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HomeMy WebLinkAbout22 - Mesa-Birch Parcels in Santa Ana HeightsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 22 July 13, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, Assistant City Manager 949/644 -3002 or dkiff @city.newport- beach.ca.us SUBJECT: Mesa -Birch Parcels in Santa Ana Heights ISSUE: Should the City Council take a position on whether two parcels at the corner of Mesa Drive and Birch Street are sold by the Orange County Development Agency (OCDA) for parking uses or whether they should remain open space, with the future possibility of the parcels becoming a small park? RECOMMENDATION: Authorize the Mayor to send a letter to Supervisor Silva advocating that the Orange County Development Agency (OCDA) use two parcels in Santa Ana Heights for passive parkland and stating the City's willingness to maintain the park if the OCDA plans and constructs it. DISCUSSION: Background: The Santa Ana Heights region is within a redevelopment area, which means that property taxes generated above a certain "base year' are allocated according to a "redevelopment plan" to both remove blight within the Santa Ana Heights neighborhood and to provide low- and moderate - income housing in the region. The County of Orange administers the redevelopment area via its Orange County Development Agency (OCDA). Like any redevelopment area, Santa Ana Heights has a Specific Plan (which shows zoning and land uses) and a Redevelopment Plan (which is a broader document that governs future development in the area). The City adopted the Santa Ana Heights Specific Plan when the City annexed the eastern Santa Ana Heights area effective July Mesa -Birch Parcel in Santa Ana Heights July 13, 2004 Page 2 1, 2003. The Redevelopment Plan yields to the General Plan of the County and of the City where noted in the Redevelopment Plan. Santa Ana Heights has limited park space, excepting the large expanse of the Upper Newport Bay Nature Preserve and the roughly 2 -acre "Bayview Park" at the easternmost end of Mesa Drive. Almost ail of the Birch Street and Acacia Street area of SAH is zoned "Business Park" in the Specific Plan. In recent years, many of the non - conforming uses (single- and multi- family residences) along Birch Street and Acacia Street have been replaced by modern office structures. The Business Park designation was part of an effort to reduce residential uses that are subjected to significant noise from John Wayne Airport. The southeast corner of Mesa Drive and Birch Street is also zoned "BP" and is also slated for development. Two parcels at the corner (APNs 439 - 381 -02 and 439 - 381 -01 or 2081 Mesa Drive) are today owned by the OCDA. These parcels are highlighted below: Mesa -Birch Parcels Mesa -Birch Parcel in Santa Ana Heights July 13, 2004 Page 3 The OCDA staff has been negotiating with Newport Executive Corporation, LLC, to sell these parcels to NEC so that NEC can develop a planned office structure at 20412, 20412, and 20392 Birch Street. The two OCDA -owned parcels would be used for street -level parking (about 30 spaces) for the NEC office building. According to OCDA staff, the proposed sale price for the two OCDA -owned parcels is $550,000. If the parcels are sold to NEC, the $550,000 would go into the OCDA's accounts for capital improvement projects in and around Santa Ana Heights. The two OCDA parcels cannot be built upon, but they can have street -level parking. The Board of Supervisors of the County of Orange (acting as directors of the OCDA) will consider entering into an Owner Participation, Property Disposition, and Development Agreement with Newport Executive Corporation at the Directors' meeting on Tuesday, July 20, 2004. Following the Directors' adoption of the Agreement, the parcels will enter escrow. The Santa Ana Heights Project Advisory Committee (PAC) has corresponded both with the County and with the City to ask that the parcel NOT be used for parking associated with the NEC development. Instead, the PAC has asked that the parcels be used for a "passive park." The City has received several a -mails to this effect. County staff tell us that the parking for the development, if not used on the two OCDA- owned parcels, could be replaced by parking underneath the proposed structure at 20412 -20392 Birch. Adding underground parking, however, would increase the cost of the office building. If the roughly 1 -acre of land were to be used as a park, OCDA could fully fund the park's planning and development. Maintenance would have to be the City's obligation. According to Mr. Niederhaus, park maintenance costs for a passive park are roughly $6,000 per year per acre. A park would be consistent with both the Specific Plan and the Redevelopment Plan, since the plans read as follows: Specific Plan - Business Park Zoning allows for: • Civic and Governmental Uses; and • Any other similar use which the Planning Commission finds consistent with the purpose and intent of this district. The purpose and intent of the Specific Plan includes giving attention to the protection of adjacent residential uses via landscape buffers among other things. Redevelopment Plan - Section VI B.2 (604) provides that The Agency may establish park and recreational facilities in any part of the Project Area Mesa -Birch Parcel in Santa Ana Heights July 13, 2004 Page 4 The City's Role. Because we do not administer the redevelopment agency, we can merely be an advocate for or against certain land uses in the Project Area. If OCDA chooses to go forward with the NEC Agreement, the City's Planning Department would process the developer's application just as it would any other application. PAC members argue that the parking proposed for NEC's overall development concept (including 20412 -20392 Birch) is not necessary given the underground parking option. They also argue that the OCDA has enough revenue in its accounts both to fund the park construction and to not receive $550,000 for the parcels' purchase. As such, there is little harm in suggesting to the County that it save these parcels for the passive park uses suggested by PAC. Committee Action: The Santa Ana Heights Project Advisory Committee (PAC) supports the same position recommended by this staff report. Environmental Review: The City Council's approval of this Agenda Item does not require environmental review. Public Notice: This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Funding Availability /Potential Future General Fund Impact: Funding for capital projects like park development in Santa Ana Heights is available within the OCDA's annual allocations of tax increment. Should OCDA honor the City's request to hold the site for the future development of a passive park, and if a park was developed on the lots, the City would be responsible for funding the park maintenance and enforcement costs. Redevelopment funds are not allowed to be used for these purposes. General Services today estimates this amount to be roughly $6,000 per year. Submitted by: Dave Kiff Assistant City Manager "RECEIV D A ER AGENDA PRINTED:" Hi Homer, Dave and Gary I just talked to Jim Silva. He is headed for New York to talk about bond issues. My conversation with him touched on several issues, including our potential Mesa /Birch Passive Park. He wanted me to relay to you that if the City of Newport Beach Council adopts the staff recommendation tomorrow night to support this Park, that he would be willing to champion our cause to the Board of Supervisors. I am to report back to him upon his return regarding this issue. I know from past conversations with him, that he was somewhat reluctant to offer his support and I think you folks have experienced the same. With the PAC and community support and, hopefully, the City of Newport Beach, he is willing to reconsider this issue and offer his support. I am hopeful that the staff recommendation and the Council will also support our community on this issue. Regards, Roger C. Summers PAC Chairman - - - -- Original Message---- - From: linda wooters [ mailto:lwooters(o)adelphia. net ] Sent: Monday, July 12, 2004 9:23 PM To: dkiff@city.newport- beach.ca.us Subject: Stop the parking lot on Mesa /Birch Dear Mr Kiff, I live in East side Santa Ana Heights ( Bayview Heights) and want you to know that as a tax payer in the area I am opposed to a parking lot on the corner of Mesa /Birch. This is to vacant lot where our community signage is located. This is the entrance of our residential neighborhood. This area has already been negatively impacted by an expanded airport and business park. We do not need any more encroachment of the business park. A passive park would be a better fit for the location as it creates an natural buffer from the business district and a great entrance into a residential area. We have some wonderful large estates in this area and potential for some major remodel improvements. A beautiful entry way can help encourage this and in turn create more tax revenue. On the other hand. I don't see how a parking lot can do any thing to improve property taxes. Please take this into consideration. Sincerely, Linda Wooters - 20442 Bayview Ave. Newport Beach, CA 92660. - - - -- Original Message---- - From: Cheryl Schmitz [ mailto:caschmitz @sbcglobal.net] Sent: Friday, July 09, 2004 7:55 PM To: dkiff @city.newport- beach.ca.us Subject: Vaccant lot I have been a resident of Santa Ana Heights for 36 years. My husband has been a resident for 50 years. Lots of changes in those years some good some not so good! As far as a parking lot on the cornor of Mesa and Birch I dont' see the purpose of it. All the commerical buildings have their own parking. I would rather see a green belt there. If your offering that area as a staging area for horse trailers for the purposed arena down the channel, hopefully the design could be some what attractive. Thanks for listening -Cheryl Schmitz - - - -- Original Message---- - From: Deborah Hicks [mailto:chzpuffasbcalobal net] Sent: Sunday, July 04, 2004 12:54 PM To: dkiff @city.newport- beach.ca.us Subject: Dear Mr. Kiff: As a longtime resident of Santa Ana Heights I have watched a charming community lose its area to more and more office buildings, many of which are far from filled. The city, by annexing our neighborhood into the City of Newport Beach, now has access to redevelopment funds, previously unavailable to it. The entrance to our neighborhood is the last place we need another parking lot. A lovely bit of green, in the form of a small park would be much preferable to more asphalt. Please use more common sense when addressing this issue. You certainly wouldn't mark the entrance to Harbor Ridge with a parking lot, now would you? It is my understanding that when a developer puts up an office building, the parking must be sufficient for that structure. If this is not the case, perhaps we have enough office buildings, and we should look into the permits being handed out for these buildings. A parking lot in the middle of Birch Street doesn't make much sense. Sincerely yours, Deborah Hicks 20452 SW Cypress Street Newport Beach - - - -- Original Message---- - From: Linda Clemens [mailto:lacg @adelphia.net] Sent: Saturday, July 03, 2004 8:58 PM To: dkiff @city.newport- beach.ca.us Subject: I don't want a parking lot at Mesa & Birch Mr. Kiff- I'd like to voice my objection to the proposed parking lot at Mesa & Birch. Come on! We've had to put up with weeds on that lot for years and now you want us to have to look at a parking lot. We already have office buildings all around us and now you are proposing that we look at a parking lot when we turn into our neighborhood. Why can't we have something beautiful to look at as we drive to our homes like the folks who live in Newport Coast, One Ford Road or Big Canyon? We deserve it just like they do. My family doesn't want a parking lot on that vacant lot. I vote for trees and grass. Linda Giedt 2335 Bay Farm PI Newport Beach, CA 92660 From: Stoaks_Tim [ mailto :Stoaks_Timothy @Allergan.com] Sent: Friday, June 25, 2004 1:39 PM To: garold_adams @hotmail.com Subject: NO Parking At Bayview Heights{ Mesa Dr/ Birch] Mr. Adams, I urge you not to approve a parking lot at the corner of Birch and Mesa Dr. We already have to much un -used parking lots across the street from this location. I would be in favor of reducing the developers parking requirements and reducing the amount of square footage that that developer property will build. As it stands, I don't thing the site plan that the developer would have would remotely encourage the use of that area for parking anyway. It would just be a paved eye sore to the entrance to our neighborhood. How can we help you to object to this? Thank you, Tim Stoaks Dr. Kathleen M. Campbell 2181 Mesa Dr. Newport Beach, Ca 949 - 752 -7750 - - - -- Original Message---- - From: anne ima [mailto:anneima @yahoo.com] Sent: Monday, June 28, 2004 5:13 PM To: dkiff @city.newport- beach.ca.us Cc: hbludau @city.newport- beach.ca.us; michelle.grettenberg @ocgov.com; jhff @aol.com; nbcouncil @ranichols.info; dandee @earthlink.net; garold_adams @hotmail.com; don2webb @earthlink.net; parandigm @aol.com; tridgeway @city.newport- beach.ca.us Subject: Santa Ana Heights Parking Lot Project To Whom it May Concern: My family and I have recently been informed of a proposed parking lot project on the corner of Birch and Mesa Drive in Newport Beach. Please don't let this parking lot happen! We need to utilize that area for a green belt or a park, not another unsightly parking lot. This is the entrance to our neighborhood, and my neighbors and my family would really love to see the weeds and dirt gone and put a green belt or park in its place. Thank you, The Ima Family 20461 Bayview Ave. Newport Beach