HomeMy WebLinkAbout03_Annual Review of Uptown Newport Development Agreement_PA2014-039
CITY OF NEWPORT BEACH
ZONING ADMINISTRATOR STAFF REPORT
October 27, 2022
Agenda Item No. 3
SUBJECT: Annual Review of Uptown Newport Development Agreement
(PA2014-039)
▪ Development Agreement No. DA2012-003
SITE LOCATION: 4311-4321 Jamboree Road
APPLICANT/OWNER: Uptown Newport, LP (TSG-Parcel 1, LLC)
PLANNER: Chelsea Crager, Senior Planner
949-644-3227, ccrager@newportbeachca.gov
ZONING DISTRICT/GENERAL PLAN
• General Plan: MU-H2 (Mixed-Use Horizontal 2)
• Zoning District: PC 58 (Uptown Newport)
PROJECT SUMMARY
An annual review of Development Agreement No. DA2012-003 (DA) for Uptown Newport
Planned Community, pursuant to Section 15.45.080 of the Newport Beach Municipal Code
and Section 65865.1 of the California Government Code.
RECOMMENDATION
1) Conduct a public hearing;
2) Find the annual review is exempt from the California Environmental Quality Act
(“CEQA”) pursuant to Section 15321, Class 21 (Enforcement Actions by Regulatory
Agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Division
6, Chapter 3 because it has no potential to have a significant effect on the
environment;
3) Find that the applicant has demonstrated good faith compliance with the terms of
Development Agreement No. DA2012-003; and
4) Receive and file the Annual Report of Development Agreement for Uptown Newport
Planned Community (Attachment No. ZA 2).
1
Annual Review of Uptown Newport Development Agreement (PA2014-039)
Zoning Administrator, October 27, 2022
Page 2
Tmplt: 01/12/18
BACKGROUND
On March 12, 2013, the City Council adopted Ordinance No. 2013-6, approving the DA
for the development of a 25-acre, mixed-use residential project consisting of 1,244
residential units, two 1-acre public parks, and 11,500 square feet of retail uses. The DA
became effective on April 22, 2013. The term of the DA is 15 years and has two 5-year
extension options. The earliest expiration could be in 2028.
On April 28, 2015, the City Council approved the First Amendment to the DA that delayed
the timing of payment of public benefit fees and park-in-lieu fees.
The DA and its First Amendment are available online at:
http://www.newportbeachca.gov/developmentagreements.
On September 5, 2013, the Planning Commission approved Master Site Development
Review (MSDR) No. SD2013-002 (PA2013-129) for the Uptown Newport project. The
Planning Commission also approved prototypical architectural building elevations, master
landscape plan, and plant palette, preliminary public parks, and paseo plans, preliminary
master wall/fence plans, master signage plans, and preliminary site improvement plans
for the entire 25-acre planned development. The purpose of this approval is to ensure
that the project will be developed cohesively in phases consistent with the Planned
Community Development Plan, Development Agreement, environmental mitigation
measures required by the Environmental Impact Report (EIR), and applicable City codes
and standards.
On October 1, 2013, the Parks, Beaches & Recreation Commission reviewed and
approved park amenities on the two public park concepts for the Uptown Newport project.
On January 24, 2016, the Community Development Director approved Minor Site
Development Review No. SD2015-004 (PA2015-141) for the construction of 455
residential apartment units in two separate buildings, approximately 10,700 square feet
of retail use, and a 50-foot-wide paseo within Phase 1 proposed by the Picerne Group.
The South Building was approved to provide 222 apartment units with approximately
10,700 square feet of commercial space on the ground floor. The North Building was
approved to provide 233 units. A 50-foot-wide paseo will be developed on an easement
area between the two buildings, and it will provide public access from Jamboree Road
through to the internal street. These two buildings include 92 units for very-low-income
households.
On September 2, 2016, the Community Development Director approved Staff Approval
No. SA2016-010 (PA2016-125), an amendment to Condition of Approval No. 34 of
Uptown Newport Tentative Tract Map No. NT2012-002 (TTM No. 17763), to delay
completion of the public sidewalk reconstruction along the Jamboree Road frontage of
the Uptown Newport Planned Community until occupancy of the Picerne Group’s first
residential building or July 31, 2018, whichever comes first.
2
Annual Review of Uptown Newport Development Agreement (PA2014-039)
Zoning Administrator, October 27, 2022
Page 3
Tmplt: 01/12/18
On January 24, 2017, the City Council approved the issuance of up to $192,000,000 of
multi-family housing bonds by the California Statewide Communities Development
Authority (CSCDA) to finance the project. The City does not incur any liability for the
CSCDA financing.
On March 23, 2017, the Planning Commission approved Major Site Development Review
No. SD2017-001 (PA2017-031), an amendment to the previously approved Master Site
Development Review application, to allow alternative locations and phasing of the
commercial component (up to 11,500 square feet). Specifically, the amendment allows
Lot 3 (the Picerne Group’s South Building) to be developed without commercial uses
while Lot 2, located at the intersection of Jamboree Road and Fairchild Road, to be
developed with commercial uses rather than residential uses. The preliminary plans
proposed approximately 6,500 square feet of retail use on Lot 2. Additional commercial
uses will be developed on other lots within the Uptown Newport Planned Community.
On March 24, 2017, the Community Development Director approved Minor Site
Development Review No. SD2017-002 (PA2017-040), amending Minor Site
Development Review No. SD2015-004, to eliminate the 10,700-square-foot commercial
component and associated parking from the South Building. The area formerly planned
for commercial use was permitted to be developed with seven additional residential units
for a total of 229 units within the South Building. With the approval of the proposed
amendment, a total of 462 apartment units would be developed, inclusive of the 92 low-
income units.
On April 11, 2017, the City Council approved park in-lieu fee credits consistent with the
General Plan and Municipal Code. The park in-lieu fee payment for Phase 1 was set in
the amount of $2,895,686.54.
On July 13, 2018, the Community Development Director approved Minor Site
Development Review No. SD2018-002 (PA2018-107) for the construction of Phase 1’s
one-acre neighborhood park. The park’s construction began in late December 2018 and
is complete.
On October 22, 2020, the Community Development Director approved Minor Site
Development Review No. SD2020-004 (PA2020-047) for the construction of 30
residential condominium units within Phase 1. The construction began in late 2021.
On October 27, 2021, the Community Development Director approved park in-lieu fee
credits (PA2021-165) consistent with the General Plan, Municipal Code, and
Development Agreement. The interest charge for the park in-lieu fee balance for Minor
Site Development Review Number SD2020-004 was paid in the amount of $113,278.95
on October 20, 2021.
3
Annual Review of Uptown Newport Development Agreement (PA2014-039)
Zoning Administrator, October 27, 2022
Page 4
Tmplt: 01/12/18
On March 22, 2022, the City Council approved Transfer of Development Rights No.
TD2021-001 (PA2021-131), which allowed the transfer of 77 residential units from
Uptown Newport Phase 1 to the property located at 1300 Bristol Street. These 77 units
are subtracted from the allowed residential units in Uptown Newport Phase 1. The
remaining unbuilt units in Phase 1 would be 115.
On July 7, 2022, the Community Development Director approved Minor Site Development
Review No. SD2021-002 (PA2021-120) for the construction of 60 residential
condominium units within Phase 1. Construction of these units has not yet begun.
DISCUSSION
Section 15.45.080 of the Municipal Code requires the City to periodically review
development agreements to determine if the applicant has complied with the terms of the
agreement. This review should be conducted at least once every 12 months.
The applicant is required to demonstrate good faith compliance with the terms of the
agreement, and should the Zoning Administrator find that the applicant has not complied
in good faith with the terms of the agreement; the Zoning Administrator should refer the
matter to City Council.
Annual Review
The annual review covers the period from September 2020 to September 2022.
A summary of construction-related activities within Phase 1 performed by the property
owner, its agents, and affiliates during the past year is listed below:
1. Building permits for the construction of Parkhouse’s 30-unit residential
condominium project in Phase 1 were issued on October 15, 2021. A total payment
of $113,278.95 was submitted consistent with the terms of the DA and its First
Amendment. Construction is anticipated to be completed in the second quarter of
2023.
2. The DA provides a statement where the City and the landowner may cooperate in
the undergrounding of the 66KV high voltage power line along Jamboree Road.
Shopoff Realty Investments is working with City Staff to find solutions to minimize
power interruptions to Tower Jazz semiconductors, with undergrounding
anticipated to be completed in March 2023.
3. Construction of the 1-acre public park (Uptown Newport Park) is complete with the
park wayfinding signage installed on Jamboree Road in mid-2021.
4. All 46 affordable apartments in the South building of One Uptown Newport and 46
affordable apartments in the North building of One Uptown Newport are occupied.
4
Annual Review of Uptown Newport Development Agreement (PA2014-039)
Zoning Administrator, October 27, 2022
Page 5
Tmplt: 01/12/18
American Housing Consultants, LLC is engaged for the purpose of qualifying and
screening all prospective tenants and ensuring compliance with the income and
rent requirements for affordable units.
The applicant has prepared a report with a complete list of accomplishments within the
past year (Attachment No. ZA 2).
After reviewing the attached annual report and applicable documents, staff finds the
applicant to be in good faith compliance with the terms and conditions of the DA and its
First Amendment.
As to the remaining construction of Phase 1 development, the following table identifies
the Phase 1 residential development summary as to-date. With the completion of the two
residential condominium projects (90 units total), Phase 1 development will be complete
and the remaining 55 unbuilt units will be transferred to Phase 2 development.
Phase 1 Residential Development
Implemented Remaining
Total Number of Units: 603 548 55
Park Area: 1.03 acre 1.03 N/A
The development of Phase 2 will be initiated after TowerJazz Semiconductor’s lease
concludes in 2027. This phase consists of a 1-acre park, the remaining 564 residential
units, and any remaining unbuilt residential units and commercial square footage from
Phase 1.
ENVIRONMENTAL REVIEW
This annual review is exempt from the California Environmental Quality Act (“CEQA”)
pursuant to Section 15321, Class 21 (Enforcement Actions by Regulatory Agencies) of
the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3
because it has no potential to have a significant effect on the environment. This section
exempts actions by regulatory agencies to enforce or revoke a lease, permit, license,
certificate, or other entitlement for use issued, adopted, or prescribed by the regulatory
agency or enforcement of a law, general rule, standard, or objective, administered or
adopted by the regulatory agency.
PUBLIC NOTICE
Notice of this review 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 hearing, consistent with the provisions of the Municipal Code.
5
Annual Review of Uptown Newport Development Agreement (PA2014-039)
Zoning Administrator, October 27, 2022
Page 6
Tmplt: 01/12/18
Additionally, the item appeared on the agenda for this meeting, which was posted at City
Hall and on the City website.
APPEAL PERIOD:
An appeal or call for review may be filed with the Director of Community Development within
14 days following the date of the action. For additional information on filing an appeal,
contact the Planning Division at 949-644-3200.
Prepared by:
RU/cc
Attachments: ZA 1 Vicinity Map
ZA 2 Uptown Newport Development Agreement Annual Report
6
Attachment No. ZA 1
Vicinity Map
7
VICINITY MAP
Annual Review of Uptown Newport Development
Agreement No. DA2012-003 (PA2014-039)
4311-4321 Jamboree Road
Subject Property
8
Attachment No. ZA 2
Uptown Newport Development
Agreement Annual Report
9
May 17, 2022
Ms. Chelsea Crager
City of Newport Beach
Planning Department
100 Civic Center Drive
Newport Beach, California 92660
RE: 2021 Annual Report for Uptown Newport
Development Agreement No. DA2012-003
Dear Ms. Crager,
This Annual Report for the Uptown Newport Development Agreement DA2012-003 (the
“Agreement”) is being provided to the City pursuant to Section 7 of the Agreement, and is
intended to satisfy the annual reporting requirement for Development Agreements under
section 65865.1 of the Government Code. Uptown Newport is a mixed-use development
consisting of: 1,244 residential units, 11,500 square feet of retail uses, and two 1-acre public
parks on approximately 25.05 acres of real property located at 4311-4321 Jamboree Road,
Newport Beach, California.
On March 23, 2013 (the “Agreement Date”), the City Council adopted Ordinance No. 2013-6
(the “Adopting Ordinance”), finding the Agreement to be consistent with the City of Newport
Beach General Plan, and approving the Agreement. Because the Agreement was approved by
Ordinance as required under Government Code section 65867.5, and no appeals, referenda or
lawsuits challenging the validity of the Adopting Ordinance were filed, the Agreement became
effective 30 days after the Agreement Date, or April 22, 2013.
The Uptown Newport project is continuing with development of Phase I of the Uptown Newport
Planned Community, with site development for Phase I completed. The development plan for
Phase I at Uptown Newport consists of the following milestone completions:
1. Grading / infrastructure permit issuance in November 2015
2. One Uptown Apartments building permit issue in April 2017
3. Phase I, 66KV undergrounding completed in December 2018
4. C of O issued in December 2019 -South apartment building
5. Uptown Newport Park completed in June 2019
6. Phase I infrastructure substantially complete in August 2019
7. C of O Issued in February 2020 – North apartment building
10
8. DRC Site plan submittal lot 1 east, 30-unit condominium project, in April 2020
9. DRC Site plan submittal lot 1 west condominium project in June 2020
10. Lot 1 east condo site plan approval in October 2020
11. Sale of lot 1 west in December 2020
12. Ammonia tank relocation completed in June 2020
13. Lot 1 east building permit issuance in September 2021
Recent accomplishment at Uptown Newport during the 2021 calendar year:
1. 66 KV undergrounding: Due to some local effects of a power shutdown on adjacent
properties, we have been working with the city staff and SCE to find alternate solutions
to avoid or minimize power interruptions to Tower Jazz semiconductors. Anticipated
completion in March 2023 to complete the undergrounding.
2. City staff and TSG-Parcel 1 have come to terms regarding the park maintenance
agreement which is to be maintained by the Uptown Newport Master HOA. It is
anticipated the maintenance agreement will be finalized by the end of the second
quarter 2022.
3. Construction of the 1-acre public park (Uptown Newport Park) is 100% complete with
the park wayfinding signage on Jamboree Road installed mid-2021.
4. Parkhouse Residences, LLC, obtained all plan approvals and building permits for the
construction of five condominium buildings on a portion of lot 1 in September 2021.
Phase I building is anticipated to be completed February 2023 with subsequent
remaining 4 buildings completed over the following 3-4 months in to the second
quarter of 2023.
5. The Uptown Newport HOA is anticipated to be formed and operational by mid-year
2022. All maintenance and management will be turned over to the Uptown Newport
HOA later this calendar year. A management company has been retained to assist the
HOA and its Board.
6. The ammonia tank relocation (revised to ammonia tank enclosure in 2020) is 100%
complete as of June 2021.
11
7. TSG-Parcel 1, LLC, the Master Developer of Uptown Newport Phase I has sold the
westerly portion of lot 1 to a builder / developer from Texas known as USA1
Investments. That builder / developer is in design of a 60-unit, single building 5 story
condominium project. Project plans have been submitted through the city DRC
process and with site improvements beginning mid to late 2022.
8. One Uptown Affordable Leasing Plan:
All 46 affordable apartments in the South building of One Uptown Newport were
occupied by the end of December 2020. In late January 2021, the 2nd phase of leasing,
consisting of the 46 remaining affordable apartments in the North building, was
initiated. As of May 2021, all 46 affordable apartments in the North building were
leased and occupied. American Housing Consultants, LLC, remains engaged for the
purpose of qualifying and screening all prospective tenants and ensuring compliance
with the prescribed income and rent requirements for these units.
TSG-Parcel 1, LLC, as the Assignee of Uptown Newport, LP, and has complied in good faith with
the terms and conditions of the Agreement.
We look forward to continuing our development efforts for Uptown Newport, and appreciate
the City’s cooperation in our efforts. Please contact me at (949) 417-1867 or at
brupp@shopoff.com. Should you have any questions or require additional information.
Sincerely,
Brian Rupp
Executive Vice President – Development
Cc: Gregory Powers, Jackson Tidus
12