HomeMy WebLinkAbout24 - Transfer of Development Rights - North Newport CenterCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 24
June 9, 2009
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Planning Department
Jaime Murillo, Associate Planner
949 - 644 -3209, Imurillo(nD-city.newport- beach.ca.us
Chris Savan, Planning Technician
949 - 644 -3253, csavan a()city.newport- beach.ca.us
SUBJECT: Transfer of Development Rights in North Newport Center Planned
Community (PA2009 -073)
APPLICANT: The Irvine Company
RECOMMENDATION:
Adopt the attached Resolution approving a transfer of development rights in the North
Newport Center Planned Community, as follows:
1. Transfer 241,711 square feet of general office from San Joaquin Plaza to
Block 600.
2. Transfer 84,911 square feet of general office from Block 500 to Block 600.
DISCUSSION:
Background:
The City Council adopted the North Newport Center Planned Community (PC)
Development Plan, and a Zoning Implementation and Public Benefit Agreement
(Development Agreement) on December 18, 2007. The PC is comprised of four sub-
areas that include Fashion Island, Black 500, Black 600, and San Joaquin Plaza. The
PC Development Plan establishes land use and development regulations for each sub-
area, including specific development limits and a procedure that allows for transfers of
development rights between sub - areas.
Transfer of Development Rights in North Newport Center PC
June 9, 2009
Page 2
The City Council has approved the following two transfers of development rights since
the adoption of the PC and Development Agreement:
1. Resolution No. 2007 -082, approved on December 11, 2007, granted a transfer of
277,161 square feet designated for office, hotel, supporting retail, and City Hall
use from Block 600 to Block 500; and
2. Resolution No. 2008 -072, approved on July 22, 2008, granted a conversion of
72,000 square feet from City Hall to general office use in Block 500 and a
transfer of 24,428 square feet of general office use from Block 600 to Block 500.
The Irvine Company is now requesting a transfer of 241,711 square feet of general
office use from San Joaquin Plaza to Block 600, a transfer of 84,911 square feet of
general office from Block 500 to Block 600, and the re- assignment of 430 residential
units from Block 600 to San Joaquin Plaza.
Analysis:
The PC Development Plan implements General Plan Policy LU 6.14.3 that allows the
transfer of development rights in Newport Center, and provides that development rights
may be transferred through a change in location and/or a conversion of non - residential
use to any other non - residential use allowed by the General Plan or the PC. The
General Plan designates the Block 500, Block 600, and San Joaquin Plaza sub -areas
as Mixed Use Horizontal (MU -H3), which allows regional commercial office uses,
among others. The PC indicates that business, government and professional offices are
permitted uses in all three sub - areas.
The PC Development Plan outlines a procedure for transfers of development rights. A
traffic analysis is required to determine the total number of PM peak hour trips that
would be generated with and without the transfer. If the transfer involves a conversion
from one land use to another, an intensity analysis is required to determine the floor
area that could be developed with and without the transfer. The City Council is to
approve the transfer if it finds that the transfer will result in no more trips or no greater
intensity of land use than development without the transfer.
The proposed transfer does not involve a conversion of land uses; therefore, an
intensity analysis is not required. In order to evaluate the trip generation of the
proposed transfer, the City retained Austin -Foust Associates, Inc. to prepare a traffic
analysis. This firm also performed the traffic studies for the transfers previously
approved by the City Council in December 2007 and July 2008
Transfer of Development Rights in North Newport Center PC
June 9, 2009
Page 3
Traffic Analysis
The attached traffic analysis (Attachment No. 2) finds that 2,328 PM peak hour trips
would be generated by development as approved in July 2008, and 2,290 trips would be
generated by development after the proposed transfer, resulting in a decrease of 38 PM
peak hour trips. The report states that the decrease of PM peak hour trips is attributable
to the fact that the larger office complexes permitted in Block 600 generate fewer trips
per TSF [1,000 square feet] than the smaller office complexes remaining in San Joaquin
Plaza after the transfer. Also, the analysis finds that there is no change in the circulation
pattern since motorists will not materially alter their travel pattern between two adjacent
blocks. Since there is not an increase in PM peak hour trips nor a change to traffic
circulation, the City Traffic Engineer determined no adverse traffic impacts will result
from the transfer; therefore, a new traffic study is not required to be prepared pursuant
to the City's Traffic Phasing Ordinance (TPO).
Residential Units — Location Change
The Development Agreement granted The Irvine Company development rights to 430 of
the 450 residential units allocated in the General Plan for MU -113 properties in Newport
Center. Although the PC Development Plan and the Development Agreement permit the
development of the 430 residential units within either Block 500, Block 600, or San
Joaquin Plaza, the traffic study prepared in conjunction with the Development
Agreement anticipated the units to be constructed within Block 600. Furthermore,
Section 6.3 of the Development Agreement states that should The Irvine Company
desire to develop any of the residential units in Newport Center Block 500 or San
Joaquin Plaza, compliance with the TPO is required relative to potential impacts
associated with such change in location.
The traffic analysis prepared by Austin -Foust Associates, Inc. found that the proposed
change in location of the residential units is a straightforward shift of units from Block
600 to San Joaquin Plaza and does not result in any change to the PM peak hour trip
generation (trip neutral). The City Traffic Engineer acknowledges that the assignment of
the residential units to San Joaquin Plaza is in compliance with the TPO based on the
information provided in traffic analysis.
Environmental Review:
Approval of a transfer of development rights in the North Newport Center PC is a
ministerial action, exempt from CEQA, if the City Council finds that the transfer will not
result in more trips and greater intensity of land use than the development allowed
without the transfer. The analysis in this report provides the basis for making these
findings.
Transfer of Development Rights in North Newport Center PC
June 9, 2009
Page 4
Public Notice:
No notice is required for this action other than posting of the agenda pursuant to the
Brown Act.
Prepared by:
Jaime Murillo, Associate Planner
Submitted By:
Sharon Wood, A stan ity Manager
Attachments: 1. Draft Resolution
2. Traffic Analysis from Austin -Foust Associates, Inc.
ATTACHMENT 1
Draft Resolution of Approval
RESOLUTION NO. 2009-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH APPROVING THE TRANSFER OF
DEVELOPMENT RIGHTS IN THE NORTH NEWPORT
CENTER PLANNED COMMUNITY (TD 2009 -001, PA 2009-
073)
WHEREAS, The Irvine Company has applied to the City of Newport Beach for
approval of a transfer of development rights as follows:
(1) The transfer to North Newport Center Block 600 of development rights
for development of 241,711 square feet currently assigned to San Joaquin
Plaza.
(2) The transfer to North Newport Center Block 600 of development rights
for development of 84,911 square feet currently assigned to North
Newport Center Block 500.
WHEREAS, The Irvine Company has also proposed to re- assign 430 residential
units previously approved in North Newport Center Block 600 to San Joaquin Plaza.
WHEREAS, General Plan Policy LU 6.14.3 permits development rights to be
transferred within Newport Center as long as the transfer is consistent with the intent of
the General Plan and will not result in any adverse traffic impacts.
WHEREAS, the North Newport Center Planned Community Development Plan
provides that the City Council shall approve a transfer of development rights if it finds
that the transfer will result in no more trips and no greater intensity of land use than the
development allowed without the transfer.
WHEREAS, the Zoning Implementation and Public Benefit Agreement
(Development Agreement) granted The Irvine Company development rights to 430 of
the 450 residential units allocated in the General Plan for MU -H3 properties in Newport
Center.
WHEREAS, the North Newport Center Planned Community Development Plan
and the Development Agreement permit the development of the 430 residential units
within either Block 500, Block 600, or San Joaquin Plaza; however, the traffic study
prepared in conjunction with the Development Agreement anticipated the units to be
constructed within Block 600.
WHEREAS, Section 6.3 of the Development Agreement states that should The
Irvine Company desire to develop any of the residential units in Newport Center Block
500 or San Joaquin Plaza, compliance with the Traffic Phasing Ordinance is required
relative to potential impacts associated with such change in location.
1
WHEREAS, a traffic analysis entitled North Newport Center Transfer of
Development Rights (Austin -Foust Associates, Inc., June 3, 2009) was prepared for the
application for the transfer of development rights in compliance with General Plan Policy
LU 6.14.3 and the North Newport Center Planned Community Development Plan.
WHEREAS, the traffic analysis found that, consistent with General Plan Policy
LU 6.14.3 and the North Newport Center Planned Community Development Plan, the
transfer of development rights will not result in any adverse traffic impacts.
WHEREAS, the traffic analysis found that, consistent with Section 6.3 of the
Development Agreement, the proposed change in location of the residential units from
Block 600 to San Joaquin Plaza does not result in any change to the PM peak hour trip
generation (trip neutral) and is not expected to change the resulting trip patterns;
therefore, the City Traffic Engineer has determined that a new traffic study is not
required to be prepared pursuant to the City's Traffic Phasing Ordinance.
WHEREAS, the transfer of development rights does not involve a conversion of
land uses and will not result in greater intensity than development allowed without the
transfer.
WHEREAS, the City Council considered the application at a public meeting on
June 9, 2009, in the City Hall Council Chambers, 3300 Newport Boulevard, Newport
Beach, California, at which time the City Council considered the transfer of development
rights and the traffic analysis.
WHEREAS, the City Council finds that:
(1) Consistent with General Plan Policy LU 6.14.3 and the North Newport
Center Planned Community Development Plan, the transfer of
development rights will not result in any adverse traffic impacts, as
documented in the traffic study.
(2) Consistent with General Plan Policy LU 6.14.3 and the North Newport
Center Planned Community Development Plan, the transfer of
development rights will not result in greater intensity than that which is
allowed without the transfer, and is consistent with the intent of the
General Plan.
(3) Consistent with Section 6.3 of the Development Agreement, the
proposed change in location of the residential units from Block 600 to San
Joaquin Plaza does not result in any change to the PM peak hour trip
generation (trip neutral) and is not expected to change the resulting trip
patterns, as documented in the traffic analysis, and does not warrant the
preparation of a new traffic study pursuant to the Traffic Phasing
Ordinance.
2
NOW, THEREFORE, BE IT RESOLVED that the City Council approves the
transfer of development rights (TD 2009 -001, PA 2009 -073), based on the weight of the
evidence in the administrative record, including the traffic and intensity studies.
PASSED AND ADOPTED on the 9th day of June, 2009, by the following vote, to
wit:
AYES, CITY COUNCIL MEMBERS
NOES, CITY COUNCIL MEMBERS
ABSENT, CITY COUNCIL MEMBERS
MAYOR
ATTEST:
CITY CLERK
ATTACHMENT 2
Traffic Analysis from Austin -Foust Associates, Inc.
City of Newport Beach
NORTH NEWPORT CENTER TRANSFER OF DEVELOPMENT RIGHTS
Between Blocks 500, 600 and San Joaquin Plaza
PM Peak Hour Trip Analysis
Prepared by:
Austin -Foust Associates, Inc.
2223 Wellington Avenue, Suite 300
Santa Ana, California 92701 -3161
(714) 667 -0496
1 No.
8Y
Of
June 3, 2009
NORTH NEWPORT CENTER TRANSFER OF DEVELOPMENT RIGHTS
Between Blocks 500,600 and San Joaquin Plaza
Traffic Analysis
The Irvine Company (TIC) is proposing a transfer of previously entitled office and residential
development rights within three blocks of the North Newport Center Planned Community (see Figure 1)
as permitted by the Planned Community Development Plan (PC Document) and the development
agreement. This transfer involves the following:
Existing Entitlement Location
Transferred Entitlement Location
Block 500 — 85,756 sf office
Block 600 + 85,756 sf office
San Joaquin Plaza- 241,711sfoffice
I Block 600 +241,711sfoffice
Block 600 — 430 dwelling units (D
San San Jo uin Plaza + 430 DU
The PC Document and development agreement provide for such a transfer under the condition
that the resulting PM peak hour trips remain no higher than existing entitlement (i.e., trip neutrality). This
traffic study examines that trip neutrality requirement.
ANALYSIS
At first glance, it would appear that since neither the entitled total square footage of office nor
number of residential dwelling units is changing, the PM peak hour trips would remain the same thereby
creating, no increase, or possibility even a reduction in trips. Demonstrating trip neutrality requires a
more detailed analysis and explanation.
First is the matter of office trip rates. The rates are not constant but vary as a function of the size
of the complex. Trip rates are reduced as the size of the office complex increases. The Institute of
Transportation Engineers (ITE) reports an average PM peak hour trip rate of 1.49 trips per TSF but the
actual rate varies from as low as 1.12 for larger complexes over 1,000,000 sf.
When the total square feet of offices in Block 600 is examined, it is noted that the proposed office
exceeds the existing square footage by 12,033 sf. Of this amount 5,572 sf represents a square footage that
may be utilized if a traffic analysis determines there will be no adverse impacts.
North Newport Center Transfer of Development Rights 1 Austin -Foust Associates, Inc.
Between Blocks 500, 600 and San Joaquin Plana 017085rpt.doc
Figure t
GENERAL PROJECT DISTRIBUTION
- OFFICE
Austin -Foust Associates, Inc.
Ot7085rptFigl.dwg
The PM peak hour trip generation for both existing and proposed conditions was determined
through use of ITE's office regression equation, as had been done previously for North Newport Center,
with one exception. As part of the transfer of 241,711 sf of office from San Joaquin Plaza to Block 600,
an equivalent amount of existing office will be demolished. A total of 95,550 sf of existing offices will
remain after the tear down of 241,711 sf of existing offices in San Joaquin Plaza. No change to the
remaining 95,550 sf of office use is expected. Based on ITE trip generation studies, it is more appropriate
to use the average ITE PM peak hour rate of 1.49 trips per TSF for the remaining 95,550 sf of office.
In looking at the three individual blocks, Blocks 500, 600 and San Joaquin Plaza one reaches the
conclusion there is a net reduction of 38 PM peak hour trips with some changes within each block. Table
1 illustrates a comparison of PM peak hour trips under existing office development entitlements as well as
the proposed transfer. As is noted, the total PM trips are reduced by 38. Table 1 calculates the office
trips based upon the actual size of the complex in each block using ITE's office regression equation. (T =
1.12(x) + 78.81 where T = total PM peak hour trips and x is the office size in TSF).
Table 1
COMPARISON OF BEFORE AND AFTER TRIP GENERATION
Existing Office Entitlement
Proposed Office Development
Block
Square Feet
PM Peak Hour Trips
Square Feet
PM Peak Hour Trips
500
612,273
765
526,517
669
600
917,098
1,106
1,250,137'
1,479
San Joaquin Plaza
337,261'
457
95,550
142*
TOTAL
2,328
2,290
Include 5,572 sf of office in Block 600
* Using ITE average rate PM peak hour = 1.49 trips per TSF.
The issue of trips attributable to the transfer of 430 residential units is a straightforward shift of
430 dwelling units in Block 600 for a like number in San Joaquin Plaza involving the same number of PM
peak hour trips.
The final issue is the question of "Do these transfers cause any changes in the total traffic
circulation pattern?" Analysis of the transfers, both office and residential reveals no changes that might
effect the trip distribution or assignment. Motorists will not materially alter their travel patterns as a
result of a sample shift of their origin or destination between two adjacent blocks situated in Newport
Center between San Joaquin Hills Road and Newport Center Drive.
North Newport Center Transfer of Development Rights 3 Austin -Foust Associates, Inc.
Between Blocks 500, 600 and San Joaquin Plaza 017065rptdoc
CONCLUSION
In summary, it is the finding of this traffic analysis that the proposed transfer of existing TIC
office and residential development entitlement between Blocks 500, 600 and San Joaquin Plaza does in
fact result in an overall reduction in the future traffic generated by previously approved office
development program. This reduction (a net of 38 PM trips) is a result of the fact that larger office
complexes generate less trips per TSF than smaller ones. This fact is demonstrated in ITE's office
regression equation. In addition, the resulting trip patterns are expected to remain unchanged.
North Newport Center Transfer of Development Rights 4 Austin -Foust Associates, Inc.
Between Block, 500, 600 and San Joaquin Plaza 017085rpt.doe