HomeMy WebLinkAbout19 - Request for ContinuanceTHE NEW
HOME
COMPANY
February 10, 2012
Kimberly Brandt, AICP, Director
City of Newport Beach
Community Development Department
3300 Newport Blvd.
Newport Beach, CA 92663
RECEIVED
612 FEB 10 °M 2: 17
C ICE OF
THE CITY CLERK
CITY C= -C ,IT BEACH
Re: Santa Barbara Condominiums: Affordable Housing Implementation Plan and
Memorandum of Agreement (MOA)
Dear Ms. Brandt:
This letter serves as a request from The New Home Company for a continuance to the above
reference agenda item to the February 28th City Council hearing.
Sincerely,
The New Home Company, Southern California LLC
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By: 41�' Date:
Name: O'er
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NEWPORT BEACH
City Council Staff Report Agenda Item No. 19
February 14, 2012
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Community Development Department
Kimberly Brandt, AICP, Director
949 -644 -3226, kbrandt @newportbeachca.gov
PREPARED BY: Jaime Murillo, Associate Planner
APPROVED.: __ .vl� �.
TITLE: Santa Barbara Condominiums: Affordable Housing Implementation
Plan and Memorandum of Agreement
900 Newport Center Drive (PA2012 -012)
ABSTRACT:
An amendment to an Affordable Housing Implementation Plan (AHIP) to allow the
payment of in -lieu housing fees to satisfy the affordable housing obligations of the
previously approved 79 -unit Santa Barbara Condominium Project located at 900 Newport
Center Drive. The request also includes a Memorandum of Agreement (MOA) between
the City of Newport Beach and the new applicant, New Home Company Southern
California, LLC, specifying the payment of public benefits fees, phasing of development of
the property, and waiving a requirement that the parties enter into a development
agreement.
RECOMMENDATION:
Adopt Resolution No. 2012 -_19 (Attachment A) approving
1. An amendment to an Affordable Housing Implementation Plan for the Santa
Barbara Condominiums Project (Exhibit 1 of Attachment A); and
2. A Memorandum of Agreement between City of Newport Beach and New Home
Company Southern California, LLC (Exhibit 2 of Attachment A); and
3. A waiver of a requirement for a development agreement; and
4. Rescindment of Resolution No. 2007 -058.
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900 Newport Center Drive (PA2012 -012)
February 14, 2012
Page 2
FUNDING REQUIREMENTS:
There is no fiscal impact related to this item. However, approval would lead to the future
payment of in -lieu housing fees (approx. $1.6 million) to be paid into the Affordable
Housing Fund and payment of a Public Benefits Fee ($5 million) to be paid into the
General Fund.
BACKGROUND:
/_\.II-.FR TO .
On January 10, 2006, the City Council approved Resolution No. 2006 -2 permitting the
development of 79 condominiums on a 4.25- acre -site that is presently developed with
an outdoor tennis complex operated by the Newport Beach Marriot Hotel located at 900
Newport Center Drive (Attachment B- Vicinity Map). The Resolution included the
following condition with regard to affordable housing:
Condition No. 5: The applicant shall provide a minimum of 20% of the total units (16
units) for affordable income households in accordance with Housing Programs 2.2.1 and
2.2.3 of the Newport Beach Housing Element. The applicant shall enter into an
agreement with the City to provide said units, which units may be provided off -site, at an
approved location within the City. These units shall be identified in the agreement and
constructed and completed prior to the issuance of any certificate of occupancy for the
project. The agreement shall be reviewed and approved by the City Attorney and shall
be executed and recorded prior to the recordation of the final tract map or the issuance
of a building or grading permit for the proposed subdivision.
Subsequent to the approval of the Santa Barbara Condominiums project (during which
time the applicant was seeking California Coastal Commission approvals), the City
adopted a new Housing Element as part of the General Plan update in 2006. Because
of the opportunities for housing development that were added to the Land Use Element,
the Housing Element was changed to set a goal of 15% of all new units to be affordable,
and to require that an AHIP be prepared for projects with more than 50 units. As a result
of the change in the affordable housing goal, the applicant prepared an AHIP (Exhibit 1
of Attachment C) that was in compliance with City's new housing goal and met the
intent of Condition No. 5 of the project approval. The AHIP included the purchase and
recordation of covenants that would restrict the occupancy of an existing; market -rate,
12 -unit apartment complex to qualifying moderate- income households. The AHIP was
approved by the City Council on August 14, 2007, per Resolution No. 2007 -058
(Attachment C).
Memorandum of Understanding (MOU) Background
In addition to amending the Housing Element during the time that the Santa Barbara
project was before the Coastal Commission, the City Council adopted an amendment to
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900 Newport Center Drive (PA2012 -012)
February 14, 2012
Page 3
the Municipal Code regarding development agreements as one of the many means of
implementing the updated General Plan. Development agreements are now required for
projects that require a legislative act (i.e. General Plan amendment, Coastal Land Use
Plan amendment, or Zoning ordinance change) and include more than 50 residential
units. Although local approvals were completed prior to this policy being implemented,
the project met this requirement as a result of the Coastal Commission approval of the
project that required the City to amend the Coastal Land Use Plan (CLUP). The CLUP
amendment added CLUP Policy 2.3.1 -8 requiring that a five million dollar mitigation fee
be paid to the Coastal Commission. As a result, a Memorandum of Understanding
(MOU) was prepared between the City and Lennar Homes (previous applicant)
establishing an agreement (Exhibit 2 of Attachment C) that a development agreement
would be prepared expeditiously and outlines the provisions to be included in the
development agreement. Those provisions included:
1. Payment of a five million dollar ($5,000,000) Public Benefits Fee to the City. This
amount is in addition to the five million dollar mitigation fee imposed by the
Coastal Commission.
2. Expedited review the Affordable Housing Agreement to implement the AHIP, and
expedited review of development plans for the project; and
3. City development approvals will be vested for five years.
The MOU was also adopted by the City Council on August 14, 2007, per Resolution No.
2007 -058 (Attachment C). Discussion on the use of the Public Benefits Fee was
continued to the September 11, 2007, City Council agenda, at which time the City
Council voted to postpone a decision regarding allocation of the funds until after the
approval of the development agreement (Attachment D). To this date, a development
agreement has not been prepared.
Amendment to AHIP
The original applicant, Lennar Homes, no longer controls the project and New Home
Company Southern California, LLC (New Home) is under contract to purchase the
property and develop the project. New Home states that negotiations with the owner of
the 12 -unit apartment complex to purchase and record affordability covenants failed.
New Home believes that it is not possible to implement the AHIP as previously
structured. Therefore, New Home is proposing a revised AHIP (Exhibit 1 of Attachment
A) that would allow for the payment of in -lieu housing fees. Payment of in -lieu housing
fees for projects of more than 50 units is permissible subject to the approval of an AHIP
pursuant to Municipal Code Chapter 19.54 (Inclusionary Housing). The in -lieu housing
fee is currently $20,544 per unit and increases annually based on the percentage
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900 Newport Center Drive (PA2012 -012)
February 14, 2012
Page 4
change in new home prices for Orange County. The in -lieu housing fee will be paid at
the rate in effect upon the issuance of each building permit for each unit within the
project.
Pursuant to Section 19.54.070.D of the Municipal Code, the City Council may approve
or conditionally approve an AHIP that proposes alternative means of compliance with
on -site construction requirements of the Chapter after first making the following findings:
1. The purpose of the chapter would be served by the implementation of the proposed
alternative;
2. The units provided are located within the City and are consistent with the requirements
of this chapter, and
3. It would not be feasible or practical to construct the units on -site.
Acceptance of in -lieu housing fees will shift the responsibly of providing the units to the
City. The City would be required to utilize the fees to construct, convert or preserve
affordable housing units within the City. However, acceptance of the fees would permit
the City to exercise its discretion to direct the funding of affordable units in the City in a
manner consistent with the requirements of Chapter 19.54 of the Municipal Code and
more effectively accomplish the goals and objectives set forth in the Housing Element,
and support the required findings as follows:
The City could partner with an affordable housing developer and leverage the in-
lieu housing funds with other sources to construct or convert units for a deeper
affordability level (i.e. lower- income households) in the City. Through this
scenario, the City may also receive credit under the City's Regional Housing
Needs Allocation (RHNA), whereas the units provided under the original AHIP
would not be eligible as they were only moderate - income units and not lower -
income.
The City's Affordable Housing Fund currently has a balance of $1.5 million, which
is an amount that has been insufficient to assist in the development of any
sizable affordable housing projects proposed to the City. The proposed AHIP
could generate an additional $1.2 million in the Affordable Housing Fund,
creating a larger fund that would be awarded to an affordable housing developer
and increase a project's feasibility within the City.
When the project was originally approved, it was determined that providing the
required affordable units on -site would not be feasible or practical given the size,
scope, design, site configuration, and location of the proposed project.
a
900 Newport Center Drive (PA2012 -012)
February 14, 2012
Page 5
Memorandum of Agreement (MCA)
The proposed MCA (Exhibit 2 of Attachment A) establishes the City's and the
applicant's agreement to: 1) amend the previously approved AHIP; 2) replace and
supersede the prior MOU; and 3) waive the requirements of a development agreement.
In exchange, the applicant will provide the following Public Benefits Fee:
e Public Benefits Fee- The applicant shall pay to the City a Public Benefits Fee of
$63,291 per unit ($5,000,000 total) which shall be used by the City to fund
projects for the benefit of the public. The fee would be deposited into the General
Fund with no other restrictions on use. The fee shall be paid upon the issuance
of each certificate of occupancy for each unit.
The MCA also authorizes the City to issue separate permits for each building and phase
of the project, and authorizes the establishment of a temporary sales trailer. The term of
the MCA is for a period of ten years from the date the applicant assumes fee title
ownership of the property. The MCA also includes provisions for payment of in -lieu park
fees, as required per the Municipal Code.
Waiver of Development Agreement
Pursuant to Section 15.45.020.0 of the Municipal Code, the City Council may waive the
requirement for a development agreement, 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. As discussed above, the applicant has agreed to provide the City with a $5
million Public Benefits Fee, which may be used by the City for any projects that benefit
the City, in addition to the housing and park fees. Also, since the applicant is not
seeking vesting of development rights, the City nor the applicant would benefit from a
development agreement.
ENVIRONMENTAL REVIEW:
A Mitigated Negative Declaration (SCH No. No. 2005 - 071067) was prepared for the
proposed project in accordance with the implementing guidelines of the California
Environmental Quality Act (CEQA). The document was made available for public review
and comment during a 30 -day review period from July 15 to August 15, 2005 and
subsequently approved by the City Council on January 10, 2006. The document is on
file with the Community Development Department. A subsequent mitigated negative
declaration for the project is not required to be prepared pursuant to CEQA Guidelines
Section 15162 because the amended AHIP and MOA do not constitute "substantial
changes" to the project that would involve new significant environmental effects or result
in additional mitigation measures.
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900 Newport Center Drive (PA2012- 0'12.)
February 14, 2012
Page o
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item). Notice of this agenda item
was also published in the Daily Pilot, mailed to property owners within 300 feet of the
property and posted at the site a minimum of 10 days in advance of the meeting.
Additionally, the item appeared upon the agenda for this meeting, which was posted at
City Hall and on the City website.
Submitted by:
Kimberly Brandt, AI P
Director
Attachments: A. City Council Resolution including proposed AHIP and MCA
B. Project Vicinity Map
C. City Council Resolution No. 2007 -058 including previous AHIP and
MOU
D. September 11, 2007 City Council Minutes
I
City Council
Attachment A
City Council Resolution including
proposed AHIP and MOA
7
RESOLUTION NO. 2012-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH APPROVING AN AFFORDABLE HOUSING
IMPLEMENTATION PLAN AND MEMORANDUM OF
AGREEMENT, AND WAIVING THE REQUIREMENT OF A
DEVELOPMENT AGREEMENT FOR THE SANTA BARBARA
CONDOMINIMUM PROJECT AT 900 NEWPORT CENTER DRIVE
(PA2012 -012)
THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS
FOLLOWS:
SECTION 1: STATEMENT OF FACTS
1. On January 10, 2006, the City Council adopted Resolution No. 2006 -2,
approving an application by Lennar Homes for the development of 79
condominium units at 900 Newport Center Drive.
2. Resolution No. 2006 -2 includes Condition No. 5, which establishes the
requirements for the project to meet the affordable housing requirements in the
City's Housing Element.
3. On July 25, 2006, the City Council approved a comprehensive update to the
General Plan, including changes in affordable housing requirements under an
updated Housing Element.
4. On March 27, 2007, the City Council adopted Ordinance No. 2007 -6,
amending provisions under which development agreements shall be required
for residential projects to implement new policies and land use changes in the
General Plan.
5. On August 14, 2007, the City Council adopted Resolution No. 2007 -058,
approving an Affordable Housing Implementation Plan (AHIP) that complied
with the requirements of the updated Housing Element as satisfaction of
Condition No. 5. The resolution also approved a Memorandum of
Understanding (MOU) establishing an agreement between the City and Lennar
Homes that a development agreement would be prepared vesting rights to
develop the project as approved and establishing a public benefit contribution
to the City in the amount of $5 million.
6. On May 11, 2010, the City Council adopted Ordinance No. 2010 -9, adding
Chapter 19.54 (Inclusionary Housing) to the Municipal Code implementing
Housing Program 2.2.1 of the Housing Element. The Chapter allows
alternatives to on -site construction of affordable housing, including the
i
payment of in -lieu housing fees for projects of more than 50 units subject to the
approval of an AHIP.
7. Lennar Homes is no longer associated with the project and New Home
Company Southern California, LLC ( "New Home Company "), has requested
approval of an amendment to the AHIP that complies with the requirements of
the updated Housing Element, complies with the requirements of Chapter
19.54 of the Municipal Code, and satisfies Condition No. 5 of the project
approval.
8. New Home Company wishes to enter into a Memorandum of Agreement
(MOA) with the City to replace and supersede the previous MOU and to
specify the payment of public benefit fees, phasing of development of the
property, and waiving a requirement for a development agreement.
SECTION 2. CALIFONIA ENVIRONMNETAL QUALITY ACT DETERMINATION
A Mitigated Negative Declaration (SCH No. No. 2005 - 071067) has been prepared
for the proposed project in accordance with the implementing guidelines of the
California Environmental Quality Act (CEQA). The document was made available
for public review and comment during a 30- day.review period from July 15 to
August 15, 2005 and subsequently approved by the City Council on January 10,
2006. A subsequent mitigated negative declaration for the project is not required
to be prepared pursuant to CEQA Guidelines Section 15162 because the
amended AHIP and MOA do not constitute "substantial changes" to the project
that would involve new significant environmental effects or result in additional
mitigation measures.
SECTION 3. REQUIRED FINDINGS
1. Pursuant to Section 19.54.050.A.2 of the Municipal Code, the payment of in-
lieu housing fees for residential subdivisions of more than 50 units requires the
approval of an AHIP. In accordance with Section 19.54.070.D of the Municipal
Code, the following findings and facts in support of such findings for
alternatives to on -site construction are set forth:
Finding:
A. The purpose of the chapter would be served by the implementation of
the proposed alternative.
Facts in Support of Finding:
A -1 The acceptance of the fees would permit the City to exercise its
discretion to direct the funding of affordable units in the City in a manner
consistent with the requirements of Chapter 19.54 of the Municipal
10
Code and more effectively accomplish the goals and objectives set forth
in the Housing Element.
A -2 Through the acceptance of in -lieu housing fees, the City could partner
with an affordable housing developer to leverage the in -lieu fees with
other sources to construct or convert units for a deeper affordability
level (i.e. lower- income households) in the City.
A -3 Utilizing the in -lieu fees to construct, convert, or preserve affordable
housing units in the City may assist in obtaining credit under the City's
Regional Housing Needs Allocation (RHNA), whereas the units provided
under the original AHIP would not be eligible and would not address
lower- income housing needs.
A -4 The City's Affordable Housing Fund currently consists of approximately
$1.5 million, which is an amount that has been insufficient to assist in
the development of any sizable affordable housing projects. The
proposed AHIP could generate an additional $1.2 million in the
Affordable Housing Fund, creating a larger fund that would be awarded
to an affordable housing developer and increase a project's feasibility
within the City.
Finding:
B. The units provided are located within the City and are consistent with
the requirements of this chapter (Chapter 19.541.
Facts in Support of Finding:
B -1 The in -lieu housing fees would be deposited into the City's Affordable
Housing Fund, which shall be used in compliance with the General Plan
Housing Element to construct, rehabilitate, or subsidize affordable
housing or assist other government entities, private organizations, or
individuals to provide or preserve affordable housing within the City.
Findinq:
C. It would not be feasible or practical to construct the units on -site.
Facts in Support of Finding:
C -1 When the project was originally approved, it was determined that
providing the required affordable units on -site would not be feasible or
practical given the size, scope, design, site configuration, and location
of the proposed project.
11
2. Pursuant to Section 15.45.020.0 of the Municipal Code, the City Council may
waive the requirement for a development agreement. The following findings
and facts in support of such findings for the waiver of a development
agreement are set forth:
Finding:
A. The legislative act is of a minor nature, or 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.
Facts in Support of Finding:
A =.1 The applicant has agreed to enter into a Memorandum of Agreement
(MOA) that includes the payment of a $5 million Public Benefits Fee to
the City, which may be used by the City for any projects that benefit the
City, in addition to the housing and park fees.
A -2 Since the applicant is not seeking vesting of development rights, the
City nor the applicant would benefit from a development agreement.
SECTION 4. DECISION
NOW, THEREFORE, BE IT RESOLVED
1. The City Council of the City of Newport Beach does hereby approve an
amended Affordable Housing Implementation Plan for the Santa Barbara
Condominiums Project, attached as Exhibit 1.
2. The City Council of the City of Newport Beach does hereby approve a
Memorandum of Agreement between New Home Company and City of
Newport Beach, attached as Exhibit 2.
3. The City Council of the City of Newport Beach does hereby waive the
requirement for a development agreement.
4. Resolution No. 2007 -058 is hereby rescinded.
5. This resolution shall take effect immediately upon adoption.
6. This resolution was approved, passed and adopted at a regular meeting of the
City Council of the City of Newport Beach held on February 14, 2012, by the
following vote, to wit:
12
AYES, COUNCIL MEMBERS
NOES, COUNCIL MEMBERS
ABSENT COUNCIL MEMBE
MAYOR
ATTEST:
CITY CLERK
23
Exhibit 1
Amended Affordable Housing Implementation Plan
15
The New Nome Company
Santa Barbara Condominiums
Affordable housing Implementation Plan
City of Newport Beach, CA
January 30, 2012
27
I
II.
TABLE OF CONTENTS
Page
-g
New Home Company — Santa Barbara Condominiums
Affordable Housing Implementation Plan
Page 1
I. Executive Summary
Background
In January, 2006, the City of Newport Beach approved General Plan Amendment No.
2004 -005, Local Coastal Program Land Use Plan Amendment No. 2005 -001, Tentative Parcel
Map No. 2005 -014, Tentative Tract Map No. 2004 -004 (TTM 16774), Traffic Study No. 2005-
002 and Coastal Residential Development Pen-nit No. 2005 -004 and adopted Ordinance No.
2006 -1 approving Planned Community Development No. 2005 -003 amending Zoning District
Map No. (48) to permit the development of 79 residential units on approximately 4.26 acres of
land at 900 Newport Center Drive, known as the Santa Barbara Condominium Project (the
"Project "). Condition 5 of the City Council Resolution 2006 -2 approving the project establishes
the affordable housing requirement for the project, as follows:
The applicant shall provide a minimum of 20% of the total units (16 units) for affordable
income households in accordance with Housing Programs 2.2.1 and 2.2.3 of the Newport
Beach Housing Element. The applicant shall enter into an agreement with the City to
provide said units, which units may be provided off -site, at an approved location within
the City. These units shall be identified in the agreement and constructed and completed
prior to the issuance of any certificate of occupancy for the project. The agreement shall
be reviewed and approved by the City Attorney and shall be executed and recorded prior
to the recordation of the final tract map or the issuance of a building or grading permit
for the proposed subdivision.
The City of Newport Beach's Housing Element as approved by the City Council in July,
2006, after approval of the Project, includes an amended Housing Program 2.2.1, which sets the
goal that 15% of all new housing units in the city be affordable to very low -, low- and moderate -
income households. Pursuant to Section 1954.060 of the Newport Beach Municipal Code,
projects with more than 50 units are required to prepare an Affordable Housing Implementation
Plan ( "AHIP ") that specifies how the development will meet the City's affordable housing goal.
. On May 11, 2010, the City Council adopted Ordinance No. 2010 -9 adding a new chapter
to the Subdivision Code implementing Housing Program 2.2.1 of the Housing Element of the
City's General Plan which allows for alternatives to on -site construction of affordable housing
units, including payment of in -lieu fees for projects of fifty -one (5 1) dwelling units or more with
approval of an AHIP.
Summary
On August 14, 2007, the City Council of the City of Newport Beach adopted Resolution
2007 -58 approving an Affordable Housing Implementation Plan for the Project (the "2007
AHIP ") as proposed by then - applicant Lennar Homes. Subsequent to approval of the 2007
AHIP, The New Home Company has entered into an agreement with the landowner of the 4.26
acre site to acquire the site and develop the Project.
?9
New Hone Company — Santa Barbara Condominiums
Affordable Housing Implementation Plan
Page 2
In reviewing the provisions of the 2007 AHIP and as a result of further discussions on
how the City would like to implement its inclusionary housing ordinance, the City and The New
Home Company have agreed that the 2007 AHIP should be amended. The New Home Company
has proposed this new 2012 Affordable Housing Implementation Plan (`2012 AHIP ") in order to
address the City's objectives and to satisfy the provisions of the City's current Inclusionary
Housing requirements as set forth in Chapter 19.54 of the Newport Beach Municipal Code and
the Newport Beach Housing Element. Accordingly, The New Home Company, after extensive
research on options for meeting the affordable housing requirements, and in consideration of the
Chapter 19.54 of the Newport Beach Municipal Code and the adopted Housing Element
requirement for 15 % of all new units to be affordable, agrees to meet the requirements of the
City Inclusionary Housing requirements and the Housing Element as described below.
H. Affordable Housing Implementation
Payment of In -Lieu Fees
In accordance with the provisions of Section 19.54.050 of the Newport Beach Municipal
Code, The New Home Company shall pay a fee in -lieu of constructing the affordable housing
units required for the Project (the "In -lieu Fee "). The In -lieu Fee shall be paid at the rate in
effect at the time of the issuance of each Building Permit, as that tenn is defined in the
Memorandum of Agreement between the City and The New Home Company, for each market
rate unit.
20
Exhibit 2
21
MEMORANDUM OF AGREEMENT BETWEEN THE NEW HOME COMPANY
AND CITY Or NEWPORT BEACH
This Memorandum of Agreement ( "MOA ") is entered into by and between The New
Home Company Southern California LLC, a Delaware limited liability company ( "New home "),
and the City of Newport Beach ( "City "), a municipal corporation through its duly elected,
appointed, qualified or acting representatives as of the _ day of February, 2012. City and
New Home are sometimes collectively referred to in this MOA as the "Parties" and individually
as a "Patty."
RECITALS
A. WHEREAS, oil January 10, 2006 the Newport Beach City Council approved
Resolution No. 2006 -2 adopting Mitigated Negative Declaration (SCH No. 2005- 071067) and
approved General Plan Amendment No. 2004 -005, Local Coastal Program Land Use Plan
Amendment No. 2005 -001, Tentative Parcel Map No. 2005 -014, Tentative Tract Map No. 2004-
004 ( "TTM 16774 "), Traffic Study No. 2005 -002 and Coastal Residential Development Permit
No. 2005 -004 and adopted Ordinance No. 2006 -1 approving Planned Community Development
No. 2005 -003 amending Zoning District Map No. (48) for property located at 900 Newport
Center Drive ( "PA 2004 - 169 ") to permit the development of 79 residential units on
approximately 4.26 acres of land ( "Property ") described in Exhibit "A'
B. WHEREAS, on March 27, 2007, the City Council adopted Ordinance No. 2007-
6, amending provisions under which development agreements shall be required for residential
development projects in the City to implement new policies and Land Use changes in the new
General Plan and requiring development agreements for projects that require a legislative act and
include more than 50 units; and
C. WHEREAS, on July 10, 2007 the California Coastal Commission approved City
of Newport Beach Land Use Plan Amendment NPB- MAJ -1 -06 Part A (Marriott Hotel VSC to
MDR/Santa Barbara Condominiums) subject to modifications;
D. WHEREAS, on July 24, 2007, the City Council approved Resolution No. 2007-
56 accepting the modifications suggested by the California Coastal Commission;
E. WHEREAS, on July 24, 2077, the City Council approved Resolution No. 2007-
55 approving an Affordable Housing hnplementation Plan and Memorandum of Understanding
for the Santa Barbara Condominium Project at 900 Newport Center Drive (PA2004 -169) with
Lemur Homes of California, Inc. ( "Lemur Homes ");
F. WHEREAS, on August 14, 2007, the City Council approved Resolution No.
2007 -58, which rescinded Resolution No. 2007 -55 and approved an Affordable Housing
Implementation Plan ( "AHIP ") and Memorandum of Understanding ( "MOU ") for the Santa
Barbara Condominium Project at 900 Newport Center Drive (PA2004 -169) with Lennar Homes;
23
G. WHERE-AS, oil September 5, 2007, the California Coastal Commission approved
Coastal Development Permit No. 5 -07 -085 permitting the development cif 79 residential
townhonne units ( "Project') consistent with the City of Newport Beach Land Use Plan
Amendment NPB- MAR -1-06 Part A;
1-I. WHEREAS, Lemnar ]-tomes no longer has an equitable or legal interest in the
Property;
1. WHEREAS, New Flonnc is under contract to acquire the Property and desires to
develop the Project;
J. WHEREAS, subsequent to the adoption of Resolution No. 2007 -58, the City
adopted Municipal Code Chapter 19.54 to implement the City's inclusionary housing policies;
and
K. WHEREAS, the Parties have determined that as a result of changed
circumstances, the Parties shall amend the prior- approved AHIP, and amend, replace and
superccde the prior MOU to set forth the process by which New Home shall satisfy its Quimby
Act requirements in accordance with 1110 Subdivision Map Act (Government Code Section
66477), and provide for funding of other public benefits as may be determined by the City
Council pursuant to the terms of this MOA.
NOW, THEREFORE, in light of the foregoing Recitals, which are incorporated herein
by this reference, and for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, and in consideration of the representations, assurances, covenants and
promises contained herein, the Parties agree as follows:
The following terms when used in this MOA shall have the meanings set forth below:
1.1 The term "AHIP" shall mean the Affordable Housing Implementation Plan
approved by City on July 24, 2007, as amended by this MOA, and which is attached as Exhibit
4TII
1.2 The teen "MOA" shall mean this Memorandum of Agreement.
1.3 The term `Building Permit" shall mean either a combination permit orally
electrical, mechanical, fire, plumbing and /or pool permit that is issued by the City to New ]-lane
for any residential building oil any portion of the Property.
1.4 The terns `City" shall mean the City of Newport Beach, a California Municipal
Corporation and charter city.
1.5 The term. "City Council" shall mean the governing body of City.
1.6 The term "Constructiot Codes" shall mean the Codes that are in effect at the time
applicable permits are issued, including but not limited to: California Building Codes Volumes 1
and 2, including Appendix F, I, Appendix Al of ]'art 10, and all national codes and standards
24
referenced therein, based on the 2010 International Building Code, as published by the
International Code Council; the California Electrical Code based on the National Electrical
Code, including Ampex A, B and C as published by the National Fire Protection Association; the
California Plumbing Code, including Appendix Chapters A, B, D, E, F and G, based on tine
Uniform Plumbing Code as published by the International Association of Plumbing and
Mechanical Officials; the California Mechanical Code, based on the Uniform Mechanical Code,
including Appendix A as published by the International Association of Plumbing and
Mechanical Officials; the "Uniform Swimming Pool, Spa, and Hot Tub Code" as published by
the International Association of Plumbing and Mechanical Officials; the International Property
Maintenance Code; the Newport.Beacln Administrative Code; the California Fire Code; and
International Fire Code, as the same may be modified and amended by official action.
1.7 The term "Demolition Permit' shall mean a permit that is issued by the City
enabling New Home to demolish all existing structures and improvements located on the
Property.
1.8 The tern "Development' or "development" shall mean the improvement of the
Property for purposes of completing and effecting the structures, improvements, and facilities
comprising the Project, including, without limitation, grading, the construction of infrastructure
and public facilities related to tine Project whether located within or outside the Property, the
construction of structures and buildings and the installation of landscaping. Development also
includes the maintenance, repair, or reconstruction of any building, structure, improvement,
landscaping or facility after the construction and completion thereof.
1.9 The tern "Effective Date" shall mean the date that New Home assumes fee title
ownership of the Property.
1.10 The tern "Foundation Permit' shall mean the permit that is issued to allow
construction of the concrete structure that will serve as the foundation for the buildings to be
constructed as the Project following all demolition, clearing and grading work required on the
Property.
1.11 The term "General Plan" shall mean the City of Newport Beach General Plan, as
the General Plan exists as of the Effective Date of this Agreement.
1.12 Tile term "Rough Grading Permit' shall mean the permit that is issued by the City
enabling New Home to accomplish the rough grading of the Property.
1.13 The term "Precise Grading Permit' shall mean the permit that is issued by the
City enabling New Home to accomplish the precise grading of the Property, together with the
installation of any requisite infrastructure to be located on the Property
1.14 The tern "Master Site Plan" shall mean the Master Site Plan for the development
of the Property attached hereto as Exhibit "C ".
1.15 The term "Municipal Code" shall refer to the City of Newport Beach Municipal
Code, as the same now exists or may be ftmther amended from time to time consistent with this
Agreement.
3 25
1.16 The term "Other Permits" shall mean either the Rough Grading Permit or
Demolition Permit.
1.17 The term "Project" shall mean the development of the Property pursuant to the
conceptual plan for development of the Project oil the Property is depicted on the conceptual
Master Site Plan attached hereto as Exhibit "C ".
1.18 The term "Residential Permit" shall mean either the Precise Grading Permit,
Foundation Permit or the Building Permit.
2.1 The term of this MOA shall commence on the Effective Date and shall continue
thereafter for a period of ten (10) years, unless this MOA is terminated, modified, or extended by
circumstances set forth in this MOA or by mutual written consent of the Parties.
None of the obligations of New Home as set forth in Sections 3.1 through and inclusive
of 3.3, below, with respect to the provision of Public Benefits, and the obligations of City with
respect to development of the Property as set forth in Section 4;, below, shall arise until after
New Home assumes title to the Property.
2.2 Notwithstanding the foregoing Section, the provisions of this MOA shall
terminate sixty (60) days after the date upon which the certificate of occupancy for the final
residential condominium unit authorized for the project.
2.3 This MOA shall be terminated in the event New Horne does not assume title to
the Property. New Home shall notify the City within fourteen (14) days of the termination of its
contract to acquire the property.
PUBLIC BENEI+ITS.
3.1 AHIP and Affordable Housing Fee,
The AHIP, attached as Exhibit "B," provides for the payment of affordable housing fees
at the rate in effect at the time the fees are paid pursuant to the schedule set forth in this MOA
consistent with NBMC 19,54. The payment of the Affordable Housing In -Lieu Fee replaces the
prior AHIP requirement to purchase covenants to guarantee the affordability of an existing 12-
unit apartment building. The Affordable Housing In -Lieu Fee shall be paid at the rate in effect
upon the issuance of each Building Permit for each unit.
As New Home and the City agree that New Home's affordable housing obligations
pursuant to Chapter 19.54 of the Municipal Code shall be satisfied by the payment of in -lieu
fees, the parties ftlrther agree that the requirements of Section 19.54.080 of the City Municipal
Code have been addressed and are satisfied.
20
3.2 Quimby Act Fee.
The Proposed Project shall pay in -lieu park fees which shall satisfy its obligations under
the Quimby Act, Government Code Section 66177. The Quimby Act fee shall be paid on a pro
rata basis at the rate in effect upon the issuance of each Building Pennit for each unit.
3.3 Public Benefits Fee.
The Project shall pay to the City a Public Benefits Fee of S63291 per unit, for a total of
55,000,000, which shall be used by the City to final projects for the benefit of the public. The
Public Benefits Fee shall be paid on a pro -rata basis upon the issuance of each certificate of
occupancy for each unit.
3.4 Conformity with Ordinance No. 2007 -6 and Waiver of Development
Aereenrent. in light of the public benefits that shall be provided to the City pursuant to this
MOA, and the Proposed Project's commitment to implement new policies and land use changes
in the General Plan, and the Proposed Project's provision of those public benefits identified by
the City to support implementation of the General Plan as set forth in this MOA, pursuant to
Municipal Code Section 15.45.020 (Cl), the City hereby waives the requirement that the Parties
enter into a development agreement.
4. DEVELOPMENT OF THE PROPEliTX.
4.1 Separate Permits. New Home may request and, upon approval of the plans
therefor and payment of the appropriate fees, City shall issue separate permits, as follows:(a) the
Demolition Permit, (b) the Rough Grading Permit (collectively, "O(her Permits "), (c) Precise
Grading Permit, (d) the Foundation Permit, and (c) the Building Pennit (collectively,
"Residential Permit "). The City, upon application fi-om New Home, agrees to issue the Other
Permits prior to recordation of any required final subdivision map or condominium plan for the
Project.
4.2 PhasesBuildines. City shall apply the regulations then in effect to allow the
development of the Project in two (2) separate and distinct phases as shown on the Master Site
Pfan depicted on Exhibit "C" attached hereto. In addition, for all purposes applicable thereto
under the Construction Codes and the applicable Building Codes building and land use
regulations, the five (5) Buildings shown on Exhibit "C" shall each be considered a separate
Building, although all or some of such Buildings shall share a common garage on it subterranean
level.
4.3 Sales Trailer. Upon approval of the site plan therefor and payment of the
appropriate fees, City shall allow and issue appropriate pennits for the installation and use of a
mobile trailer as a temporary sales trailer for the Project on the Phase 11 area of the Property.
5. ASSIGNMENT.
New Home shall have the right to assign its rights and obligations under this MOA in
connection with a transfer of New Home's interest in the Property provided that no partial
transfer shall violate the Subdivision Map Act (California Government Code Sections 66410-
5 27
66499.55). In the event of any such assignment, the assignee shall be liable for the performance
of all obligations of New Home with respect to the portion of the Property so transferred.
Following an assignment or transfer of any of the rights and interest of New flomc set forth in
this MOA in accordance with this Section, the assignee's exercise, use and enjoyment of the
Property shall be subject to the terms of this MOA to the same extent as if the assignee or
transferee were New Home.
6. MISCELLANEOUS PROVISIONS.
6.1 Covenants, The provisions of this MOA shall constitute covenants which shall
I oll with the land comprising the Property for the benefit thereof, and the burdens and benefits
hereof shall bind and inure to the benefit of each of the Parties hereto and all successors in
interest to tits Parties hereto.
6.2 Severability. if any term, provision, covenant, or condition of this MOA is held
by a court ofeompetent jurisdiction to be invalid, void, or unenforceable, the remaining
provisions of this MOA shall continue in full force and effect, unless and to the extent tite rights
and obligations of any Party has been materially altered or abridged by such holding.
6.3 Counter vat rts. This MOA may be executed in counterparts, each of which shall be
considered a duplicate original.
6.4 Governing Law. This MOA shall be governed by, and construed and enforced in
accordance with, the laws of the State of California.
6.5 Entire Agreement; Waivers and Amendments. This MOA constitutes the entire
understanding and agreement of the Parties and supersedes all previous negotiations, discussions,
and agreements among the Parties with respect to all or part of the subject matter hereof. No
parole evidence of any prior or other agreement shall be permitted to contradict or vary the terms
of this MOA. Failure by a Party to insist upon the strict performance of any of the provisions of
this MOA by any other Party, or the failure by a Party to exercise its rights upon the default of
the other Party, shall not constitute a waiver of such Party's right to insist and demand strict
compliance by the other Parties with the terms of this MOA. Any amendments or modifications
to this MOA must be in writing, signed by duly authorized representatives of each of the Parties
hereto.
The MOU that was approved by the City pursuant to Resolution No. 2007 -53 is of no
force and effect and has been replaced and superseded in its entirety by this MOA.
DEFAUI.'I REMEDIES, AND TERMINATION.
7.1 Notice and Opportunity to Cure. Before this MOA may be terminated or action
may be taken to obtain judicial relief, the Party seeking relief ( "Nondefiwlting Party') shall
comply with the notice and cure provisions of this Section. A Nondefaulting Party in its
discretion may elect to declare a default under this Agreement in accordance with the procedures
hereinafter set forth for any failure or breach of any other Party ( "Defaulting.l'arty ") to perform
any material duty or obligation of said Defaulting Party in accordance with the terms of this
MOA. However, the Non - Defaulting Party must provide written notice to the Defaulting Party
22
setting forth the nature of the breach or failure and the actions, if any, required by the
Nondefaulting Party to cure such breach or failure. The Defaulting Party shall be deemed in
"default" of its obligations set forth in this MOA if the Defaulting Party has failed to take action
and cured the default within ten (10) days after the date of such notice (for monetary defaults),
within thirty (30) days after the date of such notice (for non - monetary defaults), or within such
lesser time as may be specifically provided for in this MOA. If, however, a non - monetary
default cannot be cured within such thirty (30) day period, as long as the Defaulting Party does
each of the following: (i) notifies the Non - Defaulting Party in writing with a reasonable
explanation as to the reasons the asserted default is not curable within the thirty (30) day period
and provides a proposed course of action to cure the default; (ii) promptly commences to cure the
default within the thirty (30) day period; (iii) makes periodic reports to the Non - Defaulting Party
as to the progress of the program of cure; and (iv) diligently prosecutes such cure to completion,
then the Defaulting Party shall not be deemed in breach of this MOA. Notwithstanding the
foregoing, the Defaulting Party shall be deemed in default of its obligations set forth in this
MOA if said breach or failure involves the payment of money but the Defaulting Party has failed
to completely cure said monetary default within ten (10) days (or such lesser time as may be
specifically provided in this MOA) after the date of such notice.
7.2 Default Remedies. Subject to Section 7.3, in the event of a default, the Non -
Defaulting Party, at its option, may institute legal action to cure, correct, or remedy such default,
enjoin any tlu-eatened or attempted violation, enforce the terms of this MOA by specific
performance, or pursue any other legal or equitable remedy.
7.3 New Home's Exclusive Remedy. The Parties acknowledge that City would not
have entered into this MOA if it were to be liable in damages under or with respect to this MOA,
or the application thereof, or any permit or approval sought by New Home in accordance
herewith. Accordingly, New Home covenants, on behalf of itself and its successors and assigns,
not to sue City for damages or monetary relief for any breach of this MOA or arising out of or
connected with any dispute, controversy or issue regarding the application, interpretation of
effect of this MOA, or any land use permit or approval sought in connection with the
development or use of the Property or any portion thereof, the Parties agreeing that declaratory
and injunctive relief, mandate, and specific performance shall be New Home's sole and
exclusive judicial remedies.
7.4 Force Maicure. The obligations by any Party hereunder shall not be deemed to be
in default where delays or failures to perform are due to any cause without the fault and beyond
the reasonable control of such Party, including to the extent applicable, the following: war;
insurrection; strikes; walk -outs; the unavailability or shortage of labor, materials, or equipment;
riots; floods; earthquakes; the discovery and resolution of hazardous waste or significant
geologic, hydrologic, archaeological, paleontologic, or endangered species problems on the
Property; fires; casualties; acts of God; governmental restrictions imposed or mandated by other
governmental entities; with regard to delays of New Home's performance, delays caused by
City's failure to act or timely perform its obligations set forth herein; with regard to delays of
City's performance, delays caused by a New Home's failure to act or timely perform its
obligations set forth herein; inability to obtain necessary permits or approvals from other
governmental entities; enactment of conflicting state or federal statutes or regulations; judicial
decisions; or litigation not commenced by such Party. Notwithstanding the foregoing, any delay
caused by the failure of City or any agency, division, or office of City to timely issue a license,
M
permit, or approval required pursuant to this MOA shall not constitute an event of force majeure
extending the time for City's performance hereunder. If written notice of such delay or
impossibility of performance is provided to the other Parties within a reasonable time alter the
commencement of such delay or condition of impossibility, an extension of time for such cause
will be granted in writing for the period of the enforced delay, or longer as may be mutually
agreed upon by the Parties i i writing, or the performance rendered impossible may be excused in
writing by the Party so notified. In no event shall adverse market or financial conditions
constitute an event of force majeure extending the time for such Party's performance hereunder.
NOTICES.
Any demand upon or notice required or permitted to be given by one party to the other
shall be in writing, shall be made in the following mamier, and shall be effective (a) upon receipt
if given by personal delivery, (b) on the date indicated on the receipt if given by certified or
registered mail, return receipt requested, or (c) on the succeeding business day alter mailing or
deposit i f given by Express Mail or by deposit with a private delivery service of gencrai use (e.g.,
Federal Express), postage or fee paid, as appropriate, addressed to the parties as set forth below.
Notice of a change of address shall be given by written notice in the manner set tbrth in this
section.
For the purposes of this MOA, all information, requests, or otincr business including any
demand upon a party or notice pursuant hereto shall be coordinated through the following agency
representatives:
City of Newport Bcach
Attn: David Kiff; City Manager (with copy to City Attorney's Oflice)
3300 Newport Blvd.
Newport Beach, CA 92658 -8915
The New Home Company Southern California LLC
Tom Redwitz, President
95 Enterprise, Suite 325
Aliso Viejo, CA 92656
IN WITNESS WHEREOF, City and New Home have executed this MOA as of (lie date
first written above.
[SIGNATURES ON TIM FOLL0 WING PAGE)
30
ATTI"ST:
Lcilani Brown
City Clerk
APPROVED AS TO FORM:
Bye
A'acon Harp Z�
City Attorney , I
CITY OF NEWPORT B1ACI.1,
A Municipal Corporation
By :,
Nancy Gardner
Mayor
THE NEW HOME COMPANY SOUTHERN
CALIFORNIA LLC, a Delaware Limited
Liability Company
Tom Redwitz
President
0 31
EXHIBIT "A"
LEGAL DESCRIPTION OR THE PROPERTY
10 33
Cchihil "A"
Legal Description
PARCEL 1, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER
MAP 2004 -225 FILED IN BOOK 3G1 PAGES 1, 2 AND 3 OF PARCEL MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY, AS MODIFIED BY THE PARCEL MAP CERTIFICATE OF
CORRECTION RECORDED APRIL 23, 2008 AS INSTRUMENT NO. 2008000190230.
EXCEPT ANY AND ALL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS RIGHTS, AND
OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN, GEOTHERMAL STEAM AND ALL PRODUCTS
DERIVED FROM ANY OF THE FOREGOING, THAT MAY BE WITHIN OR UNDER THE PARCEL OF LAND
HEREINABOVE DESCRIBED, TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, MINING,
EXPLORING AND OPERATING TI-IEREFOR AND STORING IN AND REMOVING THE SAME FROM SAID
LAND OR ANY OTHER LAND, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND
MINE FROM LANDS OTHER THAN THOSE HEREINABOVE DESCRIBED, OIL OR GAS WELLS, TUNNELS
AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND HEREINABOVE DESCRIBED,
AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS
UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF, AND TO REDRILL, REfUNNEL,
EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES; WITHOUT,
HOWEVER, THE RIGHT TO DRILL, MINE, STORE, EXPLORE AND OPERATE THROUGH THE SURFACE OR
THE UPPER 500 FEET OF THE SUBSURFACE OF THE LAND AS RESERVED IN THE DEED FROM THE
IRVINE COMPANY, A MICHIGAN CORPORATION, RECORDED JANUARY 4, 1993 AS INSTRUMENT NO,
93- 003605, OFFICIAL RECORDS
ALSO EXCEPT ANY AND ALL WATER, RIGHTS OR INTERESTS THEREIN, NO MATTER HOW ACQUIRED BY
GRANTOR, AND OWNED OR USED BY GRANTOR IN CONNECTION WITH OR WITH RESPECT TO THE
LAND, TOGETHER WITH THE RIGHT AND POWER TO EXPLORE, DRILL, REDIULL, REMOVE AND STORE
THE SAME FROM THE LAND Olt TO DIVERT OR OTHERWISE UTILIZE SUCH WATER, RIGHTS OR
INTERESTS ON ANY OTHER PROPERTY OWNED OR LEASED BY GRANTOR, WHETHER SUCH WATER
RIGHTS SHALL BE RIPARIAN, OVERLYING, APPROPRIATIVE, LITTORAL, PERCOLATING, PRESCRIPTIVE,
ADJUDICATED, STATUTORY OR CONTRACTUAL; BUT WITHOUT, HOWEVER, ANY RIGHT TO ENTER
UPON THE SURFACE OF THE LAND IN THE EXERCISE OF SUCH RIGHTS, AS RESERVED IN THE DEED
FROM THE IRVINE COMPANY, A MICHIGAN CORPORATION, RECORDED JANUARY 4, 1993 AS
INSTRUMENT NO. 93- 003805, OFFICIAL RECORDS.
35
EXHIBIT "B"
AFFORDABLE HOUSING IMPLEMENTATION PLAN
12
3?
The New Home Company
Santa Rarbara Condominiums
Affordable Housing Implementation Plan
City of Newport Beach, CA
January 30, 2012
YABLE OF CONTENTS,
Page
�
Executive Suoluuary ........ ,................. `° ................. ............ ................. - ...... ^,^,l
}3uvkX¢u/Ud ...................... ............ ............................................. ....................................... \
�i A[fovTx610 hxplebi .~..,°'_--=.,_-` .....................................
Payment of F '"`�.'�*�--..' ',.=+,..^..`,—'=,^^.`^.................... .=.-`,2
New Home Comtpany— Santa Barbara Condominiums
Affordable Housing Implementation Plan
Pace 1
I. Executive Summary
Background
In January, 2006, the City of Newport Beach approved General flan Amendment INTO.
2004 -005, Local Coastal Program Land Use Plan Amendment No. 2005 -001, Tentadve Mircel
1 dap No. 2005 -01=4, Tentative Tract Map No. 2004 -004 (TT \4 1677=4), Traffic Study No. 2005-
002 and Coastal Residential Development Permit No. 2005 -004 and adopted Ordinance No.
2006 -1 approving Planned Community Development No. 2005 -003 amending Zoning District
\4ap No. (48) to permit the development of 79 residential units on approximately 4.26 acres of
land at 900 Newport Center Drive, known as the Santa Barbara Condominium Project (the
"Project "). Condition 5 of the City Council Resolution 2006-2 approving the project establishes
the affordable housing requirement for the project, as follows:
The algVicont shall provide a minarnun of Zvi of the total amts (16 1titiLS) lbr tifjirr(Itible
income househohlr in accordance will) Housing Progtanis 2.2.1 cord 2:2:3 nf•the rlreirpor
Beach Housing Gletnetrt. Tito rrpldicmtl shall enter info an agreenunu naith the Cit.), to
provide said ynits, which units mo.), be prrivideel o/ tile, at at 1, localiola Ivithin
the C'ih,. These urrils slue!! Ge irlenti /ieff in the agreement rntd car.xltarclerl na <I corrrplelcd'
prior to the 'issuance (V•ar?Y cer iificote o1'oucu1)(ncyJb)- the prglecl. "l'!re agree» tent shall
be revicu,erl and npproarerl b�, /he CitJ, d/torneq, anc! shall be evecrded curd recorzled,prior
to Me recar•dalion erf the final pact nrap or the issuance of a building or grarlh g liermil
for the proposed subdivision.
The City of Newport Beach's Housing Element as approved by the City Council in July;.
2006, after approval of the Project includes an amended Housing Program 2.2.1, which sets the
goal that 15% of all new housing units in the city be affordable to very low -; low- and moderate-
income households. Pursuant to Section 19.54.060 of the Newport Beach \Municipal Code;
projects with more than 50 units are required to prcpare,an Affordable Housing Jtuplementation
Plan ( "AI,lIT'") that specifies how the development will meet the City's of fordable housing goal.
On NI'ay 11: 201 0, the City Council adopted Ordinance No. 2010 =9 adding a new chapter
to the Subdivision Code implementing blousing Program 2.2.1 of the Housing: Element of the
City's General Plan which allows foradternatives to on -site construction of affordable housing
units, including payment of in -lieu fees for projects of fifty-one (5I) dwelling units or more with
approval of an AHIP.
Summa i-y
On August 142 2007, the City Council of the City of Newport Beach adopted, Resolution
2007 -58 approving an Affordable Plousing Implementation Plan for the Project (the 4:2007
AH]P ") as proposed by then - applicant Lennar Homes. Subsequent to approval of the 2007
AH IP, `fhe Neww Home Company has entered into all agreement with the landowner of the 4.26
acre site to aequh'e the site and develop the Project.
■i'
New Home Company — Santa ':Barbara Condominiums
Affordable Hoiising.Implemen(ation Man
Page 2
hi ceviewing'the provisions oftl e� 2007 AHIP and as,a result of further d'i'scussionston
tiow the City would like to implement its inelusionaey houtsidg ordinance, the City and The; New
Home Company Have agreed that the 20,07 All -EP should be'?amended:. The New klome Company
has proposed this new-20 12 Affordable Housing Aanlilenaentation Plan ('20,12 XRTP' �) in ordei to
:address the City's objectives and'to satisfy the provisions of the City's. current T iclusiooary
Housing requiretnerifs as set forth in C ,, pter 19.5%1 of the Newport Beach Municipal Code and
the I Iewport Beach H'ousing.Elenrent, Accordingly, The Now Fl "olne Company; aifter este,nsiue
research orroptions for meeting the affordable housing requirements, and in consideration of the
Chapter 1y.5a•of the Newport Beach kfunicipai Code and the adopted Housing Element,
requirement for 15% of °all uety' units to :ae affordable, agrees ,'to meet t!ITe requirements of tlse
City Inclus onfflry Hotisingre`gtiireineiSt`s a "nd,the Housing Element as described below:
II. Affordable Housing I'mplemetrtation
Payment of In -L edFees
In accordance with the provisdons of Section 19.54.050 of the Newport Beach MutiicipM
Code, The New Home Comp'anyshall; pay a fee in -lieu of constructing the affordable housing
utnils required for the Project (Mae In - fie u FeV)1 T;he Tn-lieu Fee shall bc, paid at.the rate in
effect at the: time of the issuance of eacK,Building, Permit, as that term is defned:i'n the
Vlemorandtun of Agreement between the City and The New Home Company, for each market
rate unit.
EXHIBIT "C"
MASTER SITE, PLAN
13
mN
og
CC
4
45q
EPT 91 Q a n t apa r ID a r a
C O'jfldoffiiniuliLs
Newport beach
gi
C
EPT 91 Q a n t apa r ID a r a
C O'jfldoffiiniuliLs
Newport beach
City Council
Attachment B
Project Vicinity Map
a
T
C3• ��s�T �� ' ^ c � p - �1�
J-,
P � r
( rs
y P W
ql'i' �y�` �Y`
l
City Council
Attachment C
City Council Resolution No. 2007 -058
including previous AH1P and M;OU
51
RESOLUTION NO. 2007 -58
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH APPROVING AN AFFORDABLE HOUSING IMPLEMENTATION
PLAN AND MEMORANDUM OF UNDERSTANDING FOR THE SANTA
BARBARA CONDOMINIUM PROJECT AT 900 NEWPORT CENTER
DRIVE (PA2004 -169)
WHEREAS; on January 10, 2006, the City Council adopted Resolution No. 2006 -2,
approving an application by Lennar Homes for the development of 79 condominium
units at 900 Newport Center Drive; and
WHEREAS, the Resolution includes Condition 5, which establishes the requirements for
the project to meet the affordable housing requirements in the City's Housing Element;
and
WHEREAS, on July 25, 2006, the City Council approved a comprehensive update to the
General Plan, including changes in affordable housing requirements under an updated
Housing Element; and
WHEREAS, on March 27, 2007', the City Council adopted Ordinance No. 20074,
amending provisions under which development agreements shall be required for
residential projects to implement new policies and land use changes in the General
Plan; and
WHEREAS, Lennar has requested approval of an Affordable Housing Implementation
Plan that complies with the requirements of the updated Housing Element as
satisfaction of Condition 5; and
WHEREAS, Lennar wishes to enter into a development agreement to comply with
Ordinance No. 2007 -6, vest its rights to develop the project as approved and establish a
public benefit contribution to the City in the amount of five million dollars;
WHEREAS, there are no limits on use of the payment from Lennar referenced in Section
2.A of the Memorandum of Understanding and use of these funds shall be as determined
by the City Council.
PLOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport
Beach as follows:
SECTION 1.
The Affordable Housing Implementation Plan for Santa Barbara Condominiums; attached
as Exhibit 1, is approved,
�3
The Memorandum of Understanding between Lennar Homes of California, Inc and City of
Newport Beach, attached as Exhibit 2: is approved.
SECTION 3.
Resolution 2007-55 Is hereby rescinded.
Passed and adopted at a regular meeting of the City Council of the City; of Newport Beach
field on august 14, 2007, 1
ATTEST: {
Ct ,Y CL ERK
2
Exhibit I
Lennar Homes
Santa Barbara Condominiums
Affordable Housing
Implementation Plan
City of Newport beach, CA
July 249 2007
s
I
Lennar Homes — Santa Barbara Condominiums
Affordable liousing Implementation Page 2
Table of Contents
L Executive Summary
3
Background 3
City Process 3
Summary 3
If. Aff-ordable Housing Project Description 4
Unit Descriptions
Renovations 4
Buildings /Common Ares 4
Units 5
Maintenance
Project Weation. Map 7
Site Photos S
III. Co al tertetp eiaith Flvaxsin't� iteaasent 9
IV. Income and Rent Limits 10
Appendixtl — City qfNewlyort Beach Resolution ofApprova1 11
50
- Santa Barbara`Condominiums
. ice Ut:ive Auuntnaey
In January goof the`City of N,evvport Reach approved a General Plan Amendment,
Coastal Lana Use flan Amendment and Planned Community Text for a project being,
proposed by Lennar Homes The project consists of 7 %) market rate single- Gamily
condominiums in Newport Center, adjacent to the Newport Beach Marriott on the
former tennis court site. Condition y of the City Council Resolution approving the
project cstklishes the affordable housing requirement for the project,' as, follows:
The applicant shall provide a minimum of2o of the total units 06 units),fnr
offord,able income households in accordance with.Housing Prodra s 2:2:.1. and
2.2,3 of the Neurpr rt'Beach llousing L't ,,rnent. The applicant shall enter into an
crgreernent with the City to provide said units, which units-may be provided 0
site;,ut an approved location withinu the City. These units shall be identff ed in
the ayreenient and constructed and completed prior to the issuance Qf any
certificate of ec:upancy for the project. The agr-dernentshall be reviewed and
approved by Phe'City Altornei t and shrill be executed and "recorded prior °to the
recordation of "the f ins [-ract map or the issuance of a building orgra din g
ftftrbund
The City of Newport Beach's Housing Element as:approved by the City Council in July;
2006, aferapprovalofthe Lennar project, includes an amended Housing Program
2.2.1, which sets the.goal that 1g1% of all new housing: units in the city be affordable to
very low -, low- and moderate- income households. Projects with more than 50: units, are
required to preparean Affordable Rousing Implementation Plan (A[-I]P) that,speciFes
how the development mill meet the City's affordable housing goal.
city Frucess
Upon submittal of the Santa Barbara Condominium project to the city, Lennar Began
working with the city staff to evaluate-scenarios to comply with the Housing Element.
Due to the lack of available land in Newport Beach, Lennar gained conceptual consent of
the City Council's Affordable Housing Task force to purchase covenants to restrict
existing, market rate units to moderate- income households and rents affordable to
them.
After extensive research on options for meeting the affordable • housing requirements,
meeting with the Affordable Housing''l'ask Force, and inconsideration of the newly
adopted Rousing Element requirement for t5% of all new units'to be affordable, Lennar
agrees to meet the requirements of the City Council condition of approval and iheJuly
2Qo6 Housing Element as described below,
Lennar Homes — Santa Barbara Condominiums
II. Affordable housing Project Description
The Newport Courtyard Apartments at ]i28 — ] 142 Rutland Road, Newport Beach is an
existing, market rate, l2 -unit apartment complex. Lennar will satisfy its affordable
housing requirement through the purchase and recordation of covenants that restrict
the occupancy of the apartments to qualifying moderate - income households, and
restrict the rental rates as affordable to these households, for 30 years. An Affordable
Housing Agreement among the,City of Newport Beach, Lennar and the property owner
shall be executed and recorded prior to the recordation of the final tract map or the
issuance of a building or grading permit for the Lennar project.
Unit Desgd!Apoms
The apartment complex consists of two separate buildings that face a common
courtyard area that features a swimming pool. Each building contains six units and a
laundry room. The unit-, are generously sized at approximately ijoo squarefeet. The
apartments all contain two bedrooms and two bathrooms and a dining area. Each unit
has one assigned carport. While the units were built in tg61, the owner is currently
undertaking a significant renovation effort to upgrade the complex.
Renovation
Comprehensive renovations to the property to make tho complex comparablewith more
recently constructed projects and ensure that it provides viable housing opportunities
for the term of the covenants will be completed prior to the issuance of any certificate of
occupancy'for the Lennar project, as required by the City Council condition of approval.
The renovations M]I include the followings
Builditkgs /GommorvArects
• Recovering of the existing stucco on the building fagade with Hardiplank Select
Cedarmill Siding
• Complete replacement of all roof materials
• Exterior repainting of the entire complex , including the iron handrails
• Installation of new vertical wrought iron pickets between the existing pickets on
the railings in the courtyard area
• Installation of new redwood fencing on the back side of both buildings„ enclosing
rearpatio /porch areas.
• Replacement of fences enclosing patio areas for each unit adjacent to the
common courtyard with tower landscape shrubs to allow visibility and openness
in the courtyard area for each apartment
• Renovation of both laundry rooms to include:
• New 30 gallon electric water heaters and non -burst water supply lines
• New countertop for folding clothes
• New vinyl flooring, windows and doom
• Installation of new motion detecting light fixtures in the garage area
• Kplacement of concrete in the central, common area with pavers tt __ ' - ` `' -
courtyard
• New landscaping throughout the property
l.ennar Homes - Santa Barbara Condominiums
Affordable Dousing Implementation Plan
Units
Kitchens
• Complete kitchen remodel of two units with new appliances, countertops, .
cabinets and sinks
• Replacement of seven -year old appliances with new ones in two units
• Maintenance of appliances less than three years old in eight units
Bathrooms
• Replacement of all toilets with new, low -flow toilets
• Replacement of all shower heads with new, low -flow shower heads
Windows and Doors
• Installation of new vinyl windows and sliding glass doors
• Insallation of new Dutch style front doors in all iz units
Walls and Doors
• Repainting of all units'interiors
• Installation of new carpet in each unit
1l7 A;m1e aainte
The propertyvvill be maintained and preserved in good condition, in good repair, and it
a decent, safe, sanitary, habitableand tenantable condition. All units will be fit for
occupation by human beings and substantially comply with state and local building and
health codes. At a minimum, all rental units shall have the following:
• Effective waterproofing and weather protection of roof and exterior walls,
including unbroken windows and doors
• Plumbing facilities in good working order, including hot and cold' running
water, kitchen sink, working toilet, wash basin, and bathtub or shower,
connected to a sewage disposal system
• Gas facilities in good working order
• heating facilities in good worlangorder
• An electric system, including lighting_, wiring, and equipment, in good
working order
• Clean and sanitary buildings, grounds, and appurtenances (for example,
courtyard, swimming pool and carports), free from debris, filth, nebbish,
garbage, rodents, and vermin
• Adequate trash receptacles in good repair
• Floors, stairways, and railings in good repair
• Safe fire or emergency exits leading to a street or hallway
• Stairs, hallways, and exits kept litter -free
• Storage areas,,garages, and basements kept free of combustible materials
• Operable deadbolt locks on the main entry doors of rental units, and operable
locking or security devices on windows
• Working smoke detectors in all units and in common stairwells
- Santg Barbara
o Ground fault circuit interrupters for swimming pools, and. antisuction
protections
Lennar (-Tomes — Santa Barbara Condominiums
Affordable Housing Implementation Min Page 7
project Location Map
�,
r Newport Beach. d
n Of d had Mme m ;Newport Heig is Bo �arir � r
— jfrCam^ P46, Park,
f
t,7ao _ C T:OCt Per}
e
n a
�2
Lermar Flames — Santa BarbOTa Condominiums
Affordable Housing Impleinentation Plan Page 8
O�j
A
7-
02
Homes — Santa Barbara Condominiums
III. Consistency with Housing Elernent
The City of Newport Beach completed a comprehensive General Plan update in 2oo6.
The Housing Element v,-as included in the update to ensure consistency with the
updated bind Use Element.
The Housing Element details a number of goals for the City; which include the
following: promoting duality residential development through application of sound
planning principles and policies that encourage preservation, conservation, and
appropriate redevelopment of housing stock; providing a balanced residential
community that contains a -variety of housing types, designs and opportunities for all
economic segments of the community; extension of affordability= covenants with owners
of existing affordable apartments; preserving and increasing housing affordability,
through rental housing, for-very low- and low- income households; and providing
housing for special needs groups.
The affordable housing apartment complex achieves a number of the above goals,
including promotingquality residential development, preserving and increasing housing
affordability, and contributing to a balanced residential community through rental
housing. By converting 12 existing, market sate rental units exclusively for Moderate
Income Households for 30 years, the project increases housing affordability in the City
and preserves rental housing that might otherwise be converted to condominiums.
The affordable housing apartment complex is consistent with a number of the goals•and
policies in the Housing Element. Listed below is a matrix of where the Housing Element
and project are consistent
Goal
Project Consistency
H t
I Project renovates and preserves an existing
Quality residential development and
apartment community in Newport Beach
preservation, conservation, and
and adds deed restrictions to all 1.2 units
appropriate redevelopment of housing
for 30 years to restrict rental to qualifying
stock
moderate income households
H 3
Project provides for 12 additional rental
Housing opportunities for as many renter
units available to Moderate Income
and owner occupied households as
Households
possible in response to the demand for
housing in the city
�3
I.ennar Homes - :Santa Barbara Condominium_ s
Affordable Housing' Implementation Plan Page'lo
IV. Income and Rent Limits
The Newport Courtyard. Apartments at 1128 -1142 Rutland Road, Newport Beach will
be restricted for rent by qualifying households. In order to meet the minimum eligibility
requirements the units must be rented to households qualifying as Moderate Income
Households.
Moderate Income Households will have income that does not exceed 120% of the
Orange County ( "County"), California annualized median family income ( "Moderate
Income ") as then currently published by the United States Department of Housing and
Urban Development ( "HUD ") for the County based on four (4) person households, as
the same may be adjusted from time to time. Rent shall not exceed thirty percent (30%)
of the income limit.
Lenna:r Homes - Santa Barbara Condominiums
Affordable Housing implementation Plan Page is
Appendix. A.
City of Newport Beach Resolution of Approval
[TO BE 1NSElt'rED]
Exhibit 2
MEMORANDUM OF UNDERSTANDING i3E'1 WIDEN LENNA'R
ROMMES OF CALIFORNIA, INC. AND CITY OF NEWPORT BEACH
This Memorandum of Understanding ( "MOU ") is entered into by and between Leman
Homes of C.alifmui� Inc. (1 crinar") curd the City of Newpon Beach (City). a municipal
corporations, through ii duly elected, appointed, qualified or acting tepTmentatives.
1i ECIT_i19,
A. WHEREAS, on January 19,, 2006 the Newport Beach City
Council approved Resolution NO. 200& -2 adopting Mitigated Negative Declaration (SCH
NO. 2005- 071067) and approved General Plan Amendment No. 2004 -905, Local Coastal
Program Land Use Plan Amendment No. 2005 -001, Tentative Parcel Map No. 2005 -014_
Tentative Tract Map No. 2004 -004 (16774), Traffic 'Study No. 2005 -002 and Coastal.
Residential Development Permit No. 2005 -004 and adopted Ordinance No. 2006 -1
approving Planned Community Development No. 2005 -403 amending 7Aning District.
Map No. (4h) changing the subject property from CV -B to R.M -C' for property located.at
c3,00 Newpor�t'Center'Drive (PA 20(4 -1G9); ttutt`
B. VJHER.RAS„ on July 25, 2006 the City Council approved a
comprehensive update of the City's General Plan, including changes in Affordable
Housing Requiremenls °underanupdated HousiriiTFlemeot; and
C, WHEREAS, on March 27, 2007, the City Council adopted
Ordinance No. 2007 -6, amending provisions under which development agreements shall
be required for residential development projects in the City to .implement new policies and
Land Use changes in the new General Plan and rewiring development agreements for
projects that require a'legislative act and include more than 50 units, and
D. WHEREAS. on July 10, 2007 the California Coastal
Commission approved Cky of Newport Beach Land Use Plan a_rnendment NP8 yMAJ-1-06
Part A (Marriott Hotel VSC to M1 WSants Barbara Condominiums) subject to
modifications,,; and
E. WHEREAS, Lunar has requested approval of an Affordable
Housing implementation Plan (AHIP) which documents Lenrars commitment to the
provision of °I2 apartment units in the Moderate Income level for a period of 30 years and
which will satisfy the intent of Condition No. 5 of Resolution No. 2006 -2 for affordable
housing; but will comply with the amended requirements for number of units of affordable
housing under the updated Housing Element.
1 -'. WHEREAS,, concurrent with and as consideration for the
approval of the AHIP under the provisions of the updated Housing' Element; the two parties
Memorandum of Undera anding
$'etweren Lennar tlom :s of Calilbenla lea.
And C:itV of,Sewltnrt RWCh
Page --''_
wish to enter into a development agreement to vest the rigtft to develop the project without
additional public benefit contributions other than payment to the City of Newport Beach,
(tie amount of $5 million for the City to use for,projects that provide a public benefit to the
City as determined by the City Council.
NOW, 'Pil EMEFOR ,. it is mutually agreed by and between the undersigned pariies'as
follows'
Section 1. The City shall give prompt ,consideration to the, necessary support language for
Coastal Commission approval of the Coastal Development Permit, and to the Aft'ordable
Housing liplementatit n Plan (AMP) required by the current Housing Element.
Section 2. The parties will expeditiously, prepare and the Newport Beach Planning Commission
and City Council will: promptly consider approval of a development agreement that includes the
following principal provisions. The development ag;reemcnt must be approved and executed
before the issuance of any grading or building permit for the project.
A. As a condition of the development agrc5cm rent, Lennar shall pay,5 million to:the
City of Newport Beach. 'Phis amount shall be paid in two installments, $2 million t'o be
delivered concurrently with the issuance of the first residential building permit and $3'
million to be delivered concurrently with the issuance of the final' occupancy permit for all
79 homes. If the certificate of occupancy for ithe 79'h unit is not issued within in 12'months
of the first certificate of occupancy then the $3 million shall be due on a pno rata per unit
basis for those units for which a certificate of occupancy has been issued and payable -on a
pro rata basis for the ensuing; units as each certificate of occupant; is issued, Upon
Payment of this amount, no other payment shall be required for public benefit to the City of
Newport Beach.
B. The City will expeditiously review the Affordable Housing Agrceiii to
implement the AHIP, and will provide expedited review of development plans for the
project, in support oftiniely receipt of building, permits anti final txcupancy permits.
C. City development approvals will be vested for a period no! to exceed five (5)
years.
Section 3. The terms of this ,1V1OU shall become effective upon execution by both parties and,
shall continue thereafter until the satisfactory completion of the obligations of the parties as
described herein. The MOit may he altered, changed, or :amended by mutual consent of the
parties. Any changes or amendments must be in writing and signed by the ,partic:,s before such
change or amendment shall tckeeftmt'.
Section 4. The 'MOU is executed in counterparts, each of which shall be considered a
duplicate original.
Memorandum oj'Underv4nding
Between Lennar Homes - ofCafij_ornia, Inc.
And City of A'e+uport 3eac :
Page -3 -
Section 5. Notices; Any demand upon or notice required or permitted to be given by one
party to the other shall be in writing, shall be made in the following manner, and shall be
effective (a) upon receipt if given by personal delivery, (b) on the date indieated.on the receipt if
given by certified or registered mail, return receipt requested, or (c), on the succeeding business
day afrer mailing or deposit if given by Express Mail or by deposit with a private delivery
service of general use (G.g. Federal Express), postage or fee paid, as appropriate, addressed to
the parties in Paragraph 17. Notice of a, change of address shall be given by written rnotice in the
manner set forth in this section.
Section 6. For the purposes of this MOU, all information, requests, or other business
including any demand upon -a party or notice pursuant hereto shall be coordinated through the
following agency representatives:
City of Newport Beech
Homer Bludau, City Manager
3300 Newport Blvd.
Newport Beach, CA 92658 -8915
Lennar Homes of California; Inc.
Mr. John Baayoun
Regional Vice President
25 Enterprise
A1iso Viejo, CA 92656
Section 7. This MOU shall be binding upon and shall inure to the benefit of the successors and
assigns of the parties.
Section 8. This MOU shall be governed by, and construed and enforced in accordance with,
the laws of the State of California.
APPROVED AS TO FORM:
By:
Robin Clauson
City Attomey
ATITST:
0
LaVonne Plarkless
City Clerk
CI"T"Y OF NEWPORT BEACH,
A Municipal Corporation
By:
Steven Rosansky
Mayor
Lennar Homes of California, Inc
0
John Baayoun
Regional Vice President
STATE OF CALTFORATIA }
COUNTY OF'ORa'4NGE }
CITY OF NEWPORT BEACH }
Ski.
1, Leilani -I,. Brown, Deputy 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
resolution, being Resolution No_ 2007.58 was duly and .regularly introduced before and adopted by
the City Council of said City at a regular meeting of said Council; duly and regularly held on the
14th day of August 2007, and that the came was co passed and adopted by the following vote, to wit:
Aye.a: T-Tcnn, Curry, Selich; Daigle, Gardner, Mayor Rosansky
Noes: None
Absent: Webb
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my . name and affixed the
official seal.of said City this 15th day of August 2007.
o�r�WaO: Deputy City Clerk
@� Newport Beach. California
(Seal) �+c±coa�s
City Council
ttachment D
September 11, 2007 City Council Minutes
City of Newport Beach
City Council Minutes
September 11, 2007
Planning Director Lope reported on the foRowir g itemo: Code Amendment 2007 -005
(Group Qceupaneies arid' Sho't•tecm Lodgings) during the August 23 meeting; and Liberty
Baptist Church School Expanaion (PA2000 -079) 1000 Bison Avenue, and Paniai Cafe
(PA2007 -003) - 2121 E. Coast Highway during the September 0 meeting..
XVIII. CONTIt liED BUSINESS
21. USE OF FUNDS PROM. LENNAR HOMES OF CALIFORNIA, INC. IN
CONNECTION WITH DEVELOPMENT AGREEMENT FOR SANTA BARBARA
CONDOMINIUMS (cort.d. front 8/14107) (C.3979). 1381100-200 71
Mayor Pro Tenn Selich reported that, since this item was fist brought before Council, the
City has entered into negotiations for a development agreement with The lMue Company
which involves a substantial amount of park fees being generated in Newport Center. IIe
believed that it would be appropriate to table this item and bring it back' at a 'future date
after the Newport Center development agreement has been brought. before Council.
Motion by Mayor Pro Tem SeLlich to table and remove the item from the calendar.
The motion carried by the followbig roll call vote:
Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tom Selich, Mayor
Rosansky, Council Membor Webb, Council Member Daigle, Council Member Gardner
XiX, CURL ;EN'1,' $L15INESS'
S22. RESOLUTION CREATING AN AD HOC COMMITTEE ON GROUP RESIDENTIAL
LEGAL REVIEW. 1100 -20071
Council Member Heron reported that the resolution in the staff report is to hire outside
legal cotuusel to assist with group home issues and appoint Council ivlembers to a
committee that will interview law firms and make a recommendation to Council as
to which law fu'nr to hire. However, the City Attorney recommended that the outside legal
couisel have sole legal advisory oil this issue, therefore, the resolution would need
amending. lle added that thia expansion in scope will save tbe,City money and free up the
City Attorney's time to work on other issued. lie indicated that lie hopes a Inw firm is
hired at the September 25 meeting.
Mayor Rosansky expressed support so that there will be a quicker and more agreeable
resolution to this issue. He pointed out that this would five up the City Attorney to work
on other matters.
In response to Council concerns, City Attorney Clauson indicated that there is no reason
why they can't continue doing the work and aid in the transition. Mayor Pro Tent Selich
believed that the Planning, Commission should be made aware that Council expects them
Co continue to move forward. City Attorney Clausen added that Council' can give her
direction to continue to serve the Planning Commission until at least their next meeting,
have the hearing on September 20, and have the Commission decide how to proceed.
Mayor Rosansky indicated that there are rome Planning Commissioners that are uneasy
with what Council is proposing since they are currently working with information from it
law firm that Council will soon be terminating.
Council Member Webb indicated that he will be supporting this since the City Attorney's
office is being drowned with the amount of time this issue is taking, He commended their
office for putting together the current ordinance and hoped that the new law firm will not
Vohupo 68 - Page 270
Feb 14 2012 4:08PM
Via Facsimile
Hawkins Law Offices (949) 650 -1181 p.2
'TECEIVED..,,AFIER AGENDA
` / 1141is lED:" ...,a / I �I11
LAW OFFICES OF ROBERT CI K- v'KI1�S E L�
Nancy Gardner, Mayor
Members of the City Council
City of Newport Beach
3300 Newport Blvd.
Newport Beach, California 92663
Re:
(PA2012 -012)
February 14, 2012
Dear Honorable Mayor and Members of the City Council:
2ui"[ FEB 14 PM j 24
OFF IC= OF
Tink OTY CLERK
CITvOF 1, -,'i PORT 6EACH
Thank you for the opportunity to comment to comment on the captioned matter. This firm
represents Friends of Dolores and others in the City in connection with the captioned matter. This matter
was approved over six years ago, many Newport Center project ago and one General Plan ago: times have
surely changed.
The Staff Report advises you that the Project has not changes and that the revised Affordable
Housing Implementation Plan and the Memorandum of Agreement do not constitute substantial changes
in the Project. However, this cursory analysis fails to note that the request to waive the General Plan's
requirement that the applicant enter into a Development Agreement reflects, in part, the need for additional
and supplemental environmental analysis.
Indeed, both the California Environmental Quality Act, Public Resources Code sections 21000 et
seq. and the implementing regulations, the State CEQA Guidelines, 14 CCR § 15000, require that
supplemental or subsequent environmental analysis be conducted when:
"(b) Substantial changes occur with respect to the circumstances under which the project
is being undertaken which will require major revisions in the environmental impact
report. [or]
(c) New infonnation, which was not known and could not have been known at the time the
environmental impact report was certified as complete, becomes available again on the
minutes for the captioned meeting. The minutes for the captioned meeting require several
corrections."
Public Resources Code section 21166. See State CEQA Guidelines section 15162.
110 Newport Center Drive, Suite 200
Newport Beach, California 92660
(949) 650.5550
Fax: (949) 650-1181
Feb 14 2012 4:08PM Hawkins Law Offices (949) 650 -1181 P.3
The Hon. Mayor Gardner
Members of the City Coursed 2 February 14, 7012
Here, as indicated above, much has changed. First, in 2006, the voters approved the new General
Plan which required, among other things, that projects such as the captioned Project in Newport Center enter
into developmenhagreements.
Second, many projects have been approved since the captioned Project was first approved and all
have entered into development agreements: the Newport Beach Country Club Project; the Golf Realty
Project; the Irvine Company's North Newport Center Project; the Hyatt Project; and others. The only
project in Newport Center which has not entered into a development agreement is the City Hall Project
along Avocado Ave.
Third, the environmental analysis for the captioned Project did not consider the cumulative impacts
of these new projects together with the captioned Project on any resources including traffic.
The environmental analysis for the captioned Project is stale and tired. It failed to consider the
cumulative impacts of the Project together with these other projects,-many of which were not even in the
pipeline. Section 21166 requires supplemental analysis for the Project.
Thank you for your anticipated cooperation ih this matter. Please provide me with notices regarding
the captioned Proj ect. We will provide further and additional continents on the captioned matter in a timely
manner.
Of course, should you have any questions, please do not hesitate to contact me.
Sincerely,
OFFICES OF ROBE C. HAWKINS
ARob e7qawlins
RCHAcw
cc: Leilani Brown, City Clerk
110 Newport Center Drive, Suite ZOD
Newport Beach, California 92660
(949)650.5550
Fax: (949) 6504 181
Brown, Leilani "RECEIVED AFTER AGENDA
rmr:t2
From: Joann Bracken Ubracken @live.comj
Sent: Tuesday, February 14, 2012 1:54 PM O 7 u
To: Dept - City Council; Kiff, Dave; Brown, Leilani; Henn, Michael
Subject: Comments for Smoking Ordinance & Increased Fines on Bars /Restaurants
City Council & Manager Kiff:
I am writing you regarding the considered smoking ordinance and an article in today's Daily Pilot about increasing fines on noisy
bars.
While I encourage a smoking ordinance, I would also encourage that you "keep it simply " - meaning that there are NO
EXCEPTIONS or permits. There should be NO SMOKING on the beaches and parks PERIOD. By allowing the drug rehabs or any
other individual or group via a permit will only confuse the general public and visitors. I can already see the argument now -"
Gee, they can smoke, why can I ? ? ?" Not to mention this also creates enforcement issues, not that I see ANY enforcement
taking place now. Isn't it ironic that these people in rehab are trying to get off drugs and alcohol but most of them smoke like
chimneys? If these rehabs truly cared about getting these people off addictions, they certainly wouldn't allow them to smoke!!
I was also happy to see the article that the Council may OK heavy increased fines to curtail complaints about problem bars and
restaurants. This is a start in the right direction. I highly encourage this as last weekend my husband and I nearly hit a drunk
individual that fell in the middle of Newport Blvd. near Malarkeys and the NB Brewery. There are crowds of intoxicated people
running all over the streets against the traffic lights and nearly causing traffic accidents. Where's the police enforcement ? ??
Richard Luehrs should be fired! He doesn't do his job very well and he certianly doesn't do his homework! These bars are NOT
struggling with high food costs; they're packed with intoxicated kids who then cause too many problems for the peninsula, the
other businesses and the police department! The police department can't keep up. Where's the enforcement ? ?? We have a
fine police department- let's use them! The police department should be sending a clear message to both the problem bars and
the intoxicated individuals roaming the streets. More citations and arrests would be a start! We are LOOSING GOOD
BUSINESSES on the peninsula due to all the problems of the too many bars. Not to mention WASTING taxpayer dollars with all
the police calls for service and other related alcohol crime /problems. The Chamber should be SUPPORTING GOOD business. not
businesses that are detrimental to the other businesses and community. Richard should drive down Newport Blvd on a Friday
night between 10 -2AM and then tell me how "good" these bars are for both the city and community.
Thank you for your time and consideration!
Joann Bracken
Peninsula Resident
THE NEW
COMPANY
February 10, 2012
Kimberly Brandt, AICP, Director
City of Newport Beach
Community Development Department
3300 Newport Blvd.
Newport Beach, CA 92663
RECENED
NZ FEB 10 PM 2: 17
OE, ICE OF
Ti iE CWY C.ERK
CITY O= `lj.r PORT BEACH
Cz
W
Q-
Re: Santa Barbara Condominiums: Affordable Housing Implementation Plan and
Memorandum of Agreement (MOA)
Dear Ms. Brandt:
This letter serves as a request from The New Home Company for a continuance to the above
reference agenda item to the February 28th City Council hearing.
Sincerely,
The New Home Company, Southern California LLC
By:� Date: a �U
Name: 1'
Title: t�sro
.75 Funtr.r1)fise, Suite 3251 Abso Viejo, Ca.iifornhi 1 '�2656
ca
Feb 14 2012 4:08PM
Via Facsimile
Hawkins Law Offices [949) 650 -1181 p.2
"RECEIVED AFTER AGENDA
LAW OFFICES OF ROBERT CfEG TC1N3 E v
Nancy Gardner, Mayor
Members of the City Council
City of Newport Beach
3300 Newport Blvd.
Newport Beach, California 92663
Re:
(P-42012-012)
February 14, 2012
Dear Honorable Mayor and Members of the City Council:
:1612 FEB 14 Ph j 24
OF IC OF
THE N I CLERK
CITY OF t -' ,j OR[ BEACH
Thank you for the opportunity to comment to comment on the captioned matter. This firm
represents Friends of Dolores and others in the City in connection with the captioned matter. This matter
was approved over six years ago, many Newport Center project.ago and one General Plan ago: times have
surely changed.
The Staff Report advises you that the Project has not changes and that the revised Affordable
Housing Implementation Plan and the Memorandum of Agreement do not constitute substantial changes
in the Project. However, this cursory analysis fails to note that the request to waive the General Plan's
requirement that the applicant enter into a Development Agreement reflects, in part, the need for additional
and supplemental environmental analysis.
Indeed, both the California Environmental Quality Act, Public Resources Code sections 21000 et
seq. and the implementing regulations, the State CEQA Guidelines, 14 CCR § 15000, require that
supplemental or subsequent environmental analysis be conducted when:
"(b) Substantial changes occur with respect to the circumstances under which the project
is being undertaken which will require major revisions in the environmental impact
report. [or]
(c) New information, which was not known and could not have been known at the time the
environmental impact report was certified as complete, becomes available again on the
minutes for the captioned meeting. The minutes for the captioned meeting require several
corrections."
Public Resources Code section 21166. See State CEQA Guidelines section 15162.
110 Newport Center Drive, Suite 200
Newport Beach, California 92660
(949) 650 -5550
Fax: (949) 650.1181
Feb 14 2012 4:08PM Hawkins Law Offices (949) 650 -1181 F.3
The Hon. Mayor Gardner
Members of tlu City Council - - 2 . February 14, 2012
Here, as indicated above, much has changed. First, in 2006, the voters approved the new General
Plan which required, among other things, that projects such as the captioned Project in Newport Center enter
into development agreements.
Second, many projects have been approved since the captioned Project was first approved and all
have entered into development agreements: the Newport Beach Country Club Project; the Golf Realty
Project; the Irvine Company's North Newport Center Project; the Hyatt Project; and others. The only
project in Newport Center which has not entered into a development agreement is the City Hall Project
along Avocado Ave.
Third, the environmental analysis for the captioned Project did not consider the cumulative impacts
of these new projects together with the captioned Project on any resources including traffic.
The environmental analysis for the captioned Project is stale and tired. It failed to consider the
cumulative impacts of the Project together with these other projects, many of which were not even in the
pipeline. Section 21166 requires supplemental analysis for the Project.
Thank you for your anticipated cooperation in this matter. Please provide me with notices regarding
the captioned Proj ect. We will provide further and additional comments on the captioned matter in a timely
manner.
Of course, should you have any questions, please do not hesitate to contact me.
Sincerely,
_LJMLOFFICES OF ROBE C. HALVKINS
RCIUkw B WRoC. i ns
cc: Leilani Brown, City Clerk
L10 Newport Center Drive, Suite 200
Newport Beads, California 92660
(949) 650 -5550
Fax: (949) 650.1181
NOTICE OF PUBLIC MEETING
NOTICE IS HEREBY GIVEN that on Tuesday, February 14, 2012, at 7:00 p.m., a public meeting will be
conducted in the City Council Chambers (Building A) at 3300 Newport Boulevard, Newport Beach. The Council
of the City of Newport Beach will consider the following application:
Santa Barbara Condominiums - Amendment to an Affordable Housing Implementation Plan (AHIP) to allow
the payment of in -lieu housing fees to satisfy the affordable housing obligations of the previously approved
79 -unit Santa Barbara Condominium Project located at 900 Newport Center Drive. The City Council will also
consider a Memorandum of Agreement (MOA) between the City of Newport Beach and New Home Company
Southern California, LLC, specifying the payment of public benefits fees, phasing of development of the
property, and waiving a requirement that the parties enter into a development agreement.
NOTICE IS HEREBY FURTHER GIVEN that all significant environmental concerns for the proposed project
have been addressed in a previously adopted Mitigated Negative Declaration (SCH No. 2005 - 071067), and
that the City of Newport Beach intends to use said document for the above noted project, and further that there
are no additional mitigation measures that should be considered in conjunction with said project. Copies of the
previously prepared environmental document are available for public review and inspection at the Planning
Division.
All interested parties may appear and present testimony in regard to this application. If you challenge this
project in court, you may be limited to raising only those issues you or someone else raised at the public
meeting (described in this notice) or in written correspondence delivered to the City, at, or prior to, the public
meeting. The agenda, staff report, and documents may be reviewed at the City Clerk's Office (Building B),
3300 Newport Boulevard, Newport Beach, California, 92663 or at the City of Newport Beach website at
www.newportbeachca.gov on the Friday prior to the meeting.
For questions regarding details of the project please contact Jaime Murillo, Associate Planner, at
(949) 644 -3209, jmurillo @newportbeachca.gov.
Project File No.: PA2012 -012
Zone: PC -54 (Santa Barbara Residential)
Location: 900 Newport Center Drive
General Plan: RM (Multiple -Unit Residential)
Applicant: The New Home Company
& S � VU
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Leilani Brown, City Clerk
City of Newport Beach
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442 011 51
FAINBARG CONTROLS If LLC
1600 E COAST HWY
NEWPORT BEACH, 92660
442 262 08
THE IRVINE COMPANY LLC
550 NEWPORT CENTER DR
NEWPORT BEACH, 92660
442 011 69
HHR NEWPORT BEACH LLC
P.O. BOX 579
LOUISVILLE, TN 37777
www.avery.com
1- 800 -GO -AVERY
442 01152
FAINBARG CONTROLS II LLC
1600 E COAST HWY
NEWPORT BEACH, 92660
442 262 09
THE IRVINE COMPANY LLC
550 NEWPORT CENTER DR
NEWPORT BEACH, 92660
442 011 68
HHR NEWPORT BEACH LLC
P.O. BOX 579
LOUISVILLE, TN 37777
wAVERY@ 51600
442 262 03
IRVINE CO LLC
550 NEWPORT CENTER DR
NEWPORT BEACH, 92660
442 262 06
THE IRVINE COMPANY LLC
550 NEWPORT CENTER DR
NEWPORT BEACH, 92660
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CITY CLERK'S OF E
AFFIDAVIT OF POSTMEB -7 PH 4= 0 i
OFFICE OF
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HE CI i ( CLERK
J BECH
On p osted the Noti % P h eanng
regarding:
Santa Barbara Condominiums
PA2012 -012
Date of City Council Public Hearing: February 14, 2012
U
on
14,
RECEIVED lad in the C cC
ad ti the City Ca
Chambers (Buildin
PROOF O F at 3360 Newport 6
dr vard. Newport Bi
FEB 13 AM I i s 4 5 The Council of the
PUBLICAT of Newport Beach
(®( O' 11��� consider the folk
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application:
OF F ICE OF
TWE CITY CLERK
STATE OF CALIFORI�I�A) r`- 1y''RT6EACH
) SS.
COUNTY OF ORANGE )
I am a citizen of the United States and a
resident of the County of Los Angeles; I
am over the age of eighteen years, and
not a party to or interested in the notice
published. I am a principal clerk of the
NEWPORT BEACH /COSTA MESA
DAILY PILOT, which was adjudged a
newspaper of general circulation on
September 29, 1961, case A6214, and
June 11„ 1963, case A24831, for the
City of Costa Mesa, County of Orange,
and the State of California. Attached to
this Affidavit is a true and complete copy
as was printed and published on the
following date(s):
Saturday, February 4, 2011
er a memo.
I Agreement
Seen the City
t Beach and
e Company
California',
ying the pay -
lblic benefits
ng,. of 'devel-
the property,
mg a re:
that the par.
into a devel-
eement. '
HEREBY FUR-
All interested parties
or declare under penalty of may appear and and tt
I certify ( ) p Y testimony, in regard to
Perjury that the foregoing is true and this applichchallenge this pris pr b you
ated in
court„ you may by
correct. limited to raising only
those issues you or
in
or in written cone.
spondence delivered to
Executed on February 9, 2012 the City, at or prior to,
the public meeting, The
at Los Angeles, California agenda, slat! report,
Calltorma, 9Zbbd or at
the City of Newport
Beach Beach wehsite at www..
rewport
beachca.gov on the Fri -
Signature day prior 'to the meet-
Ina
644-3209,