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HomeMy WebLinkAboutEspinoza Condo Conversion (PA2004-137)CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT Agenda Item No. 3 September 23, 2004 TO: PLANNING COMMISSION FROM: James Campbell, Senior Planner jcampbell@city.newport-beach.ca.us (949) 644 -3210 SUBJECT: Espinoza Condominium Conversion (PA2004 -137) • Condominium Conversion No. 2004 -014 • Newport Tract Map No. 2004 -002 • Coastal Residential Development Permit No. 2004 -001 PROJECT SITE: 329 Marguerite Avenue, Corona del Mar APPLICANT: Maclovio Espinoza 2744 E. Coast Highway Corona del Mar, CA 92625 INTRODUCTION The applicant requests approval of a Condominium Conversion Permit and a Tentative Tract Map to convert an existing 7 -unit apartment building to condominiums for the purpose of individual sale. The Coastal Residential Development Permit relates to compliance with affordable housing regulations applicable within the Coastal Zone. RECOMMENDATION At the conclusion of the public hearing, staff recommends that the Planning Commission approve Condominium Conversion No. 2004 -014, Newport Tract Map No. 2004 -002 and Coastal Residential Development Permit No. 2004 -001 (PA2004 -137) subject to the findings and conditions of approval within the draft resolution for project approval (Exhibit No. 1). Vicinity Map 329 Marguerite Avenue Corona del Mar Current Development: The subject property is currently developed with a seven unit, two-story a artment building with a pool To the north: Municipal parking lot and a restaurant To the east: Multi-family residential uses and commercial uses To the south: Multi-family residential uses To the west: Single and two family residences DISCUSSION In November of 1956, the City approved Use Permit No. 275 allowing the construction of the existing 7 -unit apartment building in the R -3 zone and the construction took place in accordance with the plans in 1957. The project supplied 1 parking space for each unit and the project has a pool. As noted, the applicant desires to convert the project to condominiums so that the units can be sold independently. The applicant is currently renovating and updating the interior of the units. The only exterior improvements planned are maintenance and painting. Espinoza Condominium Conversion (PA2004 -137) September 23, 2004 Page 2 of 7 General Plan Compliance The site is designated Multi - Family Residential by the Land Use Element and no change in use or density is proposed. Apartments or condominiums are expected to be located within this designation. The Multi - Family Residential designation does not have a density standard and the Estimated Growth Table contained within the Land Use Element for Statistical Area F3 accounts for the 7 existing units. Zoning Compliance (Title 20 of the Municipal Code) The current development has several nonconformities from current zoning provisions. The site has one more unit than the MFR zone would allow. Presently, the MFR zone would permit 1 unit for each 1,200 square foot of lot area, which would permit 6 units on the 7,316 square foot lot. The site was developed with 7 units when the density standard was 1 unit for each 1,000 square foot of lot area. 2. The project provides less than the minimum required parking. The site has one covered parking space per unit (carports) and the current code requires 2 spaces per unit (1 covered) and 4 guest parking spaces. The buildings have minor encroachments into setbacks. All setbacks for this lot are a minimum of 5 feet per the zoning code and the District Map. Based upon the site plan submitted and field reconnaissance, the building appears to encroach approximately 1 -foot into the front setback, 3-4 feet into the side yard facing Bayside Drive for a portion of the building, 1 -foot into the opposite side yard and 1 -2 feet for portions of the building into the alley setback. Each of these nonconformities is allowed to remain indefinitely; however, alterations and additions are restricted per Chapter 20.62 (Nonconforming Structures and Uses). The renovations currently underway have been permitted by staff in accordance with applicable regulations. Condominium conversions are not regulated by the Zoning Ordinance but are regulated by Title 19 (Subdivisions), which is discussed below. Chapter 20.86 (Low Income Housing within the Coastal Zone) requires an evaluation of the potential loss of affordable housing when three or more units are demolished or converted to condominiums. This requirement implements Section 65590 of the Government Code, which requires the replacement of eliminated affordable housing within the Coastal Zone. The project site is within the Coastal Zone and based upon information submitted by the applicant, 2 units were occupied by low or moderate income households. The feasibility of requiring replacement units to be provided on -site was evaluated by staff, and it was determined that requiring the replacement units on site would not be feasible. This determination took into account the significant gap between the projected $600,000 sales price and what a moderate income household might be able to afford and the long term administration of the affordability contract. Espinoza Condominium Conversion (PA2004 -137) September 23, 2004 Page 3 of 7 Staff has requested the applicant to pay an in -lieu fee in the amount of $13,500 per unit ($27,000 total). This fee is the amount of the City's contribution to the Bayview Landing affordable housing project and the applicant has agreed to pay the fee. Subdivision Compliance (Title 19 of the Municipal Code) Condominium conversions require that existing tenants be notified and be provided the opportunity to purchase the units. All of the existing tenants have been notified of this meeting in accordance with the Title 19 and Subdivision Map Act and they will receive future notices related to the opportunity to purchase the units. New subdivisions are also required to provide underground utility connections. The existing electrical and cable service is above ground and a standard condition of approval has been included that will require the project to underground these utilities to the nearest pole unless it is determined to be infeasible from a construction standpoint by the Public Works and Building Director. The following standards are applicable to condominium conversions: A. The number of off - street parking spaces that were required at the time of the original construction shall be provided on the same property to be converted to condominium purposes, and the design and location of such parking shall be in conformance with the provisions of Chapter 20.66 (Off- Street Parking and Loading Regulations). Under no circumstance shall there be less than one covered parking space per dwelling unit. The project was originally required to provide one space for each unit. B. Each dwelling unit within a building shall have a separate sewer connection to the City sewer. The building was not constructed with separate sewer connections and the draft resolution has a condition of approval requiring the separation of the sewer lines. The applicant has not requested a waiver from this standard and staff would not recommend such a waiver in this case. C. Each sewer lateral shall be retrofitted/fitted with a cleanout at the property line. This requirement has been included as a condition of approval. D. Each unit shall maintain a separate water meter and water meter connection. The project presently has separate water connections. E. The electrical service connection shall comply with the requirements of Chapter 15.32 of the Municipal Code. Chapter 15.32 requires new utility connections to be underground. Each unit presently has a separate utility meter but the utility connection is above ground. The Building Espinoza Condominium Conversion (PA2004 -137) September 23, 2004 Page 4 of 7 Director can consider issuing a waiver from this requirement it undergrounding is not feasible. F. The applicant for a condominium conversion shall request a special inspection from the Building Department for the purpose of identifying any building safety violations. The applicant shall correct all identified safety violations prior to approval of a final map for the condominium conversion. An inspection of the building was conducted by the Building Department. The report did indicate several deficiencies and many of the deficiencies were related to the on -going renovation of the building. The remaining deficiencies were minor in nature (smoke detectors) and staff has included a condition of approval that requires elimination of all deficiencies prior to the approval of the final tract map. G. Permanent lot stakes and tags shall be installed at all lot comers by a licensed surveyor or civil engineer unless otherwise required by the City Engineer. Staff has included a condition of approval that requires the permanent corner tags to be set and recorded in accordance with applicable laws. H. For residential conversions, the project shall be consistent with the adopted goals and policies of the General Plan, particularly with regard to the balance and dispersion of housing types within the City. The General Plan does not include any specific goals for the dispersion of rental housing within the area. Obviously, the conversion from rental to ownership will reduce the number of rental opportunities in Corona del Mar. It is not known how many rental opportunities exist within the area, but it is not likely that the project will create a detrimental impact to housing opportunities. The establishment, maintenance or operation of the use or building applied for shall not, under the circumstances of the particular case, be detrimental to the health, safety, peace, comfort and general welfare of persons residing or working in the neighborhood of such proposed use or be detrimental or injurious to property and improvements in the neighborhood or the general welfare of the City. The proposed conversion will not create any substantial construction- related disruption as the project will only necessitate the undergrounding of electrical service and separation of sewer connections. Construction - related work will be temporary in nature and the long term operation of the site will not change from current conditions. Staff does not see any negative physical or environmental issues against making this finding. Condominium Conversions also require the approval of parcel maps or tract maps as the case may be. Pursuant to Section 19.12.070 of the City Subdivision Code, several findings for the approval of a tentative tract map are required; however, many of the typical subdivisions findings, including the finding that the subdivision is consistent with the General Plan, are rendered inapplicable to condominium conversions by Espinoza Condominium Conversion (PA2004 -137) September 23, 2004 Page 5 of 7 Government Code Section 66427.2. In this case, the proposed subdivision is consistent with the Multi - Family Residential designation of the property. The following remaining findings are applicable: A. That the subdivision is consistent with Section 66412.3 of the Subdivision Map Act and Section 65584 of the California Government Code regarding the City's share of the regional housing need and that it balances the housing needs of the region against the public service needs of the City's residents and available fiscal and environmental resources. The proposed subdivision will not eliminate housing nor will it create any new housing units. B. That the discharge of waste from the proposed subdivision into the existing sewer system will not result in a violation of existing requirements prescribed by the Regional Water Quality Control Board. The proposed subdivision will not increase the number of residential units and the units will continue to discharge waste into the sewer system. Therefore, the subdivision will not create or add to a violation of Regional Water Quality Control Board requirements. Environmental Review This project qualifies for a Categorically Exemption pursuant to Section 15301 (Existing Facilities) of the implementing Guidelines of the California Environmental Quality Act. This exemption allows the alteration of existing facilities including interior and exterior alterations and utility conveyances provided there is no expansion of the use. Staff believes the proposed project meets this standard and is exempt from environmental review. Public Notice Notice of this hearing was published in the Daily Pilot with the agenda, mailed to property owners within 300 feet of the property and posted at the site a minimum of 10 days in advance of this hearing consistent with the Municipal Code. Notices were also provided to all known tenants of the building. Additionally, the item appeared upon the agenda for this meeting, which was posted at City Hall and on the city website. Alternatives The Commission has the option to disapprove the proposed subdivision if it is believed that the retention of the project as apartments if in the best interest of the City to maintain more rental opportunities in the area. Project denial will not retain the two units that were occupied by low or moderate income households. The applicant would retain the ability to adjust rents as desired. Espinoza Condominium Conversion (PA2004 -137) September 23, 2004 Page 6 of 7 CONCLUSION Staff believes the application meets all established standards for a condominium conversion and tentative tract map and that the loss of the rental opportunities is not detrimental to the City. Additionally, the acceptance of the in -lieu fee is adequate compensation for the elimination of two affordable dwelling units. Therefore, staff believes the applications should be approved. Submitted by: PATRICIA L. TEMPLE Planning Director EXHIBITS 1. Draft resolution for project approval 2. Plans Prepared by: JAMES W. CAMPBELL Senior Planner Espinoza Condominium Conversion (PA2004 -137) September 23, 2004 Page 7 of 7 Exhibit No. 1 RESOLUTION NO. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH APPROVING CONDOMINIUM CONVERSION NO. 2004 -014, NEWPORT TRACT MAP NO. 2004 -002 AND COASTAL RESIDENTIAL DEVELOPMENT PERMIT NO. 2004 -001 FOR PROPERTY LOCATED AT 329 MARGURITE AVENUE (PA2004 -137). THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS, RESOLVES AND ORDERS AS FOLLOWS: WHEREAS, an application was filed by Maclovio Espinoza requesting convert an existing 7 -unit apartment building located at 329 Marguerite Avenue in Corona del Mar to condominiums for the purpose of individual sale. Pursuant to the Municipal Code, the request requires the approval of a Condominium Conversion Permit, Tentative Tract Map and a Coastal Residential Development Permit. WHEREAS, the Land Use Element of the General Plan and the certified Local Coastal Program, Land Use Plan designate the project site as Multi- family Residential and the site is zoned MFR (Multi - Family Residential). WHEREAS, A public hearing was held on September 23, 2004 at 6:30 P.M. in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California. A notice of the time, place and purpose of the meeting was given in accordance with the Municipal Code. Additionally, notice of this hearing was provided to the tenants of the project site in accordance with Government Code Section 66452.9. Evidence, both written and oral, was presented to and considered by the Planning Commission at the meetings. WHEREAS, the project is consistent with Chapter 19.64 (Conversion of Rental Units to Ownership) for the following reasons: 1. The project was originally required to provide one parking space for each unit, which meets the minimum number required to be eligible for conversion. 2. The building was not constructed with separate sewer connections and separation of the sewer lines is required as a condition of approval. Each lateral shall be fitted with proper cleanouts at the property line. 3. The project presently has separate water connections, as required. 4. The existing electrical connection will be placed underground, unless the Building Director issues a waiver if undergrounding is not feasible. 10 City of Newport Beach Planning Commission Resolution No. _ Page 2 of 8 5. An inspection of the building was conducted by the Building Department and all deficiencies are required to be eliminated prior to the approval of the final tract map. 6. Permanent lot stakes and /or tags shall be installed at all lot corners by a licensed land surveyor or civil engineer. A corner record or record of survey shall be recorded in accordance with applicable laws. 7. The General Plan does not include any specific goals for the dispersion of rental housing within the area and the conversion from rental to ownership will reduce the number of rental opportunities in Corona del Mar; however the elimination of 7 rental units will not create a detrimental impact to housing opportunities in the City. 8. The establishment, maintenance or operation of the proposed 7 -unit condominium project will not, under the circumstances of the particular case, be detrimental to the health, safety, peace, comfort and general welfare of persons residing or working in the neighborhood of such proposed use or be detrimental or injurious to property and improvements in the neighborhood or the general welfare of the City for the following reasons: a. The proposed conversion will not create any substantial construction - related disruption other than to separate the existing sewer and underground the existing electrical service. b. Construction- related work will be temporary in nature and the long -term operation of the site will not change from current conditions. c. The proposed project meets or is conditioned to meet all applicable standards for the conversion of rental housing to ownership. d. The proposed 7 -unit condominium is consistent with the Multi - Family Residential designation of the Land Use Element of the General Plan and Local Coastal Program, Land Use Plan. WHEREAS, pursuant Section 66412.3 of the Subdivision Map Act, the City's share of the regional housing needs was considered in conjunction with the proposed subdivision and the approval of the condominium conversion will not eliminate housing nor will it create any new housing units. The elimination of 7 rental units will not create a detrimental impact to housing opportunities in the City. Q City of Newport Beach Planning Commission Resolution No. Page 3 of 8 WHEREAS, the discharge of waste from the proposed subdivision into the existing sewer system will not create or add to a violation of Regional Water Quality Control Board requirements as approval of the subdivision will not increase the number of residential units and the units will continue to discharge waste into the sewer system at existing rates. WHEREAS, the entire project is located within the coastal zone and requests the conversion of 7 rental units within a single building to ownership and as such, Government Code Section 65590 requires the replacement of any units occupied by low or moderate income households. Information supplied by the applicant indicates that 2 of the 7 units located at the subject property are occupied by low or moderate income households. On -site replacement is not feasible taking into account the significant gap between the projected $600,000 sales price and what a moderate income household might be able to afford. Additionally, the long term administration of an affordability contract for 2 units is undesirable. Due to the reduction in affordable units within the City with the conversion proposed, the applicant should mitigate that loss through the payment of an in -lieu fee to the City, which can be used to increase the affordable housing supply within the City. An in -lieu fee of $13,500 per unit ($27,000 total) has been proposed by the City and the applicant has agreed to the payment. A condition of approval has been included that will ensure payment of this fee. With the payment of this in -lieu fee, the proposed conversion is consistent with the provisions of Chapter 20.86 of the Municipal Code and Government Code Section 65590. WHEREAS, the project is exempt from environmental review pursuant to Section 15301 (Existing Facilities) of the implementing Guidelines of the California Environmental Quality Act. This exemption allows the alteration of existing facilities including interior and exterior alterations and utility conveyances provided there is no expansion of the use. The project consists of the conversion of an existing apartment building to condominiums and only minor interior and exterior improvements are planned and no expansion in the number of units is proposed. NOW, THEREFORE, BE IT RESOLVED Section 1. Based on the aforementioned findings, the Planning Commission hereby approves Condominium Conversion No. 2004 -014, Newport Tract Map No. 2004 -002 and Coastal Residential Development Permit No. 2004 -001 subject to the conditions of approval set forth in Exhibit "X. ra City of Newport Beach Planning Commission Resolution No. Page 4 of 8 Section 2. This action shall become final and effective fourteen (14) days after the adoption of this Resolution unless within such time an appeal is filed with the City Clerk or this action is call for review by the City Council in accordance with the provisions of Title 20, Planning and Zoning, of the Newport Beach Municipal Code. ADOPTED THIS 23nd DAY OF SEPTEMBER 2004. BY: M Larry Tucker, Chairman Jeffrey Cole, Secretary AYES: NOES: ABSENT: City of Newport Beach Planning Commission Resolution No. _ Page 5 of 8 Exhibit "A" CONDITIONS OF APPROVAL CONDOMINIUM CONVERSION NO. 2004 -014 NEWPORT TRACT MAP NO. 2004-002 COASTAL RESIDENTIAL DEVELOPMENT PERMIT NO. 2004 -001 1. The project shall be in substantial conformance with the submitted plot plan, floor plans and elevations, except as noted below. 2. No more than 7 dwelling units shall be permitted on the site. 3. Each of the tenants of the proposed condominium shall be given 180 days written notice of intention to convert prior to the termination of tenancy due to the proposed conversion. 4. Each of the tenants of the proposed condominium shall be given notice of an exclusive right to contract for the purchase of their respective units upon the same terms and conditions that such units will be initially offered to the general public or terms more favorable to the tenant. Such right shall run for a period of not less than 90 days from the date of issuance of the subdivision public report (Section 11018.2 of the Business and Professions Code), unless the tenant gives prior written notice of his or her intention not to exercise the right. Prior to final of the condominium conversion permit, the applicant shall provide a copy of the written verification forwarded to the tenants and said verification shall be presented to the Planning Department. 5. The number of off - street parking spaces that were required at the time of the original construction (7) shall be provided on the same property to be converted to condominium purposes, and the design and location of such parking shall be in conformance with the residential provisions of Title 20 of the Municipal Code. 6. All improvements shall be constructed as required by Ordinance and the Public Works Department. 7. All applicable Public Works Department plan check fees and inspection fees shall be paid prior to recordation of the parcel map. 8. Arrangements shall be made with the Public Works Department in order to guarantee satisfactory completion of the public improvements if it is desired to record a parcel map or obtain a building permit prior to completion of the public improvements. 9. In accordance with the provisions of Chapter 13 of the Newport Beach Municipal Code or other applicable section or chapter, additional street trees shall be 17, City of Newport Beach Planning Commission Resolution No. _ Page 6 of 8 provided and existing street trees shall be protected in place during construction of the subject project, unless otherwise approved by the General Services Department and the Public Works Department through an encroachment permit or agreement if required. 10. Additional concrete sidewalk and alley pavement reconstruction work per City Standards may be required at the discretion of the Public Works Inspector. 11. Each dwelling unit shall be served with an individual water meter and sanitary sewer lateral and cleanout. Each water meter and cleanout shall be installed with a traffic -grade frame /box and cover within the public right -of -way per City Standards. The sewer service shall be separated so that each unit is served with a sewer lateral connection to the public sewer system with a clean -out to grade at the property line. If there is evidence that sewage is leaking from the facility or if it is substandard, the existing sewer lateral shall be replaced. Said work shall be completed under an encroachment permit issued by the Public Works Department, unless otherwise approved by the Utilities Department and the Building Department. This work shall be completed prior to final of the condominium conversion permit. 12. Each dwelling unit shall be served with individual gas and electrical service connection and shall maintain separate meters for the utilities. 13. Overhead utilities serving the site shall be undergrounded to the nearest appropriate pole in accordance with Section 19.28.090 of the Municipal Code unless it is determined by the City Engineer that such undergrounding is unreasonable or impractical. 14. In compliance with the requirements of Chapter 9.04, Section 901.4.4, of the Newport Beach Municipal Code, approved street numbers or addresses shall be placed on all new and existing buildings in such a location that is plainly visible and legible from the street or road fronting the subject property. Said numbers shall be of non - combustible materials, shall contrast with the background and shall be either internally or externally illuminated to be visible at night. Numbers shall be no less than four inches in height with a one -inch wide stroke. The Building Department Plan Check Engineer shall verify the approved street number or addresses during the plan check process for the new or remodeled structure. 15. All work conducted within the public right -of -way shall be approved under an encroachment permit issued by the Public Works Department. 16. All vehicular access to the property shall be from the adjacent alley unless otherwise approved by the City Council. 13 City of Newport Beach Planning Commission Resolution No. _ Page 7 of 8 17. County Sanitation District fees shall be paid prior to issuance of any building permits, if required by the Public Works Department or the Building Department. 18. Disruption caused by construction work along roadways and by movement of construction vehicles shall be minimized by proper use of traffic control equipment and flagmen. Traffic control and transportation of equipment and materials shall be conducted in accordance with state and local requirements. 19. Approval of Condominium Conversion No. 2004 -014, Newport Tract Map No. 2004 -002, Coastal Residential Development Permit No. 2004 -001 shall expire unless exercised within 36 months from the date of approval as specified in Section 20.93.055 of the Newport Beach Municipal Code. The final tract map shall be recorded within 36 month unless an extension is granted by the Planning Director in accordance with the provisions of Section 19.16 of the Newport Beach Municipal Code. 20. A parcel map shall be recorded prior to occupancy. The parcel map shall be prepared on the California coordinate system (NAD83) and prior to recordation of the parcel map, the surveyor /engineer preparing the map shall submit to the County Surveyor a digital- graphic file of said map in a manner described in Sections 7 -9 -330 and 7 -9 -337 of the Orange County Subdivision Code and the Orange County Subdivision Manual, Subarticle 18. Upon recording of the parcel map, the surveyor or engineer shall forward a Mylar copy and 3 bond copies to the Public Works Department. 21. Prior to recordation of the parcel map, the surveyor /engineer preparing the map shall tie the boundary of the map into the Horizontal Control System established by the County Surveyor in a manner described in Sections 7 -9 -330 and 7 -9 -337 of the Orange County Subdivision Code and the Orange County Subdivision Manual, Subarticle 18. Monuments (one inch iron pipe with tag) shall be set on each lot corner unless otherwise approved by the Subdivision Engineer. Monuments shall be protected in place if installed prior to completion of the construction project. 22. The existing electrical service connections shall comply with the requirements of Chapter 15 of the Newport Beach Municipal Code; specifically, that each unit will have a minimum 100 amp service. 23. Smoke detectors shall be provided in each bedroom. 24. The corrections listed by the Building Department in the special inspection report shall be made prior to final of the condominium conversion permit. 25. The property owner shall provide information to the Building Department that the roof is a Class C fire retardant roof as certified by a roofing contractor. 4 26. The building permit obtained from the subject residential units into condomi for "condominium purposes" has bee all conditions of approval have bee Department. City of Newport Beach Planning Commission Resolution No. _ Page 8 of 8 Building Department in order to convert the iiums shall be "finaled" after the Tract Map i recorded with the County of Orange and i completed and verified by the Planning 27. The applicant shall be responsible for the payment of all administrative costs identified by the Planning Department within 30 days of receiving a final notification of costs or prior to the issuance of a Building Permit. 28. 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