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HomeMy WebLinkAbout04 - Annual Review of DA for Uptown Newport - PA2014-039 �e�E`wPoRT o e COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION U 100 Civic Center Drive, P.O. Box 1768, Newport Beach, CA 92658-8915 d (949) 644-3200 Fax: (949) 644-3229 �<<FORNx' www.newportbeachca.gov CITY OF NEWPORT BEACH ZONING ADMINISTRATOR STAFF REPORT May 12, 2016 Agenda Item No. 4 SUBJECT: Annual Review of Uptown Newport Development Agreement (PA2014-039) 4311-4321 Jamboree Road APPLICANT: Uptown Newport, LP (TSG-Parcel 1, LLC) PLANNER: Rosalinh Ung, Associate Planner (949) 644-3208, rung(o-)newportbeachca.gov ZONING DISTRICT/GENERAL PLAN • Zone: PC 58 (Uptown Newport) • General Plan: MU-H2 (Mixed-Use Horizontal 2) PROJECT SUMMARY An annual review of Development Agreement No. DA2012-003 (DA) for Uptown Newport Planned Community, pursuant to Section 15.45.080 of the Newport Beach Municipal Code and Section 65865.1 of the California Government Code. RECOMMENDATION 1) Conduct a public hearing; and 2) Find the annual review is exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15321 , Class 21 (Enforcement Actions by Regulatory Agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; 3) Receive and file the Annual Report of Development Agreement for Uptown Newport Planned Community (Attachment No. ZA 2); and 4) Find that the applicant has demonstrated good faith compliance with the terms of Development Agreement No. DA2012-003. 1 Annual Review of Development Agreement No. DA2012-003 Zoning Administrator May 12, 2016 Page 2 DISCUSSION Section 15.45.080 of the Municipal Code requires the City to periodically review development agreements to determine if the applicant has complied with the terms of the agreement. This review should be conducted at least once every 12 months. The applicant is required to demonstrate good faith compliance with the terms of the agreement, and should the Zoning Administrator find that the applicant has not complied in good faith with the terms of the agreement; the Zoning Administrator should refer the matter to City Council. Background On March 12, 2013, City Council adopted Ordinance No. 2013-6, approving the DA for the development of a 25-acre, mixed-use residential project consisting of 1,244 residential units, two one-acre public parks, and 11,500 square feet of retail uses. The DA became effective on April 22, 2013. The term of the DA is 15 years, and has two, 5-year extension options. The earliest expiration could be in 2028. On April 28, 2015, the City Council approved the First Amendment to the DA that delayed the timing of payment of public benefit fees and park in-lieu fees. The DA and its First Amendment are available online at: htti)://www.newportbeachca.gov/develoi)mentagreements. At the last annual review on April 30, 2015, the Zoning Administrator determined that Uptown Newport LP was in good faith compliance with the DA. Annual Review The Uptown Newport Phase 1 development is underway, which included demolition of the existing single-story office building at 4311 Jamboree Road (the "Half Dome Building"), and development of up to 680 residential units, 11,500 square feet of retail, one 1-acre park, and associated infrastructure including roads, sidewalks, utilities, and landscaping. Uptown Newport, LP assigned the DA to TSG-Parcel 1, LLC consistent with the assignment provisions of the DA. On July 27, 2015, a Site Development Review application for the construction of 455 residential apartment units including 91 affordable units, 10,700 square feet of retail use, and a 50-foot wide paseo was submitted for City review. On January 14, 2016, the Community Development Director approved the application in accordance with the Uptown Newport Planned Community Development Plan. Building permits for this first construction phase are currently under review and will be ready for issuance in the TmpIt:10-15-13 Annual Review of Development Agreement No. DA2012-003 Zoning Administrator May 12, 2016 Page 3 coming months. Construction of the two buildings along Jamboree Road will start as soon as the financing is in place in July 2016. The applicant has prepared a report with a complete list of accomplishments within the past year (Attachment ZA 2). No public benefit fees are due at this time since building permits for new residential development have not been issued. After reviewing the attached annual report and applicable documents, staff believes that the applicant is in good faith compliance with the terms and conditions of the DA and First Amendment. ENVIRONMENTAL REVIEW This annual review is exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15321, Class 21 (Enforcement Actions by Regulatory Agencies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. This section exempts actions by regulatory agencies to enforce or revoke a lease, permit, license, certificate, or other entitlement for use issued, adopted, or prescribed by the regulatory agency or enforcement of a law, general rule, standard, or objective, administered or adopted by the regulatory agency. PUBLIC NOTICE Notice of this review was published in the Daily Pilot, mailed to all owners of property within 300 feet of the boundaries of the site (excluding intervening rights-of-way and waterways) including the applicant and posted on the subject property at least 10 days before the scheduled hearing, consistent with the provisions of the Municipal Code. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. APPEAL PERIOD: An appeal or call for review may be filed with the Director of Community Development within 14 days following the date of action. For additional information on filing an appeal, contact the Planning Division at (949) 644-3200. TmpIt:10-15-13 Annual Review of Development Agreement No. DA2012-003 Zoning Administrator May 12, 2016 Page 4 Prepared by: o alinh Ung As ociate Planner JC/W Attachments: ZA 1 Vicinity Map ZA 2 Uptown Newport Development Agreement Annual Report TmpIt:10-15-13 f Attachment No. ZA 1 Vicinity Map 5 VICINITY MAP P,. L a• ®arc iw,� ��i//�.,/�•� �, ,� �.��� ...r,« y .. y y • ,� 3 Subject Property Annual Review Uptown Newport Development Agreement (PA2014-039) 4311 -4321 Jamboree Road Attachment No. ZA 2 Uptown Newport Development Agreement Annual Report SHOPOFF REALTY INVESTMENTS rranstorming Opportunity into Value March 21, 2016 City of Newport Beach Ms. Rosalinh Ung 100 Civic Center Drive Newport Beach, California 92660 RE., 2015 Annual Report for Uptown Newport Development Agreement No. DA2012-003 Dear Ms. Ung, This Annual Report for the Uptown Newport Development Agreement DA2012-003 (the "Agreement") is being provided to the City pursuant to Section 7 of the Agreement, and is intended to satisfy the annual reporting requirement for Development Agreements under section 65865.1 of the Government Code. Uptown Newport is a mixed use development consisting of: 1,244 residential units, 11,500 square feet of retail uses, and two 1-acre public parks on approximately 25.05 acres of real property located at 4311- 4321 Jamboree Road, Newport Beach, California. On March 23, 2013 (the "Agreement Date"),the City Council adopted Ordinance No. 2013-6 (the "Adopting Ordinance"), finding the Agreement to be consistent with the City of Newport Beach General Plan, and approving the Agreement. Because the Agreement was approved by Ordinance as required under Government Code section 65867.5, and no appeals or lawsuits challenging the validity of the Adopting Ordinance were filed, the Agreement became effective thirty days after the Agreement Date, or April 22, 2013. The Uptown Newport project is proceeding with development of Phase 1 of the Uptown Newport Planned Community, with site development in process. The current plan for Phase 1 is to develop approximately 455 apartment units in two buildings on the parcels that front Jamboree Road and for-sale townhomes or condominiums on the parcels that surround the Phase 1 Park. The number of for-sale units has not yet been determined. The apartment buildings will include approximately 92 affordable apartment units that will be incorporated into the same buildings and the market rate apartments. An updated tentative schedule of development activities planned for Phase 1 development is provided below for your reference. The anticipated dates of construction activities in 2015 were delayed some months due to some plan design changes after plan approvals as well as some delays by other agencies outside the City of Newport Beach purview. As 2 Park Plaza, Suite 00 Irvine, California949-417-1396 94999 shopoff.com SHOPOFF REALTY INVESTMENTS iranstorming Opportunity into Value a result, construction activities were moving in a slower manner than anticipated. Please note that this is a tentative schedule and subject to change: • Complete Storm Drain construction:April, 2016 • Commence wet underground utilities(sewer and water):April-June, 2016 • Complete grading of the apartment site: July, 2016 • Commence Street improvements:July-September, 2016 • Commence construction of apartments: August,2016 • Dry Utility installation:September,2016 Uptown Newport, LP has been assigned to TSG-Parcel 1, LLC and has complied in good faith with the terms and conditions of the Agreement. A summary of the activities performed by the Landowner, its agents and affiliates during the past year are provided below for the City's review: 1. On April 28, 2015,the City Council approved the First Amendment to the Agreement that allowed for the deferral of payments of Public Benefit Fees and park fees (subject to interest). 2. Tract Map No. 17763 was recorded in the Office of the County Recorder on June 19,2015 3. Design of the 66KV undergrounding on Jamboree Road fronting the Uptown Newport project was initiated between the City of Newport Beach and Southern California Edison in September, 2015. 4. Apartment site plans and architecture were submitted to the City for first review in July, 2015 5. Noise attenuation measures were initiated at the Tower Jazz site, including the installation of scrubber exhaust fans, new duct work on the roof, new cooling towers, and a sound wall. Updated noise studies are under way to assess if the new improvements are in compliance with the Mitigation Monitoring document and the Conditions of Approval. 6. All of phase I infrastructure improvement plans were approved through the course of the 2015 calendar year. 7. Jamboree Road landscape plans were approved by the City of Newport Beach. 8. Phase I park site and northerly apartment site grading was completed. 9. Sewer and Storm drain connections through Tower Jazz site were completed. 2 Park Plaza, Suite 00 Irvine, California9261949-417-1396 1'999 shopoff.corn SHOPOFF REALTY INVESTMENTS /ranstorming Opportunity into Value 10. Construction of the retaining wall on the south and east side of Tower Jazz was completed. The screen wall/view fencing atop the retaining wall and perimeter wall construction will commence construction in May, 2016. It should be noted that no activities on the project site during the 2015 calendar year triggered the payment of park fees or Public Benefit Fees under the Agreement. We look forward to continuing our development efforts for Uptown Newport, and appreciate the City's cooperation in our efforts. Please contact me at (949) 417-1867 or at isantry@shopoff.com. Should you have any questions or require additional information. Sincerely, 4 A011 hn Santry Executive Vice President—Acquisitions Cc: Gregory Powers,Jackson Tidus 2 Park Plaza, Suite 11 Irvine, California949-417-1396 9'999 shopoff.com