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HomeMy WebLinkAbout05 - Approving an Amendment to the Housing Opportunity (HO) Overlay Zoning DistrictsQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report June 24, 2025 Agenda Item No. 5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Benjamin M. Zdeba, AICP, Planning Manager - 949-644-3253, bzdeba@newportbeachca.gov TITLE: Ordinance No. 2025-10: Approving an Amendment to the Housing Opportunity (HO) Overlay Zoning Districts ABSTRACT: For the City Council's consideration is the second reading and adoption of an ordinance that would amend the Housing Opportunity (HO) Overlay Zoning District in Title 20 (Planning and Zoning) of the Newport Beach Municipal Code. This amendment would allocate a certain number of units to City of Newport Beach -controlled properties within the HO-1 (Airport Environs Area) Subarea and within the HO-4 (Newport Center) Subarea and would revise the height limits for several properties within the HO-4 Subarea. RECOMMENDATIONS: a) Find that all potential environmental effects for the amendment have been adequately addressed in the previously certified Final Program Environmental Impact Report identified by State Clearinghouse Number 2023060699, and the City Council of the City of Newport Beach intends to use said document for the approval of the amendment; and b) Conduct second reading and adopt Ordinance No. 2025-10, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts) in Title 20 (Planning and Zoning) of the Newport Beach Municipal Code Related to Implementation of the Housing Element (PA2024-0205). DISCUSSION: On June 10, 2025, the City Council conducted a noticed public hearing to consider amendments to the Housing Opportunity (HO) Overlay Zoning District and pending Coastal Zoning District that would: 1) Allocate 179 dwelling units from the 2,577-unit development limit identified for the HO-1 (Airport Environs Area) Subarea to City -controlled property at 1201 Dove Street; 5-1 Ordinance No. 2025-10: Approving an Amendment to the Housing Opportunity (HO) Overlay Zoning Districts June 24, 2025 Page 2 2) Allocate 152 dwelling units from the 2,439-unit development limit identified for the HO-4 (Newport Center Area) Subarea to City -controlled property at 868 and 870 Santa Barbara Drive; and 3) Revise the allowable maximum height limit for various properties within the HO-4 Subarea. After taking public testimony and discussing the proposed amendment, the City Council unanimously adopted Resolution No. 2025-32, to override the Orange County Airport Land Use Commission's determination of inconsistency with the Airport Environs Land Use Plan and Resolution No. 2025-31, to authorize the submittal of the related Local Coastal Program Amendment to the California Coastal Commission. The City Council also introduced Ordinance No. 2025-10 and passed it to a second reading. As part of the City Council's action, Housing Element Site ID Nos. 146 and 147 were removed from the list of properties within the HO-4 Subarea receiving special height limitations for housing projects. Ordinance No. 2025-10 (Attachment A) will amend the HO Overlay Zoning Districts as noted above. If the ordinance is adopted, it will take effect 30 days after adoption. FISCAL IMPACT: There is no fiscal impact related to this item. ENVIRONMENTAL REVIEW: All potential environmental effects for the amendment have been adequately addressed in the previously certified Final Program Environmental Impact Report (EIR) identified by State Clearinghouse Number (SCH No.) 2023060699, and the City of Newport Beach intends to use said document for the approval of the amendments. Copies of the previously prepared environmental document are available for public review and inspection at the Planning Division or at the City of Newport Beach website here: Housing Implementation Program EIR (PA2022-0245). Furthermore, a consistency analysis was prepared by Kimley-Horn & Associates, Inc. on January 9, 2025. It was determined that the Amendment is consistent with the Housing Element and within the scope of the EIR. Under State CEQA Guidelines Sections 15162 and 15164, no additional environmental review is required. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Ordinance No. 2025-10 5-2 Attachment A Ordinance No. 2025-10 5-3 ORDINANCE NO. 2025-10 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING SECTION 20.28.050 (HOUSING OPPORTUNITY (HO) OVERLAY ZONING DISTRICTS) IN TITLE 20 (PLANNING AND ZONING) OF THE NEWPORT BEACH MUNICIPAL CODE RELATED TO IMPLEMENTATION OF THE HOUSING ELEMENT (PA2024-0205) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, California Government Code Section 65580 et seq. ("State Housing Element Law") requires each city and county adopt a housing element that identifies and analyzes existing and projected housing needs within their jurisdiction and prepare goals, policies, and programs, and quantified objectives to further the development, improvement, and preservation of housing; WHEREAS, the City Council adopted Resolution Nos. 2024-52 and 2024-58 on July 23, 2024, authorizing submittal of the Local Coastal Program Amendment ("LCPA") to the California Coastal Commission ("CCC") amending the City's Coastal Land Use Plan and Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code ("NBMC") to establish the Housing Opportunity (HO) Overlay Coastal Zoning Districts and their corresponding development standards applicable to properties located within the Coastal Zone and initiating a narrowly focused amendment to the 6tn Cycle Housing Element ("Housing Element") to remove reference to Charter Section 423 to implement the Housing Element; WHEREAS, the City filed the LCPA application with the CCC on August 16, 2024, and received a letter from CCC staff on January 7, 2025, confirming the City's application is complete and pending a hearing date; WHEREAS, the City Council adopted Ordinance Nos. 2024-16 and 2024-17 on September 24, 2024, adding Section 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts) and Section 20.48.185 (Multi -Unit Objective Design Standards) to the NBMC establishing Housing Opportunity Overlay Zoning Districts and creating multi -unit objective design standards respectively; 5-4 Ordinance No. 2025- Page 2 of 5 WHEREAS, the new sections implement Policy Actions 1A through 1G and 3A of the Housing Element; WHEREAS, Section 20.28.050 of the NBMC allows for new housing opportunities within five focus areas consisting of the Airport Area Environs Area (HO- 1), West Newport Mesa Area (HO-2), Dover-Westcliff Area (HO-3), Newport Center Area (HO-4), and Coyote Canyon Area (HO-5) ("Focus Areas") that correspond with the Focus Areas in the Housing Element to ensure that the City accommodates its Housing Element Regional Housing Needs Assessment allocation; WHEREAS, properties identified within the Focus Areas are eligible for specified development standards conducive to residential development at the prescribed average density of 20 to 60 dwelling units per acre that include, but are not limited, to minimum lot area, setbacks, height, open space, landscaping, and parking; WHEREAS, the City Council adopted Resolution No. 2024-85 on November 19, 2024, initiating amendments to Section 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts) and the pending amendments to Section 21.28.070 of the NBMC to adjust certain development standards, including but not limited to, building height limits; WHEREAS, an amendment to Table 2-16 in Section 20.28.050 and pending Table 21.28-1 in Section 21.28.070 of the NBMC are necessary to adjust the height limitations of certain properties within the Newport Center Area (HO-4) to accommodate potential residential development with the intended prescribed density range, and to identify a certain number of units being allocated from the respective development limits for a selected group of City -owned properties located within Airport Area Environs Area (HO-1) and Newport Center Area (HO-4) ("Amendment"), WHEREAS, a public hearing was held by the Planning Commission on January 23, 2025, in the Council Chambers at 100 Civic Center Drive, Newport Beach, California to consider the Amendment. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and Chapters 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing; 5-5 Ordinance No. 2025- Page 3 of 5 WHEREAS, at the conclusion of the public hearing, the Planning Commission adopted Resolution No. PC2025-004 by a unanimous vote of (5 ayes and 1 recusal) recommending the City Council approve the Amendment including the addition of Site ID Nos. 146 and 147 with a maximum height limit of 50 feet for flat roofs and 55 feet for sloped roofs and Site ID No. 141 with a maximum height limit of 48 feet; WHEREAS, California Public Utilities Code ("CPUC") Section 21676(b) requires the City to refer the Amendment to the Orange County Airport Land Use Commission ("ALUC") to review for consistency with the 2008 John Wayne Airport Environs Land Use Plan ("AELUP"); WHEREAS, on February 20, 2025, the ALUC conducted a public hearing on the Amendment and continued the hearing to its March 20, 2025, meeting by a unanimous vote (5 ayes, 0 nays); WHEREAS, at the continued hearing on March 20, 2025, the ALUC determined the Amendment is inconsistent with the AELUP (5 ayes, 1 nay); WHEREAS, the City Council unanimously adopted Resolution No. 2025-13 on April 15, 2025, pursuant to Sections 21670 and 21676 of the CPUC, notifying the ALUC and State Department of Transportation Aeronautics Program of the City's intent to override ALUC's inconsistency finding; and WHEREAS, a public hearing was held on June 10, 2025, by the City Council in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California to consider the Amendment. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act, CPUC Section 21676(b), and Chapters 20.62 (Public Hearings) and 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows.. Section 1: The City Council finds the Amendment is a legislative act. Neither Title 20 nor California Government Code Section 65000 et seq., sets forth any required findings for either approval or denial of the Amendment. 5-6 Ordinance No. 2025- Page 4 of 5 Section 2: Notwithstanding the above, the City Council does hereby make the findings set forth in Exhibit "A," and the amendment to Title 20 (Planning and Zoning) of the NBMC, as set forth in Exhibit "B," both of which are attached hereto and incorporated herein by reference. Section 3: The City Council finds all potential environmental effects for the Amendment have been adequately addressed in the previously certified Final Program Environmental Impact Report (PEIR) (SCH No. 2023060699) which was done in compliance with the California Environmental Quality Act ("CEQA") as set forth in the Public Resources Code Section 21000 et seq., Title 14, Division 6, Chapter 3 of the California Code of Regulations ("CEQA Guidelines"), and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act) related to the implementation of the 6th Cycle Housing Element Implementation involving amendments to the General Plan, Coastal Land Use Plan, Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the NBMC. Furthermore, the Amendment does not constitute substantial changes to the circumstances under which the project shall be undertaken that would result in new or more severe environmental impacts than previously addressed in the PEIR, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified as detailed in the CEQA Consistency Memorandum, which is attached hereto as Exhibit "C" and incorporated by reference. Therefore, in accordance with Section 21166 of the California Public Resources Code and Section 15162 of the CEQA Guidelines, no additional environmental review is required to adopt the Amendment. Section 4: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 5: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 6: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. 5-7 Ordinance No. 2025- Page 5 of 5 Section 7: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty (30) calendar days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 10th day of June, 2025, and adopted on the 24th day of June, 2025, by the following vote, to -wit: AYES: NAYS: ABSENT: Joe Stapleton, Mayor ATTEST: Leilani I. Brown, City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE 4 C'l Clye-- Aar6n t. Harp, City Attorney Attachment(s): Exhibit "A" — Findings for Approval Exhibit "B" — Amendment to Chapter 20.28 (Overlay Zoning Districts (MHP, PM, B, H) of Title 20 (Planning And Zoning) Exhibit "C" — CEQA Consistency Memorandum FMs EXHIBIT "A" Findings for Approval General Finding: An amendment to Title 20 (Planning and Zoning) of the NBMC is a legislative act. Neither Title 20 itself nor California Government Code Section 65000 et seq., sets forth any required findings for approval of such amendments. Findings and Facts in Support of Finding: 1. Title 20 (Planning and Zoning) of the NBMC serves as the City's Zoning Code, which is a tool to ensure consistency with and implementation of the General Plan. It is necessary to amend and update Title 20 from time to time to ensure the policies set forth by the General Plan are implemented effectively. 2. The Amendment specific to Title 20 (Planning and Zoning) of the NBMC, which is attached hereto as Exhibit "B" and incorporated herein by reference will further enable the implementation of the Housing Element's key objective, which is to accommodate the development of housing to fulfill City's obligation to meet regional housing demands. Specifically, the Amendment will allow increased height limitations for certain properties within HO-4 to accommodate residential developments within the intended prescribed density range while furthering the longstanding vision for development in Newport Center, as noted in General Plan Land Use Element Policy 6.14.4 (Development Scale). Increased heights will accommodate density on smaller sites and/or fewer sites and will increase walkability for residents and activate the urban core of Newport Center to create a true mixed -use community while decreasing development footprints and encouraging increased open space and views through developments. 3. The Amendment will also allocate a portion of the development limits in HO-1 and HO-4 to City -owned sites where there is a potential for redevelopment with housing projects within the Housing Element's planning period. 5-9 EXHIBIT "B" Amendment to Chapter 20.28 (Overlay Zoning Districts (MHP, PM, B, H) of Title 20 (Planning And Zoning) Table 2-16 of Section 20.28.50 (Housing Opportunity (HO) Overlay Zoning Districts) of Chapter 20.28 of the Newport Beach Municipal Code would be amended as follows, currently shown in redline -strikeout format for ease of reference only: TABLE 2-16 DEVELOPMENT STANDARDS FOR HOUSING OPPORTUNITY OVERLAY ZONES Development Feature Housing Opportunity Subareas HO-1 HO-2 HO-3 HO-4 HO-5 HO-6 Development Limit (units)"' 2,577 1,107 521 2,439 1,530 N/A Lot Size/Dimension Per Base Zone Lot area required per unit (sq. ft. )12, Minimum: 2,178 (20 du/ac) Maximum: 871 (50 du/ac) Minimum: 2,178 (20 du/ac) Maximum: 871 (50 du/ac) Minimum: 2,178 (20 du/ac) Maximum: 726 (60 du/ac)"0) All Standards Per Base Zone Setbacks Front 0 ft.(3) 10 ft.(3) 10 ft.(31(4) 0(3) 10 ft.(3) Rear 0 20 ft. 20 ft. 0 20 ft. Side 0(4j Street Side 0(3) 10 ft.(3) 10 ft.(3) 0 ft.(3) 10 ft.(3) Height Per Base Zone unless otherwise identified on the map 65 ft. 65 ft.(6) Per Base Zone unless otherwise 65 ft. Identified on the map(') Building Separation 10 ft. Floor Area Ratio (FAR) No restriction(') Common Open Space(9j Minimum 75 square feet/dwelling unit. (The minimum dimension (length and width) shall be 15 feet.) Private Open Space(91 5% of the gross floor area for each unit. (The minimum dimension (length and width) shall be 6 feet.) Fencing See Section 20.30.040 (Fences, Hedges, Walls, and Retaining Walls). Landscaping See Chapter 20.36 (Landscaping Standards). 5-10 TABLE 2-16 DEVELOPMENT STANDARDS FOR HOUSING OPPORTUNITY OVERLAY ZONES Development Feature Housing Opportunity Subareas HO-1 HO-2 I HO-3 I HO-4 HO-5 HO-6 Lighting See Section 20.30.070 (Outdoor Lighting). Outdoor Storage/Display See Section 20.48.140 (Outdoor Storage, Display, and Activities). Parking See subsection (D)(3) of this section and Chapter 20.40 (Off -Street Parking). Satellite Antennas See Section 20.48.190 (Satellite Antennas and Amateur Radio Facilities). Signs See Chapter 20.42 (Sign Standards). (1) Development limits are additional residential development opportunities beyond the base allowances in this Title or the General Plan. These limits shall not include density bonus units or units that are either identified as pipeline units in the 611 Cycle Housing Element (Table B-2) or units that were applied for and predate the effective date of the HO Overlay Zoning Districts. Furthermore, eligible units are only counted against the development limits when they are either entitled or are issued a building permit if allowed by right. However, 25% of the development limit within each HO Overlay Zoning District that includes properties within the Coastal Zone shall be reserved until such a time as the City's Local Coastal Program has been amended to allow for housing consistent with the implementation of the 6th Cycle Housing Element. Following the City's Local Coastal Program Amendment, priority for the reserved units will be given to sites located within the Coastal Zone. (2) Minimum/maximum allowable density range may be based on an average density of the entire project site, excluding density bonus units. (3) Any portion of the building that is over 20 feet in height shall be setback a minimum 20 feet from the street right-of-way. (4) Except in the Mixed -Use Mariners Mile (MU-MM) Zoning District wherein residential uses are only allowed beginning 100 feet north of Coast Highway. (5) The combined total from both sides shall be 15 feet. (6) The height shall be limited to 35 feet in the Shoreline Height Limit Area, as identified in Map H-1. (7) "Base Zone" includes all height limitations established by the Sight Plane Ordinance (Ordinance No. 1371 and Ordinance No. 1596). (8) The FAR in this table only applies to residential floor area, including any supporting facilities. In mixed -use developments, the FAR for nonresidential is still applicable. (9) For purposes of this section, common and private open space in HO-1 may include enclosed shared amenities such as a clubhouse, swimming pool, tennis court, basketball court, racquetball court, weightlifting facility, children's playground equipment, sauna, jacuzzi, day care facility, or any other recreational amenities/facilities as deemed appropriate by the Community Development Director. (10)This density is intended for the former Coyote Canyon Landfill site only. The Sage Hill School site is limited to a maximum of 20 dwelling units. (11)Of the 2,577 base development units 179 units shall be allocated to Site ID No. 77 (1201 Dove Street) from the 61h Cycle Housing Element Sites Inventory. (12)Of the 2,439 base development units for HO-4 152 units shall be allocated to Site ID No. 362 (868 and 870 Santa Barbara Drive) from the 61h Cycle Housing Element Sites Inventory. The following map is updated in Section 20.80.025 (Housing Opportunity Overlay District maps) of Chapter 20.80 (Maps) of the NBMC: 5-11 Le end -,,rz 9 � Newport Center Sight Plane Height Exception Area - Coastal Zone Boundary )� i Housing Opportunity Sites Overlay (Coastal Zone) Housing Opportunity Sites Overlay O32 feet (flat) / 37 feet (sloped) 48 feet O70 feet Oi 85 feet © 110 feet O 150 feet O 270 feet 46 JLLUUUM' 'LL'M LL i 1 f� � e CB chi 0�•,. HO-4 Newport Center Area NBGIS NEWPORT BEACH City of Newport Beach GIS Division June 13, 2025 5-12 EXHIBIT "C" CEQA Consistency Memorandum Available separately due to bulk at: https•//newportbeachca gov/home/showdocument?id=76683&t=638833463869042483 5-13 dos .Angeles Time's l E D I G R O U P PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA County of Orange I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the action for which the attached notice was published. I am a principal clerk of the Newport Harbor News Press Combined With Daily Pilot, which was adjudged a newspaper of general circulation on June 19, 1952, Cases A24831 for the City of Newport Beach, County of Orange, and State of California. Attached to this Affidavit is a true and complete copy as was printed and published on the following date(s): Jun 28, 2025 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at Fountain Valley, California on this 1st day of July, 2025. [signature] 10540 Talbert Avenue Fountain Valley, CA 92708 8003698 - Newport Harbor News Press Combined With Daily Pilot Page 1 of 2 dos .Angeles ME D I A G Cnlrt Tn- R 0 U P City of Newport Beach - CA11072031 100 Civic Center Dr Newport Beach,CA 92660-3267 Bill To: City of Newport Beach - CA11072031 100 Civic Center Dr Newport Beach,CA 92660-3267 CITY OF NEWPORT BEACH PUBLIC NOTICE ORDINANCE SUMMARY NOTICE. IS HEREBY GIVEN that on June 24, 2025, the City Council of the City of Newport Beach, California, adopted an Ordinance entitled: ,6I:1GrIMIT214:1XI F AN ORDINANCE Of THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING SECTION 20.2&050 (HOUSING OPPORTUNITY (11-10) OVERLAY ZONING DISTRICTS) IN TITLE 20 (PLANNING AND ZONING] OF THE NEWPORT BEACH MUNICIPAL CODE RELATED TO IMPLEMENTATION OF THE HOUSING ELEMENT The Ordinance would adjust the allowable building heights to accommodate residential developments within the intended prescribed density range of 20 to 54 dwelling un45 per acre- it should be emphasized that there are no charges proposed to the Newport Center Sight Plane, as established by 0rdinan[e Nos- 1371, 1S96, 83-27, and 91.97, which serves to maintain residential views across the southeasterly quadrant of Newport Center - This Ordinance wasadopted bythe CityCouiidl of the City of Newport Beach, California, at a regular meeting thereof on the 24th day of June, 2025. by the following vote: AYES: Mayor Joe Stapleton, Mayor Pro Tern Lauren Kleiman, Councilmember Michelle Barto, Counalmember Noah Blom, Counc1member Robyn Grant Councilmember Sara 1 Weber, CounciImernber Erik Weigand NAYS- None The Ordinance shall become final and effective 30 clays after adoption - Publication Date, June 28, 2025 Is! Molly Perry, InteriM City Clerk 8003698 - Newport Harbor News Press Combined With Daily Pilot Page 2 of 2