HomeMy WebLinkAbout02_Uptown Newport Development Agreement Annual Review_PA2025-0159CITY OF NEWPORT BEACH
ZONING ADMINISTRATOR STAFF REPORT
October 30, 2025
Agenda Item No. 2
SUBJECT: Annual Review of Uptown Newport Development Agreement
(PA2025-0159)
▪Development Agreement No. DA2012-003
SITE LOCATION: 4311-4321 Jamboree Road
APPLICANT/OWNER: Uptown Newport, LP (TSG-Parcel 1, LLC)
PLANNER: Daniel Kopshever, Assistant Planner
949-644-3235, dkopshever@newportbeachca.gov
ZONING DISTRICT/GENERAL PLAN
•General Plan: MU-H2 (Mixed-Use Horizontal)
•Zoning District: PC-58 (Uptown Newport)
PROJECT SUMMARY
An annual review of Development Agreement No. DA2012-003 (DA) for Uptown Newport
Planned Community (PC-58), pursuant to Section 15.45.080 (Periodic Review) of the
Newport Beach Municipal Code and Section 65865.1 of the California Government Code.
RECOMMENDATION
1)Conduct a public hearing;
2)Find the annual review is exempt from the California Environmental Quality Act
(“CEQA”) pursuant to Section 15321, Class 21 (Enforcement Actions by Regulatory
Agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Division
6, Chapter 3;
3)Find that the applicant has demonstrated good faith compliance with the terms of
Development Agreement No. DA2012-003; and
4)Receive and file the Annual Report of Development Agreement for Uptown Newport
Planned Community (Attachment No. ZA 2).
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BACKGROUND
On March 12, 2013, the City Council adopted Ordinance No. 2013-6, approving the DA
for the development of a 25-acre, mixed-use residential project consisting of 1,244
residential units, two 1-acre public parks, and 11,500 square feet of retail uses (Uptown
Newport) in two separate development phases. The DA became effective on April 11,
2013. The term of the DA is 15 years and has two 5-year extension options. The earliest
expiration could be in 2028.
On April 28, 2015, the City Council adopted Ordinance No. 2015-11 to approve the First
Amendment to DA (PA2015-015) approving the First Amendment to the DA that delayed
the timing of payment of public benefit fees and park in-lieu fees.
On September 5, 2013, the Planning Commission approved Master Site Development
Review (MSDR) No. SD2013-002 (PA2013-129) for Uptown Newport. The Planning
Commission also approved prototypical architectural building elevations, master
landscape plan and plant palette, preliminary public parks and paseo plans, preliminary
master wall/fence plans, master signage plans, and preliminary site improvement plans
for the entire 25-acre planned development.
On January 24, 2016, the Community Development Director approved Minor Site
Development Review No. SD2015-004 (PA2015-141) for the construction of 455
residential apartment units (One Uptown Newport Residences) in two separate buildings,
approximately 10,700 square feet of retail use, and a 50-foot-wide paseo within Phase 1
of Uptown Newport proposed by the Picerne Group. These two buildings include 92 units
for very-low-income households.
On September 2, 2016, the Community Development Director approved Staff Approval
No. SA2016-010 (PA2016-125), an amendment to Condition of Approval No. 34 of
Uptown Newport Tentative Tract Map No. NT2012-002 (TTM No. 17763), to delay
completion of the public sidewalk reconstruction along the Jamboree Road frontage of
Uptown Newport until occupancy of the Picerne Group’s first residential building or July
31, 2018, whichever comes first.
On March 23, 2017, the Planning Commission approved Major Site Development Review
No. SD2017-001 (PA2017-031), an amendment to the previously approved Master Site
Development Review (PA2013-129), to allow alternative locations and phasing of the
commercial component (up to 11,500 square feet).
On March 24, 2017, the Community Development Director approved Minor Site
Development Review No. SD2017-002 (PA2017-040), amending Minor Site
Development Review No. SD2015-004, to eliminate the 10,700-square-foot commercial
component and associated parking from the South Building. The area formerly planned
for commercial use was permitted to be developed with seven additional residential units
for a total of 229 units within the South Building. With the approval of the proposed
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Annual Review of Uptown Newport Development Agreement (PA2025-0159)
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amendment, a total of 462 apartment units would be developed at One Uptown Newport
Residences Project, inclusive of the 92 low-income units.
On April 11, 2017, the City Council adopted Resolution No. 2017-23, approving park in-
lieu fee credits, in the total amount of $7,144,965.39 for the One Uptown Newport
Residences Project, consistent with the General Plan and Municipal Code, and set the
park in-lieu fee payment for this project, the first 462 units in Phase 1, in the amount of
$2,895,686.54.
On July 13, 2018, the Community Development Director approved Minor Site
Development Review No. SD2018-002 (PA2018-107), for the construction of Phase 1’s
1-acre neighborhood park. The park’s construction began late December 2018 and
completed in 2024.
On October 22, 2020, the Community Development Director approved Minor Site
Development Review No. SD2020-004 (PA2020-047), for the construction of 30
residential condominium units, with enclosed parking for each unit in five separate
buildings (Parkhouse Residences), and a 30-foot wide paseo to be located on the easterly
half of Lot 1, within Phase 1 of Uptown Newport.
On October 27, 2021, the Community Development Director approved Staff Action Letter
(PA2021-165), which identified residual park fees and park in-lieu fee credits for the
Phase 1 Park construction costs, the provision of public recreational open space areas
around and between the approved Parkhouse Residences and the Uptown Newport
Residences (formally known as USAI) projects and their individual private recreational
facilities. The total estimated remaining maximum park in-lieu fee credit would be
$824,637.32 and it would be used towards future residential projects in Phase 2, since
Phase 1 will be completed upon completion of the two above-mentioned residential
projects.
On March 22, 2022, the City Council approved a Transfer of Development Rights
(PA2021-161) to transfer 77 of the unbuilt/unused units in Phase 1 of Uptown Newport to
1300 Bristol Street as part of the Residences at Bristol project approval.
On July 7, 2022, the Community Development Director approved Minor Site Development
Review (PA2021-120) for the construction of 60 residential condominium units in a six-
story building with attached parking and a 30-foot-wide paseo located on the westerly half
of Lot 1, within Phase 1 of the Uptown Newport Project. Subsequently, Time Extension
requests were issued on June 24, 2024, and April 3, 2025, consistent with Section
20.54.060 (Time Limits and Extensions) of the Newport Beach Municipal Code for the
project’s entitlement approval.
On October 22, 2024, the City Council adopted Ordinance No. 2024-24 to approve the
Second Amendment to DA (PA2024-0078) to allow excess park in-lieu fee credits to be
used towards the developer’s public benefit fee obligations for residential projects located
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Annual Review of Uptown Newport Development Agreement (PA2025-0159)
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within Uptown Newport. The approved Second Amendment has no impact on the
development of Uptown Newport, the overall terms, conditions, or development rights
specified in the DA; other than allowing excess park in-lieu fee credits to be used towards
public benefit fee obligations.
On July 3, 2025, the Community Development Director granted the first of two five-year
extensions (PA2025-0129). To date, building permits have been issued for 488 residential
units within Uptown Newport, exceeding the minimum requirement of 250 residential units
for the first five-year extension, pursuant to Section 5.1 of the DA. The term of the DA,
therefore, is extended from April 11, 2028, to April 11, 2033.
On July 10, 2025, the Zoning Administrator approved Tentative Parcel Map (PA2025-
0110) to combine the remnants of Parcel Nos. 1 & 4 of Parcel Map No. 2013-108 into one
parcel and subdivide the consolidated parcel into two parcels for conveyance purposes
only for Phase 2 future development in Uptown Newport.
On July 22, 2025, the City Council adopted Ordinance No. 2025-17, approving the Third
Amendment to DA (PA2025-0010), to extend the closure date for TowerJazz located
within future Phase 2 of Uptown Newport Project by 3.5 years, from March 12, 2027, to
September 12, 2030.
The DA and the first of two five-year extensions, inclusive of its First, Second and Third
Amendments are available online at:
http://www.newportbeachca.gov/developmentagreements.
On February 15, 2024, the Zoning Administrator conducted the annual review of DA and
found that Uptown Newport demonstrated good faith compliance with the terms of the DA
and its First Amendment.
DISCUSSION
Section 15.45.080 of the Newport Beach Municipal Code requires the City to periodically
review development agreements at least once every 12 months to determine if the
applicant has complied with the terms of the agreement. The applicant is required to
demonstrate good faith compliance with the terms of the agreement and should the
Zoning Administrator find that the applicant has not complied in good faith with the terms
of the agreement; the Zoning Administrator should refer the matter to City Council
consistent with Section 15.45.080(C) (Periodic Review).
2025 Annual Review
The 2025 annual review covers the period of February 2024 to August 2025. The Uptown
Newport project currently remains in Phase 1 development as shown in Exhibit 1 below,
with Phase 1 park completed, and One Uptown Newport Residences and Parkhouse
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Annual Review of Uptown Newport Development Agreement (PA2025-0159)
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Residences nearly complete. The Uptown Newport Residences project is anticipated to
be revised with a reduced scope of construction activities sometime in 2026.
A summary of construction-related activities within Phase 1 and the anticipated Phase 2
development performed by the property owner, its agents and affiliates during this review
period, are listed below:
1.Parkhouse Residences:
a.Construction: All plan approvals and building permits for the construction of
a 30-unit condominium project on the east half of Lot 1 in Phase 1 were
obtained in September 2021. Construction commenced that same month
and has been completed. Temporary Certificates of Occupancy have been
issued for all 30 units, and final Certificates of Occupancy have been issued
for 24 units. As of the date of this report, 26 units have been sold.
b.Home Owners Association (HOA Formation and Management: The
Parkhouse Homeowners Association became operational in December
2024 and is maintaining the Parkhouse Residences neighborhood. The
HOA is managed by The Management Trust.
2.Uptown Newport Residences: The approved 60-unit condominium project located
on the west half of Lot 1 in Phase 1 will be revised to a smaller project with
anticipated application submittal in late 2025 and construction starts in 2026.
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Annual Review of Uptown Newport Development Agreement (PA2025-0159)
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3.Uptown Newport Master HOA: The Uptown Newport Master Homeowners
Association is also operational as of December 2024, maintaining the master
common areas, including the public park within Phase 1. This HOA is likewise
managed by The Management Trust.
4.Affordable Leasing Plan for 92 Affordable Units at One Uptown Newport
Residences: As of December 2024, 96% of the 46 affordable units located in the
South building of One Uptown Newport Residences were occupied, with 2 units
available; 89% of the 46 affordable units in the North building were occupied, with
5 units available. All vacant units are in the process of being leased. Pan American
Properties, Inc. continues to oversee tenant qualification and compliance with
income and rent requirements.
5.66 KV Undergrounding: In coordination with City staff and Southern California
Edison, Uptown Newport has been working to identify solutions to avoid or
minimize power interruptions to Tower Jazz Semiconductors caused by localized
power shutdowns. The undergrounding project along Jamboree Road is
anticipated to be completed in April 2026.
6.Future Phase 2 Development:
a.Tentative Tract Map (TTM) Amendment: In April 2022, a revised TTM
application was submitted to adjust street and lot designs to accommodate
Phase 2 development. Resubmittal is anticipated in late 2025, along with a
revised Tentative Map, Master Site Development Plan, and EIR addendum
for Phase 2 development.
b.Phase 2 Demolition and Infrastructure: Development of Phase 2 is
tentatively scheduled to commence with demolition of existing
infrastructures when TowerJazz has ceased its operation in September
2030, or sooner. Demolition is expected to take 3–4 months, followed by
grading and infrastructure improvements. New infrastructure work will
extend through most of 2030, with Phase 2 park construction anticipated to
be completed in October 2030.
After reviewing the annual report, applicable documents, and terms and conditions
specified in the DA, staff believe that Uptown Newport is being implemented in good faith
compliance with the terms and conditions of the DA.
ENVIRONMENTAL REVIEW
This annual review is exempt from the California Environmental Quality Act (“CEQA”)
pursuant to Section 15321, Class 21 (Enforcement Actions by Regulatory Agencies) of
the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential to have a significant effect on the environment. This section
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Annual Review of Uptown Newport Development Agreement (PA2025-0159)
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exempts actions by regulatory agencies to enforce or revoke a lease, permit, license,
certificate, or other entitlement for use issued, adopted, or prescribed by the regulatory
agency or enforcement of a law, general rule, standard, or objective, administered or
adopted by the regulatory agency.
PUBLIC NOTICE
Notice of this review was published in the Daily Pilot, mailed to all owners of property
within 300 feet of the boundaries of the site (excluding intervening rights-of-way and
waterways), including the applicant, and posted on the subject property at least 10 days
before the scheduled hearing, consistent with the provisions of the Municipal Code.
Additionally, the item appeared on the agenda for this meeting, which was posted at City
Hall and on the City website.
APPEAL PERIOD:
An appeal or call for review may be filed with the Director of Community Development within
14 days following the date of action. For additional information on filing an appeal, contact
the Planning Division at 949-644-3200.
Prepared by:
RU/dk
Attachments: ZA 1 Vicinity Map
ZA 2 Uptown Newport Development Agreement Annual Report
7
Attachment No. ZA 1
Vicinity Map
8
VICINITY MAP
Annual Review of Uptown Newport Development
Agreement No. DA2012-003 (PA2025-0159)
4311-4321 Jamboree Road
Subject Property
9
Attachment No. ZA 2
Uptown Newport Development
Agreement Annual Report
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Ms. Rosalinh Ung
City of Newport Beach
Planning Department
100 Civic Center Drive
Newport Beach, California 92660
RE: 2024 Annual Report – Uptown Newport
Development Agreement No. DA2012-003
Calendar Year, 02/2024 to 08/2025
Dear Ms. Ung,
This Annual Report for the Uptown Newport Development Agreement No. DA2012-003 (the
“Agreement”) is submitted to the City pursuant to Section 7 of the Agreement and in compliance
with Section 65865.1 of the California Government Code. This report fulfills the annual reporting
requirement for development agreements.
Uptown Newport is a mixed-use development consisting of 1,244 residential units, 11,500 square
feet of retail uses, and two one-acre public parks on approximately 25.05 acres located at 4311–
4321 Jamboree Road, Newport Beach, California.
On March 23, 2013 (the “Agreement Date”), the City Council adopted Ordinance No. 2013-6 (the
“Adopting Ordinance”), finding the Agreement consistent with the City’s General Plan and
approving the Agreement. As required by Government Code Section 65867.5, the Agreement was
adopted by ordinance, and no appeals, referenda, or lawsuits were filed challenging the validity of
the Adopting Ordinance. Accordingly, the Agreement became effective on April 22, 2013, thirty
(30)days after the Agreement Date.
The Uptown Newport project is currently in Phase I of development, with site improvements for
this phase completed. The following summarizes notable accomplishments during the 2024
calendar year:
1.66 KV Undergrounding: In coordination with City staff and Southern California Edison, we
have been working to identify solutions to avoid or minimize power interruptions to Tower
Jazz Semiconductors caused by localized power shutdowns. The undergrounding project
along Jamboree Road is anticipated to be completed in April 2026.
2.Parkhouse Residences: Parkhouse Residences, LLC obtained all plan approvals and
building permits for the construction of five condominium buildings on the east half of Lot
1 in September 2021. Construction commenced that same month and has been
completed. Temporary Certificates of Occupancy have been issued for all 30 units, and
final Certificates of Occupancy have been issued for 24 units. As of the date of this report,
26 units have been sold.
11
3.Parkhouse HOA: The Parkhouse Homeowners Association became operational in
December 2024 and is maintaining the Parkhouse Residences neighborhood. The HOA is
managed by The Management Trust.
4.Uptown Master HOA: The Uptown Master Homeowners Association is also operational as
of December 2024, maintaining the master common areas, including the public park. This
HOA is likewise managed by The Management Trust.
5.Development Agreement Amendment No. 2: On April 4, 2025, the City Council approved
Amendment No. 2 to the Uptown Newport Development Agreement, allowing certain Park
Fee credits to be applied against future Public Benefit Fees for the project.
6.Lot 1 West (60-Unit Condominium Project): In July 2022, the City’s Community
Development Director approved a Minor Site Development Plan for Lot 1 West. While
currently on hold, construction is anticipated to begin in late Q4 2025 or early Q1 2026,
with an estimated 30-month build-out.
7.Phase II Tentative Tract Map (TTM) Amendment: In April 2022, a revised TTM was
submitted to adjust street and lot designs to accommodate potential users. Resubmittal is
anticipated in late 2025, along with a revised Tentative Map, Master Site Development
Plan, and EIR addendum for Phase II.
8.Development Agreement Extension: On July 3, 2025, City staff approved the first of two
five-year extensions to the Uptown Newport Development Agreement, extending the term
through April 11, 2033.
9.Development Agreement Amendment No. 3: On June 19, 2025, the Planning Commission
approved Amendment No. 3 to extend the Tower Jazz sunset date by 3.5 years to
September 12, 2030. The City Council subsequently approved the amendment on July 26,
2025, with a second reading scheduled for September 26, 2025. It should be noted that a
few residents from Parkhouse Residences voiced opposition to this extension.
10.Tentative Parcel Map Approval: On July 10, 2025, the City Zoning Administrator approved
TPM 2025-139 to allow for a two-parcel “financing and conveyance” map on Uptown
Newport Phase II. The final parcel map is scheduled to be recorded in September 2025.
11.Phase II Demolition and Infrastructure: Development of Phase II is scheduled to
commence with demolition in September 2029. Demolition is expected to take 3–4
months, followed by grading and infrastructure improvements. Infrastructure work will
extend through most of 2030, with Phase II park construction anticipated to be completed
in October 2030.
12
12.One Uptown Affordable Leasing Plan: As of December 2024, 96% of the 46 affordable
units in the South building were occupied, with 2 units available; 89% of the 46 affordable
units in the North building were occupied, with 5 units available. All vacant units are in the
process of being leased. Pan American Properties, Inc. continues to oversee tenant
qualification and compliance with income and rent requirements.
We look forward to continuing our development efforts at Uptown Newport and appreciate the
City’s ongoing cooperation. Please feel free to contact me at 949-417-1397 or
bshopoff@shopoff.com with any questions.
Sincerely,
William A. Shopoff
President and CEO
CC: Gregory Powers, Jackson Tidus
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From: Jim Mosher <jimmosher@yahoo.com>
Sent: October 29, 2025 11:59 AM
To: CDD
Subject: Comments on ZA Item 2 (10/30/2029 meeting)
These comments refer to the posted staff report for Item 2, Uptown Newport Development
Agreement Annual Review (PA2025-0159), on the October 30, 2025, Zoning Administrator
agenda.
1. The staff report does not explain how an annual review covering the period of
February 2024 to August 2025 (per bottom of page 4), a period of 18 or 19 months
(depending on whether it includes or ends with August 2025), is consistent with the
stated requirement (in the previous paragraph) to conduct a review "at least once every
12 months."
2. The staff report appears to rely, at least in part, on the developer's Annual Report,
consisting of an undated letter (Attachment No. ZA 2), whose reporting period is a bit
difficult to be sure of. While the list of numbered accomplishments beginning on
handwritten page 11 begins with a statement that "The following summarizes notable
accomplishments during the 2024 calendar year," it includes things that happened in
2025, which is more in keeping with the caption at the top of the letter referring to
"Calendar Year, 02/2024 to 08/2025." It also includes some that happened before
February 1, 2024. It seems a rather loose and unconventional understanding of
"calendar year."
3. Whatever the period covered, Paragraph 9 in the developer's Annual Report is
admirably candid in noting "that a few residents from Parkhouse Residences voiced
opposition to" the extension of the Tower Jazz sunset date. As I recall, they indicated to
the Planning Commission that they had made their purchases with an expectation that
Tower Jazz would shut down on or before the previously-promised date, and seeing the
date extended, seemed to feel they were victims of a "bait and switch."
4. Both the City staff report and the developer's Annual Report seem to focus on
accomplishments. While accomplishments are good to see, are there any things that
raise questions of compliance with the terms of the Agreement?
5. There is very little mention in either about the promised public benefits. What is the
status of those? What public benefits remain to be paid or otherwise fulfilled?
-- Jim Mosher
Zoning Administrator - OCTOBER 30, 2025 Item No. 2a Additional Materials Received Uptown Newport Development Agreement Annual Review (PA2025-0159)