HomeMy WebLinkAbout19 - Santa Barbara CondominiumsI CITY OF
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: (^
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
Califomia, 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:
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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February 14, 2012
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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:
AHIP Background
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.
DISCUSSION:
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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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.
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900 Newport Center Drive (PA2012 -012)
February 14, 2012
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Memorandum of Agreement (MCA)
The proposed MOA (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:
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 MOA is for a period of ten years from the date the applicant assumes fee title
ownership of the property. The MOA 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 -012)
February 14, 2012
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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, P9 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
ME
City Council
Attachment A
City Council Resolution including
proposed AHIP and MOA
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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
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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
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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 19.54].
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.
Finding:
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.
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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:
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AYES, COUNCIL MEMBERS
NOES, COUNCIL MEMBERS
ABSENT COUNCIL MEMBERS
MAYOR
ATTEST:
1yr111019yIIIIIA:IN
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Exhibit 1
Amended Affordable Housing Implementation Plan
15
10
The New Home Company
Santa Barbara Condominiums
Affordable Housing Implementation Plan
City of Newport Beach, CA
January 30, 2012
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TABLE OF CONTENTS
I. Executive Summary
Page
i-
m
New Home Company — Santa Barbara Condominiums
Affordable Housing Implementation Plan
I. Executive Summary
Back round
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 Permit 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 19.54.060 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.
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New Home Company — Santa Barbara Condominiums
Affordable Housing Implementation Plan
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.
II. 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 term is defined in the
Memorandum of Agreement between the City and The New Home Company, for each market
rate unit.
ME
Exhibit 2
Memorandum of Agreement
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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 "Party."
RECITALS
A. WHEREAS, on 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 Implementation Plan and Memorandum of Understanding
for the Santa Barbara Condominium Project at 900 Newport Center Drive (PA2004 -169) with
Lennar 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;
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G. WHEREAS, on September 5, 2007, the California Coastal Commission approved
Coastal Development Permit No. 5 -07 -085 permitting the development of 79 residential
townhome units ( "Project ") consistent with the City of Newport Beach Land Use Plan
Amendment NPB- MAR -1 -06 Part A;
H. WHEREAS, Lennar Homes no longer has an equitable or legal interest in the
Property;
1. WHEREAS, New Home 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 Patties shall amend the prior - approved AHIP, and amend, replace and
supercede the prior MOU to set forth tine process by which New Home shall satisfy its Quimby
Act requirements in accordance with the Subdivision Map Act (Govermnent 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, THERE FORE, 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:
DEFINITIONS.
The following terns when used in this MCA 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
"Bee
1.2 The term "MOA" shall mean this Memorandum of Agreement.
1.3 The term `Building Permit" shall mean either a combination permit or any
electrical, mechanical, fire, plumbing and /or pool permit that is issued by the City to New Home
for any residential building on any portion of the Property.
1.4 The tenn "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 "Construction 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 Part 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 Annex 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 the
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.Beach Administrative Code; the California Fire Code; and
International Fire Code,-as the same maybe modified and amended by official action.
1.7 The term "Demolition Permit' shall mean a pen-nit 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 the 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 term "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 The 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 tern "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 infi-astructure 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 tern "Municipal Code" shall refer to the City of Newport Beach Municipal
Code, as the same now exists or may be further amended from time to time consistent with this
Agreement.
25
1.16 The tern "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 on the Property is depicted on the conceptual
Master Site Plan attached hereto as Exhibit "C ".
1.18 The tern "Residential Permit" shall mean either the Precise Grading Permit,
Foundation Permit or the Building Permit.
2. TERM.
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 Home does not assume title to
the Property. New Harme shall notify the City within fourteen (14) days of the termination of its
contract to acquire the property.
3. PUBLIC BENEFITS.
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 further agree that the requirements of Section 19.54.080 of the City Municipal
Code have been addressed and are satisfied.
MM
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 66477. The Quimby Act fee shall be paid on a pro
rata basis at the rate in effect upon the issuance of each Building Permit for each unit.
3.3 Public Benefits Fee.
The Project shall pay to the City a Public Benefits Fee of $63,291 per unit, for a total of
$5,000,000, which shall be used by the City to fund 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
Agreement. 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 (CI), the City hereby waives the requirement that the Parties
enter into a development agreement.
4. DEVELOPMENT OF THE PROPERTY.
4.1 Seoarate 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, "Other Permits "), (c) Precise
Grading Permit, (d) the Foundation Permit, and (e) the Building Permit (collectively,
"Residential Permit "). The City, upon application from 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 Phases/Buildings. 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
Plan 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 a 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 permits for the installation and use of a
mobile trailer as a temporary sales trailer for the Project on the Phase II area of the Property.
5. ASSIGNMENT.
New Hahne 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-
27
66499.58). 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 Home 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
run 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 the Parties hereto.
6.2 Severability. If any term, provision, covenant, or condition of this MOA is held
by a court of competent 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 the rights
and obligations of any Party has been materially altered or abridged by such holding.
6.3 Counterparts. 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 terns 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 -58 is of no
force and effect and has been replaced and superseded in its entirety by this MOA.
DEFAULT, 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 ( "Nondefaulting 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 Party ") 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 maybe 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 conunences 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 threatened 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 Reined y. 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 cotuiection 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 Majeure. 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,
29
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 after 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 in 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.
8. 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 indicated on the receipt if given by certified or
registered mail, return receipt requested, or (c) on the succeeding business day after mailing or
deposit if given by Express Mail or by deposit with a private delivery service of general 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 forth in this
section.
For the purposes of this MOA, 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 Beach
Attn: David Kiff, City Manager (with copy to City Attorney's Office)
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 the date
first written above.
[SIGNATURES ON THE FOLLOWING PAGE]
30
ATTEST:
Un
Leilani Brown
City Clerk
APPROVED AS TO FORM:
B ; : P/ . .
ron Harp 2
City Attorney
CITY OF NEWPORT BEACH,
A Municipal Corporation
C
Nancy Gardner
Mayor
THE NEW HOME COMPANY SOUTHERN
CALIFORNIA LLC, a Delaware Limited
Liability Company
Tom Redwitz
President
31
S2
EXHIBIT "A"
LEGAL DESCRIPTION OR THE PROPERTY
10 33
S4
Exhibit "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 361 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 THEREFOR 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, RETUNNEL,
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- 003805, 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, REDRILL, REMOVE AND STORE
THE SAME FROM THE LAND OR 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.
11 315
so
EXHIBIT "B"
AFFORDABLE HOUSING IMPLEMENTATION PLAN
12
37
S2
The New Home Company
Santa Barbara Condominiums
Affordable Housing Implementation Plan
(City of Newport Beach, CA
January 3 09 2012
39
TABLE OF CONTENTS
L Executive Summary ..............................
Background............ ...............................
Summary ................ ...............................
II. Affordable Housing Implementation....
Payment of In -Lieu Pees .......................
Page
................. 1
................. I
................. I
................. 2
................. 2
IN
New Home Company — Santa Barbara Condominiums
Affordable Housing Implementation Plan
Page 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 Permit 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 mininnon of '20% of the total units (16 trails) for affordable
income households in accordance with Plousing Programs 2.2.1 and 2.2.3 of the Newport
Bench Housing Clement. The applicant shall enter into an agreenuenl with the 00) to
provide said units, which units mad+ be provided off -rile, at an approved location within
the City,. These units shall be idenli ied in the agreement and constructed and completed
prior to the issuance of any cerlificale of oecupaiacy for the project. The agreement shall
be reviewed and approved by the City Attorney and shall be executed and retarded prior
to the recordation of the final bract map or the issuance of a building or grading permil
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 prepare all Affordable Housing hill) lementation
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 (51) dwelling units or more with
approval of an AHLP.
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.
41
New Home Company — Santa Barbara Condominiums
Affordable Housing Implementation Plan
In reviewing the provisions of the 2007 AHIP and as a result of further discussions on
bow the City would like to implement its inclusionary housing ordinance, the City and The New
Home Company have agreed that the 2007 AMP should be amended. The New Home Company
has proposed this new 2012 Affordable Housing Implementation Plan (`42012 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 oil 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.
II. Affordable Housing Implementation
Pavment 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 term is defined in the
Memorandum of Agreement between the City and The New Home Company, for each market
rate unit.
42
EXHIBIT "C"
MASTER SITE PLAN
13
4s
Ca'
N
m
N
m
3
h
y
m
9
I
_
N
m
N
m
9
5
z
EPT Q ant aRarbara
Condominium8
Newport Beach„
:'lw
City Council
Attachment B
Project Vicinity Map
4j
42
VICINITY MAP
Santa Barbara Condominiums
PA2012 -012
900 Newport Center Drive
49
50
City Council
Attachment C
City Council Resolution No. 2007 -058
including previous AHIP and MOU
51
52
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 -769)
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. 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; 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 fmm Lennar referenced in Section
2.A of the Memorandum of Understanding and use of these funds shall be as detefrnined
by the City Council.
NOW, 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.
1
53
51ECT1ON Z,
The Memorandum of Understanding between Lennar Homes of California, Inc and City of
Newport Beach, attached as Exhibit 2, is approved.
Resolution 2007 -55 is hereby rescinded.
Passed and adopted at a regular meeting of the City Council of the City; of Newport Beach
held on August 14, 2007, 1
ATTEST:
ROOM� �.
54
Exhibit i
Lennar Homes
� Cox do7mia, ijj-m,.i
Affordable Housing
Implementation Plan
City of Newport Leach, CA
July 24, 2007
1515
Lennar Homes - Santa Barbara Condominiums
Affordable Housing Implementation Plan Page 2
Table of Contents
I. Executive summcrr y
City Pro 3
Summary 3
If- Affordable Housing Project Description 4
Unit Descriptioms 4
Renovations
Buildings /Common Areas
Units
Maintenance
Project Location Map 7
Site Photos 8
ifdx. Consistency with Housing Element
IV Income and Rent Limits
o
10
Apapendix.A — City ofNeauport Beach Resolution ofApprovul 11
50
Lennar Moines — Santa Barbara Condominiums
Affordable Housing implementation Plan Page 3
I.. Executive Surnrmary
In January 2oo6 the City of Newport Beach approved a General Plana Amendment,
Coastal Land Use Plan Amendment and Planned Community'.l.'ext for a project being
proposed by Lennar Homes. The project consists of -79 market rate single- :family
condominiums in Newport Center, adjacent to the Newport Beach Marriott on the
former tennis court site. Condition g of the City Council Resolution approving.the
project establishes the affordable housing: requirement for the project, as follows:
7 to applicant shall provide a rninimum of 2095 of the total un its (t6 units) for
affordable income households in accordance with Housing Programs 2.2.x and
2.2.,E 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 ronstructed and completed prior to the issuance of any
certificate vf'occupancy far the project. Vie agreement shall be reviewedand
approved by the City Attorney and shall be executed and recorded prior to the
recordation of the final b-oct map or the issuance of a building or grading
permitfor the proposed subdivision.
Mad=91MIdd
The City of Newport Beach's Housing Element as approved by the City Council in July,
2oo6, after approval of the Lennar project, includes an amended Housing Program
2.2a, which sets the goal that 15% of all new housing units in the city he affordable to
very low -, low- and moderate - income households. Projects with more than ga units are
required to prepare an Affordable housing Implementation Plan_ (,AMP) that specifies
how the development will meet the City's affordable housing goal.
Cfty Process
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.
Sm_rna
r�
After extensive research on options for meeting the affordable housing requirements,
meeting with the Affordabie Housing't'ask Force, and in consideration of the newly
adopted Housing. Element requirement for 15% of all new units to be affordable, Lenuar
agrees to meet the requirements of the City Council condition of approval and the July
2oo6 housing Element as described below.
57
Lennar Homes — Santa Barbara Condominiums
Affordable Housing Implementation plan Page
I1. Affordable flousiing Project Description
Ube Newport Courtyard. Apartments at 1128 —1.142 Rutland Road, Newport Beach is an
existing, market rate, i2 -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 DesodidiocA
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
iaundry room. The units are generously sized at approximately i,roa square feet. The
apartments all contain two bedrooms and two bathrooms and a dining area. Each unit
has one assigned carport. While the units were buitt in ig61, the owner is currently
undertaking a significant renovation effort to upgrade the complex.
Ro gyygdons
G'omprehensive renovations to the property to make the complex comparable with 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 will include the following:
Buildings /Common Areas
• Recovering of the existing stucco on the building fagade with Hardipiank 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
rear patio/porch areas
• Replacement of fences enclosing patio areas for each unit adjacent to the
common courtyard with lower 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 doors
• Installation of new motion detecting light fixtures in the garage area
• Replacement of concrete in the central common area with pavers throughout the
courtyard
• New landscaping throughout the property
152
Lennar Homes — Santa Barbara Condominiums
Affordable Housing Implementation Plan rage ,y
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
w Maintenance of appliances less than three years old in eight units
Bathrooms
e Replacement of all toilets with new, low -flow toilets
® Replacement of all shower heads with now, low -flow shower heads
Windows and Boors
• Installation of new vinyl windows and sliding glass doors
• Insallation of new Dutch style front doors in all 12 units
Waits and Floors
• Repainting of all units' interiors
• Installation of new carpet in each unit
xaiaLemaxit
The property will be maintained and preserved in good condition, in good repair, and in
a decent, safe, sanitary, habitable and 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
• 1•leabug facilities in good working order
• 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, rubbish,
garbage., rodents, and vermin
• Adequate trash receptacles in good repair
• 'floors, stairways, and railings in good repair
• Safe Mire 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 looks 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
59
Lennar Homes — Santa Barbara Condominiums
Affordable Housing Implementation flan. Page 6
o Ground fault circuit interrupters for swimming pools and antisnedon
protections
M&
Lennar Homes — Santa B xbara Condominiums
Affordable Housing Implementation Plan Page 7
ftgjeLU Location.Map
01
Lennar Homes — Santa Barbara Condominiums
Affordable Housing Implementation Plan Page 8
02
Lennar Homes —Santa Barbara Condominiums
Affordable Housing Implementation Plan Page 9
111. Consisten[.y w itlt Housing Eiernent
The City of Newport Beach completed a comprehensive General Plan update in 2oo6.
The Housing Element was included in the update to ensure consistency with the
updated Land Use Element.
The Housing Element details a number of goals for the City, which include the
following: promoting quality 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 promoting quality residential development, preserving and increasing housing
affordability and contributing to a balanced residential community through rental
housing. By converting 12 existing, market rate rental units exclusively for Moderate
Income Households for 3o years, the project ineresses 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 ElemEent. Listed below is a matrix of where the Housing Element
and project are consistent
Goal
1Pay'ect Consistent
H 1
Project renovates and preserves an existing
Quality residential development and
apartment community in Newport Beach
preservation., conserVation, and
and adds ,deed restrictions to all 12 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
O3
Lennar Homes — Santa Barbara Condominiums
Affordable Housing Implementation Plan. Page 10
IV. Income and Rent Limits
The Newport Courtyard Apartments at 1128 — 1x42 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 12o% 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..
04
Lennar Homes - Santa Barbara Condominiums
Affordable Housing Implementation Plan Pam
Apipenelix A
City of Newport Beach Resolution of Approval
[TQ BE INSERTED)
05
00
Exhibit 2
MEEMORANDIi M OF UNDERSTANDING BETWEEN LENNAR
BIOMES OF CALIFORNIA, INC. AND CITY OF NEWPORT BEACH
This Memorandum of Understanding ( "MOU ") is entered into by and between Lamar
Homes of Califnrnia, Inrr, C- Unnar') and the City of Newport Beach (City), a municipal
corporation, through its duly elected, appointed, qualified or acting representatives.
RECITALS
A. WHEREAS, on January 1.0, .2006 the Newport Beach City
Council approved Resolution NO. 2006 -2 adapting Mitigated Negative Declaration (SCII
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. 200.5 -014,
Tentative Tract Map No. 2004-044 (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) changing the subject property from CV -B to RM-C for properly located at
900 Newport Center Dri ve (PA 2004 -169); and
B. WHEREAS; on July 25; 2006 the City Coturcil approved a
comprehensive update of the City's General Plan, including changes in Affordablle
Housing Requirements under an updated Housing Element; and
C. WHEREAS, on March 27, 2007,—the City Council adopted
Ordinance 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
D, WHEREAS, on July 10, 2007 the California Coastal
Commission approved City of Newport Beach Land nd Use Plan Amendment NPB•MAJ -1 -06
Part . A (Marriott !Intel VSC to MDIUSanta Barbara Condominiums) subject to
modifications; and
E WHEREAS, mar has requested approval of an Affordable
Housing Implementation Plan (AHIP) which documents Lennar's commitment to the
provision of 12 apartment units in the Moderate Income level for a period of 30 years and
which will satislfv_ the intent of Condition No. 5 of Resolution No. 2006 -2 for affordable
housing; but will comply with the amended rcquiurements for number of units of affordable
housing under the updated Housing Element,
F. WHEREAS, concurrent with and as consideration for the
approval of the AHIP under the provisions of the updated Housing Element; the two parties
07
Afemorandnm of Under standing
Between Lennur Homes ofCalt16rnla, Inc.
And City of Nenport Beach
Page -2 -
wish to enter into a development agreement to vest the right to develop the project without
additional public benefit contributions other than payment to the City of Newport Beach
the amount of $5 million for the City to use for projects that provide a public benefit to the
City as detenninerl by the City Council.
NOW6 THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
Section 1. The City shall give prompt consideration to the necessary support language for
Coastal Commission approval of the Coastal Development Permit, amid to the Affordable
Housing Implementation Plan (AHIP) 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 agreement must be approved and. executed
before the issuance of any grading or building permit for the project.
A. As a condition of the development agreement, l ennar shall pay $5 million to the
City of Newport Beach. This amount shall 'be paid in two installments, $2 million to 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 the 79ua unit is not issued within in 12 months
of the first certificate of occupancy then the $3 million shad] be due on a p a rata per unit
basis for those units for which a certificate of occupancy has been issued and payable on a
pro rats basis for the ensuing units as each certificate of occupancy is issued. Upon
payment of this amount, no other payment shall be requirW for public benefit to the City of
Newport Beach.
S_ ire City will expeditiously review the Affordable Housing Agreement to
implement the AHIP, and will provide expedited review of development plans for the
project, in support of timely receipt of building permits and final occupancy permits.
C. City development approvals will be vested for a period not to exceed five (.S)
years.
Section 3. The terms of this MOU shall become effective upon execution by both parties and
shall continue thereafter until the satisfactory completion of the obligations of the parties as
described hercin. The MO.0 may be altered, changed, or amended by mutual consent of the
parties. Any changes or amendments must be in writing and signed by the parties before such
change or amendment shall take effect.
Section 4. 'The IMOU is executed in counterparts, each of which shall be considered a
duplicate original.
02
Memorandum of Understanding
Between Lennar Names of California, Inc.
And City of Newport Beach 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 indicated on the receipt if
given by certified or registered avail, return receipt requested, or (c) on the succeeding business
day after mailing or deposit if given by Express Mail or by deposit with a private delivery
service of general use (e.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 notice 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 repaesentatives:
City of Newport Bcach
Homer Blludau, City Manager
3300 Newport Blvd.
Newport Beach, CA 92658 -8915
Lennar Homes of California, Inc.
Mr. John Baayoun
Regional Vice President
25 Enterprise
Aliso Viejo, CA 92656
Section 7. This MOU shall be binding upnn and shall inure to the benefit of the successors and
assigns of the patties.
Section 8 This MOU shall lie governed by, and construed and enforced in accordance with,
the laws of the State of California.
APPROVED AS TO FORM: CITY OF NEWPORT BEACH,
A Municipal Corporation
By:
Robin Claitson
City Attorney
ATTEST:
By:
lAaVonne Harkless
City Clerk
By:
Steven Rosansky
Mayor
Lennar Homes of California, Inc.
By:
Johtr Baayoun
Regional Vice President
09
STA'rE OF CALIFORNIA l
COUNTY OF ORANGE
CITY OF NEWPORT BEACH }
I, Le -Ilani 1. 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 ;aid City at a regular meeting of said Council, duly and regularly held on the
14th day of August 2007, and that the same was ao passed and adopted by the.following vote, to wit:
Ayes: Kenn, Curry, Seliich, Daigle, Gardner, Mayor Rosansky
Naee: None
Absent: Webb
Abstain: None
IN WITNESS WHEREOF, I have hereunto eubseribed my name and affixed the
official seal of said City this 15th day of August 2007.
& L4�� y ��
Deputy City Clerk —
t t;
Newport Beach, California
(Seal) 4a +spn��^
70
City Council
Attachment D
September 11, 2007 City Council Minutes
71-
72
City of Newport Beach
City Council Minutes
September 11, 2007
Planning Director Lepo reported on the following items: Code Amendment 2007 -006
(Group Occupancies and Short -term Lodgings) during the August 23 meeting; and Liberty
Baptist Church School Expansion (PA2006 -079) - I000 Bison Avenue, and Parini Cafe
(PA2007 -063) - 2421 E. Coast Highway during the September 6 meeting.
XVIII. CONTINUED BUSINESS
21. USE OF FUNDS FROM LENNAR HOMES OF CALIFORNIA, INC. IN
CONNECTION WITH DEVELOPMENT AGREEMENT FOR SANTA BARBARA
CONDOMINIUMS (contd. from 8114107) (C- 3979). /38/100 -20091
Mayor Pro Tem Selich reported that, since this item was first brought before Council, the
City has entered into negotiations for a development agreement with The Irvine Company
which involves a substantial amount of park fees being generated in Newport Center. He
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 Selich to table and remove the item from the calendar.
The motion carried by the following roll call vote:
Ayes: Council Member Henn, Council Member Curry, Mayor Pro Tem Selich, Mayor
Rosansky, Council Member Webb, Council Member Daigle, Council Member Gardner
\\ XIX, CURRENT BUSINESS
522. RESOLUTION CREATING AN AD HOC COMMITTEE ON GROUP RESIDENTIAL
LEGAL REVIEW. /100 -2007]
Council Member Henn reported that the resolution in the staff report is to hire outside
legal counsel to assist with group home issues and appoint Council Members to a
committee that will interview law firms and make a recommendation to Council as
to which law firm to hire. However, the City Attorney recommended that the outside legal
counsel have sole legal advisory on this issue, therefore, the resolution would need
emending. He added that this expansion in scope will save the City money and free up the
City Attorney's time to work on other issues. He indicated that he hopes a law firm is
hired at the"'September 26 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 free up the City Attorney to work
on other matters.
In response to Council concerns, City Attorney Clausen indicated that there is no reason
why they can't continue doing the work and aid in the transition. Mayor Pro Tem Selich
believed that the Planning Commission should be made aware that Council expects them
to continue to move forward. City Attorney Clauson 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 tine. Commission decide how to proceed.
Mayor Rosansky indicated that there are some Planning Commissioners that are uneasy
with what Council is proposing since they are currently working with information from a
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
Volume 68 - Page 270 >
Feb 14 2012 4:08PM
Via Facsimile
Hawkins Law Offices (949) 650 -1181 p.2
"RECEIVED AFTER AGENDA
D-
INTED:°
LAW OFFICES OF ROBERT C% 'vZC
Nancy Gardner, Mayor
Members of the City Council
City of Newport Beach
3300 Newport Blvd.
Newport Beach, California 92663
Re:
February 14, 2012
i'i2 FEB 14 PM 3: 24
C- IC
OF
THE C ' CLERK
Cl C 'ORT BEACH
Dear Honorable Mayor and Members of the City Council:
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 Ciry 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,
OFFICES OF ROBE C. HANVKINS
B .. Ro crt C. Hawkins
RCH,'kw
cc: Leilani Brown, City Clerk
110 Newport Center Drive, Suite 200
Newport Beach, California 92660
(949) 650 -5550
Fax: (949) 65061181
Brown, Leilani "RECEIVED AFTER AGENDA
From: Joann Bracken Qbracken @live.com]
Sent: Tuesday, February 14, 2012 1:54 PM 7 / Tf
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
HOME
COMPANY
February 10, 2012
Kimberly Brandt, AICP, Director
City of Newport Beach
Community Development Department
3300 Newport Blvd.
Newport Beach, CA 92663
RECEIVED
&Z FEB 10 PM 2: 17
O "ICE OF
THE CM( CLERK
CITY C- ' . CCT BEPI,;H
n
u
d
�u
tz Ptz
W
U =
W p
L_ W
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
M
Name:
Title:
Date:
�N�r�o�sRedwll�
earoiwnr�nrua
� I I
reb 14 2012 4:08PM
Via Facsimile
Hawkins Law Offices (949) 650 -1181 p.2
'THENED AFTER AGENDA
LAW OFFICES OF ROBERT CRRCV1& S C V
Nancy Gardner, Mayor
Members of the City Council
City of Newport Beach
3300 Newport Blvd.
Newport Beach, California 92663
Re:
February 14, 2012
'[iii"[ FEB 14 PM 3: 24
OFFICE OF
THE C Y CLERK
Clio 0;=1 „r ?OR I REACH
Dear Honorable Mayor and Members of the City Council:
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 P.3
The Hon, Mayor Gardner
Members of the Cny Council . 2 .
February 14, 2012
Here, as indicated above, much has changed. First, in 2006, the voters approved the new General
Plan which required, amongother 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 Project. 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,
OFFICES OF ROBE C. HAWKINS
RCH,'kw
JBRoe rt C. Hawkins
cc: Leilani Brown, City Clerk
110 Newport Center Drive, Suite 200
Newport Beach, California 92660
(949) 650 -5550
Fax: (949) 6504181
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.aov 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
Leilani Brown, City Clerk
City of Newport Beach
� A
F; lUsers\ CDD \Shared\Admin \Planning_Divison\ City - Council \public_notice_council_master template 11 2311
Jam and Smudge Free Printing
Use Avery® TEMPLATE 51600
442 011 51
FAINBARG CONTROLS II 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
442 011 52
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
442 26203
IRVINE CO LLC
550 NEWPORT CENTER DR
NEWPORT BEACH, 92660
442 26206
THE IRVINE COMPANY LLC
550 NEWPORT CENTER DR
NEWPORT BEACH, 92660
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CITY CLERK'S OFFI!bt� %EL
AFFIDAVIT OF POSTIMIGEB -7 R1 q, 0 i
CT CE Of
T F_ CITY CLEW
CC� AIPPA la'Un
On � � , 2012, I posted the Notia�t'putilic earmg regarding:
Santa Barbara Condominiums
PA2012 -012
Date of City Council Public Hearing: February 14, 2012
RECEIVED
PROOF OF
PUBLICATI(jA I'll I I AM Ii. 45
CFFF CE OE
TF= CIP CLERK
STATE OF CALIFORP&' _.,RT BXH
) 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
I certify (or declare) under penalty of
perjury that the foregoing is true and
correct.
Executed on February 9, 2012
at Los Angeles, California
Signature
NOTICE M PUBIC BIEENNO
NOTICE IS HEREBY GIV-
EN that on Tuesday,
February, 14, 2012, at
ad in the City Counci
Chambers (Building A;
at 3300 Newport Boule
vard, Newport Beach.
The Council of the Cit)
of Newport Beach wil .
consider the followinE
application:
Santa Barbara Condo-
minlums - Amendment
to an Affordable Hous.
ing Implementation Plan
(AHIP) to allow the pay.
ment of in -lieu housing
fees to satisfy the af-
fordable housing obliga.
tions of the previously
approved 79 -unit Santa
Barbara Condominium
Project located at 900
Newport Center Drive.
The City Council will
also consider a Memo-
Newport Beach and
v Home Company
of
quirement that the par-
ties enter into a devel-
opment agreement.
NOTICE IS HEREBY FUR-
THER GIVEN that all
significant environmen.
tal concerns for the pro.
Posed project have been
addressed In a pre.
viously adopted Mitigat-
ed 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 consid-
ered in conjunction with
said project. Copies of
ument are available for
public review and in-
spection at the Planning
Division.
All Interested parties
may appear and present
testimony in regard to
this application.. it you
challenge this project in
court, You may be
limited to raising only
those issues you or
someone else you at
the public meeting (de-
scribed in this notice)
or In written corre-
spondence delivered to
the City, at, or prior to,
the public meeting. The
California, 92663 or at
the City of Newport
Beach website at www.
newport
beachca.gov on the Fri.
day prior to the meet-
ing.
For questions regarding
details of the project
please contact Jaime
Murillo, Associate Plan.
ner, at
(949) 6443209, jmuril-
W OU66
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