HomeMy WebLinkAbout05_Annual Review of Uptown Newport Development Agreement _PA2023-0186CITY OF NEWPORT BEACH
ZONING ADMINISTRATOR STAFF REPORT
February 15, 2024
Agenda Item No. 5
SUBJECT: Annual Review of Uptown Newport Development Agreement
PA2023-0186
Development Agreement No. DA2012-003
SITE LOCATION: 4311-4321 Jamboree Road
APPLICANT/OWNER: Uptown Newport, LP (TSG-Parcel 1, LLC)
PLANNER: Daniel Kopshever, Assistant Planner
949-644-3235, dkopshever@newportbeachca.gov
ZONING DISTRICT/GENERAL PLAN
General Plan: MU-H2 (Mixed-Use Horizontal)
Zoning District: PC 58 (Uptown Newport)
PROJECT SUMMARY
An annual review of Development Agreement No. DA2012-003 (DA) for Uptown Newport
Planned Community, pursuant to Section 15.45.080 (Periodic Review) of the Newport
Beach Municipal Code and Section 65865.1 of the California Government Code.
RECOMMENDATION
1)Conduct a public hearing;
2) Find the annual review is exempt from the California Environmental Quality Act
(“CEQA”) pursuant to Section 15321, Class 21 (Enforcement Actions by Regulatory
Agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Division
6, Chapter 3, because it has no potential to have a significant effect on the
environment;
3) Find that the applicant has demonstrated good faith compliance with the terms of
Development Agreement No. DA2012-003; and
4) Receive and file the Annual Report of Development Agreement for Uptown Newport
Planned Community (Attachment No. ZA 2).
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BACKGROUND
On March 12, 2013, the City Council adopted Ordinance No. 2013-6, approving the DA
for the development of a 25-acre, mixed-use residential project consisting of 1,244
residential units, two 1-acre public parks, and 11,500 square feet of retail uses. The DA
became effective on April 22, 2013. The term of the DA is 15 years, and has two 5-year
extension options. The earliest expiration could be in 2028.
On April 28, 2015, the City Council approved the First Amendment to the DA that delayed
the timing of payment of public benefit fees and park in-lieu fees.
The DA and its First Amendment are available online at:
http://www.newportbeachca.gov/developmentagreements.
On September 5, 2013, the Planning Commission approved Master Site Development
Review (MSDR) No. SD2013-002 (PA2013-129) for the Uptown Newport project. The
Planning Commission also approved prototypical architectural building elevations, master
landscape plan and plant palette, preliminary public parks and paseo plans, preliminary
master wall/fence plans, master signage plans, and preliminary site improvement plans
for the entire 25-acre planned development. The purpose of this approval is to ensure
that the project will be developed in a cohesive manner in phases consistent with the
Planned Community Development Plan, Development Agreement, environmental
mitigation measures required by the Environmental Impact Report (EIR), and applicable
City codes and standards.
On October 1, 2013, the Parks, Beaches & Recreation Commission reviewed and
approved park amenities on the two public park concepts for the Uptown Newport project.
On January 24, 2016, the Community Development Director approved Minor Site
Development Review No. SD2015-004 (PA2015-141) for the construction of 455
residential apartment units in two separate buildings, approximately 10,700 square feet
of retail use, and a 50-foot-wide paseo within Phase 1 proposed by the Picerne Group.
The South Building was approved to provide 222 apartment units with approximately
10,700 square feet of commercial space on the ground floor. The North Building was
approved to provide 233 units. A 50-foot-wide paseo will be developed on an easement
area between the two buildings, and it will provide public access from Jamboree Road
through to the internal street. These two buildings include 92 units for very-low income
households.
On September 2, 2016, the Community Development Director approved Staff Approval
No. SA2016-010 (PA2016-125), an amendment to Condition of Approval No. 34 of
Uptown Newport Tentative Tract Map No. NT2012-002 (TTM No. 17763), to delay
completion of the public sidewalk reconstruction along the Jamboree Road frontage of
the Uptown Newport Planned Community until occupancy of the Picerne Group’s first
residential building or July 31, 2018, whichever comes first.
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On January 24, 2017, the City Council approved the issuance of up to $192,000,000 of
multi-family housing bonds by the California Statewide Communities Development
Authority (CSCDA) to finance the project. The City does not incur any liability for the
CSCDA financing.
On March 23, 2017, the Planning Commission approved Major Site Development Review
No. SD2017-001 (PA2017-031), an amendment to the previously approved Master Site
Development Review application, to allow alternative locations and phasing of the
commercial component (up to 11,500 square feet). Specifically, the amendment allows
Lot 3 (the Picerne Group’s South Building) to be developed without commercial uses
while Lot 2, located at the intersection of Jamboree Road and Fairchild Road, to be
developed with commercial uses rather than residential uses. The preliminary plans
proposed an approximately 6,500 square feet of retail use on Lot 2. Additional commercial
uses will be developed on other lots within the Uptown Newport Planned Community.
On March 24, 2017, the Community Development Director approved Minor Site
Development Review No. SD2017-002 (PA2017-040), amending Minor Site
Development Review No. SD2015-004, to eliminate the 10,700-square-foot commercial
component and associated parking from the South Building. The area formerly planned
for commercial use was permitted to be developed with seven additional residential units
for a total of 229 units within the South Building. With the approval of the proposed
amendment, a total of 462 apartment units would be developed, inclusive of the 92 low-
income units.
On April 11, 2017, the City Council approved park in-lieu fee credits consistent with the
General Plan and Municipal Code. The park in-lieu fee payment for Phase 1 was set in
the amount of $2,895,686.54.
On July 13, 2018, the Community Development Director approved Minor Site
Development Review No. SD2018-002 (PA2018-107) for the construction of Phase 1’s 1-
acre neighborhood park. The park’s construction began late December 2018 and is nearly
complete.
At the last annual review on October 27, 2022, the Zoning Administrator found that
Uptown Newport demonstrated good faith compliance with the terms of the DA and its
First Amendment.
DISCUSSION
Section 15.45.080 of the Municipal Code requires the City to periodically review
development agreements to determine if the applicant has complied with the terms of the
agreement. This review should be conducted at least once every 12 months.
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The applicant is required to demonstrate good faith compliance with the terms of the
agreement, and should the Zoning Administrator find that the applicant has not complied
in good faith with the terms of the agreement; the Zoning Administrator should refer the
matter to City Council.
Annual Review
The annual review covers the period of October 2022 to January 2024.
A summary of construction-related activities within Phase 1 performed by the property
owner, its agents and affiliates during the past year are listed below:
1. 66 KV undergrounding: Tower Jazz will be undertaking some power downs at their
facility, which will allow the 66KV shutdown to begin in the 3rd quarter 2024. It is estimated
by SCE that a 24 to 48 hour shutdown is necessary to complete the new connections
from overhead to underground. Upon the power line transfer, SCE will return to remove
the above ground poles. The anticipated completion time for the undergrounding is by the
end of 2024.
3. Parkhouse Residences, LLC, obtained all plan approvals and building permits for
the construction of five condominium buildings on the east half of lot 1 in September 2021.
Construction commenced September 2021 and all five buildings have been framed.
Project build-out is anticipated to be completed 2nd quarter of 2024.
4. The Uptown Newport Master HOA is anticipated to be formed and operational by
June 2024. All maintenance and management will be turned over to the Uptown Newport
Master HOA in mid to late 2024. A management company has been retained to assist
the HOA and its Board.
5. One Uptown Affordable Leasing Plan: 98% of the 46 affordable apartments in the
South building of One Uptown Newport were occupied at the end of December 2022 with
1 affordable apartment available. 96% of the 46 affordable apartments in the North
building of One Uptown Newport were occupied at the end of December 2022 with 2
affordable apartments available. All available units were actively being qualified for future
move ins. American Housing Consultants, LLC, remains engaged for the purpose of
qualifying and screening all prospective tenants and ensuring compliance with the
prescribed income and rent requirements for these units.
ENVIRONMENTAL REVIEW
This annual review is exempt from the California Environmental Quality Act (“CEQA”)
pursuant to Section 15321, Class 21 (Enforcement Actions by Regulatory Agencies) of
the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential to have a significant effect on the environment. This section
exempts actions by regulatory agencies to enforce or revoke a lease, permit, license,
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certificate, or other entitlement for use issued, adopted, or prescribed by the regulatory
agency or enforcement of a law, general rule, standard, or objective, administered or
adopted by the regulatory agency.
PUBLIC NOTICE
Notice of this review was published in the Daily Pilot, mailed to all owners of property
within 300 feet of the boundaries of the site (excluding intervening rights-of-way and
waterways), including the applicant, and posted on the subject property at least 10 days
before the scheduled hearing, consistent with the provisions of the Municipal Code.
Additionally, the item appeared on the agenda for this meeting, which was posted at City
Hall and on the City website.
APPEAL PERIOD:
An appeal or call for review may be filed with the Director of Community Development within
14 days following the date of action. For additional information on filing an appeal, contact
the Planning Division at 949-644-3200.
Prepared by:
RU/cc
Attachments: ZA 1 Vicinity Map
ZA 2 Uptown Newport Development Agreement Annual Report
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Attachment No. ZA 1
Vicinity Map
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VICINITY MAP
Annual Review of Uptown Newport Development
Agreement No. DA2012-003 (PA2023-0186)
4311-4321 Jamboree Road
Subject Property
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Attachment No. ZA 2
Uptown Newport Development
Agreement Annual Report
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June 28, 2023,
Ms. Chelsea Crager
City of Newport Beach
Planning Department
100 Civic Center Drive
Newport Beach, California 92660
RE: 2022 Annual Report for Uptown Newport
Development Agreement No. DA2012-003
Dear Ms. Crager,
This Annual Report for the Uptown Newport Development Agreement DA2012-003 (the
“Agreement”) is being provided to the City pursuant to Section 7 of the Agreement, and is
intended to satisfy the annual reporting requirement for Development Agreements under
section 65865.1 of the Government Code. Uptown Newport is a mixed-use development
consisting of: 1,244 residential units, 11,500 square feet of retail uses, and two 1-acre public
parks on approximately 25.05 acres of real property located at 4311-4321 Jamboree Road,
Newport Beach, California.
On March 23, 2013 (the “Agreement Date”), the City Council adopted Ordinance No. 2013-6
(the “Adopting Ordinance”), finding the Agreement to be consistent with the City of Newport
Beach General Plan, and approving the Agreement. Because the Agreement was approved by
Ordinance as required under Government Code section 65867.5, and no appeals, referenda or
lawsuits challenging the validity of the Adopting Ordinance were filed, the Agreement became
effective 30 days after the Agreement Date, or April 22, 2013.
The Uptown Newport project is continuing with development of Phase I of the Uptown Newport
Planned Community, with site development for Phase I completed. The development plan for
Phase I at Uptown Newport consists of the following milestone completions:
1. Grading / infrastructure permit issuance in November 2015
2. One Uptown Apartments building permit issue in April 2017
3. Phase I, 66KV undergrounding completed in December 2018
4. C of O issued in December 2019 -South apartment building
5. Uptown Newport Park completed in June 2019
6. Phase I infrastructure substantially complete in August 2019
7. C of O Issued in February 2020 – North apartment building
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8. DRC Site plan submittal lot 1 east, 30-unit condominium project, in April 2020
9. DRC Site plan submittal lot 1 west condominium project in June 2020
10. Lot 1 east condo site plan approval in October 2020
11. Sale of lot 1 west in December 2020
12. Ammonia tank relocation completed in June 2020
13. Lot 1 east building permit issuance in September 2021
14. Lot 1 West (60 condo unit project) received city approval from the Community
Development Director for Minor Site Development Plan, July 2022
15. Phase II TTM submittal in April, 2022 to revise street and lot design to
accommodate potential users. Will require approvals from Regional Water
Quality Control Board before proceeding with City entitlements.
Recent accomplishment at Uptown Newport during the 2022 calendar year:
1. 66 KV undergrounding: Due to some local effects of a power shutdown on adjacent
properties, we have been working with the city staff and SCE to find alternate solutions
to avoid or minimize power interruptions to Tower Jazz semiconductors. Anticipated
completion in January 2024 to complete the undergrounding.
2. City staff and TSG-Parcel 1 have come to terms regarding the park maintenance
agreement which is to be maintained by the Uptown Newport Master HOA. Signed
agreement will be sent to the city beginning 3rd quarter 2023.
3. Parkhouse Residences, LLC, obtained all plan approvals and building permits for the
construction of five condominium buildings on the east half of lot 1 in September 2021.
Construction commenced September 2021 and all five buildings have been framed.
Project build-out is anticipated to be completed 2nd quarter of 2024.
4. The Uptown Newport Master HOA is anticipated to be formed and operational by end
of the year 2023. All maintenance and management will be turned over to the Uptown
Newport Master HOA mid-2024. A management company has been retained to assist
the HOA and its Board.
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5.One Uptown Affordable Leasing Plan: 98% of the 46 affordable apartments in the
South building of One Uptown Newport were occupied at the end of December 2022
with 1 affordable apartment available. 96% of the 46 affordable apartments in the
North building of One Uptown Newport were occupied at the end of December 2022
with 2 affordable apartments available. All available units were actively being qualified
for future move ins. American Housing Consultants, LLC, remains engaged for the
purpose of qualifying and screening all prospective tenants and ensuring compliance
with the prescribed income and rent requirements for these units.
TSG-Parcel 1, LLC, as the Assignee of Uptown Newport, LP, and has complied in good faith with
the terms and conditions of the Agreement.
We look forward to continuing our development efforts for Uptown Newport, and appreciate
the City’s cooperation in our efforts. Please contact me at (949) 417-1867 or at
brupp@shopoff.com. Should you have any questions or require additional information.
Sincerely,
Brian Rupp
Executive Vice President – Development
Cc: Gregory Powers, Jackson Tidus
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