The URL can be used to link to this page

Home My WebLink About2012-20 - Adopting an Amendment to Development Agreement No. DA2007-002ORDINANCE NO. 2012 -20 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADOPTING AN AMENDMENT TO DEVELOPMENT AGREEMENT NO. DA2007 -002 WHEREAS, the Irvine Company has filed an application with respect to its property located in North Newport Center Planned Community (NNCPC) Development Plan to allow future development in NNCPC, which consists of seven sub -areas that include Fashion Island, Block 600, Block 800 and portions of Blocks 100, 400, 500, and San Joaquin Plaza of the Newport Center Statistical Area ( "Property "). As part of the application, the Irvine Company requests approval of an 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 and Residential Units to Zoning Implementation and Public Benefit Agreement (Portions of Newport Center Blocks 100, 400 and 800 and San Joaquin Plaza), to allow future development on the Property (the "Amendment "). WHEREAS, the Amendment was prepared and is attached as Exhibit "A." WHEREAS, 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 shall have a vested right to develop the following entitlements on the Property: Develooment Limits (A) 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.0 and IV.0 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 resolution 2011 -102, the maximum permitted office /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. San Fashion Block Joaquin Land Use Island 100 Block 400 Block 500 Block 600 Block 800 Plaza Total Regional 1,619,525 0 0 0 0 0 0 1,619,525 sq. Commercial slq ft. I I I ft. Movie 1,700 seats 0 0 0 0 0 0 1,700 seats Theater (27,500 (27,500 sq. sq. ft.) ft.) Hotel (B) 0 0 0 295 0 0 295 Residential 0 0 0 0 0 245 524 769 Office/ 0 -0- sq. 91,727 sq. 286,166 2,413,711 sq. Commercial ft. ft. 599,659 1,340,609 95,550 sq. ft. (C) sq. ft. (D) sq. ft. (D) 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.0 and IV.0 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 resolution 2011 -102, the maximum permitted office /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. WHEREAS, 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 shall also have a vested right to develop 94 additional residential units within San Joaquin Plaza, of which 15 currently are not assigned to a specific property within Newport Center and 79 currently are assigned to Anomaly Site No. 43 as un -built hotel rooms. Such 79 hotel rooms shall be converted to 79 residential units and transferred from Anomaly Site No. 43 into the NNCPC and allocated to San Joaquin Plaza subsequent to conversion. WHEREAS, consistent with General Plan Policy LU 6.14.3, the transfer of development intensity is consistent with the General Plan and will not result in any adverse traffic impacts. WHEREAS, The Irvine Company has agreed to provide public benefits as consideration for the Development Agreement, including the following: 1. Provisions for affordable housing pursuant to the proposed NNCPC Amended Affordable Housing Implementation Plan. 2. Payment of Public Benefit Fee for Parks in the amount $26,046.71 for each of the 94 units and shall be payable in full to the City by July 2013. 3. Payment of Public Benefit Fee in the amount of $63,000 for each of the 94 units, for a total of $5,922,000, which may be used for any municipal purpose. 4. Reimbursement of up to $200,000 for costs associated with plans, specifications, permits, and /or construction of the Bayside Drive Walkway Connection, a future connection from an existing public access walkway to the Marine Avenue Bridge. The payment would be payable within 90 days after receipt of written notice from the City that it has awarded a construction contract for the project. WHEREAS, the Planning Commission held a public hearing on July 5, 2012, in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California, at which time the Planning Commission considered all project - related applications, including the amendment to Development Agreement No.2007 -002. A notice of time, place, and purpose of the meeting was duly given in accordance with the Municipal Code. Evidence, both written and oral, was presented to and considered by the Planning Commission at this meeting. At the conclusion of the hearing and after considering the evidence and arguments submitted by the City staff, the Irvine Company, and all interested parties, the Planning Commission adopted a resolution recommending approval of the amendment to Development Agreement No.2007 -002 by majority vote. WHEREAS, the City Council held a public hearing on July 24, 2012, in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, California, at which time the City Council considered all project - related applications, including the 2 amendment to Development Agreement No. 2007 -002. A notice of time, place, and purpose of the meeting was duly given in accordance with the Municipal Code. Evidence, both written and oral, was presented to and considered by the City Council at this meeting, including the evidence and arguments submitted by the City staff, the Irvine Company, and all interested parties. WHEREAS, the City Council has reviewed and considered the information in the Amendment and in the full administrative record, before taking any action approving the Amendment. WHEREAS, in recognition of the significant public benefits that the Amendment provides, the City Council finds that: (1) The Amendment is entered into pursuant to, and constitutes a present exercise of, the City's police power. (2) The Amendment is in the best interests of the health, safety, and general welfare of the City, its residents, and the public. (3) The Amendment is consistent with the General Plan as of the date of this Ordinance. (4) The Amendment ensures that zoning implementation and utilization of the building entitlements applicable to the Property are consistent with the General Plan's standards for land use, housing, circulation, open space, noise, safety, and conservation, and with the General Plan's goals of improving and providing transportation infrastructure, parks, public services, open space, water resources, and environmental resources. (5) Existing utility capacity, circulation infrastructure, and other public services already exist to support development consistent with the development regulations applicable to the Property. (6) The Amendment is consistent with Municipal Code section 15.45.020(A)(2), which requires a development agreement for projects that include a Planned Community Development Plan Amendment and include development of 50 or more residential units. (7) The Amendment is consistent with 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 Amendment is consistent with provisions of state law (California Government Code sections 65864 - 65869.5) and local law (Municipal Code chapter 15.45) that authorize binding agreements that: (i) encourage investment in, and commitment to, comprehensive planning and public facilities financing; (ii) strengthen the public planning process and encourage private implementation of the local general plan; (iii) provide certainty in the approval of projects in order to avoid waste of time and resources; and (iv) reduce the economic costs of development by providing assurance to the property owners that they may proceed with projects consistent with existing policies, rules, and regulations. More specifically, the Amendment is consistent and has been approved consistent with provisions of California Government Code sections 65867 and 65868 and Municipal Code chapter 15.45. (9) The Amendment is consistent with the Final Environmental Impact Report for the City of Newport Beach General Plan 2006 Update (State Clearinghouse No. 2006011119), the Addendum No. 1 to the Final Environmental Impact Report for General Plan 2006 Update (State Clearinghouse No. 2006011119), and Addendum No. 2 to the Final Environmental Impact Report for General Plan 2006 Update (State Clearinghouse No. 2006011119), all of which analyze the environmental effects of the proposed development of the Property. THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1: The Amendment to Development Agreement No. DA2007 -002 is approved and adopted as provided in Exhibit "A." The Mayor is authorized to execute the Amendment, and the City Clerk shall cause a copy to be recorded with the Orange County Recorder. SECTION 2: Up to $500,000 of the Public Benefit Fee for Parks referenced in Section 7 of the Amendment to Development Agreement No. DA 2007 -002 shall be set aside to fund additional improvements and enhancements to the Back Bay View Park; if the additional improvements are not pursued, the City Council may direct the funds to other City parks. SECTION 3: The Mayor shall sign, and the City Clerk shall attest to, the passage of this Ordinance. This Ordinance shall be published once in the official newspaper of the City, and it shall become effective thirty (30) days after the date of its adoption. SECTION 4: This Ordinance shall 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) Planned Community Development Plan Amendment No. PD2012 -001; and (3) Transfer of Intensity No. TD2012 -002. El This Ordinance was introduced at a regular meeting of the City Council held on July 24, 2012, and adopted on August 14, 2012, by the following vote, to wit: AYES, COUNCIL MEMBERS Henn, Rosansky, Hill, Daigle, Selich, Gardner, Curry NOES, COUNCIL MEMBERS None ABSENT, COUNCIL MEMBERS u_ •; ATTEST: Leilani Brown, City Clerk APPR qy-�D AS TO FORM, O��F.G� ORNEY: Aaron Harp, City Attorney 7 25� Iti for the City of Newport Beach 5 SM847676.1 Exhibit "A" Amendment to Development Agreement No. DA2007 -002 DATE: June 25, 2012 TIME: 10:00 AM SD \848171,6 800855 -0000 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 -3884 Attn: City Clerk DRAFT PROPOSED BYIRVINE COMPANY DATE.• June 25, 2012 TIME: 10: 00 AM 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 COWANY 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) SD \848171.6 800855 -0000 n7 r�ra1rr ;7rr�J��y�li7rf7�lldla7�Ti u7rl�I.�iI DATE: June 25, 2012 TIME: 10.00 AM AMENDMENT TO ZONING IMPLEMENTATION AND PUBLIC BENEFIT AGREEMENT THIS AMENDMENT TO ZONING IMPLEMENTATION AND PUBLIC BENEFIT AGREEMENT (the "Amendment") is executed this day of 2012, by and between: (1) CITY OF NEWPORT BEACH ( "City "), and (2) THE IRVINE COMPANY LLC ( "Landowner ") (Landowner and City together shall be referred to as "Parties "). RECITALS 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 bean amendment pursuant to California Govermnent 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 L1), 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 terms of this 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 -2- srn848 rn.6 800855 -0000 DRAFT PROPOSED BY IRVINE COMPANY DATE: June 25, 2012 TIME: 10: 00 AM Newport Center Planned Community through subsequent amendments. The legal 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. 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. 1), 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 , 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. 11. On , 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 [insert date], 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. , finding this Amendment to be consistent with the City of Newport Beach General Plan and approving this Amendment. AGREEMENT -3- SD \848171.6 800855 -0000 DRAFT PROPOSED BY IRVINE COMPANY DATE: June 25, 2012 TIME: 10: 00 AM NOW, THEREFORE, City and Landowner agree as follows: 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 -_, 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 - 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 Housing Implementation Plan shall be deemed to comply with the Inclusionary Housing requirements of Section 19.54.040. 5. Description of Certain Proiect 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 -4- SD \848171.6 800855 -0000 DRAFT PROPOSED BY IRVINE COMPANY DATE: June 25, 2012 TIME: 10 :00 AM with the Traffic Phasing Ordinance relative to potential impacts associated with such change in location." 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 shalt 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 of living 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 1, 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. 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. 9. Expiration, Completion or Exhaustion of Certain Obligations. - 5 - 59,848171.6 800855 -0000 DRAFT PROPOSED BY IRVINE COMPANY DATE: June 25, 2012 TIME: 10: 00 AM 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. 10, "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. 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 Traffr.c Analysis" and dated May 2012, covers all development authorized by this Amendment. -6- SD \848171.6 800855 -0000 DRAFT PROPOSED BY IRVINE COMPANY DATE: June 25, 2012 TIME: 10: 00 AM 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 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. Tenn. The term of this Amendment ( "Tenn ") 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 of Intention 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. 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. - 7 - SD \348171.6 800855 -0000 DRAFT PROPOSED BY IRVINE COMPANY DATE: June 25, 2012 TIME: 10: 00 AM 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 B_ and C are attached to this Amendment and incorporated by this reference as follows: EXHIBIT DESIGNATION DESCRIPTION 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] SD\348171.6 800855 -0000 DRAFTPROPOSED BYI-RVINE COMPA;VY DATE: June 25, 2012 TLYIE: 10: 00 ALI SIGNATURE PAGE TO A�MNDDIENT TO ZONING EVITPLEMENTATION AIND PUBLIC BENE FIT AGREEMENT ATTEST: City Cleric ---)�� \ D AS TO FORIM: -Aaron C. Harp / City Attomey "� �� "LANDOWNER" THE IRVINE COMPANY LLC By: Its: By: Its: "CITY" 9- CITY OF NEWPORT BEACH Im Its: Mayor SD \848171.6 800855 -0000 DRAFT PROPOSED BY IRVINE COMPANY DATE: June 25, 2012 TIME: 10: 00 AM State of California County of Orange On before me, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his /her /their authorized capacity(ies), and that by his/her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) 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 -10- (Seal) SD \848171.6 800855 -0000 State of California County of Orange On appeared before me, DRAFT PROPOSED BYIRVINE COMPANY DATE June 25, 2012 TIME: 10: 00 AM personally who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his/her /their authorized capacity(ies), and that by his/her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) 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 - I I - (Seal) SD\848171.6 800855 -0000 E\HIBIT A: LEGAL DESCRIPTION OF ADDED PROPERTY LEGAL DESCRIPTION Real property in the City ofNewport Beach, County of Orange, State of California, described as follows: Newport Center Block 100. PARCEL I: APi4 442-- ^_31 -02, 442 - 231 -03, 442 ^31 -04, 442 - 231 -05, 442 -- 231 -06, 442- 231 -07, 442- 231 -11 and 442 - 231 -14 Parcels 2 through 7 and °B" as shown on a Parcel Map filed in Book 52, Page 37 of Parcel Maps, together with 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. Newport Center Block 400: PARCEL 1: APN 442 - 082 -05 Parcel I as shown on a Parcel Map filed in Book 61, Page 10 of 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 County Recorder of said Orange County. Newport Center Block 500: PARCEL I: APN 442- 014 -23 Parcel 2 of Parcel Map No. 88 -163 as shown on a map filed in Book 253, Pages 34 and 35 of Parcel Maps, in the Office of the County Recorder of said Orange County. Exhibit A: Neu port Center Block 800: PARCEL 1: APN 442- 262 -03, 442-262-05,442-262-06, 442 - 262 -07, 442-262-08,442-262-09 and 442 - 262 -10. Parcel 1 as shown 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 Plaza 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. �0 LAN D gv�L\ KURT R. o / f " 1 TROXELL 9,11, 7 �/ % t 7854 .S. 7854 Date s> �Q L M: y. I�u; i0I081 "]' :Amie�lcszlsL�evpar.Cti BI«I�.i es Exhibit B Depiction of Added Property C EXHIBIT C 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 I. Introduction .................................................................................................... ..............................1 Background.................................................................................................... ............................... I II. Affordable Housing Plan ................................................................................ ..............................3 ProposedPlan ................................................................................................ ............................... 3 Number of Affordable Units/Income Levels .................................................. ..............................5 Implementation.............................................................................................. ............................... 5 Conclusion..................................................................................................... ............................... 5 III. Consistency with Housing El ement ................................................................ ..............................6 IV. Amendments to the AHIP ............................................................................... ..............................7 V. Authority ......................................................................................................... ..............................7 Figures Exhibit 1 - North Newport Center Planned Community .......................................... ..............................2 Exhibit 2 - The Bays Apartment Complex Locations .............................................. ..............................4 North Newport Center Planned Community i 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 Community 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 [nits 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 (RINA). 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 1/1/06 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 Exhibit 1 - North Newport Center Planned Community North Newport Center Planned Community Affordable Housing Implementation Plan 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 2011. 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 identify 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 3 Affordable Housing Implementation Plan Exhibit 2 - The Bays Apartment Complex Locations North Newport Center Planned Community 4 AUon1abie Housing Implementation Plan HarborMow Fashion Island RED T The Bays Apartment Complex Exhibit 2 - The Bays Apartment Complex Locations North Newport Center Planned Community 4 AUon1abie Housing Implementation Plan The restriction 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 any one building in The Bays. Number of Affordable Units /Income Levels The requirement for affordable housing shall be based on income categories. The 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 traits required under this AHIP will be provided incrementally. The affordable units shall be phased as follows: • Certificate of use and occupancy for 100`h market rate unit / one -third of required units • Certificate of use and occupancy for 200`h market rate unit / one -third of required units • Certificate of use and occupancy for 300`h market rate unit / one -third of required units Affordable housing agreements shall be executed and recorded at each phase 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 the City's Housing Element. North Newport Center Planned Community 5 Affordable Housing Implementation Plan 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: Policy H2.1 Encourage preservationn of existing and provision of new housing affordable to extremely low, very low, low and moderate income households. Program 2.1.2 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 construction 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 industry, with the intent of achieving the Regional Housing Needs Assessment construction goals within six years. Program 2.2.1 Require a proportion of afjbrdable 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. Program 2.2.6 All required affordable units shall have restrictions to maintain their affordability far 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 reports in North Newport Center Planned Community 6 Affordable Housing Implementation Plan the form required by the City. The provision of the affordable housing units will assist the City in meeting the RHNA construction goals. In conclusion, the AMP is consistent with the relevant goals and programs in the City's 2011 General Plan Housing Element. IV. Amendments to the AHIP This AMP 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 AMP has been adopted by the City of Newport Beach per Resolution No. 2012 -65 on the 20, day of July, 2012. North Newport Center Planned Community 7 Affordable Housing Implementation Plan STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH I I, Leilani I. 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 regularly introduced on the 24th day of July, 2012, and adopted 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. aw City Clerk City of Newport Beach, California (Seal) CERTIFICATE OF PUBLICATION STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, LEILANI I. BROWN, City Clerk of the City of Newport Beach, California, do hereby certify that Ordinance No. 2012 -20 has been duly and regularly published according to law and the order of the City Council of said City and that same was so published in The Daily Pilot, a daily newspaper of general circulation on the following dates: 2012. Introduced Ordinance: August 1, 2012 Adopted Ordinance: August 18, 2012 y� � In witness whereof, I have hereunto subscribed my name this �q . day of ' „" -r 4, - I"' U'tl r `' City Clerk City of Newport Beach, California (Seal)