HomeMy WebLinkAboutda2007-002 AmendmentRECEIVED
2011 SEP lO AM 9: lj 7
RECORDING REQUESTED BY
AND WHEN RECORDED RETLiRN TO:
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92663-3884
Attn: City Clerk
Recorded in Official Records, Orange County
Tom Daly, Clerk-Recorder
111111 111111111111111111111111111111111111111111111111111111111111 111111111 NO FEE * $ ROO 0 5 1 1 4 5 3 6 $ *
201200050884910:11 am 08/31/12
94412A17 11
0.00 0.00 0.00 0.00 30.00 0.00 0.00 0.00
(Space Above This Line Is for Recorder's Use Only)
This Amendment is recorded at the request and for
the benefit of the City of Newport Beach and is
exempt from the payment of a recording fee
pursuant to Government Code §§ 6103 and 27383.
AMENDMENT TO ZONING IMPLEMENTATION AND PUBLIC
BENEFIT AGREEMENT
between
CITY OF NEWPORT BEACH
and
THE IRVINE COMPANY LLC
CONCERNING ADDITION OF PROPERTIES AND RESIDENTIAL UNITS TO
ZONING IMPLEMENTATION AND PUBLIC BENEFIT AGREEMENT
(PORTIONS OF NEWPORT CENTER BLOCKS 100,400 AND 800 AND SAN JOAQUIN
PLAZA)
AMENDMENT TO ZONING IMPLEMENTATION AND PUBLIC BENEFIT
AGREEMENT
THIS AMENDMENT TO ZONING IMPLEMENTATION AND PUBLIC BENEFIT
AGREEMENT (the "Amendment") is executed this J!Lth day of August, 2012, by and between:
(I) CITY OF NEWPORT BEACH ("City"), and (2) THE IRVINE COMPANY LLC
("Landowner") (Landowner and City together shall be referred to as "Parties").
RECITALS
1. City and Landowner entered into Development Agreement No. DA 2007-002, entitled
Zoning Implementation and Public Benefit Agreement Between the City of Newport Beach
and The Irvine Company LLC Concerning North Newport Center (Block 600, Fashion
Island, and Portions of Block 500, and San Joaquin Plaza), ("2007 Development
Agreement"), which the City of Newport Beach adopted by Ordinance No. 2007-21 on
December 18,2007. The 2007 Development Agreement provides for the Landowner's
entitlement and transfer rights within the North Newport Center Planned Community (pC-
56).
2. This Amendment is intended to be an amendment pursuant to California Government Code
Section 65868. This Amendment has been considered and approved in the same manner as
the 2007 Development Agreement with public hearings pursuant to California Government
Code Section 65867.
3. The 2006 City of Newport Beach General Plan ("General Plan") established a development
intensity of 450 residential units within the Newport Center Statistical Area Ll sub-areas
designated MU-H3, including Block 500, Block 600, and San Joaquin Plaza. The North
Newport Center Planned Community has been assigned 430 such residential units, which
could be built in any of the sub-areas of the North Newport Center Planned Community
designated MU-H3. As of the Effective Date of this Amendment, fifteen such residential
units within the General Plan have not been vested or assigned to a specific property. In
light of market demand in the North Newport Center Planned Community, the Parties have
decided to assign such residential units to San Joaquin Plaza.
4. As of the Effective Date of this Amendment, 79 unbuilt hotel rooms were assigned by the
General Plan to Block 900 (Anomaly Location 43 in Statistical Area Ll), located outside of
the North Newport Center Planned Community. In light of existing development needs in
Block 900 and the North Newport Center Planned Community, the Parties desire to convert
such 79 unbuilt hotel rooms into 79 residential units. Subsequent to such conversion and
pursuant to the tenms ofthis Amendment, such 79 residential units shall transfer into the
North Newport Center Planned Community and be allocated to San Joaquin Plaza sub-area.
5. Subsequent to the original adoption of the North Newport Center Planned Community in
2007, Block 800 and the portions of Blocks 100 and 400 have been added to the North
Newport Center Planned Community through subsequent amendments. The legal
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descriptions of Newport Center Block 100, Newport Center Block 400, and Newport Center
Block 800 are attached hereto as Exhibit A.
6. In light of the time that has passed since the adoption of the 2007 Development Agreement
and the actions described above, the Parties have decided that portions of the 2007
Development Agreement should be amended to include 94 new residential units in the North
Newport Center Planned Community, which include the 79 hotel units and the 15 residential
units, and the addition of the Block 800 and the portions of Block 100 and 400, which have
been added into the North Newport Center Planned Community.
7. This Amendment is consistent with the City of Newport Beach General Plan Policy LU
6.14.8, which applies to Newport Center and requires the execution of development
agreements for residential projects and mixed-use development projects with a residential
component.
8. The City Council has found, based on appropriate findings as required by the City of
Newport Beach General Plan Policy LU 6.14.3 and the analysis included in the North
Newport Center San Joaquin Plaza TPO Traffic Analysis (May 2012), that the inclusion of
the 94 additional residential units in the San Joaquin Plaza sub-area of the North Newport
Center Planned Community would not result in adverse traffic impacts.
9. The City Council has evaluated the potential environmental impacts of this Amendment and
has determined that any potential impacts have been analyzed pursuant to the Final
Environmental Impact Report for the City of Newport Beach General Plan 2006 Update
(State Clearinghouse No. 2006011119), the North Newport Center Addendum (Addendum
No. I), and the second Addendum (Addendum No.2) to the City of Newport Beach General
Plan 2006 Update Final Program Environmental Impact Report (State Clearinghouse No.
2006011119). There are no circumstances present that would require a new, subsequent or
supplemental environmental impact report for this Amendment, under the provision of the
California Environmental Quality Act.
10. On July 5, 2012, City's Planning Commission held a public hearing on this Amendment,
made findings and determinations with respect to this Amendment, and recommended to the
City Council that the City Council approve this Amendment.
I I. On July 24,2012, the City Council also held a public hearing on this Amendment and
considered the Planning Commission's recommendations and the testimony and information
submitted by City staff, Landowner and members of the public. On August 14,2012,
pursuant to the applicable state law (California Government Code sections 65864-65869.5)
and local law (City of Newport Beach Municipal Code chapter 15.45), the City Council
adopted its Ordinance No. 2012-20 finding this Amendment to be consistent with the City of
Newport Beach General Plan and approving this Amendment.
AGREEMENT
NOW, THEREFORE, City and Landowner agree as follows:
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1. Property. The Parties hereby amend the term "Property" to add to its existing definition
Newport Center Block 800 and the portions of Blocks 100 and 400, which are the parcels of
real property that are described in the legal description attached to this Amendment as
Exhibit A and depicted on the site map attached to this Amendment as Exhibit B, ("Added
Property"). All of the Added Property is owned by the Landowner.
2. Development Regulations. The following Development Regulations (as defined in Section
1.9 of the 2007 Development Agreement) shall apply:
2.1. Newport Center Block 600 and the portions of Block 500, San Joaquin Plaza, and
Fashion Island covered by this Agreement shall remain governed by the Development
Regulations in effect as of the Effective Date of the 2007 Development Agreement, as
set forth in Section 1.9 of the 2007 Development Agreement, with the exception that the
North Newport Center Planned Community Development Plan that the City Council is
adopting pursuant to Ordinance No. 2012-19, shall apply.
2.2. Newport Center Block 800 and the portions of Blocks 100 and 400 covered by this
Agreement shall be governed by the Development Regulations in effect as of the
Effective Date of this Amendment, including without limitation the North Newport
Center Planned Community Development Plan that the City Council is adopting
pursuant to Ordinance No. 2012-19.
3. Landowner's Vested Rights. Section 6.2 of the 2007 Development Agreement, which
regards Landowner's vested rights, is amended to apply to the Property as defined in this
Amendment.
4. Affordable Housing Obligation. The Parties agree that Landowner's compliance with the
amended 2012 Affordable Housing Implementation Plan attached as Exhibit C satisfies any
obligation of Landowner to City under the City of Newport Beach General Plan Housing
Program 2.2.1 with respect to additional residential housing units provided for in this
Amendment and the residential housing units provided in the 2007 Development Agreement.
Should the additional units be developed as for sale units requiring a subdivision map, the
amended 2012 Affordable Honsing Implementation Plan shall be deemed to comply with the
Inclusionary Housing requirements of Section 19.54.040.
5. Description of Certain Project Components. Concurrently with the adoption of this
Amendment, City has approved the potential location of 524 residential units in San Joaquin
Plaza under the Traffic Phasing Ordinance. Therefore, Section 6.3(2) of the 2007
Development Agreement is amended to read in its entirety as follows:
"524 residential units in Newport Center Block 500, Newport Center Block 600, or San
Joaquin Plaza; provided however, that to the extent Landowner desires to develop any of
said residential units in Newport Center Block 500 or 600 it shall be required to comply
with the Traffic Phasing Ordinance relative to potential impacts associated with such
change in location."
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6. Public Benefit Fee. The amount payable by Landowner to City for each of the 94 residential
units added to the North Newport Center Planned Community pursuant to this Amendment
shall be the sum of $63,000 per unit, for a total of $5,922,000. This fee shall be paid for each
additional individual housing unit at the time the building permit for such unit is issued by
the City. For purposes of implementation, the first 430 units applied for by Landowner will
be subject to a public benefit fee in the sum of $31 ,500, as set forth in Section 4.2 of the 2007
Development Agreement. The public benefit fee for the 431st unit and all subsequent units
shall be the sum of $63,000. This fee is in addition to the other fees required by the City for
these units under the Development Regulations. The dollar amount specified in this section
shall not accrue interest if paid when due and shall not be increased or decreased by reason of
any cost ofliving or other inflation/deflation adjustment.
7. Per Unit Public Benefit Fee For Parks. Prior to and as a condition to City's issuance of each
building permit for residential development, Landowner shall pay to City a per unit fee that is
a Public Benefit Fee for Parks in the sum of$26,046.51 for each of the 94 residential units
added to the North Newport Center Planned Community pursuant to this Amendment, for a
total of$2,448,372, to be paid to City by Landowner on or before July I, 2013. This fee is in
addition to the other fees required by the City for these units under the Development
Regulations. City acknowledges that Landowner has advanced an Initial Park Fee in the
amount of $5,600,000, entitling Landowner to a credit against payment of the Per Unit Public
Benefit Fee for Parks for the first 215 residential units to be developed on the Property. In
addition to the foregoing, at the time that Landowner advances the $2,448,372 Public Benefit
Fee for Parks, Landowner shall be entitled to a credit against payment of the Per Unit Public
Benefit Fee for Parks for an additional 94 residential units, for a total credit against payment
of the Per Unit Public Benefit Fee for Parks for the first 309 residential units to be developed
on the Property. Should the additional units be developed as for-sale units requiring a
subdivision map, the amended 2012 Affordable Housing Implementation Plan shall be
deemed to comply with the Inclusionary Housing requirements of Section 19.54.040. The
dollar amount specified in this section shall not accrue interest if paid when due and shall not
be increased or decreased by reason of any cost of living or other inflation/deflation
adjustment. This fee does not replace the fees that the City may charge for parks when and if
the additional units were included in a subdivision map or otherwise converted to
individually saleable housing units, but the City shall grant Landowner a credit against such
parks fee in the amount of the net fee per unit that was previously paid to the City for such
unit.
8. Reimbursement for Bayside Walkway Connection. Landowner shall pay to City up to
$200,000 as a public benefit reimbursement for costs that the City may incur related to plans,
specifications, permits, and/or construction for the Bayside Walkway Connection project.
Payment by Landowner shall be made within 90 days after receipt of written notice from
City that it has awarded a construction contract for the Bayside Walkway Connection project.
The amount of the public benefit reimbursement shall be no more than $200,000 and shall be
for the City's actual costs for plans, specifications, permits, and/or construction, as
documented by the City in its written notice.
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9. Expiration, Completion or Exhaustion of Certain Obligations.
9.1. The Parties agree that the obligations of both Parties under the following sections of the
2007 Development Agreement have fully expired or have been fully exhausted or fully
completed:
9.1.1 . Landowner's payment to City of the Initial Park Fee pursuant to Section 4.1 by a
payment of $5,600,000 to the City by Landowner on March 10, 2009;
9.1.2. Landowner's payment to City of the Initial Public Benefit Fee pursuant to Section
4.2 by a payment of $13,345,000 to the City by Landowner on July 26, 2011 as a
condition of the issuance of the First Building Permit, issued for 650 Newport
Center Drive;
9.1.3 . Section 4.5, "Dedication of Public Rights of Way";
9.1.4. Section 4.6, "Open Space Dedication";
9.1.5. Section 4.8, "City'S Option to Purchase New City Hall Site; Parking Structure";
9.1.6. Section 4.9A, "Retrofit Sprinkler Systems";
9.1.7. Section 4.1 0, "Cooperation of Landowner if City Hall Constructed on Property
North of Library"; and
9.1.8. Section 4.11, "Dedication of Lower Castaways".
Therefore, no remaining obligations remain for either Party to complete under Section
4.5, Section 4.6, Section 4.8, Section 4.9A, Section 4.10, and Section 4.11 of the 2007
Development Agreement.
10. No Conflicting Enactments. Except to the extent City reserves its discretion as expressly set
forth in the 2007 Development Agreement, during the Term of this Amendment City shall
not apply to the Project any ordinance, policy, rule, regulation, or other measure relating to
development of the Project, as contemplated by this Amendment, that is enacted or becomes
effective after the Effective Date to the extent it conflicts with this Amendment. No City
moratorium or other similar limitation relating to the rate, timing, or sequencing of the
development or construction of all or any part of the Project and whether enacted by
initiative or another method, affecting subdivision maps, building permits, occupancy
certificates, or other entitlement to use, shall apply to the Project to the extent such
moratorium or other similar limitation restricts Landowner's vested rights in this Amendment
or otherwise conflicts with the express provisions of this Amendment.
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11. Compliance with Traffic Phasing Ordinance. The following provisions are added with
respect to the Traffic Phasing Ordinance:
11.1. Scope of Traffic Study. The traffic study prepared in conjunction with this
Amendment, entitled "North Newport San Joaquin Plaza TPO Traffic Analysis" and
dated May 2012, covers all development authorized by this Amendment.
11.2. Sufficiency of Traffic Study. City acknowledges that the traffic study for the North
Newport Center Planned Community Development Plan Amendment project satisfies
the provisions of the Traffic Phasing Ordinance. The City shall not require any
additional Traffic Phasing Ordinance traffic studies in conjunction with any
application for approvals or permits necessary to construct development authorized
by this Amendment as long as the application is consistent with the provisions of this
Amendment and the relevant Development Regulations.
12. Effective Date. The Effective Date of this Amendment is September 12,2012, the 31st day
following adoption of this ordinance approving this Amendment by the City Council. This
Amendment does not change the Effective Date of the 2007 Development Agreement.
13. Term. The term of this Amendment ("Term") shall commence on the Effective Date and
shall continue thereafter until the earlier of the following: (i) the date that is twenty (20)
years after the Effective Date; or (ii) the date this Amendment is terminated pursuant to
Sections 12 or 15.1 of the 2007 Development Agreement.
13.1. Section 11 of the 2007 Development Agreement is amended at paragraph two to read
as follows:
"The term of this Agreement ("Term") shall commence on the
Effective Date and shall continue thereafter until the earlier of the
following: (i) the date that is twenty (20) years after the Effective
Date of the Amendment; or (ii) the date this Agreement is
terminated pursuant to Sections 12 or 15.1 of this Agreement."
14. Conflicts. Except as otherwise set forth herein to the contrary, all terms and provisions of the
2007 Development Agreement shall remain unamended and continue in full force and effect.
This Amendment and the 2007 Development Agreement, along with any previous or future
amendments, shall be construed together and shall constitute one agreement. In the event of
any inconsistency between this Amendment and the 2007 Development Agreement, the
provisions of this Amendment shall prevail.
15. Notice ofIntention to Amend. In enacting this Amendment, the City has provided for public
notice and hearing in the manner provided by California Government Code Section 65867.
6
16. Compliance with California Government Code Section 65867.5. California Government
Code Section 65867.5 provides that a development agreement is a legislative act that shall be
approved by ordinance and subject to referendum. A development agreement shall not be
approved unless the legislative body finds that the provisions of the agreement are consistent
with the general plan and any applicable specific plan. These requirements of California
Government Code Section 65867.5 have been satisfied by the City's finding that this
Amendment is consistent with the City's General Plan and the City's approval of this
Amendment by ordinance.
17. Compliance with California Government Code Section 66473.7. The area subject to the
Amendment may include a future subdivision, and the City may, in its sole and absolute
discretion, approve certain tentative maps for such subdivision. Any such subdivision will
comply with all of the provisions of the Subdivision Map Act including, but not limited to,
California Government Code Section 65867.5 in that any tentative maps will be approved by
the City in compliance with California Government Code Section 66473.7.
18. Section Headings. All section headings are inserted for convenience only and shall not affect
construction or interpretation of this Amendment.
19. Incorporation of Exhibits. Exhibits A,.a and ~ are attached to this Amendment and
incorporated by this reference as follows:
EXHIBIT DESCRIPTION DESIGNATION
A Legal Description of Property
B Depiction of the Property
C Updated 2012 Affordable Housing Implementation Plan
20. Authority to Execute. The persons executing this Amendment warrant and represent that
they have the authority to execute this Amendment on behalf of the party for which they are
executing this Amendment. They further warrant and represent that they have the authority
to bind their respective party to the performance of its obligations under this Amendment.
The City Manager or his/her designee has the authority to implement the terms of this
Amendment and execute any documents in furtherance of the terms of this Amendment and
the 2007 Development Agreement so long as they have been reviewed and approved as to
form by the City Attorney.
21. Recordation. This Amendment and any amendment, modification, or cancellation to it shall
be recorded in the Office of the County Recorder of the County of Orange, by the City of
Newport Beach City Clerk in the period required by California Government Code section
65868.5 and City of Newport Beach Municipal Code section 15.45.090.
[SIGNATURE PAGE FOLLOWS]
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SIGNATURE PAGE TO
AMENDMENT TO ZONING IMPLEMENTATION
AND PUBLIC BENEFIT AGREEMENT
"LANDOWNER"
Daniel T. Miller
Senior Vice President
Entitlement & Public Affairs
.B. Rowberry
Vice President
Senior Counsel
"CITY"
CITY OF NEWPORT BEACH
By:-'/~Cl ~
Its: Mayor "Y
r:e6nie Mulvihill ISlZOIIl..
City Attorney
8
S0l925670.2 016709-0475
State of California
County of Orange
On /Jv q ,,5r /r ~tJ before me, ,
_______ ---'ft..-.'-=---...:.c1---'T'----'-'/1--~re:.""'__:T<."---L;:{----"'-''-':,2..'-/,-<-/--,-!--(.--------, personally ?
appeared __ ...:.-:t::::,-'=-_u----'-'r1'---'--f .::o--e."..-.1../ __ 7....:..-.-..:.' _/J?:....:...:.-'t--'-/t-'/--=-e..r::::::1~ ______ _
OL.rl 0(
7
who proved to me on the basis of satisfactory evidence to be the perso~ whose nam~ i{a;e)
subscribed to the within instrument and acknowledged to me that he/sh~xecuted the same
in his/he~authorized capacity(ies), and that by hislheS"signatureJ0 on the instrument
the person(s), or the entity upon behalf of which the person~ acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature _---'-G1-+"'(JJ'U,-'-"'''-~L..L..L~_''2L.''''-""",="",-,,,,",,-_(Seal)
\
9
State of California
County of Orange
On AV9°st.l~.2Cl)' before me,
__ K.'--"-"-l=IV\...=-----"K=I'--''E'.''--tL.:f'-+)_..:....N-'-'o'---.(_u.._~-+-p...:......:::o--=k'--'l:....:I.--=~~----,personally
appeared N.Qhc..~ (.;OJ-Oh:e..r
who proved to me on the basis of satisfactory evidence to be the person~ whose name(s') is/ate
subscribed to the within instrument and acknowledged to me that.h'e/she/tbey executed the same
in l)kS/her/thetr authorized capacity(j.e0, and that by hIs/her/th.efr signature(~on the instrument
the person~, or the entity upon behalf of which the person.(6} acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature --L-A-=~=--,,-' =------,--,1 ¥=iII' +-__ (Seal)
10
G KIMRIEFF
Commission II 1967536
Notary Public· California
Oranga County
My Comm. ExPires Jan 28, 2016
EXHIBIT A:
LEGAL DESCRIPTION OF ADDED PROPERTY
LEGAL DESCRlPTION
Real property in the City ofNel''Port Beach, County of Orange, State of California, described as follows:
Newporl Cenler Block 100:
PARCEL I: APN 442-231-02, 442-231 -03, 442-23 1-04, 442-231-05, 442-231-06, 442-231 -07, 442-231-11
and 442-231-1 4
Parcels 2 through 7 and "B" as shown on a Parcel Map filed in Book 52, Page 37 of Parcel Maps, to£ ther wi til
Parcel "A" as shown on a Parcel Map filed in Book 76, Page 32 of Parcel Maps, both in the Office of the County
Recorder of said Orange County.
Ne.wporl Center Block 400:
PARCEL I: APN 442-082-05
Parcel I as shown on a Parcel Map flIed in Book 61 , Page lO af Parcel Maps, in the Office of the County
Recorder of said Orange County.
PARCEL 2: APN 442-082-04
Parcel 2 as shown on a Parcel Map filed in Book 37, Page 23 of Parcel Maps, in the Office of the County
Recorder of said Orange County.
PARCEL 3: APN 442-082-09
Parcel "A" as shown on a Parcel Map filed in Book 91, Page 19 of Parcel Maps, in the Office of the CounlJ
Recorder of said Orange County.
Newporl Center Block 500:
PARCEL I: APN 442-014-23
Parcel 2 of Parcel Map No. 88-163 as shown on a map tiled in Book 253, Pages 34 and 35 of Parcel Maps, in the
Office of the County Recorder of said Orange County.
Exhibit A:
Newport Cmter Block 800:
PARCEL 1: APN 442-262-03, 442-262-05, 442-262-06, 442-262-07, 442-~62-08, 442-262-09 and 442-262-10.
Parcell as sho,,,,, on a Parcel Map filed in Book 136, Pages 22 and 23 of Parcel Maps, together with Lots 1,2,3,
4, and private streets Colony PI= and Santa Maria Road of Tract No. 15178 as shown on a map filed in Book
737, Pages 45 through 47 inclusive, of Miscellaneous Maps, both in the Office of the County Recorder of said
Orange County.
Added Property
Exhibit B
Depiction of Added Property
C>
F •• hion 'sl:rrtd flo.IOft.' C~nler
SANT~ ROSA OR
EXHIBITC
NORTH NEWPORT CENTER PLANNED COMMUNITY
AFFORDABLE HOUSING IMPLEMENTATION PLAN
NORTH NEWPORT CENTER
PLANNED COMMUNITY
AFFORDABLE HOUSING
IMPLEMENTATION PLAN
Prepared For:
The City of Newport Beach
June 2012
Contents
1. Introduction .................................................................................................................................. 1
Background ................................................................................................................................... 1
II. Affordable Housing Plan .............................................................................................................. 3
Proposed Plan ............................................................................................................................... 3
Number of Affordable UnitslIncome Levels ................................................................................ 5
Implementation ............................................................................................................................. 5
Conclusion .................................................................................................................................... 5
III. Consistency with Housing Element. ............................................................................................. 6
IV. Amendments to the AHIP ............................................................................................................. 7
V. Auth ority ....................................................................................................................................... 7
Figures
Exhibit 1 -North Newport Center Planned Community ........................................................................ 2
Exhibit 2 -The Bays Apartment Complex Locations ............................................................................ 4
North Newport Center Planned Community
Affordable Housing Implementation Plan
I. Introduction
The North Newport Center Planned Community (planned Community) approval by the City of
Newport Beach includes a Planned Community Development Plan that implements the goals and
policies of the City'S General Plan. The Planned Community, as shown on Exhibit 1, consists of
seven sub-areas within North Newport Center, a regional center comprised of major retail,
professional office, entertainment, recreation, hotel, and residential development.
Block 500, Block 600, and San Joaquin Plaza are designated in the General Plan as MU-H3, a
designation that allows for a mixed-use area combining commercial, office, entertainment, and
residential uses. The Planned Commwtity Development Plan for North Newport Center allows
construction of 524 residential units in these blocks, and affordable housing units must be provided
in accordance with the City Housing Element. This Affordable Housing Implementation Plan (AHIP)
outlines how the required affordable housing will be provided.
Background
The City's Housing Element includes a goal that 15% of all new housing units in the City be
affordable to very low, low, and moderate income households. The Housing Element identifies
moderate income households as those with annual incomes between 80% and 120% of the county
median household income. Low income households are those with annual incomes between 51 % and
80% of the county median household income. Very low income households are those with annual
incomes of 50% or less of the County median household income. Projects with more than 50 units
are required to prepare an AHIP that specifies how the development will meet the City's affordable
housing goal.
The Southern California Association of Governments (SCAG) prepares the state-mandated Regional
Housing Needs Assessment (RHNA). The RHNA quantifies the need for housing within each
jurisdiction during specified planning periods. The City's General Plan Housing Element must
include its "fair share" regional housing needs allocation for all income groups which must be
updated periodically. The most recently published SCAG RHNA identifies the City allocation as
follows:
• Total allocation between 111106 and 6/30/14 -1,769
• Very low income allocation -22% (389 units)
• Low income allocation -18% (319 units)
• Moderate income allocation -20% (359 units)
North Newport Center Planned Community
Affordable Housing Implementation Plan
o North Newport Center Planned
Community
o
F •• tulH1 I.'nnd ftegloMI Cllmtfllt
Exhibit 1 -North Newport Center Planned Community
North Newport Center Planned Community
Affordable Housing Implementation Plan
[j]
2
II. Affordable Housing Plan
Proposed Plan
The City's General Plan Housing Element allows for sale or for rent options in order to meet the
obligation for affordable housing units. In addition, affordable housing may be provided off-site,
with City approval. Consistent with these Housing Element provisions, this Affordable Housing
Implementation Plan includes the following plan. The location of the site is included on Exhibit 2.
A. Covenants on Existing Units
The Irvine Company owns The Bays, an apartment complex consisting of three buildings known as
Baywood, Bayview, and Bayport, which is shown on Exhibit 2. The total number of units in The
Bays is 556. Forty-six units in Baywood are restricted as low-income units through 20 II.
The Irvine Company will restrict tenant incomes and rental costs for housing units located in The
Bays complex for a period of 30 years with a recorded document. The number of restricted units will
be sufficient to provide the number of affordable units described later in this AHIP, depending on the
income level to be served. The Irvine Company will identity which apartments are proposed to meet
the affordable housing obligation, and will not use units that are under any other affordable housing
covenant at the time they are proposed to meet the obligation for North Newport Center. The City
will inspect the apartments designated to meet the affordable housing requirement to ensure
compliance with relevant codes, proper maintenance, and adequate common areas. The Irvine
Company will agree to make improvements, if necessary, to ensure viable housing for the 30 year
period.
The units must be rented to households qualifying as very low, low, or moderate income households.
The annualized rents chargeable for occupancy of the Affordable Units shall not exceed thirty
percent (30%) of the Very Low, Low or Moderate Income limits.
North Newport Center Planned Community
Affordable Housing Implementation Plan
3
, , .-.,!'I.\
WI E
"
,-..
I I '-'
"
The Bays Apartment Complex
Exhibit 2 -The Bays Apartment Complex Locations
North Newport Center Planned Community
Affordable Housing Implementation Plan
HarborVlew
4
The restnctIOn on these units -for example, tenant selection procedures, monitoring -will be
included in an affordable housing agreement, which shall be submitted for review and approval by
the City Attorney and recorded against the property(ies).
B. Concentration of Units
Affordable units shall not be concentrated in anyone building in The Bays.
Number of Affordable Units/lncome Levels
The requirement for affordable housing shall be based on income categories. Tbe Irvine Company
will provide very low, low, or moderate income housing, or a combination of income categories,
using the percentages shown in the table below.
Income Category Percentage Required Total Amount
Very Low 10% 52 units
Low 15% 79 units
Moderate 20% 105 units
Implementation
The affordable housing units required under this AHIP will be provided incrementally. The
affordable units shall be phased as follows:
• Certificate of use and occupancy for 100th market rate unit / one-third of required units
• Certificate of use and occupancy for 200th market rate unit / one-third of required units
• Certificate of use and occupancy for 300th market rate unit / one-third of required units
Affordable housing agreements shall be executed and recorded at each pbase identified above for
designated affordable units in The Bays apartment complex prior to the point where a certificate of
use and occupancy is issued for the related market rate units.
Conclusion
Implementation of this AHIP will result in the availability of affordable housing units as identified
above within the City of Newport Beach in accordance with tbe City'S Housing Element.
North Newport Center Planned Community
Affordable Housing Implementation Plan
5
III. Consistency with Housing Element
The City of Newport Beach adopted a General Plan in 2006. A Housing Element was included in the
General Plan in accordance with State law. The Housing Element was updated in 2011. The Housing
Element identifies goals and programs for the provision of affordable housing in the City. The AHIP
is intended to meet the specific goals of the Housing Element as follows:
PolicyH2.1
Program
2.1.2
Encourage preservation of existing and provision of new housing affordable to
extremely low, very low, low and moderate income households.
Take all feasible actions, through use of development agreements, expedited
development review and expedited processing of grading, building and other
development permits, to ensure expedient constmction and occupancy for projects
approved with low and moderate income housing requirements.
The AHIP supports the City'S requirement for the provision of affordable housing for all new
development with more than 50 residential units. The Irvine Company has prepared a Development
Agreement in accordance with this Policy/Program.
Policy H2.2 Encourage the housing development industry to respond to housing needs of the
community and to the demand for housing as perceived by the industlY, with the
intent of achieving the Regional Housing Needs Assessment construction goals within
six years.
Program
2.2.1
Program
2.2.6
Require a proportion of affordable housing in new residential developments or levy
an in-lieu fee. The City's goal over the five-year planning period is for an average of
15 percent of all new housing units to be affordable to very low, low and moderate-
income households. The City shall either (a) require the payment of an in-lieu fee, or
(b) require the preparation of an Affordable Housing Implementation Plan (AHIP)
that specifies how the development will meet the City's affordable housing goal,
depending On the following criteria for project size:
1. Projects of 50 or fewer units shall have the option of preparing an AHIP or paying
the in-lieu fee.
2. Projects where more than 50 units are proposed shall be required to prepare an
AHIP.
Implementation of this program will occur in conjunction with City approval of any
residential Tentative Tract Maps. To insure compliance with the 15 percent
affordability requirements, the City will include conditions in the approval of
Tentative Tract Maps to require on-going monitoring of those projects.
All required affordable units shall have restrictions to maintain their affordability for
a minimum of 30 years.
As described in Section II, the affordable housing provided per the AHIP will meet the Housing
Element requirement for the total affordable units required. The units will be deed restricted to
remain affordable for a period of 30 years. In addition, the developer will provide periodic repOlis in
North Newport Center Planned Community
Affordable Housing Implementation Plan
6
the form required by the City. The provision of the affordable housing units will assist the City in
meeting the RHN A construction goals.
In conclusion, the AHIP is consistent with the relevant goals and programs in the City's 20 II
General Plan Housing Element.
IV. Amendments to the AHIP
This AHIP may be amended with the approval of the City Council. No modification of the General
Plan requirement for affordable units is allowed, unless the requirement is reduced through an
amendment to the General Plan prior to implementation of development.
V. Authority
The AHIP has been adopted by the City of Newport Beach per Resolution No. 2012-65 on the 24th
day of July, 2012.
North Newport Center Planned Community
Affordable Housing Implementation Plan
7
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani L Brown, City Clerk of the City of Newport Beach, California, do hereby certify
that the whole number of members of the City Council is seven; that the foregoing ordinance, being
Ordinance No. 2012-20 was duly and regu larly introduced on the 24th day of July, 2012, and ado~ted by
the City Council of said City at a regular meeting of said Council , duly and regularly held on the 14' day of
August, 2012, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Hill, Rosansky, Curry, Selich, Henn, Daigle, Mayor Gardner
Noes: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official
seal of said City this 15th day of August, 2012.
City Clerk
City of Newport Beach, California
(Seal)
CERTIFICATE OF PUBLICATION
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, LEILANI L BROWN, City Clerk of the City of Newport Beach, California, do hereby certify that
Ordinance No. 2012-20 has been duly and regularly published accord ing to law and the order of the City
Council of said City and that same was so published in The Daify Pi/at, a daily newspaper of general
circulation on the following dates:
2012.
Introduced Ordinance:
Adopted Ord inance:
August 1,2012
August 18, 2012
In witness whereof, I have hereunto subscribed my name this ~Lj-f'1 day of !tw»u.sr
City Clerk
City of Newport Beach, California
(Seal)
PROOF OF
PUBLICATION
STATE OF CALIFORNIA)
) 55.
COUNTY OF ORANGE )
I am a citizen of the United States and a
resident of the County of Los Angeles; I
am over the age of eighteen years, and
not a party to or interested in the notice
published. I am a principal clerk of the
NEWPORT BEACH/COSTA MESA
DAILY PILOT, which was adjudged a
newspaper of general circulation on
September 29, 1961, case A6214, and
June 11 , 1963, case A24831, for the
City of Costa Mesa, County of Orange,
and the State of California. Attached to
this Affidavit is a true and complete copy
as was printed and published on the
following date(s):
Wednesday, August 1, 2012
I certify (or declare) under penalty of
perjury that the foregoing is true and
correct.
Executed on September 19, 2012
at Los Angeles, California
Signature
CITY OF NEWPORT BEACH
PUBLIC NOTICE
ORDINANCE SUMMARY
NOTICE IS HEREBY GIVEN !hel on July 24, 2012, the City Council of the City of NewpOf1 Beach, CaUfomla.
introduced an Ordinance entitled: .
ORDINANCE NO. 2012·20
AN ORDINANCE OF THE CfTY COUNCIL OF THE CITY OF NEWPORT BEACH ADOPTING AN AMENDMENT
TO DEVELOPMENT AGREEMENT NO. DA2007-002.
ThellVlne Company has agreed to provide public benefits 8S consideration for the DevelopmentAgreement
as stated In the Ordinance. The proposed Ordinance would also provide during the term of the Amendment,
and subject to any approvals required under the development regulations applicable 10 !he Property as spedfied
in the Amendment, The Irvine Company would have a vested right to develop the following entiUements on the
Property:
DEVELOPMENT LIMITS (A)
undU .. FashJon 'Block Block Block Block \ Block Sen Total
Island 100 .. , 500 60. BO. Joaquin
PI~
R.glonal 1,619,525 0 0 0 , 0 , 1,819,525
Comman::l.t ... 11. sq. ft .
MoYIe 1,700 Mats 0 0 0 , o . , 1,700 .. ats
Theat.r {27,500 (27,500 Iq.
Iq. ttl II.J
Hot.1 (SJ , 0 0 , 0 , '95
Rtlldentlal 0 0 0 0 , 0 , '69
om,. 0 -O-Iq. 91,727 599,659 1,3.40,609 286,166 95,550 2,413,711
Commerlcal II. sq. fl sq. fl sq.ft. (O) sq. ft. sq.tt.
(eJ (OJ (OJ
A. Squwe Ioottge ~1fId n flblt 2 may not raft~ cwrent dllYaIopmenllmb b.a.1MI of the tr.Nr.r ~ de'IIIIDpn\IIf1 rIghlIo ptOVI$iOn
dtscnbed In Sections tl.C and MC herein. Transfers may result In lnaus.ec:l or decreased deveIopmenllimlls, so long .. tnt Iranafllrs
art conailltnl with tha Gener.l PI.n and do not 'e$uI\ In gra.tar Inltniity ltI&n allowed in \he Newport C&nllll' 5latfsticlll area.A transfer
of development rigl!\:s must be "pPI"'DV8d by the City Cooncil.nd I, cecordtd on the City', Tracking Development Rlgh1t Iabltl rot NoM
Nawpon C.nla, PlaMed Communlty.
B .. Ho!aI rooms ... permitted in Flthion "'and 1hmugh the translarof development rights.
C. The fTIaIdmum d6'Veloprntnt IrW Block 100 may not txattd 121,114 &qlUl" fill. TrlWltftrs of devtlopmtnt rIghIs $hall be pem»tttd,
pt"O\'Ided the maxmOOl deYIIIopmtnllimilof 121.114 ~_1eeI1i not .lCHdtd. TransferahIMI cesulted In no ra!Tl8lnklg InIaNityIn
Block 100.
D. Per CiIy COunc:il action on 11/8111 Y!II rasolution 2011-102, Iht maximum permitted o!lio!ll<:ornmereilll developmen! lor Block 500 is
5119,55\1 fq. 11., Block 600 111,3040.609 sq. ft. and rot Sin Joaquin PIIIZII I. 85.550 sq. ft.
This Ordinance was introduced by the City Council of the City of NeWport Beach, California, at a special meeting
thereof on the 24th day of July, 2012, by the following vote:
AYES: HII, Rosansky, Cuny, Selich, Henn, Daigle, Mayor Gardner
NOES: None
Second reading of Ordinance No. 2012-19 will occur at the August 14, 2012 City Council meeting. If adopted
on August 14, 2012, the Ordinance shall become final and effectIve thirty (30) days aner adop~on; however, the
Ordinance will nol go into effect until the City Council approves ()( adopts an of the following: (1) the amendment
10 the NOfth Newport Center Planned Community Affordable HousIng tmplementatlon Plan; (2) the amendment
to Development Agreement No. DA2007-OO2, entitled Amendment to Zoning Implementation antj Public Benefit
Agreement Between City of Nowprxt Beach and the Irvine Company LLC ConC1Jm/ng Addtrion of Properties and
Residential Units to Zoning Implementation and Public Benefit Agreement (PortIons of Newport Cenler Blocks
100, 400 entj 800 and San Joaquin Plaza); and (3) Transfer of Development IntensIty No. T02012-OO2. : (1) the
amendment to the North Newport Center Planned Community Affordable Housing Implementation Plan; (2) Planned
Community Development ~an Amendment No. PD2012-00~.; and (3) Transfer of Intensity No. T02012-OO2.
Dated thiS 25th day of July, 2012.
:;0 1,,,. J j 'I" \J 'TJ . '-J -, ;I.J. J JJCb /,1. ..,1 '0·' JJ!.JJ
8t =6 WV III d3S llDl
~~~~~w,~~ ____ __
Leilani I. Brown, City Clerk
City of Newport Beach
PROOF OF
PUBLICATION
STATE OF CALIFORNIA)
) 55.
COUNTY OF ORANGE )
I am a citizen of the United States and a
resident of the County of Los Angeles; I
am over the age of eighteen years, and
not a party to or interested in the notice
published. I am a principal clerk of the
NEWPORT BEACH/COSTA MESA
DAILY PILOT, which was adjudged a
f I ,..i ......... , 01 ....... ;,........ -'n nevJspaper 01 genera. vll ..... UICHIUII VI
September 29, 1961 , case A6214, and
June 11, 1963, case A24831, for the
City of Costa Mesa, County of Orange,
and the State of Califomia. Attached to
this Affidavit is a true and complete copy
as was printed and published on the
following date(s):
Saturday, August 18, 2012
I certify (or declare) under penalty of
perjury that the foregoing is true and
correct.
Executed on August 22, 2012
at Los Angeles, California
Signature
CITY OF NEWPORT BEACH
PUBLIC NOTICE
ORDINANCE SUMMARY
NOTICE IS HEREBY GIVEN that on August 14, 2012, the City Council Qf the City of Newport Beach,
Califomia. adopted an Ordinance entitled:
ORDINANCE NO. 2012·20
AN ORDINANCE OFTHE CITY COUNCIL OFTHE CITY OF NEWPORT BEACH ADOPTING AN
AMENDMENT TO DEVELOPMENT AGREEMENT NO. DA2007-002.
The Irvine Company has agreed to provide public benefits as consideration for the Development
Agreement as stated In the Ordinance. The Ordinance will also provide during the term of the
Amendment, and subject to any approvals required under the development regulations applicable
to the Property as specified in the Amendment, The Irvine Company would have a vested right to
develop the following entitlements on the Property:
DEVELOPMENT LIMITS (A)
S'" Fashion Block Block Block , Block Block Joaquin
Land Use Island 100 400. 500 600 600 Plaza Total
Regional l'~~~'f1~5 0 0 0 0 0 0 1,619.525sq.f1. Commerclll.l
Movie ~~~~I 0 0 0 ci 0 0 (2Y.:o~~~.) Theater
Hotel (8) 0 0 0 295 0 0 295
Reliidentlal 0 0 0 0 0 '245 524 769
8~::;~erClal 0 -R~(~~' 91,727 ;~1\~r& 1~~R:~gr 286,166 95[.~D)sq. 95t?5(~r· sq. fl.
A. Square footage indicated In Table 2 may not reflect current development limits because of the .
transfer of development rIghts provision described in Sections II.C and lV.C herein. Transfers
may result in Increased or decreased development limits, so long as the transfers are consistent
with the General Plan and do not result in greater intenSity than allowed in the Newport Center
statistical area. A transfer of development rights must be approved by the City Council and is
recorded on the City's Tracking Development Rights table for North Newport Center Planned
Community.
B. Hotel rooms are permitted In Fashion Island through the transfer of development rights.
C. The maximum development for Block 100 may not exceed 121,114 square feet. Transfers of
development rights shall be permitted, provided the maximum development limit of 121,114
square feet Is not exceeded. Transfers have resulted In no remaining intenSity In Block 100.
D. Per City Council action on 11/8/11 vIa resolutlon 2011-102, the maximum permitted officel
commercial development for Block 500 is 599,659 sq. ft., Block 600 is 1,340,609 sq. ft. and for
San Joaquin Plaza is 95,550 sq. ft.
This Ordinance was adopted by the City Council of the City of Newport Bea'ch, Califomia, at a
regular meeting thereof on the 14th day of August, 2012, by the following vote:
AYES: Hill, Rosansky, Curry, Selich, Henn. Daigle, Mayor Gardner
NOES: None
Ordinance No. 2012-20 shall become final and effective thirty (30) days after adoptIon; however, the
Ordinance will not go into effect until the City Council approves or adopts all of the following: (1) the amendment to the North Newport Center Planned Community Affordable Housing Implementation
Plan; (2) the amendment to Development Agreement No. DA2007-002, entitled Amendment to
Zoning Implementation and Public Benefit Agreement Between City of Newport Beach and the Irvine
Company LLC Concerning Addition of Properties Bnd Residential Units to Zoning implementation
and Public Benefit Agreement (Portions of Newport Center Blocks 100, 400 and 800 and San
Joaquin Plaza); and (3) Transfer of Development Intensity No. TD2012·002. : (1) the amendment
to the North Newport Center Planned Community Affordable HousIng Implementation Plan; (2)
Planned Community Development Plan Amendment No. PD2012-001; and (3) Transfer of Intensity
No. TD2012-002.
Dated this 15th day of August, 2012.
lsI Leilani I. Brown, City Clerk'
City of Newport Beach
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