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HomeMy WebLinkAbout00 - Items Future Matters - CorrespondenceReceived after Agenda Printed April 15, 2025 Item No. VII From: Garrett, Errica Sent: April 14, 2025 7:48 AM To: City Clerk's Office Subject: FW: Remove 1501 e. 16th st. from housing element Errica Garrett Administrative Assistant to the Mayor and City Council City Manager's Office Office: 949-644-3004 100 Civic Center Drive Newport Beach, CA 92660 -----Original Message ----- From: Heidi Jamison <iamison05@mac.com> Sent: April 11, 2025 2:54 PM To: Dept - City Council<CityCouncil@newportbeachca.gov> Subject: Remove 1501 e. 16th st. from housing element [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Report phish using the Phish Alert Button above. Dear NB City Council, I strongly urge you to remove 1501 E. 16th Street from the Housing Element, as its inclusion threatens the Environmental Nature Center (ENC) and ENC Nature Preschool. We feel fortunate to have been long time supporters of the ENC and had four boys go through nature camp there, and the youngest attended preschool there. They all still love nature, exploration, hiking, camping and being outside even with nothing to do but wander around thinking. I grew up in CdM and remember when there were still wild areas around. Sadly most of these areas are now covered in cement and houses, and only things like a buffalo statue remain to remind us of what once was. Please save a little bit of nature in Newport by not building a tall structure next to a preschool. The height blocks the view of the children to be able to look at the sky, imagine the clouds as something else, and not see cement/manmade structures. There are so few places left where this opportunity for creativity is possible. When you're at the ENC you feel like you're not in a city because you only see the natural world. Everyone always talks about the rights of the homeowners having an ocean view, what about the rights of children to safely play and not have an unobstructed view needlessly taken away?! (Unfortunately, in this day and age, we have to worry about predators looking down on children from windows above.) Isn't the ENC considered a historical part of Newport and shouldn't extra efforts be made to preserve it as is, including sight lines? Shouldn't the ENC itself have a "protected view"? There are plenty of empty strip mall parking lots to be reimagined into multi story housing that don't sacrifice nature. The ENC brings in many underserved and low income children who never get to experience nature except for their time at the ENC. Please don't be short sighted and allow others to build in their sightline and destroy one of the last natural places left in the area. Of course there is also parking, congestion, safety with kids walking/biking to school, construction dust, etc. Everyone talks about how they care about education and families, and the creativity that comes from escaping a city environment, well, here is a chance to show it and not just talk about it. Thank you for considering this. Sincerely, Heidi Jamison TransActionLaw, a Law Corporation WILLIAM B. BRINCKLOE, JR. Attorney at Law April 15, 2025 Aaron C. Harp, Esq. City Attorney City Attorney's Office City of Newport Beach 100 Civic Center Drive, Bay 2E Newport Beach, California 92660 Received after Agenda Printed April 15, 2025 Matter for Future Consideration VIA EMAIL Re: Property Owned by Gallant Family, LLC and Located at 1501 East 16th Street, Newport Beach, California (the "Property") Dear Mr. Harp: By way of introduction, TransActionLaw is legal counsel to Gallant Family, LLC. Yesterday, at 5:21 p.m. Gallant Family, LLC first learned that City Councilmember Erik Weigand has placed on the Agenda for the City Council Meeting at 4 p.m. today, the "Future Agenda (Non -Discussion Item)": "Consider removing the property located at 1501 16th Street from the City's General Plan, so it is no longer designated as a housing opportunity site [Weigand]." Gallant Family, LLC was not provided with notice from the City of Newport Beach of any "non - discussion" regarding the removal of the Property from the Housing Element. It appears the issue was raised as a possible "Future Agenda" item in response to the unfair and unfounded allegation of the Environmental Nature Center ("ENC") that the residential development of the Property places the ENC, including the ENC Nature Preschool, "at risk." Attached is a photo of a banner on the ENC fence along 16th Street with a QR code. The attached landing page directs residents to insert their address. Apparently, they are then linked to their City Council member to request the Property be removed from the Housing Element. The landing page provides as follows: Help Protect the ENC — Take Action Today! The Environmental Nature Center (ENC) and the ENC Nature Preschool are at risk. The City of Newport Beach has included 1501 E. 16`h Street —a property that directly borders both the ENC and the Preschool —in its Housing Element, threatening this vital space for environmental education, early childhood learning, and conservation. We need your voice to demand its removal from the housing element! By taking action now, you can help preserve the ENC and our beloved preschool as a sanctuary for nature, children, and our community. Urge city officials to exclude this site from housing plans and ensure the ENC remains a place of learning and stewardship for generations to come. Act now to protect this irreplaceable resource! The illegitimate campaign of the ENC was apparently started when the ENC learned that Gallant Family, LLC had entered into a contract to sell the Property. Reference is made to the attached cease and desist letter from the undersigned to Paige A. Minteer, Esq., legal counsel to the ENC, dated April 14, 2024. As stated in the letter, on December 28, 2024 the ENC was informed of the plans of Gallant Family, LLC to sell the Property to a highly -qualified residential developer. TransActionLawxom tel (949) 475-6993 1 fax (949) 475-6999 1 wbb@transactionlaw.com Commercial Real Estate & Business Law 1 9841 Irvine Center Drive, Suite 220, Irvine, California 92618 Aaron C. Harp, Esq. April 15, 2025 City Attorney Page 2 Previously, Gallant Family, LLC had sought to obtain entitlements from the City of Newport Beach to develop the Property with an approximate 20,000 square foot medical office building. Gallant Family, LLC expended approximately $600,000 on this effort and had received the final comments of the Planning Department of the City of Newport Beach to the development plans. However, in 2024 when the City of Newport Beach changed the zoning of the Property to permit residential development, Gallant Family, LLC decided to sell the Property for residential development. It is unclear as to exactly how the residential development of the Property would threaten the ENC or the ENC Nature Preschool. In fact, rather than threaten it, the residential development of the Property would probably increase the enrollment at the ENC Nature Preschool. The ENC does not provide any rationale as to its position that because the Property "directly borders both the ENC and Preschool," the residential development of the Property constitutes a threat. The assertions of the ENC are purely emotional and not factual. It appears clear the ENC wants to acquire the Property and is doing everything possible to deter the development of the Property and force a sale to the ENC. As stated in the letter to Ms. Minteer, Gallant Family, LLC maintains the campaign of the ENC constitutes unfair business practices and/or interreference with contract and prospective economic advantage under California law. If the City of Newport Beach cooperates with the ENC and proceeds to place the removal of the Property from the Housing Element on a future City Council Agenda, the developer may terminate the contract. As a result, Gallant Family, LLC will incur significant damages. It is the position of Gallant Family, LLC, if the City of Newport Beach were to consider and/or remove the Property from the Housing Element, the City of Newport Beach could be exposed to potential liability for, at a minimum, the partial taking of the Property. This is because the City of Newport Beach adopted the Housing Element, amended the General Plan, and confirmed to Gallant Family,•LLC that the Property had been re -zoned for residential development. Based upon and in reliance on the foregoing, Gallant Family, LLC withdrew its plans to develop the Property with a medical office building and entered into a contract for the sale of the Property. If the City of Newport Beach acts to withdraw the Property from the Housing Element and/or impedes the legitimate rights to develop the Property, it will clearly be acting improperly and in a manner to impermissibly benefit the ENC. As the City of Newport Beach is aware, the proposed developer is extremely qualified, experienced and well -respected. It is Gallant Family, LLC's understanding that the developer is willing to reasonably consider any issues or thoughts the ENC may have relating to the residential development of the Property. However, instead of acting in good faith and attempting to cooperate, the ENC has taken the all -or - nothing position that the Property should not be developed for residential use. It appears the ENC would now also oppose any other type of development on the Property. This is because the ENC's ultimate goal appears to be to coerce the sale of the Property to the ENC. The City of Newport Beach should not be a willing participant in this scheme. In view of the foregoing, Gallant Family, LLC requests confirmation from the City of Newport Beach that it will not be placing on a future City Council Agenda the issue of the removal of the Property from the Housing Element. Anything less will place a cloud over the right to develop the Property for residential use and significantly damage Gallant Family, LLC. Very truly yours, Attachments William B. Brinckloe, Jr. cc: Mr. Paul S. Gallant (via email) Paige A. Minteer, Esq. (via email) TransActionLaw, a Law Corporation WILLIAM B. BRINCKLOE, JR. Attorney at Law April 14, 2025 Paige A. Minteer, Esq. O'Melveny & Myers 400 South Hope Street, Suite 1900 Los Angeles, California 9007-2811 VIA EMAIL Re: Property Owned by Gallant Family, LLC and Located at 1501 East 16th Street, Newport Beach, California (the "Property") Dear Ms. Minteer: As you are aware, TransActionLaw is legal counsel to Gallant Family, LLC. Furthermore, the undersigned understands O'Melveny & Meyers is legal counsel to the Environmental Nature Center ("ENC"). Reference is made to the attached correspondence to you from the undersigned dated December 28, 2024. In the letter it is concluded, in part: Gallant Family, LLC will be listing the Property for sale. In connection with the City of Newport Beach Housing Element, it is envisioned that the Property will be redeveloped to provide much needed residential housing in Newport Beach. As part of the entitlement process, the ENC will have the opportunity to provide its comments and suggestions to the development plan in a manner that is in harmony with the ENC. Thus, the hardscape and current topography of the Property will not be altered, until the City of Newport Beach has approved all entitlements for the residential development and issued a grading permit. As of December 28, 2024, the ENC was aware of the plans for the redevelopment of the Property. Furthermore, Gallant Family, LLC attempted to placate any concerns of the ENC by noting the ENC would have the opportunity to provide its comments to the development plan. On April 11, 2025, TransActionLaw received the attached email from Erika Ritchie, a reporter with the OC Register. This is when Gallant Family, LLC first learned of the apparent plan of the ENC to attempt to cause the City of Newport Beach to remove the Property from the Housing Element. Ms. Ritchie inquires as to what the ramifications would be and notes the ENC was interested, but not considered as a buyer of the Property. TransActionLaw.com I tel (949) 475-6993 1 fax (949) 475-6999 1 wbb@transactionlaw.com Commercial Real Estate & Business Law 9841 Irvine Center Drive, Suite 220, Irvine, California 92618 Paige A. Minteer, Esq. April 14, 2025 Page 2 Today, at 5:21 p.m. Gallant Family, LLC first learned that City Councilmember Erik Weigand has placed on the Agenda for the City Council Meeting at 4 p.m. tomorrow, April 15, 2025, the "Future Agenda (Non -Discussion Item)": "Consider removing the property located at 1501 16th Street from the City's General Plan, so it is no longer designated as a housing opportunity site [Weigand]." Attached is a photo of a banner on the ENC fence along 16th Street with a QR code. The attached landing page directs residents to insert their address. Apparently, they are then linked to their City Council member to request the Property be removed from the Housing Element. In summary, three and -a -half (3-1/2) months after the ENC was informed of the plans of Gallant Family, LLC and after the ENC was aware Gallant Family, LLC has entered into an agreement to sell the Property, the ENC commences a campaign to have the Property removed from the Housing Element. The thinly veiled goal of the ENC appears to be that by removing the Property from the Housing Element and the termination of the entitlement to develop the Property with residences, the developer will not proceed with the transaction. As a result, the value of the Property will be significantly reduced, which would appear to provide the ENC with the opportunity to acquire the Property at a discount. This letter shall constitute notice to the ENC of the position of Gallant Family, LLC that the ENC is engaging in unfair business practices pursuant to California, Business and Professions Code Section 17200, which is attached. Also, pursuant to California law, ENC's actions appear to constitute the tort of interference with contract and/or prospective economic advantage, the elements of which are: (1) plaintiff and a third party had an economic relation; (2) the relation between plaintiff and the third party would likely have led to future benefits; (3) defendant knew of the relation; (4) defendant intentionally acted wrongfully in order to interfere with the relation; (5) defendant's actions actually interfered with the relation; and (6) defendant's actions caused plaintiff economic harm. In addition, if the City of Newport Beach were to remove the Property from the Housing Element, the City would be exposed to potential liability for, at a minimum, the partial taking of the Property. This is because the City adopted the Housing Element, amended the General Plan, and confirmed to Gallant Family, LLC that the Property had been re -zoned for residential development. Based upon and in reliance on the foregoing, Gallant Family, LLC withdrew its plans to develop the Property with a medical office building and entered into a contract for the sale of the Property. If the City of Newport Beach acts to withdraw the Property from the Housing Element and/or impedes the legitimate rights to develop the Property, it will clearly be acting improperly and in a manner to impermissibly benefit the ENC. It is unfortunate the ENC has adopted such an aggressive and unfounded position in an apparent attempt to contravene the rights of Gallant Family, LLC. This is especially true since Gallant Family, LLC advised the ENC would have the opportunity to provide its input with respect to the development of the Property. Finally, Gallant Family, LLC cannot fathom why the ENC must act to "Protect the ENC" from the residential development of the Property. The residential development of the Property will enhance the community by providing much -needed housing in the City of Newport as mandated by state law. Paige A. Minteer, Esq. April 14, 2025 Page 3 Furthermore, the ENC cannot cite any legitimate reason as to how the well -planned residential development of the Property will be incompatible with the ENC. Thus, the motives of the ENC clearly appear to be to achieve something other than the protection of the ENC. In closing, this letter shall constitute notice to the ENC that it should immediately cease, desist and refrain from any efforts to have the Property removed from the Housing Element. Gallant Family, LLC will suffer substantial damages if the ENC engages in unfair business practices and/or interferes with the contractual rights and prospective economic advantage of Gallant Family, LLC. Very truly yours, 11bl • • William B. Brinckloe, Jr. Attachments cc: Mr. Paul S. Gallant (w/attachs.)(via email) Aaron C. Harp, Newport Beach City Attorney ((w/attachs.)(via email) FA § 17200. Unfair competition; prohibited activities CA BUS & PROF § 172001 West's Annotated California Codes Business and Professions Code Document Details ............................................................................................................................... KeyCite: KeyCite Yellow Flag - Negative Treatment Unconstitutional or Preempted Limited on Preemption Grounds by Cohen v. ConAgra Brands, Inc., 9th Cir.(Cal.), Oct. 26, 2021 Search Details .......................................... Jurisdiction: California Delivery Details Date: April 11, 2025 at 5:42 PM Delivered By: William Brinckloe, Jr. Client ID: WBB Status Icons: WESTLAW © 2025 Thomson Reuters. No claim to original U.S. Government Works. § 17200. Unfair competition; prohibited activities, CA BUS & PROF § 17200 FMKeyCite Yellow Flag - Negative Treatment Unconstitutional or PreemptedLimited on Preemption Grounds by Cohen v. ConAgra Brands, Inc., 9th Cir.(Cal.), Oct. 26, 2021 West's Annotated California Codes Business and Professions Code (Refs & Annos) Division 7. General Business Regulations (Refs & Annos) Part 2. Preservation and Regulation of Competition (Refs & Annos) Chapter 5. Enforcement (Refs & Annos) West's Ann.Cal.Bus. & Prof.Code § 17200 § 17200. Unfair competition; prohibited activities 0it-rentne-s As used in this chapter, unfair competition shall mean and include any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising and any act prohibited by Chapter 1 (commencing with Section 17500) of Part 3 of Division 7 of the Business and Professions Code. Credits (Added by Stats.1977, c. 299, p. 1202, § 1. Amended by Stats.1992, c. 430 (S.B.1586), § 2.) Editors' Notes VALIDITY This section is recognized as preempted by federal law, as to furnishers of information to credit reporting agencies, in Howard v Blue Ridge Bank, N.D.Cal.2005, 371 F.Supp.2d 1139. This statute was held preempted, as to claims involving interstate sales of wholesale electricity, by the Federal Power Act, under which the Federal Energy Regulatory Commission was granted exclusive jurisdiction over interstate sales of wholesale electricity, in the decision of In re Enron Corp., 2005, 328 B.R. 75. This section was held preempted by the Home Owners' Loan Act (HOLA), in the case of Silvas v E*Trade Morp-, Corp., S.D.Cal.2006, 421 F.Supp.2d 1315, affirmed 514 F.3d 1001. This section was held preempted by the Fair Credit Reporting Act (FCRA) with respect to alleged injuries arising from the reporting of credit information to a credit reporting agency in the decision of Johnson v JP Morgan Chase Bank DBA Chase Manhattan, E.D. Cal.2008, 536 F.Supp.2d 1207. This section was heldpreempted by the Federal Communications Act of 1934 with respect to rates and market entry of commercial mobile service providers in the decision of In re Apple iPhone 3G Products Liability Litigation, N.D.Cal.2010, 728 F.Supp.2d 1065, leave to file for reconsideration denied 2010 WL 3119789. Notes of Decisions (7531) WESTLAW © 2025 Thomson Reuters. No claim to original U.S. Government Works. § 17200. Unfair competition; prohibited activities, CA BUS & PROF § 17200 West's Ann. Cal. Bus. & Prof Code § 17200, CA BUS & PROF § 17200 Current with urgency legislation through Ch. 1 of 2025 Reg.Sess. Some statute sections may be more current, see credits for details. End of Document © 2025 Thomson Reuters. No claim to original U.S. Government Works. WESTLAW © 2025 Thomson Reuters. No claim to original U.S. Government Works. 2 esc VISIT ENC VOLUNTEER ABOUT US CAMPS PROGRAMS NATURE PRESCHOOL TUCKER WILDLIFE SANCTUARY SUPPORT SHOP MEMBERSHIP DONATE HOME / TAKE ACTION TAKE ACTION PRODUCT CATEGORIES Our Issues Clothing ENC Gear Home Directory Elections Media Membership BASIC MEMBERSHIP SEQUOIA CIRCLE MEMBERSHIP CART No products in the cart. Help Protect the ENC - Take Action Me ss- Search . Today! .. SEARCH The Environmental Nature Center (ENC) and the ENC Nature Preschool are at risk. The City of Newport Beach has included 1501 E. 16th Street —a property that directly borders bath the ENC and the Preschool —in its Housing Element, threatening this vital space for environmental education, early childhood learning, and conservation. We need your voice to demand its removal from the housing element! By taking action now, you can help preserve the ENC and our beloved preschool as a sanctuary for nature, children, and our community. Urge city officials to exclude this site from housing plans and ensure the ENC remains a place of learning and stewardship for generations to come. Act now to protect this irreplaceable resource! Click "Take Action" below and then enter your address to contact your representatives. 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