HomeMy WebLinkAboutPA2023-0138_20230803_CDD_Action LetterCommunity Development Department
CITY OF NEWPORT BEACH
100 Civic Center Drive
Newport Beach, California 92660
949 644-3200
newportbeachca.gov/communitydevelopment
VIA EMAIL
August 3, 2023
Sean Matsler
Cox, Castle, & Nicholson LLP
3121 Michaelson Drive, Suite 200
Irvine CA 92612
Subject: Staff Approval
(PA2023-0138)
1107 Jamboree Road
The Champions Club
Dear Mr. Matsler,
It was a pleasure working with you on the above referenced application. Please be
advised that the subject application was approved by the Community Development
Director on August 3, 2023 and effective on August 17, 2023. A copy of the
approved action letter with findings and conditions is attached. If you have any
questions, please do not hesitate to contact me directly. Thank you and I look forward
to working with you again in the future.
Sincerely,
David Lee, Senior Planner
JM/dl
cc:
Sean Bolletteieri
1602 East Coast Highway
Newport Beach CA 92660
COMMUNITY DEVELOPMENT DEPARTMENT
PLANNING DIVISION
100 Civic Center Drive, P.O. Box 1768, Newport Beach, CA 92658-8915
949-644-3200
www.newportbeachca.gov
COMMUNITY DEVELOPMENT DIRECTOR ACTION LETTER
Subject: The Champions Club (PA2023-0138)
▪ Staff Approval
Site Location 1107 Jamboree Road
Applicant Champion Management Group, Inc.
Legal Description Parcel 2 of Resubdivision No. 413
On August 3, 2023, the Community Development Director approved a staff approval
authorizing a new operator, Champion Management Group Inc. (“Applicant”), to operate six
existing tennis courts located on Parcel 2 of Resubdivision No. 413 (“Property”) under the
name “The Champions Club”. These six (6) courts were previously a part of the Palisades
Tennis Club, which will continue to separately operate the ten (10) existing tennis courts and
clubhouse located on Parcel 1 of Resubdivision No. 413. The Community Development
Director finds that the change in operator for the six (6) courts on Parcel 2 to be in substantial
conformance with the previously approved Use Permit No. UP1697.
LAND USE AND ZONING
• General Plan Land Use Plan Category: PR (Parks and Recreation)
• Zoning District: PR (Parks and Recreation)
• Coastal Land Use Category: PR (Parks and Recreation)
• Coastal Zoning District: PR (Parks and Recreation)
BACKGROUND
On October 4, 1973, Use Permit No. UP1697 was approved by the Planning Commission,
authorizing the construction of a private tennis club with lighted tennis courts, known as the
John Wayne Tennis Club at the time. At the time of the approval, both Parcel 1 and Parcel
2 were owned by The Irvine Company. A vicinity map (Attachment No. CD 1) and the parcel
map for Resubdivision No. 413 (Attachment No. CD 2) has been to demonstrate the layout
of the parcels.
The approval included a total of 16 tennis courts (15 regular courts and one (1) tennis ball
machine court), an approximately 8,100-square-foot, two (2)-level tennis clubhouse
consisting of restrooms and locker rooms, lounges, offices, and snack and apparel shops.
Additionally, 78 parking spaces were provided in an on-site surface parking lot located on
Parcel 2, which accommodated the clubhouse and all tennis courts. Parcel 1 does not
include parking. Since both parcels were solely operated by the John Wayne Tennis Club,
The Champions Club (PA2023-0138)
August 4, 2023
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the parking was intended to be provided for all 16 courts. UP1697 limited the hours of
operation for the club to the hours of 7 a.m. to midnight, daily. All conditions of approval are
included in Attachment No. CD 3.
Subsequent to the approval of UP1697, the John Wayne Tennis Club began operations in
1974. In 1995, the change of ownership led to the change of name to the Palisades Tennis
Club. Parcel 1 and Parcel 2 have become separately owned, with Parcel 2 being owned in
common with the Hyatt Regency Hotel.
PROPOSED CHANGES
The Applicant is proposing to operate the six (6) existing tennis courts on Parcel 2 for tennis
play and instruction, under the name “The Champions Club.” The operation is separate from
the Palisades Tennis Club, which will remain in operation on Parcel 1 with ten (10) existing
courts. The Applicant is proposing hours of operation between 8 a.m. to 8:30 p.m., daily.
Pickleball of any form is strictly prohibited at the club unless an amendment is filed for a new
use permit (Condition of Approval No. 6).
Since the on-site parking lot is located on Parcel 2, the property owner has provided
confirmation that parking will continue to be provided to members of the Palisades Tennis
Club (Attachment No. CD 5). This has been included as Condition of Approval No. 3 as a
part of this Staff Approval.
As previously stated, Parcel 2 is owned in common with the Hyatt Regency Hotel. Therefore,
the Champions Club will have affiliation with the hotel. In addition to the on-site parking lot,
the club will have the exclusive use of 43 parking spaces located on the adjacent hotel
parking lot, as well as access to overflow parking spaces for special events on an as-needed
basis. Hotel members will have fee-based access to the club facilities. Members of the club
will have access to the hotel’s restroom facilities. Since the clubhouse and restrooms are
located within the Palisade’s property, members of the Champions Club will not have access
to Palisade’s facilities.
No physical improvements are proposed for the Applicant’s request to continue tennis
operations. Any future changes or improvements to the club will require further review by
City staff and may require additional entitlements and/or building permits.
FINDINGS
Pursuant to Section 20.54.070 (Changes to an Approved Project) of the Newport Beach
Municipal Code (NBMC), the Community Development Director may authorize minor
changes to an approved site plan, architecture, or the nature of the approved use without
a public hearing, and waive the requirement for a new use permit application. In this case,
the Community Development Director has determined that the new club operator is in
substantial conformance with UP1697 because the project’s changes:
The Champions Club (PA2023-0138)
August 4, 2023
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Finding:
A. Are consistent with all applicable provisions of this Zoning Code.
Facts in Support of Finding:
1. The Property is located in the Parks and Recreation (PR) Zoning District, which is
intended to provide for areas appropriate for land used or proposed for active public
or private recreational use. A tennis club is a listed example of an allowed use within
the PR Zoning District. The six (6) existing tennis courts on Parcel 2 are part of the
tennis club originally authorized by UP1697.
2. A new operator on Parcel 2 does not conflict with the allowances of UP1697, as the
courts will continue to be used for tennis play and instruction. As conditioned, no
pickleball is permitted on any courts as a part of the new operation. Adequate and
available parking for both the Project and Palisades is also included as a condition
of approval.
Finding:
B. Do not involve a feature of the project that was a basis for or subject of findings or
exemptions in a negative declaration or Environmental Impact Report for the
project.
Fact in Support of Finding:
1. UP1697 included an Environmental Impact Report which discussed the construction
of the tennis club, clubhouse, associated parking, etc. and its potential impact on
human resources, geologic hazards, flooding, ground water, noise, air resources,
vegetation and animal life, traffic, and public recreational facilities. The report
concludes that the tennis club does not have a significant effect on the environment.
2. There are no physical changes proposed. The Applicant is proposing to operate
the six (6) existing courts on Parcel 2, separately from the existing Palisades
Tennis Club on Parcel 1. Since there is no change in use of the tennis courts, there
are no features of the project that can potentially affect the environment,
Finding:
C. Do not involve a feature of the project that was specifically addressed or was the
subject of a condition(s) of approval for the project or that was a specific
consideration by the applicable review authority in the project approval.
Facts in Support of Finding:
1. The proposed change of operator on Parcel 2 does not involve a feature that was
specifically conditioned or addressed by UP1697. The Champions Club is
The Champions Club (PA2023-0138)
August 4, 2023
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proposing to operate within the conditioned hours of operation (7 a.m. to midnight,
daily).
2. There are no physical changes proposed. Any future changes are subject to
building permits and a potential amendment to UP1697.
3. Additional conditions of approval for the club have been included as a part of this
Staff Approval to provide zoning clearance for the new use.
Finding:
D. Do not result in an expansion or change in operational characteristics of the use.
Facts in Support of Finding:
1. Fact A.2 is hereby incorporated as reference.
2. Fact C.2 is hereby incorporated as reference.
CONDITIONS
1. The development shall be in substantial conformance with the approved site plan
and floor plan stamped and dated with the date of this approval (except as modified
by applicable conditions of approval).
2. All applicable conditions of approval for Use Permit No. UP1697 shall remain in
effect.
3. Adequate parking for the Palisades Tennis Club of Parcel 1 shall be provided on the
Hyatt Regency Hotel property.
4. Any special events for the Tennis Club on Parcel 2 shall be coordinated with the
Hyatt Regency Hotel to avoid potential issues with parking.
5. Members of the Tennis Club on Parcel 2 shall have access to restroom facilities at
the Hyatt Regency Hotel.
6. There shall be no pickleball activities of any kind within the Tennis Club on Parcel 2.
7. The Community Development Director may add to or modify conditions to this staff
approval, or revoke this staff approval upon determination that the operations, which
is the subject of this staff approval, causes injury, or is detrimental to the public health,
safety, peace, or general welfare of the community or if the property is operated or
maintained so as to constitute a public nuisance.
8. To the fullest extent permitted by law, Applicant shall indemnify, defend and hold
harmless City, its City Council, its boards and commissions, officials, officers,
The Champions Club (PA2023-0138)
August 4, 2023
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employees, and agents from and against any and all claims, demands, obligations,
damages, actions, causes of action, suits, losses, judgments, fines, penalties,
liabilities, costs and expenses (including without limitation, attorney’s fees,
disbursements and court costs) of every kind and nature whatsoever which may
arise from or in any manner relate (directly or indirectly) to City’s approval of the
The Champions Club including, but not limited to, a staff approval under PA2023-
0138. This indemnification shall include, but not be limited to, damages awarded
against the City, if any, costs of suit, attorney’s fees, and other expenses incurred
in connection with such claim, action, causes of action, suit or proceeding whether
incurred by Applicant, City, and/or the parties initiating or bringing such
proceeding. The Applicant shall indemnify the City for all of City's costs, attorneys'
fees, and damages which City incurs in enforcing the indemnification provisions
set forth in this condition. The Applicant shall pay to the City upon demand any
amount owed to the City pursuant to the indemnification requirements prescribed
in this condition.
APPEAL PERIOD: An appeal or call for review may be filed with the Director of Community
Development or City Clerk, as applicable, within fourteen (14) days following the date the
action or decision was rendered. For additional information on filing an appeal, contact the
Planning Division at 949-644-3200.
Prepared by:
____________________
David S. Lee
Senior Planner
Approved by:
Assistant City Manager
JM/dl
Attachments:
CD 1 Vicinity Map
CD 2 Parcel Map for Subdivision No. 413
CD 3 Use Permit No. UP1697
CD 4 Applicant’s Project Description
CD 5 Correspondence from Property Owner Regarding Parking
CD 6 Project Plans
Attachment No. CD 1
Vicinity Map
Tmplt: 07/25/19
VICINITY MAP
Staff Approval
PA2023-0138
1107 Jamboree Road
Subject Property
(Parcel 2)
Palisades Tennis
Club (Parcel 1)
(Parcel 2)
Hyatt Regency Hotel
Attachment No. CD 2
Parcel Map for Subdivision No. 413
Attachment No. CD 3
Use Permit No. UP1697
Attachment No. CD 4
Applicant’s Project Description
Project Description: Continued Tennis Play & Instruction
1107 Jamboree Rd (APN: 440-132-40)
Pursuant to a ground lease with WRC Newport LLC, effective July 27, 2023, Champion Management
Group, Inc. (“Applicant”) will assume control of the six tennis courts and approximately 14 parking
spaces located at 1107 Jamboree Rd (APN: 440-132-40), shaded in red on the aerial photograph below
(“Project Site”). In addition to the 14 parking spaces located on the Project Site, the ground lease
includes 43 dedicated parking spaces located in the adjacent Hyatt parking lot, as shown on attached
Exhibit A, as well as access to overflow parking spaces as needed (e.g., for special events) located in the
Hyatt surface parking lot at the northwest corner of Jamboree Road and Back Bay Drive.
The Project Site, together with the property to the north (APN: 440-132-48), previously operated as a
single tennis club under Use Permit No. 1697. That club was originally known as The John Wayne Tennis
Club and is currently known as the Palisades Tennis Club (“Palisades”). The Applicant proposes to
continue the existing tennis operations on the six tennis courts comprising the Project Site, as follows:
• Use Permit No. 1697 – Applicant’s continued tennis use of the Project Site is subject to, and will
comply with, Use Permit No. 1697 and its conditions.
• Parking – The Applicant will have the exclusive use of 57 parking spaces combined between the
Project Site and the Hyatt surface parking lot located south of, and adjacent to, the Project site.
In addition, the Applicant has access to overflow parking spaces as needed (e.g., for special
events) located in the Hyatt surface parking lot at the northwest corner of Jamboree Road and
Back Bay Drive.
• Palisades Tennis Club Parking – The Palisades property includes no parking spaces. Palisades
has historically relied on the Hyatt for parking through a lease agreement. The existing parking
lease agreement between Palisades and Hyatt has expired. We understand that Palisades and
Hyatt are currently negotiating a new parking agreement that would provide adequate parking
spaces for Palisades’ remaining 9 full size tennis courts and 1 modified ball machine court.
However, this new agreement is not yet finalized.
• Hours of Operation – Tennis instruction and play will occur between 8:00 am and 8:30 pm,
daily. Use Permit No. 1697 allows for operation between 7:00 am and 12:00 am, daily.
• Special Events – Any special events (e.g., tournaments) are subject to, and will secure, a Special
Event Permit from the City.
• Affiliation with the Hyatt Hotel – Tennis players will have access to the Hyatt’s restroom
facilities and Hyatt guests will have fee-based access to the Applicant’s tennis courts.
• Affiliation with the Palisades Tennis Club - The Applicant and Palisades have no formal
affiliation.
• Physical Improvements – No physical improvements are proposed in connection with the
Applicant’s continued tennis operations on the Project Site.
Attachment No. CD 5
Correspondence from Property Owner Regarding Parking
From: Murillo, Jaime
Sent: August 01, 2023 7:55 AM
To: Lee, David
Subject: FW: Hyatt Regency Newport Beach - Tennis Court Sublease
From: Gary Stougaard <gstougaard@chelseahp.com>
Sent: August 01, 2023 2:14 AM
To: Murillo, Jaime <JMurillo@newportbeachca.gov>
Cc: Matsler, Sean <SMatsler@coxcastle.com>
Subject: Hyatt Regency Newport Beach - Tennis Court Sublease
[EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content
is safe.
Mr. Murillo –
My name is Gary Stougaard and I am the Owners Representative for WCP Newport LLC, the owner of
the Hyatt Regency Newport Beach Hotel.
As you are aware, we are currently finalizing a sublease agreement with Champion Management Group
(“CMG”) for the use of the six tennis courts located on the land which WCP Newport LLC leases from
JGKallins Investments Newport, LLC.
CMG plans to covert these courts for future Pickleball use, but have applied to the City of Newport
Beach for an interim use agreement for their continued use as tennis courts.
While we finalize the terms of this agreement and related parking facilities with CMG, the purpose of
this correspondence is to confirm that we will also provide interim access to on-site parking to Palisades
Tennis Club members while negotiations proceed on a new parking lease with the Palisades Tennis Club.
Please contact me directly if you have any questions or I can provide any additional information relative
to our agreement with CMG and the status of our negotiations with Palisades for future parking for Club
members.
I can be reached anytime at (619) 709-4461.
Thank you,
Gary Stougaard
Authorized Representative WRC Newport LLC.
Gary A. Stougaard
Attachment No. CD 6
Project Plans
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