HomeMy WebLinkAbout03 - Amendment to Newport Place Planned Community Development Plan to Revise the Minimum Affordability Housing Percentage of the Residential Overlay (PA2023-0082)Q �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
August 22, 2023
Agenda Item No. 3
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Community Development Director - 949-644-3232,
sjurjis@newportbeachca.gov
PREPARED BY: Rosalinh Ung, Principal Planner, rung@newportbeachca.gov
PHONE: 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 adoption of Ordinance No. 2023-13 to amend
the Newport Place Planned Community (PC-11) Development Plan changing the
minimum affordability housing percentage requirement of the Residential Overlay from
30 percent to 15 percent. The attached ordinance was introduced and considered at the
July 25, 2023, City Council meeting.
RECOMMENDATIONS:
a) Find the adoption of this ordinance is not 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
b) Conduct second reading and adopt Ordinance No. 2023-13, An Ordinance of the City
Council of the City of Newport Beach, California, Approving an Amendment to the
Newport Place Planned Community Development Plan to Revise the Minimum
Affordability Housing Percentage of the Residential Overlay (PA2023-0082).
DISCUSSION:
The proposed amendment to the Newport Place Planned Community (PC-11) reduces
the minimum affordability housing percentage requirement of the Residential Overlay
(Overlay) from 30 percent to 15 percent. No other changes are proposed, and no
development would be directly authorized by the proposed amendment.
On July 25, 2023, the City Council conducted a public hearing and introduced Ordinance
No. 2023-13 to amend the PC-11 Development Plan. If the attached ordinance is
adopted, it would become effective 30 calendar days after the adoption.
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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)
August 22, 2023
Page 2
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council finds the adoption of this ordinance 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. The amendment would reduce the
minimum affordability housing percentage requirement of the Overlay from 30 percent to
15 percent. The amendment in and of itself does not authorize new development that
would directly result in physical change to the environment.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Ordinance No. 2023-13
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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;
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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;
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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:
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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.
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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)
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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.
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