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CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 4
March 13, 2007
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Sharon Wood, Assistant City Manager
949 - 644 -3222, swood @city.newport- beach.ca.us
SUBJECT: Ordinance Amending Chapter 15.45 of the Newport Beach Municipal
Code Regarding Development Agreements
ISSUE:
What kinds of development projects that are proposed pursuant to the 2006 General
`1
Plan should be accompanied by development agreements?
RECOMMENDATION:
Introduce an Ordinance of the City Council of the City of Newport Beach Amending
Chapter 15.45 of the Newport Beach Municipal Code Regarding Development
Agreements, and pass to second reading on March 27, 2007.
DISCUSSION:
The General Plan includes policies requiring development agreements for two types of
projects, those that add new residential units, without replacing other development, in
the Airport Area and Newport Center. The General Plan /Local Coastal Program
Implementation Committee recognized that the City and developers have used
development agreements for various projects over the years, without any legal
requirement (except for timeshare developments) or guidelines from the City Council.
The Committee set the establishment of requirements for development agreements as a
General Plan implementation task.
The attached ordinance amends Chapter 15.45 of the Municipal Code dealing with
development agreements. In addition to the General Plan requirements, the ordinance
requires development agreements in conjunction with certain development projects that
require a legislative act, such as a General Plan amendment or zone change. These
are the cases in which the applicant is making a special request of the City, and where
the City has.the greatest discretion to approve or disapprove an application. In addition,
Ordinance Amending Chapter 15.45 of the Newport Beach Municipal Code
March 13, 2007
Page 2
the applicant is likely to be interested in preserving the development rights established
by the legislative act, as well as currently established fees, over a long period of time. A
development agreement provides that assurance to the applicant in exchange for public
benefits to the City.
The proposed ordinance further defines which projects with legislative acts will require
development agreements as those which include the following: 50 or more residential
units, residential development in the Mariners' Mile corridor, and new non - residential
development in the Airport Area, Newport Center, and on the MacArthur Boulevard
Caltrans parcel. The ordinance provides that a development agreement is not required
for any project that includes remodeling of existing building floor area, with no addition.
Finally, the ordinance provides for the City Council to waive the requirement (except
where it is a General Plan requirement) when the Council finds that the legislative act is
minor, the project provides significant public benefits to the City, or neither the City nor
the developer would benefit from a development agreement.
The General Plan /LCP Implementation Committee reviewed the draft ordinance at its
meetings of February 14 and 28, and recommends that City Council adopt the
ordinance.
Environmental Review:
Adoption of the ordinance is not a project as defined by the California Environmental
Quality Act, since it constitutes general policy and procedure making.
Public Notice:
No notice other than posting of the agenda is required for this action. Copies of this
report and the draft ordinance have been sent to an interest list established for
implementation of the General Plan.
Submitted by:
Sharon Wood
Assistant City Manager
Attachment: Draft Ordinance
COU�N�CI� AGENDA
• ORDINANCE NO. 2007-
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF NEWPORT BEACH AMENDING CHAPTER 15.45
OF THE NEWPORT BEACH MUNICIPAL CODE
REGARDING DEVELOPMENT AGREEMENTS
WHEREAS, the City Council of the City of Newport Beach adopted Ordinance No. 82-
30, adding Chapter 15.45 Development Agreements to the Newport Beach Municipal Code; and
WHEREAS, the City Council approved a comprehensive update to the Newport Beach
General Plan on July 25, 2006, which update was approved by the voters, pursuant to Charter
Section 423, on November 7, 2006; and
WHEREAS, the General Plan allows new land uses and more development than had
previously been allowed on some properties; and
WHEREAS, the City Council recognizes that much of the additional development will
require future legislative changes to the Zoning Code and Coastal Land Use Plan. The City
Council wishes to provide the ability for development allowed in the General Plan and approved
by the voters to be implemented gradually and thoughtfully over an extended period of time, to
provide developers with certainty regarding development impact fees, and to provide a
mechanism for developers who benefit from these protections and the increased development
opportunities to provide additional public benefits to support implementation of the General
Plan;
NOW, THEREFORE, the City Council of the City of Newport Beach hereby ordains as
follows:
SECTION 1: Chapter 15.45 Development Agreements of the Newport Beach Municipal Code is
hereby amended to add a new Section 15.45.020, as follows, and to renumber existing Section
15.45.020 and subsequent sections as 15.45.030 Application and Fees through 15.45.100
Recordation.
15.45.020 Development Agreement Required
A. Development Agreements shall be required in conjunction with City approval of the following
development projects
1. Projects for which a Development Agreement is required per General Plan policy,
or
2. Projects that require a General Plan amendment, Zoning Code amendment or other
legislative act and that have one or more of the following characteristics:
a. Include the development of fifty (50) or more residential units.
b. Include residential development in the Mariners' Mile corridor, as this geographic
area is described in the General Plan Land Use Element.
c. Include new non - residential development in Statistical Area L1 (Newport Center),
Statistical Area L3 (North Ford Area), or Statistical Area L4 (Airport Area). •
B. Notwithstanding the provisions of Section 1.45.020 A, a Development Agreement shall not
be required for a project that includes remodeling of existing building floor area, without the
addition of new floor area.
C. The City Council may waive the requirement for a Development Agreement, except for one
required by General Plan policy, if it finds that the legislative act is of a minor nature, the
project provides significant public benefits to the City, or the nature of the project is such that
neither the City nor the developer would benefit from a Development Agreement.
SECTION 2: If any section, subsection, sentence, clause or phrase of this ordinance is, for any
reason, held to be invalid or unconstitutional, such decision shall not affect the validity or
constitutionality of the remaining portions of this ordinance. The City Council hereby declares that
it would have passed this ordinance, and each section, subsection, clause or phrase hereof,
irrespective of the fact that any one or more sections, subsections, sentences, clauses and
phrases be declared unconstitutional.
SECTION 3: The Mayor shall sign and the City Clerk shall attest to the passage of this
ordinance. The City Clerk shall cause the same to be published once in the official newspaper of
the City, and it shall be effective thirty (30) days after its adoption.
SECTION 4: This ordinance was introduced at a regular meeting of the City Council of the City of
Newport Beach, held on the _ day of , 2007, and adopted on the _ day of l
2007, by the following vote, to wit:
AYES, COUNCIL MEMBERS
NOES, COUNCIL MEMBERS
ABSENT COUNCIL MEMBERS
MAYOR
ATTEST:
CITY CLERK
Authorized to Publish Advertisements of all kinds including public notices by
Decree of the Superior Court of Orange County, California. Number A -6214.
September 29, 1961, and A -24831 June 11, 1961
PROOF OF PUBLICATION
STATE OF CALIFORNIA)
) ss.
COUNTY OF ORANGE )
I am a Citizen of the United States and a
resident of the County aforesaid; I am
over the age of eighteen years, and not a
party to or interested in the below entitled
matter. I am a principal clerk of the
NEWPORT BEACH - COSTA MESA
DAILY PILOT, a newspaper of general
circulation, printed and published in the
City of Costa Mesa, County of Orange,
State of California, and that attached
Notice is a true and complete copy as
was printed and published on the
following dates:
MARCH 31,2007
I declare, under penalty of perjury, that
the foregoing is true and correct.
Executed on MARCH 31,2007
at Costa Mesa, California.
RECEIVED
Zm7 APR I I AM Q 46
mom NO. 2007-6
AN ORDINANCE OF THE
CITY COUNCIL OF THE
CITY OF NEWPORT
BEACH AMENDING
CHAPTER 15.45 OF
THE NEWPORT BEACH
MUNICIPAL CODE RE-
GARDING DEVELOP-
MENT AGREEMENTS.
Subject ordinance was
introduced on the 13th
day of March. 2007, and
was adopted on the
27th day of March,
2007.
AYES, COUNCIL MEM-
BERS: CURRY. SELICH,
MAYOR ROSANSKY,
HENN, DAIGLE. GARD-
NER, WEBB
NOES, COUNCIL MEM-
BERS NONE
ABSENT COUNCIL MEM-
BERS: NONE
ABSTAIN COUNCIL
MEMBERS: NONE
MAYOR: Steven Rosansky
CITY CLERK: LaVonne M.
Harkless
The entire text is avail
able for review in the
City Clerk's office of the
City of Newport Beach.
Published Newport
Beach /Costa Mesa Daily
Pilot March 31, 2007
Sa710