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HomeMy WebLinkAbout12 - Amendment to Newport Place Planned Community Development Plan to Revise the Minimum Affordability Housing Percentage of the Residential Overlay (PA2023-0082)CITY OF NEWPORT BEACH City Council Staff Report TO: FROM: PREPARED BY: PHONE: July 25, 2023 Agenda Item No. 12 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov Rosalinh Ung, Principal Planner, rung@newportbeachca.gov 949-644-3208 TITLE: Ordinance No. 2023-13: An Amendment to Newport Place Planned Community Development Plan to Revise the Minimum Affordability Housing Percentage of the Residential Overlay (PA2023-0082) ABSTRACT: For the City Council's consideration is the proposed amendment to the Newport Place Planned Community, and introduction of an ordinance to change the minimum affordable housing inclusionary requirement of Residential Overlay (Overlay) from 30 percent to 15 percent. If approved, the item will return to City Council on August 22, 2023, for final adoption of the ordinance. RECOMMENDATIONS: a) Conduct a public hearing; b) Find the Amendment is not subject to CEQA pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines because it has no potential for resulting in physical change to the environment, directly or indirectly; and c) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2023-13, An Ordinance of the City Council of the City of Newport Beach, California, Approving Newport Place Planned Community Development Plan Amendment to Revise the Minimum Affordability Housing Percentage of the Residential Overlay (PA2023-0082), and pass to second reading on August 22, 2023. DISCUSSION: Background Newport Place is a Planned Community (PC-11) in the Airport Area that was originally designed in the early 1970s with clusters of office parks and industrial uses. The boundary of PC-11 begins at MacArthur Boulevard extending westerly bounded by Jamboree Road, Bristol Street North, and Birch Street. The 145-acre area has evolved with light industrial uses being replaced over time with commercial support retail and office uses within the original design. 12-1 Ordinance No. 2023-13: An Amendment to Newport Place Planned Community Development Plan to Revise the Minimum Affordability Housing Percentage of the Residential Overlay (PA2023-0082) July 25, 2023 Page 2 In 2006, the City of Newport Beach (City) comprehensively updated its General Plan. At the time, the 3rd cycle Regional Housing Needs Assessment (RHNA) required the City to create additional housing opportunities. The 2006 General Plan included several new mixed -use land use categories including the MU-H2 applied to many properties in the Airport Area, bounded by Jamboree Road, Campus Drive and State Route 73. On July 24, 2012, the City amended PC-11 to create the Overlay to implement a Housing Element policy as part of the 4t" cycle RHNA. The Overlay allows residential development consistent with the MU-H2 General Plan Land Use category that allows housing or mixed -use development for parcels located within PC-11. The Overlay requires a minimum of 30 percent of a housing or mixed -use development be restricted to lower income households. At the April 11, 2023, City Council meeting, City Council Member Erik Weigand requested that an item be placed on a future City Council agenda that reduces the inclusionary housing percentage of the Overlay in the Newport Place Planned Community from 30 percent to 15 percent. On May 9, 2023, the City Council adopted Resolution No. 2023-25 (Attachment B), initiating the subject amendment. Proposed Amendment Required in the City's 2021-2029 Housing Element, the City must evaluate a variety of policies and regulations to identify impediments and incentives to housing production. The proposed amendment would reduce the minimum inclusionary housing percentage of the Overlay, from 30 percent to 15 percent. No other changes are proposed, and no development would be directly authorized by the proposed amendment. The adoption of Overlay in 2012 was necessary to secure certification of the 41" Cycle Housing Element to accommodate the City's Regional Housing Needs Assessment (RHNA) for lower -income households. The Overlay includes use and development standards for residential projects and requires 30 percent of the residential units in a development to be made affordable to lower -income households for a minimum of 30 years. Because of this reason, it is the only area in the Airport Area that requires the inclusionary housing and with a high percentage. Reducing the inclusionary percentage would reduce a potential impediment to housing development and would also affirmatively further fair housing consistent with PolicyAction 4A. Affirmatively Furthering Fair Housing and Housing Policy 4.1. Housing opportunities for as many renter- and owner -occupied households as possible in response to the market demand and RHNA obligation for housing in the City, provided in the certified 6t" Cycle Housing Element. The proposed amendment is also supported by the February 17, 2022, Inclusionary Housing: Financial Evaluation, prepared by Keyser Marston Associates for the City of Newport Beach. The study concluded that inclusionary housing percentages higher than 15 percent would likely be too high rendering most residential projects financially infeasible. 12-2 Ordinance No. 2023-13: An Amendment to Newport Place Planned Community Development Plan to Revise the Minimum Affordability Housing Percentage of the Residential Overlay (PA2023-0082) July 25, 2023 Page 3 Planning Commission Review and Recommendation On June 22, 2023, the Planning Commission considered the proposed amendment. At the conclusion of the public hearing, the Planning Commission recommended the City Council approve the proposed amendment. The June 22, 2023, Planning Commission staff report, Minutes Excerpts and Planning Commission Resolution No. PC2023-025 are attached as Attachments C, D, and E respectively. Airport Land Use Commission Review Section 4.3 of the 2008 John Wayne Airport Environs Land Use Plan (AELUP) and Section 21676(b) of the Public Utilities Code require the City submit General Plan and Zoning Code amendments to the Airport Land Use Commission (ALUC) for a consistency determination with the AELUP. ALUC conducted a hearing on the matter at their July 20, 2023, meeting, and found the proposed amendment is consistent with the AELUP. The ALUC staff report, dated July 20, 2023, is attached as Attachment F. FISCAL IMPACT: There is no fiscal impact related to this item. ENVIRONMENTAL REVIEW: The City Council finds the proposed amendment is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: Notice of this hearing was published in the Daily Pilot and mailed to all owners of property within 300 feet of the boundaries of the Newport Place Planned Community (excluding intervening rights -of -way and waterways), consistent with the provisions of the Municipal Code. Additionally, the item also appears on the agenda for this meeting, which was posted at City Hall and on the City website in accordance with the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Ordinance No. 2023-13 Attachment B — Resolution No. 2023-25 Attachment C — Planning Commission Staff Report, Dated June 22, 2023 (without attachments) Attachment D — Planning Commission Minute Excerpts, Dated June 22, 2023 Attachment E — Planning Commission Resolution No. PC2023-025 Attachment F — ALUC Staff Report, Dated July 20, 2023 12-3 ATTACHMENT A ORDINANCE NO. 2023-13 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING AN AMENDMENT TO NEWPORT PLACE PLANNED COMMUNITY DEVELOPMENT PLAN TO REVISE THE MINIMUM AFFORDABILITY HOUSING PERCENTAGE OF THE RESIDENTIAL OVERLAY (PA2023-0082) 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, Newport Place is a Planned Community (PC), generally bounded by MacArthur Boulevard, Jamboree Road, Birch Street and Bristol Street North, and was originally designed in the early 1970's with clusters of office parks and industrial uses; WHEREAS, the 145-acre area has evolved with light industrial uses being replaced over time with the commercial supported retail and office uses within the original design; WHEREAS, the introduction of the Mixed Use — Horizontal 2 (MU-H2) General Plan Land Use classification as a part of the 2006 General Plan Land Use Element, created an opportunity for residential uses; WHEREAS, on July 24, 2012, the City Council of City of Newport Beach ("City") amended the Newport Place PC (PC-11) creating the Residential Overlay ("Overlay"); WHEREAS, the Overlay was necessary to secure certification of the 4th Cycle Housing Element because, at that time, it had a greater potential to accommodate the City's Regional Housing Needs Assessment ("RHNA") for affordable housing; WHEREAS, the Overlay implemented the Mixed Use — Horizontal 2 (MU-H2) General Plan Land Use category for parcels within PC-11; 12-4 Ordinance No. 2023-13 Page 2 of 5 WHEREAS, the Overlay included use and development standards for residential projects, including an inclusionary housing requirement that 30% of the residential units in a development be made affordable to lower -income households for a minimum of 30 years; WHEREAS, on September 13, 2022, the City Council adopted the 6th Cycle Housing Element for the 2021-2029 period, which was certified by the State Department of Housing and Community Development ("HCD") on October 5, 2022; WHEREAS, the Airport Area Environs is one of the five focus areas where new housing opportunity sites are identified to satisfy the 6th Cycle Housing Element's RHNA allocation of 4,845 new housing units; WHEREAS, at least 2,577 housing units are planned within the Airport Area Environs, which comprises approximately 25% of the City's planned housing capacity; WHEREAS, in addition to the existing residential sites allowed by the 2006 General Plan Land Use Element and the PC-11's Overlay, a total of 29 new housing opportunity sites have been identified in the PC-11 in the 6th Cycle Housing Element; WHEREAS, at the April 11, 2023, City Council meeting, City Council Member Erik Weigand requested that an item be placed on a future City Council agenda that reduced the inclusionary housing percentage for PC-11's Overlay from 30% to 15%; WHEREAS, on May 9, 2023, the City Council adopted Resolution No. 2023-25, initiating an amendment to PC-11 related to the minimum affordability percentage of the PC-11's Overlay ("Amendment"), in accordance with Section 20.56.050(B) (Development Plan Amendments) and Section 20.56.050(E) (Development Plan) of the Newport Beach Municipal Code ("NBMC"); WHEREAS, a public hearing was held by the Planning Commission on June 22, 2023, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the public hearing was given in accordance with Government Code Section 54950 et seq. ("Ralph M. Brown Act") and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing; 12-5 Ordinance No. 2023-13 Page 3 of 5 WHEREAS, at the public hearing, the Planning Commission adopted Resolution No. PC2023-025 by a majority vote (5 ayes, 0 nays, 2 recusals), recommending the City Council approve the Amendment; WHEREAS, due to the proposed Amendment, California Public Utilities Code Section 21676(b) requires the City to refer Amendment to the Orange County Airport Land Use Commission ("ALUC") for a determination that the Amendment is consistent with the Airport Environs Land Use Plan ("AELUP") for John Wayne Airport; WHEREAS, on July 20, 2023, the ALUC found the Amendment is consistent with the AELUP; and WHEREAS, the City Council held a public hearing on July 25, 2023, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the public hearing was given in accordance with California Public Utilities Code Section 21676(b), the Ralph M. Brown Act and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this public meeting. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council hereby approves the amendment to the Newport Place Planned Community Development Plan (PC-11)which is attached hereto as Exhibit "A" and incorporated herein by reference with all other provisions of the Newport Place Planned Community (PC-11)and supporting maps remaining unchanged and in full force and effect. Section 2: Newport Place Planned Community Development Plan Amendment is a legislative act. Neither PC-11 or Chapter 20.56 (Planning and Zoning, Planned Community District Procedures), 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 the Amendment. Notwithstanding the foregoing, the Amendment is consistent with the following City of Newport Beach 6th Cycle Housing Element Policy and Policy Action: 12-6 Ordinance No. 2023-13 Page 4 of 5 Housing Policy 4.1 Housing opportunities for as many renter- and owner -occupied households as possible in response to the market demand and RHNA obligation for housing in the City. The Amendment would be a step in the implementation of the 6th Cycle Housing Element by mitigating potential governmental constraints through the reduction of affordable housing percentage from 30% to 15%, facilitating construction of market -rate housing and affordable housing for all income groups. According to the February 17, 2022, Inclusionary Housing Financial Evaluation, prepared by Keyser Marston Associates for the City of Newport Beach, inclusionary housing percentages higher than 15% would likely be too high, rendering most residential projects financially infeasible. Reducing the inclusionary percentage would reduce the potential impediment and would also affirmatively further fair housing consistent with Policy Action 4A: Affirmatively Furthering Fair Housing provided in the 6th Cycle Housing Element. Section 3: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 4: 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 5: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in a physical change to the environment, directly or indirectly. 12-7 Ordinance No. 2023-13 Page 5 of 5 Section 6: 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 shall be effective thirty calendar days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 25th day of July, 2023, and adopted on the 22nd day of August, 2023, by the following vote, to -wit: AYES: NAYS: ABSENT: NOAH BLOM, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE AARON . HARP, CIT"TTORNEY Attachment(s): Exhibit A- Amendment to Newport Place Planned Community (PC-11) 12-8 Exhibit "A" Newport Place Planned Community (PC11) Amendment Amend Part III. Residential Overlay Zone, Section IV.A .3 to read as follows: A minimum of 30 15 percent of the units within the residential development shall be affordable to lower -income households and subject to a 30-year affordability covenant. 12-9 Attachment B Resolution No. 2023-25 12-10 RESOLUTION NO. 2023-25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, INITIATING AN AMENDMENT TO THE NEWPORT PLACE PLANNED COMMUNITY DEVELOPMENT PLAN TO REVISE THE MINIMUM AFFORDABILITY PERCENTAGE OF THE RESIDENTIAL OVERLAY (PA2023-0082) WHEREAS, City Council Policy A-1 ("City Council") allows a member of the City Council to request that an item be placed on a future City Council agenda for consideration; WHEREAS, at the April 11, 2023, City Council meeting, City Council Member Erik Weigand requested that an item be placed on a future City Council agenda that reduced the inclusionary housing percentage for the Newport Place Planned Community Development Plan (PC-11) from thirty to fifteen percent; and WHEREAS, City Council desires to initiate an amendment to the Newport Place Planned Community Development Plan (PC-11) related to the minimum affordability percentage of the Residential Overlay in accordance to Section 20.56.050(E) (Development Plan Amendments) and Section 20.56.050(B) (Development Plan) of the Newport Beach Municipal Code. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby initiates an amendment to Newport Place Planned Community Development Plan to lower the minimum affordability percentage of the Residential Overlay. Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 3: 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. City of Newport Bea(--,-. - 12_11 Resolution No. 2023-25 Page 2 of 2 Section 4: The City Council finds the adoption of this resolution is exempt from environmental review under the California Environmental Quality Act ("CEQA"), pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it involves feasibility or planning studies for possible future actions which the agency, board, or commission has not approved or adopted. Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. AnoPTFr) thic Ath riau of Mav 7(17� mrrmvvr-u ma i v rvmin: CITY ATTORNEY'S OFFICE ) 4A- - C. Aaron C. Harp City Attorney City of Newport Beach 12-12 STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2023-25 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the gch day of May, 2023; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Noah Blom, Council Member Brad Avery, Council Member Robyn Grant, Council Member Lauren Kleiman, Council Member Erik Weigand NAYS: None RECUSED: Mayor Pro Tern Will O'Neill, Council Member Joe Stapleton IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this loth day of May, 2023. Leilani I. Brown City Clerk Newport Beach, California City of Newport Beach ,,,, Attachment C Planning Commission Staff Report, dated June 22, 2023 (without attachments) 12-14 PO CITY OF NEWPORT BEACH n PLANNING COMMISSION STAFF REPORT ' June 22, 2023 �+4LIFOP. P Agenda Item No. 4 SUBJECT: Newport Place Planned Community Amendment (PA2023-0082) ■ Newport Place Planned Community Development Plan Amendment SITE LOCATION: Newport Place Planned Community bounded by MacArthur Boulevard, Jamboree Road, Birch Street and Bristol Street North APPLICANT: City of Newport Beach PLANNER: Rosalinh Ung, Principal Planner 949-644-3208 or rung@newportbeachca.gov PROJECT SUMMARY An amendment to Newport Place Planned Community Development Plan (PC-11)to revise the minimum affordability housing percentage for residential development within the Residential Overlay, from thirty percent (30%) to fifteen percent (15%). RECOMMENDATION 1) Conduct a public hearing; 2) Find the Amendment is not subject to the California Environmental Quality Act ("CEQA") under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA; and 3) Adopt Resolution No. PC2023-025 recommending approval a Planned Community Development Plan Amendment to modify the minimum inclusionary affordable housing percentage to the City Council (PA2023-0082) (Attachment No. PC 1). 12-15 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 3 Newport Place Planned Community - Residential Overlay Area Summary �Q Industrial QJ Office 22.2 ac. Retail/General Commercial 81.6 ac. G �� Commercial/Restaurant 29.1 ac. Retail CommercialMotel Motel 1.1 ac. Commercial Service Station 10.0 ac. Site 1 1.2 ac. Hotel General Commercial Total 145.2 ac. Service Site 1 Site 5 Station Site 1 i Residential Overlay Opportunity General Commercial for Properties Designated as Site 6 MU-H2 within the General Plan Land Use Element (Figure LU11) �" Office Site 6 - Restaurant Site 1 Pro. & Bus. Office Site 9 Pro. &Bus. Office Site 7 Pro. & Bus. Commercial - Office Site 8 Site Site 5ms D .; Pro. &Bus. _ Industrial Office Sites 1 & 2 Site 3A Pro. & Bus. 0 Office 03 o�V� Site 4 C �a L Pro. & Bus. .__ __.,._mm. Office Site ?e General General Commercial Commercial p Site 7 Site 4 C��,o^ oes�ra�s Industrial S'i�e aioa� �q / vd/ Site 1A 8 Land Use Plan General co,�opo� Newport Place Commercial S d/ Site2 ..-. �o7�S°d/ Planned Community 12-17 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 4 INTRODUCTION Project Setting/Background Newport Place is a Planned Community in the Airport Area that was originally designed in the early 1970's with clusters of office parks and industrial uses. The boundary of PC- 11 begins at MacArthur Boulevard extending westerly bounded by Jamboree Road, Bristol Street North, and Birch Street as depicted on the vicinity map. The 145-acre area has evolved with light industrial uses being replaced overtime with commercial support retail and office uses within the original design. In 2006, the City comprehensively updated its General Plan. At the time, the 3rd cycle Regional Housing Needs Assessment (RHNA) required the City to create additional housing opportunities. The 2006 General Plan included several new mixed use land use categories including the MU-H2 applied to many properties in the Airport Area'. On July 24, 2012, the City amended PC-11 to create the Residential Overlay (Overlay) to implement a Housing Element policy as part of the 4t" cycle RHNA. The Overlay allows residential development consistent with the MU-H2 General Plan Land Use category that allows housing or mixed -use development for parcels located within PC-11. The Overlay requires a minimum of thirty percent (30%) of a housing or mixed -use development be restricted to lower income households. At the April 11, 2023, City Council meeting, City Council Member Erik Weigand requested that an item be placed on a future City Council agenda that reduces the inclusionary housing percentage of the Residential Overlay (Overlay) in Newport Place Planned Community from thirty percent (30%) to fifteen percent (15%). On May 9, 2023, the City Council adopted Resolution No. 2023-25 (Attachment No. PC 2), initiating the subject amendment. Amendment Description The proposed amendment would reduce the minimum inclusionary housing percentage of the Overlay, from thirty percent (30%) to fifteen percent (15%). No other changes are proposed, and no development would be directly authorized by the proposed amendment. DISCUSSION Analysis The adoption of Overlay in 2012 was necessary to secure certification of the 4th Cycle Housing Element as it was, at that time, had a greater potential to accommodate the City's ' The Airport Area is located near John Wayne Airport bounded by Jamboree Rd., Campus Dr., and State Route 73. 12-18 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 5 Regional Housing Needs Assessment (RHNA) for lower -income households. The Overlay includes use and development standards for residential projects and requires thirty percent (30%) of the residential units in a development to be made affordable to lower -income households for a minimum of 30 years. Because of this reason, it is the only area in the Airport Area that requires the inclusionary housing and with the highest percentage. As the City is facing with the substantial 6t" Cycle RHNA obligation for the 2021-2029 Housing Element, the City must evaluate a variety of policies and regulations to identify impediments and incentives to housing production. Reducing the inclusionary percentage would reduce potential impediment and would also affirmatively further fair housing consistent with Policy Action 4A: Affirmatively Furthering Fair Housing and Housing Policy 4.1: Housing opportunities for as many renter- and owner -occupied households as possible in response to the market demand and RHNA obligation for housing in the City, provided in the certified 6t" Cycle Housing Element. The proposed amendment is also supported by the February 17, 2022, Inclusionary Housing: Financial Evaluation, prepared by Keyser Marston Associates for the City of Newport Beach. The study concluded that inclusionary housing percentages higher than fifteen percent (15%) would likely be too high rendering most residential projects financially infeasible. Environmental Review The Amendment is not subject to the California Environmental Quality Act ("CEQA") under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in a physical change to the environment, directly or indirectly. Public Notice Notice of this hearing was published in the Daily Pilot and mailed to all owners of property within 300 feet of the boundaries of the Newport Place Planned Community (excluding intervening rights -of -way and waterways), 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. 12-19 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 6 Prepared by: Submitted by: os linh Ung Jim Campbell i ipal planner U Deputy Community Development Director ATTACHMENTS PC 1 Draft Planning Commission Resolution No. 2023-025 PC 2 City Council Resolution No. 2023-25 \Users\PLN\Shared\PA's\PAs - 2023\PA2023-0082\PC\PA-2023-0082-PC-Staff Report.docx01/18/23 12-20 Attachment D Planning Commission Minutes dated June 22, 2023 12-21 DocuSign Envelope ID: AC2F3D1 B-4597-493D-AC6C-E2FA1 EE0153B NEWPORT BEACH PLANNING COMMISSION MINUTES CITY COUNCIL CHAMBERS — 100 CIVIC CENTER DRIVE THURSDAY, JUNE 22, 2023 REGULAR MEETING — 6:00 P.M. CALL TO ORDER — 6:00 p.m. PLEDGE OF ALLEGIANCE — Secretary Klaustermeier III. ROLL CALL PRESENT: Chair Curtis Ellmore, Vice Chair Mark Rosene, Secretary Sarah Klaustermeier, Commissioner Brady Barto, Commissioner Tristan Harris, Commissioner Jonathan Langford, and Commissioner Lee Lowrey ABSENT: None Staff Present: Deputy Community Development Director Jim Campbell, Assistant City Attorney Yolanda Summerhill, City Traffic Engineer Brad Sommers, Assistant Planner Jenny Tran, Associate Planner Joselyn Perez, and Administrative Assistant Clarivel Rodriguez IV. PUBLIC COMMENTS Jim Mosher recommended the Planning Commissioner Handbook prepared by the Institute for Local Government and highlighted the section on ex parte communications and site visits. V. REQUEST FOR CONTINUANCES None VI. CONSENT ITEMS ITEM NO. 1 MINUTES OF MAY 18, 2023 Recommended Action: Approve and file Motion made by Commissioner Langford and seconded by Vice Chair Rosene to approve the minutes of the May 18, 2023, meeting with Mr. Mosher's edits. AYES: Barto, Ellmore, Harris, Klaustermeier, Langford, and Rosene NOES: None ABSTAIN: Lowrey ABSENT: None VII. PUBLIC HEARING ITEMS ITEM NO. 2 AERONUTRONIC FORD SOIL VAPOR REMEDIATION APPEAL (PA2022-0180) Site Location: Near 94 Hartford Drive Summary: An appeal of the Zoning Administrator's March 2, 2023, decision to approve a limited term permit for the construction and operation of a soil vapor extraction and treatment system. The project includes construction of a 20-foot wide by 12-foot deep by 10-foot-high treatment system building, an underground pipe network of approximately 2,400 linear feet, and 13 extraction wells for soil gas remediation. The applicant is requesting a limited term permit to operate the soil vapor extraction and treatment system for a term of approximately 12 months. A limited term permit is requested to allow a 3.2-foot separation between the treatment system building and nearest residential structure where the required separation is Page 1 of 9 12-22 DocuSign Envelope ID: AC2F3D1 B-4597-493D-AC6C-E2FA1 EE0153B Planning Commission Meeting June 22, 2023 8 feet between buildings, and to allow the treatment system building to encroach into the 5-foot front setback. Recommended Action: 1. Conduct a de novo public hearing; 2. Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15330 under Class 30 (Minor Actions to Prevent, Minimize, Stabilize, Mitigate or Eliminate the Release or Threat of Release of Hazardous Water or Hazardous Substances), Section 15308 under Class 8 (Actions by Regulatory Agencies for Protection of the Environment), and Section 15303 under Class 3 (New Construction or Conversion of Small Structures) of the CEQA Guidelines, Title 14, Division 6, Chapter 3 because it has no potential to have a significant effect on the environment; and 3. Adopt Resolution No. PC2023-023 denying the appeal and upholding and affirming the Zoning Administrator's Approval of a Limited Term Permit for a soil vapor extraction and treatment system filed as PA2022-0180. Chair Ellmore announced that this item was continued from the May 18 Planning Commission meeting to understand from the Homeowners Association (HOA) how the proposed location was chosen. He asked for new information and indicated that the Planning Commission supports the remediation effort. Assistant Planner Tran provided a brief recap of the appeal and noted the purpose of the continuance to further address safety concerns, alternate locations, and additional input from the HOA Board regarding the location selection. With the exception of Vice Chair Rosene who met with the applicant to discuss alternative locations and the appellant and Commissioners Harris and Langford who spoke with the applicant's representative, the remaining Commissioners had no ex parte communications. Chair Ellmore opened the public hearing. Kenn Conner, WSP, introduced the team and members of the Bayridge HOA, reviewed the key points related to the permit, application, location determinants, community outreach, and urgency. Furthermore, he shared a remediation area map and Bayridge Park soil vapor extraction (SVE) system outline, key responses to comments/questions, location justification, alternative #4 location map, location analysis, and community support. Mr. Connor agreed to the conditions of approval. Jessica Law, Santa Ana Regional Water Board, clarified their authority as a State agency. Enrique Sanchez, Bayridge HOA President, apologized for not attending the May 18 Planning Commission meeting. In response to Commissioner Langford's questions, Mr. Sanchez provided an overview of the location selection process and authority, structure, and election rules of the HOA. Commissioner Harris utilized the Bayridge Park SVE system slide to question an alternative parking area location, and in response to his inquiries, Mr. Sanchez indicated that backlash from residents at the HOA meetings, inconvenience, and the best recommendation are what stopped the alternative location in the parking area from being a viable alternative. He noted unit counts and configurations of those units within complex. Commissioner Barto noted a narrow versus distributed community impact approach by using the proposed location and, in response to his inquiry, Mr. Conner indicated that the location selection was driven by Page 2 of 9 12-23 DocuSign Envelope ID: AC2F3D1 B-4597-493D-AC6C-E2FA1 EE0153B Planning Commission Meeting June 22, 2023 engineering issues, trench size, utility conflicts, and space requirements and multiple locations would only take care of a small number of extraction wells. Amy Santella, appellant, indicated that the original proposal by the engineers included five sites and was turned down by the HOA due to the impact on parking. She believes it remains a viable alternative, reviewed the HOA parking policy, clarified her support of the remediation, disclosed conversations with WSP and the Santa Ana Regional Water Board and HOA responses to her outreach, suggested alternate site feasibility is not being considered, reported having not received the requested residential treatment system evidence -based example and data, utilized slides to show photos of residential treatment systems, and asked the City to support evidence -based research and data before agreeing to the location. Kevin Santella utilized a presentation to review the alternative analysis summary, address infeasibilities, discussed the Bison Avenue, Country Club Drive, Bayridge Park, Brittany/Hartford locations and configuration options, and replayed proposed location details. Mr. Sanchez indicated that the HOA is focused on remediation and what is best for the neighborhood, noted a temporary one-year permit, and relayed interest in resolving the matter as soon as possible for 22 families. Leslie Pratt believed that the HOA had not made any effort to contact the residents involved and hoped the Commission would consider all the reasons provided to make the best decision. Mr. Conner indicated that the original five locations were proposed with the understanding that a power drop location would be closely located, the current proposed location is the only spot where the power drop location is available, current mitigation efforts are short term, SVE is a long-term remedy to lowering risks of vapor intrusion, and analysis revealed engineering, utility, clearance, and trench size and depth challenges for every other location. In response to Chair Ellmore's questions, Mr. Conner relayed community outreach details and noted the proposed location decision came down to the power drop location indicated by SoCal Edison and power drop feasibility is a result of COVID and post-COVID challenges, and timeline to change locations. In response to Commissioner Harris' questions, Mr. Conner clarified that the alternative locations were provided at a time when WSP thought more power drop locations were an option, but in July 2022 SoCal Edison came back with one feasible location. He noted that the power drop on Belcourt Drive will be shared by a trench with another treatment system running under Country Club Drive to the fire lane area. Mr. Conner clarified that the HOA never stated that the parking spaces could not be used for the project. In response to Vice Chair Rosene's question, Mr. Conner indicated that WSP is working with SoCal Edison and an electrical engineer to stamp the drawings. Vice Chair Rosene expressed his disbelief that by using the alternative parking lot located approximately 98 feet from the proposed location it would delay the project three years. Chair Ellmore closed the public hearing. Commissioner Barto questioned the incongruity from an electrical perspective, thought the matter has a high impact on a specific residence for a general good and wondered if Ford has taken the opportunity to discuss this with residents, and struggled with the matter. Vice Chair Rosene recognized the remediation is necessary, the current proposed location is what remains after the "right thing" to do passed, changing the location would not take three years, and no guarantee for a one-year remediation. He thought that no review took place, and the appellant and Planning Commission are in a difficult position. Secretary Klaustermeier concurred with Vice Chair Rosene and thought the matter was outside the purview of the Planning Commission and perhaps better passed to the City Council. Page 3 of 9 12-24 DocuSign Envelope ID: AC2F3D1 B-4597-493D-AC6C-E2FA1 EE0153B Planning Commission Meeting June 22, 2023 Assistant City Attorney Summerhill stated, and Chair Ellmore concurred, that it is appropriate for the Planning Commission to make a decision for health and safety reasons and the matter can be appealed or called for a review by the City Council. Commissioner Harris echoed the same sentiments as the other Commissioners, noted that it is not the job of the Planning Commission to make value judgments, thought the decision by the HOA is convenient for the majority and within their purview, expressed disappointment with the HOA decision, and indicated he cannot vote against the permit. Commissioner Langford thought the HOA deliberated accordingly and supported the permit approval. Chair Ellmore stated that the information about the power drops was new information to the Planning Commission, expressed disappointment for the proposed location choice, and supported the permit to address the health and safety issues. Motion made by Chair Ellmore and seconded by Vice Chair Rosene to approve the item as recommended by staff. AYES: Barto, Ellmore, Langford, and Rosene NOES: Harris and Klaustermeier RECUSED: Lowrey ABSENT: None ITEM NO. 3 MILLER RESIDENCE (PA2023-0017) Site Location: 22 Bay Island Summary: A coastal development permit (CDP) to allow the demolition of an existing single -unit dwelling and the construction of a new, 4,566-square-foot, three (3)-story single -unit dwelling, adjustment to the off-street parking requirements with a parking management plan, and an increase to the allowed building height to 28 feet for flat portions of the roof and 33 feet for the sloped portions of the roof in accordance with Use Permit No. UP3618. The design includes hardscape, drainage facilities, and landscaping. With approval of the height allowance, the project complies with all applicable development standards. 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 a significant effect on the environment; and 3. Adopt Resolution No. PC2023-024 approving a Coastal Development Permit for the demolition and reconstruction of a single -unit dwelling (PA2023-0017). Assistant Planner Tran utilized a presentation to introduce the proposal for a Coastal Development Permit, Parking Management Plan, and height increase up to 33 feet and noted the proposal is not a variance and the Use Permit allows for a height increase. She reviewed the vicinity map, building sites, Use Permit Development Standards, height increase with Planning Commission approval (west and south elevations), Local Coastal Program Implementation Plan Development Standards, Parking Management Plan, offsite parking aerial photo, building site map that is part of the approved use permit and proposed site plan, encroachment condition of approval, and recommended action. Page 4 of 9 12-25 DocuSign Envelope ID: AC2F3D1 B-4597-493D-AC6C-E2FA1 EE0153B Planning Commission Meeting June 22, 2023 In response to Vice Chair Rosene's question, Deputy Community Development Director Campbell relayed the parking requirements for Title 20 and Title 21 and golf cart parking accommodations to satisfy on -site compliance with Title 21. No ex parte communications were reported by the Commission. Chair Ellmore opened the public hearing. Nicole Thompson, Brandon Architects, indicated that they will comply with the setback/encroachment requirement and agreed to the conditions of approval. Chair Ellmore closed the public hearing. Motion made by Vice Chair Rosene and seconded by Secretary Klaustermeier to approve the item as recommended by staff. AYES: Barto, Ellmore, Harris, Klaustermeier, Langford, Lowrey, and Rosene NOES: None ABSTAIN: None ABSENT: None ITEM NO. 4 NEWPORT PLACE PLANNED COMMUNITY DEVELOPMENT PLAN AMENDMENT (PA2023-0082) Site Location: Generally bounded by MacArthur Boulevard, Jamboree Road, Birch Street and Bristol Street North Summary: An amendment to Newport Place Planned Community Development Plan (PC-11) to change the minimum affordable housing percentage of the Residential Overlay from thirty percent (30%) to fifteen percent (15%). Recommended Action: 1. Conduct a public hearing; 2. Find this Amendment is not subject to the California Environmental Quality Act ("CEQA") under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA; and 3. Adopt Resolution No. PC2023-025 recommending approval of a Planned Community Development Plan Amendment to modify the minimum inclusionary affordable housing percentage to the City Council. Deputy Community Development Director Campbell used a slide presentation to introduce the public hearing to modify the Newport Place Planned Community text requested by the City Council that is related to a reduced Affordable Housing inclusionary percentage to from 30 percent to 15 percent. He reviewed the vicinity map, Newport Place background, residential overlay and Land Use Plan, proposed amendment details, California Environmental Quality Act exemption, recommended actions, and next steps. In response to Secretary Klaustermeier's question, Deputy Director Campbell relayed that lower affordable housing is defined by State law and the area median income (AMI) and clarified that the amendment would reduce the required amount of affordable housing without changing the affordability level. Page 5 of 9 12-26 DocuSign Envelope ID: AC2F3D1 B-4597-493D-AC6C-E2FA1 EE0153B Planning Commission Meeting June 22, 2023 Assistant City Attorney Summerhill reviewed the AMI amounts for very low income, low income, and moderate income based on a four -person family. In response to Secretary Klaustermeier's question, Deputy Director Campbell explained the State Density Bonus Law parameters to achieve a 15 percent minimum affordability, as per State law. In response to Commissioner Langford's question, Deputy Director Campbell thought that the California Department of Housing and Community Development (HCD) would agree that 15 percent is compliant with the Housing Element. No ex parte communications were reported by the Commissioners. Chair Ellmore opened the public hearing. Jim Mosher relayed that no discussion on the matter took place with the City Council, no order was given to the Planning Commission, a request was made by Council Member Weigand, the Council issued an amendment related to the affordability percentage, and his interpretation that the item is about whether the percentage should be lowered and to what percentage. Furthermore, he suggested that the amendment would create an inconsistency with the Housing Element and the airport area. Nancy Scarbrough reviewed the 2022 Keyser Marston Associates Inclusionary Housing Financial Evaluation which states that 15 percent is the most mathematically, efficient, and advantageous percentage to use to get the 50 percent density bonus; however, she thought that more sites would be needed for planning or building by reducing the percentage, the total unit development would double, and HCD approved the Housing Element with 30 percent affordable housing. As a result, she questioned if lowering the percentage to 15 percent is in the best interest of the City. Deputy Director Campbell indicated that the study revealed that 30 percent is likely infeasible for most projects and creates a hurdle and thought 15 percent affordable is supported by the analysis, eliminates an impediment, and boosts future production in the Newport Place area above the Density Bonus Law on its own. He noted the related challenges and a good balance for the community and recommended the action. Chair Ellmore closed the public hearing. Motion made by Commissioner Langford and seconded by Vice Chair Rosene to approve the item as recommended by staff. AYES: Barto, Ellmore, Klaustermeier, Langford, and Rosene NOES: None RESUSED: Harris and Lowrey ABSENT: None ITEM NO. 5 NEWPORT VILLAGE PLANNED COMMUNITY DEVELOPMENT PLAN AMENDMENT (PA2023-0071) Site Location: 1550 Avocado Avenue at the corner of Avocado Avenue and San Joaquin Hills Road Summary: Consistent with the City Council's initiation on April 25, 2023, the proposed amendment to the Newport Village Planned Community (PC-27) Development Plan would add "recreational facilities" as an allowed use within the area designated as Area 1. Area 1 encompasses the 2.43-acre property at the corner of Avocado Avenue and San Joaquin Hills Road that is developed with the Orange County Transportation Authority (OCTA) transit facility and surface parking lot. Recommended Action: Page 6 of 9 12-27 DocuSign Envelope ID: AC2F3D1 B-4597-493D-AC6C-E2FA1 EE0153B Planning Commission Meeting June 22, 2023 1. Conduct a public hearing; 2. Find the amendment is not a project subject to the California Environmental Quality Act (CEQA) in accordance with Section 21065 of the California Public Resources Code and Sections 15060(c)(2), 15060(c)(3), and 15378 of the California Code of Regulations Title 14, Division 6, Chapter 3 (CEQA Guidelines). The proposed action is also exempt pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment; and 3. Adopt Resolution No. PC2023-026, recommending the City Council approve a Planned Community Development Plan Amendment allowing recreational facilities in Area 1 of the Newport Village Planned Community. Associate Planner Joselyn Perez utilized a presentation to review a vicinity map, surrounding land uses, the existing Orange County Transportation Authority (OCTA) site, the proposed amendments to PC-27, staff recommendation, and next steps. No ex parte communications were reported by Commissioners. Chair Ellmore opened the public hearing. Jim Mosher noted two grammatical errors and questioned if Area 1 is truly large enough for a field as stated in Section 3, whether the night lighting of the courts would be consistent with the development plan and the residential uses to the east, and if the amendment would be contrary to promoting alternative means of transportation by eliminating existing parking spaces at the transit facility. Deputy Director Campbell clarified that night lighting is referring to security and overnight lighting and any lighting to illuminate a sport court would be evaluated at the time a project comes forward. He agreed that a "field" may not be the right wording and suggested removing it. Mr. Campbell explained that as part of the amendment, required parking for the transit facility and any future recreational use will be evaluated when a project comes forward. Lastly Mr. Campbell shared a conversation from his earlier meeting with OCTA regarding the site and how current survey results indicate only a 30 percent utilization on average of the existing parking lot. Chair Ellmore closed the public hearing. In response to Vice Chair Rosene's question, Assistant City Attorney Summerhill noted that there are exemptions that could and should apply in this scenario. Motion made by Commissioner Harris and seconded by Commissioner Langford to approve the item as recommended by staff. AYES: Barto, Ellmore, Harris, Klaustermeier, Langford, Lowrey, and Rosene NOES: None ABSTAIN: None ABSENT: None Vill. DISCUSSION ITEMS ITEM NO. 6 NEW VISITOR -SERVING ACCOMMODATIONS MU-W2 AND MU-CV/15T" ST Site Location: Various properties located in Lido Village, Cannery Village, McFadden Square and mixed -use areas on 15t" Street, Agate Avenue, and Marine Avenue Summary: Page 7 of 9 12-28 DocuSign Envelope ID: AC2F3D1 B-4597-493D-AC6C-E2FA1 EE0153B Planning Commission Meeting June 22, 2023 At City Council's request on May 23, 2023, Planning Commission was directed to identify opportunities for to modify Titles 20 and 21 of the Newport Beach Municipal Code to facilitate new visitor serving accommodation opportunities within the MU-W2 and MU-CV/15t" Street zones. The request also included several considerations: 1) applicability to multi -unit residential developments with 20 or more residential units under common ownership, 2) requirement for professional management, 3) requirement for project amenities, and 4) where there are no parking impacts that could reduce the availability of parking in residential neighborhoods. Recommended Action: 1. Receive public comment; Find recommended actions exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3 because it has no potential to have a significant effect on the environment; 3. Form an ad hoc committee consisting of three Planning Commissioners appointed by the Chair to develop a recommendation for the Planning Commission to consider and forward to the City Council; or 4. Instruct staff to prepare a report focusing on the topic that will be reviewed by all the Planning Commissioners at a future date. Deputy Director Campbell utilized a presentation to provide an overview of the City Council's direction to facilitate new visitor serving accommodation opportunities within the MU-W2 and MU-CV/15t" Street zones, vicinity map, and background on the MU-W2 and MU-CV/15t" Street zones. He asked the Planning Commission to either establish an ad hoc subcommittee or direct staff to prepare a report with code amendments. Jim Mosher thought the Planning Commission does not have enough information to move forward and suggested the item be added to the City Council agenda for discussion and direction. Chair Ellmore, Vice Chair Rosene, and Commissioner Barto supported a report prepared by staff. Motion made by Commissioner Barto and seconded by Chair Ellmore to instruct staff to prepare a report focused on the matter for review by the Planning Commission at a future date. AYES: Barto, Ellmore, Harris, Klaustermeier, Lowrey, and Rosene NOES: None RECUSED: Langford ABSENT: None IX. STAFF AND COMMISSIONER ITEMS ITEM NO. 7 MOTION FOR RECONSIDERATION None ITEM NO. 8 REPORT BY THE COMMUNITY DEVELOPMENT DIRECTOR OR REQUEST FOR MATTERS WHICH A PLANNING COMMISSION MEMBER WOULD LIKE PLACED ON A FUTURE AGENDA Deputy Director Campbell reported that the July 6 Planning Commission meeting is the annual meeting with three items and officer elections scheduled, City Council will appoint two commissioners by the next meeting, three items are anticipated for the July 20 meeting, and City Council approved the VE Zone amendment with changes to the side yard encroachment. Page 8 of 9 12-29 DocuSign Envelope ID: AC2F3D1 B-4597-493D-AC6C-E2FA1 EE0153B Planning Commission Meeting June 22, 2023 ITEM NO. 9 REQUESTS FOR EXCUSED ABSENCES Commissioner Lowrey requested an excused absence on August 17th. Commissioner Barto requested a possible excused absence on July 6th. Vice Chair Rosene requested a possible excused absence on July 20th. X. ADJOURNMENT - With no further business, Chair Ellmore adjourned the meeting at 7:58 p.m. The agenda for the June 22, 2023, Planning Commission meeting was posted on Thursday, June 15, 2023, at 12:28 p.m. in the Chambers binder, on the digital display board located inside the vestibule of the Council Chambers at 100 Civic Center Drive, and on the City's website on Thursday, June 15, 2023, at 12:15 p.m. C—_ C:77�_� Curtis Ellmore, Chair Tom. H444-4 Tristan Harris, Secretary Page 9 of 9 12-30 Attachment E Planning Commission Resolution No. PC2023-025 12-31 DocuSign Envelope ID:23A974E3-E32D-4068-94E1-F13D54E51B16 RESOLUTION NO. PC2023-025 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA RECOMMENDING CITY COUNCIL APPROVE AN AMENDMENT TO NEWPORT PLACE PLANNED COMMUNITY DEVELOPMENT PLAN (PC-11) TO REVISE THE MINIMUM AFFORDABILITY HOUSING PERCENTAGE OF THE RESIDENTIAL OVERLAY (PA2023-0082) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. Newport Place is a Planned Community (PC) in the Airport Area, generally bounded by MacArthur Boulevard, Jamboree Road, Birch Street and Bristol Street North, was originally designed in the early 1970's with clusters of office parks and industrial uses. The 145-acre area has evolved with light industrial uses being replaced over time with the commercial supported retail and office uses within the original design. The introduction of the Mixed Use — Horizontal 2 (MU-H2) General Plan Land Use classification as a part of the 2006 General Plan Land Use Element, created an opportunity for residential uses. 2. On July 24, 2012, the City Council of City of Newport Beach ("City") amended the Newport Place PC (PC-11) creating the Residential Overlay (Overlay). The Overlay was necessary to secure certification of the 4th Cycle Housing Element as it was, at that time, had a greater potential to accommodate the City's Regional Housing Needs Assessment (RHNA) for lower -income households. The amendment implemented the Mixed Use — Horizontal 2 (MU-H2) General Plan Land Use category for parcels within PC-11. The Overlay included use and development standards for residential projects, and it requires 30 percent of the residential units in a development to be made affordable to lower -income households for a minimum of 30 years. 3. On September 13, 2022, the City adopted the 6th Cycle Housing Element for the 2021- 2029 housing period, and it was certified by the State Department of Housing and Community Development ("HCD") on October 5, 2022. The Airport Area Environs (Airport Area) is one of the five focus areas where new housing opportunity sites are identified to satisfy the RHNA allocation of 4,845 new housing units. At least 2,577 housing units are planned for the Airport Area, which comprises approximately 25 percent of the City's planned housing capacity. In addition to the existing residential sites allowed by the 2006 General Plan Land Use Element and the PC-11's Overlay, a total of 29 new housing opportunity sites have been identified in the PC-11 per the 6th Cycle Housing Element. 4. At the April 11, 2023, City Council meeting, City Council Member Erik Weigand requested that an item be placed on a future City Council agenda that reduced the inclusionary housing percentage for PC-11's Overlay from thirty to 15 percent. 5. On May 9, 2023, the City adopted Resolution No. 2023-25, initiating an amendment to PC- 11 related to the minimum affordability percentage of the PC-11's Overlay ("Amendment"), 12-32 DocuSign Envelope ID: 23A974E3-E32D-4068-94E1 -F1 3D54E51 B1 6 Planning Commission Resolution No. PC2023-025 Paae 2 of 4 in accordance with Section 20.56.050(E) (Development Plan Amendments) and Section 20.56.050(B) (Development Plan) of the Newport Beach Municipal Code ("NBMC"). 6. A public hearing was held on June 22, 2023, in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of the time, place, and purpose of the hearing was given in accordance with California Sections 54950 et seq. of the Government Code ("Ralph M. Brown Act") and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to and considered by the Planning Commission at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. The Amendment is not subject to the California Environmental Quality Act ("CEQA") under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in a physical change to the environment, directly or indirectly. SECTION 3. REQUIRED FINDINGS. An amendment to PC-11 is a legislative act. Neither PC-11 or Chapter 20.56 (Planning and Zoning, Planned Community District Procedures), 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 the Amendment. Notwithstanding the foregoing, the Amendment is consistent with the following City of Newport Beach 6th Cycle Housing Element Policy and Policy Action: Finding and Facts in Support of Findings: Housing Policy 4.1 Housing opportunities for as many renter- and owner -occupied households as possible in response to the market demand and RHNA obligation for housing in the City. The Amendment would be a step in the implementation of the 6th Cycle Housing Element by mitigating potential governmental constraints through the reduction of affordable housing percentage from 30 to 15 percent, to facilitating construction of market -rate housing and affordable for all income groups. According to the February 17, 2022, Inclusionary Housing Financial Evaluation, prepared by Keyser Marston Associates for the City of Newport Beach, inclusionary housing percentages higher than 15 percent would likely be too high rendering most residential projects financially infeasible. Reducing the inclusionary percentage would reduce the potential impediment and would also affirmatively further fair housing consistent with Policy Action 4A: Affirmatively Furthering Fair Housing provided in the 6th Cycle Housing Element. 01-17-23 12-33 DocuSign Envelope ID: 23A974E3-E32D-4068-94E1 -F1 3D54E51 B1 6 Planning Commission Resolution No. PC2023-025 Paae 3 of 4 SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: The Planning Commission of the City of Newport Beach hereby finds this action is covered under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, in accordance with the recitals under Section 2 of this Resolution. 2. The Planning Commission of the City of Newport Beach hereby recommends the City Council of Newport Beach adopt Newport Place Planned Community (PC-11) Text Amendment, which is attached hereto as Exhibit "A", and incorporated herein by reference. PASSED, APPROVED, AND ADOPTED THIS 22nd DAY OF JUNE, 2023. AYES: Barto, Ellmore, Klaustermeier, Langford, and Rosene NOES: None RECUSED: Harris and Lowrey ABSENT: None BY: Curtis Ellmore, Chair BY: SAW wustf kfke° Sarah Klaustermeier, Secretary 01-17-23 12-34 DocuSign Envelope ID: 23A974E3-E32D-4068-94E1 -F1 3D54E51 B1 6 Planning Commission Resolution No. PC2023-025 Paae 4 of 4 EXHIBIT "A" Amendment to Newport Place Planned Community (PC11) Amend Part III. Residential Overlay Zone, Section IV.A .3 to read as follows: A minimum of 3015 percent of the units within the residential development shall be affordable to lower -income households and subject to a 30-year affordability covenant. 01-17-23 12-35 Attachment F ALUC Staff Report, dated July 20, 2023 12-35 AIRPORT LAND USE COMMISSION ORANGE COUNTY FOR ORANGE COUNTY ..lLUG 3160 Airway Avenue • Costa Mesa, California 92626 - 949.252.5170 fax: 949.252.6012 AGENDA ITEM 2 July 20. 2023 TO: Commissioners.'Alternates FROM: Lea Choum, Executive Officer SUBJECT: City of Newport Beach: Request for Consideration of Newport Place Planned Community (PC-11) Amendment related to Affordable Housing Percentage of` Residential Overlay Background In June 2012, the City of Newport Beach referred the Newport Place PC to the ALUC for a consistency review. At that time the planned community was being amended to create the Residential Overlay and allow residential development consistent with the MU-1­12 General Plan I .and I :se category that allows housing or mixed -use development for parcels located within the Newport Place PC (See Attachment 1). The amendment permitted lower income residential as ,bell as established minimum development regulations including building heights, setbacks. and parking requirements and brought Newport Place PC into conformance with the 2006 Genera; Pl;.n Update. The Commission reviewed the Newport Place PC amendment and found it consistent 5. ith the -1ELt :'P for• JWA (See Attachment 2 to view excerpts of the staff report from June 21, 2012). The City of Newport Beach is proposing an amendment to the Newport Place PC Development Plan to revise the minimum affordability housing percentage for residential development A ithin the Planned Community's Residential Overlay from thirty percent (30%) to fifteen percent (15%). No other changes are proposed. The current residential overlay includes use and development standards for residential projects and requires thirty percent (30%) of the residential units in a development to be made affordable to lower - income households for a minimum of 30 years. The City is proposing to lower this percentage to 150'0 to promote housing production and to make residential projects more financially feasible. The City also states that they must evaluate a variety of policies and regulations to identify impediments and incenti,es to housing production to meet their RHNA obligation for the 6`f' Cycle Hou,,ing Element for the 2021-2029 housing period. I lie boundary of the Newport Place PC begins at MacArthur Boulevard extending westerly bounded by Jamboree Road. Bristol Street North, and Birch Street as depicted on the vicinity map (See Attachment 3). The percentage change will apply to parcels that have the existing General Plan Land Use Designation of Mixed -Use Horizontal (MU-142), shown as the grey shaded areas on the 'tiewport Place PC Residential Overlay Exhibit (Attachment 1). 12-36 Agenda Item 2 Newport Place PC Amendment July 20, 2023 Page 2 The City of Newport Beach has scheduled public hearings on the proposed Newport Place PC Amendment as follows: June 22, 2023 City of Newport Beach Planning Commission July 25, 2023 City of Newport Beach City Council JWA AELUP Issues Regarding Aircraft Noise Impacts: The Newport Place PC is located within the 60 and 65 CNEL Noise Contours for JWA (See Attachment 4). The Newport Place PC allows for residential within the 60 CNEL Noise Contour for JWA and contains the following Airport Noise Compatibility policies: 1. Residential development shall be located outside the JWA 65 dB CNEL noise contour, specified by the 1985 JWA Master Plan. 2. Notice of aircraft overflight and noise shall be posted at all public parks and designated outdoor common and recreational areas. 3. Notice shall be provided to all future residents to inform of potential annoyances or inconveniences associated with residing in proximity to airport operations such as noise, vibration, and odors. The properties eligible for the residential overlay with the MU-H2 land use designation are within the 60 CNEL noise contour (Attachment 1). Per the AELUP for JWA, residential developments are normally consistent within the 60 CNEL noise contour as long as conventional construction methods are used. On September 16, 2021 the City of Newport Beach brought its Draft Housing Element Update to the ALUC for a consistency review. The ALUC found the Newport Beach Housing Element Update Inconsistent with the AELUP for JWA. The City of Newport Beach overruled the ALUC on September 16, 2021 and on September 13, 2022 adopted the 6`' Cycle Housing Element for the 2021- 2029 housing period. See Attachment 5 to view the adopted Housing Sites Inventory within the JWA CNEL Noise Contours. The approved Housing Element Update includes housing opportunity sites within the 65 CNEL noise contour including opportunity sites within Newport Place PC-11. The parcels shown in green are proposed new sites that the City has deemed suitable for residential development. Although opportunity sites are approved within the Newport Place PC, the City is not proposing to amend the Newport Place PC Development Standards at this time to accommodate residential in the 65 CNEL noise contour. The City would be required to bring any future PC amendments to the ALUC for review. The only change proposed to the Newport Place PC Development Standards is the affordable housing percentage to be changed from 300.0 to 15%. 12-3 7 Agenda Item 2 Newport Place PC Amendment July 20, 2023 Page 3 Regarding Height Restrictions: Newport Place PC is within the Federal Aviation Administration (FAA) Notification Area (See Attachment 6) and the Federal Aviation Regulation (FAR) Part 77 Obstruction Imaginary Surfaces for JWA (See Attachment 7). The proposed building height for projects within the residential overlay is 55 feet. With a site elevation of approximately 50 feet above mean sea level (AMSL), projects developed at a maximum height of 55 feet would not penetrate the obstruction imaginary surface for this project area which would be penetrated at 206 feet AMSL. The PC text states that the heights of a structure can be increased with the approval of a site development review, but have to meet the following building height requirements proposed on page 47 in the PC Section V. General Development Standards for Residential: A. Building Height "Maximum building heights shall be limited to a height limit of 55 feet. The height of a structure can be increased with the approval of a site development review and subject to required findings specified in Section 20.30.060.C.3 of the Newport Beach Zoning Code but shall not penetrate Federal Aviation Regulation (FAR) Part 77, Obstruction Imaginary Surfaces for John Wayne Airport unless approved by the Airport Land Use Commission (ALUC), shall be in compliance with FAR Part 77, and comply with the requirements of Section 20.30.060.E of the Newport Beach Zoning Code (Airport Environs Land Use Plan for John Wayne Airport and the Airport Land Use Commission Review Requirements)." As stated in the Building Height requirement above, building heights must also comply with Section 20.30.060.E of the Newport Beach Zoning Code which contains the following requirements for projects located within the Airport Area for JWA: 1) Buildings and structures shall not penetrate Federal Aviation Regulation Part 77 Obstruction Imaginary Surfaces for JWA unless found consistent by the Airport Land Use Commission (ALUC). 2) In accordance with FAR Part 77, applicants proposing buildings or structures that penetrate the 100:1 Notification Surface shall file a Form 7460-1 Notice of Proposed Construction or Alteration with FAA. A copy of the application shall be submitted to ALUC, and the applicant shall provide the City with FAA and ALUC responses. 3) Development projects that include structures higher than 200 feet above existing grade shall be submitted to the Airport Land Use Commission (ALUC) for review. In addition, projects that exceed a height of 200 feet above existing grade shall file Form 7460-1 with the FAA. Attachment 7 also shows that Newport Place PC borders the approach, departure, and transitional surfaces for JWA. Regarding Flight Tracks and Safety Zones: Newport Place PC is located within Safety Zone 6 .. Traffic Pattern Zone and a portion of the PC is within Safety Zone 3 _. Inner Turning Zone (See Attachment 8). The residential overlay is not located within Safety Zone 3. According to the California Airport Land Use Planning Handbook, noise and overflight should be considered in Safety Zone 6. 12-38 Agenda item 2 Newport Place PC Amendment July 20, 2023 Page 4 Attachment 9 illustrates flight tracks provided by the John Wayne Airport Noise Office for the City on three separate days in January, June, and December 2022 and are color coded based on aircraft elevation. As shown on the exhibits there are flight tracks over the Newport Place PC. Regarding Heliports: The development of heliports was not discussed within the Newport Place PC Amendment and is not proposed as part of the project. Heliports are not a permitted use without the prior approval and issuance of a conditional use permit which establishes the maintenance and operation of such a use. The Newport Beach General Plan includes language that states proposals to develop new heliports must be submitted through the City to the ALUC for review and action pursuant to Public 1.'tilities Code Section 21661.5 and includes the requirement that proposed heliport projects must comply fully with the State permit procedure provided by law and with all conditions of approval imposed or recommended by FAA, by the ALUC for Orange County and by CaltransiDivision of Aeronautics. Environmental Compliance The City of Newport Beach Planning Commission found the proposed Newport Place Planned Community Development Plan amendment not subject to the California Environmental Quality Act under Sections 15060(c)(2), as the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment and 15060(c)(3), that the activity is not a project as defined in Section 15378 of the CEQA guidelines. Conclusion Attachment 10 to this report contains the project submittal package received from the City of Newport Beach for your reference. ALUC staff has reviewed this project with respect to compliance with the AELUP for JWA, including review of appropriate height restrictions, imaginary surfaces, and noise. The City is proposing to Amend the Newport Place PC as follows: Amend Part III. Residential Overlay Zone, Section IVA.3 to read as follows: "A minimum of 3-0 15 percent of the units within the residential development shall be affordable to lower -income households and subject to a 30-year affordability covenant." No other changes to the Newport Place PC Development Standards are being proposed at this time. The PC still contains airport noise compatibility policies and height restrictions that promote consistency with the AELUP for JWA. As part of the Newport Place PC review, the Commission should also consider the Housing Element Update that was adopted by the City on September 13, 2022 adopting the 6"' Cycle Housing Element for the 2021-2029 housing period. As part of the Housing Element approval the City has approved housing opportunities sites within the Newport Place PC that would allow residential within the 65 CNEL noise contours. The ALUC found the Housing Element Update Inconsistent with the AELUP for JWA based upon introducing residential uses in close proximity to an airport that may be incompatible with general welfare of the inhabitants within the vicinity of the airport possibly resulting in noise and safety impacts. 12-39 Agenda Item 2 Newport Place PC Amendment July 20, 2023 Page 5 The Housing Element Update identified the Airport Area as one of the five focus areas where new housing opportunity sites are identified to satisfy the RHNA allocation of 4,845 new housing units. Newport Place PC -I I is within the Airport Area. Because additional residential is designated within Newport Place PC, the Commission could find the Newport Place PC inconsistent due to the potential to build residential within the 65 CNEL contour, introduce residential development within safety zones and subject future residents to aircraft overflight. Although the City is currently only proposing an amendment to the affordable housing percentage in Newport Place PC as part of this submittal, it's Draft Planning Commission Resolution No. 2023-025 (included in Attachment 10) contains facts and findings that seem to tie the proposed affordable housing change to the City's approved Housing Element Update. This makes it difficult to separate the relationship of the two documents. The wording in the City's draft resolution is as follows: Planning Commission Draft Resolution, Section 1. Statement of Fact #3: "On September 13, 2022, the City adopted the 6th Cycle Housing Element for the 2021- 2029 housing period, and it was certified by the State Department of Housing and Community Development ("HCD") on October 5, 2022. The Airport Area is one of the five focus areas where new housing opportunity sites are identified to satisfy the RHNA allocation of 4,845 new housing units. At least 2,577 housing units are planned for the Airport Area, which comprises approximately 25 percent of the City's planned housing capacity. In addition to the existing residential sites allowed by the 2006 General Plan Land Use Element and the PC- 11's Overlay, a total of 29 new housing opportunity sites have been identified in the PC -I 1 per the 6th Cycle Housing Element." Planning Commission Draft Resolution, Section 3, Finding and Facts in Support of Findings: "The Amendment would be a step in the implementation of the 6" Cycle Housing Element by mitigating potential governmental constraints through the reduction of affordable housing percentage from 30 to 15 percent, to facilitating construction of market -rate housing and affordable for all income groups. According to the February 17, 2022, Inclusionary Housing Financial Evaluation, prepared by Keyser Marston Associates for the City of Newport Beach, inclusionary housing percentages higher than 15 percent would likely be too high rendering most residential projects financially infeasible. Reducing the inclusionary percentage would reduce the potential impediment and would also affirmatively further fair housing consistent with Policy Action 4A: Affirmatively Furthering Fair Housing provided in the 6th Cycle Housing Element." Staff reiterates that the opportunity sites that were adopted with the Housing Element Update were found to be inconsistent with the AELUP for JWA. A consistency determination of the proposed affordable housing percentage change would not change the Commission's inconsistency determination of the opportunity sites adopted within the Housing Element Update. Recommendation: That the Commission find the proposed Newport Place PC- 11 Amendment consistent with the AELUP for JWA provided that none of the housing within the Residential Overlay will be located within the 65 dB CNEL noise contour for JWA, as currently required in the Newport Place PC, and that any future changes to the Newport Place PC -I I be brought back to ALUC for review. 12-40 Agenda Item 2 Newport Place PC Amendment July 20, 2023 Page 6 That the Commission find the proposed Newport Place PC -I I Amendment Update inconsistent with the AEL UP for JWA per: 1. Section 2.1.1 Aircraft Noise that the "aircraft noise emanating from airports may be incompatible with general welfare of the inhabitants within the vicinity of an airport." 2. Section 2.1.2 Safety Compatibility Zones in which "the purpose of these zones is to support the continued use and operation of an airport by establishing compatibility and safety standards to promote air navigational safety and to reduce potential safety hazards for persons living, working or recreating near JWA." 3. Section 2.1.4, and PUC Section 21674 which state that the Commission is charged by PUC Section 21674(a) "to assist local agencies in ensuring compatible land uses in the vicinity of ...existing airports to the extent that the land in the vicinity of those airports is not already devoted to incompatible uses," and PUC Section 21674(b) "to coordinate planning at the state, regional and local levels so as to provide for the orderly development of air transportation, while at the same time protecting the public health, safety and welfare." Respectfully submitted, Lea U. Choum Executive Officer Attachments: I . Map of Residential Overlay Area 2. Excerpts from ALUC staff report June 21, 2012, Newport Place PC Amendment 3. Vicinity Map 4. Exhibit of PC area within JWA Noise Contour 5. Housing Element Housing Sites Inventory within JWA CNEL Noise Contours 6. Exhibit of PC area within JWA Notification Area 7. Exhibit of PC area within JWA Obstruction Imaginary Surfaces 8. Exhibit of PC in JWA Safety Zones 9, Flight Track Exhibits 10. City Submittal Package 12-41 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 3 Newport Place Planned Community - Residential Overlay Area Summary Industrial 011ice 22.2 sc. RetalVGeneral Commercial 81.6 ac. CommerclaWastaurant 29.1 ac. Retail CommerclalAiotel Motel 1.1 ac. Commercial Service Station 10.0 ac. site 1 1.2 ac. Hotel General Commercial 94te 1 Site 6 Total 145.2 ac. Service Station 9lte 1 Residential Overlay Opportunity General Commercial for Properties Designated as Sites MU-1-12 within the General Plan Land Use Element (Figure LU11) Pro. 6 Bua. ORice BRe S s _ Reatsunvd Sit* 1 Pro. d� Bus. office Site 9 Pro. S Bus. Office Site 7 Pro. & Bus. Offt� General Commercial Site 5 C� Site 8 D #ro. A Bus. I Industrial Oftpe Sites 1 & 2 Site 3A Pro. dr Bua. offlcm W TO Site 4 �S g A �[.(. Pro. a Bus. Office Site 8 A/ General General Commercial Commercial Stte 7 Slits4 I N .� d Q Industrial Site SA 3 • �O Land Use Plan Newport Place Planned Community ATTACHMENT 12-42 tl AIRPORT LAND USE COMMISSION C►RANGE COUNTY FOR ORANGE COUNTY 3160 Airway Avenue - Costa Mesa, California 92626 - 949.252.5170 fax: 949.252.6012 AGENDA ITEM 1 June 21, 2012 TO: Commissioners/Alternates FROM: Kari A. Rigoni, Executive Officer SUBJECT: City of Newport Beach: Request for Consideration of Airport Area PC Amendment (PC-1 l ) Background The City of Newport Beach is proposing an amendment to the Newport Place Planned Community Development Plan (PC-11) to implement Housing Programs 3.2.2. and 3.2.3 found in the 2008-2014 Housing Element. The amendment would provide permitting and development regulations within PC-11 for affordable housing developments that provide a minimum of 30 percent of the units to lower -income households with the approval of a Site Development Review application. Developments meeting these criteria will also be eligible for a waiver of the minimum 10-acre site area required. The amendment would also establish minimum development regulations including building heights, setbacks, and parking requirements. The boundary of PC- 11 begins at MacArthur Boulevard extending westerly bounded by Jamboree Road, Bristol Street North, and Birch Street as depicted on the vicinity map (See Attachment 1). PC- 11 is part of the Airport Area as designated in the City of Newport Beach General Plan and Zoning Code. The proposed changes to PC- 11 apply only to parcels that have the existing General Plan Land Use designation of Mixed Use Horizontal (MU-H2) as shown as the grey shaded areas on the vicinity map. The proposed residential overlay will allow residential development in areas zoned for office and industrial uses. The City of Newport Beach completed a comprehensive update of its General Plan in 2006 and a CV Housing Element Update in 2011. Both updates identified the Airport Area as an area to potentially accommodate affordable housing. The MU-H2 land use classification was introduced as part of the Z 2006 General Plan update to allow for mixed -use and multi -family residential within the Airport W Area. The proposed amendment will bring PC- 11 into conformance with the 2006 General Plan Update. V The existing Planned Community text does not provide residential development standards. The Q existing PC text allows for a range of heights, depending on the site, from 50 feet to 167 feet or 9 r stories. City staff consulted with affordable housing developers to determine that a height limit of 55 Q feet is appropriate to facilitate a four-story building that typically can accommodate the 30 to 50 unit per acre density range. The 55-feet may be exceeded with the approval of the Site Development 12-43 Agenda Item 1 Airport Area PC Amendment June 21, 2012 Page 2 Review if additional findings can be made pursuant to Zoning Code Section 20.30.060 C.3 (See Attachment 2). The Planned Community text does include commercial setback and landscape standards including special landscaped streets (Jamboree Road, Bristol Street North, Birch Street, and MacArthur Boulevard) which are maintained in the proposed residential overlay to preserve the existing development pattern of the PC. The residential overlay also includes development standards related to the project providing sufficient amenities, integration of projects within the existing PC, and integration of the affordable units within a specific project (See Attachment 3 to view the proposed development standards for the Residential Overlay). The City of Newport Beach has scheduled public hearings on the proposed Airport Area PC Amendment as follows: June 7, 2012 City of Newport Beach Planning Commission July 12, 2012 City of Newport Beach City Council JWA AELUP Issues Regarding Aircraft Noise Impacts: The properties eligible for the residential overlay with the MU-H2 land use designation are within the 60 CNEL noise contour (See Attachment 4). Per the JWA AELUP, residential developments are normally consistent within the 60 CNEL noise contour as long as conventional construction methods are used. The PC amendment does not address specific noise standards for the Airport Area. However, the City's General Plan Housing, Recreation and Noise Elements do contain policies addressing JWA AELUP noise issues as follows: The Housing Element contains policy H 3.2: H 3.2 Enable construction of new housing units sufficient to meet City quantified goals by identifying adequate sites for their construction. Development of new housing will not be allowed within the John Wayne Airport (JWA) 65 dB CNEL contour, no larger than shown on the 1985 JWA Master Plan. The Recreation Element contains the following policy: R. 1.12 Requires that public parks in the noise impact zone identified in the JWA AELUP be posted with notifications regarding aircraft overflight and noise. The Noise Element contains the following policies: N 3.1 Requires use of JWA AELUP noise contours to ensure new development is compatible with the noise environment. N 3.2 Disallows residential development within the 65 dBA CNEL noise contour in the JWA AELUP. N3.3 Requires consideration of avigation easements in favor or Orange County when noise sensitive uses are proposed in the JWA planning area. 12-44 Agenda Item 1 Airport Area PC Amendment June 21, 2012 Page 3 ALUC staff recommends that the PC text refers to these policies within the General Plan stating that residential developments within the overlay must also adhere to these policies. In addition to the policies above, ALUC staff recommends that the PC text also include language giving notice to future residents that there is an airport in the vicinity. Sample language is included below: Notice of Airport in Vicinity This property is presently located in the vicinity of an airport, within what is known as an airport influence area. For that reason, the property may be subject to some of the annoyances or inconveniences associated with proximity to airport operations (for example: noise, vibration, or odors). Individual sensitivities to those annoyances can vary from person to person. You may wish to consider what airport annoyances, if any, are associated with the property before you complete your purchase and determine whether they are acceptable to you. The Notice of Airport in Vicinity language along with the existing policies within the Newport Beach General Plan will ensure that future housing development within the airport area will follow the development guidelines for noise related to the JWA AELUP. These policies should be referred to within the PC Amendment text. Regarding Height Restrictions: PC -I I is within the Federal Aviation Administration (FAA) Notification Area (See Attachment 5) and the Federal Aviation Regulation (FAR) Part 77 Obstruction Imaginary Surfaces for JWA (See Attachment 6). The proposed building height for projects within the residential overlay is 55 feet. With a site elevation of approximately 50 feet above mean sea level (AMSL), projects developed at a maximum height of 55 feet would not penetrate the obstruction imaginary surface for this project area which would be penetrated at 206 feet AMSL. The PC text also states that the heights of a structure can be increased with the approval of a site development review, but have to meet the following building height requirements proposed on page 44 in the PC Section V. General Development Standards for Residential: A. Building Height Maximum building heights shall be limited to a height limit of 55 feet. The height of a structure can be increased with the approval of a site development review and subject to required findings specified in Section 20.30.060.C.3 of the Newport Beach Zoning Code but shall not penetrate Federal Aviation Regulation (FAR) Part 77, Obstruction —imaginary Surfaces, for John Wayne Airport unless approved by the Airport Land Use Commission (ALUC), shall be in compliance with FAR Part 77, and comply with the requirements of Section 20.30.060.E of the Newport Beach Zoning Code (Airport Environs Land Use Plan for John Wayne Airport and the Airport Land Use Commission Review Requirements). 12-45 Agenda Item I Airport Area PC Amendment June 21, 2012 Page 4 As stated in the Building Height requirement above, building heights must also comply with Section 20.30.060.E of the Newport Beach Zoning Code which contains the following requirements for projects located within the Airport Area for JWA: 1) Buildings and structures shall not penetrate Federal Aviation Regulation Part 77 Obstruction Imaginary Surfaces for JWA unless found consistent by the Airport Land Use Commission (ALUC). 2) In accordance with FAR Part 77, applicants proposing buildings or structures that penetrate the 100:1 Notification Surface shall file a Form 7460-1 Notice of Proposed Construction or Alteration with FAA. A copy of the application shall be submitted to ALUC and, the applicant shall provide the City with FAA and ALUC responses. 3) Development projects that include structures higher than 200 feet above existing grade shall be submitted to the Airport Land Use Commission (ALUC) for review. In addition, projects that exceed a height of200 feet above existing grade shall file Form 7460-1 with the FAA. With the inclusion of the policies listed above, the PC text does ensure consideration of JWA AELUP height restrictions and ALUC review. Regarding Heliports: The development of heliports was not discussed within the Airport Area PC Amendment and is not proposed as part of project. Heliports are not a permitted use without the prior approval and issuance of a conditional use permit which establishes the maintenance and operation of such a use. The Newport Beach General Plan includes language that states proposals to develop new heliports must be submitted through the City to the ALUC for review and action pursuant to Public Utilities Code Section 21661.5 and includes the requirement that proposed heliport projects must comply fully with the State permit procedure provided by law and with all conditions of approval imposed or recommended by FAA, by the ALUC for Orange County and by CaltranslDivision of Aeronautics. Environmental Compliance A Negative Declaration (ND) was prepared for the Housing Element Update. A subsequent Negative Declaration for the proposed PC amendment is not required to be prepared pursuant to CEQA Guidelines Section 15162 because the proposed amendment implements Housing Programs HP3.2.2 and 3.2.3, and does not constitute substantial changes that would involve new significant environmental effects or result in the adoption of mitigation measures. Future residential development that could occur pursuant to the proposed amendment would be subject to further site - specific environmental evaluations. The ND was originally circulated for public review from September 30, 2011 to October 31, 2011 and subsequently adopted by the City Council on November 22, 2011. Conclusion Attachment 7 to this report contains excerpts from the project submittal package received from the City of Newport Beach for your reference. ALUC staff has reviewed this project with respect to compliance with the JWA AELUP, including review of appropriate height restrictions, imaginary surfaces, and noise. Based upon staff s review, the proposed PC Amendment would be Consistent with the Commission's JWA AELUP. In its submittal package, the City of Newport Beach emphasizes that the Planned Community text refers to the following conditions to ensure adherence to the AELUP and FAA restrictions. The language is referred to on page 49 of the Planned 12-46 Agenda Item 1 - Airport Area PC Amendment June 21, 2012 Page 5 Community Text within the General Development Standards for Residential and states that heights shall comply with the requirements of Section 20.30.060.E of the Newport Beach Zoning Code (AELUP for JWA and the Airport Land Use Commission (ALUC) Review Requirements). Section 20.30.060.E is listed below: E. Airport Environs Land Use Plan (AELUP) for John Wayne Airport and Airport Land Use Commission (ALUC) Review Requirements. AELUP Requirements a. Buildings and structures shall not penetrate Federal Aviation Regulation (FAR) Part 77 Imaginary Obstruction Surfaces for John Wayne Airport unless found consistent by the Airport Land Use Commission (ALUC). b. In compliance with FAR Part 77, applicants proposing buildings or structures that penetrate the 100:1 Notification Surface shall file a Form 7460-1 Notice of Proposed Construction or Alteration with FAA. A copy of the FAA application shall be submitted to ALUC and the applicant shall provide the City with FAA and ALUC responses. 2. Citywide Requirements. Development projects that include structures higher than 200 feet above existing grade shall be submitted to the ALUC for review. In addition, projects that exceed a height of 200 feet above existing grade shall file Form 7460-1 with the Federal Aviation Administration (FAA). (Ord. 2010-21 1(Exh. A)(part), 2010) Because of the close proximity to the airport, Staff recommends that the PC text refer to the following policies related to noise and incorporate language in the PC text giving future residents Notice of an Airport in the Vicinity. The policies which should be referenced in the PC text are listed below: R. 1.12 Requires that public parks in the noise impact zone identified in the JWA AELUP be posted with notifications regarding aircraft overflight and noise. In addition to public parks, expand the language to include designated outdoor common or recreational areas within the noise impact zone identified in the JWA AELUP be posted with notifications regarding aircraft overflight and noise. N 3.1 Requires use of JWA AEL UP noise contours to ensure new development is compatible with the noise environment. N 3.2 Disallows residential development within the 65 dBA CNEL noise contour in the JWA AELUP N3.3 Require consideration of avigation easements in favor or Orange County when noise sensitive uses are proposed in the JWA planning area. In addition to referencing the policies above, ALUC staff recommends that the PC text also include language requiring notice to be given to future residents that there is an airport in the vicinity. Sample language is included below: 12-4 7 Agenda Item 1 — Airport Area PC Amendment June 21, 2012 Page 6 Notice of Aimort in Vicinity This property is presently located in the vicinity of an airport, within what is known as an airport influence area. For that reason, the property may be subject to some of the annoyances or inconveniences associated with proximity to airport operations (for example: noise, vibration, or odors). Individual sensitivities to those annoyances can vary from person to person. You may wish to consider what airport annoyances, if any, are associated with the property before you complete your purchase and determine whether they are acceptable to you. Recommendation: 1. That the Commission find the proposed Airport Area PC Amendment Consistent with the AEL UP for JWA. 2. That the Commission find the proposed Airport Area PC Amendment Consistent with the AELUP for Heliports. Respectfully submitted, eari A. Rigoni Executive Officer Attachments: 1. Map of Residential Overlay Area 2. Zoning Code Section 20.30.060 C.3 3. Proposed PC text for Residential Overlay 4. Exhibit of PC area within JWA Noise Contour 5. Exhibit of PC area within JWA Notification Area 6. Exhibit of PC area within JWA Obstruction Imaginary Surfaces 7. Excerpts of City Submittal Package 12-48 :t. A minitt3�im of 30 penrent of the units within the residential development shall be affordable to lower -income households and subject to a 30-year affordability covenant. 4. Densities shall be limited to a minimum of 30 dwelling units per acre and a maximum of 50 dwellinguper acre. 5. Sites shall be located such that any noise, dust smoke, vibration. odor, toxic or noxious matter that ijt4y he gencrated by existing commercial or industrial uses in the surrounding environment would not negative]- impact future residents of the development. 6. Resid_untial. dwellings shall ,_be permitted as replacement of existing nonresidential uses. The number of peak hour trips generated by the development -of the site shall not exceed the number, of trips that would have resulted from the existing development of the underly-in permitted nonresidential uses. A standardized set of conversion rates provided bey the City Traffic Engineer shall be utilized. .?_Residential development shall be subject to the -maximum development allocation for the Airport Area establis3led b, General Plan Land I~1se Policy 6.15.5. Section V. _General Development Standards for Re.,idential Residential development shall be subject to the development standards applicable to the Multi-Unit_(RM) residential zoning district as specified in the Newport Beach Zoning Code, except as specified below: A. Building Height Maximum building heights shall be limited to a height limit of 55 feet. The height of a structure can be increased up to a maximum height „limit of 300 feet, with the approval of a site development review and subiect to required findings specified in Section 20.30.060.C.3 of the Newport Beach Zoning Code. Heights shall also comply with - the_ requirements of Section 20.30.060.E of the NcWPort Beach. oninz Code (Airport Environs Land Use Plan for John Wayne Ai!port and the Airport Land Use Commission Review Reuuiremcnts). B. Floor Area Limit None. 49 12-49 C. Setbacks All setbacks shall be measured from the propeM line. For the u ose of this ordinance, a street side property line is that line created by the ultimate rjyh�-of-wav line of the frontage street. l . Street Setback ...... Thirty (30) feet minimum, except that unsu rtL:d.__rgQfs or sunscreens may proiect sip (f}) feet into the setback area. 2. Interior Setback Ten (10) feet. except on a through ;lot in which case the required street setback shall be observed. 3. Footprint Lots Except as reauired by the Building Code there shall be no additional setback requirements for buildings within footprint lots. Provided, however, that buildings within footprint lots shall be so located as to observe the setbacks from streets and existing lot lines.reouired under Part III, Section I11.B.1, 2 and 3. D. Signs All sif2nape shall be as specified in Chapter 20.42 of the N Lv Beach Zoning Code. E._Amenities and Neighborhood Integration Due to the potential land use —incompatibility with other uses within the established commercial or industrial area, residential development shall incorpgmta�suflicient amenities te.U.- parks, clubhouse, pool, etc.) for thL LL of -the -residents and incorporate necessary improvements (eg.,: estrian walkways, open space, recreational space, V es.trian_rand �bic�.cle connections) to allow integration into the existing community and larger residential development that may occur in the future. The number and type of amenities_ required and necessary improvements shall be determined through the Site Development Review process based on the size, density. location, and any other factors deemed relevant. Affordable units shall be desi ned and distributed within the residential development as follows: 50 12-50 I. Number of Bedrooms. Affordable units shall reflect the range of numbers of bedrooms provided_inthe residential development proieia as a whale: - -___—- 2. Comparable . Ouality_ and Facilities. Affordable units shall be comparable in the facilities provided (e.g., laundry, recreation. etc.) and in the quality of construction and exterior design to the market - rate units: 3. _Size. Affordable units may be smaller and have different interior finishes and features than the market -rate units: and 4. Location. Affordable units shall be dispersed throughout the residential development, unless clustering is allowed by the review authority. Parking shall comply with the requiremcnts and smnc aL6 s_pecifed in Chapter 20.40 of tht Newport %,Aa h Municipal Code . fo_r multi -unit residential development. G. Landscape A1! landscaping shall comply «ith the requirements specified in Chapter 20.36 of the Newport Beach Municipal Code for multi -unit residential development, with the following exceptions: 1. Special Landscaped Street The entire area between the curb and the building setback line shaitb landscaped, except for any drivew�)y in said area. Tree size to be no less than 24-inch box. 2. Other Streets The entire area between the curb and a point ten (10) feet back in the front property line shall be landscaped except for any driveway in said area. Tree size to be no less than 24- inch box. - _-- — bi 12-51 a. Re -designate Industrial Site 4 to Professional and Business Offices Site 9. b. Change the parking requirement for office uses within Professional and Business Offices Site No. 9 to one space per 281 square feet, which allows all of the buildings to be occupied with office uses. C. Add a provision that requires Planning Director review of the parking configuration in Professional and Business Offices Site No. 9. Revising the Land Use Plan, permitted uses and development standards of the Newport Place Planned Community as they relate to the Newport Commerce 16.9 acre site bounded by Birch Street, Dove Street, Westerly Place and Quail Street. [36] Planned Community Text Amendment No. 36, adopted on October 25, 2011: Add vehicle storage facility as a permitted use on Hotel Site 2-13 subject to the issuance of a use permit and a finding that the use is supportive of the principal uses permitted in the Newport Place Planned Community text. [37] Planned Community Text Amendment No. 37, adopted on November 22, 2011: a. Change the zoning designation of the subject property from "Restaurant Site 1" to "General Commercial Site 8." b. A transfer of development rights to allow the transfer of 48 unbuilt hotel units, which equates to Storage Facility at 1301 Quail Street and 1,620 square feet from General Commercial Site 7 (Lexus Dealership at 3901 MacArthur Boulevard) for a total of 5,529 square feet to the subject site, pursuant to Chapter 20.46 (Transfer of Development Rights) of the Municipal Code. [381 Planned Community Text revisions iOrdinance No. 2011- J. adti,hted Insert Date, to allow the following changes: a. To establish a residential _develgpment overlay where Multi -unit residential developments, which include a minimum of 30 percent of the units affordable to lower income households are vermitted subject to site development review. b. . Kevised references to the Plgntitng Director, Planning De�arinient, and gjtgldinr,, Department, to Connnunl , _Development Director, Planning Division, and Building Division, to reflect changes in the City's organizational structure. 5 12-52 1 ger9. YM r r - T. - fffll� 7Q 43O QNEL 0 41 01 Qv W fP� Legend IL C X� ,•City Boundary �,:..New Housing Sites yJ'75 _ i�r �r• CNEL 1{ BAY DRy}#sk e• ss j ;� 1 dB CNEL �` • �. sn �:x� �'r=''r�-"Y� n , +��.�"f�y'� yyip 1 �� � 'r'' 1 dB CNEL INoise Contours & Housing Opportunity Sites ATTACHMENT 5 r� N E N P U N" DEACM Cosy of Nwrporr B*mh GIS Division August 24, 2021 I Nau Cenevrunx� 12-55 NMI a SANTA FOU TAIN AN4 VA L I mel 9W,i El 11! PW WIMNEM J 0oo' PROJECT SITE -A NEWPORT PLACE PLANNEDCOMMUNITY 0 AR, P R ICOH Note: County Unincorporated areas are shown in white. FAR PART 77 John Wayne Airport Obstruction Imaginary Surfaces LEGEND iange County Scale In Feel CITY BOUNDARIES ATTA HMENT 7 AIRPORT BOUNDARIES 12-57 ■ r � a�i ■ , � mgJohn Wayne Airport Safety r LEGEND SAFETY COMPATIBILITY ZONES FOR RUNWAY 2L 2OR IA MEDIUM ®RUNWAYAS DESCRIBED IN THE CALIFORNIA AIRPORT 1, RUNWAY PROTECTION ZONE LAND USE PLANNING HANDBOOK, JANUARY 2002 EDITION) ®SAFETY COMPATIBILITY• FORSHORT2INNER APPROACH DEPARTURE ZONE GENERAL AVIATION RUNWAYAS DESCRIBED IN THE CALIFORNIA AIRPORT 3. INNER TURNING •NE LAND USE PLANNING HANDBOOK.i • • 4. OUTER APPROACH•ZONE CERTIFICATION SIDELINE• 6 TRAFFIC PATTERN . or Orange Co ZONEunty ATTACHMENT _--- • Lea Date 12-58 JOHN WAYNE AIRPORT ORANGE COUN-Y rire rn' John Wayne Airport Access & Noise Office w.e�. v��s.y-� - a•t� ade�'.. p ��;�.�� r - _ }. di41 � � T �j r�.� �+w�ti � ` �� a �� r�� '4 ''# •iYJ+.i � *ti. .. ' O. 1•r �;'' � �_I q[ ` � �:y�'"�2 �Fii .i�l r ++,yr et-V f �'r, r �• �! #. 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Source: John Wayne Airport, Orange VNP0 H S ? e� c,�<►fioRN�P June 20, 2023 Lea Choum, Planning Manager John Wayne Airport, Orange County 3160 Airway Avenue Costa Mesa, CA 92626 100 Civic Center Drive Newport Beach, California 92660 949 644.3200 newportbeachca.gov/communitydevelopment RE: Newport Place Planned Community Amendment Related to Affordable Housing Percentage of Residential Overlay Dear Ms. Choum, Pursuant to Section 4.3 (Amendments to General Plans and Specific Plans [Zoning]) of the Airport Environs Land Use Plan (AELUP) for John Wayne Airport, the City of Newport Beach (City) requests that the Airport Land Use Commission (ALUC) review the City's proposed amendment to Newport Place Planned Community, to revise the minimum affordability housing percentage for residential development within the Residential Overlay from 30% to 15%, for consistency with the Airport Environs Land Use Plan (AELUP) at its July 20, 2023, meeting. Should you have any questions concerning the preceding information, I can be reached at 949- 644-3208 or via email at rung newportbeachca.00v or in my absence, you may contact Jim Campbell, Deputy Community Development Director at 949-644-3210 or via email at icamp beII cD-newportbeachca.gov. Sincerely, os linh Ung �i ipal Planner Attachments: 1. Submittal Form and Checklist 2. June 22, 2023, Planning Commission Staff Report & attachments ATTACHMENT 10 o�AN4e�o0N=Y AIRPORT LAND USE COMMISSION 7i7LY FOR ORANGE COUNTY SUBMITTAL FORM: NEWPORT PLACE PLANNED COMMUNITY AMENDMENT RELATED TO INCLUSIONARY HOUSING PERCENTAGE 1. Name of City or County: City of Newport Beach 2. Contact Information - Name/Title Rosalinh Ung / Principal Planner Agency: Community Development Department —Planning Division Address: 100 Civic Center Drive, Newport Beach, CA 92660 Phone/email: 949-644-3208; rung@newportbeachca.gov 3. Airport Planning Area(s): John Wayne Airport Fullerton Municipal Airport JFTB - Los Alamitos 4. Item being submitted for review (submit each item separately): Planned Community Name of General Plan Element, Specific Plan or Planned Community: Newport Place Planned Community Amendment 5. Scheduled date of Planning Commission Public Hearing: 6/22/2023 6. Tentative date of City Council/Board of Supervisors Public Hearing: 7/25/2023 7. Requested date of ALUC Review: July 20 (Complete submittals must be received by the first day of the month for the next meeting). 8. Does the item submitted propose a change of land use or heights within the airport Notification/Planning Area*? ® No (skip items # 9-12). LYes (continue below). 9. Does the item propose a change of land use within the 7--J60 CNEL or �'65 CNEL noise contours of the airport(s)? No. Please attach an exhibit showing location(s) of the proposed new uses in relation to noise contours. 10. Are noise policies or mitigation measures identified in the proposed item or elsewhere in the General Plan? ® No —Yes - Please attach pages with current (and proposed if applicable) noise policies/mitigation measures highlighted. 11. Does the item submitted propose a change of land use within the Runway Protection Zone (RPZ), Clear Zone (CZ), or Airport Safety Zones of the airport*? ® No _-1 Yes - Please attach exhibit showing location(s) of proposed uses. 12. Does the item submitted propose a change of land use within the Obstruction Imaginary Surfaces*? ® No ❑ Yes 13. Please indicate current 55 feet and proposed 55 feet— no changes to maximum allowed heights. Continued on next page. 12-63 Page 2 SUBMITTAL CHECKLIST: NEWPORT PLACE PLANNED COMMUNITY AMENDMENT ® Cover letter on City/County letterhead. ® Completed Submittal Form. ❑ Link to existing Newport Place Planned Community and proposed General Plan Element, Specific Plan or Zoning Code for this submittal. ® Attachment showing proposed changes to General Plan Element, Specific Plan or Zoning Code Section(s) with strikethrough/underline. Please see attached June 22, 2023 Planning Commission staff report and attachments for detail discussion of proposed amendment, including maps and proposed percentage change to Newport Place Planned Community. ❑ Exhibit showing location(s) of proposed new uses within the Notification Area/Planning Area for airport(s). ❑ Exhibit showing location(s) of proposed new uses in relation to noise contours for airport(s). ❑ Exhibit showing location(s) of proposed new uses in relation to Airport Safety Zones. ❑ Exhibit showing location(s) of proposed new uses in relation to the Obstruction Imaginary Surfaces. ❑ Attachment showing current and proposed noise policies/mitigation measures. ❑ Explanation of how the General Plan, Specific Plan, or Zoning Code address the AELUP standards for noise impact, safety compatibility, and height restriction zones. lick or tap sere to enter text. Describe height and density changes in cover letter and attach pages of General Plan, Specific Plan and/or Zoning Code where maximum heights are specified. *For airport planning/notification areas, noise contours, safety zones and obstruction imaginary surfaces see Appendix D of the applicable Airport Environs Land Use Plan (AELUP) at: httns:l/www.ocair.com/about/administration/�air�ort-governance/commissionsl'airport-land-use- commission/ Noise sensitive uses include but are not limited to community facilities such as: churches, libraries, schools, preschools, day-care centers, hospitals, and nursing/convalescent homes. Mail or Email Submittal Form, Checklist and attachments to: Airport Land Use Commission for Orange County, Attn: Executive Officer, 3160 Airway Avenue, Costa Mesa, CA 92626 / Phone: (949) 252-5170 ALUCinfo@ocai-r.com �.t: 12-64 P4R CITY OF NEWPORT BEACH n PLANNING COMMISSION STAFF REPORT June 22, 2023 Agenda Item No. 4 SUBJECT: Newport Place Planned Community Amendment (PA2023-0082) • Newport Place Planned Community Development Plan Amendment SITE LOCATION: Newport Place Planned Community bounded by MacArthur Boulevard, Jamboree Road, Birch Street and Bristol Street North APPLICANT: City of Newport Beach PLANNER: Rosalinh Ung, Principal Planner 949-644-3208 or rung@newportbeachca.gov PROJECT SUMMARY An amendment to Newport Place Planned Community Development Plan (PC-1 1) to revise the minimum affordability housing percentage for residential development within the Residential Overlay, from thirty percent (30%) to fifteen percent (15%). RECOMMENDATION 1) Conduct a public hearing; 2) Find the Amendment is not subject to the California Environmental Quality Act ("CEQA") under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA; and 3) Adopt Resolution No. PC2023-025 recommending approval a Planned Community Development Plan Amendment to modify the minimum inclusionary affordable housing percentage to the City Council (PA2023-0082) (Attachment No. PC 1). 12-65 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 3 Newport Place Planned Communit - Residential Overlay Area Summary Industrial Ortice 22.2 ae. Reta9/Goneral Commercial al.6 ac. CommerclaMeslauraM 291 ae. Retail CommerclalAiolel Motel 1.1 at. Commercial SerAce Station 10.0 at. site t 1.2 at. Hotel General Commercial Srb 1 Stte 6 Total 146.2 sc. Service Slaeon site I Residential Overlay Opportunity General Commercial for Properties Designated as site 6 MU-1-12 within the General Plan Land Use Element (Figure LU11) Pro. 3 Bus. Ofnoe efts 6 • Restaurant Site 1 Pro. & Bus. Office ~� Site 9 =OM. Pro. & Bus. } General Commercialce E n Site e Site 5 Pro. & Bus. Z Industrial UGC Sites 1 dr 2 Site 3A Pro. i Bus. office STD Site 4 <S� Pro. &Bus. Orrice Site S A J "Y y ti General General Commercial I Commercial I Site T site4 JI rinclustrial Site I a �O Land Use Plan General Newport Place Comme OQ�� SSite2 2 � Planned Community 12-67 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 4 INTRODUCTION Project Setting/Background Newport Place is a Planned Community in the Airport Area that was originally designed in the early 1970's with clusters of office parks and industrial uses. The boundary of PC- 11 begins at MacArthur Boulevard extending westerly bounded by Jamboree Road, Bristol Street North, and Birch Street as depicted on the vicinity map. The 145-acre area has evolved with light industrial uses being replaced overtime with commercial support retail and office uses within the original design. In 2006, the City comprehensively updated its General Plan. At the time, the 3rd cycle Regional Housing Needs Assessment (RHNA) required the City to create additional housing opportunities. The 2006 General Plan included several new mixed use land use categories including the MU-H2 applied to many properties in the Airport Area'. On July 24, 2012, the City amended PC-11 to create the Residential Overlay (Overlay) to implement a Housing Element policy as part of the 41h cycle RHNA. The Overlay allows residential development consistent with the MU-H2 General Plan Land Use category that allows housing or mixed -use development for parcels located within PC-11. The Overlay requires a minimum of thirty percent (30%) of a housing or mixed -use development be restricted to lower income households. At the April 11, 2023, City Council meeting, City Council Member Erik Weigand requested that an item be placed on a future City Council agenda that reduces the inclusionary housing percentage of the Residential Overlay (Overlay) in Newport Place Planned Community from thirty percent (30%) to fifteen percent (15%). On May 9, 2023, the City Council adopted Resolution No. 2023-25 (Attachment No. PC 2), initiating the subject amendment. Amendment Description The proposed amendment would reduce the minimum inclusionary housing percentage of the Overlay, from thirty percent (30%) to fifteen percent (15%). No other changes are proposed, and no development would be directly authorized by the proposed amendment. DISCUSSION Analysis The adoption of Overlay in 2012 was necessary to secure certification of the 4th Cycle Housing Element as it was, at that time, had a greater potential to accommodate the City's The Airport Area is located near John Wayne Airport bounded by Jamboree Rd., Campus Dr., and State Route 73. 12-68 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 5 Regional Housing Needs Assessment (RHNA) for lower -income households. The Overlay includes use and development standards for residential projects and requires thirty percent (30%) of the residential units in a development to be made affordable to lower -income households for a minimum of 30 years. Because of this reason, it is the only area in the Airport Area that requires the inclusionary housing and with the highest percentage. As the City is facing with the substantial 6th Cycle RHNA obligation for the 2021-2029 Housing Element, the City must evaluate a variety of policies and regulations to identify impediments and incentives to housing production. Reducing the inclusionary percentage would reduce potential impediment and would also affirmatively further fair housing consistent with Policy Action 4A: Affirmatively Furthering Fair Housing and Housing Policy 4.1: Housing opportunities for as many renter- and owner -occupied households as possible in response to the market demand and RHNA obligation for housing in the City, provided in the certified 6th Cycle Housing Element. The proposed amendment is also supported by the February 17, 2022, Inclusiona Housing: Financial Evaluation, prepared by Keyser Marston Associates for the City of Newport Beach. The study concluded that inclusionary housing percentages higher than fifteen percent (15%) would likely be too high rendering most residential projects financially infeasible. Environmental Review The Amendment is not subject to the California Environmental Quality Act ("CEQA") under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in a physical change to the environment, directly or indirectly. Public Notice Notice of this hearing was published in the Daily Pilot and mailed to all owners of property within 300 feet of the boundaries of the Newport Place Planned Community (excluding intervening rights -of -way and waterways), 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. 12-69 Newport Place Planned Community Development Plan Amendment (PA2023-0082) Planning Commission, June 22, 2023 Page 6 Prepared by: Submitted by: os linh Ung Jim Campbell i ipal Planner Deputy Community Development Director ATTACHMENTS PC 1 Draft Planning Commission Resolution No. 2023-025 PC 2 City Council Resolution No. 2023-25 Users PLN Shared PA's PAs 2021 PA2021-0082 PC PA 202;-0082-PC-Staff Report docxOl 18l23 12-70 Attachment No. PC 1 Draft Planning Commission Resolution No. 2023-025 12-71 RESOLUTION NO. PC2023-025 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA RECOMMENDING CITY COUNCIL APPROVE AN AMENDMENT TO NEWPORT PLACE PLANNED COMMUNITY DEVELOPMENT PLAN (PC-11) TO REVISE THE MINIMUM AFFORDABILITY HOUSING PERCENTAGE OF THE RESIDENTIAL OVERLAY (PA2023-0082) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. Newport Place is a Planned Community (PC) in the Airport Area, generally bounded by MacArthur Boulevard, Jamboree Road, Birch Street and Bristol Street North, was originally designed in the early 1970's with clusters of office parks and industrial uses. The 145-acre area has evolved with light industrial uses being replaced over time with the commercial supported retail and office uses within the original design. The introduction of the Mixed Use — Horizontal 2 (MU-1-12) General Plan Land Use classification as a part of the 2006 General Plan Land Use Element, created an opportunity for residential uses. 2. On July 24, 2012, the City Council of City of Newport Beach ("City") amended the Newport Place PC (PC-11) creating the Residential Overlay (Overlay). The Overlay was necessary to secure certification of the 4th Cycle Housing Element as it was, at that time, had a greater potential to accommodate the City's Regional Housing Needs Assessment (RHNA) for lower -income households. The amendment implemented the Mixed Use — Horizontal 2 (MU-1-12) General Plan Land Use category for parcels within PC-11. The Overlay included use and development standards for residential projects, and it requires 30 percent of the residential units in a development to be made affordable to lower -income households for a minimum of 30 years. 3. On September 13, 2022, the City adopted the 6th Cycle Housing Element for the 2021- 2029 housing period, and it was certified by the State Department of Housing and Community Development ("HCD") on October 5, 2022. The Airport Area is one of the five focus areas where new housing opportunity sites are identified to satisfy the RHNA allocation of 4,845 new housing units. At least 2,577 housing units are planned for the Airport Area, which comprises approximately 25 percent of the City's planned housing capacity. In addition to the existing residential sites allowed by the 2006 General Plan Land Use Element and the PC-11's Overlay, a total of 29 new housing opportunity sites have been identified in the PC-11 per the 6t' Cycle Housing Element. 4. At the April 11, 2023, City Council meeting, City Council Member Erik Weigand requested that an item be placed on a future City Council agenda that reduced the inclusionary housing percentage for PC-11's Overlay from thirty to 15 percent. 5. On May 9, 2023, the City adopted Resolution No. 2023-25, initiating an amendment to PC- 11 related to the minimum affordability percentage of the PC-11's Overlay ("Amendment"), 12-72 Planning Commission Resolution No. PC2023-025 _ Page 2 of 4 in accordance with Section 20.56.050(E) (Development Plan Amendments) and Section 20.56.050(B) (Development Plan) of the Newport Beach Municipal Code ("NBMC"). 6. A public hearing was held on June 22, 2023, in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of the time, place, and purpose of the hearing was given in accordance with California Sections 54950 et seq. of the Government Code ("Ralph M. Brown Act") and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to and considered by the Planning Commission at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. The Amendment is not subject to the California Environmental Quality Act ("CEQA") under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in a physical change to the environment, directly or indirectly. SECTION 3. REQUIRED FINDINGS. An amendment to PC-11 is a legislative act. Neither PC-11 or Chapter 20.56 (Planning and Zoning, Planned Community District Procedures), 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 the Amendment. Notwithstanding the foregoing, the Amendment is consistent with the following City of Newport Beach W" Cycle Housing Element Policy and Policy Action: Finding and Facts in Support of Findings: Housing Policy 4.1 Housing opportunities for as many renter- and owner -occupied households as possible in response to the market demand and RHNA obligation for housing in the City. The Amendment would be a step in the implementation of the 6th Cycle Housing Element by mitigating potential governmental constraints through the reduction of affordable housing percentage from 30 to 15 percent, to facilitating construction of market -rate housing and affordable for all income groups. According to the February 17, 2022, Inclusionary Housing Financial Evaluation, prepared by Keyser Marston Associates for the City of Newport Beach, inclusionary housing percentages higher than 15 percent would likely be too high rendering most residential protects financially infeasible. Reducing the inclusionary percentage would reduce the potential impediment and would also affirmatively further fair housing consistent with Policy Action 4A: Affirmatively Furthering Fair Housing provided in the 6"' Cycle Housing Element. 01-y x.z3 12-73 Planning Commission Resolution No. PC2023-025 Pa_ge 3 of 4 SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: The Planning Commission of the City of Newport Beach hereby finds this action is covered under Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, in accordance with the recitals under Section 2 of this Resolution. 2. The Planning Commission of the City of Newport Beach hereby recommends the City Council of Newport Beach adopt Newport Place Planned Community (PC-11) Text Amendment, which is attached hereto as Exhibit "A", and incorporated herein by reference. PASSED, APPROVED, AND ADOPTED THIS 22Rd DAY OF JUNE, 2023. AYES: NOES: ABSTAIN: ABSENT: BY: Curtis Ellmore, Chair Sarah Klaustermeier, Secretary 12-74 Planning Commission Resolution No. PC2023-025 Pate 4 of 4 EXHIBIT "A" Amendment to Newport Place Planned Community (PC11) Amend Part III. Residential Overlay Zone, Section IV.A .3 to read as follows: A minimum of 39 15 percent of the units within the residential development shall be affordable to lower -income households and subject to a 30-year affordability covenant. 01-3 T-23 12-75 Attachment No. PC 2 City Council Resolution No. 2023-25 12-76 RESOLUTION NO. 2023-25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, INITIATING AN AMENDMENT TO THE NEWPORT PLACE PLANNED COMMUNITY DEVELOPMENT PLAN TO REVISE THE MINIMUM AFFORDABILITY PERCENTAGE OF THE RESIDENTIAL OVERLAY (PA2023-0082) WHEREAS, City Council Policy A-1 ("City Council") allows a member of the City Council to request that an item be placed on a future City Council agenda for consideration; WHEREAS, at the April 11, 2023, City Council meeting, City Council Member Erik Weigand requested that an item be placed on a future City Council agenda that reduced the inclusionary housing percentage for the Newport Place Planned Community Development Plan (PC-11) from thirty to fifteen percent; and WHEREAS, City Council desires to initiate an amendment to the Newport Place Planned Community Development Plan (PC-11) related to the minimum affordability percentage of the Residential Overlay in accordance to Section 20.56.050(E) (Development Plan Amendments) and Section 20.56.050(B) (Development Plan) of the Newport Beach Municipal Code. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby initiates an amendment to Newport Place Planned Community Development Plan to lower the minimum affordability percentage of the Residential Overlay. Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 3: 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. City of Newport Beach 12-77 Resolution No. 2023-25 Page 2 of 2 Section 4: The City Council finds the adoption of this resolution is exempt from environmental review under the California Environmental Quality Act ("CEQA"), pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it involves feasibility or planning studies for possible future actions which the agency, board, or commission has not approved or adopted. Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Cleric shall certify the vote adopting the resolution. ADOPTED this 9th day of May, 2023. _ ArrmuvGu 140 1 V rVl' M: CITY ATTORNEY'S OFFICE k) da— —�, Aaron C. Harp City Attorney City of Newport Beach ,,,e STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2023-25 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 9t" day of May, 2023; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Noah Blom, Council Member Brad Avery, Council Member Robyn Grant, Council Member Lauren Kleiman, Council Member Erik Weigand NAYS: None RECUSED: Mayor Pro Tern Will O'Neill, Council Member Joe Stapleton IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 1011, day of May, 2023. Leilani I Brown City Clerk Newport Beach, California City of Newport Beach ,,,,