receipts from the operations of the Property, payable monthly. Managing Owner may deduct such amounts due Managing Owner or third parties from revenue received from the.Property, but shall identify amounts charged to the Owners, on at least a quarterly basis. (f) The Managing Owner shall not have the right to retain counsel at the Owner's expense for a dispute between the Owners, unless the dispute results from a breach or default under the terms of this Agreement by an Owner or the Owners, other than the Managing Owner. 8. DISTRIBUTIONS. Distributions of cash to the Owners shall be made as follows: (a) Cash from operations shall be distributed to the Owners in accordance with their respective Interests in the Property on a monthly basis; provided, however, that the Managing Owner shall be entitled to maintain reasonable reserves for any future anticipated expenditures related to the ownership of the Property. (b) Refinancing proceeds shall be distributed to the Owners in accordance with their respective Interests in the Property; provided, however, the Managing Owner shall be entitled to retain on behalf of the Owners the following refinancing proceeds: (i) such portion of the refinancing proceeds as the Owners of a majority of the Interests in the Property deem necessary for capital improvements to the Property, and (ii) such portion of the refinancing proceeds as may be necessary to establish reasonable reserves for anticipated future -7- 15-380 expenditures of the Owners. (c) Net proceeds from the sale of the Property shall be distributed to the Owners in accordance with their respective interests in the Property. Net proceeds from the sale of the Property shall be defined as the gross proceeds from the sale of the Property, less (i) all costs associated with such sale, (ii) payment of any encumbrance against the Property (unless assumed by the buyer with seller released from liability thereon), (iii) payment of any other expenses related to ownership of the Property, and (iv) reasonable reserves for the payment of any future expenses related to the Property anticipated by the Managing Owner, during the one (1) year following the sale of the Property. The Managing Owner shall account for and distribute such reserve to the Owners within one (1) year following the sale of the Property, except to the extent that such reserve is still required to be maintained for a specific, then readily identifiable reasonably anticipated future expense. in the event the Managing Owner retains such reserves for a period in excess of 12 months for such specific purpose, such reserve shall be accounted for and distributed as soon as reasonably possible following satisfaction or elimination of the obligation for which the reserve was created. (d) Notwithstanding Section 8(a), Section 8(b) and Section 8(c) to the contrary, (i) cash that would otherwise be distributed to an Owner shall instead be distributed to the other Owners to the extent provided in the Promissory Note, or to otherwise discharge all obligations of a Defaulting Owner under Section b above and (ii) the reserves retained under Section 8(a), Section 8(b) and Section 8(c) above shall not exceed $100,000 in the aggregate, without the prior written consent of the Owners of a majority of the Interests in the Property, 9. BOOKS AND RECORDS. Such books of account and records as are maintained by or for the Property shall be kept at the principal business office of the Managing Owner and be open to inspection by any Owner or accredited representative of any Owner, at a reasonable time upon reasonable advance notice. 'Each Owner shall have the right to make a separate audit of such books and records of the Property at such Owner's own expense; provided, however, if the audit is requested by Owners of at least fifty percent (50%) of the Interests in the Property, the audit shall be at the expense of all of the Owners. 10. CONTINUATION. The bankruptcy, foreclosure, tax lien, attachment or execution of judgment or other involuntary lien, insanity, disability, distribution, death or dissolution of or against an Owner shall not terminate the effects of this Agreement. Upon such an occurrence, the Interest in the Property of such Owner shall become vested in the guardian, administrator, executor, tnistee, other legal representative or person or entity - entitled to the Interest in the Property of such Owner, who shall acquire all of the rights and -8- 15-381 obligations provided in this Agreement and shall be subject to and bound by all of the terms and conditions of this Agreement; provided, however, in the case of involuntary liens, attachments, judgments or executions that such legal representative or person or entity shall be entitled only to receive distributions on account of such Interest in the Property as provided for in Section 8 above and shall have no management or other decision malting authority. 11. INCOME TAR CONSEQUENCES. Each.Owner acknowledges that the tax consequences of an investment in the Property is a matter upon which such Owner's own personal tax adviser must conclude. Each Owner shall bear the income tax consequences of such,Owner's interest in the Property, which may be different than (i) such Owner's pro rata share of the purchase price of the Property as a result of the effects of a.carryover basis in the Property, or (ii) such Owner's actual share of the cash distributions from the Property. 12. . TENANCY IN COMMON - NOT A PARTNERSHIP. Each Owner agrees that the Ownership of the Property is a tenancy in common and not a partnership. Each Owner agrees to remain excluded from all of the provisions of Subchapter K of Chapter 1 of the Internal Revenue Code of 1986, as amended. Each Owner hereby covenants and agrees that each Owner shall report on such Owner's respective Federal and State income tax return, such Owner's respective share of items of income, deduction and credit which results from holding of its Interest in the Property, in a manner consistent with a tenancy in common commencing with the taxable year of the acquisition of the Property. No Owner shall notify the Commissioner of Internal Revenue (the "Commissioner") that such Owner desires that the Owners be treated as a partnership and that Subchapter K of the Code applies. Each Owner hereby agrees to indemnify and hold each other Owner free and harmless from all cost, liability, tax consequence and expense, including attorneys fees, which results from any Owner so notifying the Commissioner. 13. TERMINATION. This Agreement shall be immediately terminated upon the happening of any of the following events: (a) The sale or other disposition of all of the Property. (b) The unanimous decision of the Owners that this Agreement be terminated, in which event the Owners shall hold the Property as tenants in common and shall be governed by the laws of the State of California. (c) The purchase by one Owner of all the Interests of the other Owners in the Property. I Us 15-382 14. ONION TO PURCHASE. (a) If an Owner desires to seR its Interest in the Property or a portion of its Interest in the Property, O Hill and its successors, as consideration for its role in the acquisition of the Property, shall have a first right to purchase all or a portion of such Interest in the Property. A selling Owner shall notify O Dill in writing of the portion of the Interest selling Owner desires to sell and selling Owner's desired price for such Interest. O Hill shall have thirty (30) days from the date it receives proper written notice to notify selling Owner that it will purchase all or a specific portion of the Interest being offered for sale by selling Owner. 0 Hill and selling Owner shall meet and try to agree on a purchase price. If, after thirty (30) days, O Hill and selling Owner are unable to agree on a purchase price then, at their expense, each will retain an MAI appraiser to appraise the entire Property without discount for partial ownership subject to all non monetary encumbrances thereof, including but not limited to any ground lease of the Property, based upon the highest and best use reasonably available for the Property. Such appraisals shall be completed within sixty (60) days and exchanged between the parties. If the values of the two MAI appraisals are within five percent (5 %) of each other, using the larger number as the denominator, the appraised value of the entire Property shall be an average of the two appraisals, less three percent (3 %). If the two MAI appraisals are not within five percent (5 %) of each other then the two (2) designated appraisers shall agree upon and retain a third appraiser who will be given the completed appraisals and all appropriate back-up valuing information and such third appraiser shall first attempt to mediate a compromise value between the three (3) appraisers. If the compromise value cannot be reached between the three (3) appraisers within thirty (30) days then the third appraiser shall reach a conclusion as to value (which shall be not less than the lower of the two (2) appraisals, and no greater than the higher of the two appraisals) and the two closest conclusions as to value shall be averaged and the average, less three percent (3%) shall be deemed the appraised value of the entire Property. The purchase price shall be such appraised value times the ownership Interest percentage being sold, less the selling Owner's prorata share of any Collective Liens. The purchase shall be completed on or before one hundred and twenty (120) days after the purchase price is finally determined. The Interest being sold shall be delivered free and clear of all liens (except the Collective Liens). Any Interest of the selling Owner not purchased by O Hill may be purchased on the same basis by the other Owners. Such other Owners shall elect to purchase such interest within ten (10) days after being advised in writing of the amount of the above determined purchase price. If the other Owners elect to purchase in the aggregate more than the Interest being offered, each Owner may purchase the portion of the Interest so offered as agreed upon by the other Owners desiring to purchase a portion of the offered Interest, and absent an agreement reached between them, each may purchase a percentage of the remainder of the Interest which the -10- 15-383 amount offered to be purchased by an Owner bears to the amount offered to be purchased by all Owners, but not less than that portion of the remainder of the interest offered which the then Interest of such Owner bears to the then Interests of all Owners electing to purchase such remainder. Any interest not purchased by an Owner may be sold to a third party reasonably approved by the Managing Owner. If such sale does not occur within one (1) year after the purchase price is determined, the sale shall again be subject to the above provision. (b) The following transfers ("Permitted Transferee") shall not be subject to the provisions of Section 14(a) above: (i) A transfer to any lineal descendent of a current trustee or general partner of one of the Owners; (ii) A transfer to a trust for the benefit of any lineal descendent of a current trustee or current general partner of any of the Owners; (iii) A transfer to any successor trustee or distribution to a beneficiary,, where one of the current Owners is a trust; and (iv) A transfer to any partner or group of partners who consist of one of the current existing partners of an Owner, where such Owner is a partnership. (c) The rights of O Hill and its successors under Section 14(a) above shall expire upon the sale of the Interest of O Hill to a person or entity in which O Hill, or a Permitted Transferee of O Hill, has no interest. 15. NOTICES. All notices under this Agreement must be in writing and shall be deemed to have been duly given if delivered personally or mailed, postage prepaid, by certified United States mail, return receipt requested, addressed to the Owner to be notified. Such notice shall be deemed to have been given as of the date. so delivered, if delivered in person, or upon deposit thereof in the United States mail. For the purposes of notice, the addresses of the Owners until changed as hereinafter provided, shall be as set forth in Exhibit "B" attached hereto. Each Owner shall have the right to change the address to which notice to such Owner is to be given by giving written notice thereof to all other Owners. Managing Owner shall maintain a current list of each recognized. Owner of the Property (as described in Section 19 below), and the address and percentage interest owned by each such Owner. Managing Owner shall provide such information to any Owner upon written request to do so. 16. UNENFORCEABLE TERMS. In the event that any provision of this Agreement shall be unenforceable or inoperative as a matter of law, the remaining provisions shall remain in full force and effect. 17. TIME OF ESSENCE. Time is the essence of this Agreement and the -11- 15-384 provisions contained herein and each and every provision hereof. 18. AMENDMENTS. This Agreement may be amended. only by a written amendment signed by all Owners whose signatures shall be notarized and recorded in the . County of Orange. Any amendment or modification of this Agreement shall be dated, and if any conflict arises between the provisions of said amendment or modification and provisions incorporated in earlier documents, the most recent provisions shall be controlling. 19. BINDING EFFECT. This Agreement shall inure to the benefit of and shall be binding upon the Property and the Owners and their respective heirs, successors, legal representatives and. assigns. Each subsequent Owner of a portion of the Property shall be bound by the provisions hereof as if such subsequent Owner had assumed this Agreement. No subsequent Owner need be recognized as such until such subsequent Owner has given each other Owner written notice of the acquisition of such interest in the Property by such subsequent Owner pursuant to the notice provisions of Section 15 above, which each Owner and each subsequent Owner agrees to do or cause to be done. 20. ENTIRE AGREEMENT. This Agreement contains the entire agreement between the Owners and supersedes any prior or concurrent written or oral agreement between said parties concerning the subject matter contained herein. There are no representations, agreements, arrangements or understandings, oral or written, between or among the Owners relating to the subject matter contained in this Agreement, which are not fully expressed herein. 21, GENDER. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the person, persons, entity or entities may require. 22, CAPTION HEADINGS. Captions at the beginning of each numbered Section of the Agreement are solely for the convenience of the parties and shall not be deemed part of the context of this Agreement. 23. NEGOTIATED TRANSACTION. The provisions of this Agreement were negotiated by all of the parties hereto and said Agreement shall be deemed to have been drafted by all of the parties thereto. 24. FURTHER ASSURANCES. Each Owner hereby agrees to promptly sign any -12- 15-385 additional instruments or documents which are necessary or appropriate to carry out the intent and purpose of this Agreement. 25. SPOUSES. Some of the Owners are married and may in the future take title to an Interest in the Property with their respective spouses (the "Married Owners"). For the protection of the remaining Owners, any interest in the Property held by Married Owners shall be deemed to be held by the husband, as to an undivided one-half (x/2) interest and by the wife, as to an undivided one-half (112-) interest. For the purpose of voting upon any issue upon which the Owners may vote pursuant to the terms and conditions of this Agreement, the husband and wife shall each be deemed to own an undivided one-half (�A) interest in the interest of such Married Owners. Each Married Owner acknowledges and agrees that he/she shall do nothing to impede or impair the rights of the other Owners in an attempt to gain leverage upon his/her spouse. In the event an Owner takes title to an Interest in the Property solely in their name, they shall obtain and record a quitclaim deed from their respective spouses so that the Owner in whose name the interest in the Property is held shalt have the right, power and authority to deal with the Property alone and without the consent of his/her spouse. In the event that any such Owner fails to obtain such quitclaim deed and damages result to the remaining Owners, such Owner who so fails to obtain such quitclaim deed shall be liable for the resulting damages. 26. ARBITRATION OF DISPUTES: ALL DISPUTES ARISING UNDER THIS AGREEMENT WILL BE RESOLVED BY SUBMISSION TO ARBITRATION AT THE ORANGE COUNTY OFFICES OF JUDICIAL ARBITRATION & MEDIATION SERVICES, INC. ("TAMS") FOR BINDING ARBITRATION. THE PARTIES MAY AGREE ON A RETIRED MOB FROM THE YAMS PANEL. IF THEY ARE UNABLE TO AGREE, JAMS WILL PROVIDE A LIST OF THREE AVAILABLE JUDGES AND EACH PARTY MAY STRIKE ONE. THE REMAINING JUDGE WILL SERVE AS THE ARBITRATOR AT THE ARBITRATION HEARING. THE PARTIES AGREE THAT ARBITRATION MUST BE INITIATED WITHIN ONE YEAR AFTER THE CLAIMED BREACH OCCURRED AND THAT THE FAILURE TO INITIATE ARBITRATION WITHIN THE ONE-YEAR PERIOD CONSTITUTES AN ABSOLUTE BAR TO TIM INSTITUTION OF ANY NEW PROCEEDINGS. THE AGGRIEVED PARTY CAN INITIATE ARBITRATION BY SENDING WRITTEN NOTICE OF AN INTENTION TO ARBITRATE BY REGISTERED OR CERTIFMD MAIL TO THE OTHER PARTY AND TO JAMS. THE NOTICE MUST CONTAIN A DESCRIPTION OF THE DISPUTE, THE AMOUNT INVOLVED, AND THE REMEDY SOUGHT, IF AND WHEN A DEMAND FOR ARBITRATION IS MADE BY EITHER PARTY, THE PARTIES AGREE TO -13- 15-386 EXECUTE A SUBMISSION AGREEMENT, PROVIDED BY JAMS, SETTING FORTH THE RIGHTS OF THE PARTIES IF THE CASE IS ARBITRATED AND THE RULES AND PROCEDURES TO 13B FOLLOWED AT THE ARBITRATION HEARING. THE ARBITRATOR SHALL, AT THE MOTION OF A PARTY, PERMIT AND ORDER SUCH DISCOVERY ON THE PART OF SUCH PARTY AS HE DETERMINES TO BE REASONABLE AND APPROPRIATE TO THE DISPUTE BEFORE HIM. NOTWITHSTANDING THE ABOVE, AT LEAST TWO WEEKS PRIOR TO THE ARBITRATION, EACH PARTY MUST MAKE A FULL DISCLOSURE TO THE OTHER PARTY OF (i) ALL DOCUMENTS TO BE PRESENTED BY SUCH PARTY AND (ii) ANY WITNESSES TO BE CALLED BY SUCH PARTY. NOTHING IN THIS PARAGRAPH SHALL IN ANY WAY LIMIT OR OTHERWISE RESTRICT A PARTY' S RIGHT OR ABILITY TO OBTAIN INJUNCTIVE RELIEF OR APPOINTMENT OF A RECEIVER THROUGH THE COURT SYSTEM. NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN COURT OR JURY TRIAL. BY Mln4LING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, EXCEPT AS PROVIDED HEREIN, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALWORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBI RATION OF DISPUTES" PROVISION TO NEUTRAL ARBITRATION. O Hill: L2mrzi TFT: f ' 1 Mesa -East: 145K- I I Ef: — } Mira Mesa West f &2 [ ]' NBCC Ltd: 27. COST OF ENWRCE VIENT. Should any dispute arise between the parties hereto or their legal representatives, successors or assigns concerning any provision of this -14- 15-387 Agreement or the rights and duties of any person in relation thereto, the party prevailing in such dispute shall be entitled, in addition to such other relief that may be granted, to reasonable attorneys fees and legal costs in connection with such dispute. For purposes of this Paragraph, a dispute shall include, but not be limited to, an arbitration proceeding or a court action for injunctive relief. 28. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California and the venue for any dispute shall be Orange County, California. EXECUTED as of March 0f994, at Newport Beach, California. Owners: O MU Properties, a California limited partnership By: / r Robert O U 1, its General Partner The Fainbarg Trust, dated April 19, 1982 By: ON- t Allan Fain arg, TMstee Newport Beach Country Club, a California limited partnership By: O Hill Properties, a California limited partnership Its General Partner $Y f�- . � Robert �WFM - General Partner -15- Mesa Shopping Center -East A California General Partnership By:-..Q.,Q Arnold D. Feuerstein Managing General Partner By: Elliot Feuerstem. Managing General Partner Mira Mesa Shopping Center -West A California General Partnership BY:• --- Arnold D. Feuerstein Managing General Partner Elliot Feuerstein Managing General Partner 15-388 STATE OF CALIFORNIA COUNTY OF ORANGE On elkiE1'4 ', 1 `i'1 , before me a Notary Public in and for said County and State, personally appeared Robert O Hill, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal. Lary Public in and or sai@ County acid State STATE OF CALIFORNIA COUNTY OF ORANGE YVONNi N. RiTCHOT z ? t COM #055585 z z ,p Notary Pobric calilotnta ORANGE COUNTY tornm exphes FED 09,1906 On before me a Notary Public in and for said County and State, personally appeared Allau Fainbnally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal N in and for said County a d State -16- 1 8Wt*MM'0XP1r09FE609 B iCNE N. RI coMu. #M585 a Z Notary PubliaCWtMia R ORANGE COUNTY 49�]r r"'� 15-389 STATE OF CALIFORNIA COUNTY OF ORANGE On �7744e k � /991� , before me a Notary Public in and for said County and State, personally appeared Robert 0 Hill, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal. Lary Public in and for said County and State STATE OF CALIFORNIA COUNTY OF ORANGE `YVONNE N. RITONQT comm, #953895 •'o NOLW PubBo- Noma ORANGE COUNTY hfy comm. erpkm FEB 09,1M On di � 95/ , before me a Notary Public in and for said County and State, personally appeared Arnold D. Feuerstein, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State STATE OF CALIFORNIA COUNTY OF ORANGE SI./!✓YlIlfr/Crl1,�II1f �iJJSt INC SORMUOUMy T I 5 ! On IeAdAm f / y yV, before me a Notary Public in and for said County and State, personally appeared Elliot Feuerstein, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State -17- Sr./y✓-�^✓r✓./Y.r✓� 1.�` ma's .irr , 15-390 STATE OF CALIFORNIA COUNTY OF ORANGE On , before me a Notary Public in and for said County and State, personally appeared Arnold D. Feuerstein, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State STATE OF CALIFORNIA COUNTY OF ORANGE On , before me a Notary Public in and for said County and State, personally appeared Elliot Feuerstein, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State -18- 15-391 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY Parcel Y: That portion of Block 93 of Irvine's Subdivision in the City of Newport Beach, County of Orange, State of California, as per Map recorded in Book 1 Page 88 of Miscellaneous Maps in the Office of the County Recorder of said County described as follows: Lot A as shown on that certain Parcel Map filed October 10, 1967 in Book 10 Page 20 of Parcel Maps in the Office of the County Recorder of said County, and Parcels 1, 2 and 3 as shown on that certain Parcel Map filed February 11, 1977 in Book 92 Pages 13 and 14 of Parcel Maps, in the Office of the County Recorder of said County. Parcel 2: As easement for ingress and egress over the most Southerly 190.00 feet of Parcel 1, in the City of Newport Beach, County of Orange, State of California, as shown on that certain Parcel Map filed October 10, 1967 in Book 10 Page 20 of Parcel Maps, in the Office of the County Recorder of said County. 15-392 EXMIT "B" OWNERSHIP INTEREST IN THE PROPERTY Name and Address of Owner Interest in property Allan and Sara Fainbarg, Trustees 25% of The Painbarg Trust dated April 19, 1982 890 W. Baker Costa Mesa, CA 92626 Mesa Shopping Center -East 15 % c/o Arnold Feuerstein 2293 W. Ball Road Anaheim, CA 92805 Mica Mesa Shopping Center -West 10% clo Arnold Feuerstein 2293 W. Bail Road Anaheim, CA 92805 With a copy of any notices to: Mesa Shopping Center -East c/oElliot Feuerstein 8294 Mira Mesa Blvd. San Diego, CA 92126 Newport Beach Country Club 25 % One Upper Newport Plaza Newport Beach, CA 92660 Attn: Robert O Hill O Hill Properties 25 % One Upper Newport Plaza Newport Beach, CA 92660 Attn: Robert O Hill 15-393 FOR VALUE RECEIVED, to PROMISSORY NOTE Newport Beach, California ("Maker") hereby promises to pay , or order ("Holder"), at or such other place or places as may be designated by Holder from time to time, the sum of payable as specified herein. This Promissory Note ("Note") shall bear interest at the prime commercial lending rate of Bank of America, plus two and one half percent (21h %) per annum but not to exceed the maximum rate allowed by law. This Note shall be due and payable on or before the date which is two (2) years from the date of this Note. Maker and Holder intend that this Note shall be recourse to Maker. However, it is Maker's and Holder's intention that Holder's first recourse shall be against the proceeds that would be otherwise payable to Maker as a result of Maker's ownership of an undivided % interest in certain real property commonly known as The Newport Beach Country Club, and legally defined in any Deed of Trust with Assignment of Rents encumbering such real property as security for this Note ("Property"). As a credit against sums owed by Maker to Holder, Holder shall be entitled to receive 100% of the cash distributions which would otherwise be distributed to Maker as a result of its ownership interest in the Property, up to an aggregate sum equal to the principal amount of this Note ($ ) plus accrued interest. Maker hereby agrees to pay all costs and expenses, including reasonable attorneys fees, incurred by Holder and arising out of or related to the collection of any amounts due hereunder or the enforcement of any rights provided for herein, or in any other instrument now or - hereafter securing Maker's obligations under this Note, whether or not suit is filed. Maker waives all rights of set-off, deduction and counter claim with respect to this Note. Any amount which Maker contends are owed by Holder shall be sought by independent action. To The extent permitted by applicable law, the defense of any statute of limitations is hereby waived by Maker. This Note shall be governed by and construed in accordance with the laws of the State of California. This Note is secured by a Deed of Trust with Assignment of Rents, encumbering Maker's ownership interest in the Property, executed by Maker for the benefit of Holder. 15-394 From: pmchrist@earthlink.net Sent: September 12, 2022 11:35 AM To: Lee, David Cc: Mark Susson Subject: Need for Pickleball restrictions - The Tennis Club at Newport Beach Importance: High [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Hello David, Following the Sept 8 2022 Planning Commission meeting, I thought it appropriate to provide scope to my request that the Tennis Club at Newport Beach install a Sound Blanket around the perimeter of the courts similar to or more dense than what has been installed at the Pickleball Courts at the city's Bonita Canyon Sport Park. I visited the Bonita Canyon Sports Park over the weekend and noted that the Sound Blanket protects the closest residences that are +/- 300 feet away from the Pickleball Courts. By comparison, the closest Granville residence is +/- 75 feet away from the Pickleball Courts at the Tennis Club at Newport Beach, 1602 E Coast Highway. My impression of the Planning Commissioners comments at the Sept. 8 2022 hearing is that there appears to be universal concern by its members relative to the noise generated by and at the Pickleball courts both from the sounds emanating from the pickleball racket impacting the pickleball and the amplified microphone, music, blaring announcements, and the like that I and fellow Granville resident Mark Susson spoke of at the Sept. 8 2022 meeting. Please keep me posted on what I suggest are needed additional impositions on the Golf Realty Fund's application regarding the additions to the Tennis Club at Newport Beach's site, to be considered at the N.B. City Council Sept. 27, 2022 meeting. Thank you, Paul Christ 949-212-8426 15-395 From: Sent: To: Cc: Subject: Attachments: Importance: FYI Lee, David September 08, 2022 4:52 PM Rodriguez, Clarivel Campbell, Jim; Jurjis, Seimone FW: Emailing: Stu Newport News-07-12-2022 - The Tennis Club at Newport Beach Stu Newport News-07-12-2022 - The Tennis Club at Newport Beach.pdf High -----Original Message ----- From: pmchrist@earthlink.net <pmchrist@earthlink.net> Sent: September 08, 2022 4:47 PM To: Lee, David <dlee@newportbeachca.gov> Subject: Emailing: Stu Newport News-07-12-2022 - The Tennis Club at Newport Beach Importance: High [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Hello David, Attached is an article published in the "Stu News Newport" indicating that Golf Realty Fund is intending to add one additional tennis court thus totaling eight courts vs. the previously planned seven. The Article also discusses the Tennis Club at Newport Beach's plans to add additional Pickleball Courts up to a maximum of 50 courts. It thus appears that the Golf Realty Fund's application purposely ignored mentioning the retention of existing people courts and the plan to add additional courts? As a citizen (taxpayer) of Newport Beach CA I consider the Golf Realty Fund's Application incomplete. Perhaps the Planning Commission can briefly review this material prior to the September 8, 2022 meeting? Thank you, Paul Christ 15-396 Front Page Philanthropy Letters Archives Sign Up Contact Us Stu News Laguna i'L Newport Beach 90.1OF Search our site... Search Fair Game By TOGA JOHNSON The news appears very good for local plckleballers Last week we were left questioning what was going on locally with The Tennis & Pickleball Club at Newport Beach. There was momentarily a concern that the club, arguably the largest pickleball club in the world, was in some type of jeopardy. Absolutely not true, especially if landowner/managing partner Robert O Hill and TTPC owner Sean Bollettieri-Abdali have anything to say about it. First, O Hill took me step-by-step through his elaborate plans to basically re -develop the entire site into the Newport Beach Country Club Planned Community District. It's impressive! The plan continues to build on the pickleball sensation, with 26 courts and the ability to easily expand to 30. Included in that are two new pickleball stadium courts. And to not disappoint tennis players, the plan expands the tennis courts footprint from seven to eight courts. Other highlights include a new clubhouse, a wonderful fitness facility, complete with spa, a lap -pool, and, are you ready for this, bungalows for short-term stays, penthouse suite lofts, complete with elevated ocean views, condos and a hotel. Some of those units encroach on land closer to the golf course but in no way close to interfere with play or change the layout. O Hill touted the fact that the new additions would bring in some $1.5 million in tax revenue to the city and additionally offer marquee players a unique place to stay when coming to town for a golf tournament at nearby Newport Beach Country Club or for onsite tennis and pickleball events. E 15-397 Click on photo for a larger image Courtesy of Robert O Hill & Stearns Architecture Proposed master site plan for the Newport Beach Country Club Planned Community District Click on photo for a larger image Courtesy of Robert O Hill & Stearns Architecture The proposed spa/fitness area When the subject of possibly turning the club in to something else came up, O Hill clearly stated that he's "a steward of community" and "feels a responsibility" to uphold the best facilities for golfers, pickleballers and tennis players alike. O Hill holds the land lease under Newport Beach Country Club, hence his interest in golf, too. Bollettieri-Abdali is excited, too, but in fairness to him, cautiously optimistic about the future. First, let me explain the "cautiously optimistic" part. Sean admits he's on "a short-term lease" which is never a perfect situation, but O Hill, in his address to the members last Thursday, said that Boll ettieri-Abdali is the person he wants and plans to move forward with long-term. He also reiterated that to me several times. Bollettieri-Abdali, in fact, told me that he has an agreed upon 75-year lease on the table waiting approval by O Hill's "other partners," who at this point seem to have a dysfunctional relationship across the owner's group, which Sean calls unfortunate. Sean told me his agreement was submitted last December, but to this point it's been crickets. While he's waiting, Bollettieri-Abdali has other, bigger plans. Try a major league professional pickleball team, perhaps the Newport Beach Crashers, taking shape. Other cities, too, are in the developmental stage. To his credit, he can get things done. When he arrived eight years ago to assume control of the facility it had 97 members and virtually too many unused courts. It also had rundown facilities. He told me he personally reworked virtually every corner of the facility to bring it back to life. And despite the rumored 1,800 members claimed last week, Sean says the real number, counting a number of younger people that play, is more in the 1,300 range. 15-398 His one parting comment to me was that he hopes to sit down with 0 Hill's partners (Elliot Feuerstein and Irving Chase) and "break bread," discussing what their interests and concerns are, to once and for all get the long-term lease finalized. For 0 Hill, he's already gone through a number of plans checks, spending much of the last nearly 20 years getting all approvals through with the city for this project. He hopes to be in front of the city come September for permits This from the City of Newport Beach, the Utilities Department is geared up for the King tides, a series of some of the highest tides of the year. Even though no rain is forecasted, city crews have placed sandbags in strategic areas on the Peninsula and Balboa Island. Also, staff has installed the stop gap boards on the south side seawall of Balboa Island. Each night, dozens of staff will be mobile with truck -mounted pumps to pump the seepage in the streets created by the King tides' height and resulting pressure. The tide heights for the week are: Tonight, (Tuesday) July 12, a peak of 7.2 ft. at 8:40 p.m., Wednesday, July 13, a peak of 7.3 ft. at 9:29 p.m., Thursday, July 14, a peak of 7.1 ft. at 10:18 p.m. and Friday, July 15, a peak of 6.7 ft. at 11:08 p.m. (Measurements are in mean lower low water and actual tide heights are expected to be six to 12 inches higher than predicted.) a.. Newport Beach Fire Chief Jeff Boyles and Fire Marshall Kevin Bass will be the featured speakers at the Corona del Mar Chamber of Commerce's Good Morning CdMI, on Thursday, July 14 from 8-9:30 a.m. Click on photo for a larger image Courtesy of CdM Chamber of Commerce The topic is Summer Fire Prevention, Protection & Preparedness. The meeting, planned for the Bahia Corinthian Yacht Club, will also offer complimentary coffee and pastry, There is no fee and no RSVP is required to attend. Good Morning CdM!, a community government affairs discussion group, is the Chamber's monthly meeting connecting residents with important current community topics and also with legislative updates from the offices of local representatives. Expected to be on hand will be Newport Beach City Councilmember Joy Brenner, a local representative from congresswoman Michelle Steel's office, Assemblywoman Cottie Petrie -Norris and OC Supervisor Lisa Bartlett. The Bahia Corinthian Yacht Club is located at 1601 Bayside Drive, Corona del Mar. aam The Balboa Island Museum is hosting a Speaker Event this Thursday, July 14 at 6 p.m. with Catalina Museum for Art & History Deputy Director and Chief Curator Johnny Sampson. Johnny will discuss the history of Catalina Island and the historic landmarks therein. For tickets, go here. Front Page Who we are: Shaena Stabler, President & CEO - Shaena@StuNewsNewport.com Philanthropy Lana Johnson, Editor - Lana@StuNewsNewport.com Letters Tom Johnson, Publisher -Tom@StuNewsNewport.com Archives Amy Senk, Duncan Forgey, Len Bose, Nancy Gardner and Sara Hall are our writers and/or columnists. Sign Up Michael Sterling is our Webmaster & Designer. Contact Us Email: Shaena@StuNewsNewport.com for questions about advertising Stu News Laguna 949.315.0259 Email 10"=6VlCt11NhQ%nlcnlciernnrt nnm with rMIA/C r1M1=0Q=C lottere atr 15-399 From: Phoebe Loos <stayloos@cox.net> Sent: September 29, 2022 9:53 PM To: Sommers, Brad; Jurjis, Seimone; murray@newportbeachca.gov; Lee, David Cc: 'Mark Susson'; John French; pmchrist@earthlink.net Subject: RE: Pickleball [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. I would like to add to what Mark is saying. I have lived on Granville for 22 years. The pickleball facility is a terrible neighbor, and in fact, has negatively impacted the life of those of us in this area (not just Granville) in the following ways: 1. Club manager Sean Ballesteros personally promised me a few months ago he would install speed bumps to try and control the dangerous situation of pickleball players coming into and out of the Club at excessive speed without looking to see if someone is driving down Granville. There have been multiple near collisions. Nothing effective has been done by the Club to remedy this situation. The recent grant of a wine/beer license will only make matters worse. 2. As stated below by Mark, the noise from the sport itself, from the players cheering, and from the loudspeakers during tournaments is unreasonable in a facility literally within a few feet of homes. 3. The club has made no effort to maintain even minimally acceptable landscaping around the clubhouse and parking lot. An old, unsightly, Pizza van has been parked there continuously for months if not years. At times trash is piled 3 or 4 feet high in the corner next to the dumpster. Many areas have simply been allowed to go to weeds, which are chopped to the ground every six months or so. 4. Sean told me it is his goal for his club to host national pickleball tournaments. Even the local ones involve cars parked on curbs, in the weeds, in the red zones, spilling out onto Granville and the parking lot for the office buildings. Where is he going to put the cars from even larger tournaments? In short, a Club being managed as this one is does not belong in a residential neighborhood. There needs to be immediate traffic control, sound attenuation, 15-400 parking enforcement, and landscaping consistent with what is seen in the rest of this well cared for area. I would respectfully ask the City to support the residents who have made their homes here. Phoebe Loos 1105 Granville Drive Newport Beach, CA 92660 949 644 4146 From: Mark Susson <mark@sussonlaw.com> Sent: Wednesday, September 28, 2022 9:33 AM To: John French<iohn@frenchassetmanagement.com>; Loos Phoebe <stayloos@cox.net>; paul christ <pmchrist@earthlink.net> Subject: Fwd: Pickleball My correspondence to and from the City this morning. Sent from my iSus iPhone Mark Susson Attorney Susson Law 2 Corporate Plaza Drive Suite 275 Newport Beach, CA, 92660 (949) 706-6900 office Marl<(@sussonlaw.com PLEASE NOTE NEW FIRM NAME, NEW TELEPHONE NUMBER AND NEW EMAIL ADDRESS EFFECTIVE IMMEDIATELY Begin forwarded message: From: "Jurjis, Seimone" <sluriis@newportbeachca.gov> Date: September 28, 2022 at 9:28:38 AM PDT To: Mark Susson <mark@sussonlaw.com> Cc: "Murray, John" <jmurray@newportbeachca.gov>, "Lee, David" <dlee@newportbeachca.gov> Subject: RE: Pickleball Hi Mark, Thanks for reaching out. You bring up some good points. I'm copying John Murray, who 15-401 is the City's Code Enforcement Supervisor. He is meeting with the club membership and will be discussing these complaints as well as other issues that have come up. We are going to work with the club to get them back as good neighbors to the community. Please continue to work with John as we move forward. Thanks SEIMONE JURJIS, P.E., C.B.O. Community Development Department Community Development Director siuriis@newportbeachca.gov 949-644-3282 -----Original Message ----- From: Mark Susson <mark@sussonlaw.com> Sent: September 28, 2022 9:22 AM To: Jurjis, Seimone <siuriis@newportbeachca.gov> Subject: Pickleball [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Thanks for allowing me to contact you directly. I have been a resident of Newport Beach since 1968. 1 attended CDM high school, UC Irvine, and Loyola law school. My wife and I are both practicing attorneys in the area. For many years, my family was a member of the Balboa Bay Club and the Balboa Bay Tennis Club. In the late 60s through the late 70s, my family lived at Granville. I think we were one of the first few residents to move in when they were built in 1969. When I went off the law school in 1979, my parents moved to the other side of the bay. After raising our children in Irvine, my wife and I moved back to Granville in 1997. We have been there ever since. Both of us have served lengthy periods on the Granville board. Since 1997, we have been members of the Newport Beach Country Club. I sat through both the planning commission meeting and the city council meeting within the last 60 days. These were my first meetings of this kind. Frankly, I was a bit concerned that the plans submitted never even mentioned Pickleball and I was wondering if the developer was trying to do an end run. At the end of the day, it appears that the city council was well aware of what was going on and I think made the right decision. While I do not know Mr O'Hill, I have been friends with the Chase Family for many, many years. I have the utmost respect for the Chases. Against all that background, please allow me to offer you a few thoughts. At the end of the day, I think that there will be pickleball courts, in one form or another, on the subject property. I am hoping that with appropriate safeguards the residents of 15-402 Granville and the members of the country club and the members of the pickleball courts can peacefully co -exist. Having said that, here are the issues that I think need to be addressed: One. There needs to be some type of sound attenuation material used on all of the fencing. I believe the city has done this at the Bonita Canyon courts and the current operator has promised for years now that he was going to do the same. That has never happened. I think the sound issue needs to be dealt with immediately, presumably with the help of sound experts. Two. The city needs to analyze the hours of operation of the club. Currently, I believe play begins before 8 AM and I know that play continues well past 8 PM. I believe the city courts close at dusk which is about 7:20 PM or thereabouts. The hours of operation are impacted directly by the sound issue so my guess is the hours of operation may be a moving target if the proper safeguards are taken with regard to sound. Three. When the tennis club was built, I believe there were 24 tennis courts. I suspect that one half of those courts were used for doubles and one half for singles. Now, depending upon who you believe, I think we have approximately 40 Pickleball courts, mostly taken by doubles, and the amount of people using the courts has increased probably three or four fold. I believe this has led to a serious parking issue. The current operator does not maintain the parking lot in a very safe condition and on numerous occasions there have been cars parked along the curb, even adjacent to painted red curbs. I myself have called the police on numerous occasions because the lawyer in me believes that an emergency situation could give rise to real problems with cars parked everywhere resulting in serious injury. Four. From time to time, there are lighting issues as the current operator has installed lights which shine directly down the ninth fairway of the golf course and anyone at Granville sitting on their patio will find themselves looking into a bright light (presumably LED) and frankly, once you see it, that's all you see. This is especially true in the summer months when many people eat outside on the patio. I called the current operator several times and he advised me that this was not his light. Only after repeated calls did he apparently learn for the first time that it was his light and apparently he had it repositioned. Five. The public address system at the courts is very loud. There have been countless mornings where, during a tournament, I can hear every announcement for every individual who will soon be defaulted if they do not show up on a specific court. Keep in mind my unit is 1047 and we are halfway up the block. I can only imagine what it sounds like in the units closer to the courts. Six. The people accessing the Pickleball courts from Civic Center Dr. or Newport Center Drive seem to pull onto Granville and make a straight beeline to the parking lot without ever looking for people exiting Granville. I understand there has been at least one collision and perhaps more. This is clearly an accident waiting to happen. I believe there needs to be a stop sign at the exit from the pickleball parking lot onto Granville, if not a stop sign and a speed bum. I spoke with the city traffic department some weeks ago 15-403 and was told that they would consider painting an extension on the double yellow line, that leads from Newport Center Drive to just in front of the bank, to keep that line going until it reaches the guard house. The hope is that the line would alert people coming across Newport Center Drive onto Granville and into the parking lot of the fact that Granville is a active street with two way traffic. Having played tennis at the club for years, having played racquetball at the Newport Beach Athletic Club for many, many years and now as a Pickleball player, I am certainly familiar with the difference between the various games. Pickleball is not tennis. The biggest issue we all need to face is the sound created by contact between the ball and the paddle. Clearly, this is not a new issue to the city as I have been following, to some extent, the litigation over at the San Joaquin courts. We have sound issues, we have traffic issues, we have hours of operation issues, lighting issues, etc. We also have mega tournaments at the site. The operator admitted at the planning commission meeting that these tournaments belong at a tournament facility like Indian Wells. I could not agree more. All I want at the end of the day is to make sure that the operator of the courts is a good neighbor. To date, that has not been the case. I am happy to help the City in any way I can. Sent from my iSus iPhone Mark Susson Attorney Susson Law 2 Corporate Plaza Drive Suite 275 Newport Beach, CA, 92660 (949) 706-6900 office Mark@sussonlaw.com PLEASE NOTE NEW FIRM NAME, NEW TELEPHONE NUMBER AND NEW EMAIL ADDRESS EFFECTIVE IMMEDIATELY 15-404 From: Campbell, Jim Sent: September 08, 2022 4:41 PM To: Jurjis, Seimone; Summerhill, Yolanda; Lee, David Subject: Fwd: The Tennis Club hearing tonight 6:30pm Sent from my iPhone Begin forwarded message: From: Sean Bollettieri-Abdali <sean(@nbcctennis.com> Date: September 8, 2022 at 2:57:19 PM PDT To: "Weigand, Erik" <eweigand@newportbeachca.gov>, lowrey@newportbeachca.gov, "Klaustermeier, Sarah"<sklaustermeier@newportbeachca.gov>, "Rosene, Mark" <mrose ne@newportbeachca.gov>, "Ellmore, Curtis" <CEIImore@newportbeachca.gov>, "Kleiman, Lauren" <Ikleiman@newportbeachca.gov>, "Campbell, Jim" <JCampbell@newportbeachca.gov>, Howard Bidna <hbidna@bidnakeys.com> Subject: The Tennis Club hearing tonight 6:30pm [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Planning Commissioners, We are once again in front of you tonight in regards to the future of The Tennis Club aka:The Tennis & Pickleball Club at Newport Beach. As owner and operator of the club, I would like to remind you that we had previously turned in to Newport Beach City attorney almost 2,000 petitions in support of the Managing Owner's Plan B. I can tell you that the majority of my club is in favor of the plan being in discussion tonight. We desperately need the new facilities to operate the club for many years ahead. Further, our neighbors such as Eagle Four, Newport Beach Country Club and others are in favor of this plan and have provided a letter which was sent to Jim Campbell. I have also built a strong business relationship with the Irvine Company, with whom we have a contractual parking agreement and another easement in the works along with an existing easement for up to 554 parking stalls. For over one month, I along with my staff have hosted a Monday morning event, with complimentary coffee and pastries to discuss this plan and answer questions. 100% of the members we spoke with are in favor of this plan and many of them want this to happen sooner rather than later. Not one individual opposed this plan. 15-405 Tonight, I suspect we will get some opposition speaking against this plan, but be aware that some individual(s) have started a public forum, hiding under falsified names, and posting anonymous posts, especially the last 36 hours. I hope that this will not confuse you or any of our community members. As owner of the club and tenant of the property, I respect all my landlords. I truly pray and hope they will agree on this Plan. It's a win/win for all sides. They will be known as heros in saving the club that means so much to hundreds of people in the City of Newport Beach, not to mention out of State members and guests. We have built a strong community which we are proud of, one that is saving lives and keeping people healthy. Please help us in getting this plan approved. Please feel free to contact me if you are to have any questions, at 213-909-6211. Many aces, Sean Sean Bollettieri Abdali / President The Tennis Club at Newport Beach Eleven Club House Dr. Newport Beach CA 92660 P: 949.759.0711 www.thetennisclubnb.com 15-406 From: justin smith <justinhalos@yahoo.com> Sent: September 07, 2022 5:25 PM To: Jurjis, Seimone Cc: Lee, David Subject: TTC Committe Questions Attachments: 1.png; 2.png; 3.png Follow Up Flag: Follow up Flag Status: Completed [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Mr. Jurjis Having seen this letter from Sean Abdali, the Club President of The Tennis Club at Newport Beach I am confused. I see Sean's claim below highlighted in yellow that he "will have 30-32 pickleball courts". However when I see the plan the City has reviewed and is looking to approve, it does not show any pickleball courts. Can you please let me know if pickleball courts are being approved with this plan? Thank you and regards, Justin Smith, Newport Beach 15-407 The Tennis Club at Newport Beach ❑ear TTG members, As we are wrapping up summer and our tournament and event season, I would like to update you on some items. As many of you know I've been traveling to Florida back and forth for my 91 yr old father, who is now in hospice care. This is a difficult time for our family but I like to thank you for your prayers and positive thoughts. Please note, the project was originally submitted more than 10 years ago when our address and name was different and there was no such thing as Pickleball, On Thursday the Managing Owner is requesting to change the previous plan of 7 courts to 8 courts!l! This equates to 30-32 Pickleball courts, and increases the hotel rooms from 27A2. More details below. TENNIS CLUB AT NEWPORT BEACH PROJECT AMENDMENT (PA2021-260} Site Location: 1602 East Coast Highway Summary: An amendment to the 2012 approved Tennis Club at Newport Beach project to; 1) increase the number of future tennis courts from 7 to 8 courts, 2) increase the number of future hotel rooms from 27 to 41 rooms, 3) increase the gross floor area of the ancillary hotel uses by 4,686 square feet, and 4) provide 3 attached condominium units and 2 detached single family residences in -lieu of 5 detached single-family residences. The proposed changes to the 2012 approved project require the consideration of the following land use: The Managing Owner, Robert O'Hill will be holding a meeting at TTG this Wednesday September 8th at 6pm in the Clubhouse. Feel free to come if you have any questions. 15-408 The club will support a plan that preserves our club and the one submitted, will allow me to provide up to 30-32 Pickleball courts. The new plan will deliver much needed facilities, such as a new locker room for showers, changing room, Restaurantfbar, Pro Shop, and two stadium FIB courts. We, the club, appose any plan that eliminates our club period. Please join the Managing Owner tomorrow, Wednesday at Glom for a Q&A session at the Clubhouse Grill. WARNING: It was brought to our attention this afternoon that few individuals are stirring the pat with untrue facts and negative thoughts about the Thursday hearing. I am very concerned that these individuals wil'l spoil us having a club. The plan for Thursday night, guarantees our club to be preserved and I will have 30-32 Pickleball courts to deliver to you, along with other much needed and important facilities, such as showers, locker rooms, and better restrooms. If you have any information on who these individuals may be or who's chat roam it belongs to, please let me know in confidence by texting me at 213-909-6211. Events & Tournaments: . Pickleball: The club has taken a very strong stand in putting a pause on all new events and tournaments, and set guidelines to ensure member experience is not jeopardized and protect cur facility with the wear and tear. We will be announcing the guidelines we have set for all new bookings and have asked the event company to reach out to already committed events to move some things, such as start time and number of courts. . Tennis: UTR Tennis tournaments have been reduced and more matches will continue to move off -site, including our new facility in Coto. We have also reduced a large number of our Junior Performance activities. 15-409 In conclusion, with any plan passing by the City it will still require 70% vote from all Landlords. So far, the landlords have litigated against one another for gears. Let's assume all the landlords agree to one given plan, then it will still tale multiple years for it to start the Process. What we DO NOT want to happen is to have club members confused to oppose the only plan that will keep our club operating, offering what we offer today. If you have any questions, feel free to contact rye b phone at 1 - 09-6 11. Many aces, Sear? 15-410 From: Sent: ' To: Subject: JIM CAMPBELL Community Development Department Deputy Community Development Director icampbell(a)ne wportbeachca. qov 949-644-3210 Campbell, Jim September 08, 2022 4:54 PM Lee, David; Summerhill, Yolanda FW: TCC Pickleball and Tennis Club From: rtarbelll@gmail.com <rtarbelll@gmail.com> Sent: September 08, 2022 4:54 PM To: Planning Commissioners<PlanningCommissioners@newportbeachca.gov> Subject: TCC Pickleball and Tennis Club [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Commissioners, I am a resident of CDM (465 Seaward Rd, CDM, 92625) and a member of the TCC club. There has been a lot of confusion relating to the redevelopment of the club into a hotel and 8 tennis courts. We have been told that the pickleball courts will remain in the new development, but it appears they are being eliminated based on the agenda item description I read today. It appears to me that there is more of a community benefit from having the pickleball courts remain in place versus eliminating the pickleball courts then and keeping 8 tennis courts. That being said, I don't see anything the applicant is asking for that is not consistent with the property zoning so maybe there is nothing that the PC can do but if it is possible to designate the construction of the Pickleball courts over the tennis courts then I would encourage the PC to make this condition a requirement. Thank you for your service. FrTWA Rick Tarbell Cell (714) 396 8995 COMMUNITIES http://twacommunities.com/ "Innovarim HOLOS1170 r0Fiftaif CommunidaS" 15-411 From: Lee, David Sent: October 06, 2022 10:29 AM 90�-P- Hi If a revised application includes a public spa and fitness center, we would need to evaluate the entire facility and operation to make the determination on parking it separately from the hotel. Thanks, DAVID S. LEE Community Development Department Associate Planner dlee(a)newportbeachca. gov 949-644-3225 CITY OF NEWPORT BEACH 100 Civic Center Drive, First Floor Bav C, Newport Beach, California 92660 1 newportbeachca.gov From: Susan Kramer <susan@pennrecords.com> Sent: October 05, 2022 2:52 PM To: Lee, David <dlee@newportbeachca.gov> Subject: RE: Project File No: PA 2021-260 Parking Considerations [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. David: Sorry to bother you again and I promise only (1) more question until next year when the next chapter unfolds with I am sure more twists and turns. 1. If the Spa and Fitness Center was open to the public would that change the parking spaces needed? Thanks a lot. You have been terrific! Best regards, Susan Kramer Corporate Accounts 15-412 Penn Records Management - Corporate Offices: 2551 S. Garnsey St. (Serving Orange County) Santa Ana, Calif. 92707 14;�- 15622 Producer Lane (Serving Los Angeles Area) Huntington Beach, Calif. 92649 Tele. 714/549-0224 susanennrecords.com www.pennrecords.com From: Lee, David <dlee@newportbeachca.gov> Sent: Wednesday, October 5, 2022 7:57 AM To: Susan Kramer <susan@pennrecords.com> Subject: RE: Project File No: PA 2021-260 Parking Considerations Hi Susan, See my responses to each number, below: 1. Noted, that's helpful information. 2. Noted as well. Parking would need to be evaluated for pickleball if the application comes in. 3. The spa and fitness center was proposed as an ancillary use for the hotel. The hotel and tennis club parking requirements were accounted for in the required and proposed parking. There may be overlap in where tennis members / hotel guests park their cars. However, it was all accounted for from a parking count stand point. 4. 1 do not know this information regarding membership plans. This would be a question for the ownership. Again, parking for tennis and hotel use were accounted for. The rest of your questions regarding noise are great questions, but not for me to answer. My job is to analyze the project which was submitted, which was for tennis courts only. We'll see what happens in the near future with the project. Again, let me know if you need anything else! Thanks, DAVID S. LEE Community Development Department Associate Planner dleena.newportbeachca. aov 949-644-3225 CITY OF NEWPORT BEACH 100 Civic Center Drive, First Floor Bay C, Newport Beach, California 92660 1 newportbeachca.gov From: Susan Kramer <susan@pennrecords.com> Sent: October 04, 2022 3:10 PM 15-413 To: Lee, David <dlee@newportbeachca.gov> Subject: RE: Project File No: PA 2021-260 Parking Considerations [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. David: I appreciate that you have a complicated job ahead of you to write the codes for Pickleball. Since I am at TTC (3) weekdays and (1) Saturday I have a lot of experience with the hassle of parking in the current parking lot. Having watch both the Planning Commission and the City Council meetings, there are a few inaccuracies that were presented by Sean and Mr. OHill: Primarily women play pickleball Monday — Friday. Families & Couples play on the weekend. As I play tennis 3 week day mornings, I can attest that I have never seen (2) women arrive together. The majority of women arrive singly very similar to tennis players. If the code is 4 parking spaces per court for tennis it should be the same for pickleball on weekdays. However, these are the days when the least amount of parking is available. 2. Pickleball players have different start times so when the courts are full, it is difficult for those players arriving later to find parking. Hard to say (4) spaces per court when players overlap. 3. Does SPA & Fitness Center have its own parking or is it shared with the parking lot for Pickleball? 4. Does Pickleball membership include the SPA and Fitness Center? If so parking spaces may be used longer periods of time — not freeing them up for members who arrive later. I am also a little curious about the loud pickleball whacking noise. Why would someone buy a high priced Condo with such a loud background noise every day and evening coming in your windows? Why would someone book a pricey hotel room near the pickleball courts for the same reason? If for any reason I can answer questions for you, I would be happy to do so. Obviously I would like tennis & pickleball players to co -exist as we are now but am very curious how this all plays out. GOOD LUCK! Best regards, 15-414 Susan Kramer From: Lee, David <dlee@newportbeachca.gov> Sent: Tuesday, October 4, 2022 7:52 AM To: Susan Kramer <susan@pennrecords.com> Subject: RE: Project File No: PA 2021-260 Tennis Club at Newport Beach Project Amendment Hi Susan, No, the 2012 project is not expired. The development agreement was extended one year until September of 2023. If there is a project resubmitted to the City for pickleball, we will conduct the necessary studies to determine requirements and standards. Since the project that went to City Council last week was for tennis only, we only analyzed the project for tennis. Let me know if you have other questions. Thank you. DAVID S. LEE Community Development Department Associate Planner dlee(anewportbeachca,gov 949-644-3225 CITY OF NEWPORT BEACH 100 Civic Center Drive, First Floor Bay C, Newport Beach, California 92660 1 newportbeachca.Bov From: Susan Kramer <susan@pen nrecords.com> Sent: October 03, 2022 3:05 PM To: Lee, David <dlee@newportbeachca.gov> Subject: RE: Project File No: PA 2021-260 Tennis Club at Newport Beach Project Amendment [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. David: Thank you for the courtesy of our reply. Is the original 2012 approved Newport Beach Project now expired? Or does the Planning Commission have to create guidelines for Pickleball courts in order for this pending project to be reconsidered? 15-415 If so, (8) tennis courts converted to Pickleball Courts = 32 Pickleball Courts. The current plan only calls for (32) parking spaces so this will be a problem as each court could have (4) players x 32 = 128 parking spaces needed. Best regards, Susan Kramer Corporate Accounts Penn Records Management — Corporate Offices: 2551 S. Garnsey St. (Serving Orange County) Santa Ana, Calif 92707 15622 Producer Lane (Serving Los Angeles Area) Huntington Beach, Calif. 92649 Tele. 714/549-0224 susan( pennrecords.com www.pennrecords.com From: Lee, David <dlee@newportbeachca.gov> Sent: Monday, October 3, 2022 2:31 PM To: Susan Kramer <susan@pennrecords.com> Subject: RE: Project File No: PA 2021-260 Tennis Club at Newport Beach Project Amendment Hi Susan, There is a video uploaded onto Youtube from the City's account. The item begins at approximate 2 hours 23 minutes into the video. The item was not approved, and was further continued onto a future Planning Commission meeting. Let me know if you have more questions! DAVID S. LEE Community Development Department Associate Planner dlee(a)newportbeachca.gov 949-644-3225 CITY OF NEWPORT BEACH 100 Civic Center Drive, First Floor Bay C, Newport Beach, California 92660 1 newportbeachca.aov 15-416 From: Susan Kramer <susan@pennrecords.com> Sent: October 03, 2022 1:59 PM To: Lee, David <dlee@newportbeachca.gov> Subject: Project File No: PA 2021-260 Tennis Club at Newport Beach Project Amendment [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. David: As the Minutes and Video from the City Council Meeting Sept 27th are not posted online as of yet, could you please advise the status of the 2012 approved Tennis Club at Newport Beach project. I am a friendly spectator and a member of the Tennis Club so not to worry. I do not play pickleball but I hear lots of untrue rumors. Thank you for your assistance in keeping the information accurate. Best regards, Susan Kramer 1851 Port Seabourne Way, Newport Beach, Calif. 92660 15-417 On the Agenda: City Council Meeting for Oct. 25 Our next City Council meeting is Tuesday, October 25. Items of interest are highlighted below. The entire agenda and reports can be viewed here. The regular meeting will begin at 4 p.m. Agenda items include: • A resolution to establish an ad hoc citizens' advisory committee to provide input and make recommendations to address residential crime and burglary. The committee would include three community members with backgrounds in public safety or criminal justice. If approved, the committee will be advertised and qualified residents invited to apply. • Approve a $3.4-million, 10-year agreement with Axon Enterprises for the purchase of body - worn cameras, in -car video systems and tasers for the Police Department, along with related hardware, software and services. Among other improvements, the agreement would expand the use of body -worn cameras departmentwide. Reconsideration of a development project amendment for the Tennis Club at Newport Beach. The Tennis Club, located at 1602 E. Coast Highway, is seeking to amend a previously approved development agreement. The Council voted 5-2 on September 27 to continue the item, directing the Planning Commission to consider the inclusion of pickleball courts instead of tennis courts. On October 11, the Council voted 4-3 to reconsider the applicant's original request. The applicant is seeking to increase the number of tennis courts, hotel rooms, and hotel floor space, and reduce the number of single-family residences, along with a 10-year term extension. A resolution that would amend a lease agreement with the Lido House Hotel, 3300 Newport Blvd. The applicant is requesting to add 15,103 square feet to the previously approved 130-room Lido House Hotel to allow the construction of five new rentable cottages, increased storage space, enlarged meeting rooms, a new greenhouse seating room, expansion of three existing hotel rooms, and an enclosed area on the rooftop terrace. The amendment also includes demolition of the former Fire Station No. 2 building to create additional public and private parking spaces. October 25, 2022 Agenda Item No. 15 From: Rieff, Kim To: Mulvey. Jennifer Subject: FW: Letter to City Council Objecting Agenda Item No. 15 at Sept. 27 Hearing Date: October 20, 2022 2:33:51 PM Attachments: Letter to City Council Re Co -Owners Obiecting to Agenda Item No. 15 at 9.27.22 Hearing.pdf 2022.09.23 Co -Owners Itr. to City Council - Exhibit 1 (OIC Agmt w. Ex. A Only).pdf From: Brett Feuerstein <brett@mesacenters.com> Sent: October 20, 2022 2:25 PM To: Dept - City Council <CityCouncil@newportbeachca.gov> Cc: Leung, Grace <gleung@newportbeachca.gov>; Jurjis, Seimone <sjurjis@newportbeachca.gov>; Robert 0 Hill <roh@ohill.com>; Ryan Chase <ryanlylechase@gmail.com> Subject: Letter to City Council Objecting Agenda Item No. 15 at Sept. 27 Hearing [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Dear Honorable City Council Members: We understand at the upcoming City Council hearing on October 25, 2022, the City Council will reconsider the Tennis Club at Newport Beach Project Amendment, which was Agenda Item No. 15 at the City Council's September 27, 2022 hearing. At that September 27th hearing, the Council Members voted 6-1 to refer the Project Amendment back to the Planning Commission for further consideration and the inclusion of pickleball courts (with the necessary CEQA and impact analysis). As we have previously expressed to the City Council, we believe the Council Members made the right decision in referring the Project Amendment back to the Planning Commission so that it can be revised to clearly provide for pickleball courts. We also believe this decision reflected good governance because it provides the only guarantee to ensure that the applicant follows through on his promises to include pickleball courts. By this email, we are re -submitting our September 23, 2022, letter to you (which we previously submitted in advance of the City Council's September 27th hearing) so that it may be a part of the record for the October 25th hearing. Our September 23rd letter, among other things, expresses our concern that the current Project Amendment does not provide for pickleball courts or reflect pickleball as a future use at the Tennis Club. As we understand it, the Project Amendment being considered at the October 25th hearing still does not do so, and the only way to guarantee pickleball as a use going forward is for the City Council to stay the course with their original decision on September 27th to refer the project back to the Planning Commission to allow for the incorporation of pickleball courts into the plans. Thank you for your consideration of our comments. Best, Brett Brett Feuerstein 8294 Mira Mesa Blvd San Diego, CA 92126 (858) 271-4682 (858) 271-5161 Fax brett(@mesacenters.com Mira Mesa Shopping Center - West, LLC 8294 Mira Mesa Blvd. San Diego, California 92126 Office (858) 271-4682 Fax (858) 271-5161 September 23, 2022 DELIVERED VIA EMAIL ONLY. citycouncilgnewportbeachca.gov Newport Beach City Council City of Newport Beach 100 Civic Center Drive P.O. Box 1768 Newport Beach, CA 92658-8915 Re: September 27, 2022, City Council Agenda Objection to Agenda Item No. 15 Project No. PA2021-260 Dear Honorable City Council Members: We write to you today to express our objection to Agenda Item No. 15. As you may know, we own 50% of the property at 1602 East Coast Highway ("Tennis Property"), where The Tennis Club at Newport Beach is located. Our co-owner Golf Realty Fund, LP ("GRF") owns the other 50% of the Tennis Property; Robert O Hill represents GRF. We and GRF hold our ownership interests in the Tennis Property as tenants in common, not as an LLC or partnership, which means the individual owners retain significant rights. Our families have lived in the City of Newport Beach ("City") since the 1920s, and we own and operate a number of commercial, residential, and recreational properties throughout the City. For example, one our families' patriarchs, Alan Fainbarg, operated one of the first beach rental shops on Bay Avenue on the Balboa Peninsula in the 1930s. We have the interests of the City at heart, and as generational families with deep roots here we see it as our duty to be involved with and to give back to this community, which we have done and continue to do, including through our philanthropic work. As you may know, we are engaged in an arbitration with GRF to establish rights and obligations of the owners under our private Owners in Common Agreement' for the Tennis Property ("OIC Agreement"). A central issue in the arbitration proceeding is whether GRF has the authority to unilaterally apply for the plans and entitlements for the Tennis Property that are before the City Council on September 27, 2022. It is our position that GRF does not have the authority under the OIC Agreement to apply for the plans and entitlements without our consent. That said, we recognize this is a private dispute between private parties, and we are not seeking to involve the City in our private dispute. Instead, we are giving you this background information to help you understand our objection to the proposed planning application and its approvals and entitlements, which is further explained in the attached Arbitration Demand. ' A copy of the OIC Agreement is attached as Exhibit A to the Arbitration Demand from the pending arbitration, and a copy of the Arbitration Demand is enclosed with this correspondence as Exhibit 1 and is hereby incorporated by reference as if fully set forth herein. Also, we attended the City's Planning Commission hearing on September 8, 2022, where we expressed to City staff and commissioners (among other things) our long-term commitment to pickleball at the Tennis Club. We recognize the explosion of pickleball as a sport and realize its growing popularity in our community and the club members' desire for pickleball. In fact, we have been working on a lease with a prominent Newport Beach business operator that would: preserve the club, preserve the pickleball courts, preserve the tennis courts and significantly upgrade the club's facilities. The lease would be for 10 years and can be extended for an additional 10 years should the tenant so desire — making the total possible term 20 years. We sent this lease to Mr. O Hill and we hope he gives it fair consideration. We also expressed at the September 8th Planning Commission hearing our concern that the plans and entitlements for which GRF is applying do not provide for pickleball courts or reflect pickleball as a future use at the Tennis Club. We also understood the City staff and commissioners to say at the September 8th hearing that not only does GRF's plans not provide for pickleball at the Tennis Club but if GRF's project were to be approved and constructed that pickleball would be eliminated as a use at the Tennis Club. We hope that we could all agree that elimination of pickleball would not be good for the pickleball members nor the future of the Tennis Club. We were likewise very concerned to hear a statement read at the September 8th Planning Commission hearing on behalf of an apparently large contingency of club members who oppose GRF's project but did not attend the hearing out of fear because Mr. Abdali allegedly threatened to kick such members out of the Tennis Club if they did attend and oppose the project. We have heard that, unlike the Planning Commission hearing and despite the alleged threats against them, members from the Tennis Club may appear at the City Council hearing to express their dissatisfaction with GRF's project. Thank you for your consideration of our letter. We appreciate the service you perform for our shared community. Sincerely, Brett Feuerstein as Manager of Mesa Shopping Center -East, LLC and Mira Mesa Shopping Center -West, LLC R q�w ew" Ryan Chase as Manager of Fainbarg III, LP cc: Grace K. Leung, City Manager (gleung@newportbeachca.gov) Seimone Jurjis, Community Development Director (sjurjis@newportbeachca.gov) Robert O Hill, Golf Realty Fund (roh@golfrealtyfund.com) Enclosures: Exhibit 1: March 25, 2022, Arbitration Demand from the Pending Arbitration with Exhibit A only; Exhibits B to H to the Arbitration Demand can be provided upon request Page 2 of 2 Exhibit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 MICHAEL YODER (SBN 83059) myoder@omm.com O'MELVENY & MYERS LLP 610 Newport Center Drive 17th Floor Newport Beach, California 92660-6429 Telephone: +1 949 823 6900 Facsimile: +1 949 823 6994 JACOB C. GONZALES (SBN 235555) igotyples@.j*cg-law.com 1cg I law 23 Corporate Plaza Drive, Suite 150 Newport Beach, California 92660-7901 Telephone: +1 949 313 8545 Attorneys for Claimants MESA SHOPPING CENTER -EAST, LLC MIRA MESA SHOPPING CENTER -WEST, LLC and FAINBARG III, LP JUDICIAL ARBITRATION AND MEDIATION SERVICES ARBITRATION PROCEEDING — ORANGE COUNTY OFFICE MESA SHOPPING CENTER -EAST, LLC, a California limited liability company; MIRA MESA SHOPPING CENTER -WEST, LLC, a California limited liability company; and FAINBARG III, LP, a California limited partnership, Claimants, V. GOLF REALTY FUND LP, a California limited partnership fka O HILL PROPERTIES, a California limited partnership, Respondent. JAMS Case No. 5200000090 CLAIMANTS' DEMAND FOR ARBITRATION AND STATEMENT OF CLAIMS FOR: (1) DECLARATORY AND INJUNCTIVE RELIEF; (2) BREACH OF CONTRACT; (3) BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING; (4) ACCOUNTING; AND (5) DECLARATORY RELIEF Claimants Mesa Shopping Center -East, LLC, Mira Mesa Shopping Center -West, LLC, and Fainbarg III, LP (collectively "Co -Owners" or "Claimants"), hereby allege as follows: ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I. INTRODUCTION 1. The parties, tenant in common owners of the approximate 7-acre Newport Beach tennis club property commonly known as 1602 E. Coast Highway, Newport Beach, CA 92660 (the "Tennis Property"), are no strangers to arbitration. This action marks their fifth such proceeding. In 2013, Respondent obtained an arbitration award that allowed him to complete a few remaining discretionary entitlements, which he had been pursuing for almost 15 years, for his so-called "master plan" to redevelop the Tennis Property. In 2020, Co -Owners obtained an arbitration award finding they had not consented, and were not required to consent, to Respondent's master plan to redevelop the Tennis Property. It was also established at the 2020 arbitration that Respondent had finished processing the few remaining discretionary entitlements for his master plan. Thus, any right Respondent had under the 2013 award to process his discretionary entitlements had run its course. 2. Co -Owners were surprised to learn in late November 2021 that Respondent was applying for new entitlements for the Tennis Property without their knowledge or consent. Respondent submitted new entitlement applications to the City of Newport Beach (the "City") over Co -Owners' instructions that he did not have their consent —express or implied —to process any more entitlements or to spend ownership funds doing so. Respondent concealed from Co - Owners that he had submitted new applications, and when Co -Owners finally learned of the new entitlement applications, they made multiple requests to Respondent in writing to stop and to provide them with information about his entitlement applications. Respondent ignored Co - Owners' requests. 3. Co -Owners also learned in December 2021 that Respondent had allowed a new operator to start a restaurant at the Tennis Property without obtaining the Co -Owners' consent as required under the parties' written agreement for the Property, and that Respondent had submitted a liquor license application purportedly on behalf of the Property ownership along with that operator without notifying Co -Owners. Co -Owners then discovered in February 2022 that alcohol was being sold at the Tennis Property without a liquor license. Co -Owners asked Respondent in writing for basic information about the new operator at the Tennis Property, including to be -2- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 93 provided any purported lease with the operator, and that Respondent stop the unlawful sale of alcohol. Respondent ignored their request for information and Co -Owners are informed and believe, and thereon allege, that alcohol continues to be sold at the Tennis Property without a I license. 4. Respondent is ignoring Co -Owners' rights and his duties to them by treating the Tennis Property as though it is his to do with as he pleases. Respondent has spent significant ownership funds while failing to respond to Co -Owners' requests for basic information and running afoul of his limited duties as managing owner. Rather than cooperate and seek to work toward a consensus with Co -Owners, Respondent is attempting to present them with a fait accompli for his development project for the Tennis Property while exposing them to real liability by placing an operator at the Property without Co -Owners' consent and allowing that operator to unlawfully sell alcohol. Co -Owners bring this arbitration to remove Respondent as managing owner or, alternatively, to enjoin him from further breaches of his agreement with Co -Owners. II. THE PARTIES 5. Claimant Mesa Shopping Center -East, LLC ("Mesa East"), is a California limited liability company with its principal place of business in the City of San Diego. 6. Claimant Mira Mesa Shopping Center -West, LLC ("Mesa West"), is a California limited liability company with its principal place of business in the City of San Diego. 7. Claimant Fainbarg III, LP ("Fainbarg III"), is a California limited partnership with its principal place of business in the City of Costa Mesa. 8. Co -Owners are informed and believe, and thereon allege, that Respondent Golf Realty Fund, LP ("GRF" or "Respondent"), is a California limited partnership, which is managed by Robert O Hill, with its principal place of business in the City of Newport Beach. III. VENUE AND JURISDICTION 9. This action stems from the Agreement Between Real Property Owners — Balboa Bay Club Racquet Club of March 8, 1994 (the "OIC Agreement"), for the Tennis Property, the legal description of which is set forth in Exhibit A to the OIC Agreement. Exhibit A attached hereto is a copy of the OIC Agreement. -3- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 10. Section 26 of the OIC Agreement states: "All disputes arising under this agreement will be resolved by submission to arbitration at the Orange County offices of Judicial Arbitration & Mediation Services Inc. (`JAMS') for binding arbitration. The parties may agree on a retired judge from the JAMS panel. If they are unable to agree, JAMS will provide a list of three available judges and each party may strike one. The remaining judge will serve as the arbitrator at the arbitration hearing.... Nothing in this paragraph shall in any way limit or otherwise restrict a party's right or ability to obtain injunctive relief or appointment of a receiver through the Court system." 11. Pursuant to the OIC Agreement, the claims set forth in this Arbitration Demand are subject to arbitration before a retired judge at JAMS in the County of Orange. Co -Owners reserve the right to obtain injunctive relief through the Court system as provided in Section 26. IV. GENERAL ALLEGATIONS A. Tenant in Common Ownership of the Tennis Property 12. In around 1994, the parties acquired the Tennis Property. Tenant in common ownership in the Tennis Property is apportioned as follows: • Claimant Fainbarg III has a 25% interest, • Claimant Mesa East has a 15% interest, • Claimant Mesa West has a 10% interest, and • Respondent has a 50% interest. 13. The parties also co-own (as tenants in common) the adjacent Newport Beach Country Club located at One Clubhouse Drive, Newport Beach, CA 92660 (f/k/a 1600 E. Pacific Coast Highway, Newport Beach, CA 92660) (the "Golf Property"). Pursuant to the Agreement Between Real Property Owners — Newport Beach Country Club of September 30, 1992, the terms of which are almost identical to the OIC Agreement, tenant in common ownership in the Golf Property is apportioned the same as the ownership in the Tennis Property. 14. Under two essentially identical agreements, for years O Hill Properties, now known as Golf Realty Fund, both controlled by Robert O Hill (hereinafter referred to as "O Hill"), acted as the managing owner, under limited powers, for the tenant in common owners of -4- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 W. the Tennis and Golf Properties. As both Properties were under long-term triple net leases to tenants, the fundamental job of O Hill was to collect rents, pay the minimal expenses associated with overseeing the Properties, and then pay distributions to all the tenant in common owners. 15. The OIC Agreement provides the managing owner with only limited authority over the Tennis Property, as most decisions are reserved to the tenant in common owners or require at least a majority vote. For example, before O Hill (as the managing owner) could make a material expenditure for a capital improvement at the Tennis Property he must first obtain the written consent of at least one of the Co -Owners. See OIC Agreement § 7(d). Similarly, any conveyance of an interest in the Tennis Property, including a leasehold interest, must be in a writing signed by all the owners. Id. § 3. Aside from the limited powers given to the managing owner to collect rents and pay ordinary expenses, the OIC Agreement expressly provides that each tenant in common owner retains the right to deal with his interest in the Tennis Property as such owner sees fit. Id. § 1. B. History of Problems with O Hill's Management 1. Past Problems with Tennis Property 16. Early on, in the 1990s, O Hill explored ways to redevelop the Tennis Property. He sought to rezone the Tennis Property from open space recreational to a mixed use, which would allow commercial and residential development. Co -Owners were supportive of O Hill's initial efforts to obtain an upzoning of the Tennis Property from open space to mixed use and had no objection to his use of limited ownership funds for that purpose. O Hill developed several ideas for possible site plans but spent relatively modest amounts of ownership funds doing so. 17. In around 2007, however, O Hill started spending considerable amounts of ownership funds, prompting Co -Owners to begin asking questions and requesting information to better understand both what O Hill planned, and the underlying economics of a possible Tennis Property redevelopment. O Hill only reluctantly turned over information for his development plan for the Tennis Property, which O Hill referred to as his "Master Plan," which involved obtaining discretionary entitlements for the Tennis Property for the following three specific uses: 5 single family residential units (referred to as the villas), 7 tennis courts with a new tennis clubhouse/spa -5- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 I 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 W. building, and a hotel with 27 rooms (referred to as the bungalows). 18. Within a year or so of initiating their fact-finding process, it became apparent to Co -Owners that O Hill's proposed Master Plan did not maximize the Tennis Property's value for all the tenant in common owners, or that O Hill at least had not provided Co -Owners with meaningful information to support his proposed Master Plan's economics. It was also apparent that O Hill's Master Plan was really about his personal interests in developing the Tennis Property even though those interests were not shared by Co -Owners, and he was pursuing those interests at Co -Owners' expense. On February 20, 2008, Co -Owners asked O Hill in writing to stop — formally objecting to his further processing discretionary entitlements for his Master Plan. Rather than stop, O Hill ramped up his spending of ownership funds on his discretionary entitlements for his proposed Master Plan. 2. 2011-13 Arbitration with Judge Fromholz 19. In April 2011, the Co -Owners commenced a JAMS arbitration proceeding with Hon. Judge Hayley Fromholz (Ret.) to enjoin O Hill from further processing his discretionary entitlements for his Master Plan. Judge Fromholz issued his decision in May 2013. Exhibit B attached hereto is a true and correct copy of Judge Fromholz' May 17, 2013, Final Award. 20. Judge Fromholz found the OIC Agreement did not expressly give O Hill (as managing owner) expansive powers, and that the Agreement was ambiguous in that it neither clearly authorized nor restricted O Hill from pursuing the discretionary entitlements for his Master Plan: "The Agreements do not expressly give the Managing Owner expansive powers. For example, Recital C of the Agreements states merely that the `Owners ... believe it necessary and appropriate to have one Owner be the managing Owner for purposes of accounting and administration." (Fromholz Award at 8, underline added.) 21. In addition to finding the OIC Agreement was ambiguous, Judge Fromholz concluded that Co -Owners had sat on the sidelines and waited too long to protest the few remaining discretionary entitlements O Hill was processing for his Master Plan. Judge Fromholz found that O Hill could finish the limited work left to complete the discretionary entitlements for his Master Plan since he had purportedly been pursuing them for almost 15 years and very little -6- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 remained for O Hill to do (hereinafter, "2012 Discretionary Entitlements"): "At the time that [Co -Owners] voiced their objection in February 2008, O Hill had been actively_ pursuing the discretionary entitlements for nearly fifteen years. Voters approved the general amendment and the only remaining [discretionary] entitlements were the development standards such as height limits, landscaping, vehicle access, and parking. Thus, very little remained to complete the NBCC Plan." (Id. at 9, underline added.) 22. Judge Fromholz found that, as of May 2013, the only items that remained for O Hill to complete his 2012 Discretionary Entitlements were ministerial development standards: "Currently, the development standards for the NBCC Land such as height limits, landscaping, vehicle access, and parking, are still undetermined. The development standards are the final discretionary entitlements for the NBCC Land. Proceedings are continuing to be held before the City to determine the development standards." (Id. at 4, underline added.) 3. 2015-16 Arbitration with Justice Sonenshine 23. Following the conclusion of the parties' arbitration with Judge Fromholz, and for almost two years, Co -Owners made multiple written requests to O Hill asking to be provided meaningful information about his 2012 Entitlements and Master Plan. O Hill ignored Co -Owners' requests. Thus, in April 2015, Co -Owners initiated another arbitration against O Hill, this time with the Hon. Justice Sheila Prell Sonenshine (Ret.), to obtain an order allowing them to access information concerning the work -product resulting from the hundreds of thousands of dollars of ownership funds spent by O Hill on his 2012 Discretionary Entitlements and Master Plan, and to enforce their contractual right to have an audit performed concerning those expenditures. 24. In August 2016, Co -Owners prevailed in the parties' arbitration with Justice Sonenshine and obtained the audit they were seeking, information concerning O Hill's expenditure of ownership funds on his Master Plan and O Hill's stipulation to provide annual written status and financial reports as required under section 7 of the OIC Agreement. Justice Sonenshine also awarded Co -Owners their attorneys' fees and costs as the prevailing parties. 4. 2017-20 Arbitration with Justice King 25. In 2017, O Hill sued Co -Owners seeking to force them to go along with the -7- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 development of his 2012 Discretionary Entitlements and Master Plan — i.e., the construction of a 27-room hotel, 5 villa residences, and a new tennis clubhouse and 7 courts. In March and May 2019, an evidentiary hearing was held with the Hon. Justice Jeffrey King (Ret.) at JAMS, and on April 8, 2020, Justice King issued his Final Award. Exhibit C attached hereto is a true and correct copy of Justice King's April 8, 2020 Final Award, which was confirmed and entered as a Judgment on March 26, 2021, in Orange County Superior Court Case No. 30-2020-01159790- CU-PA-CJC. 26. By his Final Award, Justice King denied all of O Hill's claims against the Co - Owners and found in favor of the Co -Owners on all of their cross -claims against O Hill, determining, among other things, that: • Co -owners had not already consented, were not estopped from withholding their consent, and had no duty to consent, under the OIC Agreement (or otherwise) to the sale, lease or improvement of the Tennis Property as part of O Hill's 2012 Discretionary Entitlements and Master Plan. • Under the OIC Agreement each owner has the unfettered right to refuse for any reason to sell its interest the Tennis Property or any portion thereof. • Relative to the leasing of the Tennis Property or portions thereof, no owner may refuse to lease the Tennis Property or portions thereof for an objectively unreasonable reason. • The Co -owners' refusal to consent to the sale or lease of, or construction of improvements on, the Tennis Property as part of O Hill's 2012 Discretionary Entitlements and Master Plan was not objectively unreasonable. (Justice King Final Award at 32-33.) 27. Also, O Hill acknowledged in the arbitration with Justice King that as of November 2018, he had completed his 2012 Discretionary Entitlements (which, in 2013, Judge Fromholz said he could finish processing since very little remained to complete them). Indeed, Justice King made it a point to say in his Final Award that O Hill had finally completed his 2012 Discretionary Entitlements: -8- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Judge Fromholz states at page 4 of his decision, "[c]urrently, the development standards for the NBCC Land such as height limits, landscaping, vehicle access and parking are still undetermined. The development standards are the final discretionary entitlements for the NBCC Land. Proceedings are continuing to be held before the City to determine the development standards." To a reader it somewhat leaves the impression that he believed the process of entitlements was near completion. Entitlements were not completed until about five and one-half years later. (King Final Award at 5, fn. 3, emphasis added.) The master plan has three elements: there are 27 bungalows, 5 villas and the tennis club/spa. The tennis/spa building is an amenity for the bungalows and villas. The entity. By November 2018 he had: the Newport Beach Country Club Planned Community text, a zone change, site plan approval, state Water Quality Control Board approval, grading plan, storm drain plan, dry utility plans and street improvement plans, through plan check. They had all the entitlement approvals necessga to do the "bake - off. (Id. at 10, underline added.) 28. Thus, any right O Hill had to process his few remaining 2012 Discretionary Entitlements under Judge Fromholz' award had run its course as of November 2018. C. Ongoing Issues with O Hill's Management 1. In November 2021, Co -Owners Learned O Hill Was Applying for and Processing New Entitlements for the Tennis Property with the City 29. Co -Owners prevailed in the 2015-16 arbitration with Justice Sonenshine because O Hill was spending significant ownership funds on his Master Plan while refusing to provide Co -Owners with information about such expenditures. Co -Owners prevailed in the 2017-2020 -9- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 arbitration with Justice King because, after O Hill had finally completed his 2012 Discretionary Entitlements, it was determined that under the OIC Agreement O Hill could not compel Co - Owners to go along with the development of the Tennis Property as part of O Hill's Master Plan, and Co -Owners were not estopped from, nor being unreasonable, in withholding their consent to O Hill's Master Plan. 30. After Justice King issued his Final Award, Co -Owners sent O Hill a series of letters on November 13, 2019, June 9, 2020 and July 28, 2020, putting him on notice that any right he had to process his few remaining 2012 Discretionary Entitlements under Judge Fromholz' 2013 award (since O Hill had completed them) had run its course and that award did not support O Hill processing new entitlements for the Tennis Property, that he did not have Co - Owners' consent to seek new entitlements and that he was not to spend ownership funds doing so. 31. Yet, in November 2021, Co -Owners discovered that O Hill, without their knowledge or consent and over their objections, was seeking City approval for a new project he had devised without Co -Owners' input, which, Co -Owners are informed and believe, and thereon allege, would significantly change his Master Plan by, without limitation, increasing the number of hotel rooms from 27 to 41 (hereinafter the "2021 Project"). 32. Co -Owners are further informed and believe, and thereon allege, that for his 2021 Project, O Hill is applying for and processing, or that he intends to apply for and process, with the City, the following new entitlements for the Tennis Property: General plan amendment, PC text amendment, development agreement amendment, amendment to tract map, major site development review amendment, limited term permit amendment, coastal development permit amendment, traffic study and compliance with CEQA (hereinafter "New 2021 Entitlements"). Exhibit D attached hereto are copies of O Hill's Community Development Planning Permit Application that Co -Owners are informed and believe, and thereon allege, O Hill submitted to the City in November 2021 and the NBCC Tennis Property Entitlement Amendment & Project Description that Co -Owners are informed and believe, and thereon allege, O Hill submitted to the City in February 2022. 33. On November 23, 2021, Co -Owners sent O Hill a letter expressing surprise that he -10- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 was processing his New 2021 Entitlements and reminding O Hill that he did not have their consent to process any more entitlements for the Tennis Property and was not to spend ownership funds doing so. Co -Owners asked O Hill in writing to stop, and to provide them with copies of the submittals he made to the City for his 2021 Project and his New 2021 Entitlements as well as for meaningful economic data he believed supported his 2021 Project. O Hill ignored Co - Owners' requests. 34. On December 6, 2021, Co -Owners sent O Hill another letter again asking to be provided the information requested in their November 23 letter regarding his 2021 Project and his New 2021 Entitlements, and that he stop processing his New Entitlements. O Hill again ignored Co -Owners' requests. 35. On January 21, 2022, Co -Owners again sent O Hill a letter asking that he provide them with copies of his submissions to the City for his 2021 Project and New 2021 Entitlements, and that he stop processing his New Entitlements. O Hill once more ignored Co -Owners' requests. 36. O Hill has refused to comply with Co -Owners' requests that he provide them with copies of his submittals to the City regarding his 2021 Project and his New 2021 Entitlements, and that he stop processing his New Entitlements, and it is clear that O Hill will only comply if ordered to do so and enjoined from taking further action in connection with his New 2021 Entitlements and from spending ownership funds on them. 2. In December 2021, Co -Owners Learned O Hill Is Processing a Liquor License for a Tenant at the Tennis Property He Never Disclosed 37. In October 2014, Grand Slam Tennis and its manager Sean Abdali (hereinafter collectively "Abdali"), started operating the tennis club at the Tennis Property without a written lease, apparently based upon a purported oral month -to -month agreement with O Hill calling for a $7,000 monthly license fee. Co -Owners are informed and believe, and thereon allege, the purported month -to -month arrangement with Abdali continues today, and the fee/rent Abdali is paying is well below market. 38. When Co -Owners learned Abdali was operating the tennis club, they asked O Hill -11- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 19 20 21 22 23 24 25 26 27 28 to get a basic written lease in place with Abdali that would provide for the monthly rent to be paid, length of the term, and Abdali's obligation to pay the property taxes and maintain liability insurance covering all the owners. In response to Co -Owners' request for a basic written lease with Abdali, O Hill apparently purported to promise Abdali, without Co -Owners' knowledge or consent, that he could operate the tennis club for 25 years. 39. At the arbitration with Justice King, O Hill testified that he intentionally did not involve Co -Owners when making purported promises to Abdali regarding the tennis club, nor did O Hill seek Co -Owners' approval before making such purported promises. Abdali testified Co - Owners never made any promises to him, and that he knew he needed Co -Owners to sign (as owners) any lease for the tennis club. 40. As part of the arbitration with Justice King, O Hill sought a declaration that Co - Owners had to sign a 22-year proposed lease with Abdali that O Hill had prepared and given to Abdali without Co -Owners' knowledge or consent. Yet, O Hill also testified at the arbitration that "[u]nder the [OIC] agreement each owner must consent to any grant of a leasehold interest" and that "a majority [of owners] must agree as it relates to a lease." (King Final Award at 11.) O Hill's testimony is consistent with section 3 of the OIC Agreement, stating: "The Owners acknowledge and agree that ... any leasehold interest [in the Tennis Property] ... may be granted, conveyed or so encumbered by the execution of the applicable instrument by each Owner." (Underline added.) 41. Justice King denied O Hill's claim, and agreed with Co -Owners, finding that Co - Owners had acted reasonably in declining to sign the proposed lease O Hill negotiated with Abdali. (King Final Award at 25-26.) 42. After Justice King issued his Final Award, Co -Owners sent O Hill letters on June 9, 2020, and July 28, 2020, again asking that he get a basic written lease in place for the tennis club setting forth the tennis club operator's obligations to pay rent, taxes and insurance, and with a reasonable lease term in the range of one to three years. O Hill ignored Co -Owners' requests. 43. In late November 2021, Co -Owners learned from reviewing the tennis club website (https://thetennisclubnb.com) that the club had 31 new pickleball courts. Apparently, several of the tennis courts at the club had been converted to pickleball courts, but O Hill bad not -12- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 W. informed Co -Owners about the new pickleball courts. Thus, on November 23, 2021, Co -Owners once again sent O Hill a letter asking (1) for an update on the status of a basic, straightforward written lease with Abdali, and (2) for an accounting of the tennis club's operations so they could understand how the 31 new pickleball courts at the club were impacting its membership and revenues. O Hill ignored Co -Owners' requests. 44. On or about December 8, 2021, Co -Owners learned that without their knowledge or consent, a liquor license application was being processed for the Tennis Property with the City, and that the applicant for the liquor license was Clubhouse ATP, LLCan entity Co -Owners had not heard of —and the application had been executed by O Hill on behalf of the Tennis Property ownership. Co -Owners are informed and believe, and thereon allege, that Exhibit E attached hereto is a copy of an application for a liquor license at the Tennis Property submitted by O Hill and Clubhouse ATP to the City on or about August 8, 2021. 45. Co -Owners also learned that Clubhouse ATP was, concurrent with its application with the City, also applying for a liquor license with the California Department of Alcoholic Beverage Control ("ABC"). Exhibit F attached hereto is a copy of an ABC website printout of December 9, 2021, showing Clubhouse ATP's pending application for a liquor license. 46. On December 10, 2021, Co -Owners sent O Hill a letter expressing surprise that Clubhouse ATP (an entity about which he had not informed them) and O Hill were seeking a liquor license for the Tennis Property. Co -Owners were concerned about, among other things, potential exposure and liability as property owners should alcohol be sold at the Tennis Property. Co -Owners asked O Hill to halt the liquor license application until they could understand what protections against liability and exposure would be in place, including insurance, along with asking O Hill to provide them with copies of the submittals made to the City and ABC as part of the use permit and liquor license applications as well as any purported lease agreement made with Clubhouse ATP for the Tennis Property. O Hill ignored Co -Owners' requests. 47. On December 16, 2021, the City Zoning Administrator approved O Hill's and Clubhouse ATP's use permit application for a liquor license at the Tennis Property. In response to the Co -Owners' objections, including that O Hill did not have the authority to sign the use permit -13- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 application on behalf of the ownership, the Zoning Administrator informed Co -Owners that it viewed their objections as pertaining to matters between the Tennis Property's owners in which the City did not want to get involved. The City also told Co -Owners they should take whatever action they believed appropriate to stop O Hill from proceeding with the use permit application. Co -Owners are informed and believe, and thereon allege, that as a condition for the Zoning Administrator agreeing to approve the use permit application, the City required O Hill to sign an agreement to indemnify and defend the City against any legal challenges to the use permit. 48. On January 3, 2022, Co -Owners filed an appeal of the Zoning Administrator's approval of the use permit for a liquor license, and informed the City of their intent to commence this arbitration seeking, among other things, a legal determination and declaration that O Hill did not, and does not, have the authority to sign and submit the use permit application for a liquor license on behalf of the Tennis Property ownership, and before he could do so he was required to get the Co -Owners' consent (which he did not have). Pursuant to Newport Beach Municipal Code (NBMC) section 20.64.030-B. La., a use permit approval by the City Zoning Administrator that is appealed has no force or effect as of the day the appeal is filed. 49. At the time of the submission of this Arbitration Demand to JAMS, Co -Owners' appeal of the Zoning Administrator's approval of the use permit had not yet been heard by the City's Planning Commission. 50. Because O Hill refused to respond to —let alone acknowledge —Co -Owners' requests for information about Clubhouse ATP, including their requests for copies of the submittals to the City and ABC for the use permit and liquor license O Hill and Clubhouse ATP were seeking along with any purported lease agreement with Clubhouse ATP, Co -Owners submitted a public records request to the City for documents relating to the use permit. In January 2022, the City produced responsive documents, including correspondence involving O Hill, that made it apparent that O Hill had purported to convey a leasehold interest in the tennis property to Clubhouse ATP, or he allowed Abdali to do so, without Co -Owners' knowledge or written consent as required under section 3 of the OIC Agreement. For example, the City produced the following: (a) November 10, 2021, email from Patrick Rolfes of Clubhouse ATP to Liz -14- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Westmoreland at the City regarding the use permit, stating: "We subleased the space on July 7, 2021 and we are hopeful we can get through this process so we can start doing business." (b) November 18, 2021, email from Liz Westmoreland at the City to O Hill stating that if the City grants the use permit and the ABC issues the liquor license to Clubhouse ATP that "it will be on the applicant [i.e., Clubhouse ATP] to comply with his private agreements including lease terms, etc." O Hill responded on November 19, 2021, saying: "Understood." 51. Co -Owners are also informed and believe, and thereon allege, that as part of the application for a liquor license at the Tennis Property that a written agreement was submitted to the ABC purporting to show Clubhouse ATP had a right to tenancy at the Tennis Property. Again, any such agreement purporting to convey a leasehold interest to Clubhouse ATP was made without Co - Owners' knowledge or consent and in violation of their rights under the OIC Agreement. 3. In February 2022, Co -Owners Learned O Hill Was Allowing Alcohol to Be Sold at the Tennis Property Without a License 52. The Alcoholic Beverage Control Act requires an establishment to be licensed before it can sell alcohol and any person violating the statute is guilty of a misdemeanor. Cal. Bus. Prof. Code §§ 23300, 23301. 53. In February 2022, Co -Owners were surprised to learn alcohol was being sold at the Tennis Property without a liquor license apparently at a restaurant called the Clubhouse Grill being operated by Clubhouse ATP. O Hill had failed to inform Co -Owners a restaurant was open and operating at the Tennis Property, let alone selling alcohol without a license. -15- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 54. Below are pictures of alcohol being sold at the Clubhouse Grill on February 8, 1 2022: Picture of Indian Pale Ale (IPA) draft beer purchased on tap at Clubhouse Grill on Tuesday, February 8, 2022. -16- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Thank you for your order. Below is a receipt for your recent visit to ClubHouse Grill_ trouble viewing this email' Picture of receipt from Clubhouse Grill showing IPA draft beer purchased one Tuesday, February 8, 2022, for $7.00. ClubHouse Grill 11 Clubhouse Drive Newport Beach, CA 92660 server: Che4l� Gues ount=' Ord a red: 2JB/22 - How was your visit? 1 IPA $7.00 55. Below are pictures of alcohol being sold at the Clubhouse Grill on Sunday, February 13, 2022: -17- ARBITRATION DEMAND AND STATEMENT OF CLAIMS sit W. WR it F tip j! tail CLUB ly BE jkc " / "' I 3w. Irmo! �m A 4:w 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Thank you for your order_ Below is a receipt for your recent visit to Clu bHouse Gril I trouble viewing this email' Picture of receipt from Clubhouse Grill showingCZ Bloody Mary with Titos Vodka purchased on Sunday, February 1 13, 2022, for $12.00. ClubHouse Grill 11 Clubhou&e Drive Newport Beach, CA 92660 Server. Check Guest aunt■ Ordered: 2113122- How Was your visit? 1 Tib= $17-00 56. Below are pictures of alcohol being sold at the Clubhouse Grill on Sunday, February 20, 2022: -19- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Picture of receipt from Clubhouse Grill showing a mixed drink with Titos Vodka purchased on Sunday, February 20, 2022 for $12.00. MbHoma Grill 11 CIwhhause Drive Newport Beach, CA 928BO Server; - -40 Check Guest Count; Ordefed: 2J20l2 - 1 Titas $12.00 -20- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 W. 57. On February 22, 2022, Co -Owners sent O Hill (as managing owner) a letter asking that he take whatever action necessary to cause anyone unlawfully selling alcohol at the Tennis Property —including Clubhouse ATP and Abdalito immediately cease and desist doing so. Co - Owners expressed to O Hill that in addition to exposing them to substantial financial liability by allowing alcohol to be sold at the Tennis Property, selling alcohol without a license was a crime. 58. On March 3, 2022, O Hill responded to Co -Owners' February 22, 2022, letter. He did not agree to stop the unlawful sale of alcohol at the Tennis Property nor deny it was taking place. Rather, O Hill somewhat bewilderingly stated that alcohol had been served at the Tennis Property "at tournaments and special events with a special catering permit for over 50 years" and that a "special permit" had been obtained by the Orange County Youth Sports Foundation for a January 29, 2022, event at the Tennis Property. 59. Co -Owners are informed and believe, and thereon allege, that even after O Hill received Co -Owners' February 22, 2022, cease and desist letter, alcohol continues to be sold at the Tennis Property without a liquor license and, thus, unlawfully. 4. In January 2022, O Hill Recommenced His Efforts to Interfere with Co - Owners' Exploration of a Tennis Property Redevelopment Opportunity 60. In the past, when Co -Owners have tried to explore redevelopment opportunities for the Tennis Property, O Hill has taken the position that his Master Plan is the only project that could get approved and any alternative opportunities were unworkable and not worth considering. O Hill's modus operandi is to hijack the process by not only refusing to cooperate in exploring redevelopment alternatives to his Master Plan but to block their fair consideration by attempting to manufacture community opposition to any such alternative project. 61. For example, in 2012 and unbeknownst to Co -Owners, O Hill hired the Chatten Brown law firm to file a lawsuit against the City in the name of the no -growth group "Friends of Good Planning", seeking to enjoin the City from processing the adjacent Golf Property tenant's plan to construct a new $40 million clubhouse because it was at odds with O Hill's Master Plan and despite the fact that the Golf Property lease plainly gave that right to the tenant. In March 2012, O Hill attended a City Council meeting and represented that he was in no way supporting or -21 - ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 sponsoring the Friends of Good Planning lawsuit. In March 2017, Chatten Brown sued O Hill personally for unpaid legal fees it had incurred at his direction for the Friends of Good Planning lawsuit in 2012. In June 2017, O Hill paid Chatten Brown $15,000 using Tennis Property ownership funds to settle that lawsuit — without informing Co -Owners. 62. In 2019, upon learning that Co -Owners were trying to obtain a redevelopment proposal for the Tennis Property from the ownership group operating the adjacent Golf Property, O Hill and Abdali (the tennis club operator) launched the website savethetennisclub.org seeking to spread misinformation about the potential redevelopment project and circulating a petition opposing it. Their website called out the Co -Owners' principals by name, Elliot Feuerstein and Iry Chase, claiming they "want to upend the General Plan approved by the voters of Newport Beach and eliminate the Tennis Club and the promised enhancements all together." 63. Thus, on January 5, 2021, when Co -Owners learned the City was updating its Housing Element to address the state mandate for more housing and was accepting proposals for projects that may help meet the housing need, and that Ryan Co. (an established developer) was interested in entering into a long-term ground lease for the Tennis Property and constructing a multifamily redevelopment project there that could pay the owners millions in rent each year, Co - Owners sent O Hill a letter asking that he have an open mind, and to not interfere, as they attempted to meaningfully explore a lease proposal with Ryan Co. 64. On January 19, 2021, Co -Owners sent O Hill a copy of a letter they informed him they intended to send to the City letting it know they were in discussion with a few developers interested in redeveloping the Tennis Property and these projects would seem to be good candidates for participation in the City's Housing Element Update, and Co -Owners hoped to share details about the projects with the City soon and to start exploratory discussions. O Hill did not object to Co -Owners sending their letter to the City. 65. On December 6, 2021, Co -Owners sent O Hill a letter letting him know they had negotiated and were in the process of drafting a proposed lease with Ryan Co. and expected to be able to share that lease with him for discussion within 30-60 days. Co -Owners also restated their request to O Hill that he not interfere with their efforts to secure a lease proposal from Ryan Co. -22- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 19 20 21 22 23 24 25 26 27 28 66. On or about January 13, 2022, Co -Owners learned that a petition was being circulated at the tennis club and to its members to drum -up opposition to a Ryan Co. project at the Tennis Property. Co -Owners are informed and believe, and thereon allege, that petition was generated by the current tennis club operator Abdali and O Hill, or at least with O Hill's knowledge. Exhibit G attached hereto is a copy of the Petition to Stop the Massive Development Proposed to Replace the Tennis Club at Newport Beach. 67. Co -Owners also learned of a new website—savethetennisclub.com/tennis-club/­ further seeking to solicit opposition to Ryan Co. which Co -Owners are informed and believe, and thereon allege, was generated by Abdali and O Hill, or with O Hill's knowledge. Exhibit H attached hereto is a copy of the savethetennisclub.com/tennis-club/ webpage. This is the same type of interference O Hill and Abdali engaged in 2019 when they created the website savethetenniclub.org upon learning of Co -Owners' efforts to solicit a proposal for a long-term ground lease for the Tennis Property from the operators of the adjacent Golf Property. 68. On January 21, 2022, Co -Owners sent O Hill a letter stating that the petition being circulated at the tennis club and the savethetennisclub.com website opposing Co -Owners' efforts regarding Ryan Co., which at that point merely consisted of obtaining a proposal, were acts of interference that needed to stop, and if it was shown that O Hill was involved as Co -Owners suspected that his conduct constituted a breach of his fiduciary duties and raised questions about his suitability to act as managing owner. Co -Owners asked that O Hill stop his efforts to incite opposition to a potential Ryan Co. project and that he instruct Abdali in writing to do the same. 69. On January 28, 2022, O Hill responded claiming to have no knowledge of the savethetennisclub.com website, but also saying he would not instruct Abdali to stop with his efforts to drum -up opposition to a potential Ryan Co. project, while taking an "I told you so" position and saying he was not surprised activists were mobilizing to oppose the project — at the same time conceding he had discussed the Ryan Co. project with those activists. O Hill's behavior once more shows the lengths he will go to prevent any consideration of alternatives to his Master Plan. - 23 - ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 W. IV. CO -OWNERS' ARBITRATION CLAIMS AGAINST O HILL FIRST CLAIM FOR RELIEF (Declaratory and Injunctive Relief) 70. Co -Owners incorporate by reference as though set forth in full, each and all the allegations set forth in Paragraphs I through 69, above. 71. Despite Co -Owners' November 23, 2021, December 6, 2021, and January 21, 2022, letters asking O Hill to confirm in writing he had stopped processing his New 2021 Entitlements, and Co -Owners' December 10, 2021, letter to O Hill asking that he stop processing the use permit for a liquor license at the Tennis Property, O Hill has failed to acknowledge the requests in Co - Owners' letters and continues to process such applications. As such, Co -Owners bring this arbitration to seek a legal determination and declaration that O Hill does not, and did not, have the authority to process his New 2021 Entitlements or the use permit for a liquor license. 72. An actual controversy has arisen and now exists between Co -Owners and O Hill concerning their respective rights and obligations under the OIC Agreement. Co -Owners contend that in November 2018 O Hill finished processing his few remaining 2012 Discretionary Entitlements, and, thus, any right he had to process his Discretionary Entitlements ran its course and O Hill cannot continue to spend ownership money further entitling his already fully entitled Master Plan — especially since he cannot compel Co -Owners to consent to his Master Plan as Justice King determined, and that he was required to disclose any new entitlements or development plan to Co -Owners (and to continue to provide them with meaningful information regarding the same) and to obtain their consent before he could spend ownership funds and process his New 2021 Entitlements and the use permit for a liquor license at the Tennis Property, and that he does not have the Co -Owners' consent to seek them. 73. An additional actual controversy has arisen and now exists between Co -Owners and O Hill under the OIC Agreement, in that Co -Owners are informed and believe, and thereon allege, that O Hill is purporting to convey a leasehold interest in the Tennis Property, or is allowing Abdali to do so with O Hill's knowledge, including to Clubhouse ATP, without Co - Owners' knowledge or written consent as required under section 3 of the OIC Agreement. -24- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 74. Further, after Co -Owners sent O Hill their February 22, 2022 cease and desist letter to stop the unlawful sale of alcohol at the Tennis Property, Co -Owners are informed and believe, and thereon allege, that alcohol continues to be sold at the Tennis Property without a liquor license. Thus, an additional actual controversy has arisen and now exists between Co - Owners and O Hill, and Co -Owners also seek a legal determination and declaration that O Hill must take any and all action necessary to cause anyone unlawfully selling alcohol at the Tennis Property to immediately cease and desist doing so. 75. Because of the urgency and importance of the issues presented by the parties' dispute, it is necessary and appropriate for the Arbitrator to resolve this dispute by issuing a declaration determining the respective rights and obligations of the parties with respect to the OIC Agreement. 76. Co -Owners have no adequate remedy at law and will suffer irreparable damage unless O Hill is enjoined from further taking the action identified herein. Co -Owners therefore seek a temporary restraining order, preliminary injunction and permanent injunction restraining O Hill, and agents, representatives, successors and assigns, from taking any further action in connection with the conduct identified herein. SECOND CLAIM FOR RELIEF (Breach of the OIC Agreement) 77. Co -Owners incorporate by reference as though set forth in full, each and all the allegations set forth in Paragraphs 1 through 76, above. 78. Recital C of the OIC Agreement states that O Hill's limited purpose as managing owner concerns accounting and administration duties, and section 7—specifying O Hill's limited authority under the OIC Agreement as managing owner —does not authorize O Hill to process entitlements for the Tennis Property. O Hill breached the OIC Agreement by processing, and spending ownership funds processing, his New 2021 Entitlements and the use permit for the liquor license without Co -Owners' knowledge or consent. Co -Owners learned about O Hill processing his New Entitlements and use permit with the City in November and December 2021, and despite Co -Owners' express written objections, and in breach of the OIC Agreement, O Hill - 25 - ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 19 20 21 22 23 24 25 26 27 28 has persisted in processing them. 79. Section 3 of the OIC Agreement states that any conveyance of a leasehold interest in the Tennis Property must be in a writing signed by all the owners. Id. § 3. Co -Owners are also informed and believe, and thereon allege, that, in breach of section 3 of the OIC Agreement, O Hill has purported to convey a leasehold interest in the Tennis Property without Co -Owners' knowledge or consent, including to Clubhouse ATP. 80. Section 7 of the OIC Agreement sets forth the duties of the managing owner, and section 7(e) provides that the managing owner is paid "an asset management fee" for performing those duties. Co -Owners are informed and believe, and thereon allege, that O Hill breached section 7 of the OIC Agreement by allowing alcohol to be sold at the Tennis Property without a liquor license and, thus, unlawfully and/or is being grossly negligent in performing his duties as managing owner by not preventing the unlawful sale of alcohol there. 81. Co -Owners have performed their obligations under the OIC Agreement except those which they have been excused or prevented from performing. 82. As a direct and proximate result of O Hill's breaches of the OIC Agreement, Co - Owners have suffered, and will continue to suffer, direct and foreseeable damages, including but not limited to, O Hill's improper and unauthorized expenditure of material sums of ownership money, in an amount to be determined at the arbitration hearing. THIRD CLAIM FOR RELIEF (Breach of Implied Covenant of Good Faith and Fair Dealing) 83. Co -Owners incorporate by reference as though set forth in full, each and all the allegations set forth in Paragraphs 1 through 82, above. 84. The OIC Agreement is subject to an implied covenant of good faith and fair dealing that all parties would act in good faith and with reasonable efforts to perform their contractual duties —both explicit and fairly implied —and not to impair the rights of other parties to receive the rights, benefits, and reasonable expectations under the Agreement. 85. O Hill breached the implied covenant of good faith and fair dealing by: (a) processing his New 2021 Entitlements and use permit with the City and -26- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 99 spending ownership funds doing so without Co -Owners' consent; (b) purporting to convey a leasehold interest in the Tennis Property —or allowing Abdali to do so with his knowledge, including to Clubhouse ATPwithout Co -Owners' consent; (c) interfering with Co -Owners' efforts to obtain a lease proposal from Ryan Co.; and (d) allowing alcohol to be sold at the Tennis Property without a liquor license. 86. Co -Owners have performed their obligations under the OIC Agreement except those which they have been excused or prevented from performing. 87. O Hill's failure to act in good faith has denied Co -Owners the full benefit of their bargain under the OIC Agreement. 88. As a result of O Hill's breach of the covenant of good faith and fair dealing, Co - Owners have suffered, and will continue to suffer, direct and foreseeable damages, in an amount to be determined at the arbitration hearing. FOURTH CLAIM FOR RELIEF (Accounting) 89. Co -Owners incorporate by reference as though set forth in full, each and all the allegations set forth in Paragraphs 1 through 88, above. 90. Co -Owners are unaware of the exact amount of ownership funds spent by O Hill on his New 2021 Entitlements or the use permit for a liquor license at the Tennis Property. The information necessary to ascertain those amounts is strictly within O Hill's control. Accordingly, Co -Owners seeks a forensic accounting of those amounts. 91. Co -Owners are unaware of the financial impact the new pickleball courts (see paragraph 41 above) have had on the tennis club's operation, and whether Clubhouse ATP or any other purported tenant is paying to, or sharing with, O Hill any income being generated by or at the tennis club other than the monthly rent O Hill reflects on the distribution summaries he provides to Co -Owners. The information necessary to ascertain those amounts is strictly within O Hill's control. Accordingly, Co -Owners seek a forensic accounting of those amounts and the -27- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 tennis club's operations. FIFTH CLAIM FOR RELIEF (Declaratory Relief) 92. Co -Owners incorporate by reference as though set forth in full, each and all the allegations set forth in Paragraphs 1 through 91, above. 93. Section 7(b) of the OIC Agreement provides that the owners of a majority of ownership interests in the Tennis Property not owned by the managing owner may elect to remove the managing owner for "cause" and appoint a new managing owner. Section 7(b) defines "cause" as "fraud, gross negligence or material default of a material obligation by Managing Owner." 94. An actual controversy has arisen and now exists between Co -Owners and O Hill concerning their respective rights and obligations under the OIC Agreement. Co -Owners are informed and believe, and based thereon allege, that cause exists, including based on O Hill's conduct alleged herein, to remove him as managing owner under the OIC Agreement. 95. Co -Owners have no adequate remedy at law and will suffer irreparable damage unless O Hill is enjoined from taking any further action purportedly on the basis that he is the managing owner. Co -Owners therefore seek a temporary restraining order, preliminary injunction and permanent injunction restraining O Hill, and his agents, representatives, successors and assigns, from taking any further action as the managing owner (including prohibiting him from spending Tennis Property funds, submitting entitlement applications purportedly on behalf of the Tennis Property owners, or purporting to convey a leasehold interest in the Tennis Property), and that O Hill and any other person or entity (including NBCC Land or NBCC L&I) with possession, custody or control of property of, or records relating to, the Tennis Property (including any bank account(s) and/or books and records), shall by personal service or otherwise fully cooperate with and assist the succeeding managing owner in taking and maintaining possession, custody, or control of such property and records and immediately transfer or deliver them to the succeeding managing owner. -28- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREFORE, Co -Owners pray for an Arbitrator's Award on their claims as follows: ON THE FIRST CLAIM FOR DECLARATORY AND INJUNCTIVE RELIEF 1. For a determination and declaration that O Hill was required to disclose to and obtain Co -Owners' consent before he could spend ownership funds on and process his New 2021 Entitlements and the use permit for a liquor license, and that he does not have the Co -Owners' consent to seek his New 2021 Entitlements or the use permit for a liquor license and he must halt their processing and withdraw them from the City. 2. For a temporary restraining order, preliminary injunction and permanent injunction restraining O Hill, and his agents, representatives, successors and assigns, from taking any further action processing his New 2021 Entitlements or the use permit for a liquor license, or spending ownership funds thereon, without first obtaining the consent of one or more of the Co -Owners. 3. For a determination and declaration that, under section 3 of the OIC Agreement, O Hill was required to disclose to Co -Owners and obtain their written consent prior to purporting to convey a leasehold interest in the Tennis Property, including to Clubhouse ATP. 4. For a temporary restraining order, preliminary injunction and permanent injunction restraining O Hill, and his agents, representatives, successors and assigns, from taking any further action purporting to convey a leasehold interest in the Tennis Property, including to Clubhouse ATP. 5. For a determination and declaration that O Hill must take any and all action necessary to cause anyone unlawfully selling alcohol at the Tennis Property to immediately cease and desist doing so. 6. For a temporary restraining order, preliminary injunction and permanent injunction restraining O Hill, and his agents, representatives, successors and assigns, and any alleged tenant or licensee to whom O Hill has purported to convey a tenancy or other right to occupy or operate at the Tennis Property, from engaging in the unlawful sale of alcohol at the Tennis Property without a liquor license. -29- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ON THE SECOND AND THIRD CLAIMS FOR BREACH OF CONTRACT AND BREACH OF THE IMPLIED COVENANT 7. For damages in an amount to be proven at trial. ON THE FOURTH CLAIM FOR AN ACCOUNTING 8. For a forensic accounting (1) of the exact amount of ownership funds spent by O Hill on the 2021 Project, 2021 New Entitlements and the use permit for a liquor license at the Tennis Property, and (2) of the tennis club's operations and revenues. ON THE FIFTH CLAIM FOR DECLARATORY RELIEF 9. For a determination and declaration that cause exists under the OIC Agreement to remove O Hill as managing owner. 10. For a temporary restraining order, preliminary injunction and permanent injunction restraining O Hill, and his agents, representatives, successors and assigns, from taking any further action purportedly on the basis as managing owner (including prohibiting him from spending Tennis Property funds, submitting entitlement applications purportedly on behalf of the Tennis Property owners, or purporting to convey a leasehold interest in the Tennis Property), and that O Hill and any other person or entity (including NBCC Land or NBCC L&I) with possession, custody or control of property of, or records relating to, the Tennis Property (including any bank account(s) and/or books and records), shall by personal service or otherwise fully cooperate with and assist the succeeding managing owner in taking and maintaining possession, custody, or control of such property and records and immediately transfer or deliver them to the succeeding managing owner. ON ALL CLAIMS: 11. For attorneys' fees incurred in this action pursuant to section 27 of the OIC Agreement. 12. For costs of suit and out-of-pocket expenses. 13. For such other relief as the Arbitrator deems just and proper. -30- ARBITRATION DEMAND AND STATEMENT OF CLAIMS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Dated: March 25, 2022 MICHAEL YODER O'MELVENY & MYERS LLP JACQB C. GONZALES 1c9 I law By: 11-Acob C Gon es Attorneys for Co-Ownlzr§70aimants Mesa Shopping Center -East LLC, Mira Mesa Shopping Center -West LLC, and Fainbarg III LP -31- ARBITRATION DEMAND AND STATEMENT OF CLAIMS Exhibit A RECORDlNQ REQUESTED BY AND WHEN RECORDED RETURN TO: O Hill Properties One Upper Newport Plaza Newport Beach, CA 92660 sU AGREEMENT BETWEEN REAL PROPERTY OWNERS BALBOA BAY CLUB RACQUET CLUB Newport Beach, California This Agreement Between Real Property Owners ("Agreement") is entered into by and between O Hill Properties, a California limited partnership ("O Hill"), The Fainbarg Trust dated April 19, 1982 ("TFC"), Mesa Shopping Center -East, a California general partnership (Mesa -East), Mira Mesa Shopping Center -West, a California general partnership ("Mira Mesa - West"), and Newport Beach Country Club, a California limited partnership ("NBCC Ltd"). O Trill, TFT, Mesa -Fast, Mira Mesa -West, and NBCC Ltd are sometimes referred to singularly as an "Owner" or "party" or collectively as the "Owners" or "parties". RECITALS A. The Owners desire to own, lease, manage, maintain, refinance, encumber and hold for investment, as tenants in common, that certain real property comprising approximately 6.099 acres with improvements thereon, commonly identified as Balboa Bay Club Racquet Club located at 1602 East Pacific Coast Highway, in Newport Beach, California and legally described in Exhibit "A" attached (the "Property"). B. The Owners have discussed the co -ownership of the Property and have concluded that to avoid conveyancing and ownership problems created by death, marital or other dissolution, bankruptcy or insolvency, disputes and the like, it is in the best interest of each Owner that the holding of the Property be governed by an agreement which defines the rights and duties of each Owner in the form of this Agreement. C. The Owners also believe it necessary and appropriate to have one Owner be the managing Owner for purposes of accounting and administration. 6110193 NOW, THEREFORE, in consideration of the foregoing Recitals and the conditions and covenants hereinafter contained, the Owners hereby agree as follows: 1. AGREIIIdENT AS TENANTS IN COMMON. The Owners agree to hold title to the Property as tenants in common to own, manage, maintain, lease, finance, refinance, and/or hold the Property for investment in accordance with the terms of this Agreement. The Owners may conduct such other activities with respect to the Property as are related to or compatible with the ownership of real estate. Subject to the provisions of this Agreement, each Owner retains the right to deal with his Interest in the Property (as defined in Section 3 below) as such Owner sees fit. 2. TERM. This Agreement shall become effective on the acquisition of the Property by the Owners, and shall continue thereafter until terminated pursuant to Section 13 below. 3. TITLE TO THE PROPERTY; CONVEYANCES AND LIENS. Concurrently with the recordation hereof, title to the Property shall be acquired by, and in the name of, the Owners as their interests appear in Exhibit "B" attached (each an "Interest") and shall thereafter be held in the name of the Owners as tenants in common. The Owners acknowledge and agree that the Property, or any interest therein, including any leasehold interest, any deed of trust granted or other encumbrances or liens placed thereon, may be granted, conveyed or so encumbered by the execution of the applicable instrument by each Owner, or if an Owner is obligated to convey, lease or encumber its interest in accordance with the terms of Section 4 of this Agreement and fails to do so within the time limits set forth herein, by the Managing Owner and the Additional Owner (both as defined in Section 7 below) in accordance with the powers of attorney granted to the Managing Owner and the Additional Owner as described in Section 7(c) below. Such conveyance or encumbrance by the.Managing Owner and the Additional Owner under such powers of attorney shall be binding upon each Owner. 4. FINANCING, REFINANCINGS, SALE AND LEASING. (a) The Owners acknowledge that concurrently with the acquisition of the Property, the Owners shall place financing on the Property which may have a balloon payment at the due date thereof (the "Acquisition Financing"). Each Owner acknowledges that there will be refinancings of the Acquisition Financing from time to time. The Managing Owner shall have the right to obtain such refinancing for the Property on then market rates and terms. Each Owner shall have a duty to fully cooperate and not interfere or impede, in any manner, -2- in such refinancings including but not limited to signing appropriate documentation (e.g. notes, deeds of trust, assignments of rents and leases, guarantees and the like) within ten (10) days after being requested to do so by Managing Owner. Each Owner shall be responsible for its respective share, as determined by its pro rats ownership Interest in the Property, of the payments of principal and interest and other costs owing under the Acquisition Financing and refinancings . The Acquisition Pinanci ng and refinancings, however, may be a joint and several obligation of the Owners. Refinancing shall only be permitted within two (2) years of the due date of the financing which then encumbers the Property and the amount shall not materially exceed the remaining principal balance of the then existing loan balance plus refinancing related costs, unless the new loan is non -recourse to the Owners and is approved by sixty-five percent (65 %) or more of the ownership Interests in the Property. (b) The Managing Owner shall list the property for sale and convey or otherwise transfer the Property if such transaction is approved by seventy percent (70%) or more of the ownership Interests in the Property. Each Owner shall have a duty to fully cooperate and not interfere or impede in any manner with such sale approved by seventy percent (70%) or more of the ownership Interests in the Property, including but not limited to the signing of a grant deed, sale agreements, assignment of leases and escrow instructions within ten (10) days after being requested to do so by Managing Owner. Any Owner who desires an exchange of its equity in the Property under Section 1031 of the Internal Revenue Code shall have the right to arrange for such exchange of its undivided ownership Interest, provided that under no circumstances shall the inability of any Owner to consummate such an exchange delay the sale of the Property. The other Owners, at no cost or expense shall cooperate in such exchange, however, no Owner shall be required to take title to an exchange or other property as a part of such duty to cooperate. (c) Managing Owner may amend, terminate or extend the ground lease of the Property only with the prior written consent of the Owners of a majority of the ownership Interests in the Property. Each Owner shall execute, any such amendment, termination or extension approved by a majority of the ownership Interests in the Property within ten (10) days after being requested to do so by Managing Owner. (d) Any Owner who has a duty to execute any refinancing, sale or lease documentation and fails or refuses to do so shall be liable for all costs, liabilities, damages, claims and expenses including attorney's fees and legal costs which results to the other Owners from such failure or refusal. 5. LIMPPATION OF OWNERS. Each Owner shall be subject to the following limitations: -3- (a) Each Owner hereby irrevocably waives any and all rights that such Owner may have to withdraw from the terms of this Agreement, maintain an action for the partition of the Property (unless Owners of 65 % or more of the Interests in the Property join or consent to such action), or otherwise force a sale of the Property during the term hereof, except as expressly provided herein. (b) No Owner shall be entitled to interest on such Owner's contribution toward the purchase of the Property. No Owner shall have the right to withdraw or reduce such Owner's contribution toward the purchase of the Property. No Owner shall have the right to demand property other than cash in return for such Owner's contribution toward the purchase of the Property. No Owner shall have priority over any other Owner either as to the return of contributions toward the purchase of the. Property or as to other distributions. 6. CASH CALLS. Each Owner shall pay (1) such Owner's share of losses and negative cash flow necessary to cover the costs of owning the Property in proportion to such Owner's respective Interest in the Property and (ii) any involuntary lien which encumbers an Owner's Interest (such as a tax, judgment or execution Tien or an attachment) (a "Cash Call"). If an Owner fails to pay its Cash Calll within twenty (20) days from the date set for such payment in a written notice that such amount must be paid from the Managing Owner (or any other Owner if the Managing Owner fails to send out a written notice when such Cash Call is necessary), such failure shall automatically constitute a granting by such Owner (a "Defaulting Owner") to the other Owners of the following alternative options in addition to all other remedies available at law: (i) the other Owners may advance the Defaulting Owner's required Cash Call, in the proportions agreed upon by such other Owners, and absent such an agreement, in the proportion which the Interest of an Owner desiring to make such advance bears to the Interests of all Owners desiring to make such advance, and the Defaulting Owner shall convey (or if necessary, the Managing Owner and any Additional Owner under the powers of attorney granted in Section 7(c) below shall convey) by grant deed a portion of Defaulting Owner's Interest in the Property in the proportion in which such advance bears to the Defaulting Owner's equity in the Property (the "Transferred Portion"). The determination of equity in the Property shall be based upon a ten percent (10%) capitalization rate of the preceding twelve (12) months net operating income, less the Defaulting Owner's prorata share of liens entered into by, or which encumber the Interests of, all of the Owners (the "Collective Liens") and outstanding or reasonably projected extraordinary expenses for the next one (1) year period. The Defaulting Owner shall remove liens from the title to the Transferred Portion so that the Transferred Portion conveyed to the Owners making such advance shall be free and clear of liens (except the Collective Liens), If the Defaulting Owner is unable to -4- deliver free and clear title to the Transferred Portion, the other Owners may purchase, at the same price paid for the Transferred Portion so much of the Interest of the Defaulting Owner (the "Additional Portion") so that enough cash is generated to allow for the delivery of the Transferred Portion and the Additional Portion by the Defaulting Owner to the other Owners free and clear. If the Property is not subject to a long term ground lease or long term ground leases (of if any such leases are then in default beyond any curative period), the equity in the Property of the Defaulting Owner shall be 90% of the appraised value of the entire Property subject to all non monetary encumbrances thereof, based upon the highest and best use reasonably available for the Property, as determined by an independent MAI appraiser selected by a majority of the ownership Interests owned by the Non Defaulting Owners (the cost of which appraisal shall be charged to the Defaulting Owner) times the percentage Interest of the Defaulting Owner in the Property, and the Defaulting Owner's prorata share of the Collective Liens shall be subtracted therefrom; (ii) the other Owners may admit an additional owner upon the terms and conditions of this Agreement, which additional owner shall advance the Defaulting Owner's required Cash Call and receive a portion of the Defaulting Owner's Interest in the Property on. the same basis as preceding subparagraph (i); (iii) the Managing Owner may borrow in the name of or on behalf of the Defaulting Owner the amount of the Cash Call and pledge or otherwise encumber the Interest in the Property of the Defaulting Owner to secure the loan, or (iv) the other Owners may advance to the Defaulting Owner the amount of such unpaid Cash Call owing by Defaulting Owner in which case a Promissory Note shall be executed by Defaulting Owner in'favor of the other Owners who have advanced the Cash Call of the Defaulting Owner, a copy of which Promissory Note is attached as Exhibit "C" hereto and incorporated herein by this reference ("Promissory Note"). At the. election of the Owners who make an advance to the Defaulting Owner, the Promissory Note shall be secured by a deed of trust upon the Defaulting Owner's entire interest in the Property, and the Defaulting Owner shall execute all documents reasonably necessary to effectuate such encumbrance. If an expense, loss or damages are incurred by the Owners as the result of a Defaulting Owner not making a Cash Call on or before the date set for the Cash Call in the written notice sent out by the Managing Owner (or the other Owners, as applicable), the Defaulting Owner shall immediately pay such expense or loss in addition to any other damages caused by such failure. 7. MANAGING OWNER. (a) The Owners hereby appoint 0 Hill and its successors and assigns as Managing Owner. The duties of Managing Owner shall be as follows: (i) Managing Owner shall perform all of the duties of Managing Owner .5- as set forth in this Agreement. (H) Managing Owner is authorized to take actions which are consistent with the terms of this Agreement, to carry out this Agreement including but not limited to the right to hire andlor retain on behalf of the Owners accountants, lawyers, appraisers, mortgage brokers, insurance agents and consultants which Managing Owner deems appropriate in its reasonable discretion,. (iii) Managing Owner shall approve and coordinate the payment of the expenses of the ownership of the Property, (iv) Managing Owner shall maintain the books and records of the Owners at the principal business office of Managing Owner. (v) Managing Owner shall have a fiduciary duty to prepare a written status and financial report for the Property and provide copies to each Owner within ninety (90) days after request from another Owner, and within seventy-five (75) days after the end of each calendar year. (b) The Owners of a majority of the ownership Interests in the Property shall have the right to select a new Managing Owner in place of O Hill, its successors and assigns if Robert O Hill is no longer the person primarily responsible for the overall management of the entity which constitutes the Managing Owner. In the event a Managing Owner sells its entire interest in the Property or resigns as Managing Owner, the Owners by election of the Owners who own a majority of the Interests in the Property shall appoint a new Managing Owner. At any time, Managing Owner may be removed with cause by the written election of the Owners of a majority of the ownership Interests in the Property not owned by the Managing Owner, and a new Managing Owner shall be appointed by the Owners who own a majority of the ownership Interests in the Property. The votes cast by the Managing Owner in favor of a new Managing Owner may not be cast for the removed Managing Owner or any transferee of the removed Managing Owner's interests, If the removed Managing Owner does not vote to appoint a new Managing Owner within ten (10) days of being requested to do so by the other Owners, then the new Managing Owner shall be appointed by Owners of a majority of the ownership Interests in the Property not owned by Managing Owner. Such resignation or removal, and the new appointment shall be recorded in the office of the Orange County Recorder. In the event there is no Managing Owner, all actions of the Owners with respect to the Property shall require the unanimous written consent of the Owners, "Cause" as used herein shall mean fraud, gross negligence or a material default of a material obligation by Managing Owner. The reasons for removal of a Managing Owner shall be material and specifically stated in the written notice of removat. (c) Managing Owner is hereby appointed as attorney in fact for each Owner for the purpose of taking all actions which are approved in writing by the requisite percentage -6- of ownership Interests in the Property or which the Managing Owner is otherwise allowed or authorized to take hereunder, including execution of deeds, deeds of trusts, notes, assignment of leases, assignments of rents and leases, guarantees, lease amendments, extensions or terminations, all in the name, place and stead and on behalf of each Owner with the same validity and effect as if such Owner had executed same. Each Owner specifically agrees to be bound by all actions validly taken under such power of attorney. This power of attorney is coupled with an interest and is irrevocable. Each Owner also hereby appoints each other Owner as attorney in fact for such Owner for purposes of acting as an additional signatory to any action undertaken by Managing Owner pursuant to the provisions of Section 4 hereof, and of the power of attorney granted Managing Owner herein (each, an "Additional Owner"). (d) Except for the protection of the Property or in the case of an emergency, no material sums shall be expended for capital improvements without the prior written consent of Owners who hold a majority of the Interests in the Property. (e) As compensation for the duties of Managing Owner under this Agreement, Managing Owner shall be reimbursed reasonable out of pocket costs incurred and paid to unaffiliated third parties and shall receive an asset management fee which shall be equal to one-half percent ('!z %) of the gross receipts from the operations of the Property, payable monthly. Managing Owner may deduct such amounts due Managing Owner or third parties from revenue received from the.Property, but shall identify amounts charged to the Owners, on at least a quarterly basis. (f) The Managing Owner shall not have the right to retain counsel at the Owner's expense for a dispute between the Owners, unless the dispute results from a breach or default under the terms of this Agreement by an Owner or the Owners, other than the Managing Owner. 8. DISTRIBUTIONS. Distributions of cash to the Owners shall be made as follows: (a) Cash from operations shall be distributed to the Owners in accordance with their respective Interests in the Property on a monthly basis; provided, however, that the Managing Owner shall be entitled to maintain reasonable reserves for any future anticipated expenditures related to the ownership of the Property. (b) Refinancing proceeds shall be distributed to the Owners in accordance with their respective Interests in the Property; provided, however, the Managing Owner shall be entitled to retain on behalf of the Owners the following refinancing proceeds: (i) such portion of the refinancing proceeds as the Owners of a majority of the Interests in the Property deem necessary for capital improvements to the Property, and (ii) such portion of the refinancing proceeds as may be necessary to establish reasonable reserves for anticipated future -7- expenditures of the Owners. (c) Net proceeds from the sale of the Property shall be distributed to the Owners in accordance with their respective interests in the Property. Net proceeds from the sale of the Property shall be defined as the gross proceeds from the sale of the Property, less (i) all costs associated with such sale, (ii) payment of any encumbrance against the Property (unless assumed by the buyer with seller released from liability thereon), (iii) payment of any other expenses related to ownership of the Property, and (iv) reasonable reserves for the payment of any future expenses related to the Property anticipated by the Managing Owner, during the one (1) year following the sale of the Property. The Managing Owner shall account for and distribute such reserve to the Owners within one (1) year following the sale of the Property, except to the extent that such reserve is still required to be maintained for a specific, then readily identifiable reasonably anticipated future expense. in the event the Managing Owner retains such reserves for a period in excess of 12 months for such specific purpose, such reserve shall be accounted for and distributed as soon as reasonably possible following satisfaction or elimination of the obligation for which the reserve was created. (d) Notwithstanding Section 8(a), Section 8(b) and Section 8(c) to the contrary, (i) cash that would otherwise be distributed to an Owner shall instead be distributed to the other Owners to the extent provided in the Promissory Note, or to otherwise discharge all obligations of a Defaulting Owner under Section b above and (ii) the reserves retained under Section 8(a), Section 8(b) and Section 8(c) above shall not exceed $100,000 in the aggregate, without the prior written consent of the Owners of a majority of the Interests in the Property, 9. BOOKS AND RECORDS. Such books of account and records as are maintained by or for the Property shall be kept at the principal business office of the Managing Owner and be open to inspection by any Owner or accredited representative of any Owner, at a reasonable time upon reasonable advance notice. 'Each Owner shall have the right to make a separate audit of such books and records of the Property at such Owner's own expense; provided, however, if the audit is requested by Owners of at least fifty percent (50%) of the Interests in the Property, the audit shall be at the expense of all of the Owners. 10. CONTINUATION. The bankruptcy, foreclosure, tax lien, attachment or execution of judgment or other involuntary lien, insanity, disability, distribution, death or dissolution of or against an Owner shall not terminate the effects of this Agreement. Upon such an occurrence, the Interest in the Property of such Owner shall become vested in the guardian, administrator, executor, tnistee, other legal representative or person or entity - entitled to the Interest in the Property of such Owner, who shall acquire all of the rights and -8- obligations provided in this Agreement and shall be subject to and bound by all of the terms and conditions of this Agreement; provided, however, in the case of involuntary liens, attachments, judgments or executions that such legal representative or person or entity shall be entitled only to receive distributions on account of such Interest in the Property as provided for in Section 8 above and shall have no management or other decision malting authority. 11. INCOME TAR CONSEQUENCES. Each.Owner acknowledges that the tax consequences of an investment in the Property is a matter upon which such Owner's own personal tax adviser must conclude. Each Owner shall bear the income tax consequences of such,Owner's interest in the Property, which may be different than (i) such Owner's pro rata share of the purchase price of the Property as a result of the effects of a.carryover basis in the Property, or (ii) such Owner's actual share of the cash distributions from the Property. 12. . TENANCY IN COMMON - NOT A PARTNERSHIP. Each Owner agrees that the Ownership of the Property is a tenancy in common and not a partnership. Each Owner agrees to remain excluded from all of the provisions of Subchapter K of Chapter 1 of the Internal Revenue Code of 1986, as amended. Each Owner hereby covenants and agrees that each Owner shall report on such Owner's respective Federal and State income tax return, such Owner's respective share of items of income, deduction and credit which results from holding of its Interest in the Property, in a manner consistent with a tenancy in common commencing with the taxable year of the acquisition of the Property. No Owner shall notify the Commissioner of Internal Revenue (the "Commissioner") that such Owner desires that the Owners be treated as a partnership and that Subchapter K of the Code applies. Each Owner hereby agrees to indemnify and hold each other Owner free and harmless from all cost, liability, tax consequence and expense, including attorneys fees, which results from any Owner so notifying the Commissioner. 13. TERMINATION. This Agreement shall be immediately terminated upon the happening of any of the following events: (a) The sale or other disposition of all of the Property. (b) The unanimous decision of the Owners that this Agreement be terminated, in which event the Owners shall hold the Property as tenants in common and shall be governed by the laws of the State of California. (c) The purchase by one Owner of all the Interests of the other Owners in the Property. I Us 14. ONION TO PURCHASE. (a) If an Owner desires to seR its Interest in the Property or a portion of its Interest in the Property, O Hill and its successors, as consideration for its role in the acquisition of the Property, shall have a first right to purchase all or a portion of such Interest in the Property. A selling Owner shall notify O Dill in writing of the portion of the Interest selling Owner desires to sell and selling Owner's desired price for such Interest. O Hill shall have thirty (30) days from the date it receives proper written notice to notify selling Owner that it will purchase all or a specific portion of the Interest being offered for sale by selling Owner. 0 Hill and selling Owner shall meet and try to agree on a purchase price. If, after thirty (30) days, O Hill and selling Owner are unable to agree on a purchase price then, at their expense, each will retain an MAI appraiser to appraise the entire Property without discount for partial ownership subject to all non monetary encumbrances thereof, including but not limited to any ground lease of the Property, based upon the highest and best use reasonably available for the Property. Such appraisals shall be completed within sixty (60) days and exchanged between the parties. If the values of the two MAI appraisals are within five percent (5 %) of each other, using the larger number as the denominator, the appraised value of the entire Property shall be an average of the two appraisals, less three percent (3 %). If the two MAI appraisals are not within five percent (5 %) of each other then the two (2) designated appraisers shall agree upon and retain a third appraiser who will be given the completed appraisals and all appropriate back-up valuing information and such third appraiser shall first attempt to mediate a compromise value between the three (3) appraisers. If the compromise value cannot be reached between the three (3) appraisers within thirty (30) days then the third appraiser shall reach a conclusion as to value (which shall be not less than the lower of the two (2) appraisals, and no greater than the higher of the two appraisals) and the two closest conclusions as to value shall be averaged and the average, less three percent (3%) shall be deemed the appraised value of the entire Property. The purchase price shall be such appraised value times the ownership Interest percentage being sold, less the selling Owner's prorata share of any Collective Liens. The purchase shall be completed on or before one hundred and twenty (120) days after the purchase price is finally determined. The Interest being sold shall be delivered free and clear of all liens (except the Collective Liens). Any Interest of the selling Owner not purchased by O Hill may be purchased on the same basis by the other Owners. Such other Owners shall elect to purchase such interest within ten (10) days after being advised in writing of the amount of the above determined purchase price. If the other Owners elect to purchase in the aggregate more than the Interest being offered, each Owner may purchase the portion of the Interest so offered as agreed upon by the other Owners desiring to purchase a portion of the offered Interest, and absent an agreement reached between them, each may purchase a percentage of the remainder of the Interest which the -10- amount offered to be purchased by an Owner bears to the amount offered to be purchased by all Owners, but not less than that portion of the remainder of the interest offered which the then Interest of such Owner bears to the then Interests of all Owners electing to purchase such remainder. Any interest not purchased by an Owner may be sold to a third party reasonably approved by the Managing Owner. If such sale does not occur within one (1) year after the purchase price is determined, the sale shall again be subject to the above provision. (b) The following transfers ("Permitted Transferee") shall not be subject to the provisions of Section 14(a) above: (i) A transfer to any lineal descendent of a current trustee or general partner of one of the Owners; (ii) A transfer to a trust for the benefit of any lineal descendent of a current trustee or current general partner of any of the Owners; (iii) A transfer to any successor trustee or distribution to a beneficiary,, where one of the current Owners is a trust; and (iv) A transfer to any partner or group of partners who consist of one of the current existing partners of an Owner, where such Owner is a partnership. (c) The rights of O Hill and its successors under Section 14(a) above shall expire upon the sale of the Interest of O Hill to a person or entity in which O Hill, or a Permitted Transferee of O Hill, has no interest. 15. NOTICES. All notices under this Agreement must be in writing and shall be deemed to have been duly given if delivered personally or mailed, postage prepaid, by certified United States mail, return receipt requested, addressed to the Owner to be notified. Such notice shall be deemed to have been given as of the date. so delivered, if delivered in person, or upon deposit thereof in the United States mail. For the purposes of notice, the addresses of the Owners until changed as hereinafter provided, shall be as set forth in Exhibit "B" attached hereto. Each Owner shall have the right to change the address to which notice to such Owner is to be given by giving written notice thereof to all other Owners. Managing Owner shall maintain a current list of each recognized. Owner of the Property (as described in Section 19 below), and the address and percentage interest owned by each such Owner. Managing Owner shall provide such information to any Owner upon written request to do so. 16. UNENFORCEABLE TERMS. In the event that any provision of this Agreement shall be unenforceable or inoperative as a matter of law, the remaining provisions shall remain in full force and effect. 17. TIME OF ESSENCE. Time is the essence of this Agreement and the -11- provisions contained herein and each and every provision hereof. 18. AMENDMENIS. This Agreement may be amended. only by a written amendment signed by all Owners whose signatures shall be notarized and recorded in the . County of Orange. Any amendment or modification of this Agreement shall be dated, and if any conflict arises between the provisions of said amendment or modification and provisions incorporated in earlier documents, the most recent provisions shall be controlling. 19. BINDING EFFECT. This Agreement shall inure to the benefit of and shall be binding upon the Property and the Owners and their respective heirs, successors, legal representatives and. assigns. Each subsequent Owner of a portion of the Property shall be bound by the provisions hereof as if such subsequent Owner had assumed this Agreement. No subsequent Owner need be recognized as such until such subsequent Owner has given each other Owner written notice of the acquisition of such interest in the Property by such subsequent Owner pursuant to the notice provisions of Section 15 above, which each Owner and each subsequent Owner agrees to do or cause to be done. 20. ENTIRE AGREEMENT. This Agreement contains the entire agreement between the Owners and supersedes any prior or concurrent written or oral agreement between said parties concerning the subject matter contained herein. There are no representations, agreements, arrangements or understandings, oral or written, between or among the Owners relating to the subject matter contained in this Agreement, which are not fully expressed herein. 21, GENDER. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the person, persons, entity or entities may require. 22, CAPTION HEADINGS. Captions at the beginning of each numbered Section of the Agreement are solely for the convenience of the parties and shall not be deemed part of the context of this Agreement. 23. NEGOTIATED TRANSACTION. The provisions of this Agreement were negotiated by all of the parties hereto and said Agreement shall be deemed to have been drafted by all of the parties thereto. 24. FURTHER ASSURANCES. Each Owner hereby agrees to promptly sign any -12- additional instruments or documents which are necessary or appropriate to carry out the intent and purpose of this Agreement. 25. SPOUSES. Some of the Owners are married and may in the future take title to an Interest in the Property with their respective spouses (the "Married Owners"). For the protection of the remaining Owners, any interest in the Property held by Married Owners shall be deemed to be held by the husband, as to an undivided one-half (x/2) interest and by the wife, as to an undivided one-half (112-) interest. For the purpose of voting upon any issue upon which the Owners may vote pursuant to the terms and conditions of this Agreement, the husband and wife shall each be deemed to own an undivided one-half (�A) interest in the interest of such Married Owners. Each Married Owner acknowledges and agrees that he/she shall do nothing to impede or impair the rights of the other Owners in an attempt to gain leverage upon his/her spouse. In the event an Owner takes title to an Interest in the Property solely in their name, they shall obtain and record a quitclaim deed from their respective spouses so that the Owner in whose name the interest in the Property is held shalt have the right, power and authority to deal with the Property alone and without the consent of his/her spouse. In the event that any such Owner fails to obtain such quitclaim deed and damages result to the remaining Owners, such Owner who so fails to obtain such quitclaim deed shall be liable for the resulting damages. 26. ARBITRATION OF DISPUTES: ALL DISPUTES ARISING UNDER THIS AGREEMENT WILL BE RESOLVED BY SUBMISSION TO ARBITRATION AT THE ORANGE COUNTY OFFICES OF JUDICIAL ARBITRATION & MEDIATION SERVICES, INC. ("TAMS") FOR BINDING ARBITRATION. THE PARTIES MAY AGREE ON A RETIRED MOB FROM THE YAMS PANEL. IF THEY ARE UNABLE TO AGREE, JAMS WILL PROVIDE A LIST OF THREE AVAILABLE JUDGES AND EACH PARTY MAY STRIKE ONE. THE REMAINING JUDGE WILL SERVE AS THE ARBITRATOR AT THE ARBITRATION HEARING. THE PARTIES AGREE THAT ARBITRATION MUST BE INITIATED WITHIN ONE YEAR AFTER THE CLAIMED BREACH OCCURRED AND THAT THE FAILURE TO INITIATE ARBITRATION WITHIN THE ONE-YEAR PERIOD CONSTITUTES AN ABSOLUTE BAR TO TIM INSTITUTION OF ANY NEW PROCEEDINGS. THE AGGRIEVED PARTY CAN INITIATE ARBITRATION BY SENDING WRITTEN NOTICE OF AN INTENTION TO ARBITRATE BY REGISTERED OR CERTIFMD MAIL TO THE OTHER PARTY AND TO JAMS. THE NOTICE MUST CONTAIN A DESCRIPTION OF THE DISPUTE, THE AMOUNT INVOLVED, AND THE REMEDY SOUGHT, IF AND WHEN A DEMAND FOR ARBITRATION IS MADE BY EITHER PARTY, THE PARTIES AGREE TO -13- EXECUTE A SUBMISSION AGREEMENT, PROVIDED BY JAMS, SETTING FORTH THE RIGHTS OF THE PARTIES IF THE CASE IS ARBITRATED AND THE RULES AND PROCEDURES TO 13B FOLLOWED AT THE ARBITRATION HEARING. THE ARBITRATOR SHALL, AT THE MOTION OF A PARTY, PERMIT AND ORDER SUCH DISCOVERY ON THE PART OF SUCH PARTY AS HE DETERMINES TO BE REASONABLE AND APPROPRIATE TO THE DISPUTE BEFORE HIM. NOTWITHSTANDING THE ABOVE, AT LEAST TWO WEEKS PRIOR TO THE ARBITRATION, EACH PARTY MUST MAKE A FULL DISCLOSURE TO THE OTHER PARTY OF (i) ALL DOCUMENTS TO BE PRESENTED BY SUCH PARTY AND (ii) ANY WITNESSES TO BE CALLED BY SUCH PARTY. NOTHING IN THIS PARAGRAPH SHALL IN ANY WAY LIMIT OR OTHERWISE RESTRICT A PARTY' S RIGHT OR ABILITY TO OBTAIN INJUNCTIVE RELIEF OR APPOINTMENT OF A RECEIVER THROUGH THE COURT SYSTEM. NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN COURT OR JURY TRIAL. BY Mln4LING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, EXCEPT AS PROVIDED HEREIN, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALWORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBI RATION OF DISPUTES" PROVISION TO NEUTRAL ARBITRATION. O Hill: L2mrzi TFT: f ' 1 Mesa -East: 145K- I I Ef: — } Mira Mesa West f &2 [ ]' NBCC Ltd: 27. COST OF ENWRCE VIENT. Should any dispute arise between the parties hereto or their legal representatives, successors or assigns concerning any provision of this -14- Agreement or the rights and duties of any person in relation thereto, the party prevailing in such dispute shall be entitled, in addition to such other relief that may be granted, to reasonable attorneys fees and legal costs in connection with such dispute. For purposes of this Paragraph, a dispute shall include, but not be limited to, an arbitration proceeding or a court action for injunctive relief. 28. GOVERNING LAW. This Agreement shall be governed by the laws of the State of California and the venue for any dispute shall be Orange County, California. EXECUTED as of March 0f994, at Newport Beach, California. Owners: O Hill Properties, a California limited partnership By: / r Robert O U 1, its General Partner The Fainbarg Trust, dated April 19, 1982 By: ON - t Allan Fain arg, TMstee, Newport Beach Country Club, a California limited partnership By: O Hill Properties, a California limited partnership Its General Partner $Y f�- . � Robert �WFM - General Partner -15- Mesa Shopping Center -East A California General Partnership By:-..Q.,Q Arnold D. Feuerstein Managing General Partner By: Elliot Feuerstein Managing General Partner Mira Mesa Shopping Center -West A California General Partnership By:• --- Arnold D. Feuerstein Managing General Partner By; Elliot Feuerstein Managing General Partner STATE OF CALIFORNIA COUNTY OF ORANGE On elkiE1'4 ', 1 `i 7 , before me a Notary Public in and for said County and State, personally appeared Robert O Hill, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal. Lary Public in and or sai@ County acid State STATE OF CALIFORNIA COUNTY OF ORANGE YVONNi N. RiTCHOT z ? t COM #055585 z z ,p Notary Pobric calilotnta ORANGE COUNTY tornm exphes FED 09,1906 On before me a Notary Public in and for said County and State, personally appeared Allau Fainbnally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal N in and for said County a d State -16- 1 8Wt*MM'0XP1r09FE609 B iCNE N. RI coMu. #M585 a Z Notary PubliaCWtMia R ORANGE COUNTY 49�]r r"'� STATE OF CALIFORNIA COUNTY OF ORANGE On �7744e k � /991� , before me a Notary Public in and for said County and State, personally appeared Robert 0 Hill, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal. �Xitary Public in and for said County and State STATE OF CALIFORNIA COUNTY OF ORANGE `YVONNE N. RITONQT comm, #953895 •'o NOLW Pvbft- Irma ORANGE COUNTY hfy comm. erpkm FEB 09,106 On di � 95/ , before me a Notary Public in and for said County and State, personally appeared Arnold D. Feuerstein, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State STATE OF CALIFORNIA COUNTY OF ORANGE SI./!✓YlIlfr/Crl1,�II1f �iJJSt INC tORMUCOUNly Ex I 5 ! On jeAdAm If y y , before me a Notary Public in and for said County and State, personally appeared Elliot Feuerstein, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State Sr.��✓-�^✓r✓./Y.r✓• 1.�` ma's .irr , STATE OF CALIFORNIA COUNTY OF ORANGE On , before me a Notary Public in and for said County and State, personally appeared Arnold D. Feuerstein, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State STATE OF CALIFORNIA COUNTY OF ORANGE On , before me a Notary Public in and for said County and State, personally appeared Elliot Feuerstein, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State -18- EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY Parcel 1: That portion of Block 93 of Twine's Subdivision in the City of Newport Beach, County of Orange, State of California, as per Map recorded in Book 1 Page 88 of Miscellaneous Maps in the Office of the County Recorder of said County described as follows: Lot A as shown on that certain Parcel Map filed October 10, 1967 in Book 10 Page 20 of Parcel Maps in the Office of the County Recorder of said County, and Parcels 1, 2 and 3 as shown on that certain Parcel Map filed February 11, 1977 in Book 92 Pages 13 and 14 of Parcel Maps, in the Office of the County Recorder of said County. Parcel 2: As easement for ingress and egress over the most Southerly 190.00 feet of Parcel 1, in the City of Newport Beach, County of Orange, State of California, as shown on that certain Parcel Map filed October 10, 1967 in Book 10 Page 20 of Parcel Maps, in the Office of the County Recorder of said County. EXHIBIT "B" OWNERSHIP INTEREST IN THE PROPERTY Name and Address of Owner 'Interest in property Allan and Sara Fainbarg, Trustees 25% of The Fainbarg Trust dated April 19, 1982 890 W. Baker Costa Mesa, CA 92626 Mesa Shopping Center -East 15 % c/o Arnold Feuerstein 2293 W. Ball Road Anaheim, CA 92805 Mica Mesa Shopping Center -West 10% clo Arnold Feuerstein 2293 W. Bail Road Anaheim, CA 92805 With a copy of any notices to: Mesa Shopping Center -East c/o EJlliot Feuerstein 8294 Mira Mesa Blvd. San Diego, CA 92126 Newport Beach Country Club 25 % One Upper Newport Plaza Newport Beach, CA 92660 Attn: Robert O Hill O Hill Properties 25 % One Upper Newport Plaza Newport Beach, CA 92660 Attn: Robert O Hill FOR VALUE RECEIVED, to PROMISSORY NOTE Newport Beach, California ("Maker") hereby promises to pay , or order ("Holder"), at or such other place or places as may be designated by Holder from time to time, the sum of payable as specified herein. This Promissory Note ("Note") shall bear interest at the prime commercial lending rate of Bank of America, plus two and one half percent (21h %) per annum but not to exceed the maximum rate allowed by law. This Note shall be due and payable on or before the date which is two (2) years from the date of this Note. Maker and Holder intend that this Note shall be recourse to Maker. However, it is Maker's and Holder's intention that Holder's first recourse shall be against the proceeds that would be otherwise payable to Maker as a result of Maker's ownership of an undivided % interest in certain real property commonly known as The Newport Beach Country Club, and legally defined in any Deed of Trust with Assignment of Rents encumbering such real property as security for this Note ("Property"). As a credit against sums owed by Maker to Holder, Holder shall be entitled to receive 100% of the cash distributions which would otherwise be distributed to Maker as a result of its ownership interest in the Property, up to an aggregate sum equal to the principal amount of this Note ($ ) plus accrued interest. Maker hereby agrees to pay all costs and expenses, including reasonable attorneys fees, incurred by Holder and arising out of or related to the collection of any amounts due hereunder or the enforcement of any rights provided for herein, or in any other instrument now or - hereafter securing Maker's obligations under this Note, whether or not suit is filed. Maker waives all rights of set-off, deduction and counter claim with respect to this Note. Any amount which Maker contends are owed by Holder shall be sought by independent action. To The extent permitted by applicable law, the defense of any statute of limitations is hereby waived by Maker. This Note shall be governed by and construed in accordance with the laws of the State of California. This Note is secured by a Deed of Trust with Assignment of Rents, encumbering Maker's ownership interest in the Property, executed by Maker for the benefit of Holder.