HomeMy WebLinkAbout01 - Minutes - AmendedCity of Newport Beach
City Council Meeting
March 14, 2023
March 28, 2023
Agenda Item No. 1
consider residential zones beyond R1, and asked for clarification about the minimum unit count
indicated in the staff report.
Russ Doll noted a legal letter of position on November 10, 2021, expressed concern about the turn
ever -turnover at a neighboring Pacaso property, and stated the need for a mechanism to manage or
remedy ongoing behavior.
Maureen Cotton, President of the Central Newport Beach Community Association, thanked City
staff and Council for the proposed language and supported the preferred recommendation, but
suggested adding language that bans advertising the sale of fractional ownership properties.
Andre Jones, Pacaso employee, read comments from Roy Mendrin of Silver Star Sound & Comm
who shared his experiences as a local business owner working with Pacaso.
John Panache shared why he became a fractional owner and how his family is part of the
community.
Jim Miller noted cities that are rewriting timeshare ordinance rohibit hotel -like activity in
residential areas and discussed timeshare and STL behavior.
An unidentified speaker thanked Council for cowidering defining Pacaso as a timeshare and
protecting local communities, encouraged Council to ensure that people who live in residential areas
are accountable, possess an individual commitment to the greater good, and preserve what makes
Newport Beach special, and suggested only allowing fractional ownerships in commercial zones.
Lisa Sutton noted the City needs to clarify its direction on timeshares or the Pacaso model, and
asked Council to be aware of loopholes that' would allow fractional ownerships.
Katie Sandvig, Pacaso employee, read comments on behalf of fractional homeowner Chris Looney,
who thought that shared ownership is good for Newport Beach and encouraged Council to think
favorably on co -ownership.
Katie Durham, Pacaso ems mments from fractional homeowner Aaron Clark, who
supported Pacaso.
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An unidentified speaker expressed the opinion that fractional ownership changes the fabric of the
neighborhood by having temporary neighbors and offered a suggestion for the sale of grandfathered
properties so they can return to single property ownership.
Megan Licata, Pacaso employee, read comments from fractional homeowner Devon Atchison, who
expressed hope that Council will allow more families a way into home ownership in Newport Beach
and surrounding beach areas.
Max, Pacaso employee, read comments from fractional homeowner Scott Hanson, who stated that
he and his family support local businesses, promise to never rent out the home, take great care of
the home, and thought it is a mistake to limit home ownership to 100 percent ownership.
Karen Carlson thanked Council for taking a poll at the beginning of the meeting, supported the
recommendation, and urged a moratorium on new fractional ownerships.
Lee Pearl relayed being proud of how the community has come together on this issue and
commended Council for a decision that he feels will be positive for the community.
Steven Bass introduced his neighbors and asked that the neighborhood not be commercialized.
Debbie Stevens, President of the Corona del Mar Residents Association, expressed the opinion that
timeshares, STLs, and fractional ownerships act the same and that this is a quality of life issue,
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City of Newport Beach
City Council Meeting
March 14, 2023
noted pressures from the State and the importance of having City control over fractional ownership,
asked for a continued ban in residential areas and keeping fractional ownership in commercial
areas, and stated she supports the recommendations.
Terry Janssen, President of Balboa Island Improvement Association, discussed the responses from
a call -to -action email sent to their database regarding fractional ownership.
Ben Roth noted no communication with neighboring fractional homeowners and that this is about
the masses and not the few.
An unidentified speaker stated that STLs are short term rentals and fractional ownerships are short
term residents, but they are the same thing, noted voting privileges to being a resident, and
cautioned Council on what the City is investing in.
Thomas Palestrini, Pacaso employee, read comments from fractional homeowner Steve Hayes, who
stated how he and his family use the property, noted hjL interest in high standards, a
well -maintained property, and owners with a vested interest i e property, and relayed he pays
taxes.
Gina Cruz suggested Council should consider the many standards of fractional ownership operators
besides Pacaso, discussed issues with the current,42 fractional ownership properties in the City,
and asked Council to take peace and tranquility for residents into consideration.
Monika Krogmann questioned if Balboa Peninsula` ill named the Balboa Peninsula Resort.
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Amber Snider, Newport Beach Fire Safe Council and Corona del Mar Alumni Association member,
asked Council to save the neighborhoods algid watch out for the children living nearby, especially
with special needs. A
Carmen Rawson labeled fractional owners as transient, noted the impact in R2 zones, surveyed the
audience by a show of hands to demonstrate who opposes any fractional ownership, disagreed with
the assumption that fractional ownership is taking over empty homes, and asked Council to be
prompt.
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An unidentified speaker asked Council to protect the residents' quality of life and put a stop to
fractional ownership.
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Purvi Doshi, Pacas� employee, thanked staff and Council for their time and devotion to studying
co -ownership, expresv the opinion that co -ownership is a valuable and protected property right,
noted meetings with staff to discuss potential solutions, desired to work with the City to develop
common sense regulations, and urged the City to continue talks so regulations can be created that
work for everybody.
Max Johnson stated he started a petition, expressed the opinion that there will be missed tax
collections for essential services due to fractional ownerships, and urged Council to support all the
residents who are against fractional ownership.
Jim Male Moloney, Balboa Island Preservation Association Chair, thought fractional ownership
accelerates the rate of homes being torn down and rebuilt into large cubes to maximize the square
footage, and noted there will be more sales revenue in the short term but emphasized the disruption
in the long term.
City Attorney Harp corrected his previous statement and reported that the item will need to go back
to the Planning Commission for consideration and to hold a public hearing pursuant to the NBMC,
and, in response to Mayor Pro Tem O'Neill's question, he relayed that there is a 6 week [correction
from 60 days] legal requirement for public review before adoption and the clock begins as soon as it
is made available to the public.
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