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HomeMy WebLinkAboutGP UPDATE DISCUSSION PAPERS111111111 lill 11111111 *NEW FILE* GP UPDATE DISCUSSION PAPERS Beach General Plan FORMULATION Revised for GPAC REVIEW • June 7, 2004 EIP Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. The first step will be the identification of possible land use alternatives for the 12 subareas that have been selected by the General Plan Update Committee (GPUC). Following identification, the consultant team will evaluate the comparative traffic, fiscal, and environmental impacts of these options. These Geographic Subarea Discussion Papers are intended to serve as a framework for the GPAC's discussion in defining the land use alternatives for each of the following geographic subareas within Newport Beach: Banning Ranch, Airport Business Area, Lido Marina Village/Civic Center, Balboa Village, Cannery Village/McFadden Square, Corona del Mar, West Newport Coast Highway Corridor, West Newport Residential, Mariner's Mile, West Newport Industrial, Newport Center/Fashion Island, and Old Newport Boulevard. It is understood that these encompass areas in which change is likely and/or policy intervention is necessary. Other areas of the City will be addressed by "global" policies that will be subsequently defined during the planning process. These papers present an overview of existing conditions, as well as a summary of key planning issues/findings affecting each subarea's land uses, as identified through the Visioning Process and the analyses in the Technical Background Report, and raised by City staff. Guiding Principles that pertain to or affect land use development of the subarea are also provided. Lastly, initial land use options for each subarea are identified for GPAC to consider, and to stimulate their identification of additional land use alternatives. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Preferred Land Use Plan will be selected in October. Description of Banning Ranch Located within the City's Sphere of Influence (SOI), the Banning Ranch area encompasses approximately 518 acres, of which 465 acres (includes 47 acres of water features) are under the jurisdiction of Orange County, and 53 acres are within the jurisdiction of the City of Newport Beach. As shown in Figure 1, Banning Ranch is located in the western -most portion of the Newport Beach Planning Area, north of Coast Highway and the Newport Shores residential 1 community, just east of the Santa Ana River, and west and south of residential and industrial uses. The eastern portion of the site is higher in elevation and contains the western edge of Newport Mesa that slopes gently from east to west. Bluffs form the western edge of the mesa, and are located in the central portion of the Banning Ranch area. The western portion of the site, which is lower in elevation, historically contained a tidal marsh associated with the Semeniuk Slough. The site is located within the coastal zone boundary and is subject to the provisions of the Orange County Local Coastal Program (LCP). However, the site is referred to a "white hole" since the County's LCP does not provide land use designations for the Banning Ranch area. Currently, the Banning Ranch area is primarily undeveloped with some historic oil extraction infrastructure located in the central and southern portions of the site that includes wells, pipelines, buildings, improved and unimproved roads, and open storage pipes and machinery. There are 65 active oil wells and four active injection wells located throughout the Banning Ranch area. Oil extraction activities date back at least 75 years. Although the Banning Ranch site contains an assemblage of diverse habitats that have been historically disturbed, when this area is considered with the contiguous Semeniuk Slough, it provides wildlife with a significantly large, diverse area for foraging, shelter, and movement. Biological studies performed for Banning Ranch indicate that, while disturbance associated with oil activities diminishes the quality of existing habitat to some extent, overall, the area should be regarded as relatively high -quality wildlife habitat due to its size, habitat diversity, and continuity with the adjacent Semeniuk Slough. Banning Ranch contains areas with a habitat value rank of 1 (approximately 69 acres), which are primarily concentrated in the northwestern portion of the site, as shown in Figure 2. These areas are considered to have a high biological resource value, and would require a resource permit from federal and/or State agencies prior to development. In addition, other areas within the site, which are scattered throughout Banning Ranch, may also be of biological value but to a lesser extent. Areas with a rank of 2 (approximately 96 acres) may need a resource permit for development, where additional studies would be required to make this determination. More than likely, areas with a rank of 3 (approximately 118 acres) would not require resource permitting for development. Resource permitting would likely result in the need for mitigation measures associated with development e.g., payment of mitigation fees, habitat restoration, or off -site habitat replacement. Bank Acres 1 69 2 96 3 118 Total 283 Banning Ranch Issues The following issues/findings were identified for the Banning Ranch area in the Visioning Process, findings of the Technical Background Report (TBR), and by input from City staff. 7 VISIONING PROCESS 1. Residents are divided in opinion regarding the future of Banning Ranch. Some residents want to preserve Banning Ranch as an open space opportunity, while others want to develop it for needed housing. 2. Visioning participants indicated the desire to protect and preserve the bluffs located within Banning Ranch. Some support was expressed for restricting the height and size of homes, establishing large setbacks to protect bluffs. 3. Protection of public view corridors has been stated as a priority by Visioning participants. 4. Visioning participants have expressed a desire for the City to preserve the Banning Ranch area as public open space, even though this option may require a local tax increase. TECHNICAL BACKGROUND REPORT 1. Banning Ranch is currently designated as open space under the Land Use Element of Orange County's General Plan. 2. Under the Orange County Zoning Code, the majority of the site is designated for Multi - Family Residential/Oil Production overlay. A strip of land in the northern boundary is designated as Light Industrial/Oil Production overlay, and a strip in the southern boundary adjacent to Coast Highway is designated as Local Business/Oil Production overlay. 3. Newport Beach has designated the site primarily for single-family attached residential uses, with some multi -family residential, recreational and environmental open space, and mixed commercial consisting of administrative, professional, financial commercial, and industrial uses under the General Plan Land Use Element. 4. The Newport Beach Zoning Code designates the site as Planned Community (PC), and the land uses and densities of this designation are consistent with the General Plan Land Use Element. 5. Southern California Association of Governments' (SLAG) has projected a housing need for the City of 1,421 new households of varying income levels for 2000-2005. Some of these units could be accommodated onsite. 6. The Newport Beach Housing Element identifies approximately 45 acres of the Banning Ranch area, located within the City's boundaries, able to accommodate 406 multi -family residential units. 7. There are opportunities for acquisition of park sites; active parks are a particular need on the west side of the city. 8. There are several environmentally sensitive areas that may merit preservation, and provide opportunities for passive recreational uses such as nature observation and hiking. 3 9. Several arroyos within the site carry stormwater runoff from the surrounding areas (i.e., 135 acres of Costa Mesa), and flow capacity will need to be preserved. 10. The Banning Ranch area contains significant visual resources such as bluffs, which contribute a unique visual backdrop to the area as well provide views overlooking a large portion of the site. While the Draft Local Coastal Program has established design guidelines and setback standards to protect views of resources, these are not applicable to Banning Ranch unless this area is annexed into the City. 11. Future development of the Banning Ranch area could require remediation and clean up of lands previously utilized for oil extraction, as well as be impacted by existing oil operations. 12. Portions of the site have the potential to be subject to 100-year floods, reservoir inundation, tsunami inundation, and liquefaction. An active fault line also runs through the site. Enhancement of biological habitat can occur at these specific locations. CITYSTAFF 1. Although the City of Newport Beach does not have complete jurisdiction over Banning Ranch as the majority of the site is under County jurisdiction, the City does control three regional roadway connections, and a one -foot strip around the entire property. Guiding Principles The following guiding principles from the Economic Development, Community Character, Environmental Conservation, Affordable Housing, and Mobility Discussion Papers are pertinent to land use development within the Banning Ranch area. ECONOMIC DEVELOPMENT 1. General Plan policies will maintain the City's positive fiscal balance. 4. The General Plan should encourage mixed -use development. 8. Additional development entitlement needs to demonstrate significant fiscal, economic or other community benefit. 11. The General Plan shall support the careful expansion of visitor -serving businesses and facilities, including hotels and meeting facilities. COMMUNITY CHARACTER 1. Protect and enhance the natural setting that contributes to the character and identity of Newport Beach and the sense of place it provides for its residents and visitors. 3. Future development shall consider the scale, urban form, design, character and quality of the community. 4 4. Balance developed lands with adequate open space and recreation areas and preserve opportunities for maintaining healthy lifestyles in Newport Beach. 6. Establish a high quality entry to Newport Beach from the west. [This Guiding Principle is for GPAC discussion, and is unique to the Banning Ranch area.] WORKFORCE AND SPECIAL NEEDS HOUSING 1. Promote a balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments including very low, low, moderate, and upper income households. 3. Consider mixed -use development as a means to create additional housing opportunities. MOBILITY 1. Establish General Plan land uses and density/intensity limits that will have less impact on peak hour traffic. 3. Regional traffic will be included in the analysis of land use alternatives, but such traffic should not be the sole reason for rejecting a land use alternative that would have net benefits to Newport Beach. ENVIRONMENTAL CONSERVATION 1. Protect, and rehabilitate or enhance, terrestrial and marine habitats located within the City through careful siting of future development. 3. Minimize air quality degradation through land use practices and circulation improvements that reduce reliance on the automobile. 4. Encourage the maintenance of natural landforms. 5. Encourage the protection and creation of public viewsheds within the City. Potential Land Use Alternatives for Discussion PRIOR DEVELOPMENT,PROPOSALS For the Banning Ranch site, there are several development options that have been previously proposed as discussed below. Proposed land uses of these alternatives are shown in Table 1-1, below. 1. Orange County General Plan Under the Orange County General Plan Land Use Element, the Banning Ranch site is designated as open space. Mineral extraction sites are considered consistent with this designation, as are passive recreation uses. As such, under this development option, the site could continue to be used for resource recovery, specifically for oil extraction. This development option would be consistent with the Environmental Conservation Guiding Principles (ECGP) by protecting biological resources, maintaining natural landforms, and protecting public viewsheds. With no new development under this County General Plan, traffic congestion would be minimized, consistent with the Mobility Guiding Principles (MGP). Preservation of existing habitats and protection of open space would be in support of Community Character (CCGP), although it is unlikely that any habitat restoration or enhancement would occur. 2. Existine City of Newport Beach General Plan The existing Newport Beach General Plan (adopted in 1988 and amended in January 2000) allows for the development of approximately 2,600 dwelling units, 235,600 square feet (sf) of office space, 164,400 sf of industrial uses, 50,000 sf of neighborhood commercial uses, and 21 acres of parkland on the Banning Ranch site. The City's General Plan proposes various densities for residential uses, with a mix of residential types, ranging from apartments to single-family homes. Development of a mix of uses with open space under this land use alternative would be consistent with identified Economic Development Guiding Principles (EDGP) and CCGP, as described above. With implementation of differing types of residential uses on site, this alternative would help meet the City's housing need and present an opportunity to provide workforce and special needs housing. The preservation of areas containing highly valued biological resources will be consistent with the guiding principles of preserving these resources. These preserved areas can also offer an opportunity for passive recreational use. Providing additional parkland will also help meet Newport Beach's need for more active recreational space, especially in the western portion of the City. The ECGP of maintaining natural landforms and protecting public viewsheds, as well as CCGP of maintaining the natural setting of the surrounding community, would need to be taken into consideration when determining types and scale of development on the bluffs. 3. West Newport Oil Company The West Newport Oil Company proposed a project similar to what is allowed under the City's General Plan but excluded office and commercial uses. Under this alternative the same number of residential units would be developed, more open space would be available, and a park and school were included. With less development overall, more habitat preservation would result, which would be in support of ECGP 1, as stated above. Without office or commercial uses onsite, automobile trips to access these uses would be increased. At the same time, there would be a decrease in the cumulative vehicle trips generated by the site's uses, which supports the MGP of having less impact on peak hour traffic. Preservation of much of the natural setting along with dedication of open space areas would support the CCGP of balancing developed land and open space. The residential component of the project will help the City meet its housing need, and provide opportunities to provide affordable housing, consistent with identified guiding principles. However, this proposal does not fully achieve the EDGP, when compared with what is allowed under the City's existing General Plan, as less revenue would be generated with no office or commercial space onsite. 4. Taylor Woodrow Homes, The Taylor Woodrow homes proposal included 1,750 residential units, a 75-room hotel, 70,000 square feet of visitor -serving retail uses, a school, parkland, and 195 acres of open space. The hotel and retail uses will help contribute positively to the City's fiscal balance and the proposed mix of uses are all in support of EDGP. The mix of uses that include development and open space would be consistent with the CCGP. Implementation of parkland will help meet the City's need for these facilities, especially on the west side of the City. As previously discussed, additional residential uses are needed within the City, and can serve low, moderate, and upper income households, consistent with the Workforce and Special Needs Housing Guiding Principles (WSNHGP). 5.Open Space Another proposal for the Banning Ranch site considered during the Visioning Process was to preserve the entire area as open space to be included as part of the Orange Coast River Park. With no new development, all types of habitat will be preserved, public viewsheds will be protected, and natural landforms will not be altered, while the site would be conserved as open space, consistent with ECGP. However, under this option, clean up of the degraded habitat from existing oil operations would not occur, and would not fully support the ECGP. This land use development option would also maintain the natural setting of the area, which would be in support of the CCGP. Further, implementation of this option would be in support of those Visioning participants who wanted Banning Ranch to be preserved as open space. OTHER DEVELOPMENT OPTIONS Additional development options for the Banning Ranch site that may be considered are described in detail and shown in Table 1-1, below. These options are not mutually exclusive and could be implemented in combination with one another and/or other alternatives developed by GPAC. 6. Concentration of Uses Under Existing Newport Beach General Plan This land use alternative includes uses similar to those allowed under the City's existing General Plan, but concentrates development away from the areas containing biological resources with a rank of 1, such as on the mesa near Coast Highway, at a higher density. With development concentrated away from these areas, more land would be left as open space when compared to implementation of the City's existing General Plan (Option 2). Similar to implementation of the City's existing General Plan, the proposed mix of uses under this option would be in support of EDGP through contributing positively to the City's fiscal balance, and CCGP by maintaining a balance of development and open space areas. High -density residential uses would help meet the City's need to provide additional units, and if affordable housing were included, it would be in support of the WSNHGP. Implementation of this option would also result in much of the lowlands being preserved and possibly restored, which would minimize potential effects of exposing people to coastal, seismic, and flooding hazards. However, with development concentrated near Coast Highway, structures would be located in the higher elevation areas of the site, which may alter the bluffs and associated viewsheds. Lastly, with a mixed -use, high - density development, less vehicle trips may be made, which will support the previously identified MGP. 7 7. Resort This land use alternative includes the creation of a resort -like development with a 150-room hotel, 50,000 sf of restaurants/retail space, and 500 residential units, with the remainder of the area as open space. This development option would capitalize on the site's proximity to the ocean. Implementation of this alternative would support the EDGP of maintaining a positive fiscal balance, implementing mixed -use, and providing visitor -serving businesses and facilities. The provision of residential units would help meet the City's need for additional units, which would be in support of WSNHGP, though to a lesser extent when compared to other land use alternatives due to the smaller number of units. Active and passive recreational space, as well as habitat preservation could be incorporated onsite, which would be in support of the ECGP. Siting of this development needs to consider maintaining the natural landform of the bluffs and preserving public viewsheds. Additionally, the exact design and scale of development needs to be consistent with the surrounding community character, in order to support the CCGP. Lastly, implementation of this option would generate additional traffic and increase peak hour traffic on a congested roadway, Coast Highway, and not support MGP. 8. Business Park The Business Park development option can be implemented by itself or in combination with any other options, as described above. Development under this land use alternative would include a business park as the primary use on a minimum of 100 acres with 50,000 sf of ancillary retail uses, while the remainder of the site totaling just over 300 acres would be preserved as open space. Depending on the exact mix of uses, implementation of this development option could contribute to maintaining the City's fiscal balance, in support of identified EDGP. Through the balancing of open space and developed lands, this option would be consistent with CCGP. Given that the lowlands (western portion of the site) are subject to coastal flooding and seismic hazards, the business park could be concentrated in the eastern portion of the site, which is higher in elevation, to minimize these effects. However, exact siting and scale of these uses need to consider the guiding principles of protecting the bluffs and public viewsheds. The western part of the site could be preserved and/or include passive recreational uses in areas with important biological habitat, while the remaining areas could accommodate active recreational uses, consistent with identified ECGP. If this option is implemented alone, it would generate additional traffic on Coast Highway during peak hours, though to a lesser extent than other options since it involves less development overall. This would not be fully consistent with the MGP. Table 1-1 Banning Ranch Development Options AesfdenUdUnits offices ace /adostrialS are ICommercials ace Parkland oevetupmentinvon I (apes) 1 open Space Amer Units I Acres SF Acres SF Acres SF Acres 1 OfangeCoonty6e17eralP1841 0 0 0 0 0 0 0 0 0 yes Oi/extractlan 2 Newport Beach Ex sting General plan, 2,600 470.3e 235,600 13 164400 12 50,600 5 11 yes School 3 W.Newport0/7Company 2,600 N/A 0 0 0 0 0 0 yes yes School 4 Tay/or Woodrow Homes 1,750 200E50 0 0 70,000 17 77 118acres Schaal,HOW175momsl Open Space 0 0 0 0 0 0 No 411 acres No Concentration of Uses Under 6 Existing.Newport Beach General 2,600 NIA164,400 8 50,000 3 Yes Yes No Plan 7 Resort 500 10 0 0 50,000 5 Yes as Hotel (150 rooms) 8 Business Park 0 0 200,000 50 50,000 4-10 No 302-308 acres No Options in italics denote prior development proposals. The acreages for the various land uses under the General Plan are approximations. 470.3 acres represents the entirety of two statistical areas that include lands adjacent to Banning Ranch, of these, 92 acres are restored wetlands, 21 acres are reserved for neighborhood and view parks and 5 acres are reserved for neighborhood shopping center. ° In addition to the 70,000 sf of commercial uses, the 17 acres would also accommodate the hotel use. 0 Beach General Plan FORMULATION GPAC REVIEW • May 24, 2004 EIP Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. The first step will be the identification of possible land use alternatives for the 12 subareas that have been selected by the General Plan Update Committee (GPUC). Following identification, the consultant team will evaluate the comparative traffic, fiscal, and environmental impacts of these options. These Geographic Subarea Discussion Papers are intended to serve as a framework for the GPAC's discussion in defining the land use alternatives for each of the following geographic subareas within Newport Beach: Banning Ranch, Airport Business Area, Lido Marina Village/Civic Center, Balboa Village, Cannery Village/McFadden Square, Corona del Mar, West Newport Coast Highway Corridor, West Newport Residential, Mariner's Mile, West Newport Industrial, Newport Center/Fashion Island, and Old Newport Boulevard. It is understood that these encompass areas in which change is likely and/or policy intervention is necessary. Other areas of the City will be addressed by "global" policies that will be subsequently defined during the planning process. These papers present an overview of existing conditions, as well as a summary of key planning issues/findings affecting each subarea's land uses, as identified through the Visioning Process and the analyses in the Technical Background Report, and raised by City staff. Guiding Principles that pertain to or affect land use development of the subarea are also provided. Lastly, initial land use options for each subarea are identified for GPAC consideration, and additional land use alternatives may be identified through this process. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Preferred Land Use Plan will be selected in October. Description of Airport Business Area The Airport Business Area covers approximately 360 acres and is bound by Campus Drive to the north, Bristol Street North/Corona del Mar Freeway to the west and Jamboree Road to the 1 AirportGeographic Subareas Land Use Policy Formulation: southeast. As the study area name implies, the area is adjacent to the John Wayne Airport as can be seen in Figure 2-1 below. It is also in close proximity to the University of California, Irvine. COSTA MESA 'l "t WINE Nr Al *1% il Figure Figure 2.1 Regional Location of Airport Business Area This proximity has influenced the many uses in the area that support the airport and the university, such as research and development, high technology industrial and visitor -serving uses, such as hotel and car rental agencies. This area consists of 83.7 percent commercial uses with administrative, professional, and financial office uses accounting for 62.0 percent of the area's land uses. Multi -tenant commercial accounts for 7.5 percent of the area's land uses and provide support retail and services for office and industrial employment centers in the area. A number of industry headquarters are located in the Airport Business Area including Conexant, and Jazz Industries, along with other major businesses located in Koll Center at MacArthur Boulevard and Jamboree Road. Industrial related uses account for 13.1 percent of the study area. Three large hotel developments account for 4.5 percent of the area's land uses. Also significant are a number of auto -related commercial uses located primarily in the northwest portion of the area. These auto -related uses include carwash, auto -detailing, rental, repair, and parts shops. The Airport Business area is surrounded by John Wayne Airport in the County of Orange on the west, and the City of Irvine on the north and east. Recent development activity in the City of Irvine's Business Complex has included the transfer of development rights, bringing more intense development closer to the Airport Business area, and resulting in the conversion of office to residential entitlement. This activity is changing the area to a mixed -use center. 2 Airport Business Area Issues and Opportunities The following issues were identified for the Airport Business Area through the Visioning Process, Technical Background Report (TBR) analyses, and by staff. VISIONINGPROCESS 1. There is consensus that portions of the Airport Business Area are good candidates for revitalization. 2. Overall, the community prefers revitalization of the Airport Business Area with income generating land uses, but there is also support for expansion of development. 3. Generally, there is support for a range of development types in this area as long as traffic is not adversely affected. 4. Survey respondents were comfortable with low-rise office building, opposed to more car dealerships, and opposed to industrial uses. 5. GPAC members are supportive of non -airport, non -peak hour uses that will discourage airport expansion. 6. There was broad consensus and support for new hotels in the Airport Business Area. 7. There is support for mixed -use development with residential and revenue -generating businesses such as hotels and entertainment. 8. There is split support for high-rise development and retail. 9. There was no consensus regarding support for "big box" retail uses. 10. A majority of Visioning participants believe it is acceptable to have more traffic congestion in certain locations of the City, such as the Airport Business Area, than in other parts of the City. GPAC members felt that "more" traffic should be defined before moving ahead with significant development. TECHNICAL BACKGROUND REPORT 1. The Airport Business Area has a number of under -performing land uses that present an opportunity for re -use or redevelopment. 2. Multiple and fragmented ownership of properties may constrain new development proposals. 3. A portion of the area is located adjacent to and subject to compliance with the Orange County Airport Land Use Plan in terms of uses and height restrictions. 4. The Airport Business Area has been identified as a possible target location for "big box" retail, service commercial/flex space and car dealerships. In particular, "big box" retail has been suggested to capture large sales leakages in general merchandise, family clothing, discount department stores and home improvement store categories. This area, 3 with its proximity to SR 73 and large under-utilized properties was seen as a more favorable and central location than tourist oriented coastal areas for such uses. 5. There is potential for the transition of older properties in the area to more intensive use including the addition of major retail uses on sites currently occupied by industrial or office uses. CITYSTAFF 1. There are special land use restrictions (SLURs) on properties in the area between Birch Street and Campus Drive. These restrictions, which will be in place another 10-15 years, limit development in this area to the existing land uses and development intensity. 2. There are older properties in the area that are unattractive and underutilized. Automobile services, including auto parts sales, repair, and leasing and rental are scattered throughout the area. 4. There is potential for infill higher -density housing and affordable housing opportunities in the area. 5. Staff identified the following "issue and opportunity areas" within the Airport Business Area. These areas are discussed below, and alternative land uses specific to these areas are presented for consideration in the Potential Land Use Alternatives section of this discussion paper. Campus Tract (between Birch Street and Campus Drive South of MacArthur Boulevard). This area is adjacent to the John Wayne Airport and currently contains a mixture of retail, automotive service, airport and flight related uses such as a flight school, and light industrial. (Re)development in this area is limited by the SLURs and the Orange County ALUP, which restrict the use, height, and intensity of development of properties in this tract. The SLURs on these properties will be valid for another 10-15 years, so it is not likely that significant redevelopment will occur in the area during this time. Height and use restrictions further limit development potential of this tract, but several viable options remain for viable long-term uses in this area. There is the opportunity for 300,000 square feet of entitled development to be built in this area. Further, consideration must be given to the long-term development of this area due to the small lot subdivision pattern in this area that is unlike the larger parcelization of other properties in the area. The smaller lots will make consolidation of sites more difficult to achieve a modern scale of development. The City may consider incentives that support and encourage such lot consolidation to facilitate desired land use alternatives. Multi -Tenant Industrial (between Birch Street and Westerly Place, west of Dove Street). This multi -tenant industrial area contains a mixture of older industrial, office, and R & D uses. This area also includes uses that support the airport and other uses in the area. This area may be considered for a variety of uses to complement other land use alternatives proposed, or it may be considered for reuse / or expansion of existing uses. Community Commercial Area (at Birch and Dove Streets) south of Radisson Hotel. This commercial area contains a variety of under -performing uses include a multi - tenant center, offices, and automotive related uses. There are opportunities for this area to be expanded and/or reused to provide a greater variety of support services to complement the long term redevelopment of the area with mixed -use projects that include housing and thus the need for expanded services such as day care and services such as dry cleaners, markets, shoe repair, and related -commercial, uses. Conexant (at Jamboree Road south of Birch Street). Conexant is one of the City's largest and most viable employers. Land use alternatives for areas adjacent to this area may consider opportunities for the future expansion of Conexant, and similar users in the immediate area. Campus Drive Condominiums (Located on Campus Drive at Von Karman Avenue). These are older, low-rise condominiums. Koll Center (MacAruthur Boulevard between Jamboree Road and Birch Street). Koll Center is an office park of low to mid -rise office buildings. This area also includes support commercial uses and a hotel. There are large expanses of surface parking. Guiding Principles The following guiding principles are from the Economic Development, Community Character, Environmental Conservation, Workforce and Special Needs Housing, and Mobility Discussion Papers, and are pertinent to land use development within the Airport Business Area. EcommiCDEVELOPMENT 4. The General Plan should encourage mixed -use development. 5. General Plan policies will support City efforts to optimize retail sales capture in the community. 9. General Plan policies will protect the high value of residential property. 10. General Plan policies shall prepare the City to capitalize on market and demographic changes and opportunities that emerge in key economic centers of the community. 11. The General Plan shall support the careful expansion of visitor -serving businesses and facilities, including hotels and meeting facilities. 12. The General Plan shall offer a distinct land -use concept and policy framework for the Airport Business Area. 5 COMMUNITY CHARACTER 2. Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. 3. Future development shall consider the scale, urban form, design, character and quality of the community. WORKFORCE AND SPECIAL NEEDSHOUSINC Promote a balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments including very low, low, moderate, and upper income households. 3. Consider mixed -use development as a means to create additional housing opportunities. MOBILITY 1. Establish General Plan land uses and density/intensity limits that will have less impact on peak hour traffic. 2. Consider the potential benefits and costs (housing, social, community character, fiscal and economic) of land use and circulation system alternatives before adopting goals regarding acceptable levels of service for the circulation system. 6. Consider establishing a different level of service standard for the Airport Area, with consideration of possible impacts on residential areas. 8. Consider urban scale development in areas where there is potential for development patterns that will minimize traffic. 9. Increase City strategies and programs to enhance the development and use of alternative transportation modes and transportation systems management. ENVIRONMENTAL CONSERVATION 3. Minimize air quality degradation through land use practices and circulation improvements that reduce reliance on the automobile. Potential Land Use Alternatives for Discussion The potential land use alternatives discussed below may be considered for this area, in particular for the "issue and opportunity" areas identified by Staff. These land use alternatives are presented in a matrix at the end of this discussion that correlates the alternatives to specific geographic areas for which they may be considered. Figure 2-2 depicts the issue areas and the various land use alternatives considered for each area. 0 1. Hieh-Density Residential One land use alternative to consider for this area is infill high -density residential development. The Airport Business Area provides a unique opportunity for the location of high density residential where housing can be built within the existing high intensity development context. The location is close to regional roadways that would minimize local roadway trips during peak hour travel consistent with the Mobility guiding principle to consider traffic impacts in identifying future land uses. Further, residential in this area would be within a major employment center and in close proximity to other regional employment centers in the Irvine Business Complex. The development of housing in this area also provides the opportunity for the City to meet its housing element production goals, including the provision of affordable housing. It is also consistent with several economic development guiding principles related to the economic revitalization of the Airport Business Area and maintaining high -value residential in the City. Residential may be considered in the Koll Center, the Campus Drive condominiums and the possible conversion of the Radisson Hotel to high-rise residential. This alternative may also be considered in combination with Alternative G. as support retail would likely be a viable secondary use to residential uses. 2. Mixed -Use Development This land use alternative may include vertical mixed -use with commercial development on the ground floor and residential on the floors above, or on larger parcels an integrated development that includes residential and commercial uses in separate buildings as occurs in Newport Center. The Airport Business Area is a major employment center in the City and the addition of housing to the area along with related support services would support and strengthen the economic vitality of the area and enhance its attractiveness for complementary uses that support the existing businesses and potential residents such as specialty food markets, day care, and recreational opportunities. Mixed -use development is consistent with several guiding principals including Environmental Conservation to improve air quality due to the reduced trips that result from mixed -use projects relative to single use development projects. It is also consistent with Economic Development and Workforce and Special Needs Housing guiding principles that encourage the consideration of mixed -use in appropriate areas. The Airport Business Area was identified in the Visioning,process as a potential location for mixed -use development. With land assembly and incentives from the City for lot consolidation, sites large enough for attractive functional mixed -use projects may be considered; redevelopment of the Campus Drive condominiums may be one such site. There may be other areas in the Airport Business Area suitable for smaller scale mixed -use projects that have not been identified here such as the properties with frontage to Bristol North. 3. Hotels This land use alternative is for new hotels in the Airport Business Area. There are a few hotels in the area currently, and there was consensus during the Visioning process that if the City were to support the development of additional hotels to attract tourists and visitors and enhance the City's economic base, they should be located in this area. The advantage of the area for new hotels is its proximity to the airport, major freeways, and location in and near major employment 7 centers in the region. Further, the area has the availability of underutilized properties that have the potential for redevelopment. Hotels are consistent with several Economic Development principles including capitalizing on market and demographic changes and opportunities that emerge in key economic centers of the community, and the expansion of visitor -serving businesses and facilities including hotels and meeting facilities. Properties in this area that may be considered for new hotel development include the Koll Center, the Campus Tract, and the Birch Street Commercial. Hotels may also be considered for other properties in this area that have not been identified as an issue area, such as along the North Bristol Street corridor adjacent to the Corona del Mar Freeway. 4. Aviation Corridor An aviation corridor for airport service uses such as flying schools, airplane sales, airplane rental and lease, and support services for the owners of private airplanes is an alternative to consider for the properties in the campus tract between Birch Street and Campus Drive. This location, adjacent to the airport is less ideal for more sensitive uses such as residential and is better suited for more intensive uses, which is consistent with the Economic Development guiding principle to capitalize on opportunities that emerge in key economic centers of the community. The City's goal with this alternative is to attract economically viable businesses in this corridor that do not merely support John Wayne Airport, but also provide fiscal benefit to Newport Beach. 5. Auto Sales / Services Auto sales and/or service are another alternative to consider in this area based on the availability of large areas of under -performing properties and the fiscal benefit of this land use to the City. Ideally, this alternative would consider consolidating the existing auto serving uses in this area to a larger site within the Campus Tract or the Multi -Tenant Industrial area. The location of such uses in this area is preferable to coastal locations or other areas more desirable for tourist or visitor serving uses. Automobile sales was identified as a potential land use consideration in the Economic Study completed for the General Plan Update and is consistent with the Economic Development guiding principle regarding capitalizing on market and demographic changes and opportunities that emerge in key economic centers of the community. However, no consensus for auto sales was achieved through the visioning process. Locations for these uses could include Bristol North or MacArthur Blvd. frontages, which provide the visibility needed for auto sales. 6. Retail and Support Service Uses Retail and support uses currently exist at various locations throughout this area including in Koll Center, the Campus Tract, along MacArthur Boulevard, and North Bristol Street. The greatest concentration of commercial exists in the Birch Street and Bristol North commercial areas. These uses primarily provide retail sales and commercial services to the employee base in this area. However, based upon the Economic Study for this General Plan update, the Airport Business area, based upon its location, may be considered for additional retail sales such as big box stores and/or auto dealerships. The area was also identified as the possible location for major retail sales during the Visioning process. This area would need additional support retail and services should the higher density development alternatives such as residential and mixed -use be implemented. Retail sales are consistent with the Economic guiding principle to capitalize on market and demographic changes and opportunities that emerge in the City's key economic centers. Possible location for retail and support uses include the Campus Tract, Community Commercial area, the Multi -Tenant Industrial area; and areas along North Bristol Street adjacent to the Corona del Mar Freeway. 7. Reuse and/or Expansion of Existin¢ Development The reuse of existing under -performing or under-utilized sites should be considered as an alternative land use. For example, the extensive surface parking that exists to service the Koll Center may be reused for new development in conjunction with the construction of parking structures. Another example of a reuse opportunity is to consolidate the location of the car rental uses into one area and utilize the properties for other uses such as those discussed above. The expansion of major employers such as Conexant may .be also considered. However, as a past Koll expansion was not approved through the Greenlight process, this alternative would have to demonstrate clear and significant benefits to Newport Beach to achieve Greenlight approval. This alternative may be considered in any area where there are viable uses that the City would like to encourage retention and expansion through policies that encourage and facilitate lot consolidation. This alternative is consistent with the Economic Development guiding principle regarding capitalizing on market and demographic changes and opportunities that emerge in key economic centers of the community. The Community Character guiding principle to enhance beneficial and unique business districts could be achieved by careful application of design and development standards for new uses. This alternative would be consistent with the Mobility guiding principle to consider urban scale development since this area currently contains high-rise and industrial uses of a more urban character. The guiding principle to consider a different level of service for the Airport Business area would also be met through the selection of this alternative as reuse and/or expansion of some uses could result in increased vehicle circulation in the area. Table 2.1 Airport Business Area Development Options by Opportunity Area 0 ortuni! Areas N IC C1 y.1 C.0 .�.. E ay fi@ a Fe Development Options Beach General Plan FORMULATION GPAC REVIEW • May 24, 2004 EIP Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. The first step will be the identification of possible land use alternatives for the 12 subareas that have been selected by the General Plan Update Committee (GPUC). Following identification, the consultant team will evaluate the comparative traffic, fiscal, and environmental impacts of these options. These Geographic Subarea Discussion Papers are intended to serve as a framework for the GPAC's discussion in defining the land use alternatives for each of the following geographic subareas within Newport Beach: Banning Ranch, Airport Business Area, Lido Marina Village/Civic Center, Balboa Village, Cannery Village/McFadden Square, Corona del Mar, West Newport Coast Highway Corridor, West Newport Residential, Mariner's Mile, West Newport Industrial, Newport Center/ Fashion Island, and Old Newport Boulevard. It is understood that these encompass areas in which change is likely and/or policy intervention is necessary. Other areas of the City will be addressed by "global" policies that will be subsequently defined during the planning process. These papers present an overview of existing conditions, as well as a summary of key planning issues/findings affecting each subarea's land uses, as identified through the Visioning Process and the analyses in the Technical Background Report, and raised by City staff. Guiding Principles that pertain to or affect land use development of the subarea are also provided. Lastly, initial land use options for each subarea are identified for GPAC to consider, and to stimulate their identification of additional land use alternatives. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Preferred Land Use Plan will be selected in October. Description of Lido Village and Civic Center Area This sub -area is comprised of two distinct locales, Lido Village and the Civic Center, which comprises the area in which City Hall is located. Figure 3-1 below shows this area within a regional context. Lido Village is bounded by Finley Drive to the south, the Lido Channel to the north and east, and Newport Blvd to the west. Primary uses in Lido Village include salons, home furnishings, apparel, and other specialty shops ranging from jewelry stores to wine merchants. Lido Village includes Lido Marina Village, a waterfront development situated between the Lido Channel, Newport Boulevard, and Via Lido, and is adjacent to City Hall. Lido Marina Village is primarily a pedestrian -oriented retail area, with a mix of neighborhood - serving commercial uses and specialty shopping. A parking structure, located in the center of Lido Village, accounts for 8.3 percent of the land area. The area also contains the historic Lido Theatre located on Via Lido, and civic/social uses such as the Elks Lodge. Commercial land uses predominate at 53.5 percent of the area, with some residential condominiums (2.9 percent of the area) located along Via Lido. While Lido Village contains specialty retail and restaurants, the Civic Center area is more public -use oriented. This area primarily contains public/semi-public uses, with City government offices, a church and a fire station. It consists of the City Hall complex, a Fire Station, a public parking lot, and a stretch of landscaped parkway along Newport Boulevard; these uses account for 24.8 percent of the study area. In addition, the area contains multi -tenant commercial uses such as (38.0 percent of the study area), located in the commercial strip on Newport Boulevard west of City Hall between Via Lido and 32nd Street. Vacancies account for 3.1 percent of land uses in the study area. 1. 'COSTA MESA •�. r { IRVINE 14 Figure 34 Regional Location of Lido Village and Civic Center Subarea 2 Lido Village and Civic Center Subarea Issues and Opportunities The following issues were identified for the Lido Village and Civic Center area through the Visioning Process, Technical Background Report (TBR) analyses, and by staff. VISIONING PROCESS 1. There is community support to protect historic commercial and residential villages such as Lido Village. 2. Suggestions of tools to protect villages include narrowing permitted uses; adopting design and development guidelines; establishing a design review process; and adopting specific plans. 3. Lido Village was identified as an area suitable for mixed -use development integrating housing and commercial or office space. 4. There is a question as to whether City Hall is still centrally located for residents. TECHNICAL BACKGROUND REPORT 1. Lido Marina Village, Lido Plaza and California Beach Building have experienced a high number of vacancies. At issue is the appropriate type and scale of development to enhance its character and viability. 2. Lido Marina Village, Lido Plaza and California Beach Building may see pressure for redevelopment as retail uses under -perform. 3. Parking in this area may be inadequate to support full occupancy of the commercial space available in the Village. 4. Multiple ownership of properties inhibits cohesive and integrated development. 5. City Hall is considered too small to function as the administrative center for the City. CITYSTAFF 1. Multiple owners of properties and fragmented land and property leasing agreements inhibit redevelopment in the area. 2. The Lido Marina Village area is not large enough to be a destination location. 3. The commercial area has limited visibility from Newport Boulevard. 4. There is insufficient parking for full occupancy of uses in the Village and the fragmented location of available parking is an issue. 5. The existing parking structure in Lido Marina Village is underutilized because it is: ■ Too expensive ■ Not well designed, not open enough, and not well lit ■ Not visible from Via Lido. 6. Commercial strip across Newport Blvd is dated and lacks adequate parking. 7. Via Lido is a wide street that results in unsafe vehicle speeds. 8. Newport Boulevard is not an attractive entry to the Balboa Peninsula. 9. The Lido Theatre is a community resource (historic building). 10. Staff identified the following "issue and opportunity areas" within Lido Village and Civic Center. These areas are discussed below, and alternative land uses specific to these areas are presented for consideration. These areas are identified on Figure 3-2 Lido Village and Civic Center Land Use Alternatives Map and are discussed in the Land Use Alternatives section. Lido Marina Village. This small triangular site is located west of Newport Boulevard between Via Oporto and Via Lido. There are several retail shops located here, but a large portion of the land area of the Village is occupied by the parking structure that serves the entire area. Lido Channel. These properties, part of the Lido Marina Village, are located along the Lido Channel between 32°d Street and Central Avenue. The Channel properties contain a mixture of commercial, residential, and civic/social uses (Elks Club). There is some pedestrian access to the Channel in this area, and a Coastal Commission requirement that new development provide pedestrian access to the Channel. It is a long-term goal of the City to have a pedestrian promenade that runs the entire length of the Channel that links pedestrians shopping in the Village to the Channel and facilitates easy travel between the two areas. Lido Village South. This is the larger southerly portion of Lido Village located west of Newport Boulevard between Via Lido and 32nd Street. As discussed in the description above, this area primarily contains retail shopping and services in the shops along Via Lido and the commercial center along Finley Street north of City Hall. This portion of the Village also contains the historic Lido Theatre, a treasured City and Village resource. CityHall. The City Hall complex includes City Hall and a Fire Station. The outstanding issue regarding the future of this area is whether City Hall will relocate to a different part of the City or be rebuilt and expanded at this location. No decision has been made regarding the future of City Hall, so the land use alternatives discussed later in this paper consider both scenarios. Newport Boulevard Commercial. This area is located north and west of City Hall along Newport Boulevard between Via Lido and 32°d Street. This strip commercial has some healthy, established businesses, but also suffers vacancies. The size and depth of these properties limit their use for any major development project, but may be suitable for residential uses, visitor -serving commercial or the reuse and expansion of the existing viable commercial uses. 4 Guiding Principles The following guiding principles are from the Economic Development, Community Character, Environmental Conservation, Workforce and Special Needs Housing, and Mobility Discussion Papers, and are relevant to land use development within the Lido Village and Civic Center area. ECONOMICDEVELOPMENT 4. The General Plan should encourage mixed -use development. 5. General Plan policies will support City efforts to optimize retail sales capture in the community. 9. General Plan policies will protect the high value of residential property. 10. General Plan policies shall prepare the City to capitalize on market and demographic changes and opportunities that emerge in key economic centers of the community. 11. The General Plan shall support the careful expansion of visitor -serving businesses and facilities, including hotels and meeting facilities. COMMUNITYCHARACTER 2. Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. 3. Future development shall consider the scale, urban form, design, character, and quality of the community. WORXFORCEAND SPECIAL NEEDS HOUSING 1. Promote a balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments including very low, low, moderate, and upper income households. 3. Consider mixed -use development as a means to create additional housing opportunities. MOBILITY 1. Establish General Plan land uses and density/intensity limits that will have less impact on peak hour traffic. 2. Consider the potential benefits and costs (housing, social, community character, fiscal and economic) of land ,use and circulation system alternatives before adopting goals regarding acceptable levels of service for the circulation system. 8. Consider urban scale development in areas where there is potential for development patterns that will minimize traffic. 9. Increase City strategies and programs to enhance the development and use of alternative transportation modes and transportation systems management. ENVIRONMENTAL CONSERVATION Minimize air quality degradation through land use practices and circulation improvements that reduce reliance on the automobile. Suggested Land Use Alternatives The potential land use alternatives discussed below may be considered for this area, in particular for the "issue and opportunity" areas identified by staff.These land use alternatives are presented in a matrix at the end of this discussion that correlates the alternatives to specific geographic areas for which they may be considered. These options are not mutually exclusive and could be implemented in combination with one another and/or other alternatives developed by GPAC. Figure 3-2 depicts the issue areas and the various land use alternatives considered for each area. 0 DEVELOPMENT OPTIONS FOR LIDO VILLAGEAND CIVIC CENTER 1. Create a "Super Block" One alternative that takes a comprehensive approach to the redevelopment of the Village is to create a "super -block" that achieves a critical mass to attract viable commercial uses. The super block would involve consolidation of properties in the southern portion of the Village from Newport Boulevard to the Lido Channel. This proposal includes the abandonment of Via Malaga and Via Oporto south of Via Lido to add additional acreage to the block. This alternative would be coupled with the necessary street improvements to 32"d Street so that it becomes the main entry to Lido Isle. The super block consolidation could result in larger parcel sizes and enhance the ability to attract "destination" entertainment and cultural uses to complement the Lido theatre and enhanced visitor serving retail and service uses in the Village. This alternative could also facilitate the ability to provide shared parking uses for the area in one central location. The super block concept is consistent with several Economic Development Guiding principles such as revitalizing older commercial areas, converting underperforming retail, increasing visitor serving uses in the City, and capitalizing on market opportunities in key economic centers of the community. With careful design and attention to maintaining the character of the Village, this concept could also be consistent with Community Character guiding principles that speak to maintaining the character and small town feel of the City's Villages such as Lido Marina. 2. Hieher-Density Residential Medium density housing is a land use option to consider for Lido Village especially for Lido Channel properties along the waterfront. Given the small size of the Village, commercial uses should be encouraged in the central Village areas with higher density residential considered in areas such as channel front properties or locations in the Lido Village South furthest from the central Village area. The provision of additional housing opportunities is consistent with the Economic Development guiding principles to maintain high value residential and to increase retail sales capture by improving the retail market that remains by reducing the amount of under- performing commercial uses. Further, additional housing increases the local customer base for commercial uses in the Village and reduces traffic for those who may live and work in the Village. It would also provide additional housing opportunities for a major City employment base, Hoag Hospital. Residential opportunities could also be designed as part of mixed -uses in the area. 3. Mixed -Use Development This land use alternative may include vertical mixed -use with commercial development on the ground floor with residential on the floors above, or on larger parcels an integrated development that includes residential and commercial uses in separate buildings such as currently exist in Newport Center. Lido Marina Village is nearby to Hoag Hospital, a major employment center in the City. The addition of housing to the Village would support and strengthen its economic vitality and attractiveness for complementary entertainment, cultural and recreational uses. Mixed -use is consistent with several guiding principals including Environmental Conservation to improve air quality due to the reduced trips that result from mixed -use projects relative to single 7 use development. It is also consistent with Economic Development and Workforce and Special Needs Housing guiding principles that encourage the consideration of mixed -use in appropriate areas. With land assembly and incentives from the City for lot consolidation, mixed -use could be developed in the area and smaller mixed -use projects may be considered for Lido Channel properties. 4. Entertainment / Cultural Uses Entertainment, cultural uses, art galleries, art schools, and specialty museums, etc. may be considered for appropriate locations in the Village. These uses should be concentrated in the central Village areas along Via Lido so that they are easily visible. These uses are consistent with Economic Development principles as these uses are a type of visitor service use and they have the potential to enhance the viability of the Village consistent with the guiding principal to capitalize on market opportunity in key areas of the community. These uses would also be consistent with Mobility guiding principles regarding land uses that consider the traffic impacts since these uses are not peak hour traffic generators. 5. Hotels with Specialty Retail Another alternative to consider for this Village is lodging. This land use alternative may be in the form of boutique hotels in the Village with a specialty retail or bed and breakfast establishments. The Visioning process and Economic Development studies identified the need and desirability for hotels as a way of attracting additional business to the community. The advantage of this area for hotels is its proximity to the coast and near a major employment center. Lido Village South as well as Lido Channel properties are potential locations in the Village for specialty hotel/lodging opportunities. Hotels are consistent with several Economic Development principles including capitalizing on market and demographic changes and opportunities that emerge in key economic centers of the community, and the expansion of visitor -serving businesses and facilities including hotels and meeting facilities. 6. Visitor-Servine Commercial This land use alternatives covers a broad range of commercial uses from retail commercial, to hotels, to ice cream parlors, and restaurants. There are several vacant and/or underutilized properties in the Village that would be suitable for these uses including, the area south of Via Lido, properties north of Via Lido adjacent to the parking structure, and Lido Channel properties. This alternative is consistent with Economic Development guiding principles to increase visitor - serving uses and to capitalize market opportunities in key community areas. 7. Reuse/Expansion of Existine Uses Continuation of existing uses through expansion or redevelopment is another land use option for properties in this area. In particular, the City encourages the retention of the Lido Theatre and uses that complement and support the theatre. This land use alternative does not generate the economic opportunity of some of the more ambitious proposals such as development of the super block, but expansion and/or reuse is consistent with Community Character guiding principles to maintain the small town feel and character of established Villages such as Lido. 8. StreetlCorridor Improvements The following considerations for street and streetscape improvements have been identified: ■ Improve the streetscape along Newport Boulevard so that it is a more attractive entry to the City and/or the Peninsula. ■ Improve the streetscape along Via Lido to make it more pedestrian friendly, i.e. add angled parking, narrow the travel lanes, etc. ■ Implement a pedestrian promenade along the Lido Channel that facilitates pedestrian connections between the Village shops and Channel frontage. ■ Reconfigure 32nd Street so that it serves as the primary entry to Lido Isle. The improvements proposed to Via Lido will slow traffic and facilitate the use of 32nd Street as the main entry to Lido Isle. This improvement was also a recommendation of the Balboa Peninsula Planning Area Study completed in September 1996. 9. Relocate City Hall This option would allow redevelopment of the Civic Center properties with the land use alternatives discussed above. The City Hall is located on property that is approximately one- fourth of the land area of the Village and provides opportunities for a full range of development options discussed. Refer to 1-6 above. 10. Rebuild City Hall in the Current Civic Center Area The City has the option to demolish and rebuild City Hall at its current location using a more efficient design. The issue has been raised as to whether City Hall is centrally located to efficiently serve all residents and there have been discussions about possible relocation. One idea would be to apply the super block concept and share parking between City Hall and Village uses. Table 3.2 Lido Village and Civic Center Area Development Options by Opportunity Area Development Options 0 orrenit Ame R C t y ^m CCc N a d N b u ,N� V 1 Super -Block X X 2 Higher -Density Residential X X X X 3 Mixed -Use Development X X X X 4 Entertainment I Cultural Uses X X 5 Hotels with Specialty Retail X X X X 6 Visitor -Serving Commercial X X X X X 1 ReuselExpansion of Existing Uses X X X X X 8 StreetlCorridor Improvements X X X X 9 Relocate City Hall X 10 Rebuild City Hell in Civic Center Area X Y i r- Beach General Plan FORMULATION GPAC REVIEW • May 24, 2004 EIP Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. The first step will be the identification of possible land use alternatives for the 12 subareas that have been selected by the General Plan Update Committee (GPUC). Following identification, the consultant team will evaluate the comparative traffic, fiscal, and environmental impacts of these options. These Geographic Subarea Discussion Papers are intended to serve as a framework for the GPAC's discussion in defining the land use alternatives for each of the following geographic subareas within Newport Beach: Banning Ranch, Airport Business Area, Lido Marina Village/Civic Center, Balboa Village, Cannery Village/McFadden Square, Corona del Mar, West Newport Coast Highway Corridor, West Newport Residential, Mariner's Mile, West Newport Industrial, Newport Center/ Fashion Island, and Old Newport Boulevard. It is understood that these encompass areas in which change is likely and/or policy intervention is necessary. Other areas of the City will be addressed by "global" policies that will be subsequently defined during the planning process. These papers present an overview of existing conditions, as well as a summary of key planning issues/findings affecting each subarea's land uses, as identified through the Visioning Process and the analyses in the Technical Background Report, and raised by City staff. Guiding Principles that pertain to or affect land use development of the subarea are also provided. Lastly, initial land use options for each subarea are identified for GPAC to consider, and to stimulate their identification of additional land use alternatives. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Preferred Land Use Plan will be selected in October. Description of Balboa Village Balboa Village is the historic center for commercial, recreational, and social activities in the community. Balboa Village is located on the Balboa Peninsula between Coronado Boulevard to the northwest, and A Street to the southeast. Figure 4-1 shows the regional location of Balboa Village. This study area has 19 acres, of which a mix of commercial uses represents 33.5 percent (6.4 acres) of land uses within the area. Of the retail uses, multi -tenant buildings with a variety of 1 r commercial uses are the largest commercial land use, representing 15.3 percent (2.9 acres) of the area. The retail uses are a mix of neighborhood -serving and visitor -serving commercial, i.e., ice cream, bike rentals, and T-shirt shops. Fast food and dine -in restaurants, apparel and specialty shops predominate along Balboa Boulevard and Bay Avenue. A "fun zone" along Edgewater Place includes entertainment uses such as an arcade, amusement park rides, fast food restaurants, and souvenir shops. Marine -related commercial uses such as ferries to Balboa and Catalina Islands, and harbor tours are present in the area. There are a number of commercial vacancies throughout the area, as shown on the table, as well as in the multi -tenant complexes along Edgewater Place. This study area is pedestrian -oriented with articulated building facades, and signage that is pedestrian scale. The single largest land use category in the study area is public parking. Two parking lots account for 36.9 percent (7.0 acres) of the area's land uses, providing parking for the adjacent beach area as well as the study area. This is appropriate in an older pedestrian -oriented area where buildings typically have zero lot lines (built to the property line), and relatively limited private parking areas. Residential land uses accounting for 21.5 percent (4.1 acres) of the area are located primarily within the western portion of the study area from Adams Street to Coronado Street, at the eastern boundary of the area, and along Ocean Front. A large park, Peninsula Park, accounts for 4.8 percent (0.9 acres) of the area. The City has embarked upon a number of public improvements in the area within the last few years, which include the addition of street furniture, lighting, landscaping and decorative paving. This study area is within a Specific Plan area. The Balboa Peninsula Planning Study was conducted in 1996. The study concluded the area has a strong marine heritage, and has drawn fishermen, recreational boaters, summer residents, and beachgoers. Over time, the area has experienced a transition to year-round residential use while the visitor uses have continued, and there has not been comprehensive planning to ensure the compatibility of these uses. Parking supply has been addressed, but there has not been a plan to provide adequate parking for the convenience of residents, their guests, and shoppers. There is more commercial space than can be supported by residents alone, and marginal commercial space is used by businesses that are seasonal and do not promote a quality image for the Peninsula. In 1997, the Balboa Peninsula Planning Advisory Committee (BPPAC) published its vision for Balboa Village. The vision consisted of aesthetic improvements such as landscaping, pedestrian amenities, and design standards. The vision addressed property maintenance standards, parking district implementation, and circulation improvements. The vision also sought to establish a "family marine recreation theme," upgrade the Fun Zone, and improve the quality and mix of commercial tenants. As of 2004, landscaping, pedestrian amenities, and design standards, have been implemented for the area. 2 COSTA MESAS f IRVINE r* +' t Figure 4.1 Regional Location of Balboa Village Balboa Village Issues The following issues were identified for the Balboa Village area through the Visioning Process, Technical Background Report (TBR) analyses, and by staff. VISIONING PROCESS 1. Mixed -use development is considered appropriate within Balboa Village. 2. Visioning participants recognized Balboa Village could benefit from revitalization efforts. 3 3. Rezoning of underutilized commercial lands for residential or mixed -use development should be considered. 4. Year-round tourism on Balboa Peninsula is inadequate to support all commercial areas and interest has been expressed to rezone areas for residential or mixed -use development. TECHNICAL BACKGROUND REPORT Programs developed for the improvement of the area include the Balboa Peninsula Sign Overlay, Balboa Village Public Improvements and Design Guidelines, and City acquisition of the Balboa Theater. 2. The commercial area is in close proximity to residential neighborhoods, which can create conflicts due to traffic, parking, air and noise pollution. 3. Balboa Village is in the Coastal Zone and development within the zone is governed by policies in the Local Coastal Plan. 4. Commercial uses are underperforming; this is the lowest retail sales per square foot area in the city. 5. There are several vacancies in the area. 6. A number of commercial tenants are dependent on seasonal demand. Much of these uses are marginal in quality of goods and services provided. CITYSTAFF 1. Since Balboa Village is located on the Balboa Peninsula, it is relatively remote and has limited access from other parts of Newport Beach and the surrounding region. 2. Customers of the Catalina Flier, a private business, utilize much of the public parking lot near the pier during the peak summer season, reducing the amount of public parking available. Many parcels in the area are small and do not have parking spaces. The rehabilitation and reuse of existing structures is inhibited by the code requirements to provide on -site parking, because doing so would require sacrificing building square footage for parking spaces. 4. The "old time" beach experience is part of the unique charm and character of Balboa Village. There is an opportunity to revitalize and enhance the area perhaps with a Historic District. Guiding Principles The following guiding principles are from the Economic Development, Community Character, Environmental Conservation, Workforce and Special Needs Housing Housing, and Mobility Discussion Papers, and are pertinent to land use development within the Balboa Village Area. El ECONOMICDEVELOPMENT 1. General Plan policies will maintain the City's positive fiscal balance. 3. General Plan policies will encourage the revitalization of older commercial areas. 4. The General Plan should encourage mixed -use development. 5. General Plan policies will support City efforts to optimize retail sales capture in the community. 6. The quantity of land designated for commercial use and the development standards that regulate such uses shall reflect the market support that can reasonably be anticipated during the General Plan time horizon. 7. General Plan policies will facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. 8. Additional development entitlement needs to demonstrate significant fiscal, economic or other community benefit. 9. General Plan policies will protect the -high value of residential property. 11. The General Plan shall support the careful expansion of visitor -serving businesses and facilities, including hotels and meeting facilities. COMMUNITY CHARACTER 1. Protect and enhance the natural setting that contributes to the character and identity of Newport Beach and the sense of place it provides for its residents and visitors. 2. Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. 3. Future development shall consider the scale, urban form, design, character and quality of the community. 5. Preserve the community's heritage. WORKFORCE AND SPECIAL NEEDSHOUSINC 1. Promote a balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments including very low, low, moderate, and upper income households. 2. Maintain quality residential development through the application of soundplanning principals and policies that encourage the preservation, conservation and appropriate redevelopment of the City's housing stock. 3. Consider mixed -use development as a means to create additional housing opportunities. 5 4. Consider the rezoning of under -performing commercial areas to allow residential or mixed -use development. 5. General Plan policies shall protect the high value of residential property. MOBILITY Establish General Plan land uses and density/intensity limits that will have less impact on peak hour traffic. 3. Regional traffic will be included in the analysis of land use alternatives, but such traffic will not be the sole reason for rejecting a land use alternative that would have net benefits to Newport Beach. 4. In selecting land use and circulation system alternatives, weight will be given to traffic congestion that is ongoing as well as to congestion that is limited to a few hours of the day or a few months of the year. 7. Improve parking supply and use of existing resources, and reduce congestion in tourist areas. 9. Increase City strategies and programs to enhance the development and use of alternative transportation modes and transportation systems management. ENVIRONMENTAL CONSERVATION 3. Minimize air quality degradation through land use practices and circulation improvements that reduce reliance on the automobile. 5. Encourage the protection and creation of public viewsheds within the City. Potential Land Use Alternatives for Discussion DEVELOPMENT SCENARIOS For Balboa Village, several development preliminary scenarios have been identified, as discussed below. These options are not mutually exclusive and could be implemented in combination with one another and/or other alternatives developed by GPAC. 1. Existine City of Newport Beach General Plan The existing Newport Beach General Plan allows for total development of approximately 2,739 dwelling units, and 281,859 square feet of retail and service commercial uses in the Central Balboa Statistical Area. The maximum commercial floor area ratio (FAR) is 1.0. Second floor residential development over first floor commercial is permitted at 1.25 FAR. The City's General Plan proposes various densities for residential uses, with a mix of residential types, ranging from single-family to multi -family housing. Government, Educational and Institutional Facilities and Recreational and Environmental Uses are also.allowed in the area. 6 Development of additional residential uses would help meet the Workforce and Special Needs Housing Guiding Principle to provide a balanced residential community of varying housing types and offer an opportunity to provide affordable housing. Economic Development Guiding Principles to attain fiscal balance and protect the high value of residential property could also be supported by this scenario. Future development consistent with the existing General Plan would not explicitly further Community Character Guiding Principles, Environmental Conservation or Mobility Guiding Principles because land use strategies are not overtly directed toward these objectives. This alternative does not explicitly address the desire to revitalize the area. 2. Mixed -Use This land use development option includes reuse of underperforming uses with vertical mixed - use structures: housing and/or office uses located above commercial uses. The mix of uses appropriate for this area includes single-family, multi -family residential uses, limited neighborhood commercial uses, and some office/light industrial space. Loft -style and live/work housing are options for the area as they could support cultural and artistic uses in the area. Similar to the BPPAC option, this option supports Economic Development Guiding Principles seeking fiscal balance, revitalization, and local economic vitality by replacing underperforming uses with improved quality uses. It supports retail sales optimization to a lesser extent, as commercial development is only one of many allowed uses. The proposed mix of uses under this option would be in support of the Community Character Guiding Principle to maintain the scale and unique character of the neighborhood, with mixed -use development contributing to the village character of the neighborhood. Residential uses would meet the Workforce and Special Needs Housing Guiding Principle to provide mixed -use housing and help to meet the City's need to provide additional units. If affordable housing were included, it would be in support of the Workforce and Special Needs Housing Guiding Principle. This option is one of the few that supports the Environmental Conservation Guiding Principle to minimize air quality degradation through land use practices that consolidate complementary uses such as housing and neighborhood serving commercial. While the Mobility Guiding Principle to reduce peak hour traffic impacts would potentially conflict with this option, other principles would be met by adopting an urban scale development pattern to minimize traffic, and improving parking supply by onsite parking provision for mixed -use developments. 3. Destination Use/ Entertainment Venue A variation of implementation of the existing General Plan would be to encourage the establishment of an Entertainment/Destination Center capitalizing on the Village's proximity to the ocean and harbor and existing day time visitor -serving uses such as the Fun Zone, ferry, pier, restaurants, live theatre venue and shops. Additional development would focus on higher quality visitor -serving uses such as restaurants and specialty shops. This option would provide the opportunity to enhance the current visitor -serving character of Balboa Village with an emphasis on replacing underperforming uses with quality retail and supporting uses directed towards daytime visitors. With a renewed focus as a Destination Center, the area could implement shared 7 parking with shuttle service and/or pedestrian and bikeway improvements to facilitate visitor access and circulation. Similar to the BPPAC option, this option supports Economic Development Guiding Principles seeking fiscal balance, revitalization, retail sales optimization, local economic vitality, and expansion of visitor -serving uses. It supports the Community Character Guiding Principle of preserving community heritage and enhancing the area's unique character. The Mobility Guiding Principles to adopt parking and congestion management strategies and alternative transportation modes would also be met if parking and shuttle improvements were implemented. 4. Expand Visitor-Servine Uses (Hotels, Inns, and Bed & Breakfasts) Another variation on the Destination Use option is to focus development on the expansion of visitor -serving uses, specifically hotels and similar uses. Hotels, inns and bed & breakfast establishments could be targeted for development in Balboa Village, again capitalizing on its proximity to the ocean and harbor and the existence of day time visitor -serving uses such as the Fun Zone, ferry, pier, restaurants and shops. This option supports Economic Development Guiding Principles encouraging fiscal balance, retail sales optimization, local economic vitality, and expansion of visitor -serving uses. Differentiating this option from the Destination Use scenario, an additional benefit to the community would result from the increase in transient occupancy tax (TOT) applied to overnight visitors. The Community Character Guiding Principles of preserving the community's heritage as a tourist destination and enhancing Balboa Village's unique character are supported by this option. Mobility Guiding Principles and Workforce and Special Needs Housing Guiding Principle would not explicitly be furthered by this option. The Environmental Conservation Guiding Principle to protect public viewsheds could potentially be supported by thoughtful siting of visitor -serving developments. 5. Consolidate Commercial Uses with Residential West of Adams This option pertains to the area west of Adams Street. The current uses north and south of Balboa Blvd. are a mix of commercial and residential uses. These commercial uses are outside the core Village and tend to be marginal. These may not be the most compatible uses for this area as adjacent commercial and housing uses that were not planned for may experience operational conflicts such as noise, garbage and parking competition. The option proposes to replace commercial uses with residential uses potentially supporting the Workforce and Special Needs Housing Guiding Principle to maintain quality residential development, and rezone under- performing commercial uses for housing uses. It also seeks to consolidate commercial uses, minimizing underperforming uses and creating a synergy of supporting uses, supporting Economic Development Guiding Principles of fiscal viability, market demand, and revitalization. This option also serves the Community Character Guiding Principles to maintain and enhance the beneficial and unique neighborhood character. 0 Beach General Plan FORMULATION GPAC REVIEW • May 24, 2004 E►P Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. The first step will be the identification of possible land use alternatives for the 12 subareas that have been selected by the General Plan Update Committee (GPUC). Following identification, the consultant team will evaluate the comparative traffic, fiscal, and environmental impacts of these options. These Geographic Subarea Discussion Papers are intended to serve as a framework for the GPAC's discussion in defining the land use alternatives for each of the following geographic subareas within Newport Beach: Banning Ranch, Airport Business Area, Lido Marina Village/Civic Center, Balboa Village, Cannery Village/McFadden Square, Corona del Mar, West Newport Coast Highway Corridor, West Newport Residential, Mariner's Mile, West Newport Industrial, Newport Center/Fashion Island, and Old Newport Boulevard. It is understood that these encompass areas in which change is likely and/or policy intervention is necessary. Other areas of the City will be addressed by "global" policies that will be subsequently defined during the planning process. These papers present an overview of existing conditions, as well as a summary of key planning issues/findings affecting each subarea's land uses, as identified through the Visioning Process and the analyses in the Technical Background Report, and raised by City staff. Guiding Principles that pertain to or affect land use development of the subarea are also provided. Lastly, initial land use options for each subarea are identified for GPAC to consider, and to stimulate their identification of additional land use alternatives. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Preferred Land Use Plan will be selected in October. Description of Cannery Village Cannery Village is the historic center of the City's commercial fishing and boating industry and has a mix of small shops, art galleries, and professional offices and service establishments. This area is bounded by 32nd Street to the north, Balboa Boulevard to the west, Lido Channel to the east, and 26th Street to the south. Figure 1-1 details land uses in the Cannery Village area. The area is primarily commercial (71.3 percent of the subarea) with a variety of neighborhood - serving commercial and specialty shops. Residential uses comprise 15.4 percent of the area, these are mostly multi -family and/or attached homes. A new loft -style development has recently been constructed. Additionally, older developments in the area include some single-family residential units combined with commercial uses on single lots. Specialty retail in the area includes home furnishings and art galleries, and architectural and design offices. There are also professional offices, located mostly in the northern portion of the area. Community -related commercial uses, such as Albertson's grocery and gyms, are located in the area. Dine -in and fast food restaurants account for more than 7.0 percent of the land area. Marine -related commercial (boat sales) and marine -related industrial uses (boat repair) can also be found between Newport Boulevard and the Lido Channel, representing 2.2 percent and 1.5 percent of the area respectively. Religious institutions are located in the northwest portion of the area and represent 4.8 percent of land uses. Public parking is available on several small lots throughout the area, accounting for 3.1 percent of land uses. Vacant lots or buildings account for less than 2.0 percent of the area. This area is included within the Cannery Village/McFadden Square Specific Plan. Description of McFadden Square McFadden Square lies south of Cannery Village, and is bounded by 26th Street to the north, 19th Street to the south, and Ocean Front and the Pacific Ocean to the west. It features commercial operations from restaurants, beach hotels, dory fishing boats, and tourist -oriented shops to service operations and facilities that serve the Peninsula. An important feature of this area includes the Newport Pier, which attracts many visitors. Figure 1-2 details land uses in the study area. The McFadden Square area is known for its marine -related industries such as shipbuilding and repair facilities on the harbor, some of which have been in continuous operation for over fifty years. Commercial land uses are largely concentrated in the commercial strips of Balboa and Newport Boulevards, with residential along Ocean Front. This area is a combination of residential (39.6 percent) and commercial (27.8 percent) uses, with multi -tenant and visitor -serving commercial uses, such as t-shirt shops, and rental shops. Dine -in and fast food restaurants account for 7.0 percent of the area. There are also many bars and clubs in the area with some featuring live music, especially along Ocean Front. The Newport Pier E extends from McFadden Square, and there are many nearby recreational uses (bike rentals, surf shops, etc.). Other uses in the area include industrial and public uses. There are a number of marine -related industrial uses (boat storage, restoration and repair, etc.) between Newport Boulevard and the West Lido Channel. Balboa Community Center is located just south of the pier and accounts for 7.0 percent of the land uses within the area. Public parking (22.1 percent of area land use) is available in two lots, of which the easternmost one is separated from commercial uses by residential uses. These lots primarily serve the beach users, tourists, and the restaurant patrons. Much of the McFadden Square area is pedestrian -oriented, with storefronts facing the street, the presence of signage at a pedestrian scale, outdoor furniture, and landscaping to provide a pleasant environment. However, certain areas present difficulty for pedestrian street crossing. Specifically the intersection of Newport and Balboa Boulevards, known as "Mixmaster" is one such crossing as the roadway configuration at this location allows traffic flow from different directions and the street is wide. Improvements at this intersection are currently under construction. Issues The following issues/findings were identified for Cannery Village and McFadden Square through the Visioning Process, Technical Background Report (TBR) analyses, and by City staff. VISIONING PROCESS Cannery Village and McFadden Square 1. Both Cannery Village and McFadden Square need continuing revitalization. The City should be proactive in creating a revitalization vision to help guide future private development. 3 2. Peak season traffic volumes have been raised as an issue, especially on the Balboa Peninsula. 3. Mixed -use represents an opportunity for development. 4. Parking in the coastal areas such as Balboa Peninsula is generally viewed as inadequate. McFadden Square 5. Rezoning of underutilized commercial lands for residential or mixed -use development should be considered, particularly in McFadden Square. TECHNICAL BACKGRO uim REPORT Cannery Village and McFadden Square 1. Roadway volume traffic count data indicates that summer weekend daily traffic volumes increase by more than 30% on Newport Boulevard south of Coast Highway. Roadway volume traffic count data also indicates that summer weekday daily traffic volumes increased based on data collected on Newport Boulevard in front of City Hall. The increases on mid -week weekdays (Tuesday through Thursday) compared to shoulder season weekday conditions are approximately half of the increase observed for summer weekend day. Summer traffic volume increases on Mondays and Fridays, however, are very similar to the summer weekend day increases. Cannery Village 2. New mixed -use developments need to consider building design, type of commercial uses, and compatibility of residential uses. 3. Multiple ownership of individual parcels inhibits the area's cohesive and integrated development. CITYSTAFF Cannery Village 1. In general, the lot sizes are small and streets are narrow within the area, which preclude any large-scale, significant development. 2. Incompatibility issues associated with noise and parking occur in areas where residential and commercial uses interface. 3. The feeling of Old Newport's historic marine uses provides distinct character to the area that can be capitalized on in the future. 4. Mixed -use developments located away from the commercial corridor do not appear to be successful as the ground floor of these structures does not have active retail uses. 5. Due to the age of some buildings, hazardous materials from marine -related uses could be present and may require remediation prior to redevelopment. McFadden Square 6. The McFadden Square area contains some historic structures in poor condition that can be enhanced through establishing a historic district and by offering incentives for reuse. 4 7. Vehicular access to the area, particularly on the bay side, is somewhat limited. 8. Existing retail and beach uses are successful and the area also has a strong entertainment component that can be capitalized upon. Guiding Principles The following guiding principles are from the Economic Development, Community Character, Environmental Conservation, Affordable Housing, and Mobility Discussion Papers, and are pertinent to land use development within the Cannery Village and McFadden Square Subareas. ECONOMICDEVELOPMENT 1. General Plan policies will maintain the City's positive fiscal balance. 2. General Plan land use policies will facilitate an economically viable concentration of marine uses. 3. General Plan policies will encourage the revitalization of older commercial areas. 4. The General Plan should encourage mixed -use development. COMMUNITY CHARACTER 2. Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. 3. Future development shall consider the scale, urban form, design, character and quality of the community. 5. Preserve the community's heritage. ENVIRONMENTAL CONSERVATION 4. Minimize air quality degradation through land use practices and circulation improvements that reduce reliance on the automobile. 6. Minimize the exposure of people to noise hazards. 7. Minimize intrusion from light sources. WORKFORCE AND SPECIAL NEEDSHOUSINO 1. Promote a balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments including very low, low, moderate, and upper income households. 3. Consider mixed -use development as a means to create additional housing opportunities. 4. Consider the rezoning of under -performing commercial areas to allow residential or mixed -use development. MOBILITY 1. Establish General Plan land uses and density/intensity limits that will have less impact on peak hour traffic. 7. Improve parking supply and use of existing resources, and reduce congestion in older tourist areas. 5 Potential Land Use Alternatives for Discussion DEVELOPMENT OPTIONS FOR CANNERY VILLAGE The following development options are suggested for GPAC's consideration for the Cannery Village area. These options are not mutually exclusive and could be implemented in combination with one another and with other alternatives developed by GPAC. The exact siting of these options will also be determined by GPAC. 1. Cannery Villaee/McFadden Square Specific Plan Implementation of the Specific Plan would allow for the following uses within Cannery Village: specialty retail uses from 29`h Street to 32nd Street, bounded by Newport Boulevard and Villa Way; residential uses (R2) along Balboa Boulevard where existing multi -family residential is currently located; recreational and marine commercial uses on the east side of Lafayette Avenue; and retail and service commercial uses in the remainder of the area. The intent of the Specific Plan is to enable Cannery Village to serve as an active pedestrian -oriented specialty retail area with visitor -serving, neighborhood commercial, and marine -related uses. The primary focus of this area would be the establishment of a specialty retail district that would be served by a central public parking facility on 30d' Street. Single- and multi -family residential uses are allowed on the upper floors of all commercial uses, when the first floor is occupied by a permitted use. The recreational and marine commercial designation encourages the continuation of marine oriented uses along the channel. Specific Plan implementation could involve reuse of existing buildings or new structures. Implementation of the Cannery Village/McFadden Square Specific Plan would convert single- family and multi -family residential uses to commercial, while allowing residential uses to be incorporated on the upper floors of parcels zoned for commercial uses. Additionally, public/semi public uses in the northeastern portion of Cannery Village would allow for specialty retail uses. This may be consistent with Economic Development Guiding Principles (EDGP) of maintaining the City's positive fiscal balance, and would fully support the guiding principles of revitalizing the area and including mixed -use developments. The recreational and marine commercial designation encourages the continuation of marine oriented uses, which would be in support of the EDGP of facilitating an economically viable concentration of marine uses. Achieving the Community Character Guiding Principle (CCGP) of maintaining the unique character, scale, urban form or design of Cannery Village would depend on the design of the new buildings and the density and use of the area. If mixed -use projects containing residential and retail are implemented, reduced reliance on the automobile could occur, in support of the Environmental Conservation Guiding Principles (ECGP) and the Mobility Guiding Principles (MGP). However, the commercial uses could expose the residents to additional noise or light sources, which would conflict with the ECGP. Lastly, if additional housing opportunities are provided in the commercial areas, which is allowed under the Specific Plan, this would be in support of the Workforce and Special Needs Housing Guiding Principles (WSNHGP). 6 2. Mixed -Use Development This option would allow for the revitalization and conversion of existing commercial and industrial buildings to mixed -use developments consisting of residential and retail uses. New structures containing this type of development could also occur. This option is intended to intensify the number of residents in the area to help support the commercial uses in Cannery Village, and the uses located in the Lido Village and Civic Center area. These types of mixed -use developments would be compatible with existing uses, and could be sited in a variety of locations within the area. Implementation of this option would fully support the EDGP of encouraging revitalization of older commercial areas and mixed -use developments. However, this option may not fully meet the EDGP of maintaining the City's positive fiscal balance if existing commercial and industrial uses are converted for residential uses. Achieving the CCGP of maintaining and enhancing the unique character of the Cannery Village area and preserving the community's heritage would depend on the design of new buildings and the density and use of this area. Implementation of this alternative would result in revitalization of the area, which would improve the quality of the community. However, mixed -use developments could create noise conflicts between residential and commercial uses. Addition of mixed -use developments can encourage people to work and live within the same area, thus minimizing the need to drive an automobile. Implementation of this option could minimize air quality degradation and peak hour traffic, both of which are in support of the ECGP and the MGP. Lastly, the conversion of some commercial or industrial use to accommodate residents would create additional housing opportunities within Newport Beach, which is in support of the WSNHGP. 3. Artist Lofts, Live/Work Developments Under this option, mixed -use developments consisting of artist lofts and/or live/work developments would be encouraged as part of the revitalization strategy for Cannery Village. Existing residential, commercial, and industrial buildings can be renovated to include these types of projects, or new structures can be implemented. With the recently implemented loft -style developments and the presence of art galleries in the area, the addition of artist lofts would complement the existing uses. The ground floor could accommodate retail uses, such as gallery space for the artists. Live/work developments that could accommodate offices and residences in the same space for architects and designers would also be compatible with existing uses. Similar to the development option described above, implementation of artist lofts and live/work developments would fully support the EDGP of encouraging revitalization of older commercial areas and mixed -use developments. However, these types of developments may not fully meet the EDGP of maintaining the City's fiscal balance if existing commercial or industrial uses are converted to residential uses. Renovation and reuse of existing buildings, as well as new structures, could maintain and enhance the unique character, and the scale and design of the existing buildings within the City, as well as preserving the community's heritage. Implementation of artist lofts and live/work situations would be in support of the CCGP. With these types of developments, people such as architects, designers, or artists of the area could 7 work and live in the same space, which can reduce vehicle trips. Thus, this option would support ECGP and MGP. Implementation of this option would also support WSNHGP by providing additional housing opportunities. 4. Open Space The island area bounded by 30a` Street on the north, Newport Boulevard on the west and east, and 26a` Street to the south could be converted to open space such as parkland under this option. Currently, this area contains commercial uses, some of which are in need of revitalization. The City would have to purchase this land and relocate or purchase the businesses to convert it to recreational space. Implementation of this development option would create an aesthetically pleasing space, and provide visual relief from the surrounding urban environment. Conversion of this area would not meet EDGP as recreational use would not generate revenues, and require City funds to maintain the grounds. Additionally, this option would not be in support of WSNHGP as no new housing opportunities would be created. However, conversion of existing commercial uses to open space would be consistent with CCGP, ECGP, and MGP. 5. Shuttle Staeine Area A shuttle to transport beachgoers from the public parking lots could be implemented on the Balboa Peninsula. A staging area for the beach shuttle would be needed and could be incorporated into the Cannery Village area due to its proximity to the ocean. Bounded by 30u' Street on the north, Newport Boulevard on the west and east, and 26a Street on the south, the island area can accommodate the shuttle staging area. The staging area would be located across the street from public parking lots, and be able to serve tourists wanting to visit the City beaches located throughout the Peninsula. As previously discussed, this area presently contains commercial uses that are in need of revitalization. Implementation of this development option would require the City to purchase this land and convert the commercial structures for this use. A shuttle staging area would not support the EDGP since a loss of revenues from the commercial uses and possibly additional City funding to maintain and operate the shuttle would occur under this option. This option would also not support the WSNHGP because no additional housing would be provided. However, this option would be in support of the MGP by minimizing traffic in the Cannery Village area, and the rest of the Balboa Peninsula. Additionally, a shuttle staging area would allow the operation of the shuttle, which would help minimize air quality degradation in the area, consistent with ECGP. DEVELOPMENT OPTIONS FOR MCFADDENSQUARE The following development options are suggested for GPAC consideration of the McFadden Square Subarea. These options are not mutually exclusive and could be implemented in combination with one another and with other alternatives developed by GPAC. 1. Cannery Villaze/McFadden Square Specific Plan In general, under the Specific Plan, the following land uses would be allowed within the McFadden Square area: recreational and marine commercial uses along the Newport Channel; retail service commercial uses between Ocean Front and Balboa Boulevard, as well as along Balboa Boulevard; and single-family and multi -family residential uses along 2e and 24 Streets. The recreational and marine commercial designation encourages the continuation of marine oriented uses. Single- and multi -family uses are allowed over commercial uses provided that a permitted use is on the ground floor. Specific Plan implementation could involve reuse of existing structures and construction of new ones. Implementation of the Cannery Village/McFadden Square Specific Plan would convert single- family residential uses to commercial, while allowing residential uses to be incorporated on the upper floors of parcels zoned for commercial uses. This may be consistent with EDGP of maintaining the City's positive fiscal balance, and would fully support the guiding principles of revitalizing the area and including mixed -use developments. The recreational and marine commercial designation encourages the continuation of marine oriented uses, which would be in support of the EDGP of facilitating an economically viable concentration of marine uses. With the conversion of uses in the area and implementation of new structures, the character of McFadden Square could be maintained or enhanced. This may be consistent with the CCGP. If mixed -use projects containing residential and retail is implemented, reduced reliance on the automobile could occur, in support of the ECGP and the MGP. However, the commercial uses could expose the residents to additional noise or light sources, which would conflict with the ECGP. Lastly, if affordable housing or additional housing opportunities are provided in the commercial areas, which is allowed under the Specific Plan, this would be in support of the WSNHGP. 2. Mixed -Use Development Mixed -use retail and residential uses would be encouraged in the eastern portion of the McFadden Square area, from 26`h Street to The Arcade, east of Newport Boulevard. Reuse of existing commercial and industrial structures, as well as new mixed -use developments could continue to accommodate ground floor retail uses, such as outdoor restaurants that could capitalize on its proximity to the Newport Channel. Multi -family residential uses would be encouraged on the upper floors. The retail uses could serve the residents of the building, while attracting visitors to the area. By implementing mixed -use developments in place of underutilized commercial structures, the City's fiscal balance will be improved, and the area would be revitalized, which would be in support of the EDGP. Additionally, implementation of this option has the potential to generate less vehicle trips since residents could walk to the services in the area, which would support some MGP and ECGP. With high -density housing, there is an opportunity for the provision of affordable housing, which would be consistent with WSNHGP. Achieving the CCGP of maintaining the unique character, scale, urban form or design of McFadden Square would depend on the design of the new buildings and the density and use of this area. Further, mixed -use developments may expose the residents to increased levels of ambient noise and light. This development option would not fully support the ECGP. n 3. Marine -Related Uses Implementation of this option would allow a concentration of marine -related uses in the northeast portion of McFadden Square, bounded by 26d' Street, Newport Boulevard, the Newport Channel, and 215` Street. Currently, this area contains a vacant lot, restaurants, commercial, and marine industrial uses that are in need of revitalization. Reuse of an existing commercial building or a new structure could accommodate the marine -related uses. Conversion of this area to marine -related industry would be compatible with the existing shipbuilding, boat storage, and repair facilities on the harbor. A concentration of marine -related uses would meet the EDGP by contributing positively to the City's fiscal balance, facilitating an economically viable concentration of marine uses, and revitalizing the area. However, revitalizing the area may generate more traffic, which would not be consistent with the ECGP or MGP. Through the conversion of commercial uses to marine - related industry and depending on the design of new structures, the character of the area could be changed, and the CCGP may not be met. Lastly, AFGP would not be achieved as no housing opportunities would be provided under this option. 4. Pedestrian Promenade The eastern portion of the McFadden Square area located along the Newport Channel would be improved under this option to create a pedestrian promenade. Improvements such as the addition of outdoor seating, landscaping, and lighting would complement the restaurants and commercial uses along the harbor. Other streetscape improvements that include landscaping, lighting, and different types of paving material along 315` Street to the ocean could also occur under this development option. Thus, the pedestrian promenade would connect The Arcade and provide pedestrian linkages from the Newport Channel to the ocean and along Ocean Front. Through the enhancement of the pedestrian -oriented nature of the area and addition of the promenade, the character of the area will be improved and more visitors will be attracted to McFadden Square. This would be in support of both EDGP and CCGP. More visitors to the area would increase vehicle trips and exacerbate the parking problem in the area, which would not support ECGP and MGP. As no housing would be provided, implementation of a pedestrian promenade would not be consistent with WSNHGP. 5. Streetscape Improvements Implementation of streetscape improvements to enhance the pedestrian -oriented feel could be part of the revitalization effort for the McFadden Square area. Streetscape improvements appropriate for the area include additional lighting, landscaping, street furniture, and paving along Balboa and Newport Boulevards in order to help unify the area and create a more pleasant environment for the pedestrian. Additionally, signs identifying McFadden Square and way - finding signs to the pier, ocean, and Newport Channel could be implemented. Maintenance and improvement of the existing alleyways located between 32"d and 21s` Streets would be encouraged under this development option to enhance safety. Development of this option would enhance and maintain the existing character of the community, and encourage more pedestrian -oriented activities, in support of the CCGP and 10 ECGP. Although City funds would be needed to implement streetscape improvements, the improvements could make businesses more profitable, which would support EDGP. Under this option, no housing would be provided, and the WSNHGP would not be achieved. Additional traffic would not be generated, and have no effect on the MGP. Citv ofNewnort Beach General Plan FORMULATION GPAC Review • June 21, 2004 EIP Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. The first step will be the identification of possible land use alternatives for the 12 subareas that have been selected by the General Plan Update Committee (GPUC). Following identification, the consultant team will evaluate the comparative traffic, fiscal, and environmental impacts of these options. These Geographic Subarea Discussion Papers are intended to serve as a framework for the GPAC's discussion in defining the land use alternatives for each of the following geographic subareas within Newport Beach: Banning Ranch, Airport Business Area, Lido Marina Village/Civic Center, Balboa Village, Cannery Village/McFadden Square, Corona del Mar, West Newport Coast Highway Corridor, West Newport Residential, Mariner's Mile, West Newport Industrial, Newport Center/ Fashion Island, and Old Newport Boulevard. It is understood that these encompass areas in which change is likely and/or policy intervention is necessary. Other areas of the City will be addressed by "global" policies that will be subsequently defined during the planning process. These papers present an overview of existing conditions, as well as a summary of key planning issues/findings affecting each subarea's land uses, as identified through the Visioning Process and the analyses in the Technical Background Report, and raised by City staff. Guiding Principles that pertain to or affect land use development of the subarea are also provided. Lastly, initial land use options for each subarea are identified for GPAC to consider, and to stimulate their identification of additional land use alternatives. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Preferred Land Use Plan will be selected in October. Description of Corona del Mar The Corona del Mar planning area is located along Pacific Coast Highway from Avocado Avenue to Hazel Drive. Figure 6-1 shows the regional location of the Corona del Mar area. Commercial land uses front Coast Highway with residential land uses directly to the east and west of the commercial uses. This area is primarily commercial (78.6 percent), with a mix of neighborhood -serving commercial (approximately 10.0 percent) and specialty shops (6.0 1 percent). Figure 6.1 shows the regional setting for the area. Primary retail uses include restaurants (more than 8.0 percent), home furnishings, and other specialty shops ranging from apparel to architectural design services. Many commercial uses (about 40.2 percent of the area) are located in multi -tenant buildings with retail on the first floor of buildings and professional services located on the second floor. While there were a few commercial vacancies at the time of the land use survey, the most prominent was that of the Port Theatre located at the corner of Coast Highway and Heliotrope. Sherman Library and Gardens (about 9.0 percent of the area) is a private facility and research library open to the public. There is an assisted -living residential complex representing 7.4 percent of land uses in the area. Corona del Mar is pedestrian -oriented with a dense mix of commercial uses, streetscape amenities, street medians, and a limited number of signalized crosswalks. The Corona del Mar Business Improvement District (BID) was established in 1996 to, enhance the shopping district of Corona del Mar to create an exciting, pedestrian and resident friendly experience. In 1999, the BID developed the "Vision 2004" Plan to implement community improvements for Corona del Mar. The plan envisions the creation of a linear park -like environment along Coast Highway from Avocado Street to Seaward Drive. The plan also calls for sidewalk landscaping, street furniture, street lighting fixtures, pedestrian activated crosswalks, parking lanes and various other improvements. A Specific Plan has also been contemplated for this area, but one has not been developed. COSTA MESA r. . .yrMj .cb pyi IRVINE o n j i w Figure 6.1 Regional Location of Corona del Mar Specialty retail in Corona del Mar Corona del Mar Issues Multi tenant commercial uses W The following issues were identified for the Corona del Mar area in the Visioning Process, findings of the Technical Background Report (TBR), and input by staff. VISIONING PROCESS 1. The business community and residents have expressed a desire to improve or enhance Corona del Mar's village character through installation of streetscape amenities or other improvements. 2. Traffic in Corona del Mar should be decreased and the role of automobiles should be de- emphasized on Coast Highway, enhanced accessibility for other modes (e.g. pedestrian access) should be provided. 3. Pedestrian access is vital to encouraging alternative travel modes. 4. Protection of Corona del Maras one of the City's historic villages should be addressed to preserve its unique character. The City may address these issues by limiting the permitted uses, establishing design guidelines, and establishing a design review process. TECHNICAL BACKGROUND REPORT 1. Programs have been developed for the improvement of several community areas, including the Corona del Mar Vision 2004 Plan. 2. The existing General Plan identifies Corona del Mar as a Specific Plan area. 3. Traffic congestion on Pacific Coast Highway may conflict with the intended pedestrian nature of the Corona del Mar area. 4. Parking deficiencies present conflicts with adjacent residential neighborhoods as customers encroach upon street parking in the adjoining residential area. 5. Corona del Mar has the broadest base of local -serving retailers among the City's coastal commercial areas. 6. Some older residential areas (e.g., Corona del Mar) have been developed with two housing units built on three legal lots. Legally, these homes could be demolished and replaced with housing built on each legal lot of record, increasing overall development densities. 7. Corona del Mar contains dense development with older structures that may not contain fire -rated building materials or be fitted with fire sprinklers, some of which are near wildland fire hazard areas. Thus, these areas may present a high -fire hazard, and be subject to rehabilitation and/or additional regulations that increase fire -resistance in these areas. 8. Areas of Crystal Cove State Beach and Corona del Mar have been designated a Marine Life Refuge and an Area of Special Biological Significance. CITYSTAFF 1. Generally, commercial uses are located on shallow parcels that directly abut residential uses in Corona del Mar, which may then be subjected to impacts associated with noise, hours of operation, nuisance odors, and smoke. 2. Many commercial parcels do not provide code -required parking and parking is not well distributed throughout the area. 3. Visibility of and access to public parking areas are limited. 4. Commercial uses are a vital and strong component in Corona del Mar that contribute to a sense of community. 5. Corona del Mar has often served as an incubator for businesses that grow and move on to Fashion Island. 6. Current commercial building scale is complimentary to residential uses and generally establishes good street presence. 7. Buildings are continually maintained and upgraded, there is a pride in physical appearance. 8. The entire length of Corona del Mar maybe too long to support a continuous vital pedestrian -district. 9. Pedestrian crossing of Coast Highway is impacted by its heavy traffic volumes and congestion and limited signalized crossings. Guiding Principles The following guiding principles from the Economic Development, Community Character, Workforce and Special Needs Housing, Mobility Discussion and Environmental Conservation, Papers are pertinent to land use development within the Corona del Mar area. (Note: numbers correspond to listing in Guiding Principles document.) ECONOMICDEvELOPMENT 1. General Plan policies will maintain the City's positive fiscal balance. 5. General Plan policies will support City efforts to optimize retail sales capture in the community. 6. The quantity of land designated for commercial use and the development standards that regulate such uses shall reflect the market support that can reasonably be anticipated during the General Plan time horizon. 4 7. General Plan policies will facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. 8. Additional development entitlement needs to demonstrate significant fiscal, economic or other community benefit. 9. General Plan policies will protect the high value of residential property. 10. General Plan policies shall prepare the City to capitalize on market and demographic changes and opportunities that emerge in key economic centers of the community. COMMUNITY CHARACTER 2. Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. 3. Future development shall consider the scale, urban form, design, character and quality of the community. 5. Preserve the community's heritage. WORKFORCE AND SPECIAL NEEDSHOUSINC 5. General Plan policies shall protect the high value of residential property. MOBILITY 1. Establish General Plan land uses and density/intensity limits that will have less impact on peak hour traffic. 3. Regional traffic will be included in the analysis of land use alternatives, but such traffic should not be the sole reason for rejecting a land use alternative that would have net benefits to Newport Beach. 4. In selecting land use and circulation system alternatives, weight will be given to traffic congestion that is ongoing as well as to congestion that is limited to a few hours of the day or a few months of the year. 5. The community will accept additional congestion when it chooses to maintain the current urban form/community character by limiting roadway widening or other circulation system improvements. 7. Improve parking supply and use of existing resources, and reduce congestion in tourist areas. 10. Plan the arterial roadway system to accommodate projected traffic at a level of service acceptable to the community while minimizing neighborhood intrusion. ENVIRONMENTAL CONSERVATION 3. Minimize air quality degradation through land use practices and circulation improvements that reduce reliance on the automobile. 6. Minimize the exposure of people to noise hazards. 7. Minimize intrusion from light sources. 5 Potential Land Use Scenarios for Discussion For Corona del Mar, several preliminary development scenarios have been identified, as discussed below. The land use pattern in Corona del Mar is well established and is not likely to change substantially. The suggestions for this area are to improve function and aesthetics. These improvements are not mutually exclusive and could be implemented in combination with one another and/or with other alternatives developed by GPAC. 1. Streetscaye Improvements (Vision 2004 Plan) The Corona del Mar Business Improvement District (CdMBID) developed a plan to identify the future vision and character of Corona del Mar. The plan recommends streetscape beautification and wayfinding improvements for the length of Coast Highway in Corona del Mar. The plan offers suggestions for unifying the village's design theme and creating a more pleasant pedestrian environment with trees and landscaping, and pedestrian amenities such as benches, lighting, and trash receptacles. Wayfinding signage identifying Corona del Mar and directing residents and visitors to the area and to parking locations are also included, along with suggestions for special paving treatments for pedestrian crossings. The recommended improvements include entryway monuments establishing the entrance of the village to welcome residents and visitors. Another component of the plan includes guidelines for commercial signage that are scaled and oriented to pedestrians rather than automobiles. Construction of these improvements would enhance and maintain the beneficial and unique character of the village, and would preserve the community's heritage in support of Community Character Guiding Principles. As a specialty retail district, streetscape improvements would support Economic Development Guiding Principles to optimize retail sales capture, to develop and retain businesses that strengthen the local economy, and to capitalize on key economic centers of the community. Although City funds might be needed to implement streetscape improvements, the improvements could make businesses more profitable, which would support overall Economic Development Guiding Principles. 2. Pedestrian Oriented District This concept proposes to build on the components of the streetscape improvements. Such improvements could be combined with additional efforts to create a pedestrian environment. A pedestrian oriented district could be created by restricting uses along Coast Hwy to businesses with storefronts that "animate" the district, such as retail and dining establishments. For instance restricting future office uses to second stories would provide greater opportunities for pedestrian - oriented uses at the street level. Design and development standards could also be employed to identify appropriate building mass and scale consistent with existing building heights (one to three story), and prohibit windowless facades and blank building facades. Design and architectural guidelines could recommend building articulation and detailing to enhance the pedestrian observer's experience. To minimize conflicts with neighboring residential uses, performance standards could be set to limit hours of operations for new businesses. Similar to option 1, this concept is consistent with Economic Development and Community Character Principles. It also supports the Community Character Guiding Principle to consider scale, urban form, design, character and quality of the existing community. Additionally it supports the ED GP to protect the high value of residential property. 3. Parkine District Parking deficiencies have been identified in Corona del Mar, only two public parking areas exist, one at Bayside Park and the other at Old School Park. Possible solutions to increase parking supply include identifying specific areas of parking deficiencies and creating a parking overlay zone or a parking district. Parking requirements could be differentiated within a parking overlay zone, allowing reduced parking for businesses that would rely on pooled parking in a central location. This might require the establishment of a parking district where the property owners within the district could be assessed fees to pay for parking. Pooled business parking in a remote structure for longer term visitors to the area in combination with meters for short term parking could address the area's deficiency. Coupled with a pedestrian streetscape this option could provide a more pleasant environment. A district might also benefit from the City's acquisition of strategic lots to develop a parking structure. Shared parking could also be implemented in limited locations such as the Sherman Library parking lot. Parking options support the Economic Development principles to optimize retail sales capture and facilitate development to strengthen the local economy by providing enhanced parking for a retail district that has underserved parking. The option is consistent with the Mobility Guiding Principle to improve the parking supply. The option has the potential to support the Community Character Guiding Principle to,maintain and enhance the business district and neighborhoods by adequately providing parking and diminishing negative effects of customer parking in residential neighborhoods. 4. Neiehborhood Traffic Calmine Traffic and parking intrusion into residential neighborhoods can be addressed with a neighborhood traffic calming plan. Components of this plan can include limiting through traffic for certain peak hours, establishing permit parking.in residential areas with direct access to Coast Hwy, and installation of curb bulb outs to require vehicles to decrease speeds when making turns onto residential streets from Coast Hwy. A neighborhood transportation management program (NTMP), developed in collaboration with affected neighborhoods, could identify appropriate strategies such as speed humps, street narrowing, medians, traffic circles, and on -street parking, in addition to the strategies mentioned previously to create a comprehensive approach to traffic calming in particular. This option supports the Mobility Guiding Principle to minimize neighborhood intrusion. It is consistent with the Community Character Guiding Principle to maintain and enhance the character of neighborhoods. The option also supports the Economic Development and Workforce and Special Needs Housing Guiding Principles to protect the high value of residential property. 7 'Newport Beach General Plan FORMULATION GPAC REVIEW* June 21, 2004 EIP Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. The first step will be the identification of possible land use alternatives for the 12 subareas that have been selected by the General Plan Update Committee (GPUC). Following identification, the consultant team will evaluate the comparative traffic, fiscal, and environmental impacts of these options. These Geographic Subarea Discussion Papers are intended to serve as a framework for the GPAC's discussion in defining the land use alternatives for each of the following geographic subareas within Newport Beach: Banning Ranch, Airport Business Area, Lido Marina Village/Civic Center, Balboa Village, Cannery Village/McFadden Square, Corona del Mar, West Newport Coast Highway Corridor, West Newport Residential, Mariner's Mile, West Newport Industrial, Newport Center/Fashion Island, and Old Newport Boulevard. It is understood that these encompass areas in which change is likely and/or policy intervention is necessary. Other areas of the City will be addressed by "global" policies that will be subsequently defined during the planning process. These papers present an overview of existing conditions, as well as a summary of key planning issues/findings affecting each subarea's land uses, as identified through the Visioning Process and the analyses in the Technical Background Report, and raised by City staff. Guiding Principles that pertain to or affect land use development of the subarea are also provided. Lastly, initial land use options for each subarea are identified for GPAC to consider, and to stimulate their identification of additional land use alternatives. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Preferred Land Use Plan will be selected in October. This document addresses two related subareas, the West Newport Coast highway Corridor, which is primarily commercial and West Newport Residential, the adjoining residential neighborhoods. The regional location of the two subareas is shown in Figure 7-1. Description of West Newport Coast Highway Corridor West Newport Coast Highway Corridor is located along Coast Hwy, which runs northwest to southeast, from Summit Street to just past 60th Street. This is a primarily commercial area serving the Newport Shores residential neighborhood closest to Banning Ranch, the West Newport Residential neighborhood south of Coast Hwy, and beach visitors. The Corridor consists of commercial uses along the north side of Coast Hwy, at about one block in depth on average. Residential uses are interspersed between commercial uses, with approximately half of those being multi -family residential and half being mobile homes. A portion of the mobile homes are situated along Semeniuk Slough and the Army Corps restored wetlands, while a number of the single-family homes outside the area are also located along the Slough. The Corridor "commercial strip" serves residential neighborhoods as well as beach visitors. Primary commercial uses include community -related retail such as a dry cleaners, liquor store, deli, and grocery. A few hotels and motels are interspersed among the commercial uses. There are also a number of dine -in, family -style restaurants, as well as a handful of fast food establishments. Architectural styles in the area are varied. Newer development includes recently upgraded hotels, while older commercial development appears to have been built in the 1960's to 1980's. The commercial area is mostly highway -oriented, with parking lots fronting many of the commercial uses. Many of these parking lots are of substandard size and configuration due to past widening of West Coast Highway. This area is governed by an adopted Specific Plan, which is intended to improve the orderly development of the area and provide service commercial uses for nearby residences. Description of West Newport Residential The West Newport Residential area is located along Seashore Drive between Coast Hwy and Ocean Front West, which borders the area on the south, beyond which is the beach and includes residences up to Marcus Avenue at the north end. This area consists of a residential neighborhood located along the coast, from Summit Street to 32"d Street. West Newport includes both single-family and multi -family residential uses on the south side of Seashore Drive, and is about two blocks in depth for its majority. Multi -family homes and duplexes are interspersed 2 with single-family homes situated on small, compact lots. The housing units are largely occupied by renters; the area's rental rate is 69 percent. There are no sidewalks, or sidewalks on one side of the street, on roadways closest to the beach. COSTA MESA r IRVINE 6',7 , �r Figure 7-1 Regional Location,of West Newport. Coast Highway Corridor & West Newport Residential Issues The following issues/findings were identified for West Newport Coast Highway Corridor and West Newport Residential areas through the Visioning Process, Technical Background Report (TBR) analyses, and by City staff. VISIONING PROCESS Coast Hiehwav Corridor 1. Areas of the City needing revitalization include Coast Highway Corridor. The City could be proactive in creating a revitalization vision to help guide future private development. TECHNICAL BACKGROUND REPORT Coast Hiehwav Corridor 1. Multiple ownership of individual parcels inhibits the area's cohesive and integrated development. 2. Vehicular access to the commercial areas is poor as southbound access is restricted by the limited number of signalized intersections. 3. Existing commercial lots are small or undersized and some businesses are under- performing. 4. There is a lack of maintenance at the existing mobile home parks. 5. West Newport Coast Highway Corridor has been identified as a Specific Plan area in the existing land use element, and is included in the Newport Shores Specific Plan. 3 CITYSTAFF Coast I3iahwav Corridor 1. The commercial areas are characterized by limited parking and poor internal circulation. 2. Multiple ownerships of small lots inhibit commercial success in the area. 3. The current commercial uses are underperforming. The area lacks a mix of quality restaurants and retail uses. The area primarily serves beach goers. 4. Pedestrian circulation is poor due to narrow sidewalks and multiple driveways serving commercial uses on small parcels that interrupt the street frontage. 5. While the mobile home parks and manufactured housing at Flamingo Street provide options for workforce and special needs housing in the community, many of units are characterized by a lack of maintenance. West Newport Residential 1. In general, inadequate parking supply in the area results from the lack of on -site parking for some residential units, the use of garages for uses other than parking (play room, gym, storage, etc.), and demand from beach visitors. 2. A decrease in rentals to college students, particularly University of California, Irvine, may be occurring as a result of increased housing costs. 3. Rental practices have resulted in bootleg units, resulting in an increase in housing density as the amount of people per house has increased. 4. There is an unattractive appearance of some properties due to a lack of property maintenance by some owners. This is manifested in the placement of trash receptacles in open areas, unenclosed storage in outside areas, lack of landscaping, and parking of vehicles in front yard setbacks and sidewalks. 5. Traffic circulation isToor due to the one-way configuration of Seashore Drive, which splits direction at 46 Street. River Avenue has limited access from private streets Lido Sands Dr. and Caryl Ct. 6. Pedestrian circulation is poor due to narrow streets and safety is a concern, as people tend to drive fast on streets that share the roadway with a bicycle path and that lack sidewalks on both sides of the street. 7. Drainage along River Avenue is currently inadequate; a drainage assessment district is being considered for the area. 8. Street lighting is considered deficient. Guiding Principles The following guiding principles are from the Economic Development, Community Character, Environmental Conservation, Workforce and Special Needs Housing, and Mobility Discussion Papers, and are pertinent to land use development within the West Newport Coast Highway Corridor and West Newport Residential Subareas. (Note: the numbers below correspond to the Guiding Principles document). 0 ECONOMICDEVELOPMENT 1. General Plan policies will maintain the City's positive fiscal balance. 2. General Plan policies will encourage the revitalization of older commercial areas. 3. The General Plan should encourage mixed -use development. 5. The quantity of land designated for commercial use and the development standards that regulate such uses shall reflect the market support that can reasonably be anticipated during the General Plan time horizon. 6. General Plan policies will protect the high value of residential property. 10. The General Plan shall support the careful expansion of visitor -serving businesses and facilities, including hotels and meeting facilities. COMMUNITY CHARACTER 1. Protect and enhance the natural setting that contributes to the character and identity of Newport Beach and the sense of place it provides for its residents and visitors. 2. Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. 3. Future development shall consider the scale, urban form, design, character and quality of the community. ENVIRONMENTAL CONSERVATION 2. Protect and improve water quality within the bay, estuaries, tidelands, and ocean. 3. Minimize air quality degradation through land use practices and circulation improvements that reduce reliance on the automobile. 6. Minimize the exposure of people to noise hazards. 7. Minimize intrusion from light sources. WORKFORCE AND SPECIAL NEEDS SOUSING 1. Promote a balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments including very low, low, moderate, and upper income households. 2. Maintain quality residential development through the application of sound planning principles and policies that encourage the preservation, conservation and appropriate redevelopment of the City's housing stock. 3. Consider mixed -use development as a means to create additional housing opportunities. 4. Consider the rezoning of under -performing commercial areas to allow residential or mixed -use development. 5. General Plan policies shall protect the high value of residential property. MOBILITY 2. Consider the potential benefits and costs (housing, social, community character, fiscal and economic) of land use and circulation system alternatives as part of the process of adopting goals regarding acceptable levels of service for the circulation system. 5 3. Regional traffic will be included in the analysis of land use alternatives, but such traffic should not be the sole reason for rejecting a land use alternative that would have net benefits to Newport Beach. 7. Improve parking supply and use of existing resources, and reduce congestion in tourist areas. 10. Plan the arterial roadway system to accommodate projected traffic at a level of service acceptable to the community while minimizing neighborhood intrusion. Potential Land Use Alternatives for Discussion DEVELOPMENT OPTIONS FOR WEST NEWPORT COAST HIGHWAY CORRIDOR The following development options and improvements are suggested for GPAC's consideration for the West Newport Coast Highway Corridor area. These options are not mutually exclusive and could be implemented in combination with one another and/or with other alternatives developed by GPAC. 1. Implementation of Existing Newport Shores Specific Plan This option would encourage residential and commercial uses, enhanced with a landscaped sidewalk along the north portion of Coast Hwy. Under this option a portion of the commercial strip on Coast Hwy would be rezoned to a two-family district and would include a service commercial area that would provide convenience goods and services to nearby residences. Single-family and two-family residences could be built along the corridor; multi -family residential would be allowed with certain conditions of approval. A variety of commercial uses including auto and marine related retail and sales would be allowed under the Specific Plan. A landscape buffer would be installed along the north side of Coast Hwy. See Figure 7.2 for land uses allowed under this specific plan. This option potentially supports the Economic Development principles to designate commercial land for uses supported by the market, and to protect the high value of residential property if high quality residential uses are constructed. The specific plan does not address the small lot size issue, which may conflict with Economic Development principles to revitalize older commercial areas. The option potentially supports the Community Character Guiding Principle to consider the character and quality of the community by improving the quality of uses in the area along with the area's physical appearance. However, the range of commercial uses allowed under the specific plan may not be restrictive enough, allowing potentially incompatible uses to be adjacent to one another, i.e., boat sales adjacent to single-family homes; this would conflict with the Community Character Guiding Principle to maintain and enhance the beneficial and unique character of the community. The option is consistent with Workforce and Special Needs Guiding Principles to provide a variety of housing types, and to rezone under -performing commercial uses. 0 Figure 7-2 Newport Shores (Coast Highway Commercial Corridor area) Specific Plan 2. Rezone Commercial Area for Residential Use This option would allow residential uses to replace commercial uses over time. As some of the commercial uses are currently underperforming and not all properties are properly maintained, this could prompt revitalization of the area, with new, quality construction and if consistent with design standards, better architectural design. In particular, commercial uses might be replaced with lower cost housing. The long-term implication of this option would be a decrease in commercial uses in the area, with the potential that most commercial uses might eventually be completely replaced by residential uses. However, residential uses along this heavily traveled corridor might be subject to noise and pollution impacts from traffic. The option potentially supports the Economic Development Guiding Principles to designate commercial land for uses supported by the market, and to protect the high value of residential property if high quality residential uses are constructed. However, the principle to support retail sales will not be supported by the replacement of commercial uses by residential uses. The option supports the Community Character Guiding Principle to consider the character and quality of the community by improving the quality of uses in the area along with their physical appearance. The option is also consistent with Workforce and Special Needs Guiding Principles to provide a variety of housing types, and to rezone under -performing commercial uses. Unless stringent regulations for insulation from noise sources are set in place, this option could potentially conflict with the Environmental Conservation Guiding Principle to minimize noise hazard exposure. 7 3 Retain Commercial Zonine With Allowance for Residential and Mixed -Use Development This option would seek to maintain the current character of the Corridor while improving certain elements. This option would facilitate lot consolidation to better utilize larger parcels. It would allow the market to determine best uses for the area, allowing for the conversion of under- performing commercial to other more viable uses. Allowed uses would include commercial and residential uses, as well as combinations of the two, as in mixed -use developments. Mixed -use housing with retail on the ground floor might replace under -performing commercial uses and better utilize land currently zoned for commercial uses. Under this option, commercial uses could be restricted to those that are pedestrian oriented and neighborhood serving, resulting in a more village -like character. This differs from the Specific Plan option that allows auto and marine uses, and other non -pedestrian oriented uses. This option supports the Economic Development Guiding Principle to encourage mixed -use development and the revitalization of older commercial areas. This option would be consistent with Workforce and Special Needs Housing Guiding Principles to provide a variety of housing types, rezone under -performing commercial uses and consider mixed -use housing. This option supports the Community Character Guiding Principle to maintain and enhance the beneficial and unique character of the different neighborhoods of Newport Beach. As this option emphasizes maintaining the positive qualities of the existing community, it is consistent with the Community Character Guiding Principle to consider the character and quality of the community by improving the quality of uses in the area along with their physical appearance; it also supports preserving the community's heritage. Similar to Option Two, this option would require stringent regulations for insulation from noise sources, or otherwise this option could potentially conflict with the Environmental Conservation Guiding Principle to minimize noise hazard exposure. This may be less of an issue with noise to residential units being minimized by their placement above the ground floor. 4. Convert Mobile Home Park to Public Recreation Use Another option that could be considered is to replace the existing Beach and Bay mobile home park with a public park. Public recreation areas in the city are limited on the west side. The existing mobile home park is aged, and is situated in a flood zone, which limits its attractiveness as a site for new housing. This option would require the City to expend funds to relocate existing residents and purchase the land for the public park. This option would support the Community Character Guiding Principle to balance developed lands with adequate recreation areas. The option would conflict with Workforce and Special Needs Housing Guiding Principle to promote a variety of housing types, as existing low-cost housing would be eliminated. This option would also conflict with the Economic Development Guiding Principle to maintain fiscal balance, as it does not identify a source for funding other than the general fund. 5. Streetscape Improvements Streetscape enhancements such as street trees, widened sidewalks, and landscaping could enhance the physical appearance of the corridor. Entryway monuments or other treatments could 0 be implemented to serve as a welcome and identification to the city's western entrance. This option would support the Community Character Guiding Principle to enhance the unique character of the different neighborhoods that identify Newport Beach. DEVELOPMENT OPTIONS FOR WEST NEWPORT RESIDENTIAL The following options for improvements are suggested for GPAC consideration of the West Newport Residential area. The land use pattern in the West Newport Residential area is well established and is not likely to change substantially. The suggestions for this area are to improve function and aesthetics. These improvements are not mutually exclusive and could be implemented in combination with one another and/or with other alternatives developed by GPAC. 1. Streetscape Improvements Overhead utility lines are planned to be placed underground and will improve the aesthetics of the area. In addition, street trees, sidewalks, and landscaping could enhance the physical appearance of the area. Sidewalks and landscaping improvements may only be applicable on one side of the street in many parts of the area. The addition of bike lanes along both sides of Seashore Drive would improve non -vehicular travel modes. Lighting improvements will also help to improve safety as well as enhance the area's physical attractiveness. Significant costs could be incurred in implementing this option; such costs would conflict with the Economic Development Guiding Principles to maintain fiscal balance. However, this option would contribute to protecting the high value of residential land in the community. This option would support the Community Character Guiding Principles to enhance the unique character of the different neighborhoods that identify Newport Beach and to consider the design, character and quality of the community. 2. Property Maintenance and Code Enforcement Basic property maintenance improvements could be implemented with significant quality of life results. Improved code enforcement of existing violations would ameliorate existing conditions in the area. Elimination of parking in setbacks and on sidewalks, prohibition of unenclosed outdoor storage and general maintenance of outdoor landscaping would improve the physical appearance of the area and enhance the overall character of the neighborhood. This option would support the Community Character Guiding Principles to enhance the unique character of the different neighborhoods that identify Newport Beach and to consider the design, character and quality of the community. This option would contribute to protecting the high value of residential land in the community. 3. Parking and Circulation Improvements This option identified the purchase of strategic residential lots to provide dedicated parking for residences in the neighborhood. This option would require the City to purchase the land and lease parking spaces to residences. This option also considers street improvements to River Avenue to allow right turn access from River Avenue to Coast Hwy. 9 4. Revise Residential Development Standards This suggestion identifies revisions to existing development standards to improve physical conditions in the area. Revisions could include the addition of minimum landscape requirements in front yard setbacks and increasing the minimum parking requirements. It may also be useful to review setback requirements to eliminate parking in front yard setbacks. As the area is very densely populated, it may be prudent to eliminate condominium conversions for duplex units. Additional standards that address the code enforcement and property maintenance issues may be identified. Beach General Plan FORMULATION FOR GPAC REVIEW • June 30, 2004 E/P Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. The first step will be the identification of possible land use alternatives for the 12 subareas that have been selected by the General Plan Update Committee (GPUC). Following identification, the consultant team will evaluate the comparative traffic, fiscal, and environmental impacts of these options. These Geographic Subarea Discussion Papers are intended to serve as a framework for the GPAC's discussion in defining the land use alternatives for each of the following geographic subareas within Newport Beach: Banning Ranch, Airport Business Area, Lido Marina Village/Civic Center, Balboa Village, Cannery Village/McFadden Square, Corona del Mar, West Newport Coast Highway Corridor, West Newport Residential, Mariner's Mile, West Newport Industrial, Fashion Island/Newport Center, and Old Newport Boulevard. It is understood that these encompass areas in which change is likely and/or policy intervention is necessary. Other areas of the City will be addressed by "global" policies that will be subsequently defined during the planning process. These papers present an overview of existing conditions, as well as a summary of key planning issues/findings affecting each subarea's land uses, as identified through the Visioning Process and the analyses in the Technical Background Report, and raised by City staff. Guiding Principles that pertain to or affect land use development of the subarea are also provided. Lastly, initial land use options for each subarea are identified for GPAC to consider, and to stimulate their identification of additional land use alternatives. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Preferred Land Use Plan will be selected in October. Description of Mariner's Mile Mariner's Mile is a primarily auto -oriented area located along Coast Highway, which runs west to east, from the Arches Bridge on the west to Dover Drive on the east end. The area is comprised of commercial land uses just east and west of Coast Highway, as shown in Figure 8-1. Commercial uses account for 82.9 percent of land uses in the study area: a mix of marine -related commercial uses (boat sales, sailing schools, marina), some auto -related uses (auto dealerships and service) and neighborhood -serving commercial are located throughout the area. The Balboa Bay Club and Resort, a hotel and a private club located on City tidelands, represents 19.4 percent of uses in the area. Marine related uses account for 12.8 percent of the area, while auto -oriented uses account for 9.0 percent of the area. Multi -tenant commercial uses that combine a number of related or complementary uses in a single building or buildings that are connected physically or through design, account for almost 25 percent of area land uses. Waterfront development, such as dockside restaurants, is concentrated on the southern side of Coast Highway, while there are more general commercial uses along the northern side. Secondary uses include salons, restaurants, apparel, and other specialty shops ranging from wine stores to home furnishings stores. There are a high number of vacancies in Mariner's Mile relative to the other areas; 8.5 percent of the area contains vacant buildings. Many of these vacancies are sites with development potential. The City has recently embarked on a plan, Mariner's Mile Strategic Vision and Design Plan (adopted by City Council in 2000), to accomplish the following: create a pedestrian -friendly retail district along the northern portion of Coast Highway in the vicinity of Tustin Avenue, Riverside Avenue, and Avon Street; improve the auto -oriented strips located on the north side of Coast Highway, in the western and easternmost portion of the area; create a vibrant public waterfront south of Coast Highway; upgrade the visual character of the area with new landscaping and streetscape amenities; and improve private development standards associated with signage, architecture, and lighting. Parts of the area may not easily adopt a pedestrian character as there are commercial uses with parking in the front and traffic on Coast Highway is heavy. In addition, there is a possibility that Coast Highway could be widened in this area in the future, which would detract from the intentions of a more pedestrian -friendly environment by potentially narrowing sidewalks and allowing more traffic in the area. An issue to consider is how future development will affect the character of Mariner's Mile, and what kind of uses the community would like to have in this area. The western half of this area is within the Mariner's Mile Specific Plan area. The Specific Plan has designated the bay side of Coast Highway for Recreational and Marine Commercial, which allows for the following: (1) continuation of marine -oriented and visitor -serving uses; (2) maintains the marine theme and character of the area; and (3) encourages public physical and visual access to the bay. For the area inland of Coast Highway, the Specific Plan allows for Retail and Service Commercial uses, which is intended to serve as an active pedestrian -oriented retail area with a wide range of visitor -serving, neighborhood commercial, and marine -related uses. 2 Auto•oriented development in Manner's Mile Mariner's Mile Issues Pedestrian • oriented streetscape along Coast Highway The following issues were identified for the Mariner's Mile area through the Visioning Process, Technical Background Report (TBR) analyses, and by staff. VISIONING PROCESS 1. Mixed -use development is appropriate for portions of Mariner's Mile, and represents an opportunity for development. 2. Some conflicts such as noise have arisen between commercial uses along Coast Hwy and residential uses on the bluffs above Mariner's Mile. 3. Portions of Mariner's Mile are in need of revitalization. 4. Residents have indicated a desire to utilize other modes of transportation on Coast Highway, such as enhanced accessibility for pedestrians (e.g. pedestrian access from the harbor to Mariner's Mile). 5. Pedestrian access is vital to encouraging alternative travel modes. Pedestrian crossing of Coast Highway between Newport Boulevard and the Back Bay Bridge has been raised as a particular concern. TECHNICAL BACKGROUND REPORT 1. Mariner's Mile is characterized by a wide diversity and a fragmented pattern of uses in distinct subareas. Specifically, the eastern portion of the area can be characterized primarily by auto -oriented commercial space, while the western portion contains local - serving retail and marine -related commercial uses. At issue are the appropriate type, mix, and scale of uses and future development, including the marine uses and the ability to sustain appropriateness of visitor -serving uses. 2. Programs have been developed for the improvement of the area including Mariner's Mile Design Framework, which provides several recommendations for sound planning and urban design. 3. Portions of Mariner's Mile are vacant and underdeveloped and provide opportunities for new development. Impacts of new development on Coast Highway's traffic are of concern. 4. Some marine -related uses have left the Mariner's Mile area. There may be some pressure to transition sites devoted to uses such as boat sales to other uses. For instance, economic pressure has caused shipyards and water -dependent manufacturingtrepair services to be replaced with retail/restaurants and/or office uses. 5. Multiple property ownerships may complicate coordination of a cohesive pattern of development. 6. There has been discussion of developing a boardwalk along the waterfront area. Issues associated with a new boardwalk would include negotiating access from property owners, relocating the pierhead, and determining economic feasibility of the boardwalk's development. 7. Supporters of marine related uses would like to see greater use of limited public shore access sites to increase visitorship or marine industry. 8. Coast Highway is heavily auto -oriented and inhibits extensive pedestrian activity. CITYS'TAFF 1. Parcels located in the western portion of the area tend to be narrow and deep, while the parcels in the eastern portion tend to be shallow and wide. This creates an incongruent urban pattern with a more village like character in the western portion and a commercial strip development character along the eastern portion. 2. Pedestrian access across Coast Highway is limited due to the volume and speeds of cars, the width of the road, and few signalized crossings. 3. Vehicle access in the area is also limited as it is difficult to access uses along the north side of the street when traveling east, as well as accessing the waterfront development when traveling west. The width of the highway, as well as the limited number of signalized intersections contributes to this condition. Guiding Principles The following guiding principles are from the Economic Development, Community Character, Environmental Conservation, Workforce and Special Needs Housing, and Mobility Discussion Papers, and are pertinent to land use development within the Mariner's Mile area. (Note: numbers correspond to listing in Guiding Principles document.) ECONomrcDEmopmENT 1. General Plan policies will maintain the City's positive fiscal balance. 2. General Plan land use policies will facilitate an economically viable concentration of marine uses. 3. General Plan policies will encourage the revitalization of older commercial areas. 9 4. The General Plan should encourage mixed -use development. 7. General Plan policies will facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. 8. Additional development entitlement needs to demonstrate significant fiscal, economic or other community benefit. COMMUNITYCHARACTER 2. Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. 3. Future development shall consider the scale, urban form, design, character and quality of the community. WORKFORCEAND SPECIAL NEEDS HOUSING 4. Consider the rezoning of under -performing commercial areas to allow residential or mixed -use development. MOBILITY 1. Establish General Plan land uses and density/intensity limits that will have less impact on peak hour traffic. 3. Regional traffic will be included in the analysis of land use alternatives, but such traffic should not be the sole reason for rejecting a land use alternative that would have net benefits to Newport Beach. 4. In selecting land use and circulation system alternatives, weight will be given to traffic congestion that is ongoing as well as to congestion that is limited to a few hours of the day or a few months of the year. 5. The community will accept additional congestion when it chooses to maintain the current urban form/community character by limiting roadway widening or other circulation system improvements. 9. Increase City strategies and programs to enhance the development and use of alternative transportation modes and transportation systems management. ENVIRONMENTAL CONSERVATION 3. Minimize air quality degradation through land use practices and circulation improvements that reduce reliance on the automobile. 6. Minimize the exposure of people to noise hazards. 7. Minimize intrusion from light sources. 5 Potential Land Use Alternatives for Discussion DEVELOPMENT,SCENARIOS For the Mariner's Mile area, several development scenarios have been identified, as discussed below. These options are not mutually exclusive and could be implemented in combination with one another and/or with other alternatives developed by GPAC. 1. Mariner's Mile Strategic Vision & Design Framework Prepared in October 2000, the Strategic Vision and Design Framework outlines a vision for the future of Mariner's Mile. One of the recommendations of the Framework is to improve the auto - oriented commercial strip located on the easternmost portion of Mariner's Mile (north of Coast Highway) and the strip of land east of Irvine Avenue (north of Coast Highway) through implementation of design and development standards. The Framework also proposes strategies to enhance the waterfront area and to improve connections from this area to the rest of Mariner's Mile. Some strategies include creating a pedestrian environment and encouraging visitor - oriented uses along the waterfront. Creation of a pedestrian -oriented retail district is also a vision for the area north of Coast Highway, near Tustin Avenue, Riverside Avenue, and Avon Street. The intent is to create a "village" district to serve adjacent neighborhoods, visitors, and existing marine uses, and become a focal point for the area. Implementation of a comprehensive parking strategy and relocating the United States Postal Service (LISPS) Distribution Center are recommended as strategies to help create a village district. Streetscape improvements to upgrade the visual character of the area are also included in the Framework. Lastly, the Framework also recommends discontinuing a requirement of the Mariner's Mile Specific Plan regarding the provision of marine uses. Currently, the Specific Plan requires that 40 percent of the multi - tenant properties within the Recreational and Marine Commercial zone to contain marine uses. This "marine incentive use" has resulted in marine -related uses that have been difficult to support at times. If the requirement is discontinued, a larger percentage of marine uses will occur when market forces allow, while fewer marine uses will occur when other uses are stronger in the market. Implementation of the Strategic Vision and Design Framework would improve the image of Mariner's Mile by implementing higher standards for development of the auto -oriented uses along Coast Highway, creation of a pedestrian -oriented retail district north of Coast Highway, enhancing visitor -serving waterfront uses, and adding streetscape improvements and landscaping. These improvements would be in support of the Economic Development Guiding Principles (EDGP) of helping to maintain the City's positive fiscal balance, encouraging the revitalization of older commercial areas, and facilitating a variety of business types in the area. By discontinuing the marine incentive use requirement, marine uses will only be implemented according to market forces, which would be in support of the EDGP of including an economically viable concentration of marine uses and revitalization of older commercial areas. With streetscape improvements and addition of landscaping, the aesthetics of the area would be enhanced, which would be consistent with Community Character Guiding Principles (CCGP). These improvements, as well as the creation of a retail village, would help to create a pedestrian - oriented environment that could encourage patrons and office employees of the area to walk to 0 the various uses. This could potentially reduce vehicle trips, and in turn, minimize air quality degradation, which would be consistent with the Mobility Guiding Principles (MGP) and the Environmental Conservation Guiding Principles (ECGP). A policy in the Framework also discourages the widening of Coast Highway in this area until all regional alternatives are exhausted, which would also support MGP. This policy states that if widening of PCH is adopted as a City policy, private property to be acquired for the right-of-way should be taken as whole parcels only at fair market value. 2. Existine Mariner's Mile Specific Plan The existing Mariner's Mile Specific Plan area generally extends from east of Old Newport Boulevard to Irvine Avenue, south of Avon Street, on both sides of Coast Highway. The western portion of the Mariner's Mile area contains the entire Specific Plan area. Under the Specific Plan, the bay side of Coast Highway has been designated for Recreational and Marine Commercial. This designation allows for the continuation of marine -oriented and visitor -serving uses, as well as the maintenance of the marine theme and character of the area, and encouragement of public physical and visual access to the bay. For the area inland of Coast Highway, the Specific Plan allows for Retail and Service Commercial uses, which is intended to serve as an active pedestrian -oriented retail area with a wide range of visitor -serving, neighborhood commercial, and marine -related uses. Under implementation of the Mariner's Mile Specific Plan, the eastern half of the Mariner's Mile area would remain dominated by auto -related uses. The western half of the area north of Coast Highway under the Specific Plan would consist primarily of the same uses as what exists today, while the area along Lido Channel would be converted to visitor -serving, neighborhood commercial, and marine -related uses that are oriented to pedestrians. The types of uses that would be allowed under the Specific Plan would help facilitate a concentration of marine uses and could potentially revitalize older commercial areas, which would be consistent with EDGP. The marine theme and character of the area north of Coast Highway would be maintained, in support of the CCGP of maintaining and enhancing the unique character of Mariner's Mile. Implementation of this Specific Plan would not substantially change the existing uses that are currently in the area; however, intensification can occur. Therefore, vehicle trips and peak hour traffic could be affected. As such, MGP may not be met. 3. Mixed -Use Villaee Center Similar to the .strategy recommended in the Mariner's Mile Strategic Vision & Design Framework, this option would implement a pedestrian oriented mixed -use village center in the area north of Coast Highway, near Tustin Avenue, Riverside Avenue, and Avon Street, as shown in Figure 8-2. The goal of this option would be to 1) create a focal point within Mariner's Mile through the redesign of the area as an integrated center containing an intensification of existing retail and office uses on the ground floor with new residential uses on the upper floors, and 2) provide a commercial center to serve the residential neighborhoods located to the north. Under this option, the USPS Distribution Center would be relocated to reduce the presence of trucks traveling in the area. Compatible uses to existing commercial and office space would take its place. The existing parking lot, also shown in Figure 8-2, located between Riverside and Tustin 7 Avenues could be improved for a variety of uses. Located in the core of the village center, this lot could accommodate a public plaza to serve patrons and residents of the area. A two-story parking garage with landscaping surrounding the structure and on the rooftop could also be implemented at this site, and would serve the patrons of the village center, as well as surrounding uses. Depending on market forces, the vacant lot and vacant buildings located east of Tustin Avenue can accommodate office, retail, and/or a combination of marine -related commercial uses to intensify activities in the area. Streetscape improvements to Riverside and Tustin Avenues, as well as Coast Highway, would be implemented under this option in order to foster a pedestrian -oriented environment within the Village, as well as to physically connect the uses. Improvements could include the addition of street furniture and landscaping, as well as widening of the sidewalks. The crosswalks on Coast Highway at Riverside and Tustin Avenues could be better distinguished with use of different types of paving, and link the village center with waterfront uses along Lido Channel. Implementation of a mixed -use village center would be consistent with EDGP by incorporating mixed -use developments and a variety of business types. The village center would also improve the character of this portion of Mariner's Mile, which would be in support of CCGP. In addition, the village concept would help create a pedestrian -friendly environment that would encourage residents, patrons, and office employees of the area to walk to other commercial and restaurant uses. This could reduce vehicle trips and, in turn, minimize of air quality degradation, which would be consistent with the MGP and ECGP. Lastly, with the addition of residential units in Mariner's Mile, Workforce and Special Needs Housing Guiding Principles (WSNHGP) would be met. 4. Mixed -Use Developments - Other Locations Mixed -use developments may also be appropriate in other portions of Mariner's Mile. Specifically, the vacant lots, vacant building, and low -scale multi -tenant commercial space located south of Coast Highway, and southeast of Tustin Avenue would be suitable sites for this type of development. Another potential mixed -use site is located north of Coast Highway, west of Irvine Avenue. Ground floor retail uses with residential units located on the upper floor could be implemented at these locations, as shown in Figure 8-2. The residents would help serve as an economic base for the restaurants located on the western portion of Mariner's Mile, and commercial uses located throughout. Ground floor retail uses could consist of various types of commercial uses or even provide office space, which would be dependent upon market conditions. The potential mixed -use site located south of Coast Highway would be able to take advantage of the site's proximity to Lido Channel, where views of the water would be available. A height of two stories would be appropriate to prevent blockage of views from uses north of Coast Highway along the bluff. Under this option, new development could help maintain the City's positive fiscal balance and revitalize a commercial building, while encouraging mixed -use would be in support of EDGP. Depending on the design of the structure, this development could be consistent with CCGP by enhancing the character of the area. Additional housing units in the area could be provided for various economic segments of the population in Newport Beach, and be in support of WSNHGP. However, implementation of this option would convert a vacant building and lot to different uses that could contribute to peak hour traffic and congestion in Mariner's Mile. This would not be in support of MGP. Lastly, new mixed -use developments have the potential to expose new residents to noise and light sources from Coast Highway and surrounding uses. However, the residents may drive less due to the many restaurants and commercial uses in the area, which would be consistent with ECGP. 5. Marine -Related Commercial Uses Zone Under this option, marine -related boat sales and other retail commercial uses would be focused in the eastern portion of Mariner's Mile, north of Coast Highway, as shown in Figure 8-2. Currently, auto -related commercial uses and fast food restaurants dominate this area. Additional marine -related commercial uses would be encouraged, and existing uses located in the western portion of Mariner's Mile could be relocated to this area. Because it can be difficult to implement development projects on small lots or provide adequate parking, lot consolidation and shared parking could be encouraged under this alternative. In addition, driveways should be consolidated to help facilitate traffic flow on Coast Highway by minimizing ingress/egress into this area. The intensification of marine -related commercial uses in Mariner's Mile would support EDGP of maintaining the City's positive fiscal balance and facilitating an economically viable concentration of marine uses. Depending on the design of new marine -related commercial space, the intensification of this type of use would maintain the unique character of marine uses in the area, which would be consistent with CCGP. However, if all marine -related uses are within one area, customers could drive to the area and walk to the various stores. This option may not support MGP, or explicitly further WSNHGP or ECGP. 6. Residential Corridor A residential area would be created under this option on the eastern portion of Mariner's Mile and north of Coast Highway, as shown in Figure 8-2. This area of Mariner's Mile abuts bluffs that contain single-family homes on top. Residential uses appropriate for this area include multi- family units at two to three stories in height (limiting heights will prevent the blockage of views from bluff top homes). Again, the presence of shallow lots in this area would suggest lot consolidation to accommodate larger structures containing multi -family units. Lot consolidation would also reduce the number of driveways, which would help facilitate traffic flows on Coast Highway. Residential development could be landscaped along Coast Highway providing a visual and noise buffer. Multi -family residential uses would be compatible with the other residential uses south of this area, and would lye served by the commercial uses and restaurants located in the western portion of Mariner's Mile The development of multi -family units in Mariner's Mile would be in full support of WSNHGP. Depending on the design of these residential uses, the aesthetics of the area could be improved by phasing out auto -oriented commercial uses. This would be consistent with CCGP. Additionally, residential uses typically generate less vehicle traffic than commercial uses, which would be consistent with MGP. 9 7. Waterfront Walkway The concept of a waterfront walkway along Mariners Mile has been of interest to various community leaders over the last 20 years. The California Coastal Commission requested the City of Newport Beach to investigate the potential for this walkway for several years, as providing public access to the waters edge. The development of a Mariners Mile Walkway would traverse through predominantly private property that currently encompasses various uses ranging from commercial to residential. A walkway along the Mariner's Mile waterfront is technically feasible. Although special technical challenges exist along several of the properties such as the various boat yards, solutions exist for each property. In order to provide this walkway as a continuous pathway along the waterfront, the route would traverse both existing landside and waterside spaces. Some pathways would have to utilize existing parking lot areas and building corridors, while other potential routes would traverse water space currently occupied by floating docks and boats. Implementation of the waterfront walkway would help support CCGP of enhancing the character of the area, as well as MGP and ECGP of encouraging visitors to walk to various uses along Lido Channel. This option may also encourage more visitors to the area that would support existing commercial uses, which could potentially support EDGP. 8. Streetscape Improvements Similar to what is discussed in the Strategic Vision and Design Framework, implementation of streetscape improvements in Mariner's Mile would help facilitate a pedestrian -oriented environment along the entire length of the area. Additional crosswalks would be included under this option to serve as a traffic -calming measure and to facilitate easier pedestrian access, as well as link the north side of Coast Highway with waterfront uses. Figure 8-2 indicates where these potential crosswalks could be added. However, traffic flow along Coast Highway could be interrupted with additional crosswalks. A pedestrian overpass can also be constructed to facilitate pedestrian crossing on Coast Highway without affecting traffic flows. Although there are some portions of Mariner's Mile that contain street trees and shrubs, additional landscaping along the entire length of Coast Highway would provide increased shade and a more pleasant environment for the pedestrian. Other streetscape improvements that Mariner's Mile could benefit from would be the addition of lighting, entry signs, and signage standards for all types of development to implement a uniform type of sign in the area. These improvements are similar to the ones recommended in the Mariner's Mile Strategic Vision and Design Framework. Streetscape improvements and traffic -calming measures would help support CCGP of enhancing the character of the area, while not supporting MGP of having less impact on peak hour traffic. This option would not explicitly further EDGP, WSNHGP or ECGP. 9. Widening of Coast Highway Under this option, Coast Highway would be widened to improve traffic flow in the area. The City would have to acquire properties adjacent to Coast Highway to accommodate the widening, and those businesses would have to be relocated. The widening of the street would also not facilitate a pedestrian -friendly environment with additional vehicles on Coast Highway. 10 Implementation of this land use option would support the MGP of improving traffic flow. This option, however, would not help to contribute positively to the City's fiscal balance as funds would be required to acquire properties and to relocate businesses. In addition, widening of Coast Highway would not support CCGP of maintaining the unique character of the area or ECGP of minimizing air quality degradation by reducing reliance on the automobile. 11 Beach General Plan FORMULATION GPAC • July 12, 2004 EIP Assoclates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. The first step will be the identification of possible land use alternatives for the 12 subareas that have been selected by the General Plan Update Committee (GPUC). Following identification, the consultant team will evaluate the comparative traffic, fiscal, and environmental impacts of these options. These Geographic Subarea Discussion Papers are intended to serve as a framework for the GPAC's discussion in defining the land use alternatives for each of the following geographic subareas within Newport Beach: Banning Ranch, Airport Business Area, Lido Marina Village/Civic Center, Balboa Village, Cannery Village/McFadden Square, Corona del Mar, West Newport Coast Highway Corridor, West Newport Residential, Mariner's Mile, West Newport Industrial, Fashion Island/Newport Center, and Old Newport Boulevard. It is understood that these encompass areas in which change is likely and/or policy intervention is necessary. Other areas of the City will be addressed by "global" policies that will be subsequently defined during the planning process. These papers present an overview of existing conditions, as well as a summary of key planning issues/findings affecting each subarea's land uses, as identified through the Visioning Process and the analyses in the Technical Background Report, and raised by City staff. Guiding Principles that pertain to or affect land use development of the subarea are also provided. Lastly, initial land use options for each subarea are identified for GPAC to consider, and to stimulate their identification of additional land use alternatives. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Preferred Land Use Plan will be selected in October. Description of West Newport Industrial The area is generally bounded by Newport Boulevard to the east and 16th Street to the north. Southwest of the West Newport Industrial area lies residential and condominium developments, beyond which Banning Ranch is located. The City of Costa Mesa is located directly north of the area. Figure 9.1 shows the regional location of the area. West Newport Industrial area is a mix of 1 residential (41.8 percent), industrial uses including the Newport Technology Center business park (32.9 percent), and commercial uses (17.3 percent). Other uses include public uses such as the City Corporation Yard and Carden Hall Elementary School on Monrovia Avenue. Development in the area dates back to mid -twentieth century. Commercial uses in the area include professional/medical office (13.2 percent) and auto -related uses (1.8 percent). There are few neighborhood -serving retail uses in the area (about 2.0 percent of the area). Some of the commercial uses are under -performing. While not located within the area, Hoag Hospital just south of the area is a strong presence. The proximity of Hoag Hospital to the West Newport Industrial area may act as an economic attraction for new medical and related uses, and has the potential to cause the existing uses and character of these areas to convert to a more medical focused district. There are significant amounts of multi -family uses (32.1 percent) in the center of the area, (see Figure 9.2) separating industrial uses to the north and south of the area. Light industrial uses (30.0 percent) account for the majority of industrial uses in the area, while marine -related industry and multi -tenant uses together account for less than 3.0 percent of the area. The mix of industrial and residential uses is not always complementary within and at the edges of the area. Some discussion among city staff members has arisen as to the future of the area as an industrial area. The City's current General Plan Circulation Element identifies several streets in the area for widening and reconfiguration. The streets planned for widening include 15`h Street between Monrovia Avenue and Superior Avenue, Superior Avenue between Placentia Avenue and Industrial Way, and Placentia Avenue from Superior Avenue to Hospital Road. New road extensions are planned west of the area for 151h Street, 17th Street and 10 Street (in Costa Mesa). These streets are planned to extend to a new road to be constructed, Bluff Road, located in the Banning Ranch area to the west. 2 1 } COSTA MESA v IRVINE r f9 _ figure 9.1 Regional Location of West Newport Industrial West Newport Industrial Issues The following issues were identified for the West Newport Industrial area through the Visioning Process, Technical Background Report (TBR) analyses, and by staff. VISIONINGPROCESS ■ The mixed residential/industrial area north of Hoag Hospital (West Newport Industrial) would benefit from revitalization. TECHNICAL BACKGROUND REPORT ■ There is a deficit of active parks on the City's west side. The ability to increase parklands is constrained by the land costs and lack of availability of vacant properties. ■ The expansion of Hoag Hospital offers opportunities for the development of medical - related uses within the West Newport Industrial area. ■ An issue is the character of the West Newport Industrial area —whether it should remain a small-scale industrial area or change to become more residential in use and character. ■ Multiple ownership of individual parcels inhibits the area's cohesive and integrated development. ■ The fact that land values are high and continue to rise may make the area more suitable for other uses, threatening the viability of light industrial uses in the West Newport Industrial area. ■ The City of Costa Mesa has considered the extension -of State Route 55 (Costa Mesa Freeway) to 160' Street. CITYSTAFF ■ The current mix of land uses, including mobile homes, single-family residences, auto related uses, manufacturing and boat storage, in the West Newport Industrial area results in incompatibility issues with noise, parking and aesthetics. ■ The adjacency of the area to Costa Mesa underscores the importance of inter - jurisdictional cooperation. Without proper coordination there is a potential to result in land use incompatibility issues between residential and industrial uses that are proximate but in different jurisdictions. ■ Access to Hoag Hospital is impeded by current traffic conditions. Congestion at Newport Blvd. and Hospital Road is particularly heavy. ■ Development activity in the area may benefit from the preparation of a cohesive and comprehensive plan. ■ Historically, smaller lots and lower land values have enabled the establishment of industrial start-up businesses in the area. ■ Historically, the region has been a nautical attraction with support uses locatedin proximity to the harbor and bay. However, current zoning only permits research and development (R&D) uses in the Controlled Manufacturing (M-1-A) zoning district. Limited manufacturing and fabrication of products require the approval of a use permit by the Planning Commission, indicating marine related industry is not expressly allowed in this area. ■ If the West Newport Industrial area is to retain an industrial character, the type of industry encouraged and permitted should be reevaluated. ■ The parking supply in the area is sometimes inadequate, particularly for medical offices. (Typically industrial uses have lower parking requirements than office or medical uses.) ■ Implementation of the Circulation Element may affect the mobile home park on 15°i Street as planned street improvements such as widening may encroach into the property. ■ The intersections of 17s' Street and Newport Blvd., and 19u' Street and Newport Blvd. just outside of the study area have been identified as the busiest intersections in Orange County indicating that the West Newport Industrial area may benefit from or be affected by future roadway improvements to address current deficiencies. ■ Existing mobile home parks and older apartments provide alternatives to higher cost housing in Newport Beach. Guiding Principles The following guiding principles are from the Economic Development, Community Character, Environmental Conservation, Workforce and Special Needs Housing, and Mobility Discussion Papers, and are pertinent to land use development within the West Newport Industrial area. (Please note: numbers correspond to Guiding Principles listed in their entirety under separate cover.) EcommiCDEvnopmENT 1. General Plan policies will maintain the City's positive fiscal balance. 4 2. General Plan land use policies will facilitate an economically viable concentration of marine uses. 7. General Plan policies will facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. 8. Additional development entitlement needs to demonstrate significant fiscal, economic or other community benefit. 9. General Plan policies will protect the high value of residential property. 10. General Plan policies shall prepare the City to capitalize on market and demographic changes and opportunities that emerge in key economic centers of the community. COMMUNITY CHARACTER 3. Future development shall consider the scale, urban form, design, character and quality of the community. WORKFORCE AND SPECIAL NEEDS HOUSING 1. Promote a balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments including very low, low, moderate, and upper income households. 2. Maintain quality residential' development through the application of sound planning principles and policies that encourage the preservation, conservation and appropriate redevelopment of the City's housing stock. 4. Consider the rezoning of under -performing commercial areas to allow residential or mixed -use development. 5. General Plan policies shall protect the high value of residential property. MOBILITY 1. Establish General Plan land uses and density/intensity limits that will have less impact on peak hour traffic. 5. The community will accept additional congestion when it chooses to maintain the current urban form/community character by limiting roadway widening or other circulation system improvements. 10. Plan the arterial roadway system to accommodate projected traffic at a level of service acceptable to the community while minimizing neighborhood intrusion. ENVIRONMENTAL CONSERVATION 3. Minimize air quality degradation through land use practices and circulation improvements that reduce reliance on the automobile. 6. Minimize the exposure of people to noise hazards. 7. Minimize intrusion from light sources. 5 Potential Land Use Alternatives for Discussion The potential land use alternatives discussed below may be considered for the West Newport Industrial area, in particular at locations identified as possible "opportunity areas". The area is largely built out; therefore change in the area is likely to occur as infill, or as reuse/intensification of existing parcels. Thus, the options presented below are for individual sub areas and parcels within the area that were identified as possible opportunity areas. Opportunity areas were identified at locations where low -intensity development, underutilized properties or vacant parcels exist, or were areas that have been previously identified for study in other City policy documents. These areas, described below and illustrated in Figure 9.2, were identified as possible opportunity areas in which to consider one or more of the land use options presented in this section. North Portion. Bounded by the City of Costa Mesa to the north, this area includes parcels along 16a' Street and Production Place, between Superior and Monrovia Avenues. Existing uses in this area include auto -related uses, specialty auto or marine assembly, storage and/or distribution, and other light industrial uses. This area was identified because there is a consolidation of light industrial uses in the area that differs from other uses in the West Newport Industrial area. Newport Technology Center. This Research and Development (R&D) business park is located on Superior Avenue between the Newport City Yard and residential uses. Currently, the Newport Technology Center is under -performing with a high vacancy rate. Research and Development uses were adversely affected by the dot.com "bust' resulting in many newer business park developments experiencing high vacancy rates. General office tenants have recently been approved to occupy a portion of the otherwise vacant space. Triangle Portion. The mix of land uses forms the triangular shape bounded by Carden Hall Elementary School to the north and Monrovia Avenue to the east and Banning Ranch to the west. This area is identified as an opportunity area due to the current mix of industrial and commercial uses. Hospital Road Medical Uses. The medical related uses north of Hoag Hospital and Hospital Road are healthy, viable uses. There may be an opportunity to intensify the uses here, creating a hub of hospital support uses and providing an economic stimulus for the area. Mobile Home Parks. Four mobile home parks are located in the center of the West Newport Industrial area. One is located east of Placentia, bounded by Monrovia to the east and 15a' Street to the south; this mobile home park abuts industrial uses located on Production Place. Three mobile home parks are located west of Placentia, bounded by Superior Avenue to the southeast. Light industrial uses in Costa Mesa abut the properties to the north. These areas were identified as opportunity areas due to their susceptibility to convert to higher value land uses, although they currently provide more affordable housing options to Newport Beach residents. There is a Mobile Home Park Overlay (MHP) in place that offers protection of these uses, but the MHP does not preclude new development outright. 0 The land use options discussed below are not mutually exclusive and could be implemented in combination with one another and/or other alternatives developed by GPAC. These land use options are also presented in Table 9-1, which correlates the land use alternatives to specific geographic areas for which they may be considered. DEVELOPMENT SCENARIOS 1. Industrial and Marine Uses This option calls for preserving and enhancing industrial and marine uses such as those related to boat storage and repair, ship building, and specialty parts manufacture, such as sails. This option could be applied in the North Portion and/or the Triangle. Existing uses in the North Portion are primarily industrial and light manufacturing, with uses such as automobile detailing, and specialty parts sales and distribution. Marine uses such as boat repair, and specialty parts shops could be targeted for development in this area. This area is directly adjacent to land within the City of Costa Mesa's jurisdiction. The uses along 16a' Street are designated for "Light Industry" by the City of Costa Mesa. As such, the two areas could be developed cooperatively to capitalize on marine industries, becoming a center of activity for marine support uses. This alternative could also be applied to the Triangle portion west of Monrovia Avenue, as currently the area is a mix of industrial and commercial uses. The conversion to all industrial and marine uses in the Triangle area would provide a more cohesive character and provide a potentially more compatible development pattern. However, compatibility with land uses east and west of the Triangle could be in question, as those uses are primarily residential. Industrial uses may not be compatible with residential uses proposed in Banning Ranch, if those uses are approved in the plan for that property. Another consideration is the presence of Carden Hall Elementary; depending on the type of marine uses allowed, industrial uses may not be compatible with the existing educational facility or with potential residential uses in Banning Ranch, if that is the plan approved for that property. The option for Industrial and Marine uses in either the North Portion or Triangle potentially supports the Economic Development Guiding Principle to facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. If the zoning regulations were altered to allow marine uses in this area outright, then the option would also contribute to the principle of facilitating an economically viable concentration of marine uses. While industrial uses in this area support the region's recreational and leisure activities and contribute to Newport Beach's nautical heritage and character, current zoning requires a use permit for any marine related industries. With Newport Beach's high land values, these industrial uses may not be the most beneficial to the city's fiscal viability, as residential uses would likely provide more tax revenue to the city. Therefore the policy to encourage marine industrial uses in the West Newport Industrial area should be evaluated in this context. 7 2. Residential Uses Residential uses continue to be in high demand throughout the region. Rising land values cause under-utilized properties to convert to residential uses such as single-family residential uses. An opportunity may be present in the West Newport Industrial area to convert industrial and under- performing commercial uses to housing. Specifically, four areas are identified for potential residential uses: the Triangle, the Newport Technology Center, the Mobile Home Parks, and the North Portion. Existing zoning in the residential portions of the area allows 20 dwelling units per acre. This zoning could be retained and applied to new residential development, providing for more compact housing that could be moderately priced. Residential uses could be developed in the Triangle providing a connection between existing mobile home residential uses and potential future development in Banning Ranch. Roadway extensions and reconfigurations that would reinforce such a connection are described in the Circulation Element. The replacement of existing industrial uses with residential uses would possibly require land remediation for future housing developments. The Triangle would be an unique opportunity to consider higher density residential uses due to the area's large parcel sizes, existing mix of uses and proximity to existing higher density housing units. Another area for residential uses includes the Newport Technology Center. The Center currently contains research and development uses and is largely vacant. This would entail the reuse or redevelopment of the Center, replacing existing uses with residential uses such as studios, lofts or apartments. Several mobile home parks are located in the West Newport Industrial area presently. Retention of these mobile home parks would provide options for workforce and special needs housing. Although the Mobile Home Park Overlay exists, it may become necessary to implement additional protections from market forces. Rising land values and demand for housing may place pressure on these mobile home parks to convert to higher density housing or luxury housing. The character of surrounding uses, i.e., industrial uses, may discourage such conversion. Maintaining any residential uses on the mobile home park parcels may result in exposure to potential conflicts (noise, parking, air pollution) with adjacent industrial uses (current or future) unless the entire area converts to residential uses. The North Portion may also be suitable for residential areas. While the City of Costa Mesa's current land use designations specify industrial uses north of the North Portion, discussion of replacing those uses with commercial or residential uses has arisen. Given that residential uses abut the area to the south, new residential uses might be a compatible option. The provision of additional housing opportunities in any of the four areas is consistent with the City's Housing Element goals and Workforce and Special Needs Housing Guiding Principles to provide a variety of housing types in the City, and the Economic Development Guiding Principle to maintain high residential values. An increase in residential land uses might trigger the need to provide additional public services, such as a park and a fire station. This need may not be consistent with the Economic Guiding Principle to maintain fiscal balance. Retaining the mobile home uses supports the Guiding Principle to maintain the city's existing housing stock. 0 Future new residential uses in the West Newport Industrial area might be subject to increased traffic as the result of street improvements, as identified in the Circulation Element. Future roadway improvements across the Santa Ana River, such as the 19a' Street bridge or connections across 17`h or 19a` Streets have been suggested, although opposition from adjoining communities has postponed activity to date. 3. Intensification of Medical Related Uses As Hoag Hospital is a strong presence and economic stimulus in the area there is the opportunity to capitalize on it. Allowing the intensification of medical related uses would result in a concentration of those uses, improving the economic viability of area. This option is considered for the Hospital Road Medical area and the Newport Technology Center. The option to intensify medical related uses could be applied in the Hospital Road Medical area. Currently, the uses in this area include medical offices and related uses. Intensification of medical related uses in this area could result in increased revenue for the city, supporting Economic Development Guiding Principles of maintaining fiscal balance and increasing retail sales. This option could potentially contribute to principles of developing and retaining businesses that strengthen the local economy and capitalizing on key economic centers of the community. However, traffic congestion and air pollution could also increase with development intensity in conflict with Environmental Conservation principles to minimize air quality degradation. Medical related uses may also be considered for the Newport Technology Center. This option would convert the business park to medical office or medical -related manufacturing uses. Conversion of R&D uses to medical related uses would likely be more easily implemented than conversion to residential uses, another option for the Center site. Intensifying uses at this site has the potential to increase traffic congestion in the area as the Center is not fully occupied at this time. Converting the Center to medical related uses would have the same potential benefits as those listed for the Hospital Road area, in addition to relieving current weak economic conditions at the Center. 4. RetainNewport Technology Center This option would retain the Newport Technology Center for office and research and development uses. No redevelopment or additional development activity would occur under this option. This option would not directly support Guiding Principles with the exception of the Environmental Conservation Guiding Principle to minimize air quality degradation as more intense uses would not be implemented and existing conditions would remain the same. As the Center is currently underperforming no change to this area might be counter to Economic Development principles of optimizing retail sales and strengthening the local economy. 9 Table 9.1 West Newport Industrial Development Options by Opportunity Area Development Options Op ortunity Areas c o � � d s a a O CL L Y O O N G Y O = N Z Z •� 2 a � 1 Industrial and Marine Uses X X 2 Residential X X X X 3 Medical Related Uses X X 4 Retain Newport Technology Center X 10 Beach General Plan FORMULATION GPAC REVIEW • July 12, 2004 EIP Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. The first step will be the identification of possible land use alternatives for the twelve subareas that have been selected by the General Plan Update Committee (GPUC). Following identification, the consultant team will evaluate the comparative traffic, fiscal, and environmental impacts of these options. These Geographic Subarea Discussion Papers are intended to serve as a framework for the GPAC's discussion in defining the land use alternatives for each of the following geographic subareas within Newport Beach: Banning Ranch, Airport Business Area, Lido Marina Village/Civic Center, Balboa Village, Cannery Village/McFadden Square, Corona del Mar, West Newport Coast Highway Corridor, West Newport Residential, Mariner's Mile, West Newport Industrial, Newport Center/Fashion Island and Old Newport Boulevard. It is understood that these encompass areas in which change is likely and/or policy intervention is necessary. Other areas of the City will be addressed by "global" policies that will be subsequently defined during the planning process. These papers present an overview of existing conditions, as well as a summary of key planning issues/findings affecting each subarea's land uses, as identified through the Visioning Process and the analyses in the Technical Background Report, and raised by City staff. Guiding Principles that pertain to or affect land use development of the subarea are also provided. Lastly, initial land use options for each subarea are identified for GPAC consideration, and additional land use alternatives may be identified through this process. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Preferred Land Use Plan will be selected in October. Description of Newport Center/Fashion Island Newport Center is generally located in the center of the city, north of Coast Highway between Jamboree Road and MacArthur Boulevard as shown in Figure 10-1 below. Newport Center is a regional center of business and commerce that includes major retail, professional office, entertainment, recreation, and housing in a master planned mixed -use development. Fashion Island, a major retail shopping center, forms the nucleus of Newport Center, and is framed by this mixture of office, entertainment, residential, and housing. Newport Center Drive, a ring road that surrounds Fashion Island, connects to a number of interior roadways that provide access to the various sites within the Center and to the three major arterials that service this development. High-rise office and hotels buildings to the north of the Center form a visual background for lower rise buildings and uses to the south and west. Newport Center is essentially built out with the exception of a couple of vacant strips of land in the southeast portion of the site. There is entitlement for 100 additional rooms on the Four Seasons hotel site and just less than 300,000 square feet of entitled undeveloped retail space in Fashion Island. Combined, Newport Center and Fashion Island contain commercial land uses that represent 57.4 percent of this sub area. Fashion Island, a regional mall with a mix of specialty shopping, accounts for 15.8 percent of the uses within the sub area. Newport Center consists of professional office uses (26.6 percent of the study area), two hotels (6.3 percent), multi -tenant commercial (5.9 percent), public and semi-public uses such as the Police and Fire Departments and Orange County Museum of Art and Sports Museums (2.9 percent), and entertainment (1.5 percent) uses along the perimeter of Newport Center Drive. The Center is also the site of a transportation center, located at San Joaquin Hills Drive and MacArthur Boulevard that includes a Park and Ride. A large open space area (26.1 percent) adjacent to Coast Highway and Jamboree Road in the western portion of the sub area is the site of the Newport Beach Country Club and Balboa Bay Tennis Club. Single- family attached and multi -family residential uses (10.4 percent) also are located in this quadrant. There is a considerable amount of vacant land (approximately 16 acres) between MacArthur Boulevard and Avocado Avenue. Newport Center is largely built out, but there has been discussion of future development of office, hotel, retail, and residential uses in this area. COSTA MESA Ie.I -� IftVINE 1J\iJ � � rY. + % J Figure 10.1 Regional Location of Newport CenterlFashion Island Newport Center/ Fashion Island Issues and Opportunities The following issues were identified for Newport Center/Fashion Island through the Visioning Process, findings of the Technical Background Report (TBR), and input from City staff. VISIONING PROCESS A majority of residents and businesses support keeping retail space at current levels in Fashion Island, while some are willing to support expansion of existing stores and moderate increases for new businesses. 2. A majority of residents and businesses support little or no change to Newport Center, while some are willing to allow growth for existing companies. 3. Newport Center has been identified as an area of the City appropriate for mixed -use development integrating housing and commercial or office space. 4. There is no consensus that hotels should be built in the City. However, if new hotels were to be built, a majority of resident and business survey respondents support building new hotels in Newport Center. TECHNICAL BACKGROUND REPORT Based on current zoning, there is additional development capacity in Newport Center for 100 additional hotel rooms on the Four Seasons Hotel site. There is also additional development capacity of just less than 300,000 square feet in Fashion Island. CITYSTAFF There are opportunities to improve the pedestrian circulation linkages between the properties in Newport Center in general, and in particular between Fashion Island and other properties in Newport Center. 2. There is a high level of peak -hour traffic on the major streets that provide access to Newport Center: Coast Highway, MacArthur Boulevard, and Jamboree Road, 3. There are parking issues at some locations in Newport Center. For example, the medical offices in Block 400 lack parking, and parking around the theatre in Blocks 200 and 300 is not clearly designated. 4. There is multiple ownership of the properties in Corporate Plaza, and Blocks 100, 200 and 300 bounded by Coast Highway, Newport Center Drive, San Miguel and Avocado Avenues. This ownership pattern could inhibit the reuse/intensification of properties in this area over the long term (20-30 years) in a uniform and cohesive manner. 5. The vacant parcel located between Avocado and MacArthur Blvd. south of San Miguel Drive is to be dedicated to the City for open space and possibly additional parking for the Central Library. 6. Pacific Life is one of few corporate headquarters in Newport Beach and is a significant employer. They have expressed a need to expand their operations to retain headquarters in Newport Beach. Guiding Principles The following guiding principles from the Economic Development, Community Character, Environmental Conservation, Workforce and Affordable Housing, and Mobility Discussion Papers, are relevant to land use development within Newport Center and Fashion Island. The numbering of the principles indicated below correspond to their listing in the Guiding Principles discussion papers from which they are drawn. ECONOMICDEVELOPMENT 1. General Plan policies will maintain the City's positive fiscal balance. 4. The General Plan should encourage mixed -use development. 5. General Plan policies will support City efforts to optimize retail sales capture in the community. 6. The quantity of land designated for commercial use and the development standards that regulate such uses shall reflect the market support that can reasonably be anticipated during the General Plan time horizon. 7. General Plan policies will facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. 8. Additional development entitlement needs to demonstrate significant fiscal, economic or other community benefit. 9. General Plan policies will protect the high value of residential property. 10. General Plan policies shall prepare the City to capitalize on market and demographic changes and opportunities that emerge in key economic centers of the community. 11. The General Plan shall support the careful expansion of visitor -serving businesses and facilities, including hotels and meeting facilities. COMMUNITY CHARACTER 2. Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. 3. Future development shall consider the scale, urban form, design, character and quality of the community. 0 WORKFORCE AND SPECIAL NEEDSHousm Promote a balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments including very low, low, moderate, and upper income households. 3. Consider mixed -use development as a means to create additional housing opportunities. 5. General Plan policies shall protect the high value of residential property. MOBILITY 1. Establish General Plan land uses and density/intensity limits that will have less impact on peak hour traffic. 2. Consider the potential benefits and costs (housing, social, community character, fiscal and economic) of land use and circulation system alternatives as part of the process of adopting goals regarding acceptable levels of service for the circulation system. 4. In selecting land use and circulation system alternatives, weight will be given to traffic congestion that is ongoing as well as to congestion that is limited to a few hours of the day or a few months of the year. 8. Consider urban scale development in areas where there is potential for development patterns that will minimize traffic. 9. Increase City strategies and programs to enhance the development and use of alternative transportation modes and transportation systems management. ENVIRONMENTAL CONSERVATION Minimize air quality degradation through land use practices and circulation improvements that reduce reliance on the automobile. 5. Encourage the protection and creation of public viewsheds within the City. 7. Minimize intrusion from light sources Suggested Land Use Alternatives The potential land use alternatives discussed below may be considered for Newport Center/Fashion Island, in particular at locations identified as possible "opportunity areas". As Newport Center and Fashion Island are largely built out, any significant change in the area will occur as infill, or reuse/intensification of existing parcels. Thus, the options presented below are for individual sub areas and parcels within the Center that were identified as possible opportunity areas. Opportunity areas were identified at locations where low -intensity development, underutilized properties or vacant parcels exist, or areas that have been identified for possible use in other City policy documents. These areas, described below, were identified as possible opportunity areas in which to consider one or more of the land use options presented in this section. 5 A. Civic Plaza. Located at San Joaquin Hills Road between Jamboree, San Clemente and Santa Barbara Drives, existing uses in this area include civic offices and uses such as the Police Department headquarters and a City Fire Station, as well as offices, auto uses, specialty retail and open space. This location was identified as an opportunity area because the existing intensity (low rise 2-story offices) of development allows the opportunity for intensification and/or reuse of these properties. B. Financial Plaza. Located at San Joaquin Hills Road between Santa Rosa and Newport Center Drives, existing uses in this area include office, hotel (Four Seasons), specialty retail, and multi -tenant commercial. This location was identified as an opportunity area because there is undeveloped entitlement for 100 rooms on the Four Seasons hotel site C. Block 500. Located at San Joaquin Hills Road between Santa Rosa and San Nicolas Drives, the existing use in this area is dominated by offices. This location was identified because the extensive area of surface parking presents an opportunity for reuse/intensification of existing uses and or alternative development options with the addition of structured parking. D. Avocado North. Located between MacArthur Boulevard and Avocado Avenue north of San Miguel Drive, this property is currently vacant. This area was identified as an opportunity area because its use will change based upon its inclusion in the Housing Element as a future housing site. A General Plan amendment and zone change are in process for this site to accommodate housing. E. Newport Village. Located south of San Miguel Drive between MacArthur Boulevard and Avocado Avenue, this area is currently vacant. It was identified because it was dedicated to the City for use as open space pursuant to the Circulation Improvement and Open Space Agreement (CIOSA). F. Gateway/Theatre Plaza. Located at Newport Center Drive between San Miguel and Farallon Drives, existing uses in this area include a theatre, restaurants, retail, seasonal services and office uses. This area was identified based on the low intensity of development and the opportunity for reuse/intensification of these properties over the term of this general plan update. There is also a need to establish better relationships between the uses and the location of parking for the uses in this area. G. Fashion Island. Located in the center of Newport Center this area is a regional shopping center. It was identified as an opportunity area because there is 300,000 square feet of undeveloped entitlement remaining on this property, and there is the opportunity to consider optional land uses at this location. H. Southwest Quadrant. Located on Coast Highway between Jamboree Road and Newport Center Drive, this area contains a golf -resort, hotel, and residential uses. There is a small vacant parcel in this area that may be considered for future development opportunities. I. Block 700. Located in the block bound by Newport Center Drive, Santa Cruz and San Clemente Drives, and Santa Maria Road, this parcel contains the corporate offices of Pacific 0 Life, the only tenant on the site. This area was identified because Pacific Life, a valued corporate citizen, has expressed a desire to expand on their current site. The land use options discussed below are not mutually exclusive and could be implemented in combination with one another and/or other alternatives developed by GPAC. Figure 10-2 depicts the opportunity areas and the various land use alternatives considered for each area. These land use alternatives are also presented in Table 10-1 at the end of this discussion. This table correlates the land use alternatives to specific geographic areas for which they may be considered. DEVELOPMENT OPTIONS FOR NEWPORT CENTER /FASHIONISLAND 1. Mixed Use Development This land use alternative may be characterized by vertical mixed use in a building with commercial development on the ground floor and residential on the upper floors, or as an integrated development on a large parcel that includes residential and commercial uses in separate buildings, such as currently exist in this area. Mixed -use projects under this scenario may be considered up to the height limits specified in the Zoning Code. Newport Center, with its concentration of mid- and high-rise offices and Fashion Island, represents a major employment center in the City and the region. The provision of housing as a component of a mixed use project with commercial on the ground floor and housing above, would support and strengthen the economic vitality of the area and further increase the market for the retail and support services and uses in Newport Center and provide an opportunity to heighten/improve pedestrian activity in a prime activity center of the City. Mixed -use projects would also provide the opportunity/synergy for additional complementary entertainment, cultural and recreational uses to this area. Mixed use is consistent with several guiding principals including Environmental Conservation to improve air quality due to the reduced trips that result from mixed -use projects relative to single use development. It is also consistent with Economic Development and Workforce and Special Needs Housing guiding principles that encourage the consideration of mixed use in appropriate areas. Mixed use continues to be a viable consideration for this area based upon the continue success of Newport Center, an already established mixed use development. As shown in Figure 10-2, locations that are suitable for mixed -use projects include Civic Plaza, Fashion Island, and Gateway/Theatre Plaza. 2. Residential A variety of residential product types may be considered in this area based on appropriate siting and density, including attached low-rise single-family housing, high-rise residential, and possibly senior citizen residential units. The density of these projects should be consistent with the character of adjacent and/or surrounding development, subject to the height limits expressed in the Zoning Code, depending on the location. The provision of additional housing opportunities is consistent with the City's Housing Element goals and Workforce and Special Needs Housing guiding principles to provide a variety of housing types in the City, and the Economic Development guiding principle to maintain high value residential. Further, additional housing 7 increases the local customer base for commercial uses in Newport Center and reduces traffic for those who may live and work in the area consistent with Mobility guiding principles. Residential uses would also provide additional housing opportunities within a major City and regional employment center. The success of the Colony Apartments indicates that there is market support for residential in this area. Residential opportunities may be considered in Civic Plaza, Financial Plaza, Block 500 Plaza, Block 600 and Avocado North as shown in Figure 10-2. Specifically, high density residential uses could be appropriate on the site of the Four Seasons Hotel, where views of the ocean would be available. The vacant parcel identified as Avocado North has also been identified by the City in its Housing Element for consideration as a possible site for housing. The density of the residential in the Southwest Quadrant may be considered as a guide for the density of similar attached single-family product that may be developed on other sites in Newport Center. 3. Hotel This land use alternative may constitute the development of additional rooms at the existing Four Seasons Hotel, or a new hotel. The Visioning Process and Economic Development studies identified the need and desirability for hotels as a way of attracting additional business to the community. In particular, the study identified the need for hotels with full service meeting facilities in order for the City to be competitive with ocean front hotels in nearby cities with such meeting facilities. The scale of such development could be considered at a scale similar to the existing Marriott Resort in Newport Center. The availability of conference facilities in close proximity to the large office market in Newport Center would further enhance the viability of the area. In addition to its location in a vibrant mixed -use center, the advantage of this area for hotels is its proximity to the coast, a major employment center, and the John Wayne Airport. Hotels are consistent with several Economic Development principles including capitalizing on market and demographic changes and opportunities that emerge in key economic centers of the community, and the expansion of visitor -serving businesses and facilities including hotels and meeting facilities. 4.Ofce At more than 26 percent of the land area in Newport Center, office uses are second only to retail commercial in the area. The variety of low, mid, and high-rise offices combine to form a significant employment base in Newport Center. The continued viability of some corporate entities in the area, such as Pacific Life, will depend on their ability to grow and expand over the term of this general plan update. The opportunity to expand within their current environs suggests that the opportunity for expansion of existing office uses be considered as an alternative for the long-term growth and viability of this area. The scale and/or intensity of the offices may vary in height depending on their location. Possible locations for office expansion and/or reuse are in Civic Plaza, Financial Plaza, Block 500, and Pacific Life in Block 700. The multiple - ownership of properties in Gateway/Theatre Plaza may lend itself to the reuse and/or expansion of office opportunities over the long term (20-30 years). 5. Entertainment /Cultural Uses Entertainment and cultural uses such as theatres, galleries, art schools, and specialty museums, may be considered for appropriate locations in Newport Center. The addition of these uses with appropriate pedestrian connections would enhance pedestrian activity in the Center. These uses may be located in GatewayfMeatre Plaza, which is currently designated for these uses in the City's General Plan and to complement the entertainment uses that currently exist in this area such as the Big Newport Theatre. Civic Plaza, where the Orange County Museum of Art is located, also could be an appropriate location for these uses. These uses are consistent with Economic Development principles as these uses are a type of visitor service use and they have the potential to contribute to the continued viability of Newport Center consistent with the guiding principal to capitalize on market opportunity in key areas of the community. These types of uses are also be consistent with Mobility guiding principles regarding land uses that are not peak hour traffic generators. 6.Open Space Open Space is expected for one of the few vacant parcels remaining in Newport Center as shown in the Newport Village Area. This area is scheduled to be dedicated to the City for open space use pursuant to provisions of the CIOSA. There is a need for additional parking for the Central Library, south of this site, and part of this open space site could be considered to meet that need. This open space option is consistent with the Community Character guiding principle to balance developed lands with adequate open space. 7. Expansion of Retail Uses Approximately 300,000 square feet of additional retail space is currently entitled for Fashion Island. This expansion should occur based upon market demand so that it is consistent with Economic guiding principles including expanding the capture of local retail sales dollars and maintaining a positive fiscal balance in the community. Whether this amount of development should be increased over the term of this update of the General Plan will depend on factors such as market demand, competition among other potential uses on the site, and environmental factors such as traffic. 8. Draft Newport Center Lone Ranee Plan In response to a request by the Irvine Company to expand Newport Center, the City produced a Draft Newport Center Long Range Plan. This plan, which contains goals, objectives, development standards, and design guidelines for the long-range growth and expansion of Newport Center, was not adopted because the expansion request was withdrawn. This draft plan remains a viable alternative that may be considered as a development option. The guiding principles for the expansion of Newport Center are summarized in the plan as follows: ■ Regulate development intensity by using vehicle trip generation data. ■ Promote economic development that provides jobs, services, revenues, and opportunities in a multi -use and fiscally balanced downtown center. 9 Maintain, strengthen, and enhance the original design concepts through the development of design guidelines for Newport Center. Overall, the plan acknowledges the significance of Newport Center as a critical component of the City's economy, character and identity, and the policies contained in the plan are intended to encourage its continued success. Under this plan, the long-range vision for the area is intended to address existing and future development opportunities for commercial, retail, residential and office expansion, as well as additional open space. The plan contains land use policies that establish development intensity limits that range from a height of 35' feet to 300' and allow additional traffic capacity for specified properties/uses within the Center. The additional capacity for Newport Center, correlated to the number of additional vehicle trips allowed under this plan, is 1.3 million square feet and 165 residential units. The additional development intensity allowed under this plan is intended to encourage a diversified and fiscally balanced mix of land uses in Newport Center to provide for a regional cultural and employment destination center. 9.Other Improvements to Newport Center/Fashion Island An area of improvement that may be considered in any future plans for Newport Center and Fashion Island is pedestrian circulation. A plan to unify the walkways and streetscapes to enhance pedestrian linkages among the various activity areas, such as the theatres, museum, and Fashion Island, would improve accessibility throughout the Center. Table 10.1 Newport CenterlFashion Island Development Options by Opportunity Area Oppor unity Areas N f0 C n, �+ tC O- N {�" m 0 m O @ G- O p O ZCM 'G = `�- .0 N tO c O w •C C L0 Y C O 3 3 0 0 N r7 U C� I.L GO Q Z C9 LL y m Development Options a co C3 ci La Li cri _ _ 1 Mixed -Use Development X X X 2 Residential X X X X X 3 Hotel X 4 Office X X X 5 Entertainment/Cultural Uses MT 6 Open Space 7 Expansion of Retail Uses X 10 Citv ofNewport Beach General Plan FORMULATION FOR GPAC • July 12, 2004 EIP Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. The first step will be the identification of possible land use alternatives for the 12 subareas that have been selected by the General Plan Update Committee (GPUC). Following identification, the consultant team will evaluate the comparative traffic, fiscal, and environmental impacts of these options. These Geographic Subarea Discussion Papers are intended to serve as a framework for the GPAC's discussion in defining the land use alternatives for each of the following geographic subareas within Newport Beach: Banning Ranch, Airport Business Area, Lido Marina Village/Civic Center, Balboa Village, Cannery Village/McFadden Square, Corona del Mar, West Newport Coast Highway Corridor, West Newport Residential, Mariner's Mile, West Newport Industrial, Fashion Island/Newport Center, and Old Newport Boulevard. It is understood that these encompass areas in which change is likely and/or policy intervention is necessary. Other areas of the City will be addressed by "global" policies that will be subsequently defined during the planning process. These papers present an overview of existing conditions, as well as a summary of key planning issues/findings affecting each subarea's land uses, as identified through the Visioning Process and the analyses in the Technical Background Report, and raised by City staff. Guiding Principles that pertain to or affect land use development of the subarea are also provided. Lastly, initial land use options for each subarea are identified for GPAC to consider, and to stimulate their identification of additional land use alternatives. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Preferred Land Use Plan will be selected in October. Description of Old Newport Boulevard This area is situated east of Newport Boulevard and runs from 15th Street at the north end to Catalina Drive at the south end. Refer to Figure 11.1 for the area's regional location. Old Newport Boulevard was formerly the primary roadway leading into the city from the north. A residential neighborhood lies directly to the east, while Hoag Hospital is situated to the west 1 across Newport Blvd. This area is primarily commercial (71.3 percent of the area) comprised mainly of professional offices, and multi -tenant commercial uses. Secondary uses include personal services, restaurants, and specialty shopping such as home furnishing stores and beauty salons. Most specialty retail appears to occupy converted residential buildings. Recently, this area has experienced a transition towards increased medical office uses. This transition is likely attributable to the proximity of Hoag Hospital. There are two vacant buildings at the northern end of the study area, (3.5 percent of the area), as well as a few auto -related uses (4.7 percent) such as auto service repair. The mix of uses is not always complementary, with auto repair uses adjacent to hair salons and/or specialty retail. This area is not pedestrian -oriented. While there are some walkable areas, the boulevard is wide and there are a mix of uses and lot configurations that do not create a consistent walkway. This area is governed by a Specific Plan. Personalservices commercial along Old Newport Blvd. COSTA MESA scale 1s not pedestrfan•friendly r IRVINE Figure 11.1 Regional Location of Did Newport Blvd. 2 Old Newport Boulevard Issues The following issues were identified for the Old Newport Boulevard area through the Visioning Process, Technical Background Report (TBR) analyses, and by staff. VISIONINGPROCESS ■ Visioning participants felt Old Newport Boulevard could benefit from revitalization. TECHNICAL BACKGROUND REPORT ■ The expansion of Hoag Hospital offers opportunities for the development of medical - related uses within the Old Newport Boulevard area. ■ Old Newport Boulevard contains a fragmented mix of uses including professional office, personal services, auto -related commercial and residential uses. This mix is likely a result of the boulevard's evolution from a retail thoroughfare and major entry way into the city to a secondary roadway. Retail commercial uses have recently begun to be replaced with medical offices. ■ The Old Newport Boulevard area is in a transition stage. Should the area change to accommodate residential or other uses, or remain a retail -service area? ■ Multiple ownership of individual small parcels inhibits the area's cohesive and integrated development. CITYSTAFF ■ The current mix of land uses in the Old Newport Blvd. area results in potential incompatibility issues; e.g., noise and aesthetic impacts on personal services uses from auto repair services. ■ Parcels vary in size and depth; parcels west of Old Newport Blvd. are very deep and vary in widths, while parcels east of Old Newport Blvd. are narrow and shallow, and abut residential uses. ■ Parcels west of Old Newport Blvd. have dual frontage, along Newport Blvd. and along Old Newport Blvd. Access to those parcels is not available from Newport Blvd. and visibility to these properties has been diminished since the realignment of Old Newport Blvd. ■ Older craftsman style residences are present along Old Newport Blvd.; there may be the potential to relocate these or convert these structures for other uses. ■ Some residential units at the periphery of the area have been converted to commercial uses. Guiding Principles The following guiding principles are from the Economic Development, Community Character, Environmental Conservation, Workforce and Special Needs Housing, and Mobility Discussion Papers, and are pertinent to land use development within the Old Newport Boulevard area. (Please note: numbers correspond to Guiding Principles listed in their entirety under separate cover.) ECONOMICDEVELOPMENT 1. General Plan policies will maintain the City's positive fiscal balance. 2. General Plan policies will encourage the revitalization of older commercial areas. 5. General Plan policies will support City efforts to optimize retail sales capture in the community. 7. General Plan policies will facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. 8. Additional development entitlement needs to demonstrate significant fiscal, economic or other community benefit. 9. General Plan policies will protect the high value of residential property. COMMUNITY CHARACTER 2. Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. 3. Future development shall consider the scale, urban form, design, character and quality of the community. WORKFORCE AND SPECIAL NEEDS HOUSING 1. Promote a balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments including very low, low, moderate, and upper income households. 2. Maintain quality residential development through the application of sound planning principles and policies that encourage the preservation, conservation and appropriate redevelopment of the City's housing stock. 4. Consider the rezoning of under -performing commercial areas to allow residential or mixed -use development. 5. General Plan policies shall protect the high value of residential property. MOBILITY 1. Establish General Plan land uses and density/intensity limits that will have less impact on peak hour traffic. 2. Consider the potential benefits and costs (housing, social, community character, fiscal and economic) of land use and circulation system alternatives as part of the process of adopting goals regarding acceptable levels of service for the circulation system. 9 5. The community will accept additional congestion when it chooses to maintain the current urban form/community character by limiting roadway widening or other circulation system improvements. ENVIRONMENTAL CONSERVATION 3. Minimize air quality degradation through land use practices and circulation improvements that reduce reliance on the automobile. 6. Minimize the exposure of people to noise hazards. DEVELOPMENT SCENARIOS For the Old Newport Boulevard area, several preliminary development scenarios have been identified, as discussed below. These options are not mutually exclusive and could be implemented in combination with one another and/or other scenarios developed by GPAC. Figure 11.2 shows the Old Newport Blvd. area and illustrates the potential improvements discussed below. 1. Existina Specific Plan This option calls for enhancing the existing retail commercial district with an improved appearance. The Specific Plan allows for a commercial and mixed -use district with retail and office uses. Improvements included in the plan would involve entry point and streetscape enhancements, landscape standards, and improved access, visibility and parking. For instance, the plan suggests a median parking island concept that would be implemented in the center of Old Newport Blvd. This would provide a landscaped parking area, enhancing the area's physical attractiveness and augmenting the parking supply. The plan would result in an improved business district with a pedestrian -oriented focus. Mixed -use commercial/residential development with retail support uses would be encouraged. While the existing Specific Plan encourages mixed use development in the area, the current maximum allowed floor area ratio (FAR) of .75:1 has not been found to be economically viable. Rather a FAR of 2:1 has been shown to be more viable in the real estate market. See Figure 11.3 for land uses allowed under this Specific Plan. Retail viability has been uncertain in this location since the boulevard's realignment. New retail uses alone may not provide enough of an impetus to revitalize the area. Therefore it is likely that the addition of new uses in tandem with physical improvements would be necessary for this option to be successful. This option supports the Economic Development Guiding Principles to encourage the revitalization of older commercial areas, encourage mixed -use development, and optimize retail sales. Economic Development Guiding Principles to attain fiscal balance and protect the high value of residential property could also be supported by this option. Additionally, the development of the specific plan potentially supports the Economic Development Guiding Principle to facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. The implementation of the Specific Plan would be consistent with the City's Housing Element goals and Workforce and Special Needs Housing Guiding Principles to provide a variety of housing types in the City, encourage mixed -use development, and consider rezoning under- performing commercial uses. This option would likely support the Community Character Guiding Principle to maintain and enhance the beneficial and unique character of the business district. eographic Subareas Land Use Policy Formulation: Old Newport Boulevard r {42 �/•. `f i. ..�h 1* � .� � pduF•l ,t h�� 'I �� .t'`.iaR>My"+1M+Kw +.. +�,. ���I� ,. �,�;; �b�Jth •y`t+ k�. as�{s � �4: ,= r h a a �.�1 r 5 P�,rv,c s •.tx�. r x 4 r � ,h" >t P � r ry7. ! � i� i iti.��•� ♦ sy\i� 4.�. � �O 1 r YTS �ysy O t r 3 r C 3 3--�- L Figure 113 Old Newport Boulevard Specific Plan 2. Medical Related Uses This option would result in the conversion of retail and commercial uses to medical office or ancillary medical uses to establish a specialized medical district. The proximity of Hoag Hospital suggests this would be a viable option for the area as medical related uses have already flourished north of the Hospital. Conversion of the existing commercial uses, would ameliorate the incompatibilities currently experienced and would result in a more cohesive development pattern. Consolidation of the smaller parcels would facilitate redevelopment of the area, making new development more economically viable. For instance, parking for multiple parcels could be shared in a single parking area, instead of having to accommodate parking requirements on very small parcels. This option supports the Economic Development Guiding Principle to encourage revitalization of older commercial areas, and optimize retail sales by capitalizing on an existing local economic stimulus, Hoag Hospital. The option potentially supports the Economic Development Guiding Principle to facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. This option would not address Workforce and Special Needs Housing Guiding Principles. However, the option would be consistent with the Mobility Guiding Principles to have less impact on peak hour traffic, as medical uses would likely generate continuous moderate levels of vehicle trips. 3. Residential Uses Residential uses continue to be in high demand throughout the region. Rising land values have caused under-utilized properties to convert to higher yielding land uses such as single-family residential uses. There is an opportunity to capitalize on this housing trend by converting the Old Newport Blvd. area into a residential neighborhood. Three versions of this option are described below. A.) Residential. This option could be applied as primarily residential, converting the area to a residential neighborhood with a limited amount of neighborhood supporting uses. This option might best be applied reconfiguring Old Newport Blvd. with consideration of its closure to through traffic from Newport Blvd. to protect residences from noise, traffic and related impacts. B.) Mixed -Use Development. Another option would be to allow mixed -use residential providing greater flexibility of uses. Retail services could continue to be provided along the ground floor, serving the existing surrounding neighborhoods. Housing and offices could be developed at two to four stories above the retail uses. This would allow the area to form a buffer for the existing residential neighborhood to the east, providing the opportunity to create a better transition from Newport Blvd. while still accommodating much desired housing. C.) Medical Related Housing. A medical related housing option would encourage short- term housing uses such as convalescent care facilities, surgery recovery centers and other short-term rehabilitation uses. These facilities could address short-term accommodation needs related to local medical clinics and/or Hoag Hospital. All three residential options would likely be facilitated by parcel consolidation as current conditions present small and inconsistently sized parcels. The provision of additional housing opportunities is consistent with the City's Housing Element goals and Workforce and Special Needs Housing Guiding Principles to provide a variety of housing types in the City, encourage mixed -use development and consider rezoning under -performing commercial uses. Development of additional residential uses would help meet the Workforce and Special Needs Housing Guiding Principle to provide a balanced residential community of varying housing types and offer an opportunity to provide affordable housing. The residential options also support- the Economic Development Guiding Principle to maintain high residential values by improving uses in the area. Residential options may not address the Community Character Guiding Principles to maintain the current character of the business district, but these options would likely enhance the urban form, design and quality of the community. 0 Selecting the mixed -use housing could be more significant to maintaining the City's fiscal balance and optimizing retail sales capture because of its retail related benefits. Converting to residential only would decrease retail sales and create an additional need for public services. The Mobility Guiding Principle related to peak hour traffic would be best addressed by the mixed -use option as retail uses do not generally produce high peak hour trips. _f ASSOCIATES Memorandum To City of Newport Beach City Council and Planning Commission From Woodie Tescher, EIP Associates Subject Guiding Principles for the General Plan Update Date August 6, 2004 INTRODUCTION In May 2004 the General Plan Advisory Committee (GPAC) began a process to define Guiding Principles that will be used as the basis for framing and assessing the land use alternatives for the General Plan Update. Essentially, these principles will function as benchmarks for the development of land use alternatives and will constitute the rules by which the alternatives will be judged. Guiding Principles may be thought of on a level with General Plan goals, from which more detailed policies and implementation measures will be developed. The Guiding Principles elaborate and expand upon the Vision Statement that was defined through the public process during the past year and a half. Five sets of Guiding Principle discussion papers were developed that address Economic Development, Community Character, Workforce and Special Needs Housing, Mobility, and Environmental Conservation issues. Each discussion paper contains Guiding Principles and descriptions of their applicability and implications for land use decisions. The Guiding Principles have been reviewed by the GPAC and revisions were incorporated into the full text document to reflect the comments received. This was reviewed by the General Plan Update Committee (GPUC) on May 10, 2004 and a joint study session of the City Council and Planning Commission on June 22, 2004. GPUC comments were summarized in the meeting minutes and City Council comments in EIP's July 28, 2004 memorandum. These were forwarded to the Planning Commission for consideration in its deliberations on August 5, 2004. The Commissions recommended changes to the GPAC-approved Guiding Principles are presented below, with additional text indicated by underline and deletions by stt&eeut. EIP AssocIATEB 12301 WILSHIRE BOULEVARD SUITE 430 Los ANGELES, CA 90025 Telephone (310) 268-8132 Facsimile (310) 268-8175 LIST OF ALL GUIDING PRINCIPLES Refer to the full text Discussion Papers for the summation of key issues, opportunities, and applications of the Guiding Principles listedbelow. Note: The Planning Commission recommended that the Guiding Principles be flexible to consider trade-offs among potentially competing Principles to account for planning objectives that may be unique to a specific property or condition. To this end, the mandatory direction of the GPAC's Principles ("shall" and "will") have been revised as general benchmarks ("should" and "encourage"), which will be reviewed on selection of a preferred land use plan and may be re -worded as final plan policies are prepared. Discussion Paper:L Guiding Principles for Economic Development 1. General Plan policies will -should maintain the City's positive fiscal balance. 2. General Plan land use policies will -should facilitate an economically viable concentration of marine uses. 3. General Plan policies will -should encourage the revitalization of older commercial areas. 4. The General Plan should encourage mixed -use development. 5. General Plan policies will -should support City efforts to optimize retail sales capture in the community. 6. The quantity of land designated for commercial use and the development standards that regulate such uses shall -should reflect the market support that can reasonably be anticipated during the General Plan time horizon. 7. General Plan policies will -should facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. 8. Additional development entitlement needs to should demonstrate significant fiscal, economic or other community benefit. 9. General Plan policies will -should protect the high value of residential property. 10. General Plan policies shall -should prepare the City to capitalize on market and demographic changes and opportunities that emerge.in key economic centers of the community. 11. The General Plan shall -should support the careful expansion of visitor -serving businesses and facilities, including hotels and meeting facilities. 12. The General Plan shall -should offer a distinct land use concept and policy framework for the Airport Area. Page 2 Discussion Paper 2: Guiding Principles for Community Character 1. Protect and, where feasible, enhance the natural setting that contributes to the character and identity of Newport Beach and the sense of place it provides for its residents and visitors, 2. Maintain and, where feasible, enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. 3. Future development shall -should consider the scale, urban form, design, character and quality of the community. 4. Balance developed lands with adequate open space and recreation areas and preserve opportunities for maintaining healthy lifestyles in Newport Beach. 5. Preserve the community's heritage. Discussion Paper 3: Guiding Principles for Workforce and Special Needs Housing 1. Promote a balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments including very low, low, moderate, and upper income households. 2. Maintain quality residential development through the application of sound planning principles and policies that encourage the preservation, conservation and appropriate renewal of the City's housing stock. 3. Consider mixed -use development as a means to create additional housing opportunities. 4. Gensider-Encourage the resening-redevelopment of under -performing commercial areas to allow residential or mixed -use development. 5. General Plan policies shall -should protect the high value of residential property. 6. The General Plan should preserve, promote and respect the existing goals and policies set forth in the City's currently certified Housing Element. Discussion Paper 4: Guiding Principles for Mobility and Alternative Transportation Modes 1. Establish -Encourage General Plan land uses and density/intensity limits that, on balance, will have less impact on peak hour traffic. 2. Consider the potential benefits and costs (housing, social, community character, fiscal and economic) of land use and circulation system alternatives as part of the process of adopting goals regarding acceptable levels of service for the circulation system. Page 3 3. Regional traffic will be included in the analysis of land use alternatives, but such traffic should not be the sole reason for rejecting a land use alternative that would have net benefits to Newport Beach. 4. In selecting land use and circulation system alternatives, weight -greater scrutinv will be given to uses that create traffic congestion that is engeing as well as `e occurs throu out the day compared to uses that create congestion that is limited to a few hours of the day or a few months of the year. 5. The community will -may accept additional congestion mvhea-if it chooses to maintain the current urban form/community character by limiting roadway widening or other circulation system improvements. 6. Consider establishing a different level of service standard for the airport area, with eensideratien subject to evaluation of possible impacts on residential areas. 7. hnprove, where feasible, parking supply and use of existing resources, and reduce congestion in tourist areas. 8. Consider urban scale development in areas where there is potential for development patterns that will minimize traffic. 9. Encourage the development and use of alternative transportation modes including bicycles and mass transportation, and imvlementation of transportation systems management. 10. Plan the arterial roadway system to accommodate projected traffic at a level of service acceptable to the community while minimizing neighborhood intrusion. Discussion Paper 5• Guiding Principles for Environmental Conservation 1. Encourage the uRrotechion and -rehabilitation or enhancement; of terrestrial and marine habitats located within the City through careful siting of future development. 2. Encourage the lzprotection and improvement of water quality within the bay, estuaries, tidelands, and ocean. 3. Minimize air quality degradation through land use practices and circulation improvements_ . 4. Encourage the maintenance of natural landforms. 5. Encourage the protection and, where feasible and appropriate, creation of public viewsheds within the City. people6. MaL-Aw the exposure of to neise hazards; Page 4 Beach General Plan Apr11 2 16,2004 EIP Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May2004, the Newport Beach General Plan Advisory Committee (GPAQ will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. These will indicate the areas of the City in which existing uses and densities will be conserved and those areas in which change is anticipated ormay be encouraged. General direction regarding these areas was received from the public during the Visioning Process. As a result, a number of specific sub -areas have been identified by the General Plan Update Committee (GPUQ as "targeted areas" for which the GPAC will consider one or more land use alternatives. Illustrative of the areas to be considered are Banning Ranch, the John Wayne Airport business park/industrial area, Mariners Mile, West Newport Industrial area, Old Newport Boulevard, and Central Balboa. As the first step in the upcoming process, the GPAQ in its April meetings, will define the GuultrgPiit*lz that it will use as the basis for framing and assessing the land use alternatives. Essentially, these constitute the `° tree" fundamental rules, or benchmarks, by -which all alternatives will be judged. Theywill elaborate and expand upon the Vision State wa that was defined through the public process during the past year and a half. These Priit*les mayapplyto environmental values that can influence the location and density of development, such as a principle that "no development shall be pemnitted in riparian coastal canyons." They may apply to values regarding community character, such as a principle that "new development shall respect and maintain the scale, character, and quality of the community." Additionally, they mayapplyto specific economic sectors such as supporting economic activities associated with the harbor or supporting the revitalization of older commercial areas. In terms of the level of detail for the Gtdd TP�indpla, they maybe thought of on a level with General Plan gazls, from which more detailed policies and.implementation measures will be developed. Many, if not all, of the GuidTPr*41es will be expressed in some form as gaals in the draft General Plan, but for now the focus is on their function as benchmarks for developing and evaluating the land use alternatives. Guiding Principles for Economic Development Once the GaadTPri 41a have been defined, the GPAC will identify one or more land use alternatives for the twelve "targeted" sub -areas of the atyin its May through July meetings. For each sub -area, Disaasion Papen will be distributed that summarize its existing conditions, key planning constraints and opportunities, and possible land use strategies. Following their identification, the alternatives will be evaluated for their comparative impacts on traffic, fiscal costs and revenue, and environmental resources. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a PnferredLand Use Plan will be selected during October. The following section summarizes the economic issues raised in the Visioning Process, as described in the document, "Community Directions for the Future." The subsequent section summarizes the consultant's earlier retail commercial market analysis and the fiscal impact analysis. Based on these summaries, the paper provides a set of suggested Guiding Principles for economic development, for consideration by the Economic Development Committee and by GPAC The EDC is integral in these steps; the committee's discussion and recommendations are timed specificallyto refine those principles, producing value-added effort that can be used by the GPAC in their task of balancing the production of positive economic benefit while preserving and protecting the quality of life of the City and its residents. Summary of Economic and Fiscal Issues The Visioning Process The City initiated a Visioning Process in January of 2002 that culminated in publication of the Community Directions for the Future report in January 2003. The Visioning Process included a series of events, meetings and public information gathering programs and resulted in a vision statement for Newport Beach and substantial public input on a wide range of issues for consideration in the General Plan Update. The summary information presented here is limited to statements and issues related to economic development or the fiscal health of the City. The vision for the future of Newport Beach describes the City s desired end state and what the communityhopes to have achieved by2025. Under the heading, "Growth Strategy, Land Use and Development," the vision states in part, " We have a conservative growth strategy that emphasizes residents' quality of life — a strategy that balances the needs of the various constituencies and that cherishes and nurtures our estuaries, harbor, beaches, open spaces and natural resources. Development and revitalization decisions are well conceived and beneficial to both the economy and our character...:' 2 Guiding Principles for Economic Development The Visioning Process also gained public input on a range of more specific issues. There was broad community consensus on some economic issues, and more diverse opinion on others. The issues with consensus include the following: ■ The vast majority of residents view Newport Beach as primarily residential beach town. While most recognize the City's attractiveness to tourists, they were less interested in defining the City's identityas a tourist destination. ■ In a survey of business owners, the City's location within the County, its physical beauty, and the purchasing power of the community are listed as exceptionally attractive attributes. ■ General consensus exists that the City's harbors and beaches must be protected and enhanced as the most cherished resources. GPAC members posited that as harbors and beaches are improved as recreational areas, visual and economic benefits would follow. ■ People are in general agreement that certain areas of the City need revitalization, including Balboa Village, Mariner's Mile, Old Newport Blvd., Cannery Village, Central Balboa Peninsula, McFadden Square, West Newport, and the mixed residential/industrial area above Hoag Hospital. GPAC members agree that the City should be proactive in creating a revitalization vision to help guide future private development. ■ A couple of the visioning events raised the issue of mixed use, integrating housing and commercial or office space. Areas deemed appropriate for mixed use include Balboa Village, Mariner's Mile, Cannery Village, Lido Marina Village, McFadden Square, and the Airport Business Area and Newport Center. ■ GPAG and ethers Visioning process participants agreed that the Cityshould consider re -zoning excess and underutilized commercial lands sedevelepment. A divergence of opinion exists on the following economic development issues. ■ People expressed mixed opinions about the potential impact of economic development on the City, with business owners being slightly more in favor of economic development than residents. The concern here is whether economic development will detract from residents' quality of life. However, when asked if the City should encourage growth in the local economy to help pay for municipal services, 67 percent (224) of those who responded to the newsletter questionnaire said yes, although there was disagreement about how that should be done. ■ Participants were divided on whether the City should continue to accommodate job growth. Many felt it is a question of the type of jobs and associated impacts. Those who 3 Guiding Principles for Economic Development did express support for growth state that the City should "accommodate" but not "promote" additional employment opportunities. ■ Participants in the visioning program events were overall in favor of tourism, but divided on providing more tourist accommodations, including lodging. However, if new hotels are to be built, most respondents agree they should be concentrated in the Airport Business Area and Newport Center. ■ While people want the Cityto set firm constraints on development, including expansion of employment centers and hotels, additional development maybe acceptable in certain areas under certain conditions. Fashion Island. A majority -of residents and businesses support keeping retail space at current levels, but many are still willing to back expansion of existing stores and moderate increases for new businesses. Newport Center. A majority of residents and businesses support little or no change to Newport Center. But some are willing to allow growth for existing companies. Airport Business Center: Participants are split on support for development, but some agreement exists over the appropriate types of development. People are comfortable with low-rise office buildings, but would not like to see high rise offices or more industrial development. The groups were split about adding more retail space, including big boxes, in this area. Economic Studies by Applied Demlopment Economics, Inc. (ADE) ADE has prepared a commercial market study, published in December 2002, and a fiscal impact analysis, published in revised form in January2004. In this process, ADE has also interviewed a number of business people in the community. The following is a synopsis of issues and information gained from this work Retail Commercial As an overall conclusion, it can be fairly stated that the City does verywell in serving the retail shopping needs of both residents and visitors. Although the balance between demand and sales is very close, the city actually captures large amounts of spending in some categories from the surrounding region, while losing local spending in other categories. ■ The City's retail base is particularly strong in boats, autos, restaurants, furniture, apparel and specialty retail stores. ■ Conversely, relatively large sales leakages occur in other general merchandise, family clothing, discount department stores and home improvement store categories. Most 4 Guiding Principles for Economic Development of these spending categories represent "big boa" retail store categories that require large tracts of land and seek more central locations than tourist oriented coastal areas. Such uses could possibly be located in the Airport area and in the other areas near the Highway73 corridor, along with additional service commercial/flex space and car dealerships. ■ The commercial centers in the coastal area largely serve the visitor. market and do not capture a large proportion of residents' spending, with the exception of Corona del Mar, which has the broadest base of local -serving retailers. ■ Except for the Balboa Village area, most of the coastal commercial centers perform adequately in terms of sales per square foot among existing businesses. In Balboa Village, the average is relatively low in a number of the visitor -serving store type categories, reflecting the less accessible location and attractiveness of this older commercial area. Questions have been raised about possibly reducing the amount of commercial zoning in this area ■ In terms of opportunities for new retail establishments in the coastal subareas, the focus should be on retail categories that have sales leakage throughout all of Newport Beach and would also be at the appropriate scale of commercial development. Certain specialty retail categories such as music and bookstores would fit these criteria. ■ In Mariners Mile, there maybe some pressure to transition sites devoted to boat sales to more intensive uses. ■ Lido Marina Village may see pressure for redevelopment as retail uses underperform. Hotels/Motels ■ While Newport Beach has a variety of meeting facilities, major convention centers are mainly concentrated in Anaheim More recently, Huntington Beach's new waterfront development poses competition for Newport at the small to mid -size business meeting scale. The lack of larger facilities in Newport limits the City's business trade potential. Marine Industry ■ Economic pressure continues to replace shipyards and non -water dependent manufacturing/repair services with residential uses. ■ Marine proponents would like to see greater use of limited public shore access sites to increase visitorship 5 Guiding Principles for Economic Development The Harbor Commission proposes a proactive -sustainable growth option for marine uses that projects a diversification, consolidation and more efficient grouping of marine uses and water -dependent activities (see attached letter from the Harbor Commission). Office/Industrial Uses ■ Potential exists for transition of older properties in the Airport Area to more intensive use, as well as the addition of major retail uses in the Airport Area on sites currently occupied by industrial or office uses. ■ Economic pressure threatens the viability of light industrial uses in the West Newport area ■ There may be the possibility for expansion of medical uses in the hospital area, patticularlymedical R&D. ■ The City -would benefit from an economic transition in existing office and industrial spaces toward businesses that generate greater sales tax through off -site product sales. The sales tax is such an important component of the City's fiscal picture, it would be important to consider ways to encourage firms that generate taxable non - retail sales and taxable business -to -business transactions. Fiscal Analysis ■ The fiscal analysis estimates the current cost/revenue balance generated by existing broad land use categories. In general, existing residential, office and public land uses represent net cost centers for City government, while retail, lodging and marine industry land uses generate excess public revenues and help the City maintain an overall fiscal balance. It should be noted that much of the adverse fiscal impact of existing residential units stems from the fact that their assessed values are depressed well below market value due to limits imposed byProposition 13. New residential units, or even most existing units that are resold in the current market, do pay sufficient propertytaxes to cover City service costs. This was demonstrated in a focused analysis of Newport Coast mentioned below. The report also points out that the residential population supplies much of the purchasing power that generates sales tax from retail businesses, and the office -based businesses and industrial uses create much of the household income that also feeds this economic activity. Therefore, the bottom line fiscal cost/revenue balance should not be viewed as the only economic dimension for evaluating the City land use mix. ■ The analysis of the Newport Coast development illustrates the fact that many residential neighborhoods can be a positive fiscal contributor to the Citywith sufficiently high property values. Although only -Newport Coast received a special 6 Guiding Principles for Economic Development area analysis, similar results could be expected in other neighborhoods with high property -values. ■ Visitor -serving land uses overall generate a positive fiscal benefit for the City, primarily due to increased sales tax and TOT revenues from visitors. This analysis factors in the added cost to the City of maintaining services to the beach areas, as well as demand for other services generated bytourists. ■ The projection of fiscal impacts for buildout of the existing City General Plan indicates that the potential exists for substantial increases in commercial uses, generating a more favorable fiscal balance than exists currently. Suggested Economic and Fiscal Guiding Principles 1. General Plan policies will maintain the City's positive fiscal balance. Discussion: The fiscal analysis describes the fiscal relationships among the various land uses in the City. It underscores the need for a strong commercial sector to balance the service demands exerted by residential neighborhoods and businesses in office and industrial spaces that provide quality jobs and high incomes but not high tax revenue. In the current fiscal environment, the property tax has subsided diminished as a prifwyrevenue source for local government in favor of sales taxes, transient occupancy -taxes and various direct user charges and fees that have better capacityto grow with the inflation in City service costs. This guiding principle, therefore, mainly speaks to the need for a balanced land use plan that provides sufficient opportunities for fiscally positive land uses (retail, lodging, marine industry) to generate revenues for services'to other land uses included in the plan. The principal may also be applied to major development projects or broader revitalization efforts to ensure that new development is designed and implemented in the most cost-efficient manner possible. 2. General Plan land use policies will'facilitate a erWeal mass an economically viable concentration of marine uses. Discussion: The fiscal analysis concludes that marine uses as a whole generate a positive cost/revenue balance for City govemment. In part this is due to the added property tax that boats generate, but mainly results from the fact that the marine environment in the City constitutes the major visitor attraction, and visitor spending contributes to the fiscal benefit of commercial and lodging uses. The fiscal analysis also points out, however, that there is significant economic competition in the waterfront area and that the number of marine businesses in Newport Beach has declined over at least the past ten years. Local business owners in this industry have raised the issue of whether the marine industry presence in the City may decline 7 Guiding Principles for Economic Development below sustainable levels, resulting in a general loss of the economic benefit of boating and other marine activities in the City. There is not sufficient information currently to determine whether this is a likely threat or to define what the threshold of critical mass should be for this industry, if any. However, this could be evaluated as part of the General Plan alternatives process. This guiding principle would confirm the City's recognition that marine uses are an important part of the City's economy that should be supported in the updated General Plan. 3. General Plan policies will encourage the revitalization of older commercial areas. Discussion: Both the Visioning Process and the Commercial Market Analysis have identified areas of the Citythat are approaching economic obsolescence or which are underutilized. The GPAC has suggested that the City should proactively establish guidelines for the private sector to transform older properties'into 'viable business or residential uses that provide afresh vitalityto these areas while maintaining their essential character. The GPAC suggested some parameters for revitalization in Newport Beach, such as making commercial areas nieer more attractive without making them bigger, respecting historic places and ambiance, and creating pedestrian -dense areas with high quality restaurants. Many of the areas identified for revitalization are also appropriate for mixed -use development. This is consistent with the suggestion in the Visioning Process that underutilized commercial land maybe rezoned for residential or mixed use. However, it is important to recognize any Coastal Act limitations on land use that nW apply to some of these areas. 4. The General Plan should encourage mixed -use development Discussion: Participants in the Visioning Process as well as the City's Economic Development Committee (EDC) have indicated support for increasing opportunities for mixed -use development in Newport Beach. Mixed -Use development can take the form of multiple uses, in which residential, retail or office uses maybe sited adjacent to each other, or be in the form of single development projects that combine mixed uses into multiple stories of development, such as retail commercial on the ground floor with residential or office space above. It is important to encourage land use combinations that are mutuallysupportive. Residential development creates local spending power to support retail development. Office uses also create daytime spending power as well as creating jobs for residents who may occupy the same building or adjacent units. Light manufacturing or marine uses may also be combined with commercial or residential uses in the proper setting, provided such uses are free of impacts from noise, odeors, etc. For Newport Beach, it is also critical to maintain the proper scale for mixed -use development. There are many good mixed -use urban design projects in smaller city downtowns, which are appropriately scaled to the Guiding Principles for Economic Development residential communityenvironment desired byNewport Beach residents. Examples in Santa Barbara, Los Gatos and Brea have proven that it is critical that these developments maintain very high qualitystandards to avoid overcrowding or other negative aspects of higher development intensities that have occurred in older forms of mixed use development, particularly in some ^fhe easte older cities, Coastal Act land use limitations must also be considered. 5. General Plan policies will support City efforts to nuimi uize optimize retail sales leal£age-capture €mm in the community. Discussion: The Commercial Market Analysis demonstrates that Newport Beach not only serves City residents relatively well but also draws substantial retail sales from non-resident shoppers and visitors to the City. However, certain sales leakage categories were identified that signal additional retail development opportunities, particularly in older commercial areas that no longer serve local needs as well as they once did. The EDC has also suggested that the City's economic development strategy should focus on the City's regional market share and the additional opportunities that may exist to provide a wider range of commercial establishments; particularly those which capitalize on new markets being created both regionally and in adjacent cities. Moreover, the retail market is dynamic and it is important to provide sufficient land use flexrbilityfor businesses to upgrade and change their storefronts, building sizes and product offerings to stay abreast of consumer tastes and market trends. Along these lines, participants in the Visioning Process supported the notion of allowing for expansion of existing businesses, while limiting the magnitude of new commercial development. Yet many respondents also recognized the opportunity for larger retail uses in the Airport Area that would capture some of the sales currently lost to surrounding communities. In addition, latervpeit Center and Fashion Island will continue to serve as major retail center for the City and will likely need some flexibilityto evolve overtime to better meet consumer needs. Finally, the fiscal analysis points out that sales tax is the second largest single revenue source for the City, and is a prime contributor of funds needed to provide services to the residents of the City. 6. Land 1, 11 r. designated a l al. and .egulitted. _nianner ean be . ..,stet by the .,...a.e, The quantity of land designated for commercial use and the development standards that regulate such uses shall Discussion: The Commercial Market Analysis found that some commercial areas are underutilized and underperforming, such as the Balboa Peninsula and West Newport. Participants in the Visioning Process strongly agreed that the Cityshould 9 Guiding Principles for Economic Development consider re -zoning these areas for residential or mixed use. It does not serve the City or the business community to retain commercial zoning when the market will not support commercial use of that land. The EDC has also pointed out examples where older office buildings and even some lodging facilities no longer adequately serve market demand due to their location or functional obsolescence. Other areas -of the City are better positioned to support newer buildings that do respond to current and future market requirements. As this occurs, existing, older buildings should be permitted to redevelop into uses more compatible with their surroundings, which in many cases maybe residential or mixed -use development, subject to any Coastal Act land use limitations. This principle can also apply to some City land use regulations, especially in Mariner's Mile. Specific marine -oriented uses are required in a certain percent of the floor area. When the market does not adequately support these uses, commercial space remains vacant and unproductive. 7. General Plan policies will facilitate the development and retention of a variety of business types that strengthen the vitality of the local economy. Discussion: The fiscal analysis discusses the fact that the various components of the local economy are interrelated, and while not all land uses generate high tax revenues bythemselves, they often do provide part of the economic foundation to support the Citys high revenue producers. This occurs on a couple levels. For example, business and professional services firms often do not generate much sales tax directly, but theytypically offer higher wage incomes that support housing prices in the City and generate retail spending that does result directlyin sales tax revenues for the City. On another level, local firms need access to quality business and professional services in order to compete effectively in the marketplace. The ability of Newport Beach to support a variety of both business and personal services makes it a superior business location and increases its attractiveness to high revenue producing businesses. Another example of this phenomenon would be Hoag Hospital and related medical offices and facilities in the City. The jobs provided in these facilities are generally verywell paid and in addition, medical supply firms can be significant sales tax generators. Further concentration of medical facilities could help to attract new research facilities with the potential for substantial economic benefit, Generally,it would be important for Newport Beach to support unique economic uses for which the city is the best location such as many of the marine -related activities 8. Additional development entitlement will preiide needs to demonstrate significant fiscal, economic or other community benefit. Discussion: Wavle Newport Beach is currendya substantial job center, the Visioning Process enunciated the position that job growth is not an important goal by itself. Economic development must support the community's broader goals and 10 Guiding Principles for Economic Development provide net benefits that outweigh the potential impacts of growth and development. This principle establishes the City's position that the benefit of new development is not assumed as a matter of right, but must be demonstrated explicitly. This principle also recognizes the fact that significant opportunity exists to upgrade, revitalize, and enhance the City business base within its existing built environment. For example, fiscal goals can be met by recruiting "point of sale" firms (e.g. "e-commerce" firms) to existing office space, increasing the non -retail sales tax base in the Citywithout necessarilyincreasing the impacts associated with new office development. As the GPAC suggested, commercial revitalization can mean making places better without making them bigger. The key is the quality and character of the development. 9. General Plan policies will protect the high value of residential property. Discussion: This principle confirms the idea that Newport Beach is primarilya residential community, and that economic development should preserve and protect that quality, not diminish it through inappropriate or excessive development. It also relates to the need to ensure that commercial and business development is in appropriate scale to nearby residential neighborhoods. This principle further reinforces the conclusion of the fiscal analysis that higher value residential units do pay for themselves in terms of generating sufficient tax revenues to pay for neighborhood services. The EDC has recommended that the General Plan process also explore opportunities for higher density residential development as a means of providing high value development with positive fiscal benefits. Such developments maybe appropriate in the Airport Area or ether at Newport Center. 10. General Plan policies shall prepare the City to capitalize on market and demographic changes and opportunities that emerge in key economic centers of the community. Discussion: The market analyses and the Visioning Process have identified areas of the Citywhere change is likely due to economic pressure from growing business sectors or the presence of key market opportunities. For example, the Airport Area could support new retail developments that require a larger scale than would be suitable in many other areas of the City. At the same time, the Visioning Process participants were concerned that the intensity of development in this area not exceed the carrying capacity of the road systems and other services. Similarly, the West Newport Industrial Area is adjacent to the Hoag Hospital area, which may experience pressure to expand medical services, supply outlets and research facilities. Some of the marine -related industries that occupy this area formerlywere located nearer the waterfront and have experienced the need to move due to real estate price escalations in the past. There is a need to plan for change in a number of areas of the Guiding Principles for Economic Development City, so that important new economic opportunities can find locations in the Newport Beach while viable existing businesses continue to thrive in the community. 11. The General Plan shall support the careful expansion of visitor -serving businesses and facilities, including hotels and meeting facilities. Discussion: The fiscal analysis documents the benefit the City gains from visitor trade. Visitor spending on taxable goods and services, as well as transient occupancy taxes on lodging revenues, is estimated to generate $4.8 million in net revenues to the City, which help support City services above and beyond those provided to visitors themselves. As with retail commercial development, the market for tourist trade and business travel evolves and changes, reflecting not only national and international consumer trends, but also regional changes in the type and variety of visitor experiences that are offered. Therefore, it is important for the General Plan to provide opportunities for this economic sector to maintain and enhance its vitalityas it keeps pace with changing market conditions. Similarly, the City must provide for accommodations and other services needed by visitors to the coast. On the other hand, the Visioning Process outlines clear limits to the growth and development of the tourist trade in Newport Beach, indicating that the cityis a residential beach community, not primarily a tourist destination. While most participants were in favor of tourism, many felt any major expansions of lodging in particular should be concentrated in the Airport Area or Newport Center. Furthermore, it may not be in the City's interest to pursue market opportunities already substantially captured by other localities in the county. For example, while a larger convention center mayhelp attract some more business travel, this market is well saturated currently and the public financial subsidies necessary to maintain such a facility may not bear adequate returns. 12. The General Plan shall offer a distinct land use concept and policy framework for the Airport Area. Discussion: The Airport Area is distinct in manyways from the balance of the City due to its regional centrality, proximityto the airport, and primary orientation to business and commerce. This area may offer unique opportunities for a scale and type of development that would permit the realization of commercial and even residential developments not appropriate in other areas of Newport Beach. The location of this area adjacent to the regional freeways may reduce the potential for development in the area to directly impact neighborhoods and local commercial districts in the rest of the City. The area also exhibits a distinct design character that is generally more consistent with the regional business center concentrated at the freeway and is not identified with the beachfront character of much of the rest of 12 Guiding Principles for Economic Development Newport Beach. Therefore, from an economic development and land use perspective, this area may benefit from more tailored planning concepts. 13 Y City of Newport Beach General Plan Update GUIDING PRINCIPLES FOR POLICY FORMULATION Discussion Paper 2: Guiding Principles for Community Character May 12, 2004 EIP Associates Urban Crossroads Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. These will indicate the areas of the atyin which existing uses and densities will be conserved and those areas in which change is anticipated or may be encouraged. General direction regarding these areas was received from the public during the Visioning Process. As a result, a number of specific sub -areas have been,identified bythe General Plan Update Committee (GPUQ as "targeted areas" for which the GPAC will consider one or more land use alternatives. Illustrative of the areas to be considered are Banning Ranch, the John Wayne Airport business park/industrial area, Mariners Mile, West Newport Industrial area, Old Newport Boulevard, and Central Balboa. As the first step in the upcoming process, the GPAC will define the GuidbgPrb*1z that it will use as the basis for framing and assessing the land use alternatives. Essentially, these constitute the "non-negotiable'. rules, or benchmarks, by -which all alternatives will be judged. Theywill elaborate and expand upon the Vision Staterrzrtt that was defined through the public process during the past year and a half. These Pdncola may applyto environmental values that can influence the location and density of development, such as a principle that "no development shall be permitted in riparian coastal canyons." They may apply to values regarding community character, such as a principle that "new development shall respect and maintain the scale, character, and quality of the community." Additionally, they may apply to specific economic sectors such as supporting economic activities associated with the harbor or supporting the revitalization of older commercial areas. In terms of the level of detail for the Gtdckrgll �pla, they may be thought of on a level with General Plan goals, from which more detailed policies and implementation measures will be developed. Many, if not all, of the GwdingPrinapla will be expressed in some form as goats in the draft General Plan, but for now the focus is on their function as benchmarks for developing and evaluating the land use alternatives. Once the Gxdt gPrimzples have been defined, the GPAC will identify one or more land use alternatives forthe twelve "targeted" sub -areas of the atyin its Maythrough July meetings. For each subarea, DisaasicnPapen will be distributed that summarize its existing conditions, key planning constraints and opportunities, and possible land use strategies. Following their identification, the alternatives will be evaluated for their comparative impacts on traffic, fiscal costs and revenue, and environmental resources. The impact analyses will be presented to and reviewed Guiding Principles for Community Character with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a Pmfwd Land Use Plan will be selected during October. The following section summarizes community character issues raised in the Visioning Process, as described in the document, "Community -Directions for the Future." The subsequent section summarizes the consultant's technical analysis of the existing city setting. Based on these summaries, the paper provides a set of suggested Guidingll rnzpks for community character, for consideration by the GPAC. It is useful to define "community character" to understand what influences and impacts the way a community identifies itself. Community character relates to a place's identity- how a place or collection of places is perceived by its residents, property and business owners, and by -visitors. It encompasses physical, social, economic, and environmental aspects of a community. Depending on the geographic boundaries, the term "community" may refer to an entire city or several areas that together make up one distinct area. For this discussion, we use community character to refer to the identity of residential neighborhoods and combination residential and commercial areas, or "villages", as they are often described, in addition to the city of Newport Beach as a whole. Community character can be described by place's primary function - residential neighborhood, commercial district, or industrial district, or combination of those. The natural setting, such as coastal and upland environment, also provides a distinctive quality. Another way character can be identified is by its built environment, the urban form and design of structures, roadways, landscape, etc. Aplace's history also shapes its character, as does the cultural and recreational opportunities it currently offers. Lastly, the pace of life, whether suburban or urban, can influence community character. All of these aspects together combine to offer a unique sense of place to community members. Summary of Community Character Issues THE VISIONINGPROCESS The City initiated a Visioning Process in January of 2002 that culminated in publication of the Community Directions for the Future report in January 2003. The Visioning Process included a series of events, meetings and public information gathering programs and resulted in a vision statement for Newport Beach and substantial public input on a wide range of issues for consideration in the General Plan Update. The summary information presented here is limited to statements and issues related to economic development or the fiscal health of the City. The vision for the future of Newport Beach describes the City's desired end state and what the community hopes to have achieved by2025. Under the heading, "Community Character," the vision states: We have preserved and enhanced our character as a beautiful, unique residential communitywith diverse coastal and upland neighborhoods. We value our colorful past, the high quality of life, and our communitybonds. The successful balancing of 2 Guiding Principles for Community Character the needs of residents, businesses and visitors has been accomplishedwith the recognition that Newport Beach is primarily a residential community. The Visioning Process also gained public input on a range of more specific issues. There was broad community consensus on some issues that influence community character, and more diverse opinion on others. The issues with consensus include the following: ■ The vast majority of residents view Newport Beach as primarily a residential beach town. While most recognize the City's attractiveness to tourists, they were less interested in defining the City's identityas a tourist destination. ■ In a survey of business owners, the City's location within the County, its physical beauty, and the purchasing power of the community are listed as exceptionally attractive attributes. ■ General consensus exists that the City's harbors and beaches must be protected and enhanced as the most cherished resources. ■ Specific areas of the City exhibit physical deterioration, economic obsolescence, or a lack of cohesiveness affecting the quality of the areas' image and character. People are in general agreement that certain areas of the City need revitalization, including Balboa Village, Mariner's Mile, Old Newport Blvd., Cannery Village, McFadden Square, West Newport, and the mixed residential/industrial area above Hoag Hospital. ■ A couple of the visioning events raised the issue of mixed -use, integrating housing and commercial or office space. Areas deemed appropriate for mixed -use include Balboa Village, Mariner's Mile, Cannery Village, Lido Marina Village, McFadden Square, the Airport Business Area and Newport Center. Mixed -use development has been used by other communities as a method to enhance community character by integrating housing and commercial uses in proximity to one another, and to unify fragmented areas. ■ Protection of public view corridors has been stated as a priority by Visioning participants. A divergence of opinion exists on the following issues that contribute to communitycharacter. ■ Participants in the visioning program events were overall in favor of tourism, but divided on providing more tourist accommodations, including lodging. However, if new hotels are to be built, most respondents agree they should be concentrated in the Airport Business Area and Newport Center. ■ While people want the City to setfirm constraints on development, including expansion of employment centers and hotels, additional development maybe acceptable in certain areas under certain conditions. ■ A majority of participants are concerned with traffic congestion, but views differ over how to mitigate the problem. Additionally, no clear consensus exists regarding the method(s) to remedytraffic impacts on neighborhoods. ■ Visioning participants have expressed a desire for the City to preserve tidelands and public open space, both of which have the potential to contribute to visual quality, while some participants have indicated the importance of developing some tidelands for recreational uses and economic gain. ■ ' lWe larger homes and their effects is a trend of concern to many in Newport Beach, residents have mixed opinions on whether existing regulations are sufficient for now. The appropriate scale varies by neighborhood and geographic area. ■ Larger homes may also affect views of bluffs from lower lying areas. According to Visioning participants, development on or near coastal bluffs needs to balance land use controls with the rights of property owners. TECHNICAL BACKGROUND REPORT BYEIPASSOCIATEs (EIP) EIP has prepared a technical study, published in March 2004. The following is a synopsis of issues and information gained from this work Natural Selling ■ The City of Newport Beach is sited on a coastal plain and is bounded on two sides by developed urban lands of Costa Mesa, Huntington Beach and Irvine. Development in Newport Beach has been designed to capture views of the ocean, capitalizing on the ridgelines and hillsides as -vantage points. The Upper and Lower Newport Bay, draining an area of 118 square miles via the San Diego Creek, bisects the City, creating a dominant physical land feature that includes estuaries, beaches, coastal bluffs, and meandering waterways unique to Newport Beach. From the higher elevations in the City, views to the north include the rolling slopes of the San Joaquin Hulls, and in the distance the Santa Ana Mountains. This combination of hills, canyons, bluffs, and water features create a visually dynamic landscape. Visual Resources ■ Open space areas provide visual relief from urbanized areas and scenic view opportunities for motorists, pedestrians, and residents. Open space is distributed throughout Newport Beach including the beach, bay, and parks. Undeveloped areas such as Banning Ranch, and canyons, hillsides and bluffs of Newport Ridge/Coast contribute to these visual resources, although some development may occur there in the future. ■ The Pacific Ocean provides the predominant visual setting for the majority of Newpores scenic attributes. The ocean can be seen from residences atop coastal bluffs and hilltop ridges, from the offices of high-rise development, and can be enjoyed byvisitors of the beaches, shopping areas and from many of the major north/south corridors. Associated with the ocean, the bayand harbor areas also provide picturesque nautical views. ■ While the City has Shoreline Height Limitation regulations, the construction of larger homes upland from the coast may affect the community character of certain neighborhoods and have secondary visual impacts. In addition, the City has no regulations that determine the placement of development on bluffs in existing subdivisions. ■ There is an opportunity to provide viewing areas and interpretative signs to add to the quality of life for residents and visitors. Future Development ■ As the City's available vacant properties planned for development are built out, any additional development will occur as infill or re -use of existing properties, possibly including structures that integrate housing with commercial uses (mixed -use), and providing an opportunityto influence or enhance existing community character in established "villages" or districts. ■ Mixed -use represents an opportunity to enhance community character in areas such as Balboa Village, McFadden Square, Cannery Village, Airport Business Area, Lido Village, Newport Center, and Mariner's Mile. Ensuring the compatibility of types of commercial uses with residential uses, along with building design, to maintain the existing community character will be a challenge of new mixed -use development. ■ Some older residential areas (e.g., Corona del Mar and Lido Isle) have been developed with two housing units built on three legal lots. Legally, these homes could be demolished and replaced with housing built on each legal lot of record, increasing overall development densities and changing existing community character. Commercial Areas ■ Several areas of the city have been identified as lending unique identity and function to Newport Beach, and as such merit efforts to preserve or enhance existing community - character. Six areas have been identified as Specific Plan areas in the existing land use element: Mariner's Mile, Cannery Village/ McFadden Square, Newport Shores, Santa Ana Heights, Central Balboa, and Old Newport Blvd. In addition, the General Plan designates Corona del Mar as a Specific Plan area. ■ Programs intended to improve community character have been developed for several community areas, including the Balboa Sign Overlay and Design Guidelines, Mariner's Mile Design Framework, Central Balboa Public Improvements and Design Guidelines, and Corona del Mar Vision Plan. 5 Guiding Principles for Community Character ■ Commercial areas such as Mariner' Mile, Lido Village, Old Newport Blvd/West Newport Industrial are characterized by a wide diversity and a fragmented pattern of uses: marine, highway oriented, local -serving retail, etc. and require consideration of what are the appropriate type, mix, and scale of uses and future development, including the appropriateness of marine and visitor -serving uses for the areas. Vacancies or underdeveloped parcels provide opportunities for new development in such areas, presenting an opportunityto influence the character of these areas by establishing guidelines and a vision for private development of these areas. The Airport Business Area is also subject to this condition. ■ Multiple property ownerships maycomplicate coordination of a cohesive pattern of development in the older commercial districts in the City. Residential/Commercial Interface ■ Rezoning of underutilized commercial lands for residential or mixed -use development has been suggested, particularly in Balboa Village. ■ With the exception of the Airport Business Area and Newport Center, most commercial areas are in close proximityto residential neighborhoods, which can create conflicts due to traffic, parking, lighting, and noise. Maintaining the compatibility between adjoining commercial and residential neighborhoods is a challenge as parking, noise and litter from commercial customers can affect the charm and tranquility of residential neighborhoods. This is of particular concern on Balboa Peninsula, Balboa Island, Corona del Mar, and to a lesser extent in Mariner's Mile. ■ Similarly, the impact of traffic on residential neighborhoods throughout the Cityis an ongoing concern. Special Issue Areas ■ Santa Ana Heights appears to lack most neighborhood serving commercial uses, such as grocery stores, banks, gyms, and restaurants. As a recent annexation, much of the existing development does not comply with Newport Beach's standards and municipal code violations are frequent. ■ There is question whether City Hall is still located centrally for its residents. City Hall is considered to be too small to function as the administrative center of the City. ■ Requests for large-scale, multi -lot developments in Cannery Village could impact the area's character with increased'traffic and parking demand, and a reduction in the variety of architectural styles. ■ Traffic congestion on Pacific Coast Hrghway may conflict with the intended pedestrian nature of the Corona del Mar area. In addition, parking deficiencies present conflicts 6 Guiding Principles for Community Character with adjacent residential neighborhoods as customers encroach upon residential street parking. Marine Indusfry ■ The marine industry and maritime uses have figured prominently in Newport Beach's historyand physical development, but have decreased recently as land costs have increased. Suggested Community Character Guiding Principles 1. Protect and enhance the natural setting that contibutes to the character and identity of Newport Beach and the sense of place it provides for its residents and visitors. Discussion: Community members have noted the Citys location and physical beauty are exceptional attributes along with its harbors and beaches. Harbor, bay and coastal features have greatly influenced urban form in Newport Beach and differentiate the city from other coastal communities. Much of development in Newport Beach has been designed to capitalize upon its natural setting —beaches, bluffs, canyons, harbor, bay, and ocean — creating the urban form and character that is visible today. Open space has been preserved to be enjoyed as amenities or to provide habitat. As much of Newport Beach's character and sense of place derives from its natural setting, it is important to protect and encourage development that enhances the natural setting. This will protect the community's character and its high propertyvalues. Alteration of the natural setting of Newport Beach may result in change to the overall community character if it is not managed and directed in a manner consistent with this guiding principle. Yet protecting Newport Beach's natural resources while allowing for their use and enjoyment is a challenge. For instance, owners of commercial waterfront property and older homes on coastal bluffs desire to upgrade and redevelop their properties with larger buildings, which may change public views of the water or require more alteration of the bluff face. Private development rights will need to be balanced with the protection of natural resources. 2. Maintain and enhance the beneficial and unique character of the different neighborhoods and business districts that together identify Newport Beach. Discussion: The City of Newport Beach has developed as a variety of small communities, or villages. Community members recognize each of the Citys distinct neighborhoods and commercial areas contribute to the character of Newport Beach. The older coastal areas are comprised of neighborhoods of one-time summer and cottage -type homes on small lots. These neighborhoods have a specific community character that is unlike the newer planned communities in the upland areas. These coastal neighborhoods in particular are subject to the effects of the real estate market's rising land values and consumer preferences for larger homes, resulting in tear down and replacement of smaller properties with larger homes. 7 Guiding Principles for Community Character Since lots are small and structures compact, new larger structures can disrupt the rhythm and feel of the existing neighborhood altering the small town, coastal community character. Balancing the rights of property owners with the goals of maintaining and preserving community character will be a future challenge. While Newport Beach residents recognize the communityas primarily residential, tourism has also influenced community character in Newport Beach. The City has a history of tourism and benefitseconomically from its attractiveness to visitors. In its older commercial villages, Newport Beach exhibits a beach culture representative of Southern California but unique to Newport Beach. Visioning participants have identified these villages as needing assistance to maintain their physical and economic vitality. Many areas exhibit the opportunity to maintain and reinforce districts, to make those that are fragmented, more cohesive, and to foster a sense of place. Programs such as the Balboa Sign Overlay and Design Guidelines, Mariner's Mile Design Framework, Balboa Public Improvements, and Corona de Mar Vision 2004 Plan, have been developed with such improvements in mind. The general plan land use plan can be utilized to identify the villages, districts and neighborhoods that should be preserved and maintained. Specific plans, design guidelines, overlay zones, and special design and performance standards maybe applied to appropriate areas to ensure use compatibility and character preservation. Distinctions between different types of development densities such as rural, suburban and urban could be recognized to allow for a variety of lifestyle choices. This will allow for certain areas to maintain their existing character and have the types of uses and development that occurs there regulated. This could allocate more urban uses to the Newport Center and Airport Business area, while allowing Santa Ana Heights to maintain a more rural character and the planned development areas of Newport Coast to retain a suburban character. 3. Future development shall consider the scale, urban form, design, character and quality of the community. Discussion: A region's built urban form defines its character and sense of place, and contributes to the overall quality of life. For example, urban form can distinguish socially and economicallyvital pedestrian districts from auto -oriented districts. Urban form is defined by the density of development; location, lot coverage, interrelationships, massing, modulation and design of buildings; and the landscape and design of the intervening spaces that connect buildings. Urban form allows for the differentiation of residential neighborhoods, commercial centers and corridors, and industrial districts. Newport Beach is recognized as an attractive communitywith a strong community identity. Its villages are mostly small scale, intimate residential and commercial areas, with differing character yet exhibiting a unifying theme of qualityplaces to live, shop, play and work There also are more `urban' areas of Newport Beach, such as Newport Center and the Airport Business Area, where taller buildings and more dense development are the accepted norm. Threats to community character and qualitysuch as residential through -traffic from Guiding Principles for Community Character commercial areas, and commercial encroachment on residential neighborhoods are extremely important to address in existing and new development. New, infill or re -development can be directed to reflect and complement existing community character. If identified in the general plan land use plan, new development can be planned to complement existing land uses. Development can also be designed to be consistent with the scale of existing development and building massing in the surrounding area. Mixed -use development can be employed as an infill strategy in appropriate areas of the City. Additionally, architectural standards and guidelines can be developed for new development to ensure quality design that is contextually appropriate for the surrounding area. Visioning participants are in agreement regarding the importance of regulating development to protect the existing character and quality of the community. They have divided views on the issue of "mansionization" in residential areas; some residents support the increase in property values from larger homes, while some oppose unchecked -building "supetsizing" as a threat to the character of a "small town" beach community feel. The threshold for size varies by neighborhood and geographic area. Visioning participants have noted the need to create urban design guidelines and/or specific plans to address design, especially in areas targeted for revitalization. Community members have also expressed that new design and building scale should complement and emphasize the characteristics of existing neighborhoods and villages. New development must also consider existing community amenities and be sensitive to those such that views remain protected, trees and landscape are enhanced and preserved, and light pollution minimized. 4. Balance developed lands with adequate open space and recreation areas and preserve opportunities for maintaining healthy lifestyles in Newport Beach. Discussion: Newport Beach's natural settingfacilitates active lifestyles and enjoyment of the citys physical resources. The presence of parks, art and cultural facilities, libraries and educational quality directly contribute to the residents' quality of life. Outdoor and indoor recreational opportunities include hiking, biking and aquatic related activities. Open space provides visual relief from the urban built environment; open space preservation allows for the enjoyment of views and supports habitat for wildlife. It is essential to maintain the open space, park, beach, and trail areas for the enjoyment of residents and visitors, and to ensure adequate opportunities for healthful activities. Visioning participants emphasized the importance of meeting the needs of residents, businesses and visitors recognizing that Newport Beach is primatilyresidential. In meeting residents' needs for recreation, the city can also achieve its goals for providing a viable business and tourism environment that is dependent on the open space and recreational amenities of Newport Beach. The challenge will he in meeting the needs of all while maintaining the quality of recreation and open space lands. 9 Guiding Principles for Community Character 5. Preserve the community's heritage. Discussion: Newport Beach is renowned for its coastal lands and harbor. These resources, along with marine industry and maritime uses, have figured prominently in Newport Beach's history and physical development. Along with this acknowledgement and respect for the Citys coastal and nautical history, interest has been expressed in preservation of historic buildings and locations (e.g., Balboa Pavilion and McFadden Square) that have contributed to Newport Beach's unique sense of place. Some of these resources maybe eligible for recognition, but are not included on the official State or National register. They could be demolished or substantially altered, as there are no local historic preservation standards in place. There also are residential and commercial neighborhoods with a distinct historic character, such as Corona del Mar, Balboa Village and Balboa Island. This guiding principle supports the visioning participants' interest in protecting these historic commercial and residential villages. Protection of historic or significant resources could be accomplished through modification of development standards that inhibit preservation of historic structures, limitation of certain uses permitted in some commercial areas, adoption of design and development guidelines, and adoption of more Specific Plans to regulate development. Another way to protect these historic resource's is for the City to adopt local preservation standards for these resources. 10 City of Newport Beach General Plan Update GUIDING PRINCIPLES FOR POLICY FORMULATION May 12, 2004 EIP Assoclates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAC) will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. These will indicate the areas of the City in which existing uses and densities will be conserved and those areas in which change is anticipated or maybe encouraged. General direction regarding these areas was received from the public during the Visioning Process. As a result, a number of specific sub -areas have been identified bythe General Plan Update Committee (GPUQ as "targeted areas" for which the GPAC will consider one or more land use alternatives. Illustrative of the areas to be considered are Banning Ranch, the Airport Business Area, Mariners Mile, West Newport Industrial area, Old Newport Boulevard, and Central Balboa. As the fast step in the upcoming process, the GPAC, will define the Gad&gPrin*1a that it will use as the basis for framing and assessing the land use alternatives. Essentially, these constitute the benchmarks, bywhich all alternatives will be judged. They will elaborate and expand upon the Vision Statement that was defined through the public process during the past year and a half. These Prb*ks may apply to environmental values that can influence the location and density of development, such as a principle that "no development shall be permitted in riparian coastal canyons." They may applyto values regarding community character, such as a principle that "new development shall respect and maintain the scale, character, and quality of the community." Additionally, theymayapplyto specific economic sectors such as supporting economic activities associated with the harbor or supporting the revitalization of older commercial areas. In terms of the level of detail for the Gxdingll in les, they may be thought of on a level with General Plan goals, from which more detailed policies and implementation measures will be developed. Many, if not all, of the GtadrTPrit*1a will be expressed in some form as goals in the draft General Plan, but for now the focus is on their function as benchmarks for developing and evaluating the land use alternatives. Once the GuidkPrinapla have been defined, the GPAC will identify one or more land use alternatives for the twelve "targeted" sub -areas of the City in its Maythrough July meetings. For each sub -area, DisatssionPaµm will be distributed that summarize its existing conditions, key planning constraints and opportunities, and possible land use strategies. Following their identification, the alternatives will be evaluated for their comparative impacts on traffic, fiscal costs Guiding Principles for Workforce and Special Needs Housing and revenue, and environmental resources. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a PrefentdLand Use Plan will be selected during October. The following section summarizes the affordable housing issues raised in the visioning process as reflected in "Community Directions for the Future". The subsequent section summarizes the issues related to affordable housing contained in the Housing Element of the City's General Plan, adopted in August 2003. Based on detailed information in the Housing Element, and the Housing Section of Chapter 2, Community Development, of the recently completed Technical Background Report prepared by EIP Associates, this paper provides a set of suggested Griming Pri *Ia for affordable housing for consideration by the GPAC. "Workforce and special needs" housing has been used herein to describe Newport Beach's particular need of affordable housing. Summary of Workforce and Special Needs Housing Issues THE VisioNINGPROCESs The City initiated a Visioning Process in January of 2002 that culminated in publication of the Community Directions for the Future report in January2003. The Visioning Process included a series of events, meetings and public information gathering programs and resulted in a vision statement for Newport Beach and substantial public input on a wide range of issues for consideration in the General Plan Update. The information presented here includes the statements and issues from this process related to housing development in the City, and worldoree and special needs housing in particular. Much of the discussion in this section, and the Housing Element section that follows, is related to opportunities to provide additional housing capacity in the City. However, to achieve the City's goals for providing an appropriate share of the region's affordable housing need, there are a number of strategies and tools that maybe used to create workforce and special needs housing units from the additional housing capacitythat maybe created in the land use plan. These strategies are discussed in the following section of this paper. The vision for the future of Newport Beach describes the City's desired end state and what the communityhopes to have achieved by2025. Under the heading, "Growth Strategy, Land Use and Development," the vision states in part, that " There is a range of housing opportunities that allows people to live and work in the City." This statement reflects the community's acknowledgement that the availability of a variety of housing opportunities is a critical component of a desirable, viable, livable community. The Visioning Process gained public input on several specific issues related to housing development and workforce and special needs housing. The housing development issues discussed below are included because they represent the capacity for housing to which the City's workforce and special needs housing strategies can be applied, as appropriate, to achieve the City's affordable housing goals. From the visioning process, there was broad community consensus on some issues related to housing development, and more diverse opinion on others. The issues with consensus include the following: 2 Guiding Principles for Workforce and Special Needs Housing ■ Areas suitable for Mixed -Use. Mixed -use development, by definition, typically includes a residential component and therefore provides the opportunityto add additional units to the Citys housing stock. From input collected at the Visioning Festival and the Citys website, specific areas were deemed appropriate for mixed -use development integrating housing and commercial or office space. These areas include Balboa Village, Cannery Village, Mariner's We, McFadden Square, Lido Marina Village, the Airport Business Area and Newport Center. The GPAC favors mixed -use development in appropriate sites, and believes each site should be studied for its specific suitability. The development of mixed -use projects in any of these areas recognizes the value that a housing component adds to the project as well as to the communityas a whole. ■ Use of Underutilized Commercial Land. GPAC members and Festival participants strongly agreed that the City should consider re -zoning excess and underutilized commercial lands for residential or mixed -use development. Festival participants leaned more toward mixed -use development. The consideration to expand the areas in the City in which mixed -use is allowed supports the Citys attainment of housing production goals in the Housing Element as well as its improved fiscal health through the revitalization of underutilized properties. A divergence of opinion existed on the following housing development and workforce and special needs housing issues. Banning Ranch. Banning Ranch is one of the few remaining opportunities for the City to develop additional housing in a large land holding. Community opinions are split as to whether development should be allowed at Banning Ranch or if this property should be preserved as open space. Forty-six percent of those familiar with the area support preserving the entire area as open space, and another forty-four percent support half of the land to be used for residential and limited light industrial with the remaining half reserved as open space. GPAC members had varied opinions as well. Some support using a portion of the land for affordable housing, arguing that Banning Ranch is one of the few remaining places for this use. Summit participants who were supportive of development favored affordable housing and public facilities, such as for seniors and youth. Development of some portion of this site for housing presents a unique opportunity because of the limited availability of undeveloped land remaining in the City. ■ Potential Development Areas. Overall, the responses supported the City setting firm constraints on development including expansion of employment centers and hotels. However, under certain conditions, there was support for additional development. Some Summit attendees favored mixed -use development in Newport Center and stressed the need for more workforce and special needs housing in particular. Specific suggestions included high-rise residential units and condominiums. 3 Guiding Principles for Workforce and Special Needs Housing Tim Hov im ELEMENT The California State Legislature has identified that a major housing goal of the State is the attainment of a decent home and suitable living environment for every California resident. To further the attainment of this goal, State law requires local governments to prepare and adopt a Housing Element as a component of their General Plan and that the Element include the following: ■ Identification and analysis of existing and projected housing needs, ■ Resources and constraints, ■ Statement of goals, policies, and quantified objectives, ■ Programs for the development, improvement and preservation of housing, ■ Identification of adequate sites for housing, and ■ Adequate provision for existing and projected needs of all economic segments of the community. In August 2003, the City Council adopted an updated Housing Element that is a comprehensive statement of the City's housing policies and serves as a specific guide for implementation of these policies. The Element covers the planning period from the year 2000 to 2005 and examines current housing need, estimates future housing need, and establishes goals, policies, and programs pertaining to those needs. The housing programs in the City's Housing Element are responsive to current and future needs and are constructed within the context of available community, State, and federal economic and social resources, and realistic quaittified'housing objectives. The Cityis committed to achieving its housing production goals through a land use plan that facilitates appropriate additional residential capacity. Housing capacityalone, however, is not sufficient to create workdorce and special needs units. Thus, the City maywant to consider policy approaches that result in a high probability of achieving its worldorce and special needs housing goals. A combination of strategies that include incentives --such as density bonuses, and requirements --such as inclusionatyhousing ordinances, works well for many communities to facilitate the production of workforce and special needs housing units. The City currentlyhas a number of strategies and programs that maybe appropriate to reconsider or prioritize to assist in this important goal. Issues and Constraints ■ Opportunities for new housing units are very limited as the City is essentially built out with few remaining vacant parcels. ■ Limited land availability means that new housing opportunities will occur on a limited basis as infill or reuse of existing properties, e.g. mixed -use development. ■ The City's beauty, coastal location, land values, and continuing housing demand combined with the high median income of residents contribute to housing prices that severely limit the availability of workforce and special needs housing. 4 Guiding Principles for Workforce and Special Needs Housing ■ Continued housing demand relative to availability has resulted in higher housing prices and lower vacancy rates that further reduce the availability of housing for the focal workforce. ■ There are strong community concerns regarding not only increased commercial and office development, but also higher density residential development due to concerns about traffic congestion and limitations on infrastructure. These concerns also reflect strong public sentiment in favor of preserving the suburban character of the City. ■ Measure S may prove a constraint to housing development if a development proposal exceeds current General Plan levels, which may deter builders who look at increasing housing densityas a way to make housing more affordable. Housing Need The Regional Housing Needs Assessment (RHMA) prepared by the Southern California Association of Governments (SCAG) allocates Newport Beach a share of housing units required to satisfy housing needs resulting from growth in the region. To accommodate projected growth in the region, SCAG estimates the City needs to target a housing production goal of 476 new housing units. State law requires SCAG to distribute new units'based on income to avoid further impaction of localities with relativelyhigh proportions of low-income households. Using the SCAG formula for households earning below 80 percent of the County median income and paying more than 30 percent of their income towards housing, the regional housing need allocation for Newport Beach is 476 units. These units are to be constructed over the Housing Element planning period of 2000 — 2005 and fall into the following income categories: Percentage Income Category Units of RHNA Very Low Income 86 15 Low Income 53 11 Moderate Income 83 17 Above Moderate 254 53% Total 476 100% In addition to the above RHNA allocation, the City has agreed to the transfer of a portion of the County's RHNA for the Newport Coast. The allocation for the Newport Coast area is 95 units for low-income households and 850 units for above moderate- income households for a total of 945 units for the area. The Citywill work with the Countyof Change and the Irvine Companyto ensure that these workdorce and special needs housing commitments are met. In addition to the above housing needs allocation, the Element also identifies population groups with special housing needs. These groups mayhave a more difficult time finding decent workforce and special needs housing due to special circumstances or household needs and include the elderly, disabled persons, large families, female -headed households, farm workers, and the homeless. Special 5 Guiding Principles for Workforce and Special Needs Housing needs populations in the City that have been identified by available census data include the following: ■ 10,318 senior citizen residents, ■ 1,734 female -headed households, ■ 2,117 disabled persons with self -care limitations, ■ 171 farm workers, and ■ An undetermined number of homeless persons. The housing element includes Goal 5 to specifically address the City's special needs population. Senior citizens, defined as age 65 and above, are now the largest age -group segment in the City -at 16.8 percent of the total population. The City -will continue to use a portion of its affordable housing resources on this population, but will also address the needs of other segments, including families. Cu rre ntly Awilable Workforce and Spe c ial Ne e ds Housing There are ten developments in the City -that provide a total of 321 income -restricted units for very low to moderate -income households based on the use of government subsidies in their financing or operation. Of the ten projects listed in the Housing Element, only two are scheduled to lose their affordability restrictions during the five-year term of the Element. One project lost its income restriction in 2002. However, the Lutheran Church managing the project has indicated that it has no intention of converting the 100 low-income units to market rate, and such a conversion would require an amendment to the use permit. The Domingo Drive Apartments, which contain 25 very - low income units, is eligible for conversion to market rate units in 2005. Housing Opportunities and Resources The programs and activities below are a summary of Housing Element provisions that provide opportunities for the construction of new housing units including incentives and requirements that facilitate the production of affordable housing units. These programs also include housing resources currently available in the City to facilitate the maintenance of existing housing units that are more affordable relative to other housing opportunities such as some mobile home parks and condominium conversions. Undeveloped Residentially Zoned Sites. The Housing Element identifies three vacant sites that are currently zoned for residential development. The sites range in size from 3.2 to 45.2 acres and have a capacity for approximately582 units. This unit count maybe exceeded under the density bonus provisions contained in the Housing Element. These sites, further described in the Housing Element, include Banning Ranch, Avocado-M&cArthur, and Bayview Landing. 0 Guiding Principles for Workforce and Special Needs Housing MixedUse Zoning. Newport Beach has a "Residential Overlay Zone" that allows mixed residential and commercial developments. Many commercial properties include an "R" Overlay designation and may integrate residential uses with commercial uses at a density of one unit for each 2,375 square feet of land area. This designation provides additional opportunity to provide housing in the City. Redevelopment and Infill Opportunities. Since the Otyis essentially built out with the exception of a few vacant parcels, and land costs continue to escalate, the primary opportunities for new housing have been identified in infill and/or the redevelopment of existing properties. These properties are typically located in older areas of the City that were developed during a time when less intense utilization of the parcel was more typical than what now occurs. According to the City's Planning Deputment, based upon the consolidated acreage of these properties, the potential exists to add 1,100 additional units. It should be noted that as these are individual properties and not large land holdings, they are not likely to produce large numbers of units at one time, but ratherslow and intermittent redevelopment with the incremental addition of units overtime. ■ Annexation Areas. The Newport Beach Sphere of Influence (ultimate incorporated city limits) includes additional opportunities for future residential development in, Bay Knolls" and' "West Santa Ana Heights". The Citywill explore opportunities to increase housing opportunity in these areas. ■ DensityBonus. The City will grant a density bonus or provide other incentives of an equivalent financial value to developers who agree to construct housing for low and moderate -income households. ■ Requirement to provide affordable units (or in -lieu fees) in new residential developments. The Citywill continue this program with a goal of an average of 20 percent of all new housing units developed to be affordable to very low and low-income households over the five-year planning period of the Housing Element. ■ Require affordable housing in new residential developments within the Coastal Zone The City requires the provision of affordable housing, where feasible, in projects of ten (10) or more units proposed in the Coastal Zone areas of the City. ■ Mobile Home Parks. There are currently ten (10) mobile home parks in the City, many of which are occupied bypermanent residents. Space rents range from $500 to $3,000 depending on location in proximity to Newport Bay and size of the mobile home. Based on rent data reflected in the Housing Element, several mobile home parks remain affordable housing options relative to other types of conventional housing available in the City. ■ Condominium Conversion Ordinance. The conversion of an existing apartment building to an ownership condominium is typically more affordable than the construction of a similar unit. In the mid 1990's, the City of Newport Beach adopted a new ordinance to ease restrictions on condominium conversions.as a means to promote first time home -buyer 7 Guiding Principles for Workforce and Special Needs Housing opportunities and the rehabilitation of smaller more affordable housing units. Since 1995, the City has approved the conversion of 167 units. Suggested Workforce and Special Needs Housing Guiding Principles 1. Promote a balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments including very low, low, moderate, and upper income households. Discussion: In much the same way that the City must balance land uses and provide a variety of business types to maintain a positive fiscal balance, the City should strive to balance the variety of housing types, designs and opportunities available for all segments of the community. Such a balance contributes to a vital economy because people tend to shop where they live; adds to quality of life and reduces traffic congestion to the extent that more individuals can live in the City -where theywork; and enriches the social fabric through the variety of household types in the community ranging from unmarred singles, to young families with children, to elderly single person households. Each group has different housing needs and contributes in its own way to enrich the community experience. Further, a variety of housing types affordable to all economic segments of the community allows greater opportunity for resident's children to afford housing in the community in which they grew up rather than having to move away due to the cost of housing. This concern is increasingly expressed in communities throughout the region as land values and housing prices continue to escalate. As sumtnarized above, the Housing Element outlines current City resources and programs that support and facilitate this guiding principle. 2. Maintain quality residential development through the application of sound planning principles and policies that encourage the preservation, conservation and appropriate renewal of the City's housing stock. Discussion: This principle confirms the idea that Newport Beach is primarily residential community, and that new development should preserve and protect that quality, not diminish it through inappropriateness or excess. The desire to provide a variety of housing types and opportunities, including workforce and special needs units, in no way diminishes the need to maintain an appropriate community standard in the quality of residential development. Tlvs principle relates to the need to insure not only that residential development is maintained at an appropriate level of quality, but that community character is maintained by ensuring the new commercial or business development is appropriate in scale to nearby residential. 3. Consider mixed -use development as a means to create additional housing opportunities. Guiding Principles for Workforce and Special Needs Housing Discussion: Due to the limited availabilityof vacant land to construct new housing, each opportunitythat allows and or encourages housing development should be strongly supported. Based on the City's abilityto provide incentive&such as a densitybonus, and local requirements for affordable housing or in -lieu fees, each mixed -use project provides a potential opportunityto add worldorce and special needs units to the City's housing stock Community support for mixed -use development was acknowledged in the Visioning Process and the City's Economic Development Committee (EDGE has indicated support for increasing opportunities for mixed -use in Newport Beach. Support for mixed -use is also reflected in Guiding Principal 4 of the Economic Development discussion paper. Mixed -Use development can take the form of multiple uses, in which residential, retail or office uses may be sited adjacent to each other, or be in the form of single development projects that combine mixed uses into multiple stories of development, such as retail commercial on the ground floor with residential or office space above. It is important to encourage land use combinations that are mutually supportive. Residential development creates local spending power to support retail development. Office uses also create daytime spending power as well as creating jobs for residents who may occupy the same building or adjacent units. For Newport Beach,, it is also critical to maintain the proper scale for mixed - use development. There are many good mixed -use urban design projects in smaller city downtowns, which are appropriately scaled to the residential community environment desired byNewport Beach residents. Examples in Santa Barbara, Los Gatos and Brea have proven that it is critical that these developments maintain very high quality standards to avoid overcrowding or other negative aspects of higher development intensities that have occurred in older forms of mixed -use development, particularly in some of the eastern cities. 4. Consider the rezoning of under•perfomring commercial areas to allow residential ormixed-use development. Discussion: The commercial Market Analysis conductedbyADE for this general plan update found that some commercial areas are underutilized and under -performing, such as the Balboa Peninsula and West Newport. Participants in the Visioning Process strongly agreed that the City should consider rezoning these areas to allow residential and mixed -use. Rezoning these areas, where appropriate, provides an opportunity for redevelopment that can benefit the City economically by recycling to more viable commercial land uses and provide additional housing opportunities in a market with strong housing demand, and address the City's need for additional units to meet Housing Element goals. This principle is supported by Guiding Principle 6 in the Economic Development discussion paper that discusses designating commercial land uses in a manner that can be supported bythe market. 5. General Plan policies shall protect the high value of residential property. Discussion: Protection of the City's residential values is a critical component of the City's fiscal strength and its community character and identity. The provision of additional 9 Guiding Principles for Workforce and Special Needs Housing housing, including vvorlsforce and special needs housing, must be consistent with this principle and Guiding Principle No. 2 above. This principle also confirms the idea that Newport Beach is primarily a residential community, and that economic development should preserve and protect that quality, not diminish it through inappropriate or excessive development. It also relates to the need to ensure that commercial and business development is appropriate in scale to nearby residential neighborhoods. This principle, included as Guiding Principle 9 in the Economic Development discussion paper, further reinforces the conclusion of the fiscal analysis that higher value residential units pay for themselves in terms of generating sufficient tax revenues to payfor neighborhood services. City of Newport Beach General Plan Update GUIDING PRINCIPLES FOR POLICY FORMULATION April 20, 2004 EIP Associates Urban Crossroads, Inc. Applied Development Economics Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAQ will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. These will indicate the areas of the City in which existing uses and densities will be conserved and those areas in which change is anticipated or maybe encouraged. General direction regarding these areas was received from the public during the Visioning Process. As a result, a number of specific sub -areas have been identified bythe General Plan Update Committee (GPUQ as "targeted areas" for which the GPAC will consider one or more land use alternatives. Illustrative of the areas to be considered are Banning Ranch, the John Wayne Airport business park/industrial area, Mariners Mile, West Newport Industrial area, Old Newport Boulevard, and Central Balboa. As the fast step in the upcoming process, the GPAC, will define the Guth gPni 2*les that it will use as the basis for framing and assessing the land use alternatives. Essentially, these constitute the benchmarks, bywhich all alternatives will be judged. Theywill elaborate and expand upon the Vision Statenem that was defined through the public process during the past year and a half. These Prb*la may apply to environmental values that can influence the location and density of development, such as a principle that "no development shall be permitted in riparian coastal canyons." They may apply to values regarding community character, such as a principle that "new development shall respect and maintain the scale, character, and quality of the community." Additionally, they may apply to specific economic sectors such as supporting economic activities associated with the harbor or supporting the revitalization of older commercial areas. In terms of the level of detail for the Guid TPrib aples, they may be thought of on a level with General Plan goals, from which more detailed policies and implementation measures will be developed. Many, if not all, of the GddingA*i ples will be expressed in some form as goals in the draft General Plan, but for now the focus is on their function as benchmarks for developing and evaluating the land use alternatives. Once the GwdrngPrinaples have been defined, the GPAC will identify one or more land use alternatives for the twelve "targeted" sub -areas of the atyin its May through July meetings. For each sub -area, DiscaasionPapen will be distributed that summarize its existing conditions, key planning constraints and opportunities, and possible land use strategies. Following their identification, the alternatives will be evaluated for their comparative impacts on traffic, fiscal costs Guiding Principles for Mobility and Alternative Transportation Modes and revenue, and environmental resources. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a PmfentzlLand Use Plan will be selected during October. The following section summarizes the circulation issues raised in the Visioning Process, as described in the document, "CommunityDirections for the Future:' The subsequent section summarizes the major circulation issues identified in Section 3.1 Circulation, of the Technical Background Report, and the Newport Beach Planning Issues Report, both prepared byEIP Associates based upon the work of the general plan traffic consultant Urban Crossroads, with review and comment by City staff. Based on these summaries, this paper presents a set of suggested Gwi &Uprinripla for circulation and alternative transportation methods for consideration bythe GPAC. Summary of Mobility and Alternative Transportation Mode Issues THE VISIONINGPROCESS The City initiated a Visioning Process in January of 2002 that culminated in publication of the Community Directions for the Future report in January2003. The Visioning Process included a series of events, meetings and public information gathering programs and resulted in a vision statement for Newport Beach and substantial public input on a wide range of issues for consideration in the General Plan Update. The summaty information presented here reflects the statements and issues related to circulation issues such as traffic congestion, parking, traffic impacts to neighborhoods, and alternative transportation modes that were expressed during the visioning process. The vision for the future of Newport Beach describes the City's desired end state and what the communityhopes to have achieved by2025. Under the heading, "Efficient and Safe Circulation," the vision is stated as follows: "Traffic flows smootblythroughout the community. The transportation and circulation system is safe and convenient for automobiles and public transportation, and friendly to pedestrians and bicycles. Public parking facilities are well planned for residents and visitors."_ The Visioning Process also gained public input on a range of more specific issues related to circulation impacts. There was broad community consensus on some circulation issues, and more diverse opinion on others. The issues with consensus include the following: ■ While there was broad support among Visioning Festival participants for a wide range of solutions to address parking impacts to residential neighborhoods, GPAC members cite that remedies to parking problems must be evaluated in relation to specific sites and neighborhoods. ■ GPAC members specifically emphasized the importance of improving sidewalks and pedestrian walkways in the West Newport area. 2 Guiding Principles for Mobility and Alternative Transportation Modes ■ There was support for the City to encourage the use of alternative transportation modes, including public transit and improved bike and pedestrian trail connectivity, and signal synchronization, especially during peak hours. Other transportation solutions that. received support included improving roadway signage, especially for tourist destinations; eliminating street parking along Mariner's Mile during peak hours; and providing shuttle service for senior citizens, students, and tourists. A divergence of opinion exists on the following issues related to circulation. ■ A majority of participants are concerned with traffic congestion, but views differ over how to address the problem Fifty-seven percent of resident and business respondents rated traffic as somewhat congested. Roughly third of businesses and a quarter of residents rated it very congested. When asked how to remedy congestion, however, participants have not reached consensus on anyone proposal. A majority of respondents opposed all the suggested options to improve traffic circulation. The level of support for most options was low, with business respondents generallyshowing higher levels of support than residents. Suggested potential improvements include widening jamboree and Mac Arthur, an overpass at Jamboree and MacArthur; and widening Coast I-Eghway through Mariner's We. ■ There was agreement that current conditions need to be improved, but some participants stated that capacity should not be added to encourage new development. ■ No clear consensus emerged as to how to remedy traffic impacts to neighborhoods. In surveys, only37 percent of residents and 29 percent of business support traffic calming measures such as stop signs, narrowed streets or roundabouts. Some have suggested stricter enforcement of speed limits and improving umit options and school transportation. ■ Overall people want the Cityto set firm constraints on development, including expansion of employment centers and hotels; however, additional development may be acceptable in certain areas under certain conditions. Concerns were expressed regarding traffic impacts that may result from additional development activityin the following potential development areas: o Fashion Island. Some GPAC members were concerned that any expansion, however limited, would increase traffic congestion. o Newport Center. Visioning Summit participants expressed concerns about traffic impacts and parking safety around Newport Center. Of particular concern is the congestion in the areas of San Miguel, MacArthur, and Avocado. o Airport Business Area. Some GPAC members expressed concern about traffic impacts in this area since it is being targeted for revitalization and 3 Guiding Principles for Mobility and Alternative Transportation Modes some suggested that the City consider transferring development rights as a trade-off between building heights and the amount of remaining open space in the area. TECHNICAL BACKGROUND REPORT (TBR) ANDNEWPORTBEACHISSUES REPORT The TBR is a comprehensive documentation of the existing conditions in the City relevant to preparing an updated general plan. The Newport Beach Issues Report is a summary of the issues expressed in the visioning process and the issues identified as a result of the research conducted for the TBR The circulation issues in the TBR and the Issues Report prepared byEIP Associates are based on technical traffic analysis conducted byUrban Crossroads, the traffic consultant for the City's general plan update. The summary below reflects circulation related issues such as traffic congestion, parking, traffic impacts to neighborhoods and alternative transportation modes such as transit, bicycle, pedestrian and water transportation. ■ Based on technical analysis, growth from the current land use element combined with growth in areas surrounding the City -will result in increased congestion even with build - out of the roadway system in the Circulation Element. A combination of enhanced roadway improvements, changes to the level of service standard, and reductions in current land use intensity will be required to achieve consistency between the Circulation and Land Use Elements. ■ Through traffic on key roadways is typical for the region, even though traffic on key roadways (Coast Highway, MacArthur, etc) is perceived as an issue based on comments from the visioning process. However, the potential for additional through traffic is directly related to the ability of the regional highwaysystem (e.g. I-5, I-405, SR 55, and SR 73) to accommodate ongoing growth in regional traffic. ■ Parking issues in the coastal areas in general and Balboa Peninsula, Balboa Island, and Corona del Mar, in particular, are well -recognized within the City. Potential future efforts to address this issue include a pernut-parking program, parking time limits, consolidation of public parking, increased public parking, shared parking programs, shuttle systems, and valet services. ■ An established network of ,bus mutes serves current employment, shopping, and recreational areas in Newport Beach, although bus service is an issue in Newport Coast. ■ Bicycle paths and trail systems in Newport Beach have been designed to accommodate commuters, pedestrians, and recreational cyclists. Ongoing efforts to expand this system should include completing the master plan and identifying opportunities to provide linkages that connect complementary land uses. 0 Guiding Principles for Mobility and Alternative Transportation Modes ■ Pedestrian facilities are an important component of the standard roadway classification cross -sections in the Circulation Element. Inclusion of these facilities is consistent with policies to support incorporating pedestrian features into future development projects. Pedestrian access points from Coast Flighway south to Newport Bay and pedestrian facilities in Mariners Mile were also raised as particular areas of concern. Suggested Circulation and Alternative Transportation Mode Guiding Principles 1. Establish General Plan land uses and density/intensity limits that will have less impact on peak hour traffic. Discussion: The currently adopted General Plan land uses, in concert with regional traffic, result in congestion levels that exceed the currently adopted standards. Considering land uses with reduced peak hour traffic generating characteristics could improve this situation, or could allow new development that doesn't worsen the situation. 2. Consider the potential benefits and costs (housing, social, community character, fiscal and economic) of land use and circulation system alternatives as part of the process of adopting goals regarding acceptable levels of service for the circulation system Discussion: During the visioning process, people said theywant the Cityto set firm constraints on development; however, additional development maybe acceptable in certain areas under certain conditions. People also expressed concern about traffic congestion, but there was not consensus on how to remedy it. The traffic model shows that congestion will worsen in the future, as a result of regional influences as well as build out of the existing General Plan. This guiding principle -allows the Cityto use analytical tools such as the traffic and fiscal impact models to identify the benefits and costs of new development, and then make informed decisions regarding conflicting community goals. 3. Regional traffic will be included in the analysis of land use alternatives, but such traffic should not be the sole reason for rejecting a land use alternative that would have net benefits to Newport Beach. Discussion: The traffic study shows that regional traffic is a significant contributor to congestion in Newport Beach, due to the City's location in a coastal and urbanized area and the goals of surrounding cities to add development. This traffic must be included in the analysis of General Plan alternatives so that the complete picture is understood before decisions are made. However, regional traffic is outside the control of Newport Beach, and should not limit the Cit-/s abilityto plan for future development in a way that may benefit Newport Beach. The existing Circulation Element recognizes this principle by detennin,_ng the Land Use Element's correlation with the LOS D standard without regional traffic included in the analysis. Regional traffic, however, is included in determining the need for improvements to the circulation system and consistencywith regional plans. This principle 5 Guiding Principles for Mobility and Alternative Transportation Modes will allow the General Plan to give priority to the needs and goals of Newport Beach, rather than constraining the Citybywhat is happening around it. 4. In selecting land use and circulation system alternatives, weight will be given to traffic congestion that is ongoing as well as to congestion that is limited to a few hours of the day or a few months of the year. Discussion: Manyof Newport Beach's congested intersections are impacted only for a few hours each weekdaywhen people are going to and leaving their jobs, and operate well above the City's standard for most of the day and during weekends. Similarly, the coastal areas suffer their worst congestion during the summer months when there is extra visitor traffic, but operate well during the rest of the year. Although traffic.congestion occurs at limited times, these are the times that Newport Beach residents are the most impacted. If the City plans to accommodate these peak periods at its standard of LOS D, it maybe necessary to consider circulation system improvements that are inconsistent with community character goals or constrain land use alternatives in a waythat could limit achievement of economic development goals. This principle provides that the City will consider traffic congestion at all times of the day and all seasons of the year in planning for future development. 5. The community will accept additional congestion when it chooses to maintain the current urban fonn/community character by limiting roadway widening or other circulation system improvements. Discussion: The vast majority of residents view Newport Beach as a residential beach town with broad appeal as a tourist destination and that the community's character is a significant attribute. There is a sense that large-scale circulation system improvements will have a negative affect on the community's character and lessen its charm For example, the City may not want to widen Coast highway in Mariner; Mile because it would increase the width of pedestrian crossings, increase traffic speed and result in a "freeway" feel; adversely impacting the "village" atmosphere and the success of existing businesses. Strong opposition to widening Jamboree Road (71 percent residents/62 percent business) and MacArthur Boulevard (68 percent residents/60 percent business) were also expressed for the same reasons. Participants were generally opposed to overpasses anywhere in the City, although a small contingent supported an overpass at Jamboree and MacArthur. Residents and businesses preferred leaving roads as they currently are to widening options bya 2 to 1 ratio. At the same time, it should be recognized that any"downsizing" must be accomplished through a cooperative effort with the Orange County Transportation Authority and other affected agencies. Otherwise, the Citywill risk losing funding for (other) future roadway improvements. 0 Guiding Principles for Mobility and Alternative Transportation Modes 6. Consider establishing a different level of service standard for the airport area, with consideration of possible impacts on residential areas. Discussion: The Airport Business Area is part of sub -regional business area that includes the Irvine Business Complex and the Airport Business Parkin Costa Mesa. The area includes intensively developed office areas in addition to smaller -scale industrial uses. The City of Irvine uses special relaxed LOS standards in this area when evaluating development proposals. The combination of external factors (traffic from John Wayne Airport, for instance) and economic potential that minimizes impacts to City residents combine to suggest that a different level of service standard for this area maybe of benefit to the City of Newport Beach, as well. This could allow consideration of intensification and/or land use changes, which could upgrade the Newport Beach portion of this area and make it more productive for property owners and the City. 7. Improve parking supply and use of existing resources, and reduce congestion in tourist areas. Discussion: Several areas of the Cityare impacted bytourim, such as Balboa Village, Central Balboa Peninsula, McFadden Square, Mariner's Mde and Corona del Mar. Each of these areas experience traffic congestion and has parking issues. Shared parking programs, consolidation of public parking facilities, free shuttles, and other approaches, including the identification of locations to support them (e.g., the Airport Area), could enhance these areas. 8. Consider urban scale development in areas where there is potential for development patterns that will minimize traffic. Discussion: Considering the limited options available and the lack of consensus for system improvements to address the City's traffic congestion, the City -must use smart growth concepts where possible. Approaches such as transit oriented development, mixed use, and compact development have been successful in other communities. In Newport Beach there is an example of mixed use development in Newport Center, which includes housing, offices, retail, visitor accommodations, cultural and recreational uses. Use of these concepts can provide benefits to the quality of life in communities by reducing traffic, providing housing adjacent to employment; and creating 18-hour activity centers in the commercial areas in which they are located. Participants in the visioning process as well as the City's Economic Development Committee (EDP have indicated support for increasing mixed -use development in Newport Beach. One area which maybe considered for urban -scale mixed use is the Airport Business Area, while less intense mixed use might be considered in older on -street commercial areas such as Mariners Mile. This principle strengthens support for mixed use based upon the reduced traffic impacts of mixed -use projects. 7 9. Increase City strategies and programs to enhance the development and use of alternative transportation modes and transportation systems management. Discussion: There are many proven ways to reduce congestion and improve mobility through the use of alternative transportation modes and transportation system management. Transit modes such as shuttles (particularly in the heavily congested tourist areas), light rail, electric cars, taxis (both ground and water), boats, bicycles and walking are alternatives to driving private automobiles. System management possibilities include traffic signal synchronization, rideshare programs and carpooling. 10. Plan the arterial roadway system to accommodate projected traffic at a level of service acceptable to the community while minimizing neighborhood intrusion. Discussion: Widening and improvements to the arterial roadwaysystem can greatlyreduce the intrusion of pass -through traffic into residential neighborhoods. Attthe same time, such improvements can be detrimental to the areas through which they pass, particularly small on - street commercial districts with a strong pedestrian orientation such as Corona del Mar. As such, there are trade-offs which must be resolved as the circulation system is planned for the future. City of Newport Beach General Plan Update GUIDING PRINCIPLES FOR POLICY FORMULATION Discussion Paper 5: Guiding Principles for Environmental Conservation April 21, 2004 EIP Associates Introduction Beginning in May 2004, the Newport Beach General Plan Advisory Committee (GPAQ will initiate its discussion and deliberations to determine the appropriate designations for land use throughout the City. These will indicate the areas of the City in which existing uses and densities will be conserved and those areas in which change is anticipated or maybe encouraged. General direction regarding these areas was received from the public during the Visioning Process. As a result, a number of specific sub -areas have been identified by the General Plan Update Committee (GPUQ as "targeted areas" for which the GPAC will consider one or more land use alternatives. Illustrative of the areas to be considered are Banning Ranch, the John Wayne Airport business park/industrial area, Mariners Mile, West Newport Industrial area, Old Newport Boulevard, and Central Balboa. As the first step in the upcoming process, the GPAC will define the,Gtdc&gAi*1es that it will use as the basis for framing and assessing the land use alternatives. Essentially, these constitute the benchmarks, by which all alternatives will be judged. They will elaborate and expand upon the Vision State mnt that was defined through the public process during the past year and a half. These Prtnaples may applyto environmental values that can influence the location and density of development, such as a principle that "no development shall be permitted in riparian coastal canyons." They may apply to values regarding community character, such as a principle that "new development shall respect and maintain the scale, character, and quality of the community." Additionally, they may apply to specific economic sectors such as supporting economic activities associated with the harbor or supporting the revitalization of older commercial areas. In terms of the level of detail for the GadtngPrin*les, they may be thought of on a level with General Plan gays, from which more detailed policies and implementation measures will be developed. Many, if not all, of the GddTPnrn*Ies will be expressed in some form as goals in the draft General Plan, but for now the focus is on their function as benchmarks for developing and evaluating the land use alternatives. Once the GddTPiim ples have been defined, the GPAC will identify one or more land use alternatives for the twelve "targeted" sub -areas of the City in its May through July meetings. For each sub -area, DismssianPapen will be distributed that summarize its existing conditions, key planning constraints and opportunities, and possible land use strategies. Following their identification, the alternatives will be evaluated for their comparative impacts on traffic, fiscal costs and revenue, and environmental resources. The impact analyses will be presented to and reviewed with the GPAC and at workshops designed for input from the general public in September. Based on the input received, a PT�n&Land Use Plan will be selected during October. The following section summarizes the environmental resource issues raised in the Visioning Process, as described in the document, "Community Directions for the Future." The subsequent section summarizes the issues that were identified through technical research and analyses conducted for the Technical Background Report. Based on these summaries, the paper provides a set of suggested Guiding Principles for environmental conservation for consideration by the GPAC. Summary of Environmental Conservation Issues THE VISIONINGPROCESS The City initiated a Visioning Process in January of 2002 that culminated in publication of the CommunityDirections for the Future report in January2003. The Visioning Process included a series of events, meetings and public information gathering programs and resulted in a vision statement for Newport Beach and substantial public input on a wide range of issues for consideration in the General Plan Update. The summary information presented here is limited to statements and issues related to environmental resources of the City. The vision statement for the Cityunder the heading of "A aalthyNatural Environment," reads as follows: Protection of environmental quality is a high priority. We preserve our open space resources. We maintain access to and visibility of our beaches, parks, preserves, harbor and estuaries. The ocean, bay and estuaries are flourishing ecosystems with high water qualitystandards. The following findings were determined based on generally -broad agreement among community members during the Visioning Process. ■ There is general consensus that the City s harbors and beaches are to be protected and enhanced as a resource. Visioning participants wished to protect the harbors and beaches as visual and recreational resources, while GPAC members felt that as harbors and beaches are improved as recreational uses, visual and economic benefits would follow. ■ Most participants touted water quality and pollution control as important concerns. GPAC members recommend that the City define separate water quality and conservation policies for different categories of water resources, such as ocean/bayand drinking. Newsletter questionnaire respondents hoped to make the clean-up and revitalization of the beach areas as priorities on the aty's agenda. ■ A majority of the participants and members of GPAC strongly agree that coastal bluff areas are important and should be protected through stricter codes, tougher enforcement and improved planning and design efforts. Fifty-six percent of resident survey respondents support atyprotection of the coastal bluffs, while 38 percent favor the protection of property owners' rights. Participants felt that views of and from the bluffs need to be preserved. Specific bluffs that participants considered particularly significant 2 Guiding Principles for Environmental Conservation include Castaways, Banning Ranch, Sunset Ridge, Hoag, Newport Coast, and Irvine Terrace. There was some support for restricting the height and size of homes, establishing large setbacks to protect bluffs, and being more restrictive in the use of variances. Other participants stressed the need to balance increased controls with the property owner rights. ■ Residents agree that the City should preserve remaining public view corridors that include the coastal bluffs and create more views wherever possible. GPAC members recommended a citywide inventory of existing public view corridors be conducted, suggested offering redevelopment incentives to enhance those corridors and create additional opportunities for views, which other visioning participants agreed with. Another suggestion was for the City to purchase public view corridors as public land, while other participants wanted to protect private views as well as public views. Approximately75 percent of surveyrespondents felt that current regulations regarding buildings, plants and trees, and business signs that interfere with views were either "just right" or "not strong enough:' ■ Although most participants concur that tidelands and other public lands should be preserved as open space, there was some support, especially among business owners, for development of these areas. ■ Community members highly value the open space and parks within the City, and nearly 80 percent of participants of a visioning event wanted the Cityto be more proactive in acquiring these areas, even if doing so meant bond financing. A divergence of opinion exists on the following environmental conservation issue concerning Banning Ranch. ■ Resident survey respondents were divided down the middle over whether to allow for limited development of Banning Ranch or to preserve the entire area as open space. This view was also held among GPAC members, where some members supported using a portion of land for housing while others raised concerns about any development due to environmental, safety hazards, and traffic issues. TECHNICAL BACKGROUND REPORT EIP prepared the sections associated with environmental conservation for the Technical Background Report (TBR). The issues that were identified as a result of the research conducted for the TBR are organized into larger environmental resource topics as summarized below. Biological Resources ■ Protected and unprotected aquatic resources can be found along Citycoastlines, Upper Newport Bay, Newport Harbor, areas of Crystal Cove State Beach, and in the vicinity of Corona del Mar. 3 J Guiding Principles for Environmental Conservation ■ A number of features and drainages within the Newport Beach could be delineated as waters of the United States and fall under the jurisdiction of the Army Corps of Engineers. ■ FederalV or State -listed, as well as sensitive, plant and wildlife species occur or have the potential to occur within the Planning Area. ■ , Wildlife corridors within the Planning Area provide valuable habitat for wildlife species. ■ A total of 29 Environmental StudyAreas have been identified within the Planning Area, and potential threats to these areas include water quality, traffic, noise, public access, encroaching development, erosion and sedimentation, stormwater runoff, and introduction of invasive species. 15 drology and Water Ouality ■ Future development is likely to increase the amount of impervious surfaces, thereby increasing stormwater runoff and sedimentation. This could result in potential deterioration in water quality and affect the all water resources within the Planning Area. ■ Some bay beaches are impacted by urban runoff, which brings pollutants such as trash, oils, pesticides, pet waste, and trace metals, all of which may impair wildlife habitat and limit bay users' enjoyment of swimming and other water contact sports. Specifically, degraded water quality of Newport Bay and Semeniuk Slough could increase the number of days the beach is closed. ■ Urban activities such as the use of fertilizers within the Planning Area contribute to the degradation of existing groundwater quality. ■ Natural activities such as storm events, as well as man-made activities, cause sedimentation within the Bay and require dredging. Dredging activities are used to remove sediment. Air Quality ■ Continued development will increase the amount of air pollutant sources within the Planning Area. The primary source of mobile source emissions will be from motor vehicles and water craft while stationary air pollutant sources will be primarily from construction activities, implementation of industrial or manufacturing uses, and boilers that provide heat. ■ The segregated, low -density, auto -oriented pattern of development does not facilitate the expansion of public transit services or alternative modes of transportation within the Planning Area. 11 Guiding Principles for Environmental Conservation ■ Vehicles capable of using alternative fuels and possibly electricity maybe commercially available and economically -viable in the near future, and will need a large infrastructure to support and refuel these vehicles before the public can accept them. Visual Resources ■ As the City contains significant visual resources -coast, bluffs, hillsides and canyons- and much of Newport Beach's character and visual quality derives from its natural setting, it becomes important to protect views and encourage development that enhances such views. ■ While the City has Shoreline Height Limitation regulations, expansion of existing and development of new homes upland from the coast may affect the community character of certain neighborhoods and have secondary visual impacts. In addition, the City has no specific regulations that determine the placement of development on bluffs. ■ There is an opportunity to provide vista turn out points and interpretative signs to add to the quality of life for residents and visitors. ■ State Route 1(SR 1) is identified as Eligible for State Scenic Highway designation and could be nominated for the State Scenic Highwayprogram. Mineral Resources ■ Future development and/or recreation use of the Banning Ranch area could require remediation and clean-up, as well as be impacted by existing oil operations. ■ Opportunities exist for remediation and/or reuse of the 33 abandoned oil well sites concentrated along the northwest boundary and located throughout the Planning Area. Suggested Environmental Conservation Guiding Principles 1. Protect, and rehabilitate or enhance, terrestrial and marine habitats located within the City through careful siting of future development. Discussion: Potential impacts to biological resources located within the City can be affected by future development and need to be minirr,ized. The Biological Resources Addendum dated December 4, 2003 ranks habitat qualitywithin certain undeveloped areas in the City. Areas with a rank of 1, indicating a high biological resource value, would require a resource permit from federal and/or State agencies prior to development. Areas with a ranking of 1 are located within the following study areas: Semeniuk Slough, MacArthur and San Miguel, Buck Gully, Morning Canyon, and Banning Ranch. While no extensive new development is anticipated in any of these study areas except for Banning Ranch, there is the possibility that expansion of existing uses could occur. Within Banning Ranch, given that it is primarily undeveloped, new development could also affect biological resources. Thus, new Guiding Principles for Environmental Conservation development may need to be located outside of areas with a rank of 1, or buffers between development and habitats need to be incorporated to protect resources. Additionally, expansion of existing uses and infill development within other areas of Newport Beach need to consider the presence of biological resources in order to reduce adverse impacts. Implementing measures such as strictly controlling encroachments into natural habitats to prevent impacts that would significantly degrade the habitat, and limiting encroachments into wetlands and mitigating any losses can also minimize impacts to biological resources. In addition to protecting biological resources , rehabilitation or enhancement of degraded areas within the Planning Area could also occur. As an example, the Banning Ranch site has been disturbed by oil infrastructure and can be rehabilitated to improve the quality of biological habitat onsite. 2. Protect and improve water quality within the bay, estuaries, tidelands, and ocean. Discussion: The continuation of urban activities and future development within Newport Beach can affect the water quality of the bay, estuaries, tidelands, and ocean. However, water quality of the Planning area is monitored regularly, and there are numerous Federal, State, and local regulations in place to protect water quality. The Citywill also continue to comply with the National Pollution Discharge Elimination System (NPDES) that requires preparation of a stormwater pollution prevention plan, as well as implementation of best management practices during construction. Additionally, as new development and redevelopment activities on private property is proposed, onsite controls to reduce runoff into drainages shouldbe required, as well as the incorporation of capital improvements such as filters and swales on public land by the City. Water quality impacts to the bay, estuaries, tidelands and ocean can be m;m nized and improved through these measures. This Guiding Principle would support the views of the Visioning participants and GPAC members. 3. Minimize air quality degradation through land use practices and circulation improvements that reduce reliance on the automobile. Discussion: Implementation of land use approaches that include transit oriented developments, and live/work situations that contain a mix of uses, such as housing and retail, can discourage automobile use and minirrri a air quality degradation. In addition, encouraging the use of alternative modes of transportation through expanding infrastructure to support vehicles using alternative fuels such as electricity, or the use of water transportation can further minimize air pollution within the Planning Area. Lastly, the use of public transit can be encouraged by expanding infrastructure and improving existing service. 4. Encourage the maintenance of natural landforrus. Discussion: The Planning Area contains significant topographic features such as the Newport Mesa, the San Joaquin Hills, bluffs associated with Newport Bay and the Pacific 6 Guiding Principles for Environmental Conservation Ocean, and canyons abutting stream courses. These natural landforms should be maintained. Generally, The Newport Coast Local Coastal Program grading standards tend to locate development on ridges in order to.maintain and protect the environmental resources in the coastal canyons. In addition, while the City has policies to minimize the alteration of natural landforms and bluffs, and density limits have been established omitting slopes from the calculation, specific regulations in these areas have not been adopted. The City does, however, have very specific regulation in regards to floor area, height and building bulk. Over half of the visioning participants and most GPAC members agree that coastal bluff areas should be protected through stricter codes, tougher enforcement, and improved planning and design efforts, while some visioning participants favor the protection of property owners' rights. By implementing more restrictive siting limitations for new structures on significant topographic features, and not giving variances from these ordinances, impacts to natural landforms could be reduced. However, such restrictions in already subdivided areas could severely reduce, or even eliminate, future development on these lots. 5. Encourage the protection and creation of public viewsheds within the City. Discussion: Visioning participants indicated the desire to preserve remaining public view corridors and for the Cityto purchase these areas as public land. Manyparticipants also wanted tidelands and other public lands to remain as open space to preserve views. GPAC members recommended that a citywide inventory of existing public view corridors be conducted, suggested redevelopment incentives to enhance those corridors, and to create additional opportunities for views. 6. Minimize the exposure of people to noise hazards. Discussion: Currently, there are existing noise conflicts located primarily in dense residential areas near the ocean, harbor and bay. Infill development in these areas will be exposed to the noise conflicts, as well as potentially contributing to the ambient noise levels. Additionally, nighttime restaurant operations will continue to generate noise throughout the Planning Area, and could adversely affect sensitive receptors such as residential uses, medical facilities, convalescent centers, and retirement homes. There is also the potential for mixed - use developments to be implemented in the City, which has the potential to increase additional populations to noise. Further, if air traffic at the John Wayne Airport increases, despite the fact that most residents are not in support of this, ambient noise levels would also be affected. In accordance to the City's Noise Ordinance, exterior noise levels exceeding 50 dBA between 10 p.m. to 7 a.m. and 55 dBA between 7 a.m. to 10 p.rrL in residential areas, or 50 dBA between 10 p.m. to 7 a.rrL and 60 dBA between 7 a.m. to 10 p.m. in residential portions of mixed -use properties could present a potential nuisance. However, noise impacts can be partially mitigated through retrofitting existing buildings containing sensitive receptors with 7 Y � . Guiding Principles for Environmental Conservation new windows and ventilation systems, as well as insulating these structures and new buildings. As there will always be edges within the Citywhere sensitive and noise -generating uses interface, conflicts can be reduced by including more stringent noise standards or enforcing the existing noise ordinance. In addition, limiting hours of operation, not allowing loitering after business hours, or strategically locating delivery areas are additional measures that can reduce ambient noise levels. Where there are opportunities, buffers such as walls or berms, or setbacks can also be used to minimize noise levels. 7. Minimize intrusion from light sources. Discussion: As new development within the Planning Area occurs, additional light sources will be introduced onsite that could adversely affect surrounding areas during nighttime hours. Implementation of measures such as incorporating landscape buffers between existing and new uses to prevent an increase in lighting on adjacent properties, and requiring that exterior lights direct light pools away -from off -site viewers can minimize intrusion of these sources. 0